Bullish Outlook & Low Volatility
Sell 1 OTM Put in the Front Month; Buy 1 OTM Put in the Back Month at a Lower Strike Price for a net debit.
The front-month option should be at least 20 days and not more than 45 days.
Since I am a seller of this option I will only enter the trade when IV is below 50%. Rising IV will help this trade as inversely declining IV will hurt the trade.
Time decay works in my favor as long as the stock stays in its range.
This trade should be less than 1% of my account.
If my position shows a profit near 25-50% of the max potential gain, I will close the position early to lock in profits.
This varies depending on the strike price and volatility.