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Wednesday, October 8th
“We’re so engaged in doing things to achieve purposes of outer value that we forget the inner value, the rapture that is associated with being alive, is what it is all about.”
– Joseph Campbell
Major Market Events
- Markets Surge, Gold Rallies — Markets are up as traders wait for the Fed’s meeting minutes
- Traders seek shelter from the dollar — Investors are pouring billions into alternative assets like Bitcoin and precious metals, sending them surging
- Comey pleads not guilty — The former FBI director pleads not guilty in his first appearance in what many are calling a bizarre court case
🤔 My Thoughts
My 0DTE NDX Twist
(and why I do it late in the day)
I’ve been selling late-day vertical spreads on NDX because:
- Premium is richer than SPY for a similar delta (the probability slice).
- European-style settlement (no early assignment risk).
- I run it near the close (around 3:45 p.m. ET) so the tape has already told most of the day’s story.
My Checklist You Can Copy:
- Direction first. If the index is holding up, I sell a put spread below price (or a call spread above if it’s weak).
- Delta ≈ 20 on the short strike (about 80% chance to expire OTM).
- Defined distance. Use a $5 or $10 width you’re comfortable with.
- Credit makes sense. If the credit is too skinny for the risk, skip it.
- Mechanical exit. Good-to-close near 50% profit. If we don’t get it into the close, I let the clock do the work — it’s 0DTE.
- Size tiny. Think in max-loss dollars and keep it small enough that the worst case wouldn’t shake you.
Example:
- Sell NDX 20-delta put, buy the next strike lower (same day).
- If the spread is $10 wide and pays $1.70 credit, your max loss is $8.30.
- If it decays to ~$0.85, I’ll often close and move on.
When I pass
- Credit too thin for the risk.
- Price sloppy/choppy — can’t hold an intraday level.
- Spreads too wide to trade safely (slippage, poor fills).
We’re back at it RIGHT NOW with more repeatable trade ideas:
👉 Click here to watch the on-demand replay!
To Better Trading,
Alex Reid
