0DTE Options Trading Explained With Examples

0DTE options have exploded in popularity. In this video, we'll explore 0DTE options trading with specific examples to learn about the opportunities and risks of this fast-paced trading style.

==== Chapters ====
0:00 Intro
0:27 What Are 0DTE Options?
0:53 Why Are 0DTE Options So Popular?
4:00 0DTE Trade Examples
6:59 Fighting Time Decay
8:29 Trade Management Tips
13:19 Risks Involved

=== Recommended Videos ===

===== Summary =====

In this video, we'll walk through the world of 0DTE options trading, specifically:

What is 0DTE options trading?
Why is this type of trading so popular?
What are the benefits and risks of trading 0DTE options?

We'll then walk through numerous trade examples where I plot the SPY price vs. 0DTE calls and puts so you can clearly see how these short-term options behave.

=======
Disclaimer: Nothing contained in our content constitutes a solicitation, recommendation, promotion, or endorsement of any particular security, other investment product, transaction, or investment. Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involve substantial risk of loss and are not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time. Past performance is not necessarily indicative of future results. I am not a financial advisor. The ideas presented in this video are for entertainment purposes only. You (and only you) are responsible for the financial decisions that you make.

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#OptionsTrading #0DTE

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[projectfinance]

NOTE: I forgot to mention the implications of day trading with 0 DTE options. Since positions are opened and closed the same day, you will rack up the day trade counter in a margin account with less than $25, 000. If you do more than 3 day trades in a rolling 5 trading day period, your account will be flagged as a pattern day trader (PDT) and set to closing only. So 0DTE trading in a margin account with less than $25K has limitations.


Enjoyed this video? Let me know what you would like to see next!

Chris

[oeboeloe]

Trading 0DTE on SPX is like a rodeo ride. I've had both great profits and devastating losses trading these.. It's a very tough mental game indeed.
Good explanation video!

[leonth]

Glad to see you again Chris. I learned option trading from your serials of couses as beginner years ago. Your videos are still the best in Youtube. No one else's is even close.

[abdulsisiwa]

I have played with 0DTE. Yes, they are cheap, but very volatile. I have watched my positions go to zero/expire worthless before my bespectacled eyes. Do you set a mental stop, or a physical stop? I have many people advise just setting a mental stop. With a physical stop, market markers will wipe you out clean

[jamesfacada]

Great explanation of 0DTE options Chris! I have made money but have lost more than I made using 0DTE options. It is much more stressful than multiple week options that can swing but it seems everything is a gamble in stocks these days

[JonesLarryG]

GREAT JOB explaining ODTE Options, my brother. I really appreciate it.

[aymanyusif]

Missed your videos brother. Thank you and welcome back

[mikecook]

Chris, please make an ODTE options course with two strategies: one for buying calls and one for buying puts.

[eddiejimenez]

Excellent video - the only part that seem weak is the explanation of how the losses can occur in using ODTE Call or Put - beside that Chris - you have an excellent way of giving your knowledge to and explanation options to others

[philochristos]

I"ve only done this maybe three times. Each time, my hand was shaking so much as I pushed the buttons to make the trades that I almost physically couldn't do it. It makes me think I'm not cut out for it.

[ireenvletuli]

Would it be better to do a straddle or strangle then? Will it minimize the risks?

[marztrades]

OMG love this video. The best ODTE explanation. I always enjoyed your videos and learned a lot about options trading from you. Thank you!

[JVerstry]

0DTE iron condors with 95% OTM puts work very well for me...

[romanmasiar]

Your way of explaining stuff is simply astounding :) Thanks.

[dipakgupta]

Thank you for wonderful explanation about 0DTE Option 👍

[consipicy]

very good information here, i really appreciate all your videos. thank you man

[whydotheathensrage]

Good presentation as always, have you played with 0dte credit spreads ?

[elsanto]

Best way to learn is to paper trade $SPY. Buy one call and one put throughout the day.🍻

[huplim]

I've been waiting for this!
Thank you!

[knoppsbrothers]

Will you have to maintain a 25k account to avoid the day trading penalty?