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Why I Would Ditch 0DTEs for Managing at 21 Days to Expiration

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Description
When it comes to managing options trades, many traders rely on a strategy known as 0DTE, or zero days to expiration. This means that the trade is managed on the same day that the option contract expires. While this may seem like an efficient way to manage trades, I have found that there are several drawbacks to solely using the 0DTE strategy.
In our 15 year study, we looked at all the possible fixed duration management mechanics from taking trades off immediately through leaving them on until expiration to see what produced the best net P/L. This video shows the results we found from this study and how you can use it to improve your own trading.

00:00 CBOE Event
01:32 Value of 21 DTE
03:12 15 Year Study
04:14 SPY Average P/L and CVaR
07:58 IWM Average P/L and CVaR
09:01 QQQ Average P/L and CVaR
09:35 More Time = More Risk
12:16 Finding the DTE Sweet Spot

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posted by zusimpelnhm