Balanced trading is calming zero-day volatility fears
UBS finds little evidence that 0DTE options exacerbate volatility
Volumes in zero-days-to-expiration options, or 0DTEs, continue to break records – and split opinion. Market participants have questioned whether trading in the instruments is fuelling volatility in equity markets. The latest evidence suggests maybe not.
Three times over the US summer daily notional volumes in an exchange-traded fund (EFT) tracking version of the options – which expire on the same day they are bought – rose to more than $1 trillion, the first time that has happened since the
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