0DTE options: zero days to expiration
1In one sentence
0DTE means zero days to expiration: options that expire today. They're cheap, move fast, and lose value by the hour.
With hours left, almost all of the price is the stock's position versus the strike. A small move can double the price, or wipe it out.
2Try it: watch the hours tick
Example: at the open, NVDA is $215. You buy a $216 call that expires at today's close. IV is 35%.
Prices from the Black-Scholes model with example numbers. Real prices also depend on supply and demand.
33 words to know
0DTEexpires today
An option bought on the day it expires.
Gammafast delta
How quickly delta changes. Near expiration it's huge, so prices swing wildly with small moves.
Time decayby the hour
With hours left, theta is so large that a flat stock drains the option quickly.
4Watch out
- Most expire worthless. Cheap 0DTE options usually go to zero; the big wins are rare.
- Small moves, big swings. A $1 move can change the price by 50% or more in minutes.
- Day-trade rules apply. Buying and selling the same day counts as a day trade (see the PDT lesson).
5Quick check · 3 questions · optional
Common questions
What are 0DTE options?
0DTE (zero days to expiration) options expire on the same trading day they're bought. They're inexpensive but highly sensitive to small price moves and time decay.
Are 0DTE options risky?
Yes. Most expire worthless, prices can swing 50% or more on small moves, and losses can be fast. They're best understood before being used, if at all.
Do 0DTE trades count as day trades?
Yes. Buying and closing the same option on the same day is a day trade under the pattern day trader rule.
Education only. Examples use illustrative numbers. Not financial advice; you make your own decisions.