Zero DTE Put Spreads Win 90% of the Time. Here's What the 10% Looks Like.

Options trading research with Tony and Nick Battista: examine how entry timing, profit target selection, and spread width affect max drawdown in 0DTE SPX at-the-money put spreads over a two-and-a-half year data set. Explore how four to five consecutive losing occurrences represent a realistic worst-case scenario, why higher profit targets increase drawdown exposure, and what conditions most commonly cause these strategies to underperform on tastylive's Market Measures, sponsored by Cboe. Helpful links: tastylive: https://www.tastylive.com/ FREE tasytlive Newsletters: https://info.tastylive.com/newsletters FREE Options Strategy Guide: https://tinyurl.com/bp9ms763 Follow tastylive on X (Twitter): https://x.com/tastyliveshow CHAPTERS: 00:00 Introduction and Study Overview 00:47 At-the-Money Put Spread Parameters and Data Set 01:27 Understanding Max Drawdown as a Cumulative Metric 02:05 Results at 10% Profit Target: Max Drawdown Context 03:00 Why Thursday Appears as the Worst Day in the Data 04:01 Results at 9AM Entry With 10% Profit Target 04:42 Results at Open Entry With 25% Profit Target 05:21 Results at 9AM Entry With 25% Profit Target 06:09 How to Interpret Max Drawdown Before Entry 07:05 Two Causes of Repeated Losses: Volatility and Strike Width 07:35 SPX Range Over the Study Period 08:08 Key Takeaways and Upcoming Research Topics #tastylive #marketmeasures #cboe #0dte #spx #optionstrading #putspread #maxdrawdown #optionseducation #financialeducation tastylive is a real financial network, producing hours of live programming every day. Follow along as our experts navigate the markets, provide actionable trading insights, and teach you how to trade. With over 120 original segments, and over 25 personalities, we’ll help you take your trading to the next level, whether you are new to trading or a seasoned veteran. tastylive content is created, produced, and provided solely by tastylive, Inc. (“tastylive”) and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. Options, futures, and futures options are not suitable for all investors. Prior to trading securities, options, futures, or futures options, please read all applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange Traded Options Risk Disclosure Statement found at https://tastytrade.com/disclosures/. Past performance is not indicative of future results. Performance is not presented net of all commissions, fees, and expenses. Multi-leg option strategies incur higher transaction costs than single leg trades as they involve multiple commission charges. Examples provided are for illustrative, informational, and educational purposes only and are not intended to be reflective of results you can expect to achieve. Supporting documentation for any claims (including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer.