Hey, Friends, how you doing? It's Ernie here. And this is the 0DTE talk show. This is the first in a summer long experiment.
This is going to be the first in a series of live shows on 0DTE and other options strategies. And we'll get into that a little bit later, going out throughout the entire summer. So every Monday, Wednesday, and Friday, I plan on right around this time around. Sometimes it might be one, some times it might be three depending on what the market looks, but I'll try to be as consistent as possible and land on two o'clock if I can.
It's not always possible, but anyways that's the whole deal. We're going to talk about 0DTE, our way of implementing the strategy. We'll also, I'm going to start off by talking about what0DTE is and what other people are doing with the strategy. All right. So let's do that first.
Let's let's first of all, talk about the the option strategies that we'll mainly focus on here and there are two, and that is the first is, and these aren't necessarily strategies. These are situations, right? Or types of trades. There's the 0DTE on the S&P. Either the index or the futures.
I prefer the futures. Very rarely do I trade the index, but 0DTE means the very last day of expiration. And if you know anything about the options on the S&P that it has three expiring events every week, Monday, Wednesday, and Friday, where most optionable assets. Our Mo either weekly or monthly.
So they expire, once a week on a Friday, or they expire once a month, usually the third Thursday of that month. But with the the S&P we have three opportunities at this three ways, three times, three opportunities to profit. And because of the relative volatility. I actually, everything is measured against the beta of the S&P. It also means that we have a fair amount of premium available to us. And because it's the last day of expiration, it also means that rate of decay of that premium is at its peak. And so we get that three times a week.
That's awesome. So that means that we have a built-in edge three times a week, premiums, decaying super fast. And if we can take advantage of that, if we can put a strategy in place, some kind of short strike, some kind of premium collection strategy going into that last day, then we have a really good opportunity to collect premium.
And normally I'm not a day trading kind of guy. As a matter of fact, I loathe day trading. And this is in fact a day trade. Not really. It is, we can start the day before you can start five or six days before. If you want to get into this contract in general, though, we start no more than say 12 hours or 14 hours prior to the market opening.
And we may or may not take it right into the close. All depends on situations. Sometimes you have a tremendous amount of volatility it's either rising or falling and it gives you the opportunity to do everything that you need to do before the market even opens. Or sometimes you have to take it right to the end of the day and profit.
You could like some traders using this strategy, try to do multiple strategies throughout the day and try to maximize on that. But I think that kind of overtrading, isn't very efficient. And so that's the other thing that . We want to be the most efficient at making profit as possible.