Zero-day hedging takes root in new asset classes

Option users move beyond equity indexes to commodity and FX ETFs in search of cheaper, sharper hedging tools

cross-section of plant with roots in soil

Zero-days-to-expiration (0DTE) options trading is moving beyond equity indexes to other asset classes and sectors – notably exchange-traded funds (ETFs) – as investors seek to achieve more cost-effective and precise protection against same-day risks. 

The market is “very hungry” for liquid ways of putting on targeted hedges, across assets and sectors on a shorter time scale, says Amit Deshpande, head of fixed income quantitative investments and research at asset manager T Rowe Price.

“This micro

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