ngl been trading options for like 2 years now and these past few weeks have been brutal. keep getting these random ass pumps right at close that completely destroy any put positions
like yesterday had some spy puts that were looking decent all day, then boom – last 30 mins everything just rockets up for no reason. checked the news, nothing major, just algos doing their thing i guess
started keeping more cash on the sidelines but lowkey feels like you either have to be playing 0dte or you're missing all the action. but then when you do play 0dte it's basically gambling lol
anyone else noticing this pattern? feels like intraday moves are way more violent than they used to be. maybe it's just my imagination but swear the market used to be more… predictable? now it's just random spikes everywhere
thinking of switching to longer dated spreads but honestly don't want to tie up capital for weeks when things move this fast
fr just needed to vent, been a rough couple sessions
anyone else getting wrecked by these random 0dte pumps lately?
byu/Technical_Camp_4947 inoptions
Posted by Technical_Camp_4947
9 Comments
The real question is are you going to adjust your strategy to avoid or reduce the probability of getting wrecked in the future? 0dte is a dangerous game and while you may be profitable over the last 2 years, consider spreads a few days out. You might not make as much percentage wise but you will have a higher probability of profit. Cheers
I trade credit spreads and iron condors usually 3-5 dte but only holding a day or two. I can usually pick up 40% by the second day while going $12 OTM and staying pretty safe.
Just the opposite, these are the lottos I live for
I occasionally trade 0DTE, but it’s become more rare for me, especially this year. However, I follow 0DTE traders (podcasts etc) like the folks at Option Omega and I’ve noticed a lot of mentions of how 0DTE has not been very profitable this year, due to the wild swings, at least for SPX.
That being said, I’m glad I’ve eased off 0DTE lately and have mostly been making good returns selling monthly options. Don’t think I’m going back to 0DTE anytime soon…
It wasn’t random; SPY was moving in lockstep with crude oil prices all day. Then we had announcements that the G7 would release strategic oil reserves, and that Macron was sending the French navy to the Strait of Hormuz. Oil craahed, SPY mooned.
Vol is high you don’t want to be buying calls unless ur 100% right. Negative gamma enviroment. Geopolitical fears. Master pumper in charge. Take note and keep your head on a swivel
You could try avoiding the first half hour and the last hour of the trading day. That’s when weird things are happening in the back room.
You’re probably seeing the effect of **0DTE flows and dealer hedging near expiration**.
When positioning builds up intraday, dealers can end up chasing the market into the close which creates those random ramps.
Curious if anyone has looked at **intraday gamma positioning around 3-4pm** on these days.
What are you doing, holding the position all day without taking profit? Sounds like an easy solution, take profit!
This is the best environment for 0dte trading. The last hour is the best hour, biggest returns when you get these swings. Buy the cheap strangles and watch one side rip. Easy.
Uhm,
It “is” gambling