Monthly Archives: September 2021
One of the biggest drawbacks of trading a 0DTE strategy with options on the SPX index is that you are limited to taking trades during market hours. This will change as of November 21st 2021 when the Cboe (Cboe: CBOE) has announced plans to extend the global trading hours session (GTH) for its S&P 500 Index options (SPX) and Cboe Volatility Index (VIX) options to 23 hours each business day in the fourth quarter of 2021.
This is tremendous news for traders of 0-DTE strategies. These are strategies that take advantage of the extraordinary opportunities provided by 3 options expiration days a week.
Now that there’s no limit to when you can open a trade, it means better fills, more potential premium, and the benefit of a cash settled contract. This is a distinct advantage over options on the e-mini futures for the S&P, which has always traded around the clock, but assignment is through the actual contract, which can cause margin problems and risk for traders.
We are looking forward to this fantastic opportunity. Trading the e-mini around the clock has made it the odds on favorite, but the assignment risks and heavy commissions and fees made it concerning for some traders. We still need the futures contract for analysis because it has volume, which the SPX does not have, being a calculated index and no actual shares get traded.
The margin requirements for options on the SPX are about 4X that of options on futures, but the liquidity is much better. With all things considered, trading 0-DTE strategies on the SPX around the clock is going to be a huge success for us and our trading community. We are looking forward to it. Learn to Trade S&P Options on the Last Day of Expiration with super low risk, huge potential profits, and In a tiny window of time.