Anyone done a nice calculator on 0+ dte strategy. I’m trying to approach each day with same risk. Would love to figure what is the sweet. One day or two days or stick with 0
My rule of thumb is to avoid 0 DTE after 11 AM. Theta decay rapidly worsens after that point. I usually trade 0 DTE in the AM and 1 DTE in the afternoon. You’d want to stick to ATM as volume is highest and spreads are usually a cent or two apart. The problem is that you can easily go -10 or -20% the moment SPY moves 20-30 cents in either direction. So timing your entry is absolutely key. Focus on pivot levels which is where 0 DTE profitability succeeds.
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My rule of thumb is to avoid 0 DTE after 11 AM. Theta decay rapidly worsens after that point. I usually trade 0 DTE in the AM and 1 DTE in the afternoon. You’d want to stick to ATM as volume is highest and spreads are usually a cent or two apart. The problem is that you can easily go -10 or -20% the moment SPY moves 20-30 cents in either direction. So timing your entry is absolutely key. Focus on pivot levels which is where 0 DTE profitability succeeds.