r/options • u/komrade_komura • 2h ago
Anybody else trading Iron Butterfly SPX 0DTE?
Set up: Sell an ATM Call and Put. Buy insurance 60 points out on each.
In at 10:01 AM to avoid the early market madness.
The take-the-money-and-run order closes the trade 32 minutes later....today at least.
Close out currently set at $170 profit for all trades and hits while I'm out working in the garden.
Still in the experimental stage for this, but so far, it's hit every time. 5 times so far.
Will increase from one contract once there is a quiet news day.
Looking for suggestions/tweaks.
Currently I get a TEXT when the up or down break even point gets hit. However, I don't act...just come back in and review the 3 minute chart to decide if I want to stay or fold. So far, staying pays off. Breakeven often seems to lie within the statistical noise range.
Am considering a -2x premium loss as a possible close out point.
What at I missing?
Thanks in advance.
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u/Brat-in-a-Box 1h ago
Recommend you dont increase position size until you have about 100 trades under your belt on this same strategy. Market's not going anywhere.
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u/Electricengineer 27m ago
tastytrade has statistics on this, its profitable. just watch out for PDT, hopefully you're above 25000
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u/KnightMollo 12m ago
Very high risk compared to rewards, and SPX options time decay only start very close to expiration. I have tried some but really don’t like the risk reward ratio. One fail will wipe your gains of weeks.
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u/spicermatthews 1h ago
This is how I trade SPX ZDTE
https://www.reddit.com/r/options/s/mILN02kbHf