What options contract does Green Light give? Is it 0DTE?
Quick answerNot 0DTE. Each call comes with an at-the-money call on the monthly expiry about three weeks out (14 to 45 days), so a trade of a candle or two is not all time decay. It is priced from the real option when the light went green, on liquid names only.
The details
- Strike: the listed one nearest the entry: at the money.
- Expiry: the nearest standard monthly at least two weeks out (about 21 days).
- Price: the contract's real price when the light turned green.
- Liquid names only: a big name, or a stock trading at least 250 million dollars a day.
0DTE options decay within hours; a call that lasts a 4-hour candle or two needs more time.
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