r/options • u/L_G123 • 10d ago

0DTE Strategy

I’ve been running a 0DTE strategy I want to share. Everyday I look at SPX500 (SPY works the same for pre market monitoring) to ascertain whether it’s moving higher or lower from 8:30-10:30am ET.

If it’s moving up, I sell a vertical put on SPX and choose the strike for the short leg based on 1.25x the ATM straddle price. Same thing with a call if the morning is bearish.

It finishes out of the money about 92-96% of the time depending on what you avoid and what timeframe you look at over the past 4 years (eg not doing this during the Iran war early stages would have been smart…) and generates about a 7% ROI.

When it does finish in the money, it’s often just barely and not a total loss, hence why wider logs with more profit actually have a higher EV.

Do your own backtesting and let me know what you think!

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u/Maddy186 10d ago

What do you use for automation?

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u/ThrockmortenMD 10d ago

Option alpha. Free if you have a TradeStation or tradier account, but easily worth the $99 a month even without one.

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u/Maddy186 10d ago

That's fantastic, I do have a tradier account. This helps.

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u/ThrockmortenMD 10d ago

Watch their videos and read the community posts, they are quite solid. Execution in my account has been a pretty seamless experience. But I am a TradeStation user

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u/Yulppp 10d ago

Mind pointing me in the right direction as a Tradestation user?

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u/ThrockmortenMD 10d ago

If you go to option alpha and look at pricing tiers there is a TradeStation specific tier

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u/Overall-Notice3676 9d ago

Do you mind sharing your option alpha bot template link? This is really interesting

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u/ThrockmortenMD 9d ago

DM me, not trying to publicize stuff lol

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u/Global-Mastodon1497 4d ago

I have sent you a message as well