Zero DTE (0DTE) Options

Options contracts that expire on the same day they are traded, offering maximum leverage and the most aggressive time decay profile possible. The introduction of daily S&P 500 index option expirations turned 0DTE trading into a phenomenon, with daily volumes sometimes exceeding those of all other option expirations combined. These instruments attract both sophisticated day traders looking for leveraged directional bets and premium sellers harvesting rapid theta decay, though the risk of sudden, outsized losses is extreme.