What are 0 Days To Expiration (0DTE) Options?

0DTE refers to option contracts expiring on the same day they are being traded.

Note: 2 hours before the market closes, you cannot open a new position (buy to open/sell to open). The system will also cancel any unmatched open orders.

However, you may still close off your current position before the market closes.

What are the characteristics of 0 Days To Expiration (0DTE) Options?

Value

If the option is In-the-Money at the expiration trading day's close, the intrinsic value is the difference between the underlying symbol's price and the option's strike price. Out-of-the-Money has no intrinsic value at the trading day's close.

Both In-the-Money and Out-of-the-Money options will have minimal to zero extrinsic value (time value) at the expiration trading day's close.

Risk

Trading 0DTE options involves higher risks and volatility, and market movements may impact their prices more. When investing in 0DTE options, you should pay close attention to the market price, market liquidity, bid/ask spreads, transaction costs, and other factors.

What is bullish/bearish flow in options?

Every option transaction has a guiding significance on the trend of the underlying.

Green bars indicate a bullish flow where there is an inflow of net premiums.

Red bars indicate a bearish flow where there is an outflow of net premiums.