Bank of America (BofA) has expanded its research on zero day to expire (0DTE) options to cover indices and exchange-traded funds (ETFs) as well as the SPX.
In a research report released earlier this month, the US bank put the focus on 0DTEs on the Magnificent 7 (Mag 7) stocks, which are ‘actively traded but have less growth’ than indices or ETFs for zero-day options. Daily options are increasingly used for ETFs in the US, notably covered call and cash covered put strategies, and have recently been adopted for the first time in the Canadian ETF market . For now, stocks have a single expiration a week, generally Friday. However, on thos