Day Traders Lose $358,000 Per Day Gambling on Zero-Day Options
- New study tallies retail’s misfortune during the trading boom
- Researchers warn about growing risk should 0DTE broaden out
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Day traders are paying a price for their newfound love affair with one of the hottest trades in the equity market.
Rushing to join the trading frenzy in options with ultra-short lifespans, known as 0DTE for zero-days to expiration, small-time investors find themselves struggling to make it work. A fresh study from researchers at the University of Muenster in Germany shows the crowd may have lost $358,000 a day since May 2022, when it became possible to trade expiring contracts every day.