How 0DTE Options Can Explain Market Movement

• Options trading volume hit a sixth consecutive annual record in 2025 with a 24% increase from 2024, with the trend continuing into early 2026
• 0DTE options accounted for 63% of total options volume in early 2026, making them the dominant force in short-term market movements
• Real-time example: SPY found support at 655.17 on a Wednesday, aligning with heavy 0DTE put activity at the 655 strike, demonstrating how options activity can predict intraday price action

Summary

Key Developments in 0DTE Options Trading

Market Growth and Volume Trends:

Options trading volume reached record levels for the sixth consecutive year in 2025, with volumes surging 24% from 2024, according to Cboe Global Markets. This trend continued into early 2026, with January and February maintaining the growth trajectory. Zero-day-to-expiration (0DTE) options now represent 63% of market activity, marking their increasing dominance in short-term trading strategies.

Recent Market Example:

On March 24, 2026, Senior V.P. of Research Todd Salamone identified critical support at the SPY 655 strike level. The SPDR S&P 500 ETF Trust (SPY) reached an intraday low of 655.17 on Wednesday, narrowly holding above previous October and November lows. This 655 strike became the second-most active 0DTE contract that day, demonstrating how short-term options activity directly influences price action.

Trading Implications:

The article emphasizes that monitoring options activity, particularly 0DTE volume, provides valuable insights for determining short-term risk appetite. The SPY stabilized after hitting the 655 level, primarily due to chart support and unwinding of short positions related to 0DTE volume and March 655-strike put open interest.

Additional Mentions:

United Airlines (UAL) was highlighted as trading within 3% of its 12-month moving average, with historical data showing 75% success rate and average gains of 17.1% three months after similar signals over the past 20 years.

The analysis underscores that understanding 0DTE options flow has become essential for short-term traders navigating increasingly options-driven markets, with these instruments now playing a pivotal role in intraday price discovery and support/resistance levels.