0DTE means the option expires today. There’s almost no time premium left overnight — because there is no overnight. Everything is about today’s range, liquidity, and whether you’re trading a plan or gambling on a headline.
Why traders use 0DTE
- Defined horizon — thesis must play out today
- Lower premium vs longer-dated options (when IV isn’t extreme)
- Tight feedback loop for learning price action
Why 0DTE is dangerous
- Theta and gamma are extreme — small moves can erase the premium fast
- Economic releases (CPI, NFP, FOMC) can gap through stops
- Oversizing is the #1 account killer
Before sizing a 0DTE trade, check the expected move calculator, use the position size calculator, and review the economic calendar.
A simple framework
- Know the day’s high-impact events
- Estimate the expected move
- Size so a full loss is an acceptable % of the account
- Have invalidation — not just a target
If you want alerts that include the why (levels, thesis, risk), see our SPX Plays review or the Discord comparison.