How I Maximize Short-Term Opportunities Trading Zero-Day Options

by Chris Pulver | Oct 17, 2024

>>>Join Roger Scott, Lance Ippolito, Nate Tucci, Graham Lindman, Jeffry Turnmire and myself at 1 PM ET today to discuss our expectations for GDP, a potential recession — and how we’re trading it!<<<

Zero-day options (0DTE) trading has been a game-changer in the market — and for good reason.

These short-term trades provide a fast, high-reward way to capitalize on market movements, but they also come with their own set of risks. The key to mastering 0DTE lies in recognizing when to strike, and having a solid strategy to avoid the pitfalls.

First, let’s get one thing straight…

0DTE is not for the faint of heart.

You’re dealing with options that expire at the end of the trading day, which means you have to be ready for quick moves and make decisions without hesitation. That’s why I prefer selling options rather than buying them in these situations.

Selling options in a 0DTE environment gives you the advantage of time decay — especially when the market isn’t showing a strong directional bias.

One of the biggest misconceptions about 0DTE trading is that it’s all about catching big moves. In reality, it’s often the exact opposite. Most of the time, the market churns within a range, and that’s where the real opportunity lies. Instead of trying to predict a breakout or breakdown, I focus on identifying non-directional days — days when the market is likely to stay within a set range.

That’s where tools like the Edgeful dashboard come into play.

Using data from reports like the Opening Range and Initial Balance Breakout, I can quickly assess whether we’re in for a directional day, or if the market is likely to chop around. If the data shows we’re not likely to see a significant move, that’s when I start selling options on both sides — taking advantage of time decay and locking in profits as the day progresses.

Now don’t get me wrong…

There are days when you’ll want to go directional, especially when something like a gamma squeeze signals a potential breakout. But the beauty of 0DTE is that you don’t have to wait for these opportunities to profit.

In most cases, selling options and letting time work in your favor is a much more reliable strategy.

It’s important to understand that with 0DTE, every day isn’t created equal. You don’t need to trade every single day. In fact, overtrading is one of the fastest ways to burn through capital. By focusing on high-probability setups and knowing when to step back, you can make 0DTE a consistent, profitable part of your strategy.

In summary, zero-day options trading is all about exploiting short-term inefficiencies, using data to assess market direction, and capitalizing on time decay. Whether the market is moving or staying range-bound, 0DTE offers a unique way to stack up gains without taking on unnecessary risk.

The key is knowing when to act — and when to stay patient.

I’ll see you in the markets.

Chris Pulver
Chris Pulver Trading

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