A recent surge in popularity in zero-day options contracts could fuel a massive loss for the S&P 500, JPMorgan analysts caution, as the risky short-term bets again gain popularity from investors looking to cash in on the stock market’s volatility.... [+]Zero days to expiration options, often referred to as zero-day options or 0DTE, are puts or calls that expire within 24 hours of purchase, frequently relying upon a massive intraday swing to cash in on the potential gains.
the popularity of long-shot options bets, it’s largely Wall Street behind the 0DTE options craze: Institutional investors account for about 95% of same-day S&P options trades, according to Cheng.The most popular day for same-day options trades during the three-month period ending last Monday was February 3, when the Labor DepartmentFurther Reading