New rising star in the ETF industry makes a big move again! Expected to launch zero-day options for popular stocks such as NVIDIA.

The rising star in the exchange-traded fund (ETF) industry once again rolled the dice with a new product, this time betting on the expansion of the Wall Street zero-day options (0DTE) craze that is changing the game rules. As the name suggests, zero-day options have less than 24 hours until expiration, meaning they can result in huge returns in just a few hours, hence being called "like a lottery ticket". Traders typically see it as a strategic bet against market-moving events such as economic data releases and Federal Reserve meetings. However, while this option brings high returns, traders must also bear the substantial risks behind it. Matt Tuttle, the CEO of Tuttle Capital Management, gained widespread attention in 2021. At that time, he launched a fund shorting the Ark Innovation ETF under "Woodstock" Kathy Wood. Although his Jim Cramer ETF launch ended poorly, he found success in leveraged meme stock ETFs in 2024. It is reported that Matt Tuttle has made a new move. He has applied to create a series of new products, trading derivatives of popular companies loved by retail investors, such as NVIDIA Corporation (NVDA.US), Tesla, Inc. (TSLA.US), MicroStrategy (MSTR.US), etc. Currently, publicly traded single stock options do not have products like zero-day options, meaning true zero-day options bets can only be made on Fridays when weekly, monthly, and quarterly options contracts expire. Zero-day options for major stock market indices and some ETFs have been available for close to three years, but zero-day options for individual stocks have not been introduced yet. Matt Tuttle believes that the arrival of zero-day options for individual stocks is only a matter of time. He said, "Whether it's three months from now, six months from now, or two years from now, I don't know. My thought is, if I truly believe it's coming, I want to be the first in." Meanwhile, for his new ETFs, Matt Tuttle has proposed an alternative plan. If the U.S. Securities and Exchange Commission (SEC) does not object, these new ETFs could be launched in the first half of this year. These ETFs would trade so-called Flex options - options that allow users to set terms like exercise price and expiration date, and roll daily, customized contracts. Matt Tuttle stated that these contracts could be listed on exchanges without prior approval. With the $11 trillion U.S. ETF industry being familiar with preparing investment strategies before demand, feasibility, and regulatory approval are guaranteed, increasingly complex strategies featuring leverage and return objectives are being packaged into easily tradable forms and sold to the public. Matt Tuttle is trying to capitalize on two hot but controversial trading trends on Wall Street: selling options for income and trading zero-day options. His company plans to launch a series of so-called zero-day covered-call ETFs, mainly targeting tech giants like Apple Inc. (AAPL.US), Microsoft Corporation (MSFT.US), etc. Ben Johnson, head of client solutions at Morningstar, said that this industry emphasizes the advantages of being first, while noticeably disregarding risks in many strategies, highlighting the fierce competition among companies for new business. He said, "Once again, the ETF industry has fired a shot from its 'spaghetti cannon', hoping some of these products can establish themselves in the market. ETF issuers clearly don't care much about whether these products truly have long-term investment value." It is worth mentioning that ETFs related to zero-day options are not a new concept. For example, companies like Defiance ETF and Roundhill Investments have already launched ETFs targeting the S&P 500 Index and the Nasdaq 100 Index, aiming to generate income from related zero-day option contracts. A spokesperson for Cboe Global Markets Inc (CBOE) stated that, unlike the CBOE Global Markets proprietary S&P 500 Index options, the listing of zero-day options on individual stocks is an industry-wide effort. Eric Balchunas, Senior ETF Analyst at Bloomberg Intelligence, said, "The ETF industry is very clever in finding solutions and can buy time until the actual products are ready." "Ultimately, how the sausage is made is not that important for investors. They only care about whether they can get that tasty hot sauce and the end product."