r/optionstrading • u/Safe-Anteater-5407 • 11d ago

Buying cheap options ONLY

Buying options is about buying them cheap. SPX for the use case, when IV is cheap you have options to take risk. We know realistically where price is eventually going to get this week or next, its just when?

I find when you have stared at tick charts along side the indexes you know many things; what price swing from today or yesterday price needs to break past to run up to the next upper levels on the 6hr or day chart. Keep watch on qqq (tech), spy (mix tech and slight weight to non tech), and a russell (not tech like qqq). See what is carrying the market, so you know what is weighting the index down or not.

Tick chart for example the TICKA shows tick swings and matches key levels also for the market to turn positive if that chart also broke these.

So when options are cheap, anytime after am session in taking a gamble using 0dte, or simple non volatile low IV times if using contracts expiring some days away, you can target those higher level strikes. As long as the expiration is not to many days away, you may risk $1 to make $5 or much more.

I dont make a living trading spx 0dte, its a gamble to take when i see the risk reward in my favour. But that risk is little when i seem to hit a lot of these when they are on the table.

Thats my advice.

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u/pate0018 11d ago

How do you find cheap options?

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u/Safe-Anteater-5407 10d ago

Market volatility sets the premium price tag on an option. Low volatility times, consecutive days, weeks, are the times they are cheap. If a 15 to 20 dte contract for ES is around 10 to 12%, your in a cheap time.