Zero Day Exploit Trade (ZDE)

An options trade that is entered either on the day of expiry or the day before. This is named after computer security term. In the case of the options trade we are exploiting the extreme theta crush of the short time to expiry and also the potential delta in our favor as some of the options expire ITM. Generally done with spreads that are net shortThe concept of being more short than long in an options spread by creating options spreads where you are selling more structures than you are buying or selling wider structures than the ones you are buying. Example would be a broken wing butterfly. This spread is made up of two structures, one long vertical and one short vertical. In the BWB, the short vertical is wider than the long vertical. When you are long this spread, you are said to be in an options position that is "net short"
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