XDTE: Night Shift Alpha But Higher Volatility

  • XDTE applies a 0DTE covered call strategy to the S&P 500, similar to QDTE's approach with the NDX. The core holding uses deep in-the-money S&P 500 options, closely tracking equity performance with minimal downside protection. Daily out-of-the-money call options generate income, aiming to provide alpha over simply holding the S&P 500.