Behind the art deco buildings and designer suits lies an insatiable appetite for more…
…more… more profit… more risk… more opportunities…
…where the Ivy League elite gather and strategize ways to relieve investors of their hard-earned savings.
Source: Midjourney
In the days of Joseph Kennedy, they’d sell watered-down stocks at inflated prices.
Bernie Madoff conned investors for decades with his elaborate Ponzi scheme.
Investors fought back, demanding commission-free trades, transparency and better order execution.
We made the game harder.
If Wall Street wanted to keep fleecing folks, they needed a way to trick the average Joe into taking unnecessary risks.
The pandemic and subsequent bull run drew more retail traders into the options market than ever before.
News of overnight millionaires like Reddit’s Roaring Kitty popularized options trading.
Why plop down $10,000 when you could get the same leverage with $500 worth of options?
It’s all about LEVERAGE.
And that’s what sparked their newest innovation — 0 Days to Expiration (0DTE) options.
It could be their greatest gift…
… but it could be YOUR greatest opportunity.
Here’s why.
Heads I Win…
To understand how Wall Street stacked the deck against the average investor, we need to understand a few option basics.
Options are contracts to buy or sell an asset at a specific (strike) price until a particular time (expiration).
An option has extrinsic (time) value and intrinsic (moneyness) value.
Intrinsic value is the value of an options contract if you execute it right then and there, and then immediately close the position.
For example, if you bought a call option (the right to buy shares) on the SPY at a strike price of $400, and the SPY trades at $410, you could do the following:
- Exercise the call option and buy the SPY at $400
- Turn around and sell those shares at $410
- This makes your intrinsic value $410 – $400 = $10
Intrinsic value only applies when a stock’s price is above the call’s strike price or below a put’s strike price.
What we want to focus on is extrinsic value.
Extrinsic value is the price of an option unrelated to intrinsic value, also known as the premium.
A call option with a strike price above the stock’s current price or a put option with a strike price below the stock’s current price is “Out-of-the-Money.”
Out-of-the-money options have only extrinsic value and no intrinsic value.
The further an option is out-of-the-money, the cheaper it is.
You can think of extrinsic value as the “time” value of an option. At expiration, extrinsic value is worth zero.
Options with more time until expiration cost more than those near expiration. The value of “time” declines exponentially, as shown below:
The line almost goes vertical at the far right of the graph. That’s where we find 0DTE options.
Options with zero days to expiration expire at the close of that trading session.
That’s why most traders end up losing when they buy 0DTE options.
They buy out-of-the-money 0DTE options because they’re cheaper, hoping to score big. Instead, they lose to time decay.
Here’s an example.
Let’s say you bought a SPY $430 call option 0DTE at the open of the trading day.
The SPY opened the day at $425.
The option you bought cost $2.00.
Since the SPY’s price is below the call option strike price, there is no intrinsic value, only extrinsic value — in this case, $2.00 worth.
That $2.00 will evaporate by the close.
So, if you want to buy these options, you need to be right and be right quickly.
Tails You Lose…
Well, if buying 0DTE options is a losing proposition, why not sell them?
That’s equally as dangerous and requires a TON of capital.
Selling just one SPY contract requires $40,000 without margin and $10,000 with margin.
Plus, if you want to sell 0DTE options effectively, you need to watch and manage your positions constantly.
Otherwise, you could get blown out by an unexpected market move.
Selling 0DTE options is a trading strategy best left to market makers and well-funded traders.
Use a Double-Sided Coin
So, if we can’t buy or sell 0DTE options, how can we possibly use them to make money?
0DTE options have injected incredible amounts of volatility into the stock market.
The more retail traders play these options, the more stock prices swing up and down.
That’s something we can take advantage of.
And we’ve got just the thing…
Before we reveal how, let us ask you a question…
Do you win 97.4% of your trades?
More importantly, would you like to learn how?
Nothing in life is guaranteed.
But when you can achieve win rates like this, there’s a good chance your life could change forever.
Now, most people would assume these types of gains would require a lot of luck.
Hugh Grossman and Dan Ahrens do it trading only one instrument — the SPY.
A lot of index traders threw up their hands when 0DTEs hit the playing field.
How could they possibly beat the choppy markets?
Hugh and Dan saw OPPORTUNITY.
They knew there was no better time to trade SPY options than RIGHT NOW.
But rather than play Wall Street’s game, they turned the tables, using their proprietary strategy to score some of their biggest wins to date.
Best of all, they do it LIVE for anyone to see.
Look, maybe their style of trading isn’t for you.
Making this kind of money is hard.
But with a 30-day test run, you have no reason not to try.
