The rapid growth in the number of ETFs employing option strategies to generate high yields for investors has caused a lot of fund sponsors to try a wide range of option strategies and tactics. Of these, the so-called zero days to expiration (0DTE) strategy seems to show a lot of promise.
Zero days to expiration trading involves selling calls in the morning that expire that afternoon. The options used are weekly issues, where traders make trades on the final day of the designated week. Only three securities have weekly options that trade every day. They are…
This post originally appeared at Investors Alley.