Don’t Get Burned by 0DTE — Here’s How to Earn Instead

👋 Hey Catalyst Crew,

You’ve seen the headlines: 0DTE is everywhere. People bracing for lightning moves. But what most don’t see is how pros have been quietly turning that chaos into income and how you can too.

This issue peels back the curtains: real tactics, tools you can use this week, and a clear path away from speculation toward consistent premium collection.

🔍 Real Talk – Actionable Insights: How to Use Options to Get Paid While Waiting

1) Trade structure > trade speed
From MarketWatch — “Popular 'zero-day' options saw record share…” (June 2025)
Read full article →

Want to start?

• Pick one short-expiry options strategy (covered calls or cash-secured puts) to study this week. Don't chase same-day expiry if you’re not prepared to accept full decay.
• Set a rule: only enter 0DTE trades with ≤ 2% of portfolio at risk and always have a max‐loss exit.

2) Income moving mainstream
From Reuters — “Wall Street's record rise spurs growth of covered call strategies.” (Sep 10, 2025)
Read full article →

Take your pick :

• Identify a few dividend stocks or blue-chips in your watchlist and model covered calls on them (e.g. choose strike that gives acceptable premium + decent buffer).
• Track implied volatility vs actual volatility: avoid overpaying premium on super volatile stocks unless you have a risk buffer.

3) Strategy rules & risk control
From TradingBlock — “0DTE Options: 7 Strategies And When To Use Them.” (Aug 12, 2025)
Read full article →

Apply them now ?

• For each strategy (credit spreads, iron condors, etc.), document one “ideal trade setup” and one “deal breaker” condition. E.g., ideal: IV premium at or above 30%, strike two deltas OTM, earnings not in next week. Deal breaker: ex-dividend upcoming, earnings announcement, or low liquidity.
• Use trade journaling for every option you hand-pick: record input (premium collected), decay over time, outcome. After 5 trades, analyze what worked.

💼 Why This Matters & How to Flip Your Income Game

• Risk reduction: When you sell premium vs buying short-expiry calls, you shift the risk profile. You get paid up front, decay works in your favor.
• Compounding income: Small, repeatable strategies build up over time — covered calls + cash-secured puts + managing risk = income streams.
• Control & psychological edge: Knowing your rules shrinks fear & FOMO. You trade from discipline, not impulse.

👉 💼 Secure Your Spot in SIC — Learn Income Strategies That Work
(New members get a live “Premium Income Checklist” bonus — only available this week.)

⚡ Smart Money Moves – Tactical Picks for #81

• Model before you act. Pick 2 stocks you like; build covered call models (strike, premium, expiration). Observe what your income would be vs risk.
• Limit your exposure to 0DTE hype. If temptation arises, allocate no more than 2-5% of capital.
• Collect something this week. Whether a single covered call or a small cash-secured put, execute one income trade so you feel the payoff of strategy over speculation.

📬 Extra Edge — Curated Reads for Cashflow Builders

You’re serious about building wealth, but no one newsletter has all the answers. To help you shortcut the noise, here are five hand-picked newsletters via Refind that directly solve challenges our readers tell us about:

• The Investing Wise Academy — A step-by-step guide to effortless investing.
• MySpringy Market Insights (Daily) — Faster, smarter market intelligence.
• Sol — Boost your emotional wellbeing so you can make better financial decisions.
• TheFutureParty (Daily) — Stay ahead of trends in entertainment, media & culture that can shape new opportunities.
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👉 Browse and subscribe to any that speak to you →

📚 Resource Hub – Your Problem-Solving Toolbox

🎯 Bonus Micro-Tactic: The Premium Income Checklist

Here are items you can use immediately to shape better trades:

1. Implied Volatility vs Historical Volatility — only sell premium when IV is meaningfully elevated.
2. Strike selection: choose strike with buffer (2–4 deltas OTM) so stock movement doesn’t crush the position too fast.
3. Time decay schedule: understand how decay accelerates as expiration nears; avoid taking full risk into last day.
4. Earnings & events filter: exclude stocks with confounding events (earnings, splits, IPOs, news) in your outlook period.
5. Size & risk cap: never more than X% of your account on any single options position; keep cash-reserved for adjustments.

🪄 Final Word

Too many traders are staring at 0DTE charts, hoping lightning strikes. But the real power lies in discipline: selling premium, defining risk, trading strategy, not hype.

If this week you walk away with just one income strategy nailed down, one risk rule added, and one trade executed — you’re already ahead.

Here’s to getting paid while we wait,
— Sky