Short Put

tastytrade.com - Sell put OTM

- Probability of profit around 80%

Covered Call
- Long stock plus a short OTM call
- Probability of profit around 60%

Bullish Wide Iron Condor

- Credit put vertical OTM and credit
call vertical OTM.
- Probabiltiy of profit around 60%

High Volatility Strangle

Neutral
(30+ IV Rank) - Short OTM put plus a short OTM
call
- Probability of profit around 70%

Short Call
Bearish
- Sell call OTM
- Probability of profit around 80%

Call Ratio Credit Spread

- Sell two OTM Calls buy one call
closer to ATM
- Probabilty of profit around 85%

Start Here Debit Call Vertical

- Buy call ITM, sell call OTM
- Probability of profit around 50%

Call Diagonal
- Short front month OTM call, long
back month ATM call
- Probability of profit less than 50%

Bullish Calendar Spread

- Short ATM call in front month,
long same strike call in back
month
Low Volatility Neutral - Increases in implied volatility
(<30 IV Rank) beneift this position
- Positive time decay
- Low probability trade
Bearish Debit Put Vertical
- Buy put ITM, sell put OTM
- Probability of profit around 50%

Anton Kulikov, BS
Put Diagonal
anton@tastytrade.com - Short front month OTM put, long
Mike Hart, MBA back month ATM put
mike@tastytrade.com - Probability of profit less than 50%
Michael Rechenthin, PhD
 tastytrade.com Close and
IV Rank is high restablish
(over 30) position in next
expiration cycle

Position has less

than 21 days to
expiration

Close entire
IV Rank is low
position
(under 30)
regardless of P/L
Undefined Risk
Position

Leave alone until

No side has been
21 days to
breached
expiration

Position has more

than 21 days to
expiration

Roll untested
Undefined risk side closer to the
side has been money in same
breached cycle

Short Premium
Positions Start
Here Close and
IV Rank is high reestablish
(over 30) position in next
expiration cycle

Position has less

than 21 days to
expiration
Hold until
Position at a loss scratch or
expiration

IV Rank is low
(under 30)

Defined Risk
Position Position profitable
Close position
or at scratch

Anton Kulikov, BS
anton@tastytrade.com Position has more Leave alone until
than 21 days to 21 days to
Mike Hart, MBA expiration expiration
mike@tastytrade.com