IMPLIED VOLATILITY

Low Neutral
Buy Naked Puts Sell the
Bear Vertical Spreads: Underlying
Buy ATM Call/Sell ITM Call
Bearish
Buy ATM Put/Sell OTM Put
Sell OTM (ITM) Call (Put) Butterflies
Buy ITM (OTM) Call (Put) Time Spreads
M
A
R Backspreads Do Nothing
K Buy Straddles/Strangles
E Neutral
Sell ATM Call Or Put Butterflies
T
Buy ATM Call Or Put Time Spreads
D
I
Buy Naked Calls Buy the
R
E Bull Vertical Spreads Underlying
C Buy ATM Call/Sell OTM Call
T Bullish
Buy ATM Put/Sell ITM Put
I
O Sell ITM (OTM) Call (Put) Butterflies
N Buy OTM (ITM) Call (Put) Time Spreads
VOLATILITY
High
Sell Naked Calls
Bear Vertical Spreads:
Buy OTM Call/Sell ATM Call
Buy OTM (ITM) Call (Put) Time Spreads
Buy ITM (OTM) Call (Put) Butterflies
Sell OTM (ITM) Call (Put) Time Spreads

Ratio Vertical Spreads

Sell Straddles/Strangles
Buy ATM Call Or Put Butterflies
Sell ATM Call Or Put Time Spreads

Sell Naked Puts

Bull Vertical Spreads
Buy ITM Call/Sell ATM Call
Buy OTM Put/Sell ATM Put
Buy OTM (ITM) Call (Put) Butterflies
Sell ITM (OTM) Call (Put) Time Spreads