We like to look for periods of highin order to sell premium.
How often do these periods come up? And when they do, what should we be trading?
Looking at Market Measures “," we concluded that to optimize P/L, we sell close to the money strangles when is high, and farther out when IV is low.
A note of caution: we are going to see many more occurrences with 16since IV and IVR are usually low.
Do not get discouraged if you aren’t able to capitalize on high IVR opportunities since they are rare to begin with.