Same-day expiration (0DTE) options are extremely active, with heavy volume attracting skilled traders. For example, recent $Tesla Motors(TSLA)$ 0DTE contracts saw very strong trading activity.
But alongside these opportunities come serious risks.
📘 If you want to explore how to trade them, start with The Options Handbook for a deeper dive. (And join the events at the end to win rewards!) 🎁
▶ Racing Against Time ⏰
Time doesn't always pass at the same speed, at least not in options. The closer you get to expiration, the faster that "extra" value in an option disappears.
For option sellers, this often means you don't have to hold your position for long, and you can still collect a tidy premium. Even if the stock price doesn't move an inch, the value of the option you sold can drop sharply, locking in your gains.
As shown in the following figure, the characteristic of accelerated loss of time value brings unique trading opportunities.
▶ Options’ “Black Friday” 📅
"0DTE" indicates options with zero days to expiration, meaning they expire today. On their last trading day, these contracts fluctuate quickly, attracting active traders.
It’s a fast-paced, high-stakes environment, similar to a Black Friday rush in the options market.
Here's what makes it so intense:
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Time Value Vanishes Fast
On expiration day, options lose whatever little time value they have left at lightning speed. If you're a seller, this is your chance to cash in quickly.
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Trading Frenzy
Everybody's scrambling to adjust or close their positions, so trading volume goes through the roof. The good news? It's much easier to get your trades filled.
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Wild Swings & Arbitrage Opportunities
With so many last-minute moves, prices can jump around unpredictably. This chaos can mean quick profits for savvy traders, but only if you know what you're doing. Remember: with big swings come significant risks.
🎉[Mini Events]🎉
How to Join
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Flip to Chapter 5 of The Options Handbook and find the time value acceleration decay chart shown in this article. Snap a photo and post it in the comments! 📸
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No handbook? Just share your own unique insight about option time value and you can still join the activity!
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Example: “The accelerated decay of option time value is not great for buyers—easy to end up at zero.”
Prizes
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🎁Participation Reward: 10 Tiger Coins for every valid comment.
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📓 Scholar Award: Participants who leave insightful comments will receive a free copy of The Options Handbook!
Event Period
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📅 Sep 5, 2025 → Sep 12, 2025
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Winners announced within 10 trading days after the event.
>> Redeem Options Handbook Now <<
>> Click here for the Simplified Chinese version <<
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