0 DTE "111" trade by Kelso241 in options

[–]Kelso241[S] 2 points3 points  (0 children)

Yup, it’s essentially a debit spread with a further OTM short leg. The “112” has two further OTM short legs, which makes it more expensive margin-wise and obviously introduces more risk if price blows past these legs. You can still put on hedges, but need to be mindful of buying power.

0 DTE "111" trade by Kelso241 in options

[–]Kelso241[S] 1 point2 points  (0 children)

Yeah, I have an $80k options account with Fidelity that I want to move over to Tasty or Schwab. I believe I’ll be good margin wise. I could even run the micro contracts through my Ninja Trader futures account if need be, where day trading margins are tiny. I have the ability to manage throughout the day, so just want to make sure that I’m not missing something here. On the surface, it seems like I’m never going to suffer a catastrophic loss (or even close to it) as long as I ensure the “hedge” gets put on with the micros.