Zero-Day Options Are Reordering the Way the Stock Market Behaves
- Evidence grows that 0DTE boom is messing with equity patterns
- Intraday volatility and muted daily moves both linked to 0DTE
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Wall Street has accepted that derivatives trading will never be the same after the frenzy for fast-twitch stock options took hold. What it next has to absorb: The equity market itself is threatening to go the same way.
Evidence is starting to stack up that the craze for so-called zero-day contracts, known as 0DTE, is altering how underlying assets behave. The idea is that the surge in trading of these tools — essentially side bets — has become so big that it’s affecting the broader market.