Today's Skinny on Options: Abstract Applications focuses on convexity in a zero-DTE options world, noting that most market volume now comes from zero-day options. Dr. Jim discusses how these instruments represent the maximum point of convexity risk, with gamma reaching its peak at expiration.

The trio explore risk management strategies, including position sizing, using defined-risk trades, and preferring SPX over SPY due to cash settlement eliminating overnight exposure. They highlight how gamma exposure differs for long options (positive gamma with limited risk) versus short options (negative gamma with unlimited risk).

Lastly, the guys concludes that zero-DTE strategies work best as complements to traditional premium selling approaches rather than foundational trading strategies, with proper awareness of their inherent convexity risks.