Well 1-DTE is technically opened at previous days close, they are essentially the 0-dte ones, if you look at opened positions in their existing funds that use 0-DTE calls, its next days calls (which become 0-DTE next day.)
Understood. I have now read better their new prospectus income, i think they will be doing a mix of 0dte and 1dte (https://www.defianceetfs.com/wp-content/uploads/funddocs/qqqy/QQQY-Prospectus.pdf, page 7). If they short 1dte saying 0dte they are "juicing" the returns by basically selling an additional overnight gap risk. It can be a bit misleading tbh. For the existing ones, you mean for example the WDTE?
That’s what I thought as well that they would want the overnight premium, the existing ones do a mix of weekly/1dtes. I’ll add 0-dte spread just now but premium is even thinner
Why did you use 1dte rather than 0dte (as per the prospectus) for the short put-spreads?
Well 1-DTE is technically opened at previous days close, they are essentially the 0-dte ones, if you look at opened positions in their existing funds that use 0-DTE calls, its next days calls (which become 0-DTE next day.)
Understood. I have now read better their new prospectus income, i think they will be doing a mix of 0dte and 1dte (https://www.defianceetfs.com/wp-content/uploads/funddocs/qqqy/QQQY-Prospectus.pdf, page 7). If they short 1dte saying 0dte they are "juicing" the returns by basically selling an additional overnight gap risk. It can be a bit misleading tbh. For the existing ones, you mean for example the WDTE?
That’s what I thought as well that they would want the overnight premium, the existing ones do a mix of weekly/1dtes. I’ll add 0-dte spread just now but premium is even thinner
100% agreed with you. thanks for sharing!
thanks for adding the 0dte, insane how the trade is pure overnight gap risk premium
100%! almost exclusively overnight drift entire 2024 too...