There is another major move in the ETF sector! Popular stocks like NVIDIA are expected to launch end-of-month options this year

Tuttle Capital Management, the innovative leader in the ETF industry, has launched a new product, this time betting on Wall Street's zero-day-to-expiration (0DTE) related products.

Previously, Tuttle Capital Management's CEO, Matt Tuttle, gained widespread attention in 2021 when he launched a fund that shorted "Cathie Wood" Ark Innovation ETF. Although his launched Jim Cramer ETF ended poorly, he achieved great success with leveraged popular stock ETFs in 2024.

Currently, Matt Tuttle has new moves. He has submitted an application to create a series of new products that will trade zero-day-to-expiration derivatives of popular companies favored by retail investors, such as NVIDIA, Tesla, and MSTR.

Currently, there are no single stock options publicly traded that are zero-day-to-expiration products, meaning that true zero-day-to-expiration bets can only be made on the Friday when the options contracts expire. Zero-day-to-expiration options for major U.S. stock indices and some ETF products have been available for nearly three years, but single-stock zero-day-to-expiration options have not yet been launched.

Tuttle believes that the arrival of zero-day-to-expiration options for individual stocks is just a matter of time. "Whether it's three months, six months, or two years from now, I don't know. My thought is that if I really believe this will happen, I want to be one of the first to participate."

Tuttle has come up with a workaround for his new ETFs. If the U.S. Securities and Exchange Commission (SEC) does not oppose, these new ETFs may be launched in the first half of this year. These ETFs will trade so-called Flex options—options that allow users to set terms such as strike price and expiration date, and roll daily, making them customized contracts. These contracts can be listed on exchanges without prior approval.

Tuttle is trying to capitalize on two popular yet controversial trading trends on Wall Street: selling options to generate income and trading those zero-day-to-expiration options. His company plans to launch a series of so-called zero-day-to-expiration covered-call ETFs, primarily targeting tech giants like Apple and Microsoft.

It should be noted that ETFs related to zero-day-to-expiration options are not a new concept. For example, Defiance ETF and Roundhill Investments have already launched ETFs targeting the S&P 500 and Nasdaq 100 indices, aiming to generate income from related zero-day-to-expiration options contracts.

The $11 trillion ETF industry in the U.S. is no stranger to preparing investment strategies before demand, feasibility, or even regulatory approval is confirmed. Increasingly complex strategies, with diversified leverage and return targets, are packaged into easily tradable forms and sold to the public.

Ben Johnson, head of client solutions at Morningstar, stated that the industry emphasizes first-mover advantage and a clear disregard for the risks of many strategies, highlighting the intensifying competition among companies for new business"The ETF industry has once again fired a shot from its spaghetti cannon, hoping that some of these products can establish a foothold in the market. ETF issuers clearly do not care much about whether these products truly have long-term investment value."

A spokesperson for the exchange stated that unlike the proprietary S&P 500 index options from the Chicago Board Options Exchange (CBOE) Global Markets, the end-date options for listed single stocks are an industry-wide effort.

Bloomberg analysts say that the ETF industry is very clever in seeking solutions to buy time until the real products are ready. After all, how the sausage is made is not that important to investors. They only care about whether they can get that delicious hot sauce and ultimately receive the product