What We Learned After 1 Year with 0-DTE
By Ernie Varitimos
March 23, 2022
0:00 / 27:16
What We Learned After 1 Year with 0-DTE

3, 2, 1.

I don't like to say live until I actually see my face inside of the YouTube studio application, but here we are, I doing French to say live until I actually see my face inside of the YouTube studio application. All right. So that means in French with Apple's new and ultra chat means. Okay. But it also costs 4,000 us dollars, which is six times more expensive than it's a younger brother.

Everything was going off at once. What the hell is going on here? All right. We've got everything under control. Now, folks, this is what happens when you're a one man operation, which soon will be remedied by the way.

Here we are. How are you doing friends? This is Ernie with the zero days to expiration podcast. This is episode number 85, man. We're closing in on 100 very, very soon. And today's episode is a very special one. Although this may not be the exact date. It is pretty close within a week or so of the one year anniversary.

Of the zero dash D T E business service extravaganza place to hang with 500 plus traders. It has been one year since I started or opened the doors or opened the, well, there were really any doors, the virtual doors of the operation, and it's been quite a ride. We have. Experienced a lot of great stuff, fantastic learning experience, both for the members, as well as myself, the development of the strategy, the asymmetric strategy that we do that is essentially 100% or 180 degrees, opposite of the way everybody else trades zero DTE.

And, that's a remarkable thing and it shows it's a Testament to the staying power of this strategy and its efficacy. So what I'd like to do is take you on a journey very, very quick. I'm not going to belabor this point or get into it and just make it, I just want to point out the high points of what we did, what we learned and where we are and where we.

So started off with just a few people that were interested in this strategy friends and those people are still with us. Can you imagine that? And we've grown steadily ever since the idea was to do something that was totally apart from the way everybody else is doing. Zero DTE. Now, first of all, what is zero DTE?

Moser DTE by itself just means the zero or last day of exploration of an options contract. Now we trade a very specific options contract with the underlying being the S and P either. E-mini S and P futures or the SPX index. So we're trading future options. I'm sorry. Options on those two things. And the reason why we do that is that there are three separate expirations every week.

In other words, there are three contracts that are running simultaneously. They start about, I don't know, I think about eight weeks prior. Maybe not that long around that. Let's say three, let's say three weeks, five weeks. I don't know, but they start a while back and they expire one on Monday, one on Wednesday and one on Friday.

If there's a holiday on Monday or Friday, then they switch that one to Tuesday or Thursday. So there's always three. Now I have it on good authority directly from the COE, the Chicago board of exchange. That is the steward of the SPX options that as of April 18th, the SPX is going to host five expiration dates Monday through Friday, as well as round the clock trading.