Hey friends, how are you doing? Are you here with the a zero? Do excuse me, start over again. That's what you do when you're doing a podcast and you want to be able to see the spike in the wave form. You clap. All right. Hey friends, Ernie here, , with the zero days to expiration podcast, what is zero days?, Ernie? It sounds like a horror movie.
And for some people it is. For us, it's more like a love story. Zero days to expiration refers to the options contract on the S&P. Now there are a number of different derivatives for the S&P they track it via futures, you have the SPY, you have the SPX index, et cetera.
We specifically look at the E-mini futures contract because it is the best thing to follow for doing any kind of trading on options. And that's because we have almost a 24 hour market. We have incredible volatility. We have continuity of price. All of that is just fantastic. And we can trade at any time that we want.
We don't have to wait for the cash market to open. Also there are some other hidden benefits such as tax consequences. Taxes on profits for futures are much different than they are for the SPX or equities where the first 60% of your profit happens at the capital gains rate. Of course, our illustrious president is trying to raise the capital gains rate.
So that might not be a feature anymore. So the other thing with futures, unlike stocks or, the SPX, you don't have to worry about the pattern day trader rule. If you have a very small account. So all in all the futures are really the way to go. And I know that rubs against most people that are doing the SPX or the SPY with the zero DTE.
I think most of doing the SPX because that's all they know. And for whatever reason, they think that's better because they think that it's cheaper to trade the SPX. Unfortunately, they are also the people that are trading with risk to reward ratios that almost guarantee that they're going to lose. Where we trade with an asymmetric risk to reward, where our risk is very small and our reward is potentially very large.
So, that is the primary difference between what we do and what everybody else does. Our risk reward makes it such that and combined with the fact that we have a rock solid strategy and , let me just say this, our strategy frigging blows everybody else's away.
There's no contest. You trade with zero anxiety. You put on very little risk , to make actually a great deal of reward. Now, for instance today we put on a trade that had an initial cost for a minimal size position of $52.50, with the potential to make over $1,200.
That's what I'm talking about. Asymmetric risk to reward.
Now we still have that potential for those people who have stayed in the trade, but quite frankly, most of the people that are in our group have exited the trade with anywhere from a 200 to a 500% return. Now these numbers are totally foreign to anybody else doing 0DTE strategies, people like those over at that other website. That's very similar to my website called 0dte.com. What they're doing is just total crap, quite frankly. And if you're watching this right now, I challenge you at any time, anywhere to pit my strategy against yours, because yours is crap.