0DTE Options

  • What are Zero Days to Expiration (0DTE) Options and How They Work?

    Zero Days to Expiration (0DTE, or ZDTE) Options refers to options contracts with no time value left i.e. their expiration date is the next trading day. 0DTE options are typically used by traders who want to take advantage of expected price movements in the underlying asset in the very short term. The price of an option is made up of two components: intrinsic value and time value. Intrinsic value is determined by the difference between the current price of the underlying asset and the strike price of the option. Time…

    February 3, 2023