This got me thinking about the potential strategy of just buying 0DTE SPY calls every morning. If just today's movement of about 0.5% got a 400% return, aren't you statistically likely to make money, since whether SPY goes up or down is basically 50/50? Why wouldn't this work? Obviously you'd only bet like 10% of your account each day so you can make it back if you're wrong.

    https://i.redd.it/rmjetktbostd1.png

    Posted by CSSfoolish1234

    43 Comments

    1. I think you’re onto something. Delete your profile and start a hedge fund. Stop sharing your strategy for free

    2. DryPriority1552 on

      It could go sideways and fuck both your calls and puts. Happened numerous times in sept

    3. Do you notice how 0DTE premiums are different every day, premiums don’t always move in such a way to get 400% on a .5% move, unless you got the most god like fill ever and sniped bottom

    4. You cracked the code. Nobody has ever thought to just buy calls at open everyday. This is guarenteed to work.

    5. dangg! You must’ve bought exactly at the daily low which was around 572.50s? and then sold at the highest which was around 577? grats!

    6. Use the prediction button on the daily thread and you’ll see how much 50/50 you are right.

    7. So you made 360% return roughly, lets just say this needs to work once every 3.5 days to break even. Most days don’t have a big inter-day gain but there are a decent amount of them over the last few months. It seems close and the losing streaks would be aweful, but IDK there may be an edge if you do this right.

    8. bro i’ve been buying 0dte calls for the past month and spy has done nothing but stay flat. it’s not worth it. quit before it’s too late

    9. I thought i could do this too. Check my post history. I did it for two days in a row and then no more

    10. Oh look, a fellow regard who assumes directional 0dtes don’t get chopped to death by theta some days enough to make this specific strategy idea or even a daily OTM strangle a guaranteed eventual total loss.

      Jump onto trends, don’t try to 0dte the market before it’s shown you it’s hand…

    11. I did the same thing. I cashed mine out when they were worth about $2600. At the maximum they would’ve been worth like 6000. I think kicking myself in the butt for not waiting but you know what 2600 is better than negative.

    12. It works until it doesn’t. Which is most of the time. With 0 DTE options you need it to move, fast or they lose value

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