This episode explores the profitability of zero-day (0DT) trading strategies in the context of options trading. Against the backdrop of market movements (NASDAQ up 164, Russell up 25, Dow up 275), the hosts discuss their own trading experiences, with one host mentioning successful adjustments made on Tuesday. More significantly, the bulk of the episode delves into a detailed analysis of 0DT data, comparing the performance of strangles with 20 Delta legs at the market open versus 45 days to expiration. For instance, the analysis reveals that early profit-taking is key for both strategies, with significantly higher returns and lower standard deviations in the initial hours/weeks. In contrast, holding positions until expiration leads to increased risk and volatility. The hosts present data showing that 20 and 30 Delta strangles placed early in the day yield significantly higher average P&L, highlighting the importance of timing in 0DT trading. Finally, the episode promotes upcoming live events and a digital collectible related to crypto and trading education.
