Option Credit Trading Strategies

These are my #1 go-to strategies

Wrap your head around this: Buy into Weakness and Sell into Strength

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.