S&P 500 ETF Hits Record 63% 0DTE Volume as PMI Falls to 51.4
Zero-day expiry options made up a record 63% of SPX volume in February, driving put unwinds and a SPY bounce around the 655 strike. The S&P Global Flash U.S. Composite PMI dipped to 51.4 as input costs rose at the fastest pace in ten months and private sector employment contracted.
1. Surge in 0DTE Options
Zero-day expiry options commanded a record 63% share of SPX volume in February, underscoring traders’ shift toward near-daily tactical instruments. The SPY 655-strike saw the second-highest 0DTE activity on Wednesday, and the subsequent put unwinds around that level helped stabilize the ETF after it dipped to 655.17.
2. Slowing PMI and Employment Decline
The S&P Global Flash U.S. Composite PMI fell to 51.4 in March, signaling cooling expansion as input costs jumped at the fastest rate in ten months. Private sector employment contracted for the first time since February 2025, prompting markets to pare rate-cut expectations and heighten volatility risks for equity ETFs.
3. Fiscal Debates on Iran War Spending
Senators including Rand Paul, Elizabeth Warren and Bernie Sanders oppose supplemental funding for the Iran conflict, citing daily costs of $1–2 billion and a $50–200 billion price tag. They warn that rising debt poses a greater security threat than foreign adversaries, a debate that could influence fiscal policy and investor sentiment in coming months.