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Selling Put Spreads on High IV Rank Stocks — Income Strategy

r/thetagangoptionsMonthly cycles (30-45 DTE)by reddit_community

Sell put spreads when IV Rank >50%. 30/15 delta, 30-45 DTE. Close at 50% profit. 83% WR on 100+ trades. Max 3% risk per position. 2-3% monthly income.

ENTRY RULES

IV Rank above 50% (relative to 52-week range) | Sell 30-delta put, buy 15-delta put | 30-45 DTE | Premium collected > 1/3 of strike width | Stock fundamentals must be solid (no bankruptcies) | Max 6 concurrent positions

EXIT RULES

Close at 50% of max profit | Close at 21 DTE regardless of profit | Stop loss at 2x premium collected | Roll down and out if tested (stock drops to short strike) | Never take assignment on a spread

INDICATORS

IV RankDeltaDTEPremium/Width Ratio

ORIGINAL POST

289
r/thetagangposted by reddit_community

Selling Put Spreads on High IV Rank Stocks — Income Strategy

Systematic put spread selling when IV Rank is above 50%. Sell 30-delta put, buy 15-delta put as protection. 30-45 DTE. Close at 50% profit. On 100+ trade sample, win rate is 83%. Average return on risk is 12%. Only on stocks you would be comfortable owning. Portfolio allocation: no more than 3% of portfolio risk per position, max 6 concurrent positions. Monthly income averages 2-3% of portfolio.

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