Course · Act I: Read the Chain · Act I case study
Reading a 0DTE options chain
Case: a same-day chain at 3pm. Price a nickel call against a defined-risk spread, and see what the stock must do before the close.
Key terms
- 0DTE
- Zero days to expiration. The contract dies today, so extrinsic value has almost no time left.
- Breakeven
- The stock price at expiration where the trade neither makes nor loses money. For a long call: strike plus premium.
“Friday, 0DTE” is part of the full course: 6 puzzles on reading a 0dte options chain. RocketCo is fictional, and none of this is a trade. Try this act’s free chapter, “Calls, Puts, and the Contract”, first.
“Friday, 0DTE” is in Act I: Read the Chain. 6 puzzles, unlimited retries.
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