1. What are 0DTE Options?
0DTE options, or zero days to expiration options, are options contracts that expire within the trading day, and also generally refers to the option contract that is about to expire.
Most weekly options expire on Friday. For actively traded symbols like SPY and QQQ, exchanges provide weekly options that expire every trading day of the week.
2. Features of 0DTE Options
(1) Good liquidity and small bid-ask spreads.
(2) Time premium rapidly decays:
For out-of-the-money (OTM) options, if they are still OTM upon expiration, their value turns zero;
For in-the-money (ITM) options, their extrinsic value quickly decays within the day, leaving only intrinsic value.
(3) Holding 0DTE options has the risk of them being exercised. Make sure you have adequate knowledge before trading and do a good job in position management.
3. Familiar Option Indicators
(1) "Total options trading volume" means the total number of contracts traded on the day for all options on the same underlying stock or ETF.
(2) "Total options open interest" means the sum of the open interest of all options on the same underlying stock or ETF.
(3) "Put/Call Volume Ratio" represents the ratio of total put options to total call options volume.
(4) "Put/Call ratio" indicates the ratio of put options to call options in open contracts (the contract has not been exercised or closed).
(5) "Increased open interest" means the difference between the open interest on T day and the open interest on T-1 day, and the difference is greater than 0.
(6) "Decreased open interest" means the difference between the open position on T day and the open position on T-1 day, and the difference is less than 0.
(7) "IV Percentile" indicates the quantile of the stock's implied volatility in the past year, reflecting the "level" of the current IV value.
(8) "HV Percentile" indicates the quantile of the stock's historical volatility in the past year, reflecting the "level" of the current HV value.