Do Stop Losses Actually Help on Zero DTE Trades

tastytrade7 hours ago15:33

On longer dated trades, tastylive research has long found that stop losses usually do not improve performance, so Julia Spina and researcher Kai put the question to zero DTE: does cutting a loser early actually help when the trade only lives one day? Using the new one minute intraday SPX data set going back years, they backtest stop losses on 20 delta iron condors and find the answer is more nuanced than the longer dated case. ๐Ÿ“Š tastylive: https://www.tastylive.com/ ๐Ÿ“ฐ Get Tom's pre-market analysis every morning: https://www.tastylive.com/newsletters ๐Ÿ“˜ FREE Options Strategy Guide: https://tinyurl.com/bp9ms763 ๐Ÿ“ฑ Follow tastylive on X: https://x.com/tastyliveshow Chapters 00:00 A wild week in the market 01:37 Both pieces are 0DTE today 02:29 Managing winners versus stops 03:11 The baseline iron condor 04:00 Why longer dated stops hurt 05:30 Setting the stop levels 07:30 How often a loss recovers 10:00 The 48% that turn green 13:00 Where a stop still helps 16:00 The takeaways on piece one #tastylive #marketmeasures #0dte #stoploss #ironcondor #trademanagement #premiumselling #optionsstrategy #optionstrading #stockmarket tastylive is a real financial network, producing hours of live programming every day. Follow along as our experts navigate the markets, provide actionable trading insights, and teach you how to trade. With over 120 original segments, and over 25 personalities, we'll help you take your trading to the next level, whether you are new to trading or a seasoned veteran. tastylive content is created, produced, and provided solely by tastylive, Inc. ("tastylive") and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. Options, futures, and futures options are not suitable for all investors. Prior to trading securities, options, futures, or futures options, please read all applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange Traded Options Risk Disclosure Statement found at https://tastytrade.com/disclosures/. Past performance is not indicative of future results. Performance is not presented net of all commissions, fees, and expenses. Multi-leg option strategies incur higher transaction costs than single leg trades as they involve multiple commission charges. Examples provided are for illustrative, informational, and educational purposes only and are not intended to be reflective of results you can expect to achieve. Supporting documentation for any claims, including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer.

Do Stop Losses Actually Help on Zero DTE Trades | PiQ Markets