March 7, 2024 (NO COMMENTS)

Zero-days-to-expiration (0DTE) options trading is moving beyond equity indexes to other asset classes and sectors – notably exchange-traded funds (ETFs) – as investors seek to achieve more cost-effective and precise protection against same-day risks.

The market is “very hungry” for liquid ways of putting on targeted hedges, across assets and sectors on a shorter time scale, says Amit Deshpande, head of fixed income quantitative investments and research at asset manager T Rowe Price.

“This micro