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Market Measures

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Realistic Profit Expectations

Market Measures

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

What % per year in an account is realistic to make when we adjust for realistic factors: mainly changing IV?

Study
  • SPY
  • 2005 - present
  • Recorded historical actual return on capital for 16, 20, and 30 delta strangles managing at 21 DTE.
  • Adjusted account allocation for implied volatility.

We find that on average, we can expect to make 15% a year by selling strangles with tastytrade mechanics and take on roughly 10% of portfolio volatility.

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