0DTE Volatility Expands With New 24-Hour Trading Hours for Russell 2000 Index Options

• Cboe has expanded trading hours for Russell 2000 (RUT) options to nearly 24 hours a day, five days a week, allowing global investors in Asia and Europe to manage U.S. small-cap exposure during local business hours according to a press release.
• In January 2026, zero-days-to-expiry (0DTE) trading accounted for 23% of RUT options activity, underscoring growing demand for short-dated strategies among retail and institutional investors as reported.
• This move reflects broader market dynamics, with investors increasingly using RUT options for hedging, yield generation, and real-time trading strategies, as global volatility and dispersion in market movements rise according to market analysis.

Cboe Global Markets has launched nearly 24-hour trading for Russell 2000 Index (RUT) options, aiming to enhance access for investors in Asia and Europe. This expansion aligns with the increasing demand for options-based strategies, particularly 0DTE positions, which now make up 23% of RUT options activity in January according to data.

The move to offer extended trading hours complements existing offerings like S&P 500 (SPX) and VIX options, which are also available 24 hours a day. It supports global investors in acting on strategies in real-time, regardless of their local time zone as noted in a report.

Cboe aims to empower investors with the tools and flexibility to manage U.S. small-cap exposure more effectively. This includes a focus on short-dated options strategies such as 0DTE, which have become increasingly popular as markets shift from traditional large-cap dominance to a broader range of strategies according to Cboe's announcement.

What is the significance of Cboe's 24-hour RUT options trading?

Cboe's expansion of RUT options trading hours to nearly 24 hours a day, five days a week, is significant for global investors seeking real-time access to U.S. small-cap markets. This change enables investors in Asia and Europe to manage their exposure to the Russell 2000 Index during local business hours, improving the ability to act on market opportunities without time constraints as detailed in their announcement.

This expansion supports a growing demand for flexible trading strategies, especially for those using 0DTE options. With 23% of RUT options activity in January involving 0DTE trading, the move reflects an increased interest in short-term, precise market positioning according to market analysis.

Cboe's decision to expand trading hours is part of its broader strategy to provide global access and support diverse investor needs. It also aligns with the record volumes observed in 2025 for extended-hour options trading as reported.

How does 0DTE trading impact investor strategy?

Zero-days-to-expiry (0DTE) options are increasingly being used by both retail and institutional investors to hedge, generate yield, or implement targeted strategies. In January 2026, 0DTE trading accounted for 23% of RUT options activity, indicating strong interest in these short-term instruments according to trading data.

The rise in 0DTE trading reflects a shift toward more dynamic and precise trading strategies. Investors are using these options to act on market movements in real-time, which is particularly relevant in a market environment marked by volatility and dispersion as explained in their release.

Cboe's 24-hour trading hours for RUT options enable investors to react to market conditions as they unfold, regardless of their location. This flexibility is especially valuable for those managing U.S. small-cap exposure across different time zones as reported.

What are the implications for small-cap volatility and market dynamics?

The expansion of RUT options trading hours and the rise in 0DTE activity highlight growing interest in small-cap volatility strategies. Investors are increasingly using options to navigate a market environment that is shifting away from large-cap dominance and into more fragmented exposure according to market analysis.

Quantitative volatility indicators suggest heightened market stress, with dispersion and correlation breakdowns signaling potential turbulence. This environment supports strategies like dispersion trades, where investors profit from volatility in individual stocks versus the broader index as warned by market experts.

As markets evolve, the demand for tools that allow real-time strategy execution is likely to continue. Cboe's expanded RUT trading hours are positioned to meet this demand, supporting a range of strategies from hedging to yield generation according to company reports.