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.

Do 0dte options count as a day trade?

On an administrative trading note, if a trader opens and closes a 0DTE options contract on the same day, it'll be counted as a day trade, which is defined as opening and closing a position on the same trading day. However, if they buy or sell a 0DTE option and it expires worthless, it will not count as a day trade.

Should you trade 0dte options?

There's a lot to consider before you start trading 0DTE options, like the fact that leverage is a two-edged sword that can cut both buyers and sellers. If you think about it, every options contract on an underlying optionable index, stock, or ETF becomes a 0DTE contract on its expiration date.