Volatility Insights: Much Ado About 0DTEs - Evaluating the Market Impact of SPX 0DTE Options | Cboe

The popularity of SPX zero-day-to-expiry (0DTE) options has surged since 2016, reaching over 50% of SPX options volume in August. Concerns have risen about their impact on market volatility due to gamma hedging activities by market makers, with debates over whether these trades amplify or dampen intraday price movements based on the direction and magnitude of market maker positioning.