Investors can now trade commodities and a Treasury with a popular short-term options strategy.
The Nasdaq recently launched five zero-day options-based exchange-traded funds: United States Oil Fund (USO), United States Natural Gas Fund (UNG), SPDR Gold Shares (GLD), iShares Silver Trust (SLV) and iShares 20+ year Treasury Bond ETF (TLT).
“Zero-day to expiration” or “0DTE” refers to a trade which expires in less than a day. It has taken the options market by storm. The volume of S&P 500 zero-day contracts has increased at least 40%, versus 5% in 2016, according to data from the CBOE.
Not everyone is excited about the new ETF offerings, due to the complexity of the trade.
“I’m cautious about these products because I agree they’re problematic for undereducated retail investors that don’t know how to trade the options market,” Dave Nadig, VettaFi’s financial futurist, told CNBC’s “ETF Edge”…
