Edit day 1: QQQ dropped 2% with big gap down. Unrealized loss $1,500. Short calls went to $0. Sold 4 short calls at opening and closed within 1 hour for $300. Closed 720 put for $500 loss which basically wipped out all short call gains. Rolled 717 out 1 day at same strike for $2 credit. Rolled 715 puts out 1 day and down to 713 for $1 credit. Sold 6 short calls at 720, $10 otm at the time for $1 each. Looking for bounce tomorrow.
MU dropped from 978 to 920 at open. Sold 980 call 0dte for $2. Let it expire at $0. Wouldn't let me sell the put due to concentration. I have 2 other short puts on MU with longer dte. Wanted to sell 900 put, would have gone to $0.
My most profitable trade in the last year has been 1/0 dte on QQQ options short strangles (short calls/puts otm). Want to apply this to individual stocks, specifically MU for higher iv/premium and looking for anyone who has tried anything similar.
Current strategy: Sell short strangles just before market close (short puts and short calls). I try to sell as wide as I can with a decent premium. Then at open, I adjust by opening a few more depending on where QQQ gapped. I try to start closing by 10:30 and throughout the day. Normal day is $1k profit with a loss day about every 10 days and a bigger loss day once per month when I just misread it.
I have found it better to close everything at end of day and reset fresh next day.
Example of current trade opened Friday: QQQ closed at 725. I set short puts expiring Monday at qty 1, 720 for $1.60, qty 3, put 717 for $1.10 each and qty 2 put strike 715 for .86. For calls I set short qty 2, 732 and qty 1, 734. Total is $886 premium.
Strategy for MU: Set 0dte after open, maybe even wait until 10:30 for market direction. Mu closed at 978 Friday. Set strangle short put at $950 for $13 and short call at $1,050 for $4. It's off center as I am more comfortable rolling an itm put vs call. Total premium $17. Max profit zone $933 - $1,063. So a 45 pt to the downside and a 85 pt to the upside. I would set only 1. Probably get 80% of those premiums. Picked those strikes as there is a decent call and put walls before each.
Anyone trade like this?