How 0DTE Options Move Markets

Large 0DTE short dated options flow is coming into the market, and seems to be pushing the S&P500 around. We analyze this options flow through our HIRO tool which measures the hedging impact of 0DTE options trading.

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At SpotGamma, our mission is to empower traders to make confident decisions by pairing precise data with clear insights. We do this by monitoring the options market and publishing actionable metrics for traders and investors at all levels.

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*Note: This presentation is intended for general information and entertainment purposes only. No mention of company names, trading strategies or illustrative examples constitute investment advice. SpotGamma advises you to seek investment advice from a licensed professional.

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[coreybell]

Thank you Spot Gamma for validating what I thought had been happening in the SPX due to 0DTE trade flow. Also I think that volume has actually increased since there are now expirations everyday.

[fortnite-terminator]

@spotgamma Where can i see this option flow realtime? Thanks

[fuzzyboomboom]

So the premise is that lots of 0dte SPY and SPX options are being hedged by MM's with countering options positions and long or short stock trades, and that just this action alone around the options is enough to move the entire index? I am not compelled to believe that based on what you present.

There's avg 4 billion shares traded on the S&P daily. Is the SPY & SPX options action big enough to make a ripple in that big bucket?

The lines on the graphs might indicate some correlation, but maybe correlation is not causation. It's possible to get bamboozled by too much data.

Anyway, your videos are interesting, so thanks. When you show you have some ideas that are actually tradeable, with an indication of results achieved, maybe I'll take a chance on the $89/month membership.

[spqrspqr]

which option expiration is that supposed to be ? the main one (monthly) was last Fri. Are u refering to weekly option expiration which is every Fri?

[KP]

This has happened virtually every day for the last 8 days or so. Glad you explained it. The only exception was Tuesday when the market dropped big. Do you know why that dip wasn't bought intra-day by people doing this?

[zofg]

I kinda wanna disagree that option buys are in the morning. A consistent trend I have seen is option sellers coming to sell the xx00 strike early in the morning

[loupasternak]

some of those SPY options paid off 10x on that rally

[ScruffyWarlord]

This channel is a whole lot of blabbing on with nothing to help people trade the market.

[jmd]

The Fed has the room for a 50point or maybe a 100point hike. Housing & rent needs to fall. Not only that but we need zoning changes. America's land mass is huge, no reason for housing to be so unreachable when birth rates have been going down.