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“0 DTE” Options - Explained for Beginners
Have you seen the term “0 DTE options” being thrown around? I remember being a beginner to the world of option trading and having no idea what this phrase was referring to. To be clear, you can make this topic as complicated as you want by going into deep mathematical equations, or, you can keep this topic very simple and practical. I will be taking the simple approach and keeping this topic practical. In other words, if you are not looking to dig deep into the equations, but rather, just want to understand them “so I can potentially trade them and use them to make money”, this is the approach I will take. Options oftentimes get a bad wrap for being very confusing, which can be the case; however, when they don’t need to be overly complicated. This video is for beginners and those who have no idea what 0 DTE options are. Let’s talk about what these options are and the key relationship you must understand in order to know the facts that matter for you as a day trader.
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