0DTE Options Time Decay Research + How to Take Advantage of It

Date: 2024-10-08 14:09:01

×

https://optionalpha.com – In this video, I explain the concept of time decay (theta) in options trading, focusing specifically on 0DTE (zero days to expiration) options. While many traders are familiar with time decay over longer durations, 0DTE options experience rapid decay within just one trading day and so we wondered if the same decay occurs or if it was more linear?

So, we conducted extensive data collection for 30 calendar days between the end of July and August 2024, focusing on SPX 5-wide vertical spreads that are OTM, ITM, and ATM. In the video I’ll go through the results and show you how to take advantage of this new research within your bots and automations.

Read the full research article here: https://optionalpha.com/blog/0dte-options-time-decay

Find new 0DTE trades with the 0DTE Oracle here: https://app.optionalpha.com/zdte

Click here to Subscribe – https://www.youtube.com/OptionAlpha?sub_confirmation=1