Day Traders Lose $358,000 Per Day Gambling on Zero-Day Options

Day Traders Lose $358,000 Per Day Gambling on Zero-Day Options
Lu Wang - Bloomberg
Day traders are paying a price for their newfound love affair with one of the hottest trades in the equity market.
Rushing to join the trading frenzy in options with ultra-short lifespans, known as 0DTE for zero-days to expiration, small-time investors find themselves struggling to make it work. A fresh study from researchers at the University of Muenster in Germany shows the crowd may have lost $358,000 a day since May 2022, when it became possible to trade expiring contracts every day.
/jlne.ws/41lEhGh

 

‘ may have’ is so faint word in a scientific paper

 

I know. How can they use "may have" when they have the real data right there. LOL But I did state my doubt about the profitability of trading 0dte options in other threads discussing them.

 

And who is earning $358k per day trading odte options?

 

The market makers with the fastest systems.

 

Not day traders

 

With the big tech numbers, this week will be interesting to trade 0dte.

 

In US, commission is per contract and option value low in 0dte, the commission per option gotta be so high that it eats away any profit?

 

gee,option newbs get smoked when realised vol gets crushed???

 

Traders who use services that teach them to do 0DTE the right way.

Actually, I know no idea. I'm pretty sure this is a yet another example of "How to Lie With Statistics," the name of a book once required in Stats 101 courses but probably banned from them as stats are so misused by academics, the media, Pfi$er, etc. I imagine there are some algos that have been programmed or trained to take the other side of those trades profitably, though.