Clueless Wall Street Is Racing to Size Up Zero-Day Options Boom
- BofA pushes back on JPMorgan’s “Volmageddon 2.0” warning
- Peter Tchir pens a story on 0DTE’s life and picks a theme song
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It’s a time-honored tale. A new force enters the market — quantitative easing, leveraged ETFs, high-frequency trading — and a cottage industry on Wall Street is born devoted to exposing the risks it supposedly poses for investors.
Now it’s happening again with a new breed of high-octane stock options known as zero-day-to-expiration, or 0DTE, which allows investors to buy and sell with contracts that have a shelf life of less than 24 hours. Everyone from amateur sleuths on Reddit to highly paid Wall Street technicians have joined the fray, dispensing daily theories about how big a threat these quick-trigger instruments pose.