Have you traded 0DTE options?

Tiger_chat
03-20

Zero-day expiration (0DTE) options, also known as same-day expiration options, are options contracts that expire on the same day they are traded. This concept has been expanded: options expiring that week can also be counted as 0DTE.

Most time I traded 0DTE, they ended up with losses. As 0DTE options are extremely speculative and come with a high level of risk. The short expiration period means these options are very sensitive to short-term price fluctuations.

For example, when I buy OTM 0DTE options. I bet on stock to rise above or dip above the current price. It's cheap, meaning hard to achieve. However, if the stock rises or dips significantly, the 0DTE options may bring over 1000% gains.

Therefore, its advantage is 0DTE options can offer the potential for rapid and substantial profits if the underlying asset moves in the desired direction shortly after the trade is executed.

Overall, 0DTE options can be a powerful tool for experienced traders looking to profit from short-term price movements, but they should be approached with caution due to their high risk and limited time frame.

You can find top 0DTE options in "Stocks" --> "Option"

$SPDR S&P 500 ETF Trust(SPY)$ $Tesla Motors(TSLA)$

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!
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • mster
    03-21
    mster
    I trade 0DTE options on a regular basis both on QQQ and SPY. However I sell as suppose to buy. Both put and call (covered). If the result wasn’t to my desired direction I will roll it out to a later date before it expires. While profits are limited to the premium collected form selling vs buying its is to a certain extent ‘safer’ or rather more manageable
  • Bintang7781
    03-20
    Bintang7781
    Great article, would you like to share it?
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