Bullish Outlook & High Volatility
Sell 1 OTM Put; Sell 1 OTM Call; Buy 1 OTM Call at Higher Strike Price.
30-60 days until expiration is optimal. This gives enough time for theta to work out.
Since I am a seller of this option I will only enter trade when IV is over 50%. The higher the better. Falling IV will help this trade as inversely rising IV will hurt the trade.
Time works in my favor as theta decay gives me money each day on the trade.
This trade can be scaled up to 1-2 % of my account.
If my position shows a profit near 50% of the max potential gain, I will close the position early to lock in profits.
Short Put strike price minus the net credit received.