0dte Spx strangles
I have been doing well with spx 0DTE strangles for a few months. I’ve been short at about 15 delta. Sometimes I put some bias in there if it looks like a directional day. For capital efficiency I’ve been buying deeeeeep OTM wings for like .10 cents and targeting a total premium of about $5 per contract. As you would expect most days are winners and the losers are big.
One pattern I’ve noticed is that almost all of my losses are days where my strike was breached, I close for a big loss only to have the day reverse and finish OTM.
I’m trying to stick to my rules, but this has been the pattern for maybe 80% of my red days.
What is the wisdom on sticking to the rules vs letting things play out a bit? I don’t auto close the trade, but pull up the technicals to see if there is a reversal coming, but seeing the trade go deeply red so quickly motivates me to close it down. This happened twice this week (today and Tuesday) and is going to result in my first red week ever.