0DTE: Inside the Explosion of Ultra-Risky Options Trading | WSJ

Traders are piling into zero-days-to-expiration options, or 0DTE options. They are a cheap, fast but risky way to bet on the market that offers the chance of explosive returns if those bets are correct. These big wins can also lead to big losses as they are extremely risky investments. Retail traders have played a big role in driving 0DTE trading volumes to record highs.

WSJ explains the rise and effect of 0DTE options on the stock market.

Chapters:
0:00 0DTE options
0:28 How it works
2:34 How it got so popular
3:32 How it’s impacting the market

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#0DTE #Investing #WSJ

[millenialmusings]

The fact that he's launching his own small course tells me everything I need to know about how much money he actually makes from doing 0dte 😂😉💦

[robertobarasa]

“First thing I’ll do is head over to twitter, that’s where I get all my news”…….absolute legend 😅

[flyingzeppo]

For anyone watching this who doesn't understand basic math, what he is betting on (day-to-day stock movement) has been shown to be completely random. WSJ chose not to feature people who were losing money doing this. Imagine that there are a bunch of people betting on coin flips. They all have their own "system" set up to predict coin flips. Well, basic statistics will tell you that within that large group, some people will make a lot of money betting on coin flips. WSJ would then make a video about those people, ignoring the fact that it's completely random. WSJ should follow this guy for several years and see what his average yearly earnings are. There's a good chance that they'll revert to the mean.

[AlanSmith]

The end game for this guy is selling these courses.

Thats how he makes his money. Not by trading, because I guarantee he will likely lose more than he makes.

[gustavoaraujo]

So he will make 6-figures per month next year (enough for living a dream life) and still teach an options course? Sketchy, to say the least.

[atanaskatsarov]

Love how the trader looks at graphs and thinks he knows something

[tony]

Bro’s definitely been betting his parents retirement money

[Couchlnvestor]

But while the stock market has a rather tasking nature, it’s also a very rewarding endeavor when you have a proper plan and strategy I know for a fact! :)

[JasonMomos]

I can already see that guy selling the "How to 0DTE" course.

Edit: Comment was posted as soon as they explained how the guy trades, but 5:03 made me feel like a prophet.

[andrewm]

He talks about launching an options trading course next year. That's the only way guys like him actually make money, selling expensive courses to be people who don't know better. If he actually knew how to make a lot trading options he wouldn't sell a course, he'd be too busy making money with his options strategy for it to worth his time.

[darryllew]

Theyre not traders, theyre gambler hahaha

[SimbolicProductions]

I’m so glad people like him exist. There have to be losers for the winners to exist

[paulm]

Why do they always want to sell courses.

[MarvishaN]

I am very new to the trading scene, watched an almost 2 hour tutorial on how to trade options, but I still don't really get it. I really want to learn how to properly do it. I read these charts wrong most times. Do you ever trade for others? I'm interested. I have about $95k set aside to test the financiaI market waters.

[FullLengthInterstates]

letting trading course guy have the last word is the responsible reporting we know and love

[maemilev]

If he can afford his quad monitor setup. He can afford to lose way more.

[limaradam]

I realized that the secret to making a million is saving for a better investment. I always tell myself you don't need that new Maserati or that vacation just yet. That mindset helped me make more money investing. For example last year I invested 80k in stocks and made about $246k, but guess what? I put it all back and traded again and now I am rounding up close to a million

[jonathanb]

How the F does a college kid have $65K to lose? Pretty sure I had $10.50 to my name when I was in college.

[TheGreatMandalore]

If we take aside the whole gambling (and this is 100% pure gambling), there is also him vs. algotrading. There are teams of thousands of the brightness researchers working for investment banks that are being paid 400k just to optimize the trading algorithms. If one person thinks they can calculate and beat the AT then it is a fool

[FredMeyer-noji]

Excellent video as always but here is my problem I have been making losses trying to make profit trading. I thought trading demo account is just like trading the real market... can anyone help me out or at least advise me on what to do