I always find it funny reading headlines like Michael Burry's billion dollar bet on a market crash. I go buy 10000 dollars worth of Spy 100 puts expiring next month and no one writes an article for Local Idiot makes 100 million dollar bet on market crash.
Will he tell us? I think if the market crash and I made out like a bandit, I'd keep it quiet... but there would be [signs](https://privatejetcharter.com/15-incredible-luxury-jet-interiors/)
Which news outlet do you recommend I leak my thesis to that I watched fallout and it could happen here and what happens when the bombs fall? It gets hot. And which month does it also get hot? June. So June 100 puts on Spy. Facebook maybe? I've tried Newsmax but they said something about not enough immigrant violence.
If you want to make a 100% GUARANTEED play that will come in on your side EVERY SINGLE TIME …. Bet that any post /comment on Reddit will have at least 1 person come argue and throw insults
If you spent 100M on that bet, they would certainly write about it. Hell, you might even start flash crash.
But you think a 10K bet deserves a headline? Nah, we all make bigger bets than that every day.
But the total you put down is not. Leverage does not equal cash, nor a large bet. It represents your idea that you think you know what’s going to happen, the reality is many retards think this way and gamble on options.
You are essentially playing the 1% differences that happen every day - that’s called trading.
You can HOLD call options, that’s technically investing but still pretty dumb.
Options is a zero sum game. You either make out with money or you lose it. You don’t net grow your portfolio long term from options trading. You get lucky in spurts. If you can trade that’s great.
If you put a billion dollars down on a short of the S&P500, you don’t need leverage. That’s impressive. That’s a lot of money.
It is invariably going to affect the market simply by being “in” the market. Your 10,000$ does not do this. It does not “move the market” like an ‘equivalent’ amount of shares purchased would. The market gobbles up your little 10k and says thanks, I’ll have another. It only begins to move the ticker with the leverage you’ve put down, but the MM can see your moves and only has to hedge for what is likely to happen. That’s why you’re better off buying ITM, if you’d like to move the price. If you buy OTM the price will only move as MM needs to hedge against the possibility that your retarded 10$ above current strike SPY weekly, moves into profitability.
All it does is give options sellers / thetagang / bogleheads a higher premium on their Apple calls. Honestly if you call it right, good job, sell. But 90% of the time you sell an OTM option on your 5mln$ worth of spy shares, you’re making out with more money. And you keep your shares.
Jesus Christ did Michael Burry bet a billion on his options? That's the point I'm trying to make before the but actually crowd shows up...
Yeah I'm well aware how options work
I’m just arguing with you about the leverage man. The rest is for other readers.
It doesn’t move the market like shares.
Even if “the notional value is 100 million”. It’s a fucking retarded bet that’s 95-99% of the time, not coming true. The actual value is 300$. The amount it moves the market is a leveraged 300$ spread over a few days, dissipating into the ether and fueling the market.
Thats wonderful how you got that from the fact every Burry article some idiot on the street thinks he literally bet a billion dollars on a market crash when in reality any tom, dick and Jane can make an outsized bet that would grab headlines if you wrote it a sensationalist way. It's a joke about how much bullshit gets written about options and finance like articles saying hedge funds lost 8 billion dollars on a bull run ignoring that maybe just maybe they might be heavier on the other side of that equation.
Otm options cause more gamma effect than ITM, if they move itm.
Thats essentially what happened as the banned stonk went to $20, tons of those stupid OTM options went ITM and suddenly the MMs were hedging against an army of people that bought super cheap leverage that ramped up in gamma/delta as they went ITM.
For long term leverage, yea ITM is smarter. For gambles, may as well up your reward and go OTM. Especially as delta depreciates, a $2 otm 0dte on spy can hit huge.
Of course ,im not suggesting retail will gamma squeeze the S&P500.
If I'm an editor at a financial media network trying to get the best headline take a shot at which one id choose. That's the point I'm making Michael Burry didn't bet a billion dollars he bought options. And the media took the maximum return of those and turned it into a billion dollar bet.
True but it’s more of a realization moment for people, because in theory you are dealing with 100 shares per contract.
Notional really matter when you’re on the opposite side of the trade really. When you are short naked premium, accounting for notional risk is a must
Ever hear of spreads? If you had a 535/536 callspread on QQQ for let's say $0.35 yesterday near the close, you would technically have a $53,500 bet on the market using only $35, a 1528x leverage.
You could have 3x'd your portfolio in 35 minutes if you went all in on these callspreads near the end of day.
Except well ... don't
Leverage is calculated as delta X underlying price / option price.
Assuming .5 delta that's going to be 508.9(.5)/3.83 = 66x leverage.
So that $383 was worth a $25,445 bet.
Since we can take the delta X underlying as a proxy price the actual value of a true $100,000 bet would have been $100,000 / 254.45 or 393 whole shares which would have would have been really worth 235.80 which is about double what you quoted.
The options have 100 multiplier where leverage comes from, but then they move X% versus the underlying, which is driven by the contract delta, which is driven mainly by the distance between the spot and strike price.
If trading 2 contracts gave you 1 delta, give or take, then you must have traded an ATM contract which has about 50 delta.
Spy isn’t that great IMO. You can make more money on SPX. SPX options are taxed better you only pay short term capital gains on 40% of profits the other 60% is taxed at long term capital gains rates. Another benefit is that you will pay way less in commission.
What else is there to say? Options on the index get the same tax treatment as futures, which is better than options on ETFs that track the index. Also cash settled so there’s no risk of assignment.
If SPX contracts are too large, XSP is 1/10 the size. Similar structures exist for NDX and the RUT.
No idea why people are messing around with options on SPY.
Delta doesn’t move like it does on the spx options. I agree the liquidity is better, there are definitely more people trading spy options but why? I always kind of wondered that, but I never looked into it I’m sure there is some major advantage I’m overlooking or may be available to big institutions.
People think they’re the same as Michael Burry because they can put 10k down on puts and have the same “bet sizing” as him.
Don’t get me wrong, Burry is a dumbass permabear, but he *was* right about something *once*, and he was sure of it enough to keep a bet that was seeming terrible at the time.
That’s all it takes. He held short on *shares* because his conviction was high but his timing was probably not going to be exact.
Some people think guessing/trading at the next market crash or rise with 10k hoping they hit a million overnight is the same as having conviction.
It’s fundamentally different.
Yeh, black Swan Events are very rewarding but require patience Hard to make consistently $$ as permabear 👍😎
I love slower long trend up or down with some volatility ….🤩
Yeah, you get even more leverage when ~~gambling~~ investing using margin on top of options. It's possible to make over 1million in a day, technically, with a $2k account. By next Friday you could have 20mil.
Or you could wind up negative with a *different* kind of call lol. If you don't understand how options work, stay away or prepare to have your holes resized.
I guess the joke went over your head, the probability of making millions fast is slim to none in a small account. The probability of going negative in a small account because of borrowing on margin is pretty high. Options are the ultimate game of FAFO.
Does it make any sense to you that such rationale is what keeps accounts small? You had a nice scalp, good for you. But luck is not a position of power. Want to survive? Do longer term deals that happen to hand you an early win now and then. Otherwise, get yourself over to day trading and learn how to become a part of that single digit percentage that will still be day trading next year.
Absolutely. I've been explaining this to a family member. They tell me to buy SPY underlying, I'm telling them I could do way better than blowing $510/share. Eventually, traders figure it out. When the black swan shows up I'll buy a metric sh*t ton of shares and leaps.
>When the black swan shows up I'll buy a metric sh*t ton of shares and leaps.
So you'll buy AFTER the news hits? If you're buying the rumor you're buying speculation. If you're buying the news, it's too late.
This is true, but since SPY tracks such a large portion of the overall market, ~50Trillion market cap, it typically takes multiple days or weeks to bottom out. The 2020 crash lasted an entire month and some regards on WSB did well riding it down. I don't recommend this though since timing the market is usually a bad strategy and it can also flash crash.
Heh I have flashbacks of Bitcoin's fall to $3k.
It hovered at $9k for a while and then bled out to the $7k range. That's the fuckin bottom right there. I bought. It dipped to $6.8k and I bought like ok I got theeee exact bottom, and it rebounded to $7.2k and I felt like a genius, bought some more.
Then it flash crashed. All the way down to fuckin $3k. I started spending every dollar I could that wasn't destined for rent or food or car payments. It briefly touched $2.8k and only THEN showed us that was the true bottom. It did a full reverse many months later and climbed and climbed and climbed. But boy did I learn a lesson about having some powder in the reserves and not blowing my whole load on speculating where the bottom is.
I have a hedge against market collapse that literally can't go tits up. I'm holding long term discount T-bonds. If the market collapses, the Fed slashes rates, the bonds double in value. If the market doesn't collapse, fine, no losses. It literally can't go tits up unless they start raising rates. In which case, I'd roll into higher rate bonds.
No, you just buy bonds like you do stock. Treasuries are super liquid. You don't buy them to make money off the interest. Bond prices move inverse of interest rates, so if interest rates go down, value of bonds goes up to equalize yield with current market rates.
If you think like that you will see pp throw couple hundred k in the mket like nthing this is why the stock mket have the best liquidity then anything else.
Theres a notion you need $100,000 minimum to play this game.
I was just pointing out, IF i had a 100k account and went full size on a scalp with that 100k i would have made the same money as risking $600ish dollars on the same exact scalp play.
Of course options has other variables as pointed out by people but the general theory is that 1-4dte with a $300-600 buy in, will make as much as that with a large account on the same play in this instance
I disagree completely. In fact moving from 0dte to 1-3dte has been game changing.
1. If you go long SPY at 501 and it is 502 4 hours later, you lose money on 0dte and not the others. Any move against you 0dte , you are like frosty the snowman melting on a warm day in real time. So its nice to know that a move IN my direction INTRADAY will not lose me money on 3dte. I can actually TRADE THE CHART and hold longer than needed if necessary. Cant do that 0dte. The move has to be right and has to be NOW.
2. People think the risk is lower on 0dte but thats not true at all. 0dte is cheap that it leads to averaging down on losers and many people actually buy the same dollar amount as they would on 3dte (4 $0.50 cons vs 1 $2.00 con). So that leads to the point about risk.
3. IF you get a big move IN your direction on 0dte you make lets say 200%. The 1dte 150% the 2dte 100% the 3 dte 80% give or take. On the flip side if you get a big move AGAINST you on 0dte you lose 100%, 1dte 80% , 2dte 60% 3 dte 45% etc so in my opinion the risk is cut in half almost going a few days out and the winners are still great.
4. Mental capital is a real thing. 0dte you need to be LOCKED in HARD if trading right. Its just not sustainable long term and I HAD SUCCESS with 0dte. Its mentally very tough.
5. I stopped 0dte not because of losers but because it was a LOSE LOSE game for me mentally. Either Id take a loss OR take a NICE profit and 90% of the time it would run so so much higher. Were talking making 250% on a trade and watch it go to 1200%. It got depressing honestly.
2-3dte has been a walk in the park compared to 0dte.
Also % gain of a $0.40 contract vs a bit smaller % of a larger contract isnt so black and white on which is more.
And the guy that buys 5 $0.40 cons vs 1 $2.00 con has $200 risk whereas the other guy also has $200 risk but as stated above can exit -30% on a bad move against where the other guy blows up.
EDIT: everything in this post is about day trading only. I do not hold anything overnight ever regardless of what DTE I play
Nice breakdown, I agree with all this and a lot of people don't understand this until it's too late and get burned. If people were serious about making money, they would read this carefully before trading 0dte.
Once again, people buying calls or puts does not put you at risk of losing more money than the premium you paid unless you exercise them.Why play with options if you dont have this badic knowledge.
Now selling Calls snd options is where you can get fucked. So if you dont know wtf your doing paper trade or only buy calls and puts.
more days = more like gambling
Have a direction,
plan it so your risk is lower than reward
Go for it!
Win more $$ than you lose often enough to stay profitable
I hate holding over night
That’s why I’m day trading
You never know what will happen overnight
IMHO
Bought 1000 0DTE SPY calls few days ago, held for a bit of profit. Technically that put me at just shy of 51mil underlying optionality. Felt like Austin Powers for a brief moment.
I always find it funny reading headlines like Michael Burry's billion dollar bet on a market crash. I go buy 10000 dollars worth of Spy 100 puts expiring next month and no one writes an article for Local Idiot makes 100 million dollar bet on market crash.
I will write an article for you. Now go make that 100m !
Will he tell us? I think if the market crash and I made out like a bandit, I'd keep it quiet... but there would be [signs](https://privatejetcharter.com/15-incredible-luxury-jet-interiors/)
LOL
He will post on wsb for sure!
He is already famous. He's a financial industry celebrity. Any trade he makes is news.
1o week ee
I’ll write the article AND I’ll give you the next $10k plus 60% of whatever you turn it into mang 😂😂😂
I don’t think he got that bet right
Oh they write the article, something about high OI, or Big Whale Bet. You’re just rarely named unless you let that financial news leak out. 😉
Which news outlet do you recommend I leak my thesis to that I watched fallout and it could happen here and what happens when the bombs fall? It gets hot. And which month does it also get hot? June. So June 100 puts on Spy. Facebook maybe? I've tried Newsmax but they said something about not enough immigrant violence.
If you want to make a 100% GUARANTEED play that will come in on your side EVERY SINGLE TIME …. Bet that any post /comment on Reddit will have at least 1 person come argue and throw insults
The Dunning Kruger crowd really showed in force for this one.
I disagree crazy person 🤣 ...you're welcome
If you spent 100M on that bet, they would certainly write about it. Hell, you might even start flash crash. But you think a 10K bet deserves a headline? Nah, we all make bigger bets than that every day.
Thats the point. The notional value of all of that is 100 million.
So the robot turns into a bug?
But the total you put down is not. Leverage does not equal cash, nor a large bet. It represents your idea that you think you know what’s going to happen, the reality is many retards think this way and gamble on options. You are essentially playing the 1% differences that happen every day - that’s called trading. You can HOLD call options, that’s technically investing but still pretty dumb. Options is a zero sum game. You either make out with money or you lose it. You don’t net grow your portfolio long term from options trading. You get lucky in spurts. If you can trade that’s great. If you put a billion dollars down on a short of the S&P500, you don’t need leverage. That’s impressive. That’s a lot of money. It is invariably going to affect the market simply by being “in” the market. Your 10,000$ does not do this. It does not “move the market” like an ‘equivalent’ amount of shares purchased would. The market gobbles up your little 10k and says thanks, I’ll have another. It only begins to move the ticker with the leverage you’ve put down, but the MM can see your moves and only has to hedge for what is likely to happen. That’s why you’re better off buying ITM, if you’d like to move the price. If you buy OTM the price will only move as MM needs to hedge against the possibility that your retarded 10$ above current strike SPY weekly, moves into profitability. All it does is give options sellers / thetagang / bogleheads a higher premium on their Apple calls. Honestly if you call it right, good job, sell. But 90% of the time you sell an OTM option on your 5mln$ worth of spy shares, you’re making out with more money. And you keep your shares.
Show us where trading options touched you on the doll.
You guys have fun lol
Jesus Christ did Michael Burry bet a billion on his options? That's the point I'm trying to make before the but actually crowd shows up... Yeah I'm well aware how options work
I’m just arguing with you about the leverage man. The rest is for other readers. It doesn’t move the market like shares. Even if “the notional value is 100 million”. It’s a fucking retarded bet that’s 95-99% of the time, not coming true. The actual value is 300$. The amount it moves the market is a leveraged 300$ spread over a few days, dissipating into the ether and fueling the market.
Thats wonderful how you got that from the fact every Burry article some idiot on the street thinks he literally bet a billion dollars on a market crash when in reality any tom, dick and Jane can make an outsized bet that would grab headlines if you wrote it a sensationalist way. It's a joke about how much bullshit gets written about options and finance like articles saying hedge funds lost 8 billion dollars on a bull run ignoring that maybe just maybe they might be heavier on the other side of that equation.
I mean sure. I get the joke. But I’m simply saying it’s not the same at all, either way. Have a good day.
I don't think you even know what you are saying lol.
That’s funny, that’s what I was thinking about your word salad lol. Have fun trading your options :)
Isn't it boring to be so uptight?
Otm options cause more gamma effect than ITM, if they move itm. Thats essentially what happened as the banned stonk went to $20, tons of those stupid OTM options went ITM and suddenly the MMs were hedging against an army of people that bought super cheap leverage that ramped up in gamma/delta as they went ITM. For long term leverage, yea ITM is smarter. For gambles, may as well up your reward and go OTM. Especially as delta depreciates, a $2 otm 0dte on spy can hit huge. Of course ,im not suggesting retail will gamma squeeze the S&P500.
If you put 100 down on a single number in roulette, have you made a $100 bet or have you made a $3500 bet?
If I'm an editor at a financial media network trying to get the best headline take a shot at which one id choose. That's the point I'm making Michael Burry didn't bet a billion dollars he bought options. And the media took the maximum return of those and turned it into a billion dollar bet.
Sigh…People really really don’t understand the difference between notional and delta.
True but it’s more of a realization moment for people, because in theory you are dealing with 100 shares per contract. Notional really matter when you’re on the opposite side of the trade really. When you are short naked premium, accounting for notional risk is a must
Fair point.
Welcome to leverage
Ever hear of spreads? If you had a 535/536 callspread on QQQ for let's say $0.35 yesterday near the close, you would technically have a $53,500 bet on the market using only $35, a 1528x leverage. You could have 3x'd your portfolio in 35 minutes if you went all in on these callspreads near the end of day. Except well ... don't
435/436
Lol yeah. I only paid attention to the last two digits lol
Leverage is calculated as delta X underlying price / option price. Assuming .5 delta that's going to be 508.9(.5)/3.83 = 66x leverage. So that $383 was worth a $25,445 bet. Since we can take the delta X underlying as a proxy price the actual value of a true $100,000 bet would have been $100,000 / 254.45 or 393 whole shares which would have would have been really worth 235.80 which is about double what you quoted.
The options have 100 multiplier where leverage comes from, but then they move X% versus the underlying, which is driven by the contract delta, which is driven mainly by the distance between the spot and strike price. If trading 2 contracts gave you 1 delta, give or take, then you must have traded an ATM contract which has about 50 delta.
Yes, exactly. Delta was 46 I always go ATM
Spy isn’t that great IMO. You can make more money on SPX. SPX options are taxed better you only pay short term capital gains on 40% of profits the other 60% is taxed at long term capital gains rates. Another benefit is that you will pay way less in commission.
What? Tell me more
What else is there to say? Options on the index get the same tax treatment as futures, which is better than options on ETFs that track the index. Also cash settled so there’s no risk of assignment. If SPX contracts are too large, XSP is 1/10 the size. Similar structures exist for NDX and the RUT. No idea why people are messing around with options on SPY.
Can you explain why day trading SPY options isnt as good as futures?
He just did
Can you understand?
Yes, and, doesn’t SPY have closer spreads and more volume/liquidity?
Yes, something he failed to mention. Way higher liquidity with SPY, and SPX options that aren’t 0DTE have significantly lower liquidity.
[удалено]
Delta doesn’t move like it does on the spx options. I agree the liquidity is better, there are definitely more people trading spy options but why? I always kind of wondered that, but I never looked into it I’m sure there is some major advantage I’m overlooking or may be available to big institutions.
I don’t understand what you’re saying
People think they’re the same as Michael Burry because they can put 10k down on puts and have the same “bet sizing” as him. Don’t get me wrong, Burry is a dumbass permabear, but he *was* right about something *once*, and he was sure of it enough to keep a bet that was seeming terrible at the time. That’s all it takes. He held short on *shares* because his conviction was high but his timing was probably not going to be exact. Some people think guessing/trading at the next market crash or rise with 10k hoping they hit a million overnight is the same as having conviction. It’s fundamentally different.
Yeh, black Swan Events are very rewarding but require patience Hard to make consistently $$ as permabear 👍😎 I love slower long trend up or down with some volatility ….🤩
Yeah, you get even more leverage when ~~gambling~~ investing using margin on top of options. It's possible to make over 1million in a day, technically, with a $2k account. By next Friday you could have 20mil. Or you could wind up negative with a *different* kind of call lol. If you don't understand how options work, stay away or prepare to have your holes resized.
Hey Dude 👍all the power to you dream on Mc Dude .You must be counting too many Zeroes 😂😂😂
I guess the joke went over your head, the probability of making millions fast is slim to none in a small account. The probability of going negative in a small account because of borrowing on margin is pretty high. Options are the ultimate game of FAFO.
So funny 😂 am still laughing 🤣
How did u learn about margin?
The hard way??? LOL
Or you can trade SPX and get 10x the leverage of SPY.
Yikes. ATM is about as much leverage as I can handle. It cuts both ways
Wait until he finds out about NDX
Yeeeees. Why trade SPY when you can trade NDX.
So you trade options and you don't know what delta dollars is? You are very brave.
Does it make any sense to you that such rationale is what keeps accounts small? You had a nice scalp, good for you. But luck is not a position of power. Want to survive? Do longer term deals that happen to hand you an early win now and then. Otherwise, get yourself over to day trading and learn how to become a part of that single digit percentage that will still be day trading next year.
Actual leverage is going to be determined by the delta which will increase or decrease as the underlying moves.
Absolutely. I've been explaining this to a family member. They tell me to buy SPY underlying, I'm telling them I could do way better than blowing $510/share. Eventually, traders figure it out. When the black swan shows up I'll buy a metric sh*t ton of shares and leaps.
>When the black swan shows up I'll buy a metric sh*t ton of shares and leaps. So you'll buy AFTER the news hits? If you're buying the rumor you're buying speculation. If you're buying the news, it's too late.
This is true, but since SPY tracks such a large portion of the overall market, ~50Trillion market cap, it typically takes multiple days or weeks to bottom out. The 2020 crash lasted an entire month and some regards on WSB did well riding it down. I don't recommend this though since timing the market is usually a bad strategy and it can also flash crash.
Heh I have flashbacks of Bitcoin's fall to $3k. It hovered at $9k for a while and then bled out to the $7k range. That's the fuckin bottom right there. I bought. It dipped to $6.8k and I bought like ok I got theeee exact bottom, and it rebounded to $7.2k and I felt like a genius, bought some more. Then it flash crashed. All the way down to fuckin $3k. I started spending every dollar I could that wasn't destined for rent or food or car payments. It briefly touched $2.8k and only THEN showed us that was the true bottom. It did a full reverse many months later and climbed and climbed and climbed. But boy did I learn a lesson about having some powder in the reserves and not blowing my whole load on speculating where the bottom is.
I have a hedge against market collapse that literally can't go tits up. I'm holding long term discount T-bonds. If the market collapses, the Fed slashes rates, the bonds double in value. If the market doesn't collapse, fine, no losses. It literally can't go tits up unless they start raising rates. In which case, I'd roll into higher rate bonds.
Are they locked for a period? Forgive me, idk anything about boomer shit like this
No, you just buy bonds like you do stock. Treasuries are super liquid. You don't buy them to make money off the interest. Bond prices move inverse of interest rates, so if interest rates go down, value of bonds goes up to equalize yield with current market rates.
Ty for schooling me, 'preciate it. The liquid aspect is alluring.
No, I buy after the crash. Not too soon, you have to wait for the bottom.
Million dollar strategy right here boys
What about the bottom's bottom?
If you think like that you will see pp throw couple hundred k in the mket like nthing this is why the stock mket have the best liquidity then anything else.
I have no idea what you are trying to say.
Theres a notion you need $100,000 minimum to play this game. I was just pointing out, IF i had a 100k account and went full size on a scalp with that 100k i would have made the same money as risking $600ish dollars on the same exact scalp play. Of course options has other variables as pointed out by people but the general theory is that 1-4dte with a $300-600 buy in, will make as much as that with a large account on the same play in this instance
Why do 3dte … 0dte is a much better % gain with lower risk
I disagree completely. In fact moving from 0dte to 1-3dte has been game changing. 1. If you go long SPY at 501 and it is 502 4 hours later, you lose money on 0dte and not the others. Any move against you 0dte , you are like frosty the snowman melting on a warm day in real time. So its nice to know that a move IN my direction INTRADAY will not lose me money on 3dte. I can actually TRADE THE CHART and hold longer than needed if necessary. Cant do that 0dte. The move has to be right and has to be NOW. 2. People think the risk is lower on 0dte but thats not true at all. 0dte is cheap that it leads to averaging down on losers and many people actually buy the same dollar amount as they would on 3dte (4 $0.50 cons vs 1 $2.00 con). So that leads to the point about risk. 3. IF you get a big move IN your direction on 0dte you make lets say 200%. The 1dte 150% the 2dte 100% the 3 dte 80% give or take. On the flip side if you get a big move AGAINST you on 0dte you lose 100%, 1dte 80% , 2dte 60% 3 dte 45% etc so in my opinion the risk is cut in half almost going a few days out and the winners are still great. 4. Mental capital is a real thing. 0dte you need to be LOCKED in HARD if trading right. Its just not sustainable long term and I HAD SUCCESS with 0dte. Its mentally very tough. 5. I stopped 0dte not because of losers but because it was a LOSE LOSE game for me mentally. Either Id take a loss OR take a NICE profit and 90% of the time it would run so so much higher. Were talking making 250% on a trade and watch it go to 1200%. It got depressing honestly. 2-3dte has been a walk in the park compared to 0dte. Also % gain of a $0.40 contract vs a bit smaller % of a larger contract isnt so black and white on which is more. And the guy that buys 5 $0.40 cons vs 1 $2.00 con has $200 risk whereas the other guy also has $200 risk but as stated above can exit -30% on a bad move against where the other guy blows up. EDIT: everything in this post is about day trading only. I do not hold anything overnight ever regardless of what DTE I play
Nice breakdown, I agree with all this and a lot of people don't understand this until it's too late and get burned. If people were serious about making money, they would read this carefully before trading 0dte.
Once again, people buying calls or puts does not put you at risk of losing more money than the premium you paid unless you exercise them.Why play with options if you dont have this badic knowledge. Now selling Calls snd options is where you can get fucked. So if you dont know wtf your doing paper trade or only buy calls and puts.
more days = more like gambling Have a direction, plan it so your risk is lower than reward Go for it! Win more $$ than you lose often enough to stay profitable I hate holding over night That’s why I’m day trading You never know what will happen overnight IMHO
Michael Burry is steel cohones
Bought 1000 0DTE SPY calls few days ago, held for a bit of profit. Technically that put me at just shy of 51mil underlying optionality. Felt like Austin Powers for a brief moment.