Why You Should Be Trading 0DTE Options
Source: Pixaby
Short-term options trading has exploded over the last few years. It started with the creation of weekly options back in 2005, which are options that expire every Friday. These options are available on many individual stocks and ETFs and can provide quick returns for active traders.
With the explosive growth of Weekly Options, exchanges have tried to build on that popularity by adding 0DTE (0 days to expiration) options, which are options that expire at the end of every trading day. These products are available on a handful of markets but the main ones are the index products. The volume from the 0DTE options now makes up over half of the daily options volume on the S&P 500 (SPX). Like them or not, they are here to stay and will most likely become available in more markets in the years to come.
This post originally appeared at NetPicks.
Category: Options Trading
