22 August 2018

"Best" Option Strategy for each Implied Volatility rank


Implied Volatility percentile Strategy
Net Buyer
0 to 50 Debit Spread
Calendar Spread
Ratio Spread
Diagonals
Net Seller
50 to 70 Credit Spread
Iron Condor
Broken wings butterfly
Net Seller
70 to 100 Straddle
Strangle
Wide iron butterfly
Place trades at ~ 45 days to expiration, sell at ~15 days to expiration
25 - 40 days - sell
< 45 days - buy

Credits: Option Alpha

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