[00:00] - You can do some crazy stuff with options like 10K to 90K have exploded in popularity in the last year. within the same day,
[00:14] - This is one of the biggest shifts I've seen in markets - [Narrator] Here's why 0DTE options have taken off despite being some of the riskiest in the entire market.
[00:28] - So I got into 0DTE in 2020 during the whole like lockdown. and has been trading options full-time for about a year. so his day typically starts around 5:30 AM,
[00:42] - [Drayton] First things first, that's where I get all my news he says, "It's easier to spot a trend in the market."
[00:55] into and from that PCE number - In one minute, I had made $100. One of his biggest one-day profits
[01:10] was about $14,000, and biggest loss was about $12,000." but then you also have your crazy lows. they're purchased,, which is why...
[01:23] in the stock's price. or crash incredibly quickly. they're so appealing to traders.
[01:36] It can be 500%, it could be 1000%. because they're cheaper than longer-dated contracts. A lot of these retail traders
[01:50] - [Narrator] Drayson says, "Some of his biggest losses - I think I probably lost at the time during 2020, and this was when I was a full-time student.
[02:06] before I had made some money from E-commerce, I lost 20, 30% of it, and it's just very, - [Narrator] But he says, "The possibility of big wins
[02:19] - The thing is, with a nine to five, it's not scalable. compared to trading, where you take one crazy trade, like just one trade and you make a million dollars.
[02:34] with sophisticated technology and tools. in driving 0DTE trading volumes to record highs.
[02:47] You know, when I was looking at hashtags for 0DTE online, there are tens of thousands of mentions of 0DTE, A few years ago, there were no such mentions.
[03:01] expanded 0DTE contracts to every day of the week last year - And that just unleashed a frenzy of activity. "We've never seen something take off
[03:16] - [Narrator] Many of these retail traders - This is really the continuation of a trend where they wanna bet on sports,
[03:28] - [Narrator] But some experts think from a lot of industry analysts and pundits an end-of-day scenario in markets.
[03:44] they also buy or sell stocks to hedge their positions. if there is a big move in the market someone's doing a ton of buying and selling of options
[03:59] - [Narrator] For example, during the meme-stock mania, was exacerbating the volatility. - I think a lot of the fear now is that 0DTE volumes
[04:13] than in a situation like GameStop or meme-mania. Kochuba says, "0DTE options
[04:25] that when there's an unexplainable move in the market." and movement in 0DTE and understand that - I wouldn't regret anything.
[04:39] it has taught me a lot more things rather than pull me down. - One of my dream cars, the AMG GTR, get back to my family,
[04:55] So that was pretty cool. and launch an options trading course." but as long as you just keep moving forward,
[05:10] (gentle music)