Corporate events & settlement
How have 0DTE options structurally altered intraday equity market volatility and dealer hedging cascades?
By Easy Money Scanner · Educational reference · Not investment advice
The short answer
Research from Cboe and academic studies indicates 0DTE options' massive volume has increased intraday dealer gamma hedging flows, which can both dampen and amplify late-session S&P 500 volatility depending on dealer positioning.
How it works
When dealers are net short gamma from 0DTE flow, their hedging can accelerate moves in the direction of the trend; when net long gamma, hedging tends to suppress volatility and pin prices near key strikes.
An example
Cboe and Fed researchers have noted pinning behavior near round SPX strikes on days with heavy 0DTE volume approaching the close.
Risk & limitations
Dealer positioning is not publicly disclosed in real time, making it difficult for retail traders to reliably predict which hedging regime is currently in effect.
Examples are hypothetical, not trade recommendations. US contract and regulatory references do not automatically apply in Canada. Rules, margin requirements and broker policies can change; confirm them with the relevant authority and your broker.