I've been messing around with credit spreads and recently had a significant loss of most of the money I had put out for options trading, not a huge amount, about $500 since I'm testing the waters. For context I didn't check when the INTC earnings call would take place and I sold a contract for the Friday after…. Yes, I'm an idiot.
Yesterday I made another mistake… That went surprisingly well.
What I've been trying is to sell spreads for about a 10% of the spread with the intention of closing at 50% gains. The spreads are opened at about 1 standard deviation (.16 delta) and I opened one yesterday without realizing I had set it up for expiration today… I closed it almost at market open. And then I did one again today closing tomorrow.
First, I know I need to pay more attention to what the fuck I'm doing 😂
Second, did I just got lucky, it is not like I'm doing this on meme stocks unless QQQ is considered memey which I doubt, but seeing that I can meet my goal on a daily rather than monthly basis, is there a reason I should be wary about 1dte?
1dte vs 30dte for credit spreads?
byu/AmrasVardamir inoptions
Posted by AmrasVardamir
3 Comments
Keep doing 1 dte , the market is the greatest teacher.
You’re not alone bro. It’s easy to overlook details like earnings dates when you’re focused on the strategy. The 1DTE plays can work out well, but they carry more risk due to the lack of time cushion. While 30DTE gives more room for adjustments, it also ties up your capital longer. If you’re comfortable with the faster pace and can manage the risk, shorter expirations can be profitable, but just keep in mind the increased volatility risk. Maybe try a mix of both to see what suits your style better?
No one right answer. First I would start by checking and then double checking, and then triple checking your order ticket before hitting that send button. You probably made $ (luck) overnight on the 1dte just from the lack of price movement combined with the massive theta decay.