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      Cboe Research Highlights Differences Between Perpetual Futures and 0DTE Options

      Cboe's Market Intelligence team has released a research paper emphasizing the significant differences between perpetual futures and zero-days-to-expiration (0DTE) options. The paper, titled "Crossed Wires: Separating Perception from Reality," argues that these financial instruments have distinct structures, risk profiles, and applications, countering recent claims that they are comparable products.

      The report comes in the wake of the Commodity Futures Trading Commission's (CFTC) approval of Kalshi's Bitcoin perpetual futures contracts, which marked the introduction of regulated crypto perpetual futures in the U.S. The Cboe paper responds to CFTC Chair Selig's comments suggesting similarities between the two instruments, asserting that perpetual futures have a linear payoff structure with uncapped risk, while 0DTE options offer capped risk and defined outcomes for traders.

      A case study included in the report illustrates this disparity. On April 21, 2026, the S&P 500 saw a 0.94% intraday decline. A leveraged short perpetual future yielded a return of +9.4%, whereas an at-the-money SPX 0DTE put option returned +404%. This stark difference is attributed to the unique pricing mechanics of options, which allow for explosive payoffs under certain conditions, unlike the linear returns of perpetual futures.

      The paper also discusses the implications for traders and regulators, noting that perpetual futures carry higher margin and liquidation risks compared to 0DTE options. As of Q2 2026, 0DTE contracts represented over 60% of typical SPX options volume, highlighting their institutional significance. Cboe's findings aim to inform traders about the risks associated with each instrument, especially in light of the growing interest in both markets.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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