Wall Street examines risks around short-dated options as warnings rise

10 March 2023, 12:00 am

1 min read

Reuters reported exclusively that a recent explosion in trading in a type of equity derivative security has prompted Wall Street players and a major clearing house to examine potential risks. The so-called zero day to expiry options (0DTE), which refers to contracts that expire in less than 24 hours, offer retail and institutional traders a relatively cheap, though high-risk, way to bet on intra-day swings in stock prices.