Robinhood Zero Day Options (0DTE) Trading Explained

Robinhood, a popular trading platform, allows traders to place options trades directly from their app, including 0DTE options.

Zero days to expiration (0DTE) options trading is a strategy among traders looking to potentially make quick profits - with a significant risk of losing all of their money invested immediately.

These options contracts are due to expire within the same trading day, making the window for executing trades extremely small.

However, it's important to understand this is a risky strategy where 100% loss of investment capital is likely.

New to Robinhood? Check out my full tutorial below!

What Are 0DTE Options?

0DTE options refer to options contracts with zero days to expiration.

In other words, these are options contracts that expire on the same day they are traded. They are also commonly referred to as "same-day expiration" options.

0DTE options volume has exploded in recent years - according to 2024-2025 data, 0DTE options on the S&P 500 averaged over 1.5 million trades daily, constituting 51% of total SPX options volume. This represents a significant increase from less than half that share in 2021, with approximately 48-49% of all SPX trading volume now being 0DTE contracts.

0DTE options are a type of very short-term or intraday trading instrument. They are popular among traders looking to capitalize on short-term price movements or take advantage of specific market conditions within a single trading session.

Trading 0DTE options requires precise timing and often involves higher levels of risk compared to options with longer expiration periods.

Due to their short lifespan, 0DTE options can experience rapid changes in value, making them suitable for experienced traders who are adept at managing risk and making quick decisions.

Available 0DTE Tickers on Robinhood

Not all tickers offer true daily 0DTE options. On Robinhood, traders can access same-day expiration on five key tickers:

• SPX - S&P 500 Index (cash-settled)
• XSP - Mini S&P 500 Index (1/10th size of SPX)
• NDX - Nasdaq-100 Index
• RUT - Russell 2000 Index
• VIX - Volatility Index

For individual stocks and ETFs like SPY or QQQ, "0DTE" typically refers to the next available Friday expiration, as they don't have daily expirations. True daily 0DTE options are available for SPX and XSP.

Overnight Index Options

At the HOOD Summit 2025, Robinhood announced it will offer overnight index options trading starting in early 2026, significantly expanding trading opportunities. This new service will allow traders to trade index options from Monday 8:15pm ET through Friday 9:25am ET, providing more flexibility for 0DTE strategies.

SPX vs. SPY: Critical Differences for 0DTE Traders

Understanding the difference between index options (SPX) and ETF options (SPY) is crucial for 0DTE trading:

Most experienced 0DTE traders prefer SPX or XSP options to avoid assignment risk and take advantage of the favorable tax treatment and European exercise style.

Expiration Mechanics & Timing

Understanding the exact timing for 0DTE options is critical:

• Index options (SPX, XSP) expire at 4:00 PM ET
• Equity/ETF options (SPY, QQQ) expire at 4:15 PM ET
• Equity options can be exercised until 5:30 PM ET, creating after-hours risk
• If an option is in-the-money at market close, Robinhood will automatically exercise it unless you submit a Do Not Exercise (DNE) request by 5 PM ET on the expiration date

For true 0DTE trading (SPX/XSP), your position effectively has just hours to move in your favor before expiration.

Advanced Risk Management for 0DTE Trading

Unlike traditional investing, 0DTE trading requires specific risk management:

• Position sizing: Limit allocations to 3-15% of your account per trade; conservative traders use just 1-2%
• Entry timing: Research shows the first 30 minutes of trading (9:30-10:00 AM ET) is optimal for entry
• Profit targets: Take profits at approximately 25% of max profit for high success rates (studies show 85-92% win rates)
• Stop-loss guidelines: Set stops based on volatility rather than fixed dollar amounts; avoid stops tighter than 15-20%
• Time to live: Most successful 0DTE trades are held for 2-4 hours, not the entire trading day

Remember that 0DTE options experience extreme theta decay, with most time value evaporating in the last few hours of trading. Never trade with money you can't afford to lose completely.

Understanding the Greeks with 0DTE Options

Option Greeks behave dramatically differently with same-day expiration:

• Gamma: Extremely high for 0DTE options, causing rapid price changes with small underlying moves. This is why small market swings can dramatically impact your position.
• Theta: Accelerated time decay - unlike longer-dated options where decay is relatively linear, 0DTE theta decay accelerates rapidly throughout the day, with the most dramatic decline in the final hours.
• Delta: Can shift dramatically throughout the day as options move in/out of the money. Options with a delta of 0.35 might quickly become 0.65 or 0.15 with minimal market movement.
• Vega: Less impactful for 0DTE than longer-dated options since volatility changes have less time to affect the option's value.

Successful 0DTE traders understand these dynamics and adjust their strategies accordingly throughout the trading day.

Pattern Day Trader Rule Implications

For 0DTE trading specifically, the Pattern Day Trader (PDT) rule has significant implications:

• All 0DTE trades are considered day trades by definition (entering and exiting on the same day)
• The PDT rule limits traders with less than $25,000 in their account to 3 day trades per rolling 5-day trading period
• This can severely constrain 0DTE trading activity for smaller accounts

Traders with accounts under $25,000 need to carefully plan their 0DTE trading activity to avoid PDT restrictions. Some traders use multiple accounts across different brokers to work around this limitation, though this carries its own risks.

How To Trade Options On Robinhood

To place an options trade on Robinhood, follow these steps:

1. Tap the magnifying glass on your home page
2. Search the security you'd like to trade options for
3. Tap the name of the security you're looking for
4. Tap Trade in the bottom right corner of the stock's or ETF's Detail page
5. Tap Trade Options
6. The expiration date is displayed just below the strategy and underlying security
7. You can scroll right to see expirations further into the future
8. For 0DTE trades, look for "Today" in the expiration dates section (for SPX/XSP) or select the nearest expiration date (for equity options)
9. Review the Greeks (especially gamma and theta) before placing your trade
10. Double-check your order - 0DTE trades require extreme precision

Before trading 0DTE options, ensure you have Level 3 approval which is required for spread strategies commonly used in same-day trading. Robinhood requires you to apply and be approved for this level before trading 0DTE contracts.

To manage expiry risk, remember that if you don't want your in-the-money options to be exercised, you must submit a Do Not Exercise (DNE) request by 5 PM ET on the expiration date. For Robinhood, you can submit this request by contacting their Support team after 4 PM ET.

For existing options positions or pending orders, you can swipe to take these actions in the app:

• Swipe right to buy or open a position
• Swipe left to sell or close a position
• For pending orders: swipe right to cancel, swipe left to replace

If you want to learn more about Robinhood, check out our full beginner's guide about how Robinhood works here.

Common Mistakes to Avoid With 0DTE Options

Based on industry research and expert analysis, here are the most common 0DTE mistakes:

• Over-leveraging - using too much capital on single trades (never risk more than 3-5% of your account)
• Ignoring theta decay - not understanding how rapidly time value evaporates throughout the day
• Not taking profits early enough - holding until the last minutes when most of the profit potential has already been realized
• Setting stops too tight - for 0DTE moves, consider volatility-based stops rather than fixed dollar amounts
• Trading without understanding assignment risk - especially for SPY options which can be exercised until 5:30 PM ET

Remember that most 0DTE buyers lose money due to time decay. Successful 0DTE traders typically employ short options strategies (selling options) rather than buying them outright.