Zero-Day Options Boom Will Only Grow Even As Some Investors Fear Disaster

• Zero-day options (0DTE) tied to the S&P 500 have seen a significant increase in notional value, reaching approximately $862 billion in April 2024.
• The majority of respondents in a Bloomberg survey anticipate the continued growth of 0DTE options, but opinions are divided on whether this growth will be steady or end catastrophically.
• 0DTE options, which expire within 24 hours, have become increasingly popular as investors navigate economic uncertainty and central bank policies.
• Concerns have been raised regarding the impact of ultra-short-dated options on stock volatility, with research indicating that retail investors often lose money using them.
• Despite concerns, there is widespread agreement among respondents, including professional investors, that retail access to 0DTE options should remain readily available.

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