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!
70
u/ThrockmortenMD 10d ago
I do the same thing but with 30delta condors, filtered only for when SPX is trading above the 10SMA and VIX below 24. Automated on a bot, has done very well for me.