I recently came across a video on youtube from a very smart man – whom I respect and have had several favorable interactions with – that made me shake my head.
But before I throw any shade on any other professional colleague, let me be the first to say that I’m no genius. My shit stinks too, and I’m sure I’m equally guilty of throwing questionable ideas or thoughts out into the metaverse from time to time. I’m human, just like everyone else.
So here’s what got me rankled.
The video had a catchy title like: “How I made fourteen hundred dollars in one day trading 0-DTE options.”
Ok. I’m interested. I like to make that kinda money each trading day. Tell me more!
The short video went on to demonstrate how this trader sold a slightly out-of-the-money naked put in $SPX options expiring that same day – a day in which SPX rallied from start to finish making the put expire worthless. This allowed the trader to keep the $1400 he collected from selling that one put contract short near the open of trading that day. That’s pure profit, baby!
Cool. Great trade!
But here’s the thing. Actually, here are several things… [Read more…]