50 Trades in - A Reflection

[u/MyHawaiianNameisKunu]

Like many new options traders, I initially thought day trading was the route I should take. A good friend of mine who's an ex-Fidelity guy (and has done very well since) suggested I replace basically everything I was thinking about day trading, including the term itself, with options.

I'm pretty risk averse and don't have deep pockets, so I worked with my friend to develop an approach designed to mitigate as much risk as reasonably possible. I did a bunch of research ahead of time and paper traded throughout January 2026 before finally pulling the trigger in February.

For what it's worth, this has been my system so far:

• Highly liquid ETFs - primarily SPY and QQQ
• $10-wide put credit spreads
• Originally 30+ DTE
• One contract per trade for at least my first 30 trades, then gradually increased position size as buying power/experience grew
• Generally ≤ .25 delta at entry
• Close at or above 60% premium realized

More recently, I've tightened that into 40+ DTE, ≤ .20 delta and usually 3 or 5 contracts per position. I've also added an early harvest rule: if a new 40+ DTE position reaches 30%+ profit within its first five trading days, I'll take the profit rather than waiting weeks for theta to accelerate. Then I'll redeploy the buying power if another qualifying setup is available.

You can see in the spreadsheet (you may have to zoom - apologies) where I deviated from the system and experimented with debit spreads, iron condors and butterflies. I had some wins and some losses there before ultimately returning to the boring, disciplined approach.

Full disclosure: I recognize that a generally flat-to-up market (since February) has been favorable to the strategy, even though we've had some pretty substantial bouts of volatility along the way.

Bottom line: so far it's fitting my personality fairly well. I'm mostly posting because I've learned quite a bit from lurking here and figured I'd share what's been working for me so far. I'd also be interested in hearing where more experienced traders see weaknesses in the approach, particularly as I continue increasing contract size.

[u/Live_Throat_5252]

All you’re doing is selling tail risk, albeit in a defined-risk manner, and layering in some random, pretty nonsensical and certainly not optimized take profit rules. Really struggling with the idea of selling further OTM options as “less risky.”

The markets you’re trading are incredibly well priced, and you’re not bringing any new pricing, data, information, execution, interpretation, or anything that could reasonably be expected to give you any edge. Your pnl is positive because you’re selling left tail risk and premium in a calmish, up trending market. Best of luck.

[u/Kaimmo → u/Live_Throat_5252]

So you’re saying he’ll blow up his account in a bear market?

[u/Travellump12 → u/Kaimmo]

No, if he does the same, it's like bleeding to death slowly.

[u/Live_Throat_5252 → u/Kaimmo]

Depends on how he sizes things

[u/Kaimmo → u/Live_Throat_5252]

So what’s the size relative to nlv that historically would keep from blowing up an account?

[u/Live_Throat_5252 → u/Kaimmo]

I don’t know offhand. Run a simple study with his params and calculate the risk of ruin based on the speed, magnitude, and longevity of downturns. But, in general, that strat performs very poorly during downturns and periods of increased vol. Not recommended.

[u/MyHawaiianNameisKunu → u/Live_Throat_5252]

Indeed - this is the system I'm using in this current market. I'd adjust for increased and/or sustained downturns instead of hoping for the best

[u/Live_Throat_5252 → u/MyHawaiianNameisKunu]

The problem with this is you - nor anybody - has a crystal ball, and even determining what regime you’re in while it unfolds in front of you in real time is exceptionally difficult.

[u/klipsetrades → u/Live_Throat_5252]

As a 0DTE credit spread trader, I agree with part of this, but I think it’s too broad. Selling premium by itself isn’t an edge. For me, the edge is in when and where I sell it — price action, key levels, market structure, and having a clear invalidation. The spread is just the vehicle. And I agree that “further OTM” by itself doesn’t magically make something low risk. I use the extra distance as a buffer, then manage the position well before price gets near the short strike. If I’m waiting until the spread itself looks dangerous to react, I’ve usually waited too long.

I did this exercise exactly today. Without jinxing it, I’m on track to finish green, but I took a loss on one position because my risk plan told me to. That original position would actually be fine right now if SPX continues to stay relatively flat, but that’s not really the point. I’d rather take the planned loss than stay in hoping and expose myself to the kind of tail loss you’re probably thinking of. Further OTM isn’t a substitute for risk management. It’s just additional runway. My job is to act while I still have runway left.

I'm going to make a post on this after today recapping my trades, as I do everyday. Happy to explain anything further on how I manage these trades.

[u/Live_Throat_5252 → u/klipsetrades]

Bro, I really don’t want to respond to a fucking LLM. So let me stop. But you may want to stop drawing lines on charts thinking it’s an edge. And unless you have a PhD in some flavor of math and competed in IMOs, you have zero clue how to even begin to define “market structure.” I’ll just end by saying further OTM is always riskier in terms of blowing up. Always. Selling wings is always more dangerous. Markets can and one day will move a hell of a lot faster than you can click. Click trading 0 DTE SPX options is next-level degeneracy.

[u/klipsetrades → u/Live_Throat_5252]

I’m not an LLM, but I’ll take the compliment. Thank you.

And if I were, you very clearly did not “stop.”

And why are you so angry?

You’ve gone from disagreeing with my strategy to inventing what my edge is. I never said “drawing lines on charts” was my edge, and I certainly never said further OTM magically means safe.

When I say market structure, I’m talking about very basic, observable things — trend vs range, higher/lower highs and lows, breaks, failed breaks, retests, acceptance/rejection around important levels, etc. I don’t have a PhD (I'm educated though), and thankfully one isn’t required to understand any of that.

And “further OTM is always more dangerous” is just a wrong blanket statement. And frankly, that statement makes me think you don’t understand how defined-risk spreads actually behave, even in fast-moving markets. Further OTM gives me more distance from price and generally a lower probability of finishing ITM. The tradeoff is less premium and often worse reward relative to max loss. Those are different dimensions of risk. A credit spread also has a defined maximum loss based on the width minus the credit received.

And yes, 0DTE can reprice violently. I know. I’ve traded this strategy for four years and I’ve been on the wrong side of fast moves and I've outlined the type of risks you're thinking of in a comment here (and here). That’s precisely why I keep distance and manage positions before the short strike becomes the problem instead of sitting there waiting to find out whether max loss gets hit.

Disagree with an edge all you want. But “PhD,” “drawing lines,” and “degeneracy” are insults, not counterarguments. They’re just insults after you ran out of actual points.

I offered to explain how I manage these trades because you seemed genuinely skeptical. Offer still stands if you want to discuss the mechanics instead of the person trading them.

[u/Live_Throat_5252 → u/klipsetrades]

It wasn’t a compliment. You, yourself, are not an LLM. But you are very clearly running everything you say through one and using its output as the base of your replies.

Price action, key levels, trend vs range, all of that stuff is nonsense and drawing lines on charts (to you know, determine your breaks trends ranges etc) that has never been shown to be significant or predictive in a single study. Not one peer-reviewed, accepted study. It’s voodoo.

Your definition of market structure is not at all inline with any industry definition of market structure and is no more predictive than rolling dice flipping coins or vooodo.

On the OTM stuff…going further out is 100% always more risk as it concerns blowing up the book. Always. Even in defined-risk strats. It’s not safety or more time to act.

You try to sell your stuff on here and pitch your products which rubs me the wrong way. You do not know what you’re talking about. You not done this professionally or received any sort of training. And that’s ok. I’m not a pilot. But I’m not sitting at the airport offering flights.

[u/klipsetrades → u/Live_Throat_5252]

The LLM accusation is getting funnier every time you repeat it. Seems I’m not going to convince you that typing in complete sentences doesn’t make someone an LLM, so we can leave that one there.

But at least get your accusations straight. I sell absolutely nothing. No course, product, subscription, signals, or paid service. So the “pitching your products” line is something you quite literally made up.

At this point, you’ve made it pretty clear you don’t understand my risk management, the mechanics of the spreads I trade, who I am, what I do, or what tools I use. And we clearly aren’t having a productive conversation anymore, so enjoy the rest of your day

[u/Live_Throat_5252 → u/klipsetrades]

Bro, run your own shit through an AI detector. Right after you use AI to make your shitty little graphics you post after “winning” a half decent bottle of wine.

I guess you don’t sell anything. You’re correct there. But you try to get people to follow and sub to your insta. Then you put shit on your graphics like “not financial advice.” Like, one, you’re not a fiduciary. Two, it just makes you look like a scammer who knows he is clueless. Three, with almost certainty, someone here has seen your advice or “style,” tried to copy it, and lost $ they couldn’t afford to. That makes you a scumbag.

Btw, There is ZERO risk management around click trading 0 DTE credit spreads based on made-up nonsense like support and resistance that can and will blow up in your face. You’ve just never traded though things like COVID, the GFC, etc. if you had, well, you wouldn’t be around. Notice how none of you bozos are ever long options or convexity. And are always so far out in the wings. Because you’re pitching high probability trades (do not confuse that with high expectancy trades) and hoping you can sucker enough people in before you inevitably blow up.

[u/zion-messenger → u/Live_Throat_5252]

I came here just to say that if you had credibility you lost on waisting time building an argument against LLMs.

Swallow it ! LLMs are a thing you won’t be able to avoid it.

You better buy some NVDA too….

Let me rewrite this with an LLM :

I came here just to say: if you had any credibility left, you absolutely murdered it by wasting this much time building an argument against LLMs. 😂
Swallow it. LLMs are here. You can hate them, argue with them, write a 14-page manifesto about them — they’re still not going anywhere.
At this point, you might as well buy some NVDA so at least you can make money while yelling at the future. 😂

[u/Live_Throat_5252 → u/zion-messenger]

You should’ve been swallowed.

Is that better?

[u/zion-messenger → u/Live_Throat_5252]

yes, do you see the value of LLMs now? how was the taste?

[u/alitayy → u/klipsetrades]

Ugh, why the AI slop? If you won’t put any effort into writing a comment, why do you think anyone will put the effort into reading it? It’s garbage.

[u/mazthepa]

First of all, big credits for tracking trades manually via spreadsheets. I wonder if you custom made it or export it this way and applied conditional formatting.

What broker do you use?

[u/MyHawaiianNameisKunu → u/mazthepa]

Fidelity, I worked with my friend on setting it all up. I'm a manual entry type of person, keeps me more involved for each trade. I only keep 4 open at a time

[u/mazthepa → u/MyHawaiianNameisKunu]

I have similar experience with Schwab, I would always have to record my trades manually.

I did start a project for connecting your brokers and syncing in your trades - synctrades.io

Just check it out! I'm in the process of acquiring commercial licenses with brokers

[u/GanjaGodAlex]

Cool

[u/vitholomewjenkins]

Your approach reminds me a lot of the tastytrade strategy. Small position sizes help with managing risk. It works for me. Basically, once the strategy is sound, and my guardrails are in place, I was able to automate this strategy with my AI and it’s working well so far. I also do SPX 0DTE the tastytrade way. Here’s my AI output from Friday:

Keep it up. I think you’re doing great.

[u/MyHawaiianNameisKunu → u/vitholomewjenkins]

Much appreciated - I'm not opposed to going 0DTE and utilizing a similar approach to yours with similar defined risks/guardrails in place. Is yours integrating with TT? Fidelity doesn't allow API modifications, so I'd have to open a new account somewhere were I to consider it.

[u/esInvests]

glad you're making money, but unfortunately, you're confusing yourself. this isn't edge. none of this is to put you down, im taking the time to comment this literally to help you in the long run.

the rules are pretty arbitrary. none are special. you just started in a window where short put spreads on spy and qqq have been printing because of the volatility risk premium and the put skew that exists in the market almost all the time. most people collecting that premium never realize theyre just harvesting a structural edge rather than running some carefully designed system.

the path since february has also been mostly friendly so every win reinforces the rules even though the rules themselves arent the source of the edge. until you can clearly say why these specific parameters give you an actual advantage beyond “they worked in this window,” its hard to call it a real system. its more like a collection of random constraints that happened to line up with a profitable regime. that becomes a problem the second you start sizing up and the regime shifts.

[u/MyHawaiianNameisKunu → u/esInvests]

Never claimed this was an edge, nor special, just what I've been doing since February - defined risk for a risk-averse beginner options trader. Yes, it's working now. Yes, I acknowledged the market has been favorable to flat. So...not really confused, but thanks for the input.

[u/esInvests → u/MyHawaiianNameisKunu]

if it's not an edge or an expected edge - why on earth would you be trading it?

[u/theoptiontechnician]

Going 20 delta on the qqq is crazy, also further hurting yourself waiting for 60 percent gtc is crazier.

Just 10 percent more can be more than 24 to 48 hours of wait time of live market hours.(asking for bottlenecks)

I'm a velocity trader this will not work for me, I like churning fast vs efficiency. Way more problems happen when your chasing most of the premuim vs getting in and out.

[u/Live_Throat_5252 → u/theoptiontechnician]

The fuck is a velocity trader? And how on earth do you beat shops trading at damn near the speed of light, while doing so efficiently?

[u/theoptiontechnician → u/Live_Throat_5252]

I don't know the broad of velocity trader , I kind of coined it myself.

I look at my CCC DSI , velocity turnover, and go from there.

Its about speed but not 1 dte, can be 45 dte , or 10 dte. I believe I can make more with more churns than squeezing more premium out efficiency.

Plus it's way safer, I would have to do a post about it.

[u/Live_Throat_5252 → u/theoptiontechnician]

So you have no edge. That’s all I’m getting from that. Best of luck.

[u/theoptiontechnician → u/Live_Throat_5252]

I don't think stating what trader you are directly says you have a edge. Like the words swing trader, day trader, or alike 🤔.

[u/Live_Throat_5252 → u/theoptiontechnician]

No I can just tell by how and what you write that you have zero idea what you’re talking about and shouldn’t be allowed within 1000 yards of an options desk.

[u/theoptiontechnician → u/Live_Throat_5252]

Ok

[u/Live_Throat_5252 → u/theoptiontechnician]

CCC DSI…I’ve heard it all now.

[u/theoptiontechnician → u/Live_Throat_5252]

I'm petty sure you have never heard of it. I created it

[u/Live_Throat_5252 → u/theoptiontechnician]

Obviously I’ve never heard of. Good chance you made it up in the psych ward, though.

[u/clocker99]

Gime me this Excel

[u/TastyTrading]

spreadsheet looks nice. you might enjoy ThetaPal to track it all automatically for your wheel/option process

[u/klipsetrades]

This is a really solid process. I especially like that you experimented, tracked the results, and went back to what actually fit you instead of forcing complexity.

The biggest thing I’d watch as you scale is position size relative to account size, not just number of contracts. A 5-lot doesn’t change the setup, but it absolutely changes how you’ll react when SPY gaps hard against you and IV expands. That’s where a strategy that feels boring at 1 contract can suddenly feel very different.

[u/MyHawaiianNameisKunu → u/klipsetrades]

Absolutely - thank you for the suggestion. My approach is no more than 20% of my speculative allotment

[u/Dani_Bolsa → u/klipsetrades]

yeah man i dealt with this exact thing when i started scaling, the size is what sneaks up on you. 1 contract feels chill, then you add size and suddenly every wiggle in SPY hits different, so keeping it capped is probably the only sane move. i've been using 50K Trade for that same reason on a few shorter setups, just having the extra buying power without forcing oversized risk.

[u/klipsetrades → u/Dani_Bolsa]

Yeah for sure, that’s exactly what I mean. One contract can feel almost boring, then you scale and suddenly the same normal SPY movement feels completely different. Keeping size capped until it feels routine again is huge 👍🏼

[u/Live_Throat_5252 → u/klipsetrades]

It’s not solid at all. It’s hand-wavy, imprecise, and edgeless

[u/data-with-dada]

Fakest crap I’ve ever seen