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Market Measures - May 8, 2025 - Best Times for 0 DTE Scalps

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Manage episode 481386558 series 68544
Content provided by tastylive. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by tastylive or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.
Tom and Tony examine the optimal timing for zero days-to-expiration (0DTE) option trades focusing on iron butterflies and iron condors. The data from two years of trading showed that the 9:00-9:30 AM CST time slot had the best performance and delivered 60% probability of profit with $6 average P&L on $30-wide iron flies. Research also revealed avoiding the market opening improves results, as volatility typically contracts throughout the day. Afternoon trading showed larger potential profits but carried nearly 100 gammas making it very risky. This market measure showed that the ability to quickly open and close trades is the principal advantage of the extreme liquidity in 0 DTE markets and that it payed to finish your coffee and wait at least 30 minutes before selling premium.
  continue reading

1605 episodes

Artwork
iconShare
 
Manage episode 481386558 series 68544
Content provided by tastylive. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by tastylive or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.
Tom and Tony examine the optimal timing for zero days-to-expiration (0DTE) option trades focusing on iron butterflies and iron condors. The data from two years of trading showed that the 9:00-9:30 AM CST time slot had the best performance and delivered 60% probability of profit with $6 average P&L on $30-wide iron flies. Research also revealed avoiding the market opening improves results, as volatility typically contracts throughout the day. Afternoon trading showed larger potential profits but carried nearly 100 gammas making it very risky. This market measure showed that the ability to quickly open and close trades is the principal advantage of the extreme liquidity in 0 DTE markets and that it payed to finish your coffee and wait at least 30 minutes before selling premium.
  continue reading

1605 episodes

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