Innovation Boost in ETFs: Tuttle Focuses on Daily Options

The world of ETFs may soon be enriched by a revolutionary approach. Matt Tuttle, known as an innovative leader in the industry, is making an ambitious foray into the zero-day options business with a new product platform. The goal is to make trading quickly expiring derivatives on single stocks of popular companies like Nvidia, Tesla, and MicroStrategy commonplace. Currently, daily expiring options, known as 0DTE options, are only possible on Fridays when existing contracts expire. However, Tuttle believes in an imminent shift in market dynamics that will allow daily expiration options for individual stocks. "Whether that happens in three months, six months, or two years, I can't say," said the CEO. Until then, Tuttle plans to launch his new ETFs with flexible options. These allow for individual adjustments such as strike price and expiration date and can be rolled daily. If the US Securities and Exchange Commission does not object, the launch could take place in the first half of the year. In the $11 trillion ETF industry, betting on new market developments is by no means unusual. Tuttle aims to capitalize on trends focused on income generation through option selling and trading 0DTE strategies, particularly in the technology sector with heavyweights like Apple and Microsoft. Critics like Ben Johnson of Morningstar highlight the industry's pursuit of a first-mover advantage despite the risks. Similar concepts from providers like Defiance ETFs and Roundhill Investments already exist for indices, but not for single stocks. The efforts to enable daily expiration of single stock options are not yet complete, and the trading platform Cboe Global Markets has not commented on the matter. Tuttle is no stranger to the scene; his contrarian fund against Cathie Wood's Ark Innovation ETF and his investment in highly speculative single-stock ETFs made headlines. Ultimately, investors are less interested in the creation of these ETFs, but rather in their innovative approaches and possibilities.