Understanding Same-Day Expiry Options: The Rise and Impact of 0DTE Options on the Market

• Same-day expiry options, popularly known as 0DTE options, are on the rise, and their impact on the market is being analyzed.
• Cboe Global Markets Inc. highlights that 0DTE options constitute 43% of total SPX options volumes, tipping to 50% in August 2023.
• The effects of these options on volatility and institutional operations are uncertain, though specialists draw conclusions from concrete data.

In today's dynamic stock market, the rise of same-day expiry options, widely known as "0DTE options," is reshaping the financial landscape. Noted key players like Cboe Global Markets Inc. and several financial stalwarts have acknowledged the growing significance of these novel options.

Interest in these options has surged notably. As reported by Cboe Global Markets Inc., 0DTE options currently account for a staggering 43% of total SPX options volume, a proportion that shot up to 50% in August 2023. This significant growth in volume points towards their growing appeal among investors.