The last few days I’ve been selling a 0DTE SPY straddle, positioned one strike out-of-the-money on both the call and the put, and buying very cheap wings (~$0.05) for protection. The buying power required has been about $1,200 per trade. I’ve been entering the trade between 930–945 AM and closing before 11:00 AM. My profit target has been $0.50, but if 11:00 arrives first, I close the position at whatever profit is available. So far, my smallest win has been $0.37, and I haven’t had a losing day yet. Today was an exception—because of the FOMC press conference, I didn’t expect much decay before 2:30 PM. So I held longer and closed after 3:30 PM for a $0.70 gain. I’m trying to determine whether this is a sound long-term strategy. Specifically, I’m unsure what the optimal approach is on days when 11:00 arrives and the position is still not near break-even. Should I be taking a small loss at that point, or holding until later in the day to see if theta decay brings it back toward break-even, and if necessary, rolling the position?

Personally i do not do any options plays, although i hear The Traveling Trader on Youtube talk about it frequently. I use the options gamma ratings to help determine trades but other than that i would not be able to give an opinion on the straddle and your strategy.

I'm very curious how this strategy performed today

Positive!!

interesting what strike did you do? i did a long strangle and also got a profit