Nothing is free. This applies to everything in trading including selling premium inenvironments. What is the cost to selling premium in various IV environments?
Sold 1Strangles in SPY, 45 DTE, Since 2005
Segregated by IVR levels
Recorded average P/L, success rate, standard deviation of P/L
Ultimately, the tastytrade Research Department found that as we sell in higher IVR, we earn higher P/L, however, we also experience greater swings in our portfolio.
Tune in for all the details and takeaways!