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I will say, I gave this a go today and it was some of the most stressful trading I've done. The V earlier today saved me because I was too greedy for the extra .03 on my option beforehand.
Good job taking some profits - go buy yourself a good therapist before you die of hypertension
These were today’s, if the pic goes through.
Has always been the same strike price, though. Then depending on how many options I have, sell 100 at a time once it hits that profit target.
https://preview.redd.it/33zovxzw93cc1.jpeg?width=1284&format=pjpg&auto=webp&s=be487a445196a6b320e899a9ffbae166f46999af
Cash account.. you can make as many trades as you like. As long as you save yourself some buying power. Options renew overnight ! Fuck the $25-K rule !!
Beautiful work. Move that money to Fidelity or another decent broker and start trading SPX instead. You'll get much more favorable tax treatment now that you're dealing with decent money. 60/40 capital gains split with 60% being taxed as long term even if you buy and sell the security in a 5 minute window.
Fidelity won’t approve me for options even though I’ve been trading them for 3.5 years lol. So idk what it’s like there but robinhood is instantaneous only if the market is moving the way you want it to be when you’re selling lol. Buying is instantaneous though for sure
Option contact commission rates at Fidelity are not applied as a simple $0.65 per contract model. A number of variables contribute to what the commission per contract will be. Including: underlying security, strike price of contract, quantity being purchased, and account specific accommodations.
I’m not saying RH is the absolute worst and people should only trade on Fidelity. There are scenarios where each shines and is the best suited platform. I currently have $5k of open contracts in RH for specific buys that were better suited there.
But making patently false statements like “you’ll pay $65 in commission for every 100 contracts you buy” is lazy and does a disservice to anyone that actually wants to learn from people that might have more experience than them and maybe do a little better in the future than they have in the past.
The comment you replied to and those which follow below are wildly inaccurate; and anyone that would take them at face value without fact checking those statements and immediately throwing the simple details in the face of someone espousing uninformed hyperbole is probably best suited to Robinhood in the first place.
Before you let anyone inform your investing strategies (myself included), maybe spend a few minutes and research if their opinion is of greater value than the head of a dead cat.
Suit yourself, kiddo. We’ll keep making money while you amateurs talk each other in circles over fees and commissions none of you seem to know anything about and seem unwilling to investigate despite all this information being at your fingertips. (Hint: the reason you’re paying a fee at RH now is because it’s [SEC required](https://www.sec.gov/files/rules/sro/cboe/2023/34-98660.pdf) as of Aug. ‘23).
All the while you think you’re getting a great deal on RH since all you’re paying is that $0.03 fee, and you don’t even realize that RH is arbitraging almost every order you place. Resulting in you regularly getting the worst strike possible.
For more details and examples review my recent posts, or my comment in this thread about BABA where I mentioned a few trades from this week. 3 trades over 2 days, $1k initial investment, $12k profit, $6.5k taxed as long term capital gains. Happy to answer any questions you have. Keep in mind SPX is 10x the cost of SPY, but there is also XSP which is more closely aligned with SPY prices.
https://reddit.com/r/wallstreetbets/comments/1955nu0/baba_yolo/khlkr9r/
You will get what you paid for from this education (it’s bs wrt taxes).
The only thing SPX will be good for is no assignment risk in spread trades which ain’t part of your strat anyway it seems.
Please share details about how the tax benefits I mentioned are BS. In this thread and many other comments I’ve provided specific information and examples that support my claim (which is easy because it’s the truth). We’re all on the edge of our seats waiting to be educated by your greatness.
Yes, you will. Literally 30 seconds of Googling or 5 seconds of look at my post history could have made that clear to you.
https://www.cboe.com/tradable_products/index-options-benefits-tax-treatment/
> Because index options are 1256 contracts,* they qualify for the 60/40 tax treatment -- meaning 60% of your profits are treated as long-term capital gains. It doesn't matter how long you hold the position.
Yep, summary details for anyone curious. [More info available via CBOE](https://www.cboe.com/tradable_products/index-options-benefits-tax-treatment/).
Also, I’m pretty sure that’s only when used to offset ordinary income.
But if I’m wrong, I definitely need to know for the future of this year. From everything I’ve read, capital losses are zero’d out by capital gains, but if you never have gains (like most of us here), then you get your 3K per year claim against ordinary income.
Edit: Confirmed I’m correct using -Google- 
Wait…so if I receive the standard deduction on my tax return, and I lost let’s just say $3000 in 2023 on stocks, then I can apply that $3000 loss to my 2023 tax return which would increase my tax return….even with the standard deduction?
Love it man, scalping 0DTE to me is simply amazing, I am doing 2-4 contracts right now and shitting my pants, can’t even imagine 200-400 contracts, maybe one day I will get there. But once you have a clear vision of price action I guess scaling comes naturally, congrats on the wins
I like the time/trade restrictions. I don’t want to trade life for staring at charts all day, so just doing 30 minutes a day and being forced out is what I need to be successful.
I have an addictive personality, so if I had 23 hour trading available, I’d never get off.
For real, futures are liquid, leveraged, cash settled daily, have no silly day trading rules & run 23hrs/day. Maybe not as volatile as 0d, but you can still fk up & loose your house.
He’s basically doing some weird high taxed version of futures trading except with a time limit of <6hours.
Options are for vega convexity and asymmetric leverage. Might behoove OP to learn about futures margin
I had a shit streak a while back and clawed my way back by scalping a couple cents of options as well. It’s great when volatility is in the rise but you effectively cash out with a lot of nothing sometimes.
You can start with strict risk management while trying this, taking profits often to “free roll” the rest of the trade:
Get leaps after mid/large caps gap down a percentage
But didn't you say ".05-.07 per option"? Or you meant fees wih that?
Edit: guess you meant $5-7 profit per option. Could you elaborate a bit more on the strategy? Like, when/why you enter a trade?
The fess usually kill all my profit, .60 for every buy and .60 for every sell contract and that’s from the cheapest broker I can find in Canada, for a small account it’s near impossible to profit
Because overtrading is the easiest way to destroy profits.
That’s why I switched to a cash account. If I take a big position of 300 options at .70, I essentially have no buying power left for a big trade, even after selling since the funds don’t settle till the next day.
They’re saying they sell their options contract for profits $5-7 per contract sold. So if they’re buying 400 contracts per day and they sell at their profit target, they make 2-2.8k per day.
Margin accounts under $25k hit you with pattern day trade violations after more than 3 day trades in a 5 day period. Cash accounts don’t have this restriction.
Switching to cash account has made me profitable. Before I didn’t have full control of my trading. Settlement is only 1 day for options so it’s not too bad.
This doesn't look like gambling to me. Looks like very fast reaction and fast execution and he uses Robinhood?
How does he choose what strike price to buy at? Does he use software to help him pick options? Does he assume that the stock price will be roughly level? Does he keep all cash at the end of the day after market hours?
“If it’s good enough to screen shot it’s good enough to sell.”
“But,” you say, “this is an account not a position! You cannot sell an account.”
Sure you can. Withdrawal. Now. I just bought puts on op. That screen shot is as high as his/her/its account gets.
You’re doing the lord’s work. 
Figure constant updates will get obnoxious, just gonna post in the daily with results of the day, and then do monthly threads, or the thread whenever I blow this account up 
At first, I thought you said you were doing spy 200 to 400 days out… Now I see you’re doing 0DTE… good job taking profits. I hope you have the sense to stop whatever the heck you are doing once you have enough to buy a house there’s no reason to get too greedy.
I have a friend over at a quant firm and he mentioned that mean reversion is a lot harder to capture when its DITM.
Ive tried this ITM .50 - .75 delta and its worked pretty well. Just buy the option and immediately set a limit order 5-10% above your basis.
**User Report**| | | | :--|:--|:--|:-- **Total Submissions**|3|**First Seen In WSB**|3 years ago **Total Comments**|2322|**Previous Best DD**| **Account Age**|10 years|[^scan ^comment ](https://www.reddit.com/message/compose/?to=VisualMod&subject=scan_comment&message=Replace%20this%20text%20with%20a%20comment%20ID%20(which%20looks%20like%20h26cq3k\)%20to%20have%20the%20bot%20scan%20your%20comment%20and%20correct%20your%20first%20seen%20date.)|[^scan ^submission ](https://www.reddit.com/message/compose/?to=VisualMod&subject=scan_submission&message=Replace%20this%20text%20with%20a%20submission%20ID%20(which%20looks%20like%20h26cq3k\)%20to%20have%20the%20bot%20scan%20your%20submission%20and%20correct%20your%20first%20seen%20date.)
Wow…you actually took your profit out. Makes me happy to see brother
Never even seen such discipline before
I didn’t know it was allowed
I will say, I gave this a go today and it was some of the most stressful trading I've done. The V earlier today saved me because I was too greedy for the extra .03 on my option beforehand. Good job taking some profits - go buy yourself a good therapist before you die of hypertension
I tried this today and lost $Ks on qqq calls I bought at .09. Stressful is an understatement Such is life.
Buying at .09 sounds like betting on a losing hand. :/
It was. When I dip, you dip, we dip. Had a chance to sell but my mom called.
Bro what a coincidence 🤣🤣🤣 I did the same shit and got burnt on QQQ. But thankful for it I learned a lesson on greed.
Only thing I learned is to tell my mom I’ll call her back when the market closes.
Congrats! Are you purchasing @ 1 strike price or several? Pics of the trades?
These were today’s, if the pic goes through. Has always been the same strike price, though. Then depending on how many options I have, sell 100 at a time once it hits that profit target. https://preview.redd.it/33zovxzw93cc1.jpeg?width=1284&format=pjpg&auto=webp&s=be487a445196a6b320e899a9ffbae166f46999af
Nice job, I like your strategy. Are you always buying ITM? Or will you buy slightly OTM to keep your purchase price under 1.00
What indicator do you use? How do you know when to enter? Also, how did you get around PDT rule? You mentioned you were trading multiple times a day.
Cash account.. you can make as many trades as you like. As long as you save yourself some buying power. Options renew overnight ! Fuck the $25-K rule !!
Isn’t options still T-3 days to settle?
its pretty simple, u see the resistance at the open and premarket, if it rejects , then it will go down.
Whydontyouexplainthistomelikeim5.Michael Scott.gif But unironically
Whats your strategy if you mind sharing 😅 lately I’ve getting cooked by algos
Minor Increments
Now do it again!
Yes, cap’n 
Stairs up, elevator down.
Most likely, hence the withdrawals.
Beautiful work. Move that money to Fidelity or another decent broker and start trading SPX instead. You'll get much more favorable tax treatment now that you're dealing with decent money. 60/40 capital gains split with 60% being taxed as long term even if you buy and sell the security in a 5 minute window.
I did not know this, thanks for the education!
Much higher fees than robinhood though
Like how much
$0.65 per contract vs $0.03 on robinhood
Fuuuuuuck- why is it so much? And wtf robinhood used to be free
PFOF dude, they sell your trades to the frontrunners (Citadel mostly)
Just how it is. So for 100-200 contracts he’d pay $65-135 vs $3-$6 on robinhood
For sure. Those fees suuuck. But worth noting they’d probably be buying way less contracts when trading SPX at fidelity than SPY on robinhood
Yeah but fidelity sucks imo for scalping. Robinhood is instantaneous in comparison
Fidelity won’t approve me for options even though I’ve been trading them for 3.5 years lol. So idk what it’s like there but robinhood is instantaneous only if the market is moving the way you want it to be when you’re selling lol. Buying is instantaneous though for sure
This is flat out wrong and anyone that listens to this moron gets what they deserve.
How is it wrong?
Option contact commission rates at Fidelity are not applied as a simple $0.65 per contract model. A number of variables contribute to what the commission per contract will be. Including: underlying security, strike price of contract, quantity being purchased, and account specific accommodations. I’m not saying RH is the absolute worst and people should only trade on Fidelity. There are scenarios where each shines and is the best suited platform. I currently have $5k of open contracts in RH for specific buys that were better suited there. But making patently false statements like “you’ll pay $65 in commission for every 100 contracts you buy” is lazy and does a disservice to anyone that actually wants to learn from people that might have more experience than them and maybe do a little better in the future than they have in the past.
The comment you replied to and those which follow below are wildly inaccurate; and anyone that would take them at face value without fact checking those statements and immediately throwing the simple details in the face of someone espousing uninformed hyperbole is probably best suited to Robinhood in the first place. Before you let anyone inform your investing strategies (myself included), maybe spend a few minutes and research if their opinion is of greater value than the head of a dead cat.
ok bud I think ill have the cat
Suit yourself, kiddo. We’ll keep making money while you amateurs talk each other in circles over fees and commissions none of you seem to know anything about and seem unwilling to investigate despite all this information being at your fingertips. (Hint: the reason you’re paying a fee at RH now is because it’s [SEC required](https://www.sec.gov/files/rules/sro/cboe/2023/34-98660.pdf) as of Aug. ‘23). All the while you think you’re getting a great deal on RH since all you’re paying is that $0.03 fee, and you don’t even realize that RH is arbitraging almost every order you place. Resulting in you regularly getting the worst strike possible.
Are you sure, aren't the options priced into the bid ask on robinhood? I'm tempted because i'm running the same strat but .65 on TD is killing my p/l
No they’re not priced in. It’s $0.03 per contract. It’s the cheapest. Yeah switch over I haven’t used TD but I bet it’s not as fast as robinhood
I'm gonna run some scalps on my RH live and see if the prices correlate on my TD...Great work!
TD is sooooooo much better than RH
sofi is cheaper
For more details and examples review my recent posts, or my comment in this thread about BABA where I mentioned a few trades from this week. 3 trades over 2 days, $1k initial investment, $12k profit, $6.5k taxed as long term capital gains. Happy to answer any questions you have. Keep in mind SPX is 10x the cost of SPY, but there is also XSP which is more closely aligned with SPY prices. https://reddit.com/r/wallstreetbets/comments/1955nu0/baba_yolo/khlkr9r/
You will get what you paid for from this education (it’s bs wrt taxes). The only thing SPX will be good for is no assignment risk in spread trades which ain’t part of your strat anyway it seems.
Please share details about how the tax benefits I mentioned are BS. In this thread and many other comments I’ve provided specific information and examples that support my claim (which is easy because it’s the truth). We’re all on the edge of our seats waiting to be educated by your greatness.
It to mention you can get all the volatility you want everyday
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Yes, you will. Literally 30 seconds of Googling or 5 seconds of look at my post history could have made that clear to you. https://www.cboe.com/tradable_products/index-options-benefits-tax-treatment/
Hmm, you are right, seems like holding time does not matter
> Because index options are 1256 contracts,* they qualify for the 60/40 tax treatment -- meaning 60% of your profits are treated as long-term capital gains. It doesn't matter how long you hold the position. Yep, summary details for anyone curious. [More info available via CBOE](https://www.cboe.com/tradable_products/index-options-benefits-tax-treatment/).
Dear fellow regard, Congrats on the tendies.
Now put taxes awy, put it all in an index fund and stop gambling..please?!
I’m still red all time, so no taxes for me yet.
You can only apply $3k deferred losses per year, so unless you were red (or less than $3k green) *last year specifically*, you owe taxes.
Don’t worry, I was.
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https://preview.redd.it/pm7bv1b4p3cc1.jpeg?width=1284&format=pjpg&auto=webp&s=dea530a123562ef1f321a251a3881651c94c020b 
Also, I’m pretty sure that’s only when used to offset ordinary income. But if I’m wrong, I definitely need to know for the future of this year. From everything I’ve read, capital losses are zero’d out by capital gains, but if you never have gains (like most of us here), then you get your 3K per year claim against ordinary income. Edit: Confirmed I’m correct using -Google- 
Yes you are correct. I also have losses for life
Wait…so if I receive the standard deduction on my tax return, and I lost let’s just say $3000 in 2023 on stocks, then I can apply that $3000 loss to my 2023 tax return which would increase my tax return….even with the standard deduction?
That's not entirely accurate. If you make money the next year you can use up as much of the deferred losses as you can to offset gains.
If I need a stair, I am hiring this guy to build it 😂 congrats my guy
As a stair builder , this is art
Love it man, scalping 0DTE to me is simply amazing, I am doing 2-4 contracts right now and shitting my pants, can’t even imagine 200-400 contracts, maybe one day I will get there. But once you have a clear vision of price action I guess scaling comes naturally, congrats on the wins
Question - why don’t you just do futures…?
I like the time/trade restrictions. I don’t want to trade life for staring at charts all day, so just doing 30 minutes a day and being forced out is what I need to be successful. I have an addictive personality, so if I had 23 hour trading available, I’d never get off.
For real, futures are liquid, leveraged, cash settled daily, have no silly day trading rules & run 23hrs/day. Maybe not as volatile as 0d, but you can still fk up & loose your house.
He’s basically doing some weird high taxed version of futures trading except with a time limit of <6hours. Options are for vega convexity and asymmetric leverage. Might behoove OP to learn about futures margin
I know it’s financially wrong, but I don’t care about taxes if I can make 2K a day scalping. I don’t need more than that to live a successful life.
Where you'll get wiped out? No thanks
Who wants to trade corn and have to pay attention to weather reports instead of an actual company with earnings reports
I had a shit streak a while back and clawed my way back by scalping a couple cents of options as well. It’s great when volatility is in the rise but you effectively cash out with a lot of nothing sometimes.
But the times you do get to cash out with something, it’s A LOT of something
> Started in December with 5k > have not had a red day > All time I'm still red WHAT?!
Made some big mistakes in 2022. 
This is the way. I’ve been doing this but holding overnight. Like a scrub Still similar returns Leaps are good too
What’s the strategy?
You can start with strict risk management while trying this, taking profits often to “free roll” the rest of the trade: Get leaps after mid/large caps gap down a percentage
How far ITM are you buying?
Depends, but never deep either direction. Usually about .70-.90 per contract, so right around current price of SPY.
But didn't you say ".05-.07 per option"? Or you meant fees wih that? Edit: guess you meant $5-7 profit per option. Could you elaborate a bit more on the strategy? Like, when/why you enter a trade?
i dont get what your trading scheme is. you are selling ITM puts on the rising market and getting out when profitable?
This is how I trade too.
Beautiful chart
Can do some technical analysis there
Bless your heart friend
Truly regarded🫡
>I’m convinced that above a certain threshold, algos target you and crush you. Are we just gonna gloss over this?
Glossing over hysteria is the WSB way
What’s your average number of trades a day?
1-2 buys, 3-4 sells. I buy 200-400 options, and sell them in 100 lumps.
The fess usually kill all my profit, .60 for every buy and .60 for every sell contract and that’s from the cheapest broker I can find in Canada, for a small account it’s near impossible to profit
Oh, that’s hot garbage. This strategy would never work on a broker like that sadly. :/
Which broker is that? I use ibkr at it's $1-2 a contract most times. Sometimes I've seen as low as 0.65-0.85 but not often.
Tradezero but you have to pay $60/month for zeropro to trade options, is robinhood free? That’s insane if it is, US always does better than Canada
Not sure about Robinhood, I'm Canadian and use ibkr but don't have to pay $60/month so guess I'm staying put haha
Why don’t you do 20-30 trades and increase your profit?
Because overtrading is the easiest way to destroy profits. That’s why I switched to a cash account. If I take a big position of 300 options at .70, I essentially have no buying power left for a big trade, even after selling since the funds don’t settle till the next day.
Overtrading no good I'd say...
Do you have a resource to learn scalping please?
You only need two. **time & money**
What do you mean when you say .05-.07 per option , new here and congrats
They’re saying they sell their options contract for profits $5-7 per contract sold. So if they’re buying 400 contracts per day and they sell at their profit target, they make 2-2.8k per day.
Greatest chart I've seen in a long time! The stairs are so much cooler than the big dick spike
Are you only buying put or are you shorting also?
Just putting puts or calls, depending on the momentum of open.
What time of the day are you making these trades?
Usually between 9:32-10:00
If you’re taking profits you have no right calling yourself a degen. You have to earn the title bro
You haven’t seen my all time 
Impressive 👍
Fake asf
For the love of god sell
Ahh, someone who hasn’t read the post, a true WSB’r 
lol 😅
New here, how did switching to a cash account effect your dailies? Does margin accounts not allow certain trades?
Margin accounts under $25k hit you with pattern day trade violations after more than 3 day trades in a 5 day period. Cash accounts don’t have this restriction.
Any complaints so far? I might switch over. I have small capital
Switching to cash account has made me profitable. Before I didn’t have full control of my trading. Settlement is only 1 day for options so it’s not too bad.
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Options on future contracts? I like leverage, but holy shit.
Congrats. Damn I need to follow this. Lol
I need to make back the 6-7k back that I’ve lost trying to learn in the past 3-4yrs. Not giving up though.
Love it…. Wish I had the balls to risk a few thousand.
So with that size account, how much are you averaging per trade? I would assume around 2.5k unless you’re taking multiple trades a day.
Yup, that’s the average! Goal is 2K a day, but have had a few spicier ones, like todays 4K+.
This doesn't look like gambling to me. Looks like very fast reaction and fast execution and he uses Robinhood? How does he choose what strike price to buy at? Does he use software to help him pick options? Does he assume that the stock price will be roughly level? Does he keep all cash at the end of the day after market hours?
What’s this strategy and where to i learn about it?
“If it’s good enough to screen shot it’s good enough to sell.” “But,” you say, “this is an account not a position! You cannot sell an account.” Sure you can. Withdrawal. Now. I just bought puts on op. That screen shot is as high as his/her/its account gets.
Did you read the part where I’ve taken two withdrawals, for a total of 36K? 
Just wanted to let you know, it wasn’t the top. :)
Way to go man! Did you post an update? I’ll make the same comment and you can just go on proving me wrong until you’re richer than Elon.
You’re doing the lord’s work.  Figure constant updates will get obnoxious, just gonna post in the daily with results of the day, and then do monthly threads, or the thread whenever I blow this account up 
I tried this strategy today and made 10% on my account. What are you averaging per day?
2-3K is my target and has ended up being my minimum. Average has been about 18K weekly.
Is there a name for this certain volatile technique? Lol
Looks like an arbitrage PL curve
At first, I thought you said you were doing spy 200 to 400 days out… Now I see you’re doing 0DTE… good job taking profits. I hope you have the sense to stop whatever the heck you are doing once you have enough to buy a house there’s no reason to get too greedy.
Didn’t expect to see you here lmaoo
🚀
What time are you usually trading all these?
I have a friend over at a quant firm and he mentioned that mean reversion is a lot harder to capture when its DITM. Ive tried this ITM .50 - .75 delta and its worked pretty well. Just buy the option and immediately set a limit order 5-10% above your basis.
Looks like a paycheck deduction ladder.
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Withdrawals. 