Despite the growing risk to foster market turmoil, 0DTE is a term few investors have heard of.
0DTE stands for zero days to options expiration. These are put-and-call options on individual stocks and indexes that expire within 24 hours. 0DTE options may seem like speculative YOLO (you only live once) bets at first glance. However, when one appreciates how brokers hedge options, they then grasp the potential for these options to generate significant volatility in individual stocks and the market.