0dte Options and the Dangers of Contra-Exercise

Описание: Learn the high-stakes world of 0DTE options trading and why the "contra-exercise" window is a critical risk for single-stock traders. In this episode of Options Boot Camp, Mark Longo and Dan Passarelli break down the recent expansion of zero-day options to names like Nvidia (NVDA), Tesla (TSLA), and Apple (AAPL), and how after-hours price swings can trigger unexpected assignments.

Trading 0DTE options isn't just about the Greeks; it's about understanding settlement. Unlike cash-settled indices, equity options settle into physical stock. We explore the "do not exercise" instructions, broker deadlines (Schwab, Fidelity, Robinhood), and the "pin risk" that occurs when a stock closes right at your strike price. Whether you're selling premium or hedging a portfolio, understanding contra-exercise is non-negotiable for modern options traders.

Key Takeaways

🔹The shift from SPX 0DTE to single-name equity 0DTE (NVDA, TSLA, IBIT).

🔹What is Contra-Exercise? How to force or abandon an exercise after the bell.

🔹Why earnings weeks are currently excluded from 0DTE listings.

🔹Expert tips on the "Stock Repair Strategy" for underwater positions.

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