0DTE Options
Also called: zero dte, same-day options
Options that expire the same day they are traded.
Zero-days-to-expiration options expire within hours. They have almost no time value and extreme gamma, so their prices swing violently on small moves in the stock. They are popular on the S&P 500 (SPX) for fast, defined-risk bets, and dangerous for the same reason: tiny moves create huge percentage swings.
For example
A 0DTE SPX option can go from $2 to $0 (or $2 to $10) in an hour, because there is no time left to soften the move.
Related terms
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