Options Seller Dashboard：Exploring Expiring Options
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 options
A. High leverage effect
The 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 "acceleration" of Delta. As expiration approaches, the Gamma of at-the-money options can even tend to infinity—— even if the underlying asset fluctuates just a little, the option value will fluctuate sharply, and the leverage effect is fully maximized!
B. High Liquidity
The trading volume of 0DTE options accounts for an increasing proportion in the options market. Because there are many participants in the transaction, the bid-ask spread is particularly narrow, and you can easily enter and exit the market at a reasonable price, making the trading experience extremely smooth~[Happy]
Option Strategies
Sell Put and Covered Call can team up with 0DTE Options to make your strategy pop! The time value of weekly options decays extremely fast, which is especially beneficial for sellers:
For Sell Put: When the stock price chills out in the short term, you can snag that weekly premium quick. Even if it wobbles later, time decay has already locked in most of your gain!
For Covered Call: When holding stocks, selling weekly Calls lets you earn premiums short-term without missing out on long-term opportunities.
0DTE options are a hit because they’re high-leverage and low-cost—— perfect for speculating on big short-term swings to score huge returns 🚀. With tons of active traders, bid-ask spreads are tight, so you can get in and out at fair prices easily. They let you take super short-term positions and hedge, with results you’ll know by the day or week，making them ideal for anyone who hates long holds and wants quick profit/loss clarity!
Tiger has an “0DTE Options Section” where you can find all the contracts that are about to expire——check it out!
Open your Tiger trade app now to unlock 0DTE options, and manage risks smartly and earn profits efficiently. Give it a go and start your 0DTE trading journey right now!
💬 Let’s Chat
Have you tried 0DTE options? What wins or lessons have you had when pairing them with Sell Put or Covered Call? Drop a comment below to win options handbooks and USD 5 options vouchers!
Click to view more: https://www.itiger.com/sg/marketing/tigeroptionsdatainsightssg
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