Been trading a lot of 0dtes lately and noticed that they are moving outside the expected move much more frequently than the theoritcal statistics. It appears buying straddles/strangles would have been much more profitable. As all of the short premium trades i have put on were tested, breached and stayed above my defined risk max loss. Had these been long options they would have been max profits.
Finally they acknowledge it. And Tom just says "yeah I do it like a soft stop I close whenever I feel like I'm risking too much" like it was their thing all along. I remember the last "stop loss in 0dte" vídeo a couple months ago in which you guys just couldn't admit that having a 50% or 100% stop loss would be significantly more profitable risk wise. If you do similar dollars per day with half the cvar, you are making more money, simple as that, because you can double your position and your cvar would be the same as if you were not using stop losses at all.
Been trading a lot of 0dtes lately and noticed that they are moving outside the expected move much more frequently than the theoritcal statistics. It appears buying straddles/strangles would have been much more profitable. As all of the short premium trades i have put on were tested, breached and stayed above my defined risk max loss. Had these been long options they would have been max profits.
Finally they acknowledge it. And Tom just says "yeah I do it like a soft stop I close whenever I feel like I'm risking too much" like it was their thing all along. I remember the last "stop loss in 0dte" vídeo a couple months ago in which you guys just couldn't admit that having a 50% or 100% stop loss would be significantly more profitable risk wise.
If you do similar dollars per day with half the cvar, you are making more money, simple as that, because you can double your position and your cvar would be the same as if you were not using stop losses at all.
When you guys say sell 20 delta strangles, we can’t do naked strangles so at what delta you have your cover leg?
Or how more points you go up or down to cover the leg so it’s not naked strangle
They’ve mentioned 25 point wide wings to mimic effect of a strangle
useless search! Stay away from 0DTE and trade nothing less than 7 DTE
I agree but it’s def interesting to see their research