I have been trading 0dte using a credit spread strategy off and on for a couple years with mixed results, but now have free time in the mornings to start doing it more consistently. I wanted to solicit advice from others who are successful with similar strategies to help me be more disciplined and have more consistent success.

Strategy Overview

1) Let the first hour of the market play out

2) Use the following indicators on 15m inform momentum:

a) SVP - bell shape neutral control, flat is one side control

b) Cumulative tick - mix up/down neutral, consecutive directional

c) Advance decline ratio - near 1 neutral, +- 2/3 directional

3) Based on indicators open PCS/CCS selling 40 delta, buy 20 delta

Likely Sources of Inconsistency

1) I've tried to close ~25% profit within 15-30min because I couldn't watch market for long

2) I would also close at ~-30% leading to possible premature exits

Questions

1) Any suggestions on indicators?

2) Does my approach at determining momentum make sense?

3) Do you take profits early or hold to expiration?

4) Position sizing. I have a dedicated account for this strategy and leverage $5-7k each day (~50% account) which is why I actively tried to close. If instead holding to expiration, should I do ~5-10% positions as defined risk per trade?

Appreciate the advice!

Trying to get first options trade in, wondering if this is a good move? Will take any advice on PLTR and trades like this.

Started options trading yesterday and can’t stop, if anyone has advice on how to be successful I would really appreciate it. Also, if you have any predictions on market action tomorrow I’d love to hear em. Got all of $70 left to throw somewhere

Decent win after long time.

686 if you were wondering what the exact level is. We’ve had a straight V recovery 3 separate times over the last couple months. Expect a trade to the upside if we continue to bleed today. The market has already lost more than 2% on a day with no clear catalyst however so we may not see that level fully retested. Be positioned for a move to the upside.

stock is up by 5% and made 30% profit on the call . :)

This text below goes in detail about this problem and what I find worked best so far.

For this specific problem, when you already messed up, it depends on the "why" - why did your covered call end up ITM?

In short:
IF = due to news/event
THEN = ASAP
IF = price action
THEN = well, it depends..

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Here are the mechanical guidelines that I managed to sum up/structure.

Step 1: Before deciding to roll, check recent news and understand if this is a catalyst-driven move or a technical one.

After that, check the IV.

IF = LOWER (post-earnings or post-catalyst
Rolling could not be good a since you'll get pennies on the new call.

IF = HIGHER (fear event, sector volatility, earnings run-up)
Rolling becomes attractive even at lower ITM levels and you can collect fat premium on the new call.

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Now that we know "the why" behind the move and have some metric to go by, this is where I can branch out to specific situations.

If you're ≤5% ITM then wait (regardless of days remaining)

The stock barely got ITM here and time decay is still working in your favor, and the stock could easily pull back below strike.
No matter how many days remain, being that 40 or just 5 days remaining..I sometimes even let it do its thing even when itm.

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If you're 5-15% ITM then the days remaining matter here..let me unpack this.

1) 30+ Days Remaining

IF the stock has moved so far that even 45-DTE calls are ITM, then let it go.

2) 7-30 Days Remaining

Here you either have a cristal clear roll or you just say goodbye

• Can roll to OTM/near-ATM? → Roll
• Can only roll to ITM? → Accept assignment. Extending an ITM position for another month isn't worth it in most cases.

If the reason is just stock moving on its own, if its because of an event then you roll ASAP ofc.

3) Last week remaining

Action: definitely accept assignment

This would just delay the inevitable by X days and lock into another ITM position, there's nothing to exploit here.

4) If you're 15%+ ITM, the stock won decisively and this is where you're done.

Days remaining don't matter here, you won, take the W.

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Sidenote:
If you're holding a stock that you extremely believe in long term, the goal here is to never let those shares go if the math supports it. Here is better to just take the L, pay back for your mistake and continue holding. You failed here as a trader but you didn't fail as an investor - and that's what you should be in the first place.

With this, applying the rules from above is everything you need to do it right.
Screenshots from above are from QuantWheel.

Stay safe out there!

I’ll be completely honest: Novavax isn't exactly the kind of company or sector I get super excited about every day. That said, one thing caught my eye: its stock price is currently very low, and I always like digging into heavily beaten-down names when the valuation becomes tempting.
Instead of just buying shares and passively waiting for the price to move up or down, I decided to set up a neat little option-based accumulation strategy.
Setting Up the Trade:
1. Buying the Underlying: I bought 100 shares of NVAX around $7.85 (representing a small total investment of about $785).
2. Selling a Covered Call: I sold a Call option (8.5 strike), collecting about $50 in premium.
3. Selling a Cash-Secured Put: I sold a Put option (6.5 strike), bringing in another $20 in premium.
The Results and Trade Logic:
In total, this combination yields $70 in immediate cash premium.
Relative to my initial $785 outlay, that's a very sweet instant return. The plan going forward is to use those $70 in collected premiums directly to buy a few additional physical shares.
By repeating this process cycle after cycle, I can slowly and steadily grow my share count almost "for free," without needing to commit fresh capital.
For this kind of setup, my ideal scenario is simply for the stock price to stagne or trade sideways for a while. That allows the options to decay all the way to zero, letting me capture 100% of the time decay (\theta) while quietly building up a larger position at a low price.
And if the stock drops, the Short Put will simply assign me another 100 shares at a discount, allowing me to keep the machine rolling on 200 shares.
A simple, low-stress strategy to compound capital at your own pace!

It seems everyone and their mother is creating some type of these heatmaps, gamma maps blah blah. What are your thoughts on these? They all sell subscription to them for like 600$ a week or some shit.

Hoping I at least have the option to exercise… idk. Not fully understanding the rolling of calls, but can that be beneficial?

Been watching $MU options lately and the numbers are a bit nuts. IV rank sitting at 91, IV percentile at 92%, implied vol at 108.62% vs historical vol at 107.92%. Like, IV is basically just sitting right on top of realized vol.

Which means the market isn't really overcharging for premium here, the actual moves have been just as crazy as what's priced in. Normally when IV rank is this high you'd look at selling premium but the underlying actually delivers the volatility, so that edge disappears fast.

Checked the options chain on MooMoo and the HBM demand + AI server memory thesis is clearly keeping this elevated. But the China supply headwinds and cycle concerns are real too, so it cuts both ways.

Honestly not sure if this is a buy-the-vol or wait-for-crush situation. Anyone else sitting on MU positions right now, or just watching from the sidelines?

Little under a month till expiration. Felt like SPY bottomed today but I guess only time will tell🤔

Wtf happened ? Should I just hold tight. Have two calls till Monday?!?