ODTE options .... pros/cons?

If you long them, what's the worst that could happen... you lose your premium. What's the best that can happen... making a "few hundred percent"?

Seems 0DTE option plays won't go away until the premiums get big enough to discourage such speculation.

Brokers must love these things. Premiums are cheap so players buy lots of them.
 
KCalhoun said:
New to the idea, how do they work? Like daytrading?
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They are traded like any other Options and are
intended to be traded on their expiration date.

They are low-cost and high-risk because they
have no time value.

I have been researching, and there aren't many
that expire daily, but on Tuesday and Thursday.

I wish there was a list somewhere.

BTW, the article requires a subscription.
 
No time value??????



GoldDigger said:
They are traded like any other Options and are
intended to be traded on their expiration date.

They are low-cost and high-risk because they
have no time value.

I have been researching, and there aren't many
that expire daily, but on Tuesday and Thursday.

I wish there was a list somewhere.

BTW, the article requires a subscription.
More...
 
I've been googling on 0DTE. Basically they're about trading the SPX and XSP (mini) options on the CBOE. Just trade it on the day of expiration. They european style so no worries about exercise.

I found this video about a lady doing 0DTE iron condors using index options (I found it fascinating):
0 DTE SPX MEIC Strategy - January 16, 2023 by Tammy Chambless - YouTube

I've been doing it in the form of Event Contracts for several months now and there is a lottery-like feeling to it. For example if you watch it as it approaches expiration, something can move from 25 cents to $20 dollars in very short time.
 
R1234 said:
I've been googling on 0DTE. Basically they're about trading the SPX and XSP (mini) options on the CBOE. Just trade it on the day of expiration. They european style so no worries about exercise.

I found this video about a lady doing 0DTE iron condors using index options (I found it fascinating):
0 DTE SPX MEIC Strategy - January 16, 2023 by Tammy Chambless - YouTube

I've been doing it in the form of Event Contracts for several months now and there is a lottery-like feeling to it. For example if you watch it as it approaches expiration, something can move from 25 cents to $20 dollars in very short time.
More...

So, what was the financial outcome and your conclusion?

Thanks
 
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