Options FAQ: What are 0DTE options?
Implied Volatility Increase or Decrease0DTE options, or Zero Days to Expiration options, are contracts that expire at the end of the current trading day. These options offer traders the opportunity to hedge short-term risks and capitalize on intraday market movements. However, they also come with unique risks, such as higher Theta decay and increased sensitivity to price fluctuations.
In this video, we cover:
- What 0DTE options are and how they work
- How traders use them for risk management and short-term strategies -
- The risks involved, including rapid time decay and market sensitivity
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