Ep45: The Pricing Game with 0DTE Tesla Options

21/02/2023 7 min

Listen "Ep45: The Pricing Game with 0DTE Tesla Options"

Episode Synopsis

How can an option trade make 4000% in one day?  Tesla stock has been highly volatile and one of the drivers of this volatility is the unusually large volume of options trading.  Are large proportion of Tesla option contracts are traded on the day of expiration (zero DTE) and just out of the money.  This allows speculators maximum leverage and the small possibility of a significant profit.