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