Robinhood, a popular trading platform, allows traders to place options trades directly from their app, including 0DTE options.
Zero days to expiration (0DTE) options trading is a strategy among traders looking to potentially make quick profits - with a significant risk of losing all of their money invested immediately.
These options contracts are due to expire within the same trading day, making the window for executing trades extremely small.
However, it's important to understand this is a risky strategy where 100% loss of investment capital is likely.
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0DTE options refer to options contracts with zero days to expiration.
In other words, these are options contracts that expire on the same day they are traded. They are also commonly referred to as "same-day expiration" options.
0DTE options are a type of very short-term or intraday trading instrument. They are popular among traders looking to capitalize on short-term price movements or take advantage of specific market conditions within a single trading session.
Trading 0DTE options requires precise timing and often involves higher levels of risk compared to options with longer expiration periods.
Due to their short lifespan, 0DTE options can experience rapid changes in value, making them suitable for experienced traders who are adept at managing risk and making quick decisions.
It's important for traders to be aware of the unique characteristics and risks associated with 0DTE options, including the potential for rapid and substantial losses if the underlying asset doesn't move as anticipated within the short timeframe.
Additionally, liquidity can vary significantly for these options, which can impact their pricing and execution.
As with any trading strategy, traders should conduct thorough research, practice risk management, and consider their individual trading objectives and risk tolerance before trading 0DTE options.
To place an options trade on Robinhood, follow these steps:
If you want to learn more about Robinhood, check out our full beginner's guide about how Robinhood works here.
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