Full transcript
0:00Options that expire at the end of the
0:01same day that you're trading them are
0:03known as zero DTE options, which stands
0:06for zero days to expiration. Zero DTE
0:09options trading has become incredibly
0:11popular. You see, zero DTE options
0:14expire at the end of that day and your
0:16trade is resolved that day. You don't
0:18have any overnight risk. That's huge.
0:21So, if on the opening bell on December
0:2212th, when the SPX index opened at 3942,
0:26you had sold a zero DTE put on the SPX
0:29index with a strike price of 3940, you
0:32would have collected 1015 in your
0:34account. Now, if by the end of the day
0:36the index closes at any price above
0:383940, then that option expires worthless
0:41and you just pocket that 1015. Well, on
0:44that day the index closed at 3990 and so
0:46that put expired worthless. Any option
0:49that you sell which expires worthless is
0:51a huge win for you. In this case, you
0:53just pocket the $1015 you collected that
0:56morning and you're done for the day.