What is a 0DTE option?
A 0DTE option (short for Zero Days to Expiration) is an options contract that expires on the same day it is traded. Once the market closes, the option either expires worthless or settles in the money which make them good limited risk day trading product if you are buyer.
0DTE options are most commonly traded on highly liquid indices and ETFs such as SPX, NDX and SPY, where there are daily expirations. Because there is virtually no time left, their price is driven almost entirely by intraday price movement, volatility and order flow.
The key characteristics of 0DTE options are:
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Extreme time sensitivity – prices can double or go to zero in minutes – meaning you can lose money fast!
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Rapid theta decay – time value erodes very quickly – meaning you are speculating on market moves.
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High leverage – small moves in the underlying can lead to large percentage gains or losses – meaning you profits and losses are amplified compared to margin trading.
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All-or-nothing outcomes – many trades expire worthless
0TDE options are popular with day traders, professional desks and institutions hedging around events such as CPI data or Federal Reserve announcements.
Where to trade 0DTE options
To trade 0DTE options, you need access to same-day expiring contracts, which are typically available on index options and some ETFs.
One of the most popular platforms for this is Interactive Brokers.
| Name | Logo | GMG Rating | Customer Reviews | Commission | Min Deposit | CTA | Feature | Expand |
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GMG Rating |
Customer Reviews |
Commission $0.15 to $0.65 |
Min Deposit $2,000 |
Features:
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Interactive Brokers Options Trading ReviewProvider: Interactive Brokers Options Trading Verdict: When it comes to advanced options trading, Interactive Brokers outshines the competition with its unbeatable commissions, global market access, cutting-edge platforms, and tailored trading permissions. Make the smart choice and unlock your full trading potential with IBKR Advantage. Compare the facts, and see why Interactive Brokers is the clear winner for advanced options traders worldwide. Summary A great choice for US options traders who want access to a huge range of markets and the ability to create complex options strategies.
Pros
Cons
Overall4.4 |
How to trade 0DTE options on Interactive Brokers
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Enable options trading permissions
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Log in to Client Portal
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Go to Settings → Trading Permissions
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Request Options trading (and index options if applicable)
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Check your option level
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0DTE strategies often require higher permissions, especially for spreads or selling options
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Open the correct options chain
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Load the ETF or index itself (e.g. SPY ETF, not a CFD)
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Open the options chain and enable Weeklies / All Expirations
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Trade on the actual expiry day
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0DTE only appears on the day the option expires
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For most stocks, this is Friday
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For SPY and index options, expiries may exist on multiple weekdays
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If you don’t see 0DTE contracts, it usually means today is not an expiration day for that instrument.
Can you make money on 0DTE?
Yes, as with all trading, if you call the market correctly, you can make money, but as they are a high-risk product many inexperienced traders lose money.
0DTE options can deliver very large percentage gains if the market moves immediately in your favour. That’s why they’re attractive. But the flip side is brutal: if the move doesn’t happen fast enough, time decay will kill the position.
Professional traders tend to use 0DTE for:
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Event-driven trades (Fed, CPI, earnings reactions)
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Very short-term momentum or mean-reversion setups
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Hedging intraday risk
Retail traders often lose money by overtrading, oversizing, or chasing moves late in the day.
Are 0DTE good for beginners?
Short answer: no 0DTE options are not good for beginners, as they are a high-risk form of trading.
Longer answer: 0DTE options are one of the hardest option products to trade well. They move fast, punish hesitation, and leave no room for being “a bit wrong”.
For beginners, the main problems are:
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No time to adjust or manage risk
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Emotional decision-making under pressure
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Misunderstanding how fast theta decay works
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Treating trades like lottery tickets
If you’re new to options, learning with longer-dated contracts or defined-risk spreads is usually a much safer path.
Why 0DTE Options Have Exploded in Popularity
The popularity of 0TDE options hit new highs in August 2025, when SPX® 0DTE options accounted for a record 62.4% of total SPX® volume, averaging roughly 2.4 million contracts per day, according to Cboe’s Macro Volatility Digest. Notably, the flow is relatively balanced, with retail traders estimated to represent around 53% of 0DTE volume, highlighting how same-day expiries have become embedded across both retail and institutional trading strategies rather than being confined to speculative fringe activity.
What is the best 0DTE strategy?
There is no single “best” strategy, but the most commonly used approaches include:
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Defined-risk spreads (e.g. call or put spreads) to cap losses
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Selling premium near key levels, betting options expire worthless
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Event-driven directional trades with strict risk limits
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Scalping gamma during high-volatility periods
Successful 0DTE traders tend to focus on risk control first, profits second. Position sizing, exit rules and discipline matter far more than being right on direction.
How risky is trading 0DTE options?
0DTE options are powerful, fast-moving instruments that can amplify both skill and mistakes. They’re not inherently bad — but they are unforgiving. If you understand the risks, trade small, and know exactly why you’re entering a trade, they can be a useful tactical tool. If not, they’re one of the quickest ways to blow up an account.
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Having worked as a broker at Investors Intelligence and a multi-asset derivatives broker at MF Global (Man Financial), Richard has acquired substantial experience in the industry. His career began as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson), following internships on the NYMEX oil trading floor in New York and London IPE in 2001 and 2000.
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