Image 0DTE Options – The Move to Shorter Duration and What It Means for Risk

The discussion of 0DTE options currently includes wide-ranging perspectives on how they are being used, and what broader market risks that might create. But very little conversation has been centered around the mechanics of the shorter term options more generally and why investors have been moving that direction for quite some time.

Join OCC’s Principal of Investor Education, Mat Cashman, for a deep dive into shorter duration options – and the risks that are inherent within optionality when you naturally subtract time from the equation. 

  • Optionality and Time
  • The effect on Greeks as expiration nears
  • Gamma: the potential energy within all options
  • The shift to shorter duration and why it might be happening

This Webinar involves Options Trading
To register you must read Characteristics and Risks of Standardized Options
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This material is from The Options Industry Council (OIC) and is being posted with its permission. The views expressed in this material are solely those of the author and/or The Options Industry Council (OIC) and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

Disclosure: Options (with multiple legs)

Options involve risk and are not suitable for all investors. For information on the uses and risks of options, you can obtain a copy of the Options Clearing Corporation risk disclosure document titled Characteristics and Risks of Standardized Options by visiting ibkr.com/occ. Multiple leg strategies, including spreads, will incur multiple transaction costs.