QDTE: We Saw The Worst Case Scenario Play Out

  • QDTE's zero-days-to-expiration (0DTE) option writing allows participation in overnight upside moves, reducing the downside of traditional call writing funds. However, what it can't provide is participation in sharp intra-day upside moves, where the index opens lower and then moves higher. Seeing significant intra-day volatility is its Achilles' heel, but dollar-cost averaging and reinvestment during the sharp declines can help long-term results.