š Why Iām Done with 0DTE: The Lesson That Cost Me
Today, I bought a $566 SPY 0DTE call. SPY pushed up and even went in-the-moneyābut my contract barely moved. Hereās what I learned the hard way:
ā 1. Time Decay Eats You Alive
0DTE options lose value fast. Even if the stock moves your way, waiting too long to enter or exit can kill the trade.
ā 2. IV Crush is Real
As the day goes on or after big events, implied volatility drops, and so does your premiumāeven if the chart looks bullish.
ā 3. Not All ITM Moves Are Profitable
A strike going in-the-money doesnāt mean your option will pay. If it happens late or without momentum, theta cancels out delta gains.
ā 4. Liquidity + Spreads = Silent Killers
Wider bid-ask spreads on 0DTEs can eat your profits or exaggerate your losses, especially in low volume or late-session trades.
ā My New Rule: Stick to 1DTE
- More time = less decay pressure
- Better IV stability
- Easier to manage risk
- You can still catch momentum without bleeding out
Discipline > Dopamine.
Stick to setups. Stick to rules. Trade with edge, not hope.