Through SpotGamma’s unique HIRO real-time options flow tool, we have been documenting the impact of 0DTE short dated options flow. This action is clearly laid out in the video below from Thursday, February 23rd:
This quote from BOFA’s recent research piece on 0DTE short dated options flow tells us that its actually 0DTE buyers in early action:
75% of trades occur near the bid or the ask – more than for any other tenor, and (ii) volume is uniquely skewed towards the ask early in the day but towards the bid later in the day (consistent with 0DTE option buyers in the morning who then unwind as the day progresses)
BofA
This syncs very closely to what SpotGamma has been discussing with members on recent Member Q&A’s:
