0DTE Scalper

You can buy calls, puts, and debit spreads in a TFSA. Selling premium (credit spreads, naked options) requires a margin account. Most 0DTE structures can work in TFSA if you're buying rather than selling.

0DTE options can be very cheap ($20-100 per contract). However, you should have enough capital that losing 100% on a trade isn't devastating. With a $5,000 account and 0.5% risk per trade, you can risk $25 per trade.

The leverage is attractive - small stock moves create large percentage gains. Some traders sell premium to collect theta. Success requires strict risk management, proper sizing, and realistic expectations.

US options (SPY, SPX) have daily expirations - 0DTE every day. Canadian options only have weekly/monthly expirations, so 0DTE is only possible on the expiration day (typically Friday). Many Canadian traders access US markets for daily 0DTE.

Generally no. 0DTE requires fast decisions, emotional control, and sophisticated understanding of options behavior. Start with longer-dated options to learn, then potentially move to 0DTE once experienced.

It depends on your view. For direction: long calls/puts or debit spreads. For neutral: iron condors or credit spreads. For volatility: straddles. Credit spreads are popular because theta decay helps you.

Close positions by 3:30 PM at the latest. Don't hold short options through expiration. If your short strike is at-the-money near close, you risk assignment. Early closure eliminates this risk.

Market makers charge wider spreads for 0DTE due to high gamma risk. They can lose quickly if wrong. Also, lower volume on some strikes widens spreads. Stick to liquid underlyings (XIU, banks, SPY).

Quality over quantity. 1-3 well-thought-out trades is reasonable. Overtrading leads to impulsive decisions and accumulating commissions. Set a maximum (e.g., 3 trades) and stop when reached.

No - 0DTE options expire at 4 PM. They literally cannot be held overnight. If they expire ITM, you'll be assigned stock. Close all positions before expiration to maintain control.

Track all trades: win rate, average win, average loss. Expectancy = (Win% × Avg Win) - (Loss% × Avg Loss). Include all costs. You need at least 50-100 trades for reliable data. If negative or barely positive, reconsider the strategy.

It's very challenging. You need real-time accurate Greeks, fast execution, and the stock must oscillate enough to overcome theta. Most retail traders lack the tools and speed. Simpler directional or spread strategies are more practical.

Allocate a small portion (5-10%) of options capital to 0DTE. Track it separately. Ensure worst-case 0DTE losses don't materially impact the overall portfolio. Use 0DTE for tactical intraday views, core portfolio for longer-term positions.

For selling premium: Low VIX, range-bound days, no major news. For buying premium: Clear intraday trends, breakout setups, expected volatility from data releases. Track which conditions correlate with your winners.

Define: (1) Entry conditions (time, triggers, setups), (2) Structure selection rules, (3) Sizing rules, (4) Exit rules (profit, stop, time), (5) Daily limits. Forward test for 50+ trades. Evaluate, refine, repeat.