Summarized by Dodly:
How We Trade 0DTE Vertical Spreads (without over spending) | Zero Days to Expiration Options
Audio Summary
Summary
Thinking about trading zero-day options? You should know that while 0DTE vertical spreads are a great way to trade with less capital, they carry ten times the directional risk of traditional 45-day trades due to intense price sensitivity. Even though you’re only collecting about an eighth of the credit you’d see in a longer-dated cycle, the high speed of these moves means a single zero-day spread actually matches the intraday risk of a 45-day position. It’s a high-stakes, high-speed environment where you have almost no room for error, making it a powerful tool for directional traders but a dangerous one if the market turns against you.