Your Guide to Zero-Day Options and Market Trading Strategies
Editor’s Note: This is Eric Fry, introducing a special feature from seasoned trader Jonathan Rose. He unveils a new strategy utilizing a unique type of short-term options known as zero-day options.
On Tuesday, November 26, at The One-Day Winners LIVE Summit broadcast, Jonathan will present his comprehensive five-step strategy for the first time. He will guide you on executing your initial trade while maximizing gains and minimizing losses.
During this session, Jonathan will also disclose his top short-term option trade, potentially yielding up to 5-to-1 gains on Black Friday, the day following Thanksgiving. Click here to register for the event.
Today, Jonathan shares insights about his trading journey and the patterns he has uncovered. Let’s get started.
With a clear market outlook and the leverage provided by options trading, a trader can achieve remarkable outcomes.
My background includes over 16 years as a professional trader, with experience on major exchanges like the Chicago Mercantile Exchange and the Chicago Board Options Exchange.
Throughout my career, I learned that by merging effective tools into a cohesive system, traders can significantly outpace the competition.
Understanding market performance fundamentals is crucial for shaping trade positions. That’s why my Masters in trading group and I closely monitor the Invesco QQQ Trust (QQQ), an ETF that tracks the Nasdaq-100 Index—comprising the 100 largest non-financial companies listed on that exchange.
Recent chart analysis reveals patterns of behavior that we can exploit.
But why is QQQ so important? The leading market drivers, referred to as the “Magnificent Seven,” include Microsoft Corp. (MSFT), Apple Inc. (AAPL), Alphabet Inc. (GOOG), Meta Platforms (META), Nvidia Corp. (NVDA), Tesla Inc. (TSLA), and Amazon.com Inc. (AMZN).
These companies all operate on the Nasdaq, making the QQQ an essential chart to watch.
I often use critical levels—what I call my “Line in the Sand”—to assess market performance. This line can indicate levels of support or resistance based on market trends.
This concept simplifies our market view. If we’re trading above the line, it signals a bullish trend. Conversely, trading below implies a bearish outlook.
In our daily Masters in trading: Live sessions at 11 a.m. Eastern, we have been focusing on QQQ, particularly the $500 level, which I consider crucial.
Observing the daily chart, the $500 mark stands out significantly. After reaching just above $515, QQQ saw a pullback, yet it has consistently found support near this area. This reflects the fierce competition between buyers and sellers, marking it as a pivotal point.
Why is this significant? Levels like this often serve as a springboard for major price moves. If QQQ stays above $500, we might see further upward momentum. Conversely, a drop below could trigger substantial downward movement. This is where the trading opportunity lies, driving our interest in short-term options like 3DTE, 2DTE, and even 0DTE, which allow quick capitalizing on these shifts.
We have witnessed successful outcomes in prior scenarios. Earlier this year, during a similar market situation, I pointed out a significant level in our live class. Members strategically placed short-term puts before a market decline, and when QQQ fell by 2.4%, our model portfolio achieved gains up to 179.9% overnight. This exemplifies the importance of preparation, discipline, and seizing the moment.
Stay Flexible and Objective
A robust understanding of market fundamentals, strategic options utilization, and disciplined risk management are critical for successful trading. My extensive experience in exchanges demonstrates that these principles lead to significant advantages, particularly in volatile environments.
These trades materialized due to our consistent efforts on a systematic strategy. We identified that the markets were bullish and knew how to correct an imbalanced portfolio in response to market support. This approach equipped us to protect against potential volatility from key market events.
As we navigate the complexities of finance, it’s essential to remain adaptable and utilize objective indicators, such as our “Line in the Sand.”
This is just one tool in my trading toolbox, and I encourage you to attend my One-Day Winners Live Summit on Tuesday, Nov. 26, at 11 a.m. Eastern. There, I will delve deeper into this money-making strategy to leverage volatile markets using short-term trades.
Attendance is free, and you can sign up here to reserve your spot.
Every trader should commit to ongoing learning and be open to evolving strategies. This mindset promotes creativity and ensures readiness to seize market opportunities as they arise.
As I always say, a creative trader is a winning trader.
Jonathan Rose
Founder, Masters in trading
