0DTE Options:
0DTE stands for Zero days to expire. Every Monday through Friday, options expiring on the same day are available for trading in the Index Options (SPY, $SPX, Nasdaq). Same day expiration makes up approximately 50% of the entire Index Options Volume traded each day.
0DTE options trading has become very popular with close to 40% of the volume coming from retail participation according to an article from Bloomberg.
The $SPX Index options has a tax advantage as it falls under section 1256 of the Tax Code, which may qualify for 60% long term/40% short-term rates, even if the option is held for less than a year or closed out the same day. Please check with your tax professional for details.
In addition, cash accounts (non-Margin broker account), are not subject to pattern day trading (PDT) rules. A cash account is not limited to a number of day trades per day but can only day trade with settled funds. Please check with your broker for details.
0DTE Options - Dynamic Trend strategies and technical analysis
A uniquely different set of technical analysis and trading strategies must be employed, as the 0DTE options behave differently from weekly or monthly options.
Since the inception of 0DTE options in 2022, Dynamic Trend has been developing new studies and software tools specifically designed for 0DTE Options trading.
This seminar series teaches you how to use these new studies and software tools effectively each day for trading 0DTE Options.
Session Dates/Times (see below for full series agenda):
Coming Soon. Email us if you are interested.
Hosted By Stephen Brumbelow
Presented by Tom Joseph, President Dynamic Trend, Inc.
Dynamic Trend 0DTE Options Course
Coming Soon
Let us know if you are interested.
0DTE Seminar Series Agenda
Session 1: DT Gamma Levels
Specifically, in 0DTE options, certain price areas end up with large accumulation of calls and puts over the last 2 or 3 days of trading.
Market Hedging action at these price levels cause the underlying Index to gravitate to these levels. In addition, Gamma is usually 2 to 6 times higher on the day of expiration in 0DTE options. This super high Gamma expedites the Market Hedging action at DT Gamma Levels.
The DT Gamma Levels (software) automatically identifies (before the market opens) these high accumulation levels with substantial Gamma. This session shows how to identify these levels and establish positions in the direction of these DT Gamma Levels
Session 2: DT Options Volume Sentiment
While DT Gamma Levels identify accumulation levels with high Gamma, we still need market direction.
The DT Options Volume Sentiment measures in real time the Sentiment of Calls and PUTS across 10 strikes above and below the current price. It is calculated and updated as new Options trades come in.
This session discusses how to use the Options Volume Sentiment to determine market direction. This is an extremely useful study for 0DTE trade entries.
Session 3: Adding Underlying Index Strength and Index Options Sentiment
Since the entire 0DTE is based on the underlying Index moving to DT Gamma Levels, we have developed two new studies using the top options volume and Index weighted stocks that make up the Index.
The 1st study is an Index Options Volume Sentiment that adds up the Options Sentiment in these stocks and provides a collective view showing the Sentiment on Calls and Puts. This shows the direction of the top options volume and Index weighted stocks that make up the underlying.
The 2nd study we developed is the underlying Index Strength. Again, the strength of the top options volume and weighted stocks are combined to provide a unique analysis of their combined strength.
This seminar session discusses how to add these features to enhance trading decisions, specifically to sizing the trade.
Session 4: Advanced Trading Ideas Session (Bonus)
This session will focus on combining Fibonacci ratios and speed bumps and other commonly used studies with the Options Volume Sentiment as a stand-alone analysis.
We will also present the concept of the Largest Gamma Level for the day. The underlying Indexes tend to gravitate towards the Largest Gamma level of the day providing great trading opportunities. Identifying the Largest Gamma Level prior to the market opening allows the trader to build option positions for a specific target.
Session 5: Developing a Complete trading plan
We will develop a complete trading plan using the above concepts of 0DTE specific studies and software tools.
Session 6: Implementing Trading Plan Session during market hours
Session 7: Implementing Trading Plan Session during market hours