Introduction and characteristics of doomsday options
1.What is a doomsday option?
Doomsday options (0DTE, Zero days to expiration) refer to option contracts that expire on the same day or are about to expire. For most US stock weekly options, the expiration date is usually every Friday. For SPY and QQQ, the exchange provides daily expiration option contracts from Monday to Friday.
2.Characteristics of doomsday options
（1）Good liquidity, active transactions, and small price spreads.
（2）Time premium will quickly decay: For out-of-the-money options, if they remain in the out-of-the-money state at the close, the value of the option will return to zero; for in-the-money options, their external value will quickly disappear within the day, leaving only their intrinsic value.
（3）Holding doomsday options carries the risk of being called over. Before trading such options, it is necessary to ensure that relevant option knowledge is understood and positioning management is done well.
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