The world of options trading is evolving fast — and India’s GIFT City has just taken a bold step forward. The NSE International Exchange (NSE-IX) has announced the launch of Zero-Day-to-Expiry (0DTE) options on the Nifty 50 Index, with trading kicking off from October 13.
This makes NSE-IX the first exchange in India to introduce such short-duration derivatives, right when SEBI is mulling over phasing out weekly options and promoting long-term derivatives (LEAPS).
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What Exactly Are 0DTE Options?
As the name suggests, Zero-Day-to-Expiry (0DTE) options are contracts that expire on the same day they are traded. At NSE-IX, these contracts will have weekly expiries running Monday through Friday, offering traders five active contracts at any given time.
That means every trading day, one set of contracts expires at 3:30 PM IST, and fresh ones are introduced immediately after — ensuring traders always have five weekly expiries available.
This structure gives traders the flexibility to act on short-term market movements, making 0DTEs a favorite tool for high-frequency trading (HFT) desks, quant strategies, and even active retail traders abroad.
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Why 0DTE Options Matter
In global markets like the S&P 500, Nasdaq 100, Russell 2000, EURO Stoxx 50, and DAX, same-day expiry options have exploded in popularity. The reason? Speed, agility, and cost-efficiency.
With 0DTEs, traders can:
Manage intraday risk effectively.
Implement high-conviction trades based on precise short-term views.
Benefit from rapid time decay (theta) — a key edge for option writers.
Deploy advanced strategies like Iron Butterfly, Iron Condor, or Straddle/Strangle to capture short-lived volatility.
In short, these options are tailor-made for traders who thrive on precision and quick decision-making.
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Who Can Trade These Contracts?
Currently, Indian residents cannot directly trade 0DTE contracts at NSE-IX. These products are meant for international participants, including:
Non-Resident Indians (NRIs)
Foreign Portfolio Investors (FPIs)
Eligible Foreign Investors (EFIs)
They can trade through registered trading members of NSE-IX by setting up entities via subsidiary or branch models.
Indian retail investors, however, can only invest indirectly through the Liberalised Remittance Scheme (LRS) — mainly in products like unsponsored depository receipts that allow investment in US stocks listed on NSE-IX.
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Who Should Consider 0DTE Options?
These contracts are not for the faint-hearted. 0DTE options suit experienced traders who have a strong directional view and the ability to act swiftly.
They are particularly popular among option sellers, who aim to profit from the rapid premium decay as expiry approaches. On the flip side, scalpers and quant traders also use them to capture micro market movements.
In essence, 0DTE options are ideal for those who want to capitalize on short-term volatility and understand risk management deeply.
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Final Thoughts
While 0DTE options open up exciting opportunities for global traders through NSE-IX, Indian investors might have to wait before they get access to these “one-day wonders.” Whether SEBI ever allows them domestically remains uncertain — especially given the limited understanding of options trading among retail participants in India.
But one thing’s clear — the future of options trading is getting faster, sharper, and more dynamic.
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