The math that turns 25 cents into 70 cents

Most traders think 0DTE is gambling.

I think it's math. Especially as we head into year-end when thin volumes amplify every move.

During Tuesday's live presentation, I bought QQQ puts for 25 cents each.

Not because I was bearish. Because the risk/reward calculation was irresistible.

THE SETUP:

Maximum loss: 25 cents per contract
Expected move suggested $1 potential movement
Potential gain: 45+ cents per contract
Risk/reward ratio: Nearly 2:1

"Why wouldn't you do that trade?"

And here's the kicker: end-of-year positioning makes these setups even more explosive. When volumes thin out, the same gamma effects create more violent moves.

While everyone else worries about direction, I focus on systematic edge:

Start with the assumption you'll only be right 50% of the time. Then find setups where being wrong costs you 20 cents and being right makes you 40+ cents.

Wrong three times in a row? You lose 60 cents.
Right twice? You make 80+ cents.

This isn't some hindsight bs…

CBOE research shows exactly how expected move calculations work in compressed timeframes. European Central Bank data confirms the systematic patterns in 0DTE hedging flows.

I just spent 90 minutes proving this with live trades, real money, actual framework.

Watch the complete mathematical demonstration

Because while others take the week off, positioning effects get more pronounced.

And in 0DTE, guessing kills you faster when volumes are thin.

To your success,

Don Kaufman

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The math that turns 25 cents into 70 cents

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