Hi traders,
According to tastytrade research, selling 0DTE straddles 30 minutes before the close results in a 39% winrate with an average P&L of -190 USD for the straddle seller/writer. What are your thoughts on doing the exact opposite of selling: buy a 0DTE straddle 30min before the market close and letting it expire.
Seems to good to be true to me. You only risk the premium paid as a buyer for unlimited gains and get a high winrate as well. Am I missing something here?
Link to the research: https://www.tastylive.com/news-insights/0dte-options-opening-vs-closing-trades
TT did the study using "52 weeks worth of data".
Thanks!
Thoughts on buying 0DTE straddles 30 min before close @SPX
byu/ciscoenzo inoptions
Posted by ciscoenzo