⁉️Questions
Common questions about RIGD and 0DTE
Who is RIGD for? Do I have to be a professional trader?
Clearly this product is build for retail non-professional traders. We're not sure if professional traders (the lizard people) would laugh or cry if they ever used RIGD.
The RIGD system is designed in a way that's easy to follow even if you have no trading experience.
When is the best time to trade?
Our data shows that open session alerts (930 - 1030) have a strong correlation to max gain. That said, it's common to see them drawdown anywhere from 50-80% before hitting 100%+.
Outside of the open we like to see MIDDLE SESSION (1030 - 1330) LOTTOS and SWINGS as high probability alerts.
When is the worst time to trade?
If you are new to 0DTE options, do not trade Friday and do not open new positions after 13:30.
How much money am I going to make?
If you are new to options trading, you will probably lose 100% of your money. If you're advanced at options trader (let's face it you're reading this right now you definitely aren't advanced) you will possibly blow up. We make you sign a waiver of liability before getting started acknowledging this fact.
Do I have to trade 0DTE options?
No, this is a free country and you can do what you want.
However RIGD alerts are designed for intra-day (same day) trading. You can always purchase 1-4 DTE or weekly options for slightly more premium and slightly less volatility.
Why is my price different than the alert?
Depending on your brokerage you may not be receiving live market data. But the 0DTE world moves extremely fast and seconds matter. This can obviously be beneficial if the move hasn't happened and kill you if it already has.
What is a 0DTE Option?
In the options world DTE stands for “Days to Expiration”.
The 0 means zero days. They expire the same day they are traded.
Example:
It’s Monday September 11, 2023 and you buy a SPY 450c option that expires at the end of the session. That’s a 0DTE trade.
If you purchase a SPY 450c that expires on Wednesday September 13, 2023, that’s a 3DTE (three days till expiry) trade.
Key point:
0DTE primarily refers to the options that have daily expiries.
However on Fridays most options for stocks like Nvidia, Tesla, and Apple expire on Friday. On Friday these are 0DTE (because they expire the same day).
What 0DTE Options are available?
Monday through Friday you can trade 0DTE options on:
S&P 500 ETF Trust ($SPY)
Invesco Nasdaq 100 Trust ($QQQ)
S&P 500 (SPX)
Nasdaq 100 (NDX)
Mini-SPX (XSP)
STOXX 50 (OEXP)
RIGD supports 0DTE $SPY and $QQQ.
What are the advantages of 0DTE Options?
The simple explanation is they are low priced, extremely liquid, have potential for massive gains and limited downside (the price of the option).
0DTE Options are the most degenerate financial instruments created by man.
Low Price Leverage:
When you buy an options contract, it gives you the right to buy or sell 100 shares of the underlying stock at the strike price.
The option premium (price) provides you the same notional value of 100 shares.
0DTEs are typically priced 1.10 - 2.00 for options “in-the-money” (ITM) and much cheaper for strikes “out-of-the-money” (OTM).
Example:
On Friday SPY closes at $445.52.
On Monday you think it’s going up!
You can either:
Buy 100 shares of SPY for $44,552.00
Buy a 0DTE call at the 445 strike for 1.67
The market opens and you buy the SPY 446c for 1.67 ($167).
Congratulations you are now controlling a notional value of $44,552.00 of SPY for only $167.
That’s low priced leverage!
Quick Profit Potential:
If the market moves ten cents in your direction, you will make at minimum 10% on your option.
Don’t quote us on that… but also quote us on it.
Extremely Liquid:
Currently 0DTE options make up ~50% of the total option volume each trading day. Given their popularity, they are extremely liquid.
Extreme liquidity means the bid-ask-spread (the price between buyers and sellers) is super tight.
When the bid-ask-spread is tight, you can exit positions as fast as you enter them!
Why liquidity matters:
Sometimes a ten cent move can bet the difference between a 40% gain and a 20% loss so moving with speed is mission critical!
Extreme liquidity in 0DTE options means there’s often only a .01 - .02 between the bid-ask-spread. You’re safe to use market orders (selling at the lowest bid) to exit positions.
Massive Gains with Limited Downside:
Your downside is limited to the premium paid for the option. You can never lose more money than what you paid for the option.
No Overnight Risk:
The lizards love to release news on a Friday after the market is closed or prior to the opening Monday morning. They positioned themselves before and they waited until the last moment to let the market react.
That’s markets… they’re RIGD.
By trading 0DTE options, you don’t have any exposure to changes that happen when the market is closed.
Every day is a new opportunity.
What are the risks for 0DTE Options?
0DTE options are a lot like Spiderman... with potential for massive gains comes risk for total loss.
Extreme volatility:
0DTE options are the most volatile financial derivatives ever created!
Sudden price movements in your direction will move the value for 0DTE options by twenty or thirty percent, while a move the opposite way will crush your gains.
Rapid Price Decay:
The lizards control the stock market and often one of their favorite moves is to do the ping-pong-bing-bong between strike prices.
[ image of ping pong ]
When the price action chops, the value of both call and put options rapidly decrease in value.
Emotional Damage:
This is the worst part.
You will get a RIGD alert, purchase a call option that immediately starts going up in value before a massive drop. You get scared and close the position for a 30% loss.
You shut the computer and curse at yourself. Then you make the mistake of looking back 15 minutes later only to see the call option you sold at 0.78 is now trading at 4.65.
Nothing feels worse than this and it happens every day!
Then the next time you’re in a trade and it goes down, you decide to hold through the loss thinking it will bounce back. It doesn’t. You turn a 30% loss into a 100% loss. You search craigslist for jobs to make it all back.
Been there and done that!
The great part of RIGD is we are a supportive community of like minded degenerates who are likely in the exact or similar position. Misery loves company.
Summary:
There is no other form of speculation that theoretically offers unlimited upside with a fixed downside that trades Monday through Friday 930 - 400pm EST.
Unlimited upside: while there’s nothing stopping $SPY from going to $1,000 in the next session, it will not go to $0.
Even if North Korea fires nukes at America, the circuit breakers would hit level 3 (indicating a -20% drop) and trading would stop until the next day (if anyone is still alive).
Fixed downside: You cannot lose more than the premium paid for the option contract. Your risk is capped at whatever you paid.
Buy a ticket and take the ride.
The Option Greeks for 0DTE
We’re not going to say the Greeks don’t matter, they do if you’re trading weekly options.
But for 0DTE in the amount of time you spent thinking about them, you just made or lost a lot of money.
The most important Greek is probably Theta aka time decay.
The closer the clock gets to 4:00 PM EST, the faster your option value will decay.
Example:
9:45 AM: SPY is $445.42 and you buy a SPY 446c for 1.59.
2:15 PM: SPY is $445.68 (a small increase) and your SPY 446c is now worth 0.68.
Why?
THETA!
At 2:15PM there is only an hour and forty five minutes left in the session. The closer to expiration, the more the value of the option will go down.
The lizards love to force a move in the morning, slowly grind higher or lower during the middle (Theta Burn), and then force a big move at the end.
This is really the best explainer.
Summary:
On low volume days with boring price action (we call it the ping pong bing bong) theta decay will absolutely kill the value of your options.
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