Zero-Day Options Priced Appropriately Despite Market Volatility: Insights From Cboe Webinar With Benzinga

May 07, 2025 at 09:17 AM EDT

By Meg Flippin Benzinga

ZINGER KEY POINTS:

Market volatility is at COVID-19 levels, but zero days to expiration option trades take it in stride.

DETROIT, MICHIGAN - May 7, 2025 (NEWMEDIAWIRE) - Despite recent increased market volatility, zero days to expiration, or 0DTE options, tend to price appropriately for the current market conditions.

During a Benzinga webinar, Henry Schwartz, Vice President, Derivatives Market Intelligence at Cboe, talked about the volatile market environment and trading 0DTE options.

“The options market is a pretty efficient marketplace, things are generally priced right. You have days when you would rather be buyers and days when you would rather be sellers, but overall it's pretty consistent,” Schwartz says. “This year is definitely an outlier. There’s pretty extreme volatility and different behavior than we’ve seen in a long time.”

https://youtube.com/live/LG7ulPyPRdQ?feature=share

Zero Day Trading Strategies

When it comes to 0DTE options, Schwartz says there are two primary types of strategies: option buying or those tactical trades betting on the direction of the market for the day or trading the spread.

Either way, Schwartz says people should pick the trade that matches their style. Some traders, for instance, may wait until after 10:00 a.m., when the markets tend to calm down a bit, while other traders may want to pull the trigger during more active times.

Have A Plan When Engaging in Zero-Day Trades

Before executing a 0DTE options trade, Schwartz recommends asking yourself the following:

What’s your goal? Are you trying to make a little money in exchange for a little risk or are you trying to pull off a larger payout trade?
What is your profit target?
What is your risk tolerance?
How much of your portfolio are you putting in your trade?

Once you come up with your trading plan, consistency is the key to success with ODTE options trades.

Benefits Of Trading 0DTE Options

0DTE options provide numerous benefits for traders, including high liquidity and potentially lower premiums. Plus, with 0DTE options available every trading day, there is more flexibility to take advantage of short-term price movements and react to current events.

Options are a time-tested and highly-regulated investment tool that have been traded on registered and regulated exchanges for decades. At the same time, every financial investment comes with a risk. Understanding potential profit and loss is crucial to anyone involved in the financial space.

“You can’t always assume everything will go perfectly,” says Schwartz. “COVID was a great example of the markets doing really bizarre things. Don’t impose ‘this doesn’t make sense’ on the markets, it will just sting you.”

Ultimately this seminar, which also laid out popular 0DTE option strategies and tools traders can leverage, underscored that having a plan and being consistent are the keys to success.

Featured image by Maxim Hopman on Unsplash.

This post contains sponsored content. This content is for informational purposes only and is not intended to be investing advice.

This content was originally published on Benzinga. Read further disclosures here.

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Zero-Day Options Priced Appropriately Despite Market Volatility: Insights From Cboe Webinar With Benzinga

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