Short OTM options strategies are highly likely to hit profit targets between 25% and 50% at some point in the duration of the trade. Short 45 DTE 16Δ SPY strangles, for example, have roughly a 90% chance of reaching a 50% profit target. On average, it has taken roughly 15 trading days (about 24 days) for this target to be reached. How does implied volatility impact these profit statistics? Join Tom and Tony as they break down whether implied volatility significantly impacts profit statistics.
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