A Profitable 0DTE Strategy & a Better Method for Managing Risk
Oct 29, 2023
Although enticing, day trading puts the odds against most traders, as highlighted in multiple Reddit posts. To thrive in this challenging arena, it's essential to approach with caution and consider smarter strategies to enhance your chances of success. Last week, Tom Preston outlined his advice to two traders who found themselves losing money day trading in the pilot episode of Money Makeover, uploaded last week.
Seasonality, especially during the months of September and October, has long been associated with potential downturns in the stock market. However, a closer look at historical data reveals a different picture. Our analysis challenges the notion of negative seasonality and explores the market's resilience.
Zero DTE (Zero Day to Expiration) options present an appealing opportunity for highly active traders. Our research piece delves into the factors contributing to the success of zero DTE trades, emphasizing the role of implied volatility rank (IVR).
Research on Delta explores the importance of risk management in options trading and presents insightful findings. It highlights the flexibility of options trading compared to traditional equity trading and offers guidance on tailoring positions for profit in any market direction.
Research suggests being slightly directionally long or short does not harm performance, emphasizing the need to choose strategies that align with individual investment goals.
Eric Villa is a YouTube specialist at tastylive.
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Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.
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