The burgeoning trend of zero-day options (0DTE) is gaining traction among Wall Street’s quantitative investment strategists (QIS), with major banks like Citigroup (C), JPMorgan (JPM), and UBS Group (UBS) incorporating them into their systematic equity products. These derivative contracts, which expire within 24 hours, have become popular for their ability to offer low-cost bets on volatility and portfolio diversification. Banks are responding to market changes by rapidly developing products that incorporate 0DTEs, reflecting their growing acceptance and versatility in trading strategies.
