Charm (also called delta decay) measures how an option’s delta changes purely from the passage of time. It’s a second-order Greek, and in the 0DTE era it’s a major driver of the end-of-day pin.

What charm does

As expiration approaches, options’ deltas migrate toward 0 (out-of-the-money) or 1.0 (in-the-money) — that drift with time is charm. Dealers hedging their books must adjust for it continuously, and near expiration on a heavy 0DTE day, that adjustment becomes a powerful, predictable flow into the close.

Charm and the end-of-day pin

“Charm pressure” is often what produces the EOD pin — the market gravitating toward a big strike as dealers bleed off delta exposure into 4:00pm. It’s a big reason the last hour so often drifts toward and sticks near a round number, especially on OPEX.

Charm is time pulling delta toward its endpoint. Into the close, that pull becomes the invisible hand pinning price to the nearest heavy strike.

What it means for a scalper

Charm explains the character of the close — drift and pinning rather than trend — which is why holding 0DTE into the bell behaves the way it does. It’s part of the higher-order Greek structure NoVo accounts for. Its volatility-based cousin is vanna.