I see a lot of discussions on 0DTE on Reddit. I continue to defend: 0DTE options trading is not investing; it is pure guessing (will the asset will move up? move down, stay in a range? There is no edge on these very short-term options! Hence, you define a guess and enter a bet! Sorry to say it... Your broker knows it and is happy with it!
With 0DTE, there's not enough time to adjust properly; you adjust only to repair if the market goes against). There's no edge. It is more like a coin flip (but with commissions and bid-ask spreads...).
Compare it with income trading with longer-dated options (ex, 70–90 DTE):
* The market may move in favour or against (under a certain interval) and you do not need to do anything
* You can adjust properly and the trade may recover
* Delta and Theta will work for you (especially Theta)
* One bad day doesn’t kill the trade
Well, you will not see fast profits or big fast losses. You can earn lower returns, but you will gain in the long-term. This is called consistency!
0DTE is a hype will produce you big wins. Casinos also have jackpot winners.
What matters is who survives long enough to continue in the business!
If your goal is long-term returns and consistency, avoid betting with 0DTE! Soon you will blow up your account! I know what I am describing. I blew 2 accounts before... moved to income, longer-dated options and things changed dramatically!
Who agrees with me?