Jade Lizard

Neutral to Bullish Outlook & High Volatility Directional Assumption:  Neutral / Bullish Setup: – Sell OTM Short Put– Sell OTM Vertical Short Call Spread –you want at least 30 cents on a call spread and 70 cents on the short put. – Can use around earnings The trade is suitable Read more…

Short Naked Call

Bearish Outlook & High Volatility The Setup Sell 1 OTM Call above the market for a credit. Timeline Enter trade for 30 – 60 days Volatility Since I am a seller of this option I will only enter the trade when IV is above 50%. Decreasing IV will help this Read more…

Short Iron Condor

Neutral Outlook & High Volatility The Setup Sell 1 OTM Put; Buy 1 OTM Put at Lower Strike; Sell 1 OTM Call; Buy 1 OTM Call at Higher Strike for a net credit. Timeline 30-60 days until expiration is optimal. This gives enough time for theta to work out. Volatility Read more…

Short Strangle

Neutral Outlook & High Volatility Directional Assumption:  Neutral Setup: – Sell OTM Call– Sell OTM Put Timeline:- around 45 days Ideal Implied Volatility Environment:  50% or greater. Implied volatility (IV) plays a huge role in our strike selection with strangles. The higher the IV, the wider our strangle can be Read more…

Short Straddle

Neutral Outlook & High Volatility Directional Assumption:  Neutral Setup: – Sell ATM Call– Sell ATM Put Timeline: 45 days Ideal Implied Volatility Environment:  50% or greater. Implied volatility (IV) plays a huge role in my strike selection with straddles. The higher the IV, the more credit I will receive from Read more…