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What is 0dte options?

0DTE refers to Zero Days to Expiration: the last day of expiration of an options contract. Selling and buying options at zero days to expiration offers uniquely attractive trading opportunities. Most Stocks, ETFs, indexes, and futures contracts are optionable (have options), and all options contracts have an expiration.

What is a 0dte trade?

0DTE trades are popular among option writers. The play is to offload on the last day that the option is valid and collect the rapidly decaying premium. When purchasing an option, you pay the person selling it (the other party in the trade) for the privilege of giving you the right to buy the underlying asset at the specified strike price.

What is a 0dte call?

A 0DTE call is therefore a call option that only exists for a single trading session. As a reminder, a call option is a derivative contract that gives the buyer the right, but not the obligation, to be long 100 shares of an underlying asset at a certain price (called the  strike price) on or before the expiration date.

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