Don here...
I traded my first-ever zero DTE butterfly this morning.
Paid 43 cents. Sold it for two dollars. Five minutes of work.
That's roughly a 365% return before my coffee got cold.
Here's the thing: Nobody has ever traded a Friday-to-Monday expiration butterfly before.
We now have Monday, Wednesday, and Friday expirations on SPX. The door just opened to an entirely new strategy.
In today's Live Trading Room session replay, you'll see:
- Why I centered the butterfly at the lower edge of expected move. The expected move calculation gave me my target. I positioned at 415 when the math said 412. Close enough. He shoots, he scores.
- The gamma risk so severe Google removed Wednesday expiration. Google reports Wednesday after the bell. The exchanges pulled the Wednesday expiration entirely. That's how dangerous same-day gamma exposure has become around earnings.
- Why zero DTE edge lives on the buy side, not sell side. Selling iron condors in zero DTE has zero expected return. Statistically, the advantage comes from buying options, not selling them. Most traders have this backwards.
- The overnight carnage that cycled through a full month of range. S&P futures hit 6864 overnight. That's 100 points down. Then rebounded 80 handles. The entire 6850-6950 range we've been stuck in for months got compressed into one session.
The metals spilled into indices overnight for the first time. Gold moved a thousand dollars in two days. Silver dropped 5% in minutes this morning. When metals create systemic risk, the S&P gets dragged along for the ride.
I'm watching Amazon puts for the next zero DTE shot. If Nvidia stays down 2% and drags the market lower, Amazon gets pulled in. The 240 puts cost 80 cents. Low probability, but the logic fits today's rotation.
→ Watch the complete session showing the zero DTE butterfly execution, Google gamma warning, and why metals volatility is creating systemic risk
To your success,
Don Kaufman
Chief Market Strategist, TheoTRADE
I just turned 43 cents into two bucks in five minutes. But that trade only works if you understand how volatility behaves.
The zero DTE butterfly wasn't a gamble. It was math — expected move, gamma positioning, volatility structure. Without that foundation, you're just guessing on direction and hoping.
My VIX Volatility Mega-Bundle is 97 masterclasses on the volatility mechanics behind trades like this. Expected move. IV crush. VIX signals. The stuff that turns 43-cent lotto tickets into repeatable setups.
$297. Lifetime access.
👉 LEARN WHAT MAKES TRADES LIKE THIS WORK
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