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Hey Day Traders, join me as I explain to fellow trader Jim Scalpert (https://twitter.com/JimScalpert) how I've been using 0DTE positioning to guide my decisions intraday.
There's a lot of debate right now about whether or not 0DTE (0 Days To Expiration) Options have a material impact on intraday price action. After monitoring the action for myself for a while, I've come to the conclusion that it does have an impact on price and I've begun to incorporate 0DTE positioning into my decision making process.
Please note: These are simply my personal observations, this video does not constitute financial advice nor does it reflect the opinions of the majority. It's also worth noting that these views of mine are only valid while 0DTE volumes remain at all-time highs. I do not believe this activity is sustainable long term, but I do think it's providing meaningful clues to day traders at the moment. It's not for me to say how long this unique phenomenon will last.
The content of the video is by no means quantitative, as of right now there is quite a bit of mental math involved, but as 0DTE activity increases I believe additional tools will follow to further aid day traders. Right now, I am simply using free information given on Twitter and Time & Sales data available through most brokers. On that note, I'd like to thank https://twitter.com/rt_gamma for their public Twitter posts. All "Copyright RT Gamma" charts shown in this video belong to @rt_gamma...credit where credit is due.
Final note: I've never been a "mean reversion" trader and much of this style of trading is new to me, so I plan to update the Traderade community as I learn more or when I believe this new edge is no longer valid. Trading is a process of continuous learning and my intention with this video is simply to share what I've been learning, it's not authoritative or exhaustive. Part of our mission at Traderade is to inform other retail traders about new & modern trading approaches in order for individuals to decide which styles/strategies best suit their preferences and risk tolerances. All of the information in this video is relevant to day traders and day traders only, and even then may not be applicable to your personal day trading style.
Due to small text & video rendering limitations, this video is best viewed on a large screen.
Happy Trading,
Horse
Where is the video by mayhem which you mentioned in this?
thank you very very much for this. This is pure gold! One question on the difference between SPX and ES: you mention that it's 10 points, but that's shifting, right?
when I look at fridays close SPX is showing 3970.05 while ES is showing 3973.50 (looking at 3pm 5min candle, which is the last print on SPX). Do you check the difference once a week to get a better feeling for the difference or just always consider it to be 10p difference?