0DTE VIX
Starting on Maonday April 24, 2023 there will be a new VIX symbol available. ZoneTraderPro will immediately begin testing and incorporating the new signal into the BloodHound templates.
This is important because 0DTE options have the most option gamma associated with them, so they have a high hedging impact, which affects our trading.
SpotGamma tracks this number daily and it it ususally around 45% of options traded, are 0DTE options.
Here is a little more information about the 0DTE VIX.
What is the 0DTE VIX?
The CBOE 0DTE VIX is a new trading product introduced by the Chicago Board Options Exchange (CBOE) in 2023. It is a derivative of the VIX, which is a measure of the implied volatility of the S&P 500 index. The 0DTE (Zero Days to Expiration) VIX is a short-term options contract that expires at the end of the trading day.
VIX is calculated using deritives that expire in 23 to 27 days.
VIX9D is the VIX for the next 9 days. This is why VIX9D is at the top of the BloodHound VIX template chart.