Day traders are paying a price for their newfound love affair with one of the hottest trades: Costs Them $358,000 Daily
It seems that day traders need to be more careful when it comes to buying options.
Day traders are losing money through gambling on zero-day options with ultra-short lifespans, also known as0DTE. Researchers estimate that small-time investors are losing an average of $358,000 a day since the launch of the trading option, highlighting its high-risk, high-reward nature. The game of 0DTE is particularly challenging due to the tight timeframe in which wagers need to work out.
Retail Traders Love 0DTE Options... But Should They?
Maybe the latest investment innovations may not always be suitable for everyone. The high rollers in 0DTE trading volume have expanded their market share to 6% in 2022 versus 4% in the prior year. Despite the high engagement rates, the wagers largely failed to pay off as day traders lost $20 million from poor positioning in about two years through February 2023. The high-risk option holds high appeal for amateurs but may not always be profitable.
RageAndLove
:
I think the majority of us have no clue how to make money on options, including myself. Moomoo can create courses that make it sound easy, but in reality how do we really know which options to trade? It’s daunting looking at the options chains and trying to figure out which ones are a good investment.
活力的羅傑 : Pay more
RageAndLove : I think the majority of us have no clue how to make money on options, including myself. Moomoo can create courses that make it sound easy, but in reality how do we really know which options to trade? It’s daunting looking at the options chains and trying to figure out which ones are a good investment.