Zero-Day Options Hit Trading Record on Trump Turmoil, Robinhood Push.
Zero-day options have become increasingly popular as investors seek to capitalize on the volatility induced by Donald Trump's policy agenda and Robinhood Markets Inc.'s expansion into new product offerings. The S&P 500's record number of trading days with at least one point move of 1% or more has fueled demand for derivatives with zero days to expire, reaching a record 56% of total options volume last month. As market dynamics continue to whipsaw, investors are taking on increased risk to profit from the uncertainty.
- The unprecedented nature of these rapid-fire trading sessions may be fueling a cultural shift in how traders approach risk management and position sizing.
- Can regulators effectively address the systemic risks associated with 0DTE contracts before they lead to a market meltdown?