Originally Posted by
Gunfighter
I'll propose a better trade would be selling put premium only. The IV is >100% and the max downside loss is capped at 100%- premium collected. It's a statistical winner. Max upside loss could exceed 100%, if the stock triples.
* Please don't take me seriously, I'm playing with a paper account. My trading opinions are equivalent to flying advice from a teenager playing MS Flight Simulator.
You would get better results using this as your decision matrix.
Gunfighter does your platform offer you IV Rank? That’s much more relative if you’re premium hunting. An underlying “rank” tells you if it’s volatility is elevated relative to its historical volatility. So RMO, for example has a rank of 32. Not bad for premium, but not great. I can’t remember if you said you use TW or TOS. TW has this built into the platform, TOS requires a macro which I have somewhere and can get it to you if you’re interested.