How To Profit with 0-DTE at All Time Highs
By Ernie Varitimos
November 22, 2021
0:00 / 24:01
How To Profit with 0-DTE at All Time Highs

3, 2, 1 we alive, but I'm not ready.

Had some natural peanut butter. It stuck in my throat. All right. Are you doing friends? And it is Monday. This is a Thanksgiving day, week. It is Monday the 22nd. Oh, I can hear much better now, Monday the 22nd. And it is one of only two zero DTE days. This week as zero DTE is off for thanks.

That's good needs, arrest needs, arrest to see whether or not these all time highs are real or not. Man, we hit another all-time high today. It's just one after the other. It seems like every day is an all time high. And let me tell you if you were expecting it, if you thought for a moment that this could just keep on going, if you didn't have doubt.

Then it would be a very simple matter of just going long every single time. However, every day is different. Every day you're presented with various catalysts in the market, various events, disruptors. All kinds of things that could send the market going anywhere and trying to figure out just how the market is going to react to any one of these things is really, and almost like an art form or maybe it's a Swami realm, right?

You need to be in the realm of Karnak the magnificent, I don't know if you get that reference, but if you're my age, did you do that? Was Johnny Carson doing his act, mind reading ed McMahon anyways,

I don't have a crystal ball, neither do you. And we don't know for sure that the market is going to be going up that day, even though it's been going up almost every day. I guess you could say that, the odds on favorite are that it will go up. However, how much it will go up as equally as important as to what direction that it goes in, particularly when you're selling premium, because when you're selling premium, you're selecting an area where you think that the market is going to settle on where you can collect that premium.

And really the only thing that we have to go by in terms of definitive areas where we think the market might settle. I guess from a technical point of view from an analytical point of view is where the market has been before. So for instance, we use volume profile volume profile is volume at price.

It's the sideways bars that come out and we'll show you the level of activity of trading at various price levels. So. Are very good view of what the actual activity and where demand is and where demand is not in the market. We know that when you have a very large volume node price, when it encounters one of these nodes from past, it will tend to hang out there because for whatever reason, the market has found affinity towards that level, it likes that level.

It is comfortable there. Why nobody knows, well, maybe some people know, but it's not. So you can put a strategy on that, where you're going to collect premium and with reasonable expectation, that price will go to one of these nodes and hang out there for awhile. And time is really what you need when you're talking about collecting premium time, volatility, Delta, et cetera.

If the Delta has made up its mind and says, Hey, I'm going there. I'm going to.