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REDDIT

Pros and cons of 0dte ETFs

I have a portfolio with mostly blue chip stocks, CSX, LUV, AAPL and NVDA. I enjoy doing close to expiration options, but I’ve never used more than about 5% of my total portfolio value. While I’m at a net positive, losing a couple hundred dollars in a few minutes always hurts. Would investing a similar percentage of my portfolio into XDTE, while reinvesting dividends be sustainable? Even with the share price drop due to NAV decay, over the last year it is up 12% with dividends. Should I hold a stock like this, or buy the day before the EX date, and sell on the EX date to preserve capital from the volatility while still collecting the cash dividend?