What are 0DTE Options?0DTE (zero days to expiration) options are option contracts that expire either on the current trading day or within the week⏳. Just like any option contract, they have a set expiration date—— which can be quarterly, monthly, weekly, or even multiple times a week for some hot underlying assets. But what makes 0DTE stand out? Let’s dive in![Cool]Characteristics of expiring optionsA. High leverage effectThe high leverage of 0DTE options doesn’t come out of nowhere; it’s supported by two logics:Cost Side: The time value of 0DTE options is nearly zero, just like "near-expiry goods" in a supermarket. The option premium is ultra-low, allowing you to enter the market with very little capital;Volatility Side: The Gamma of 0DTE options is "incredibly" sensitive! Gamma is the "a
OTM 0DTE Options: How to Play the Stock Market "Lottery"?
In the recent market volatility, trading has become more challenging. Some investors are turning to out-of-the-money options with short expiration dates, betting on a sudden market reversal, such as yesterday's epic single-day surge. Out-of-the-money options can indeed be a good tool to make big profits with small investments, but they carry immense risks, with 90% of them resulting in losses—sometimes referred to as the stock market lottery. Have you ever traded out-of-the-money options? Do you like the stock market lottery? Feel free to share your experience!
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