The 0DTE Options Liquidity Cycle

Examining Inflation Shocks, Intraday Liquidity, and Same-Day Expiration Options

0DTE options, intraday liquidity, and inflation shocks have become closely linked topics in modern markets. The 0DTE Options Liquidity Cycle examines how same-day expiration options can interact with rate expectations and shifting liquidity conditions, especially around inflation-driven event minutes. Written in plain English, this book treats markets as a sequence of observable constraints - spreads, depth, volatility repricing, and late-day deadline pressure - rather than a single headline story.

Across the open, midday, and close, the market’s “liquidity cycle” can change character: discovery can feel selective, digestion can feel calm but conditional, and the final hour can feel more reactive as time-to-expiration shrinks. Using fictional, illustrative sessions, Max Koren explores how inflation surprises can coincide with liquidity breaks, why rates often act as a shared reference point for intraday sensitivity, and how clustered same-day option exposure can make certain strike zones feel more responsive without implying a fixed outcome.

Topics include:

• Readers may learn about intraday liquidity basics: spreads, depth, and slippage as lived market conditions

• Readers may learn about inflation shocks, expectation gaps, and why rate moves can reshape session “tone”

• Topics include the open-midday-close rhythm and why liquidity may look different across phases

• Topics include implied volatility repricing, time decay near expiration, and event-minute behavior

• Topics include hedging flows as constraint-driven activity, not a directional statement

• Topics include strike crowding, sensitivity zones, and why the tape can become more reactive late day

• Readers may learn about a neutral review method for describing fast sessions using sequencing and conditions

This is an educational study of 0DTE options, market microstructure, intraday volatility, and inflation-era liquidity - designed to help readers describe what they observe with clearer language and more realistic uncertainty.