Earlier this year, Cboe published a whitepaper titled “0DTEs Decoded: Positioning, Trends, and Market Impact,” which examines the growth of 0DTEs and their effect on the market. As noted in the paper, 0DTEs enable traders to manage risk more accurately, express their directional market views and potentially earn daily income.

The use of 0DTEs is increasing among the retail trading community due to the growing familiarity and knowledge retail traders are gaining through improved access to data and tools, as well as lower trading costs – especially with the introduction of zero commissions by many online brokerages. In June 2025, Cboe published a statement that retail trading made up 54% of total SPX 0DTE volume in May 2025.

The market dynamics influencing retail traders’ use of 0DTEs are also nuanced. As the paper highlighted, 0DTEs' share of overall SPX option volume dropped from a high of 64% on April 1 to a low of 36% on April 7, when the Cboe Volatility Index (VIX^® Index) reached a high of 60. Naturally, one might think that an increased risk environment would be an opportune time to utilize 0DTE. However, due to the growing uncertainty stemming from President Trump's tariff policy, traders shifted towards longer-dated options to reposition their portfolios, considering the longer-term outlook of U.S. inflation and growth – ultimately eschewing 0DTEs. Yet, when market volatility decreased, retail traders’ use of 0DTEs increased again.

As more advanced investment products enter the market, retail traders are rising to the challenge and learning how these solutions can be incorporated into their portfolios. Cboe has always been at the forefront of product innovation. In 2005, Cboe introduced weekly SPX options that expire on Fridays, and in 2016, weekly SPX options that expire on Wednesdays. By 2022, Cboe had introduced weekly options with expirations on every trading day of the week. Now, qualified option traders can trade 0DTE SPX options every market day.

The firm is also doing its part to educate traders on product innovations, such as 0DTEs, by providing 0DTE trading resources. Furthermore, Cboe offers The Options Institute, an educational platform that allows beginners to professional traders a forum to familiarize themselves with foundational knowledge on options or learn new developments taking place within the investment derivatives landscape. The Options Institute provides comprehensive courses and tools, equipping investors with the knowledge needed to navigate the complexities of options trading effectively. It is important to remember that responsible options trading is based on defining an investment objective and using analysis and informed decision-making to determine the most appropriate trading strategy, not emotions. Understanding how options work and the associated risks, just like any other financial asset, is paramount.