0DTE options, known for ‘lottery-like payoffs,’ now make up about 50% of S&P 500 options trading volume. Garrett DeSimone, head of quantitative research at OptionMetrics warns of the risks: ‘You can go completely broke, but there are occasional Lotto-sized payouts.’ Despite their rapid growth, concerns linger about potential market destabilization if they expand to individual stocks.
Wall Street’s Hottest Lottery Ticket: Zero-Dated Options
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