JEPI - JEPY: Muted 0DTE Implied Volatility Big Yield Not Yet Tested

2024-03-13 05:15:47 ET

Summary

• Zero-days-to-expiration options now make up nearly half of the overall volume in the options market.
• Defiance S&P 500 Enhanced Options Income ETF aims to take advantage of the put side of the 0DTE market by writing in-the-money put options on the SPX.
• JEPY has underperformed the S&P 500 Total Return Index since its inception, and its yield is not comparable to traditional equity ETFs.
• With a price history of less than six months, I'd like to see the strategy tested during a period of elevated volatility.

Zero-days-to-expiration or 0DTE options now represent close to half of the overall volume in the options market. As speculation and bullish sentiment return to markets after a bear market in 2022 and so many doubters during last year's 26% S&P 500 total return. One new ETF seeks to take advantage of the put side of the 0DTE market....

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