Zero days-to-expiration options, a sophisticated trading strategy, are now more accessible to retail investors. These options allow investors to make short-term bets on market direction, expiring on the same day they are traded. CBOE Global Markets, led by CEO Ed Tilly, offers these options every weekday, making them attractive to those looking for quick investment opportunities.

Unlike stocks or ETFs, zero days-to-expiration options settle in cash at the end of the trading day, offering a unique trading experience. This article explores the growing interest in this strategy and its potential benefits for investors.

Zero days-to-expiration options are contracts that expire on the same day they are traded. These options have gained popularity among investors due to their short duration, allowing investors to take advantage of immediate market fluctuations.

CEO Ed Tilly believes that the appeal of these options lies in their ability to offer investors the shortest duration of time left in a contract. This allows investors to express their market opinions in the short term without the need for physical delivery of assets like stocks or ETFs.

While zero days-to-expiration options have attracted retail investors, Michael Green, chief strategist and portfolio manager at Simplify Asset Management, suggests that these options may be most effective as a tool for professionals.

Green notes that a significant portion of trades in these options come from retail investors, but he emphasizes the importance of being a sophisticated investor when using this strategy. He suggests that many retail investors engage in speculation rather than focusing on a well-defined return profile, making it more challenging to achieve consistent profits.