How to Trade 0DTE Options on moomoo
Do you want to navigate market volatility and secure quick profits in the stock market?
Then you cannot afford to overlook end-of-day options, a vital tool for your investment strategy!
0DTE options, refers to options that are close to expiration, narrowly defined as day-to-day options, but broadly it is popular to think that options that expire this week (< = 5DTE)
Due to their excellent liquidity and relatively low entry costs, 0DTE options have grown increasingly popular among investors in recent years.
As of 2023, considering popular stocks with expirations within the current week, such as AAPL and NVDA, "0DTE Options" make up 50% of the trading volume.
According to the Nasdaq report: Analyzing Expiry Date Options Trading
Moreover, using SPX as an example and according to the "7date = '0DTE Options'" parameter, the trading volume for "0DTE Options" can reach as high as 68%.
Reference COBE report: Volatility Insights: Much Ado About 0DTEs - Evaluating the Market Impact of SPX 0DTE Options
Moomoo offers a list of "Top 0DTE Options by Volume", where you can find all option contracts that will expire within the current week(<=5DTE).
Step 1: Markets> Options> Top 0DTE Options by Volume Cards will show active doomsday option targets first.
Step 2: Tap“>” to Enter the List page. You can quickly filter option contracts by combining various option analysis indicators such as IV, IV rank, option volume, and more.
Step 3: Once you have identified the option you want to trade, click to access the details page, and then tap on "Trade".
Usually, people who play 0DTE Options will have a bit of a "gambbling" mentality, taking small bets for big gains.
However, trading expiring options without proper basis and with a gambling mentality can lead to losses.
When trading 0DTE options, please pay attention to the following three points:
1. Control your positions
Generally, most investors use options as a tool to hedge risks, so they keep the position size of options very low.
2. Timely Profit Taking and Loss Cutting
The volatility of expiring options is typically high, which means their prices can experience significant changes in a short time.
Taking profits in a timely manner can lock in potential profits, while timely stop-loss can limit potential losses.
3. Be Mindful of Margin Call Risks
Pay close attention to the status of your account funds to avoid being liquidated due to insufficient margin/cash in the account.
You can check the risk status of your account in the "Account" > "Risk Status" section.
Want to learn more about options, feel free to follow the moomoo learn options course. We will continue to bring you more exciting options content!
This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. Read more
