| With recent volatility we have heard a lot of the following:
“The market moves so fast and so wild I am getting stopped out left and right….”
0DTE
Maybe it’s time to consider 0DTE options? Same day options?
A 0DTE is an option that no longer trades after the conclusion of the current trading day.
When an option reaches this stage, there’s not much more time left to act on the right to buy or sell the underlying asset. The window is small, and the move that the trader is anticipating needs to happen fast.
For some traders, the last day before expiry is the best moment to invest in options. Traders like 0DTE options because they allow an opportunity to capitalize on positions quickly and tie up capital for short periods.
Entering and exiting trades on the same day also eliminates the risk of the price moving overnight while the trader is asleep and not in front of the computer screen.
Growth in zero day to expiration options (0DTE) has been impressive with year-to-date (2024) 0DTE E-mini options’ average daily volume up 25% compared to the year prior.
Perhaps more importantly, volumes across all expirations continue to grow dramatically in addition to 0DTE expirations.
CME Group Option Days to Expiration Volumes (0DTE) |
