These are my #1 go-to strategies
Wrap your head around this: Buy into Weakness and Sell into Strength
High IV Bullish Strategies
IV Rank above 50%
High IV Neutral Strategies
IV Rank above 50%
Low IV Neutral Strategies
IV Rank below 30%
Earnings Strategies
IV Rank above 50%
Reminders
- Options Strategy – Choose a strategy that best fits the stock I am looking at and whether or not I’m feeling bullish, bearish, or neutral on the underlying stock price.
- Strikes & Month – Stick with 60+% probability trades.
- – high IV strategies between 30-60 days out
- – low IV strategies between 45-90 days out.
- IV Percentile – Ideally IV on each individual trade should be near 60 or better. This is found in my Tastyworks platform.
- Liquidity – My trades need to be liquid. The underlying stock should trade over 100k shares a day and there should be at least 1000 open options contracts
- Position Size – trade 1-5% of my account. Statistically, many smaller trades beat less large trades in the long run.
