The shorter my timeframe, the shittier the market. ~ Brian Lund @bclund

That quote was uttered during a Twitter spaces I hosted yesterday in which we discussed the emergence of “0-DTE” options and the opportunities and challenges they are spawning.

As Brian brought up, the phrase “0-DTE” which stands for “zero days until expiration” is a bit of a misnomer as options that are expiring today were not necessarily first listed for trading on the same day that they expire. Regarding SPY or SPX options, some of these “daily” options are first listed for trading as far as two weeks from expiration day. So if you were to look at the options chain for SPY, you would see options expiring every day over the next two weeks.

As many of you know, I’m a frequent trader of SPY and SPX options. One of the things I do on a daily basis in my personal trading is to manage an ever-evolving delta-neutral-ish position in the S&P 500.

And in recent weeks, I’ve jumped into the deep end of the liquidity pool that is daily expiring options.

There appear to be attractive opportunities here. [Read more…]