Tastyworks IRA account holders can hold naked short positions which can give them more trading flexibility and higher potential theta collection. We know that adding a short call to a naked short put won’t have much influence on the buying power, but it can largely increase the premium we collect and give us a higher ROC with a similar probability of profit.
According to our study on GDXJ, compared to naked short positions in 30 delta call or 30 delta put, a 30 delta strangle roughly doubled the premium we collected with only a 3% increase in buying power, thus roughly doubling our ROC. Also, a 30 delta strangle can help us to collect higher theta with a similar probability of profit.
Tune in as Tom and Tony walk through this information in depth!