What are 0DTE Options?

0DTE Options, also called “same day expiring” Options, are Options contracts with zero days remaining to expiration. This means that when you purchase a 0DTE Option, it will either be exercised or expire at the end of that trading session. As such, the window of time to manage these positions is narrow. 0DTE Options can be profitable under the right conditions, but they also carry high risk, and they won’t be suitable for every investor’s objectives or risk tolerance. Investors should be aware of the pros and cons before trading these products.

What are the pitfalls of 0DTE Options?

Time is working against you. If you decide to buy 0DTE calls or puts to speculate on price movement, you'll typically need the stock to make a sizeable move in a short time to make a profit, especially for low-priced OTM Options.

Understanding the impact of time decay is critical to avoiding some common pitfalls in Options trading. On the time decay curve below, the rate of decline in time value generally accelerates as the Option approaches expiration, especially for at-the-money Options: this has stark implications for the risk-reward profile of these assets.

What are the trading hours for Options on the day of expiration?

Options are generally traded within the regular trading hours of 9:30 am to 4:00 pm ET and certain Options can be closed until 4:15 p.m. ET. UK times for US trading hours can be found here.

On the day of expiration, opening orders for equity Options such as SPY and QQQ can be placed up until 1 hour prior to the market close. However, for cash-settled index Options such as SPXW, XSP and NDXP, opening orders can be placed up until 15 minutes prior to market close.

What can I do if my Option contract is going to expire?

Webull expects every customer to close the Option position at least 30 minutes before the market closes. In cases where holding positions pose a risk to your account or to Webull, auto-liquidation may occur.

For Out the Money (OTM) & At the Money (ATM) Options:

You can close your positions before the market closes but please be aware that Webull may auto-liquidate your option positions at any time on the date of expiration if there’s insufficient equity or buying power to support an exercise or assignment. You have the responsibility to have sufficient equity or buying power in your account to support Option exercises and assignments.

For In the Money Options (ITM):

Long Call Options contracts that are ITM will be exercised on expiry if you have sufficient buying power. Your position may be auto-liquidated before the market closes if you do not have sufficient buying power or have submitted a Do not Exercise (DNE) request.

Long Put Options contracts that are ITM will be exercised on expiry if you have sufficient underlying securities. If you do not have sufficient underlying securities or you have submitted a DNE request, your Options position may be auto-liquidated before the market closes.

Sufficient buying power or equity:

If you would like to exercise one US$1 call Option you will need to maintain US$100 in buying power in the account. If you would like to exercise one put Option you will need to maintain 100 shares of underlying security in the account. If you do not have sufficient buying power or equity to cover any possible exercise or assignments you must deposit funds or close the position before expiration. Auto-liquidation is submitted using Market Order.

Options are complex, high risk products and are not appropriate for all investors. You may lose all of your invested capital.

For more information, please refer to：Characteristics and Risks of Standarized Options