Day Traders Lose $358,000 Per Day Gambling on Zero-Day Options

[ETJ]

Day Traders Lose $358,000 Per Day Gambling on Zero-Day Options
Lu Wang - Bloomberg
Day traders are paying a price for their newfound love affair with one of the hottest trades in the equity market.
Rushing to join the trading frenzy in options with ultra-short lifespans, known as 0DTE for zero-days to expiration, small-time investors find themselves struggling to make it work. A fresh study from researchers at the University of Muenster in Germany shows the crowd may have lost $358,000 a day since May 2022, when it became possible to trade expiring contracts every day.
/jlne.ws/41lEhGh

 

[Scanman]

‘ may have’ is so faint word in a scientific paper

 

[TheDawn]

‘ may have’ is so faint word in a scientific paper

I know. How can they use "may have" when they have the real data right there. LOL But I did state my doubt about the profitability of trading 0dte options in other threads discussing them.

 

[maxinger]

And who is earning $358k per day trading odte options?

 

[Businessman]

And who is earning $358k per day trading odte options?

The market makers with the fastest systems.

 

[trade4succes]

And who is earning $358k per day trading odte options?

Not day traders

 

[blueraincap]

With the big tech numbers, this week will be interesting to trade 0dte.

 

[blueraincap]

In US, commission is per contract and option value low in 0dte, the commission per option gotta be so high that it eats away any profit?

 

[taowave]

gee,option newbs get smoked when realised vol gets crushed???

 

[MKTrader]

And who is earning $358k per day trading odte options?

Traders who use services that teach them to do 0DTE the right way.

Actually, I know no idea. I'm pretty sure this is a yet another example of "How to Lie With Statistics," the name of a book once required in Stats 101 courses but probably banned from them as stats are so misused by academics, the media, Pfi$er, etc. I imagine there are some algos that have been programmed or trained to take the other side of those trades profitably, though.