"SPX 0DTE" refers to an options strategy involving the S&P 500 Index (SPX) options with 0 Days to Expiration (0DTE).
-
SPX: This is the ticker symbol for options based on the S&P 500 index, which represents a basket of 500 large-cap U.S. stocks. SPX options are cash-settled, European-style options, meaning they can only be exercised at expiration.
-
0DTE: Refers to options that are set to expire on the same day they are traded, meaning these options have zero days until expiration.
The strategy involving SPX 0DTE options is popular among traders who are looking to take advantage of very short-term movements in the market, often through high-risk, high-reward trades. Traders typically use strategies like buying calls or puts, or selling premium through credit spreads or iron condors, as these options can experience rapid time decay on their last day of trading.
Would you like to know more about specific strategies or risks related to SPX 0DTE options?
