3 Backtested 0DTE & Earnings Trades

[@tylermullinax9713]

As someone who sponsors a little girl in Africa - I love the idea of sponsoring children with the profits. “BOOM! We just got our first child sponsor.” Love it.

[@alex_canton]

Yeah that made me chuckle haha

[@BhaskaraSG]

Wonderful gesture. Lets learn trade, win and also help underprivileged achive their dreams. Too good

[@joezip6389]

Thanks for these videos I enjoy them

[@TimurFedotov-lz5dm]

OA its just incredible service, guys. Jack and Kirk are rocks. ❤

[@sheazadjiwani7013]

Wow, Jack, you are doing great work. I have a quick question on the SPX trade are you keeping this trade till the market closes? Is it not a risk for assignment

[@OptionAlpha]

Thanks! I typically hold until expiration because SPX is cash settled so there's no risk of assignment.

[@rvadataguy4459]

@@OptionAlpha yes there is assignment. and when there is, it costs $14.95 per contract*leg at Tradestation. Jack, what are the exit strategies considering this?

[@wmrhawk]

Confused again: at 2:20 we are looking at UNP long PUT spread, but after the refresh all trades are long CALLS, which is what is ultimately traded at the 3:35 mark.

[@xacoklamon]

Might be a good idea on the earnings trades to close out 90% as soon as the trade is profitable, and let the remaining contracts ride if there is a possibility for continued momentum.

[@thatpointinlife]

Hi Jack, just a thought on those OTM earnings verticals; Since they're such low probability/high reward trades, would it make sense to ratio them heavier on the long option side, even if by just one contract? That way, you're paying close to the same in premium, but with just one long option more you could be making uncapped upside potential if you get a runner. Same would of course go for downside directional trades, or if you're really wild you could bet on Red and Black at the same time. 🤪 Thanks, and God Bless.

[@OptionAlpha]

Hi! I tend to use the short leg to reduce overall risk and increase the reward/risk ratio. The cost associated with the long leg is sometime too high to get a chance for a multiple that justifies the risk. For example, if the 100 long call is $3 and the short 102 call is $2.50, the the difference is $0.50 and on a $2 wide spread I have a chance at 300% return on risk if the underlying price closes above 102 at expiration. If I just bought the long 100 call at $3, I'd need it to close at 112 in order to get the same 300% return on risk.

[@xacoklamon]

What about 0DTE long SPX straddles with a 33% trailing stop? Seems like a good strategy lately as the market tends to move substantially in the first hour and also right before close. I like what your shirt says 🙏🏾.

[@Jo-eu9wm]

Jack, do you close out these trades prior to the expiry date? And if so, how long before a trade expires do you close it out? Thanks!

[@OptionAlpha]

I typically hold until expiration. SPX is cash settled so there's no assignment risk.