Historically (according to TTD and others) 30–45 DTE has been considered the sweet spot for selling/spreads due to favorable theta vs gamma risk.
But with SPX now seeing a huge percentage of volume in 0DTE (60%), it feels like dealer hedging, gamma regimes, and intraday flows may be changing the overall risk profile across expirations.I primarily trade SPX (defined risk spreads), so I’m wondering:
Do you still think 30–45 DTE is optimal in today’s market structure, or have you shifted shorter or longer because of how dominant 0DTE has become?
Is 30–45 DTE still the sweet spot with SPX now dominated by 0DTE?
byu/BryGuy81 inoptions
Posted by BryGuy81
1 Comment
The 0dte trading is a completely different type of trading and has little effect on other types of options trading. 95% of all opened options never make it to an expiration.
The real question is if the coming expiration expansions will increase the 0-1dte market or steal liquidity from each other.