Are 0DTE Options just pure gambling???

Good morning RIGD.

The 0DTE option world got a little press today in the form of an article from the WSJ titled “Amateurs Pile Into 24-Hour Options: ‘It’s Just Gambling’”.

It’s kind of stupid to call them 24-hour options. None of these things trade 24-hours.

We’re assuming she meant 0DTE calls which have a 6.5 hour lifespan.

The got damm fake news media at it again…

Let’s break it down and shed some light on some things.

note: You know it's bad when the degen options platform has to smack some sense out of the WSJ.

Digital-advertising entrepreneur…

We open with a story about 38-year-old digital-advertising entrepreneur (cough agency bro) Lucas Sommer who got burned on some QQQ calls.

First if you’re trading off a hunch or vibes or mojo - you are gambling. Nothing wrong with gambling we love a little speculation and partake from time to time. But there is a major difference.

Here’s where we gotta call bullshit...

Anyone trading a $3000 position in 0DTE options is not going to take a shower. They’re going to have a finger on the trigger, ready to sell. Unless they are absolutely insane degenerate gamblers and need to seek help, which is also possible.

For the position to move from $3000 to $80 (-97.33% loss), the QQQ would have to move down anywhere from -0.60% - 0.90% depending on how far in or out of the money the options are.

Not unusual for a day, but right after the open?

Doubt it.

The Options BOOM

They’re right.

There is a boom in options trading that expire the same day (0DTE).

But the second point is sort of confusing.

Correct: Options are cheap leverage. You can buy one contract of SPY which is equivalent to 100 shares ($44,600).

Confusing: Unless it’s Friday, there are no options that expire in as little as a day or sometimes just hours for individual stocks. Names like Apple and Tesla have weekly expiries.

It’s weird to talk about the boom and then refer to the options not partaking.

Back to the boom…

Each year we see new records in option volume, but the true shift in the market happened following the introduction of 0DTE.

In August we saw overall 0DTE SPX volume hit 55% twice and 52% once.

Insane!

The author gets a quote from a poker player who said, “I’m just exceptionally great at [ options trading ].” Which is an incredible line lol.

She then circles back to Mr. Sommer who takes us back to reality. Somehow she manages to include another line asserting his entrepreneur status. We hope the favorable copy includes us in the future.

Exhilarating highs and painful losses: These are going to come. The first time you buy a bull bomb that goes 200%, you are over the moon and begin to believe that yes you are also exceptionally good at options trading. Painful losses are part of the journey as well.

Anyone who doesn’t talk about losses is a furu full of shit. Remember you can live with losses, just try to avoid blowing up.

Addiction and getting hooked: There’s a positive way to look at this and a very negative.

Negative = you are addicted and hooked to the exhilarating highs and the painful losses. The rush of winning a trade, the rush of seeing a trade come back, the rush of winning a trade after losing.

There’s a reason why gambler endorphins spike whether they win or lose. It’s being addicted and hooked to the feeling.

THIS IS VERY BAD.

IF THIS IS YOU AND YOU ARE A PAYING MEMBER OF RIGD PLEASE REPLY TO THIS EMAIL SO WE CAN BAN AND REFUND YOU IMMEDIATELY.

(SERIOUSLY!!!)

Okay back to the positive side of addiction and being hooked to options.

Positive addiction:

Trading is an infinite game. The markets never end and you can never fully understand them.

Monday through Friday you get to step into the arena and test your ideas, test your methods, and importantly test yourself.

The mental part is often the most difficult!

We’re hooked and there’s nothing else we’d rather be doing than building the ultimate tool to give YOU a fighting chance in the market.

[ article ]

Are 0DTE options just gambling lotto tickets?

No.

Gambling has a fixed outcome (win or lose) based on pre-set odds.

You can never win more than the odds.

Trading (0DTE options included) has unlimited profit potential + multiple outcomes.

Unlimited profit potential of course being theoretical. There is no limit to how high a stock can go as we will probably see today with $ARM going live with a super low float, but it’s not like $SPY is going to send to $1000 per share tomorrow. Profit potential for the downside is also limited at 0 because a stock cannot go negative and the most SPY can drop in a day is 20% due to the circuit breakers.

Trading has multiple outcomes decided by the price action (market) and yourself.

You can exit a position early for a loss, you can sell some and let a position ride, you can let it rip BPI full YOLO mode.

We wrote about this on our new docs page, so we decided to ramble some more while it’s still fresh.

Then why does RIGD have lotto alerts?

You think you got us… but you don’t!!!

Here’s a lotto we sent today on SPY and it was an immaculate beauty of a thing.

Sent at 14:39… there was no max drawdown. The lowest return was breakeven in three minutes and it went 223.96% in an hour!

If you held it until the end of the day you returned 109.17%.

We call the strategy lotto because they carry extra risk!

The RIGD algo is searching for large buys that are either deep OTM (out-the-money), cheap (like these only 0.48 each) and size (large trades).

We love to see it when they win.

We’ve love to brag about BOBs and BATs (but we can’t yet)

The newest strategy is called “SWING” for swings in volatility. Measuring volatility is how we’re targeting BOBs (bulls at bottoms) and BATs (bears at tops).

If we were furus we’d just flex this screenshot and say, “OMG look at the gainzzz you missed out on sooooo insane get in here $20 off coupon”

Unfortunately… we’re not.

While these swing alerts were very profitable, you had to experience maximum pain slam your head against the wall and then jump into the cold tub with Lucas Sommer to feel better before you made money.

Along the way to max gains you would have experienced a drawdown of:

• -81.34%

• -85.32%

• -57.94%

Which obviously sucks and we probably would have bailed.

But if you bought and held or you’re the one high IQ genius who’s running an AI on our alerts (yeah you), the bear bombs returned +97.25%, +55.18% and the bull bomb -97.52%.

Overall that’s a win!

We just shipped the swing strategy this week and are currently live testing (it is a beta after all) and backtesting parameters to find optimal levels.

From there we’re pushing session stats which will give you a clear view on how the current market action compares to previous days.

Confused?

Check out the new RIGD docs page where we explain all of this stuff.

We’re pushing updates daily with guides and walkthroughs on the way!

Stay frosty!

Join us at RIGD for $99/mo (degens only)

P.S. Lucas if you’re out there reading this we apologize for the lolz. There’s maithais and a free month of RIGD on us if you reach out.

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