I’ll be live with Graham at 2:30 p.m. ET to talk all things Nvidia —
he’ll have a new trade today along with a close-out special price!
Continuing the conversation from yesterday about zero-day options (0DTE), these trades are a double-edged sword…
When they work, they can deliver quick gains. But when they don’t, they can blow up in your face — fast.
The key to navigating these trades, especially late in the day, is understanding the gamma risk. Gamma exposure ramps up as the clock ticks down, and by the time the afternoon rolls around, it’s like walking on eggshells.
The biggest challenge with 0DTE trades — especially after 2 p.m. — is the sensitivity to even the smallest price movements. I had an S&P 500 (SPY) trade the other day that perfectly highlighted this issue.
I had everything set up — bullish bias, great technicals and even some solid price action going into the final hour. But by 2 p.m., things changed fast, and the gamma risk kicked in.
In these situations, the price becomes incredibly volatile, making it hard to control the trade.
Small shifts in the underlying asset can cause wild swings in your option premium. That’s where having a stop loss is crucial. In this case, I had a $50 stop in place, which saved me from what could’ve been a $200 to $300 loss.
Sometimes, it’s not about making big gains but more about cutting your losses quickly before the trade gets out of hand.
What really caught me off guard was how quickly the trade turned from potential profit to a headache. I was in a good spot, waiting for the market to “chill” for another 20–30 minutes…
But then the price action got too sensitive. I’m glad I had that stop in place because if I hadn’t, I’d probably be sitting on a bigger debit today, rather than just taking the hit and moving on to the next trade.
That’s the thing with these zero-day trades — they can be incredibly profitable, but you have to stay disciplined. Don’t get greedy, especially late in the day when gamma exposure is sky-high.
I use stop losses, and if the trade isn’t working out, get out and live to fight another day. Sure, you might leave some money on the table…
But in the long run, protecting your capital is more important.
My advice for traders who want to mess with 0DTE options is simple: Trade small, trade smart, and respect the volatility — especially in the afternoon.
If you’re going to dive into the deep end with these short-term plays, understand that things can change in the blink of an eye. Set those stop losses, protect your downside, and don’t let a small loss turn into a big one.
At the end of the day, I closed out almost $300 in total profit on SPY, but that $50 stop on that particular trade saved me from losing a bigger chunk of my profits.
That’s the game we play — control your risk, or the market will do it for you.
I’ll see you in the markets.
Chris Pulver
Chris Pulver Trading
Follow along and join the conversation for real-time analysis, trade ideas, market insights and more!
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. A Massive Second Wave of Inflation Is Coming…
We’re standing on the brink of an economic storm unlike anything since the wild, inflationary ’70s.
Not just a ripple, but a massive tidal wave of inflation is heading our way — and it doesn’t care who sits in the White House come November.
With nearly 30 years of market experience trading stocks, options, futures, forex and cryptos, and more than 10,000 hours spent trading and teaching…
I know a thing or two. But this is different.
It’s bigger, it’s badder, and if 2020 taught us anything, it’s that we can’t afford to sit on our hands.
Inflation’s coming back with a vengeance, possibly hitting double digits again.
Meanwhile, the price of literally everything has gone up in the last few years…
And now, many Americans can barely afford to save any money at all.
But here’s where things get interesting…
I’ve made it my mission to show everyday folks how to fight the rising cost of living.
That’s why every Monday at 11:59 a.m., I aim to snag $1,000 bucks (based on a $5K starting stake).
Not through some complicated scheme, but by making ONE simple trade…
Using ONE ticker… ONCE a week.
If you want to know how I’m gearing up my portfolio for a “second wave” of inflation that could absolutely crush the middle class…
And how you might prepare using the exact same method…
You’re going to want to get your hands on my 2025 Inflation Playbook.
The profits and performance shown are not typical, we make no future earnings claims and you may lose money. The results shown are from an 11 year backtest on 550 trades. The result was a 97.1% win rate, 17% average return (winners and losers) with an average hold time of 11 days.
