0DTE options: should you bet on America’s favourite?

The S&P 500 index can swing by around 0.5% in a day, offering potential gains for traders using leverage or options. The increasing popularity of zero-days-to-expiration options (0DTEs) reflects retail investors’ interest in high-risk, high-reward trades, with 0DTEs accounting for over 40% of S&P 500 options activity. While 0DTEs can provide significant payoffs, they also come with high risk and require precise timing to be successful, as traders often buy options with one day to expiry, hold them overnight, and sell them the next morning for maximum profit.

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