Comparison of 0-DTE Alert Services
By Ernie Varitimos
December 7, 2021
0:00 / 24:54
Comparison of 0-DTE Alert Services

3, 2, 1 live man. I've got that down. Adrian friends, Ernie here. Or do I have it down? There it is. Let's start over again. Three, two, Nope. Wrong finger. 3, 2, 1 life. How are you doing friends Ernie here? And this is the zero dash DTE podcast. That's zero days to expiration. That's right. What we do is we trade options on the S and P on the very last day of expiration.

This is episode number 63, and today we're going to do a comparison. Zero DTE strategies and services and how we are different from everybody else. In fact, we are so different that one might even say that we are the exact opposite of every other zero D T E online service that's out there. Now, first of all, what is this all about?

What it's all about is what most traders are looking for. And that is a true edge, a way to trade the markets, where they feel like they have the upper hand, that they're going to make profit, that they're going to grow their account and trading particularly day trading is so elusive for, so for so many people, we all have heard the statistic.

Upwards of 90, 95%, some even say 98%. In fact, there is a study of over 350,000 traders day traders that definitively show long-term study that 98% of all day traders eventually lose money. Why do people keep on coming back, looking for what they think is that holy grail of trading. There's technical analysis.

This Elliott wave is Fibonacci. This price action. There are candlesticks and all of these different strategies you can use these indicators, Mac D RSI stochastic. It goes on and on moving averages. You just can build up your chart until it is so

What's the best work polluted. With indicators thinking that you now have the world by its balls, you are the trader extraordinary with all this power yet you still lose. So along comes this. Relatively obscure, a strategy called zero DTE playing on a very specific event that happens in all options contracts.

And that is the very last day of an options contract with something very special happens. That is the day where premium completely decays. So all the extrinsic value of an option gets depleted. And disappears. And you only have, if there is any intrinsic value or no value in that option left. Now that is a very important day for options traders.

It is very important for people that go long on options, because they're always fighting against that day because that day is decreasing the value of their option. And they're trying to race against time to hopefully there. Contract its price will reach its objective. Prior to that day. Coming now, on the other hand, there are sellers of options.

They are on the exact opposite side. They are what we call feta positive time is on their side TA uh, um, it's on my side. I am not a singer, sorry for butchering that fantastic song by the rolling stones. But the option seller has been shown to be from a efficacy point of view from the, from their strategy point of view, the trader or the entity that will win more often than the long strategy.

And options in general, give you way more flexibility in how you can develop strategies and using these properties of options, the premium decay, feta, and all the Greeks, all of that stuff are complex to some degree. And for that reason out of. Or perhaps not as accessible to most day traders who want simplicity.