Asset Management :: What Are 0DTE Options? Same-Day Expiry Options Explained

Hello everyone.

 

Today I want to talk about one of the hottest topics in the options market right now: 0DTE options, or "zero days to expiration" options.

 

Did you know that options expiring on the very same day they're traded now make up more than half of all options volume in some major indexes?

 

The options market has been growing at a remarkable pace lately. In the second quarter of 2026, global options average daily volume (ADV) reached about 72.8 million contracts, up more than 19% year over year.

 

Much of that growth is being driven by 0DTE options. In this post, I'll walk through the basics of options, what 0DTE options actually are, why they've become so popular, and the risks every investor should keep in mind.

 

Options 101

 

Before diving into 0DTE options, it helps to review what an option actually is. An option is a derivative contract that gives the holder the right, but not the obligation, to buy or sell an underlying asset at a fixed price, called the strike price.

 

A call option gives the right to buy, and a put option gives the right to sell. Call buyers benefit when the underlying price rises, while put buyers benefit when it falls.

 

The price paid to buy an option is called the premium. For a buyer, the maximum possible loss is limited to that premium. Sellers (writers), on the other hand, can face much larger losses depending on how the market moves, which is why writing options requires far more careful risk management.

 

Every option has an expiration date. Traditionally, stock options expired weekly or monthly, but expiration cycles have become much more frequent over time, eventually giving rise to options that are listed and expire on the very same day.