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I believe some of the action around 1PM was auction related, but the options activity still looks strange.

Why would someone hedge with 0DTE options as opposed to normal options?

I’m no longer in that space, but I’d assume the OOTM strikes are less liquid than normal options, with higher theta as well. That looks like a very expensive hedge.

What kind of position would be hedged with these options that couldn’t be hedged with normal options?

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One of the reasons hedging with ODTE has become common for event based situations is because they are cheaper than those with expiration's later than the event date

Cheaper in what sense?

I’d assume the theta would be higher for 0dte? With normal options you could just roll out of them the next day. I guess you would be crossing 2 bid ask spreads, but is that more expensive than the theta decay?

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