0DTE: Inside the Explosion of Ultra-Risky Options Trading | WSJ
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- Опубликовано: 16 май 2024
- Traders are piling into zero-days-to-expiration options, or 0DTE options. They are a cheap, fast but risky way to bet on the market that offers the chance of explosive returns if those bets are correct. These big wins can also lead to big losses as they are extremely risky investments. Retail traders have played a big role in driving 0DTE trading volumes to record highs.
WSJ explains the rise and effect of 0DTE options on the stock market.
Chapters:
0:00 0DTE options
0:28 How it works
2:34 How it got so popular
3:32 How it’s impacting the market
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#0DTE #Investing #WSJ
“First thing I’ll do is head over to twitter, that’s where I get all my news”…….absolute legend 😅
another word for clueless
If you follow the right accounts, twitter provides great news sources (@LiveSquawk @Zerohedge, @fundstrat, @NautilusCap). I'd rather not pay $25k/year for a Bloomberg terminal maybe in the future but not now.
What a guy., He is one of us
pleas fly again 😢
i have a bloomberg terminal but i still head over to twitter first.
For anyone watching this who doesn't understand basic math, what he is betting on (day-to-day stock movement) has been shown to be completely random. WSJ chose not to feature people who were losing money doing this. Imagine that there are a bunch of people betting on coin flips. They all have their own "system" set up to predict coin flips. Well, basic statistics will tell you that within that large group, some people will make a lot of money betting on coin flips. WSJ would then make a video about those people, ignoring the fact that it's completely random. WSJ should follow this guy for several years and see what his average yearly earnings are. There's a good chance that they'll revert to the mean.
Thanks for the additional info
Exactly, derivatives trading is carry ultra risk. losses is inevitable
Not quite 50-50 but pretty close, yes.
Well said
Survivorship bias
The fact that he's launching his own small course tells me everything I need to know about how much money he actually makes from doing 0dte 😂😉💦
Yep, exactly
Yup
Typically how it goes lol.
Meaning quite a lot, right?
Maybe he wants to make more money?
This man is a true wsb regard!
One of us!
@@WealthwiseCapital01 sounds like world class grifter outfit
can we make him a meme on wsb saying he knows all with 2000iq
@@js-gc2hkit's a well documented fact that the more monitors you have, the more money you make in the stock market ! 🙂
But while the stock market has a rather tasking nature, it’s also a very rewarding endeavor when you have a proper plan and strategy I know for a fact! :)
Complete beginner. I have “dabbled” for almost a year. Ready to try options but lost!!! Quite psychological
Trading 0dte on SPX is like a rodeo ride. I’ve had both great profits and no devastating losses trading these…. It’s a very tough mental game indeed but I’ve been enjoying the ride quite a lot, so I’ll stay on the horse!
Thanks for the note. Makes total sense. They move so fast so it’s ‘easy’ to experience both sides of the coin. I appreciate your comment.
0dte are actually safe if you back test a time frame and have a good plan and strategy and know well what your trading. If you just try it and do anything you will lose. Most strategies or dte choices are not wrong but it’s the time frame u use. Like entering last hr of the session rather than the first.
Well said. Experience is Key! I use
pre-planned entry and exit, and risk management of an accredited pro trader. Her technical know how makes trading possible!
Love how the trader looks at graphs and thinks he knows something
lol. Seriously.
yeah its fake traders
They should have shown him out mowing the grass and changing his oil.
He has truly all the idiot trader checkmarks, quoting:
“9-5 job are not scalable”
“You need only 1 crazy trade”
“I was an entrepreneur once”
the guy is as good the guy featured on the onion
The end game for this guy is selling these courses.
Thats how he makes his money. Not by trading, because I guarantee he will likely lose more than he makes.
Unfortunately that's not true neither is it sustainable. Trading should always be the main income source while education such as discord, group coaching etc is 2nd or 3rd stream.
Not if you're trading 0 DTEs@@DraysonLittle
My goal is to rake in 6 figures trading options each month, but don't worry, I'll also sell a course on it. It'll be called 'How to Print Money While Sleeping, but First Pay Me.' Kinda like selling snow to Eskimos
And with this interview, he's sure to find a few buyers.
@@DraysonLittlethis isnt how marketing works though. You'd be shooting yourself in the foot. Selling courses and running paid groups scales really quick, theres just no comparison with trading profits. What you should do though is provide 3rd party audited broker statements each year to show that you are in fact profitable and have some right to be mentoring people...which 99% of these "online traders" never post.
WSJ is superb. “This is how I got rich”
The first step to building wealth is figuring out your goaIs and risk toIerance - either on your own or with the heIp of a financiaI pIanner, and foIIowing through with an inteIIigent pIan, you wiII gain financiaI growth over the years and enjoy the benefits of managing your money.
I am fortunate I made productive decisions that changed my finances (gathered over 1M in 2years) through my financiaI planner. Got my 2nd house in Feb, and hoping to retire soon. Give this a try and attain good-returns.
researvh this in fuII, if you care.
researvh this in fuII, if you care.
FinanciaI-Advisor REBECCA MARTIN WATSON
For more lnfo ..
He talks about launching an options trading course next year. That's the only way guys like him actually make money, selling expensive courses to be people who don't know better. If he actually knew how to make a lot trading options he wouldn't sell a course, he'd be too busy making money with his options strategy for it to worth his time.
Exactamente 😉
not true. Some successful people want to help other people.
Totally agree
Well sometimes these type of people just want to help others. I see nothing wrong with that
@@thealternativecontrarian9936 the thing is, he is not successful. The Mercedes is not his. And if you were to sell a course, it would lower your alpha. So if he really made a lot of money this way he would never sell it to other people.
I can already see that guy selling the "How to 0DTE" course.
Edit: Comment was posted as soon as they explained how the guy trades, but 5:03 made me feel like a prophet.
a future "if books could kill" author
He's got the first steps down right .. buy the car, show the lifestyle, now buy my course.
You should start a course on predicting RUclips videos
Sell a 0DTE course in his spare time. Think about it!
@@Mike_Genisys Make a video of yourself looking at ticker screens on a multi-monitor setup.
So he will make 6-figures per month next year (enough for living a dream life) and still teach an options course? Sketchy, to say the least.
They only make money with selling courses to idiots. Those are the people of the return distribution who claim to make enough return. 90% lost all.
because that's where the money is and they know they can't win always in trading its just not so easy for people like this
I tell every single person I know who is interested in trading, that anyone who has a truly successful strategy does not need the money from teaching a course, and they wouldn't waste their time making videos and such for pennies.
@@paulstrong2172 a truly successful strategy and trading cant be used in the same sentence. just earn much money in your job or in selfemployment and invest it in good businesses.
exactly those who truly make big bucks from trading will just focus on trading and not sell courses. Even if they say it's fair more a stable income, or that they have passion to teach, all BS.@@paulstrong2172
This guy is definitely a wsb mod.
I’m so glad people like him exist. There have to be losers for the winners to exist
Yes sir
retail traders that are unprofitable are still a great benefit to our everyday lives and people dont understand it, their losses and everyone elses loss and wins and buys and sells price in our US Dollar, our companies, our companies stock and supply and demand which prices in our products, these idiots and also hedge funds and everyone else price in your life.
This, I agree with totally!
I remember having a consultation with a trade analyst last August, and it was incredibly insightful. Can’t stress enough how helpful experts in this field are!
Having Jonas Herman as my trade analyst, he has guided me to identify key market trends, pinpointed strategic entry points, and provided risk assessments, ensuring my trade decisions align with market dynamics for optimal returns.
Hermanw jonas (a g mal comm
Thanks for the advice, both of you. It’s reassuring to hear positive experiences.
I feel more confident about moving forward with Herman now. I just shot him a mail. Thanks for sharing your experiences!
letting trading course guy have the last word is the responsible reporting we know and love
😂
Bro’s definitely been betting his parents retirement money
And it worked out. His family seems proud of him
Theyre not traders, theyre gambler hahaha
Investors, day traders, swing traders are all gamblers! All of them!
If we take aside the whole gambling (and this is 100% pure gambling), there is also him vs. algotrading. There are teams of thousands of the brightness researchers working for investment banks that are being paid 400k just to optimize the trading algorithms. If one person thinks they can calculate and beat the AT then it is a fool
He's been lucky. That's it.
@@MrMikecool35your right there also the fact of risk reward if you risk 100 and make 1000 you could afford to lose a couple tomes and still be profitable
Those same geniuses/brightest are responsible for losing the most $$ ever and crashing the market time and time again.....so I'd say that dudes chances are good enough, 55% is the key win rate.
Why beating whales ? Traders job is to follow the whales. You are not a trader.
Everything involving the stock market is pure gambling! You seriously think people can predict the future by looking at the past which is what fundamental and technical analysis are. LOL!
I am very new to the trading scene, watched an almost 2 hour tutorial on how to trade options, but I still don't really get it. I really want to learn how to properly do it. I read these charts wrong most times. Do you ever trade for others? I'm interested. I have about $95k set aside to test the financiaI market waters.
It's really not as difficult as many people presume it to be. It just requires a certain level of diligence, which is something ordinary lnvestors lack, and so a financiaI advsor often comes in very handy.
I was able to remain afloat in the market and build my portfolio to around 65% since January by copying trades from a financial expert. In a matter of months, I was also able to achieve a net profit of over $650K by trading equities and certain ETFs. If you're a novice, you ought to think about exploring that choice. That's always a safer option.
@jospehbush My partner’s been considering going the same route, could you share more info please on the advisor that guides you
@aureliobjm I only copy trades made by HEATHER LEE LARIONI. She is employed with Empower FinanciaI. However, there are many of independent consultants you could research. Her approach seems to work for me, which accounts for my outcome. She offers points of entrance and exits for the assets I pay attention to.
@josephbush She appears to be well-educated and seems proficient considering her résumé. I ran a Google search on her name and came across her website; thank you for sharing.
If he can afford his quad monitor setup. He can afford to lose way more.
Hahaha this was funny
The transaction fees is huge for the market players
Hedge funds are the ones driving this 0dte maina... No retail person can put on like 300k worth of 0te.. this can all be seen from the options flow..
They need to require all individual trading users to complete a option training module before they can even execute these types of trades.
Fascinating insights into the world of ultra-risky options trading! This video sheds light on the allure and dangers of 0DTE options, showcasing real-life experiences of traders like Drayson Little. It's a compelling reminder of the rollercoaster ride that trading can be.
Your tips have been incredibly helpful in improving my trading skills. I tried them out and got 11 out of 13 - the best I've done in a long time. Thank you for sharing your knowledge and experience with me
Like buying the dip at this time cycle
If he could turn $10k into a million, then he could turn a million into $100M, then $100M into $10B. Before you know it, he's richer than Elon Musk. Why would he offer an option trading course that probably nets him a few grand a month?
If he's not a complete and utter regard then as soon as he turns his money into a couple of million, he will put it in a reputable bank's CD and enjoy the return for the rest of his life.
true regard
All that hard-earned' money to buy a gtr and a Rolex... Nice set of priorities...😂
"1st things 1st... Twitter!! ..." 🤣
Why do they always want to sell courses.
Leaning towards group coaching. I have so much free time after trading hours. I mean most days Im done trading before 10am PST so I have so much free time throughout the day. Why not offer an educational side to trading?
Why do they always want to sell courses? It's the laziest, most devious way to print money without the Feds knocking. Imagine, convincing a crowd you can turn them into Warren Buffett, when really you're just Bernie Madoff with a webinar. Selling courses is like swiping your wallet, then selling it back to you filled with Monopoly money and calling it 'educational investment.'
@@DraysonLittle you could use that free time to iron out a strategy that works after 10am...lol
So they can fund their loses!
Is there a problem with teaching people?
Interesting video. Might be worth looking into.
It's like going back in time to 2000!😂😂😂. Drop shipper goes broke.
@@thekongstocksyooo, how did you do that ???
please tell me please !
HA!@@fakeonefakeone5075 RUclips launched their custom "special" emojis a few years ago but it only works for desktop computer users who have the latest Windows-version...haven't seen these RUclips emotes on cell/mobile yet...that's all I know ✌️
Honestly, this concerns me and has left me uneasy. Especially this potential depression, no more a recession. I'm unsure about my $130K account strategy, considering the uncertainty of this whole recession mostly.
Of course the trader interviewed is planning on selling a course…probably on analytics and technical analysis.
Once he said he used to do e-commerce I knew where it was going. Traders who actually make money consistently just trade instead of making courses or running paid discords.
Right. Managing intraday risk is way worse than holding a stock overnight, some BS news article comes out and you get a gap down/up that blows up your trade.
His course is coming guys😂😂😂
Congrats to the WSJ for doing a hit piece on a profitable trader.😂
gambling. Got it
cryto-bros, assemble!!!
Gambling with stocks… a few will win, most will lose
lose
thanks for the premiums - options seller
The amount of not just capital but human capital, brain power and time wasted on these options and derivatives is incalculable. Shame how much potential is wasted
Autism does that
wdym?
Ahhh so this is how you do it. I’ve been selling low and buying high all day everyday. Finally I’ll hear my cash go brrrrrr
Just inverse yourself. It’s that easy.
No risk no reward. I know so many people that played it safe their entire working lives. And, guess what? Compensation never kept pace with productivity and profitability increases. Inflation outpaced returns. Then, last but not least, their pensions were taken away while their 401Ks tanked because Wall Street didn’t have a clue what was going on in their own markets until just recently.
Wall Street doesn’t have any bearing on what the market does, your beloved president does. The FED is who gets instructed by whoever is in office to do certain things. Wall st already has all the safety features in place, circuit breakers and halts are the best they can do. Ppl losing 401ks was the president not doing more to help the economic Situation at any given time
Tried some 0DTE trades, could make $200-500 per day if not aggressive, but needs skills and glue to screen all trading hours. Can add income if daily work is not too heavy or time consuming 😊
Ahh, options…maybe if I could experience zero emotion while taking massive losses I’d dabble
That's what bots are for.
he's living in a dream and will end up broke
how long have you been a trader?
The only people making money on ODTE? The market makers. All the retail day traders will eventually lose - exactly like a casino. These folks didn't live thru the first day trading mania in 2001 so expect them to make the same mistakes.
this
I know a lot of people making money with 0 dte!
@@ricomajestic making money and keeping money are two different things
Love 0dtes, trading them is fun and does indeed require strict discipline. Only trade at certain timeframes and occasionally jump into stock options for news related trades.
You can still make 100% returns on 1 or 2 day options. Safer plays for beginners
This is such a dangerous video. Honestly the wrong impression of day trading. People are going to lose in the long term - the charts and fancy monitors always suckers in people lol
This sort of strategy has about equal chances of winning and losing money.
Which means when you pay capital gains tax and options trading fees, it is extremely unlikely you would outperform a passive investment getting the market return rate. It's pretty much just gambling, not investing.
To be fair, losses are also tax deductible, but only up until $3,000. Won't cover the $65k that this regard lost
@@AlmightyDude420yes but it depends how you register during your taxes, ie business vs sole proprietorship
Exactly what I thought watching this. What a waste - it's just gambling and this young gentleman's money could be invested in very wise and ultimately profitable ways. He could use the dividends to go to the casino, I guess, if he wanted to gamble!
@@dmalka336 what are some better ways to invest the money and get high returns with lower amounts of money?
Day traders are just like Professional Poker Players... only the top 10% can grind it out with profits.
Agreed!
When you put it that way, it actually seems easier
Thanks for this new opportunity of wasting my money Wall Street Journal. Love you! ❤ kiss kiss 😚
This doesnt seem like a real trader to me and neither is it correct to assume that trading is just gambling. There are people who make an income from trading whether it be stocks, options or futures. Although, their goal is NOT to make $10,000 in a month. It is to take a trade based a tested strategy with set risk. Money will come eventually. Unless you are willing to have your account blown, emotions and mental health tested. Just invest in solid companies and manage that portfolio over years and years. Dont trade! its not for everyone and this is coming from a trader.
2:22
many of my friends said this in 2021 and then magically disappeared in 2022
They disappeared because they went to live on beach resorts permanently
@@mikermiks5784 HAHA. that is so funny. Like Clinton and Trump on Epstein Island just for the snorkeling
Just imagine paying for a trading course and the guy that is teaching it gets his trading strategy from Twitter. Okay...
2:00 how did someone manage to lose 20-30% During one of the Most extreme Bull runs in History?
Because day-to-day stock movement has been shown to be completely random, like flipping a coin. What he does has nothing to do with bull or bear markets.
@@huntercoleman1347 yes, but Most Investors tend to Bet on rising prices.
As someone who was a complete beginner at the time I don't think it matters what phase the market is in especially when you're just learning the game. Emotions + Flawed Psychology = Losses
@@DraysonLittle I understand what you mean. I was Just pretty Sure that Most Traders tend to be Positionen to Profit Off of rising Stock prices.
But I would still say that Trading remains a loosing Game, since it's a Zero sum Game where for each trade the Brokers, Exchanges and Other middle men Take their Cut, Leasing to losses in Aggregate.
WSB specimen.
Derivatives are a 0 sum game. Meaning that someone has to lose in order for somebody else to win. This is not like the stock market where the market can grow as a whole as companies provide valuable goods and services and earn profit.
Derivatives have elements of insurance and a casino. Derivatives are valuable as hedges to other investments. They are kind of like an insurance, limiting risk but also limiting return. If you trade derivatives not as a hedge, then you are essentially betting on the market and its more like a casino.
It would be great if you had an option screener that given the strategy, ie a bp credit spread it gave you the top premium trades with no earnings before exp
Gambling*
Thank you
I dont understand why people consider options as risky. The point of option is to offset your risk by paying a premium to only get the right to buy or sell the stock. So as far as i know, if the price goes against your bet, dont you only lose your premium at worse ?
Selling options is what gets you in hot water
@@bobthemagicmooseagreed because your loss is unlimited
It all depends on your positions and sizing. You can create significant leverage by moving option strike place farther from the current price and by moving the expiration date closer to the present. That’s exactly what 0DTE is.
@@itonner231 how much is tyipically the premium worth in % of the total order ? Is it like ~10% ? And by how much does leverage affect this % ?
In theory, buying options is limited risk. But there are other hidden risks (like pin risk) that can result in massive losses. For example, you have 10 calls that expire ITM on Friday. They are automatically exercised at market close (4 pm ET). However, at 5 pm, news breaks that the CEO and the board of directors all died in a plane crash. Unless you call your broker to tell them that the calls shouldn't be exercised, you'll likely take a massive loss when the stock price dumps Monday morning.
THEY ARE KNOWN AS "FD'S"
Manage your risk and 0dte can be very good for profits
Guys a legend
looking forward his trading course
At least in Vegas you get a free drink.
Same thing in Indian markets as well
That option trader is mellow dope.🤑👌
"First I head to Twitter where I get all my news". Okay, that's all I needed to know
so why don't they just place a hedged position?
Is 0DTE options only for margin account?
In India, its called Zero to Hero trades😂❤
I normally i buy spx 5 dte at the eod of each day... so far so good 😅
That really cool thank 4 mack video
My brother Drayson 🎉
Never lost that much money at the beginning tbh I never went to school or learned from somebody just myself and I’m doing alright
I'm not going to hate on anyone getting money, but at least be honest about it. We know what it means when you're selling courses or signal services.
The more I listen on how to trade options the more I get confused
One of us! One of us!
bruh "first thing in the morning, I'll open up twitter"
that says everything I need to know
Only play in small float stocks…gamma has a greater effect on the movement. Only sell in indexes.
Usefull videos
@2:18 My favorite book ever written in the last twenty years.
IMHO this has been a boon for the market makers and retail traders in the US were better off when they could trade CFD’s. The correlation in volume between 0DTE between 2018 and present is a byproduct of the Dodd Frank Act.
What’s the book name?
@@habibi750 48 Laws of Power
Congratulations great win!
GREAT PAID AD 🙌
Highly regarded individual!
I have been following your signals and strategies for several months now and I can say that they are really effective. Thank you so much for helping me achieve financial freedom.
Never buy any course from people with pictures of expensive cars and luxury items, and who talks about how they are making 6 figures a month.
This kind of trading wont last very long, and will always end up losing more than he makes.
Came here for the ODTE options and stayed because of the lovely señorita
That kid got a gambling problem
One thing I don't understand is if it expires on the same day, who's going to buy them from you when it's close to the market closing?
The market maker
WSB FTW!
it means value will expire in zero seconds if not minutes
One of us, one of us!
If he is so good at trading options, why does he need to open a training course? Warren Buffett doesn’t have one
"He wants to help others" 😂😉💦
he's a socialist.
Thanks for including us!👋
No one else will understand besides a real day trader.
Even if bond yields are rising while stock prices are decreasing,the markets are still a bit skeptical as to whether the federal reserve will stick to its goal to raise interest rates until inflation is under control. Would it be best to sell my $401k worth of equities, what is the best way to profit from the current down market.
It is much more challenging to create a strong financial portfolio therefore it would be wise to get much needed assistance from a real finance professional. You can then receive strategies that are specifically suited to your long term objectives and financial goals.
MOOOOOOOOON
NFA but I would be looking at this 482 level very close
4:20 WSJ caught First Republic Bank in its downfall
My immediate reaction to title was "oh a piece on wsb!"
This options trading strategy can lose a lot of money if you only buy single calls or put, but if you buy straddles or strangles, it could be a good way to make a little income each month. It would be best to do with index options like XSP or XND.