Not so long ago, you could scarcely go a day without reading something, somewhere in the financial media about the proliferation of ultra-short-dated options and specifically 0DTEs.
The volume of such coverage has seemingly dissipated. In fact, you rarely see feature stories on 0DTEs anymore, and as such, you might be inclined to think waning attention’s a function of diminished interest in the products themselves.
But that’d be wrong. Dead wrong, in fact.
As Nomura’s Charlie McElligott noted on Monday, 0DTE volume has never been higher. On February 21, for example, more than two-thirds of SPX /SPY options volume was ultra-short-dated. The table on the right, below, gives you a snapshot (click to enlarge, as always).
On the left, above, you can see the evolution of the equity options space by time to expiry. Suffice to say ultra-short-dated options are absolutely dominant.
Overall 0DTE volume, McElligott remarked, is near 100%ile on a three-year lookback, and the rolling one-month tally’s at all-time highs too for all intents and purposes.
As noted here earlier Monday, this makes it quite difficult to distill signal from noise during any given session.
We put Trump in charge of the biggest casino in the history of mankind.
Quote from the NYT story about his prior casino experience added without comment: “But even as his companies did poorly, Mr. Trump did well. He put up little of his own money, shifted personal debts to the casinos and collected millions of dollars in salary, bonuses and other payments. The burden of his failures fell on investors and others who had bet on his business acumen.”
During the casino bankruptcy he left thousands of employees poorer because he didn’t even give them their last paychecks. He walked back to the apprentice and began firing someone each week for sport.
I read in Bloomberg about plans to shore up margin requirements in 0dte options, for instance evaluating and repricing margin buying power at noon Chicago time. Of course deliberations are heated. The issue that 0dte escape margin issues due to lack of intraday margin repricing. “Trouble happens when really smart people deploy a great deal of leverage.”
https://finance.yahoo.com/news/wall-street-pushes-back-tough-130000835.html