The rise of Zero Day to Expiration (0DTE) options has completely transformed the retail trading landscape, but has the market finally "squeezed the juice" out of premium harvesting? On this episode of Options Boot Camp, Mark Longo and Dan Passarelli dive deep into a "back-of-the-napkin" analysis of 0DTE SPX straddles.
They explore whether the massive influx of sellers has pushed premiums so low that it actually makes more sense to be a buyer. Plus, Dan discusses his latest book reaching the Amazon bestseller lists and tackles listener questions on tracking covered call rolls and the future of 0DTE equity options.
On this episode, we break down:
The 0DTE Shift: Are we giving away the "weekend decay" for free?
Statistical Deep Dive: A look at SPX straddle performance over the last 45 and 80 days.
Intraday vs. Close-to-Close: Why path dependency is the secret to 0DTE profitability.
The Complexity of Backtesting: Why traditional backtesting models fail in the current 0DTE environment.
The "Wheel Death Match": Managing covered calls and tracking roles effectively.
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