A 0DTE (zero days to expiration) options strategy opens and closes on the same day as the contract's expiration. The "zero days" means no remaining time until expiration — the trade must be resolved within a single trading session. SPX offers daily expirations Monday through Friday, which is why 0DTE trading has grown substantially in recent years.
How 0DTE Options Work
On any given trading day, SPX has options expiring that same day. These are the 0DTE options for that session.
Key characteristics:
- Remaining time value at open: On expiration morning, these options still carry some time value — typically small
- Rapid theta decay: Time value collapses entirely by market close (3pm ET for SPX)
- Higher gamma risk: Small moves in SPX produce larger changes in option value near expiration (high gamma)
- Cash settlement: SPX settles in cash at the official settlement price
Popular 0DTE Strategies
0DTE Iron Condors
The most systematic 0DTE approach:
- Enter an iron condor in the morning (after initial volatility settles, typically 9:45–10:30 AM ET)
- Short strikes placed at the edges of the expected daily range
- Close at 50% of credit, or let expire worthless if within range
- Stop-loss if the underlying moves significantly against one side
Typical setup:
- Credit collected: $0.25–$0.75 for a 5–25 point spread
- Time to profit target: hours
- Maximum exposure: intraday only
0DTE Strangles and Straddles
More aggressive; collected premium from both sides without the long option protection. Defined-risk versions (spreads) are preferred for retail traders.
0DTE Vertical Spreads
Single-side directional plays on expiration day — either a bull put spread or bear call spread based on intraday market view.
The Risks of 0DTE Trading
1. Gamma Risk
Near expiration, gamma is extremely high. A 1% move in SPX can cause a 0DTE option's delta to swing dramatically, creating rapid P&L swings. What looks like a comfortable position at 10am can be at maximum loss by 11am.
2. No Time to Recover
With multi-day iron condors, a bad day can partially offset over the remaining holding period. With 0DTE, there's no recovery time — the trade expires that day.
3. High Frequency Means High Commission Volume
Trading 0DTE daily (250 trading days/year) generates significant commission costs that reduce net returns.
4. Requires Active Intraday Management
Despite the appeal of "fast income," 0DTE positions need monitoring during the session — especially if the underlying makes a sharp move. For traders who want low monitoring requirements, this is a meaningful drawback. Compare this to how iron condors run without watching the screen at 30–45 DTE.
0DTE vs. Multi-Day Iron Condors
| Factor | 0DTE | 30–45 DTE |
|---|---|---|
| Gap risk | None | Present |
| Premium per trade | Low ($0.25–$0.75) | Higher ($1.00–$2.00+) |
| Gamma risk | Very high | Lower |
| Recovery time | None | Weeks |
| Monitoring required | Active intraday | Periodic alerts |
| Annual trades | ~250 | 12–24 |
| Automation complexity | High | Lower |
What This Means for Systematic Traders
Tradematic is an automated iron condor trading platform. It uses 30–45 DTE iron condors, not 0DTE. The reason: multi-day strategies offer more premium per unit of risk, require less intraday management, and are more compatible with full automation.
For traders who want to understand how 30–45 DTE iron condors are set up, the iron condor setup checklist walks through the key entry parameters. CBOE publishes data on SPX options structure and expirations at cboe.com.
Frequently Asked Questions
Is 0DTE trading profitable? Some traders profit from 0DTE strategies, but high gamma risk, commission volume, and the need for intraday monitoring make it less suitable for systematic, low-maintenance approaches. Long-term profitability data at the retail level is limited.
Can I automate 0DTE trading? Partially — entries can be automated, but intraday management and the narrow entry window (30–60 minutes in the morning) add complexity. Full automation is more difficult than with multi-day strategies.
What's the minimum account size for 0DTE? Lower than multi-day — a 5-point SPX spread may cost only $500 max loss per contract. But small credits ($0.25–$0.50) make it harder to generate meaningful income on smaller accounts.
Does Tradematic use 0DTE? No — Tradematic uses 30–45 DTE iron condors, which offer better premium per unit of risk and require less intraday management. For options traders who want automated execution without screen time, this is the more practical structure.
How does 0DTE compare to monthly iron condors for income generation? Monthly iron condors at 30–45 DTE generate more premium per trade ($1.00–$2.00+ vs $0.25–$0.75) and require far less active monitoring. The tradeoff is overnight gap risk, which 0DTE avoids. For an income-focused systematic strategy, the monthly approach has a more favorable risk/reward profile.
Conclusion
0DTE options strategies offer fast theta capture and no overnight risk — at the cost of extreme gamma risk, no recovery time, and active intraday management requirements. For traders who want systematic, low-monitoring income, multi-day iron condors at 30–45 DTE provide better risk/reward and easier automation.
Start your 7-day free trial and run systematic 30–45 DTE iron condors — premium income without intraday monitoring.
Trading involves risk and losses can occur. Past performance does not guarantee future results. Options trading is not suitable for all investors. Only allocate capital you are comfortable risking.
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