March 22, 2024 (EIRNS)—0DTE (Zero Days To Expiry) Options are the new trick by which central banks provide liquidity to keep the gambling casino rolling. 0DTE are bets that are opened and closed on the same day. It allows the gambler to save on costs, given the extremely short life of the bet, thus having more liquidity available. Regulators have eased rules, and as a result 0DTE bets have really zoomed: They are now 50% of all options on the S&P Index.
Commenting on the stock market erection after the Fed’s March 20-21 decisions, Italian financial analyst Mauro Bottarelli warns against 0DTE options, the “credit default swaps 2.0 version of today, those that last one day, the equivalent of a start-up that makes the founding act coincide with the filing of the books in court. The key difference between these two synthetic bets against non holding assets? Today the bubble is 10 times what it was in 2008. Perhaps a bit more.”
