Larry’s Note: I’ve already issued my first 0DTE trade… but it’s not too late to make sure you’re able to get in on the next.
If you haven’t heard yet, 0DTE refers to “zero-days-to-expiration.” These options trades are quick hits… and when you get the move right, you’ve got the chance to double your money – or more – in 24 hours or less. That’s why these trades are fast growing in popularity.
I shared all about this strategy on Wednesday night. And I don’t want you to miss out. So if you weren’t able to attend, make sure to check out the replay here before it goes offline.
If you’re finding it hard to decide where to put your money right now, you’re not alone.
It’s a dilemma that the largest fund managers around the globe are facing too – especially if they use fundamentals like price-to-earnings (P/E) ratios to value stocks.
The problem is twofold…
Fund managers need to keep exposure to Big Tech stocks. If not, they risk their fund underperforming if the tech powerhouses make another run higher.
But those stocks are now trading at excessively high valuations. So they’re vulnerable to big pullbacks.
Particularly if growth slows…
So today, let’s look at how to tackle this problem… and one strategy that works great in moments like these.
No Guarantees
The growth problem reared its head in the recent earnings season. The majority of the Magnificent Seven has reported mixed results. (Nvidia reports next week.)
Despite collectively spending hundreds of billions on artificial intelligence (AI), there’s no guarantee that these companies will manage to convert those funds into future earnings.
There’s so much uncertainty around what’s coming next.
That’s why, over the past couple of weeks, fund managers have been rotating a portion of their Big Tech holdings into undervalued stocks in Europe (including France and Germany).
Put simply, it’s a switch from “growth” to “value.”
Keep in mind: This doesn’t mean the AI story is dead. It still has a long way to go – but it will take years.
And the reality is that the market is starting to seriously test the huge AI premium that has been baked into Big Tech stock prices.
There’s been no better example than DeepSeek…
The Chinese rival to Open AI’s ChatGPT was allegedly developed for just a fraction of the cost… and supposedly used fewer advanced chips.
That news was enough to wipe nearly $600 billion of value off of Nvidia in just a day.
All the same, as of Wednesday’s high, NVDA recouped all of those losses.
But where does the stock head from here?
And does that mean you should buy back into NVDA… or reduce the size of your overall position?
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Wait for the Right Setups
That’s where we have an advantage over the pros…
Fund managers need to beat their benchmark (such as the S&P 500 or Nasdaq, for example). And they need to remain fully invested (or close to it) all the time.
They don’t have the luxury of sitting on the sidelines.
But we have greater flexibility. We can patiently wait for the right setup and only then jump on opportunities.
So if Big Tech stocks have rallied too far and are vulnerable to a pullback, we can buy put options to catch that fall. And if they go oversold and are likely to bounce, a call option could catch that move.
Yet if no strong setup comes our way, we can simply wait until one appears. And we can maneuver quickly as the environment shifts.
One of the best ways to take advantage of these volatile moments is through options trading, as I just mentioned.
And right now, there’s a way to ramp up these trades even more. With “zero-days-to-expiration” (0DTE) trades, you don’t have to worry about what a stock is going to do over the long term.
That’s because these options expire the same day you enter the position. There’s no long-term risk. Instead, you can potentially turn short-term moves into quick profits in 24 hours or less. And often, you’ll have a shot at doubling your money or more in that window.
That’s one reason I sat down with tech guru Jeff Brown on Wednesday. He had to hear more about this strategy, so he flew down to South Florida to meet me at my home.
There, we covered the benefits of zero-day trades… and how they can be some of the biggest, quickest gains of 2025.
If you haven’t caught up on that conversation yet, then I encourage you to watch the replay now. You can find that here for a short time.
Happy Trading,
Larry Benedict
Editor, Trading With Larry Benedict