Hey Quant X Tribe,
Quick update from our latest market regime review.
If you've been sitting on the sidelines with options — read this.
The Regime Is Shifting — 0DTE Is Back In Play
We track market regimes using VIX behaviour, sector dispersion, and correlation breakdowns.
For months, the verdict was clear: stress.
VIX kept spiking. Every 0DTE setup got whipsawed. Stop losses hit before the trade had time to breathe.
Even with fat premiums, it didn't matter — the moves were too unpredictable.
But here's what's changed.
VIX is decelerating.
It's not as volatile as the previous few spikes. It's slowing down.
When VIX slows down, the market becomes more stable. More readable. More tradeable.
Our own options strategies — bull put spreads, back call spreads — have been consistently profitable for the past few weeks.
So if you've been waiting for the right conditions to run 0DTE again — based on our assessment, this is a more suitable environment.
But remember the basics:
Position size. Stop loss. Defined risk. No exceptions.
Because one headline — one policy shift — can flip the regime back to stress overnight. Trade what's in front of you, not what you hope for.
Case in point: this Wednesday (20 May), we have FOMC minutes and NVIDIA earnings on the same day. These are exactly the kind of events that can spike VIX back above 20 overnight. Stay positioned, but stay aware.
If you haven't already, paper trade for at least one week first. Check your contract sizes. Make sure everything is clean before going live.
Consider 7DTE — Here's Why
0DTE gets the attention.
But after extensive backtesting, we keep coming back to one finding:
7 days to expiry is significantly less risky — and more stable.
With 0DTE, one bad intraday candle and the trade is over.
With 7DTE, the trade has room to breathe. Price can move against you temporarily and still recover before expiry.
The risk-to-reward ratio is more forgiving. The drawdowns are shallower. The equity curve is smoother.
We've been running 7DTE scripts across different market conditions. The results hold up.
If you're going to focus on one thing for the next two months — start with 7DTE.
Want To Learn How We Build And Test These Strategies?
Most traders skip the backtest step. They see a setup, take the trade, and only find out if it works after losing money.
Inside our free Quant X Accelerator Masterclass, we break down:
What quant trading actually is (and why most traders unknowingly trade without an edge)
The I.B.O.T framework — Ideate → Backtest → Optimise → Trade
How to test your ideas before risking capital
See you there.
To your growth,
Quant X Team
Where Data Becomes Alpha
Editor: Dareen Tan
Disclaimer: The views shared here are for educational purposes only and reflect our team's opinions. They should not be taken as financial, investment, or legal advice. Please do your own due diligence before making any financial decisions.
