0 DTE SPX Trading Challenge

| Trading | 3 seen

I've been trading options since March 2019, I have been trading verticals since September 2019. Option trading is not easy, it can hurt. Money can be made and more money can be lost - been there seen that.

In my short options trader career I have tried naked puts, covered calls, futures, indexes - a lot has been learned and a lot is still to be learned. I prefer learning through practice, and that's how 0 DTE SPX Trading Challenge was born.

I like 0 DTE over longer-term options - money is made (or lost) during the trading day, less time in the trade, less stress. Actually the potential return in day trades are much higher than in those with longer-term (take 7 DTE, 45 DTE and so on)

Challenge starts just a day before Christmas on December 23, 2019, to make me accountable a separate FB group - 0 DTE SPX Traders has been created. 

Rules are simple

  • Trade for one year or till the end of 2020
  • Enter trade every Monday, Wednesday, Friday
  • Start capital: $500

Idea trading with such small capital is as follows - $500 equals the minimum spread width of $5. Once there is enough premium collected to widen wings by another $5 it shall be done or lot size should be increased to two.

Now there are some additional rules I'm looking to implement before entering each trade:

  • when constructing calls add +0.8-1% reserve from the futures price on that day

For every trade, I'm looking to collect at least $30 (after commissions), as of writing this I'm paying $2.4 per leg, $4.8 for vertical. In an ideal scenario, it would take about 5 weeks to increase buying power by $500, but time will show.

I might use futures to hedge any suffering positions

What am I expecting at the end of this challenge

  • Huge learning and good knowledge
  • $1,000-$5,000 in profit
  • up to 150 trading days
  • Grow FB group to ~ 250 active members

Now, the challenge is on. Especially for this challenge and not only I have launched a FB group 0 DTE SPX Traders - come and join to see the journey live and not only.