Sub Martingale – Earn Daily Profits From 0DTE Options
Trade with Confidence: Backtested Strategy
“Zero-days to expiry (0DTE) options now make up the majority of trading volume on the CBOE. Find out how you can profit from the popularity of these options while reducing market risk!”
This e-book shows a 0DTE S&P 500 Index options day trading strategy with a 40% annualized return and only a 14% drawdown. There is no overnight and weekend risk in this strategy. This is an options income strategy.
Only buy trading books that are backtested: This one is rigorously backtested!
You may have noticed that many trading books lack proper backtesting because the data is expensive and complex to analyze. This book is different. It’s rigorously backtested using intraday options data available since the inception of 0DTE options. I also ensure that the trading strategy is consistent with findings in independently done academic literature on 0DTE options. This is an important step of a well-formed strategy. In fact, the strategy was motivated by recent academic findings.
What You’ll Learn In Earn Daily Profits From 0DTE Options
- Consistent Income without Overnight Risk: A key element of this strategy is its capacity to deliver steady returns without subjecting your investments to the wild swings of overnight market changes. It has a 70% hit rate with a return/risk ration of 2.8. This strategy is backtested!!! My backtesting, which leverages real intraday options data, underscores the reliability and stability of this approach.
- Impressive Financial Performance: With just a 10% allocation of your capital, this strategy has demonstrated an impressive 40% annualized return. It maintains a robust return/drawdown ratio of 2.8, with a maximum drawdown of only 14-15%. This performance showcases the strategy’s efficiency in maximizing returns while controlling risk, making it an excellent choice for those looking to grow their investments significantly without substantial downturns. This may seem unbelievable but it is not unusual for a new product or volatility risk premium strategies. For example, bitcoin has realized over 100% return since inception and the product is more than 10-years old. This return opportunity exist because the 0dte options market is new and is therefore still inefficient.
- Negative and low Correlation to S&P 500: This strategy doesn’t just play defense—it actively contributes to your portfolio’s strength. Unlike bonds, which have recently shown a positive correlation with the S&P 500, this strategy serves as a true diversifier. It’s negatively correlated with the S&P 500 because we trade 0dte S&P 500 options. This provides a true hedge to buy and hold S&P 500 portfolio. It not only reduces risk but can actually boost your compounded returns. When the broader market struggles, this strategy can thrive, balancing out your portfolio’s performance and smoothing out returns over time. This balance allows for more stable growth of your investments, as gains made during market downturns can compound positively, providing a buffer against losses elsewhere in your portfolio.
- Exploiting Market Inefficiencies: Jump into the quirky world of 0DTE options trading, where market inefficiencies ripe for the picking await. Supported by solid academic research, this book explains why these opportunities exist and how to capitalize on them. You’ll also discover why zero-day options are the most significant financial phenomenon of our time, reshaping how traders engage with markets.
- Robust Risk Management: Profits are just part of the equation—protecting those profits is crucial. This book emphasizes advanced risk management techniques that teach you to meticulously structure your trades. You’ll learn to maximize gains and minimize potential losses, striking the essential balance required for sustained trading success. The risk-management layer that is introduced in this book increases returns from 40% annualized to 55% annualized, without material changes in drawdown risk. The risk-management layer will be insightful for not just strategy but all your other trading.
- Real-World Insights and Practical Applications: Through real examples and detailed case study, this book brings the theoretical aspects of the trading strategies to life. This practical application helps bridge the gap between understanding a strategy and successfully implementing it in the market. I take into account transaction cost.
- Comprehensive Learning Resources: Beyond the core content, this book links to additional resources and readings, enriching your learning journey and providing you with a well-rounded understanding of the topics discussed.
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