Originally Posted by
mispoken
I prefer iron condors, iron butterflies, strangles and straddles for volatility crush plays (earnings). Or really, anything with elevated implied volatility rankings regardless of earnings or not. Tastyworks has a great and straight forward display of IVR.
Mispoken and JamesBond, your posts are great, thanks for the info and discussion. I just started dabbling in options using the Tasty approach. Question: if I understand correctly, the overall goal is a lot of trades, each with a potentially small reward ($100-$500) and often with limited risk (maybe $500-$1000). By using tools such as IV, the goal is to tip the odds in our favor over the course of a lot of trades. Is that about right?
I’ve started trading with some small-scale, limited risk covered calls and iron condors/butterflies just to watch them play out and learn. Do you guys keep the majority of your portfolio in buy-and-hold stocks and use a small portion for options? Obviously if a few hours a month of option trading can average 1-10% per month, that seems pretty worthwhile, so I’m wondering how you diversify your funds.
I’m loving the options world, and how it appears to be somewhat of an art and a skill that can be learned, so again, thanks for the time in posting.