Cboe analyzes Bitcoin perpetual futures and 0DTE options

SPX: SPX is the ticker symbol for the S&P 500 Index, a broad benchmark of large U.S. companies and the underlying reference for many index-options strategies. The news specifically discusses volatility-selling activity in SPX 0DTE options, where capped-risk positions are commonly used. 0DTE Options: 0DTE options are options that expire on the same trading day they are opened, allowing traders to express or hedge very short-term views on market volatility. The news compares them with perpetual futures and emphasizes that their downside can be constrained through defined-risk structures such as vertical spreads and iron condors. Perpetual Futures: Perpetual futures are derivative contracts without an expiration date that use periodic funding payments to keep prices aligned with an underlying asset. In the news, Bitcoin perpetual futures are presented as a volatility-selling strategy whose recurring funding income can expose traders to substantial downside during sharp market moves. Funding: Recent market snapshots show Bitcoin perpetual-futures funding remaining positive overall, meaning long positions generally pay short positions, although rates vary substantially across venues. Market Context: Recent Bitcoin funding data has also shown episodes of negative funding when open interest declined, highlighting how the recurring payment stream can reverse with market positioning. Risk Structure: The key distinction in the comparison is that option sellers can use spreads or iron condors to define the maximum loss at trade entry, whereas perpetual-futures funding exposure does not inherently impose a comparable loss cap.