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You can access both of our platforms from a single Saxo account.
Saxo unveils new 0DTE options for trading on the CAC 40 Index
Koen Hoorelbeke
Investment and Options Strategist
Summary: Saxo Bank has expanded its trading portfolio by introducing 0DTE options on the French CAC 40 index, providing traders with a new avenue for same-day trading opportunities. This offering underscores Saxo's commitment to offering flexible, cost-effective, and strategic trading instruments. As a supporting broker with direct ties to Euronext and market makers, Saxo ensures competitive pricing and efficient trade execution for its clients.
Options are complex, high-risk products and require knowledge, investment experience and, in many applications, high risk acceptance. We recommend that before you invest in options, you inform yourself well about the operation and risks.
Introduction
In a significant move for financial traders, Saxo Bank in participation with Euronext and Susquehanna, have introduced a new offering that significantly enhances the trading landscape: 0DTE (Zero Days To Expiry) options on the French CAC 40 stock index. This development opens up new possibilities for traders interested in capitalizing on the volatility of the stock market within the same trading day. With this addition, Saxo broadens the array of trading strategies available to its clients, highlighting its commitment to providing sophisticated financial instruments to a diverse trader base.
For a detailed understanding of 0DTE options, we reference our in-depth article, "Trading 0DTE's: Getting Your Feet Wet, Without Drowning - Part 1." Particularly, Section 5, "Do We Have 0DTE's at Saxo?," offers essential background information on our current offerings, to which this new offering is a great addition. This article aims to explore the benefits and new trading opportunities presented by the introduction of daily options on the CAC 40 index at Saxo.
0DTE Options: Key Benefits for Traders
0DTE (Zero Days To Expiry) options are financial instruments that expire on the same day they are traded, offering a unique opportunity for traders to leverage short-term market movements. Here are the core advantages:
- Flexibility and Precision: 0DTE options enable traders to respond quickly to intra-day volatility, offering unparalleled control over their trading strategies.
- Cost-Effective: With lower premiums than longer-term options, 0DTE options allow for diversified strategies without a significant investment, making them accessible to a wide range of traders.
- Risk Management: They provide an effective tool for mitigating daily market risks, ideal for hedging against specific events that might affect the CAC 40 index.
- Profit Opportunities: These options are perfect for taking advantage of the liquidity and volatility in the market, especially during significant economic or geopolitical events.
- Broad Accessibility: Saxo’s introduction of 0DTE options on the CAC 40 index opens up complex trading strategies to traders of all experience levels, democratizing access to innovative trading tools.
In essence, 0DTE options introduced by Saxo Bank for the CAC 40 index present a strategic, flexible, and cost-effective tool for modern traders aiming for precision and efficiency in their trading activities.
Accessing CAC 40 Daily Options on Saxo Platforms
The following instructions are tailored for the SaxoTraderGo platform but rest assured, accessing CAC 40 daily options follows a similar process on our other platforms, SaxoInvestor and SaxoTraderPro.
- Open the SaxoTraderGo Platform: Start by logging into your Saxo account, as you would normally do.
- Search for the CAC 40 Index: Use the search bar at the top of the platform, as shown in the screenshot, and type in "CAC 40". The search bar is identified by a magnifying glass icon and is located near the top of the screen.
- Review the Search Results: After entering "CAC 40", the platform will display a list of related products and instruments. You'll see various listings under 'Product overview', which includes indices, futures, and options related to CAC 40.
- Select Daily Options: Look for the entries labeled "CAC 40 Index Daily". These are the daily options you are interested in. They are typically listed with the day’s date for clarity, such as "CAC 40 Index Daily (29)" for options expiring on the 29th.
- Choose an Option to Trade: Click on the specific daily option you wish to trade. For example, if you want to trade the option expiring on the 28th, select "CAC 40 Index Daily (28)" from the list.
- Examine the Option Details: Upon selecting a daily option, you'll be able to see the expiry time, which is crucial for 0DTE options. Make sure the expiry time matches your trading strategy and desired time frame.
- Initiate the Trade: Once you've identified the correct daily option, click on it to access the options chain. In the options chain, you can either click directly on a specific bid or ask price to open an order ticket for a straightforward transaction, or right-click to select an options strategy if you're looking to place a more advanced combination order. The options chain provides a detailed view of all available strike prices and their respective bid and ask quotes, allowing you to make informed decisions and execute trades efficiently.
Remember, the availability of daily options and their details may vary each trading day, so it is essential to verify the date and expiry time for the options you are interested in trading.
The Advantages of Saxo Bank's Support for CAC 40 Daily Options
Saxo Bank's role as a supporting broker for the newly launched CAC 40 daily options brings with it a suite of benefits for our clients, thanks to our foundational relationships and technical infrastructure:
- Close Contact with Euronext: Our direct line of communication with the exchange ensures that we are always abreast of the latest developments and can provide immediate updates and insights to our clients.
- Liaison with Market Makers: We maintain strong relationships with the market makers responsible for providing liquidity, which enables us to offer competitive pricing and ensures that our clients can execute trades even in fast-moving markets.
- Direct Exchange Connectivity: Our direct connection to the exchange underpins our robust trading infrastructure, facilitating high-speed trade execution and reliability, allowing our clients to trade with confidence and precision.
Being a supporting broker from day one highlights Saxo Bank's commitment to providing cutting-edge trading options and positions our clients at the forefront of market innovations.
Continuing Education and Insights on CAC 40 Daily Options
In the upcoming weeks, Saxo Bank is dedicated to publishing a series of informative materials on the new CAC 40 daily options. These resources will guide investors and traders through the nuances of trading these innovative products and will highlight how they can be strategically incorporated into a diversified investment portfolio. Our aim is to empower you with the knowledge and skills needed to fully leverage the benefits of these options.
Additionally, we are excited to share in the coming days a short video from last Monday's bell ceremony. It was an honor for Saxo Bank to participate in the ringing of the closing bell at the Euronext Paris stock exchange, marking the conclusion of the first trading day featuring these options. This ceremonial event symbolizes our active role in the introduction of CAC 40 daily options and our commitment to being at the forefront of financial innovation.
Stay tuned for these upcoming insights, and join us in exploring the potential of CAC 40 daily options.
Attached is the factsheet provided by Euronext about the new CAC 40 Daily Index Options:
CAC40_Daily-Options_Factsheet-EN_260224
For continuous insights and updates on market/options strategies, interact with me/follow my social media account on Threads.
Previous episodes of the "Saxo Options Talk" podcast
- 28 Feb 2024: Options Talk - Episode 09 - Volatility
- 21 Feb 2024: Options Talk - Episode 08 - Rolling
- 14 Feb 2024: Options Talk - Episode 07 - Put Spreads
- 7 Feb 2024: Options Talk - Episode 06 - Delta
- 31 Jan 2024: Options Talk - Episode 05 - Short Call Spreads
- 24 Jan 2024: Options Talk - Episode 04 - Long Call Spreads
- 17 Jan 2024: Options Talk - Episode 03 - Long Calls
- 10 Jan 2024: Options Talk - Introducing -Options Talk by Koen and Peter- -Your Weekly Podcast on Options Trading
Previous "Volatility reports":
- Volatility report - week 9 - 26 feb 24 -- 1 mar 24
- Volatility report - week 8 - 19 feb 24 -- 23 feb 24
- Volatility report - week 7 - 12 feb 24 -- 16 feb 24
- Volatility report - week 6 - 5 feb 24 -- 9 feb 24
- Volatility report - week 5 - 29 jan 24 -- 2 feb 24
- Volatility report - week 4 - 22 jan 24 -- 26 jan 24
- Volatility report - week 3 - 15 jan 24 -- 19 jan 24
Previous "What are your options" articles:
- 23 Feb 2024: What are your FX options - NZDUSD and NZDJPY
- 12 Feb 2024: What are your FX options - USDJPY - after 148 breakout
- 24 Jan 2024: What are your options - Tesla Q4 Earnings
- 18 Jan 2024: What are your FX options - EURUSD elevated volatility
- 12 Jan 2024: What are your options - Coinbase after BTC ETF approval
- 21 Nov 2023: What are your options - Nvidia earnings
- 08 Nov 2023: What are your options - Disney earnings
- 26 Oct 2023: What are your options - Nasdaq Selling Premium
- 29 Aug 2023: What are your options - Salesforce earnings
- 25 Aug 2023: What are your options - the Qs - Nasdaq etf
- 23 Aug 2023: What are your options - Nvidia - earnings - market reactions
- 21 Aug 2023: What are your options - swing trading semi-conductors - stocks vs options
- 18 Aug 2023: What are your options - using TLT as an inverse proxy for the 10 year yield
Related articles:
- From zero to hero - buying options
- From zero to hero - selling options
- From zero to hero - option strategies
- From zero to hero - options lexicon
- Why options strategies belong in every traders toolbox
- Understanding and calculating the expected move of a stock etf index
- Understanding Delta - a key guide for Investors and Traders - part 1
- Understanding Delta - a key guide for Investors and Traders - part 2
- Trading 0DTEs - get your feet wet - without drowning - part 1
- Trading 0DTEs - get your feet wet - without drowning - part 2
Previous "Investing with options" articles:
- 19 Feb 2024: Investing with options - Securing your tech stock gains with simple hedging strategies - 2of2
- 19 Feb 2024: Investing with options - Securing your tech stock gains with simple hedging strategies - 1of2
- 2 Feb 2024: Investing with options - Microsoft - buying stock or options - a comparison
- 25 Jan 2024: Investing with FX options - Hedging USDJPY currency risk
- 8 Jan 2024: Investing with FX options - Hedging currency risk
- 30 Nov 2023: Investing with options - striking gold (GLD)
- 23 Nov 2023: Investing with options - hedging the Nasdaq 100
- 17 Nov 2023: Investing with options - Nvidia - pre-earnings
- 10 Nov 2023: Investing with options - AdYen - post investor day
- 31 Oct 2023: Investing with options - Novo Nordisk earnings
- 31 Oct 2023: Investing with options - Apple earnings
- 24 Oct 2023: Investing with options - Amazon earnings
- 24 Oct 2023: Investing with options - Meta Platforms earnings
- 23 Oct 2023: Investing with options - Alphabet earnings
- 20 Oct 2023: Investing with options - Microsoft earnings
- 18 Oct 2023: Investing with options - Tesla earnings
- 17 Oct 2023: Investing with options - long bonds - TLT
Options are complex, high-risk products and require knowledge, investment experience and, in many applications, high risk acceptance. We recommend that before you invest in options, you inform yourself well about the operation and risks. In Saxo Bank's Terms of Use you will find more information on this in the Important Information Options, Futures, Margin and Deficit Procedure. You can also consult the Essential Information Document of the option you want to invest in on Saxo Bank's website.
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