Options Risk Management: The 7 Rules That Keep Premium Sellers Alive
Most options content tells you when to sell, which strikes to pick, and how to find the right underlying. It skips the part that actually decides whether you survive: what you do when a trade goes against you. For most retail premium sellers, that is exactly where the damage happens. This piece is about the […]
High IV vs Low IV for Short Strangles: 21 Years of SPY Data
High IV vs Low IV for Short Strangles: What 21 Years of SPY Data Actually Shows The Short Answer I tested one strategy on SPY for 21 years. Every month, sell one call and one put at the same time. Same expiration date about 45 days out. Both options chosen at the “17 delta” level […]
Long Calls vs Short Puts on SPY: 21-Year Backtest
The Short Answer I tested two strategies on SPY for 21 years using real options data: buying 50-delta calls at 45 DTE, and selling 17-delta puts at 45 DTE. Same entry timing. Same exit targets (25%, 50%, hold to expiry). 212 trades each. Long Calls (50Δ, hold): 49.5% win rate, $122 average per contract, 20.6% […]
The Wheel Strategy, Backtested: What 10 Years of Real SPY Options Data Reveals (17Δ, 45 DTE)
A lot of options content makes the wheel strategy sound straightforward. You sell a cash-secured put, collect premium, and if you get assigned, you sell covered calls until the shares get called away. Then you start over. On paper, it really does look simple, and it gets pitched as a low-stress income system that practically […]
Call vs Put Breach Asymmetry in Short Strangles: What 10 Years of SPY Data Reveals (17Δ, 45 DTE)
When you sell a short strangle, you are basically making two bets at once. You are betting that the market will not go up too much. And you are betting that the market will not go down too much. As long as it stays in the middle, you keep the money. That is the whole […]
Does High IV Actually Mean Better and Safer Trades?
Undoubtedly, a lot of option traders tend to view high implied volatility as the ideal environment for selling premium. The logic seems pretty straightforward: when IV moves higher, premiums get larger, time decay speeds up, and on the surface, the setup can look more attractive. But the question is — does it actually play out […]
How to Manage Risk During Sudden Volatility Spikes or Market Crashes
Most option traders know that volatility can work against short premium strategies. But when volatility suddenly spikes — or, for example, the market drops faster than expected — it often catches people off guard. Even setups that usually feel relatively safe can start to break down pretty quickly. So, in this piece, we take a […]
IV Percentile: How to Use It Without Misinterpreting It
A data-driven guide using 10 years of real SPY options data (2016–2026) to help you better understand IV Percentile and avoid the most common mistakes when evaluating short premium setups. Part 1: The Concepts — Let’s Start Simple Imagine you’re looking at a speedometer while driving. The speedometer tells you your current speed, but it […]
Skew and Term Structure: How They Affect Your Short Premium Setups
A data-driven guide using 10 years of real SPY options data (2016–2026) to show you exactlyhow volatility skew and term structure affect every short premium entry you make. Part 1: The Concepts — Let’s Start Simple Imagine you’re buying car insurance. You pay a monthly premium, and if something badhappens, the insurance company covers the […]
How I Teach People to Use Expected Move & IV Rank to Time Entry
Why Most Traders Get Timing Wrong When people ask me “when should I sell options?”, the usual answer they hear is “when IV is high”. That’s only half the story. I teach a clearer method using two simple tools: Expected Move and IV Rank. Together they show not just “is IV high?”, but “does the […]
