Options strategy

url: https://opcalc.app/
title: "Options Profit Calculator | OpCalc"
description: "Free options profit calculator. Model any options strategy before you trade. See max profit, max loss, breakeven, and P/L chart. Powered by Black-Scholes."
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Strategy where I buy calls on stocks that have unusually low IV relative to their own history (low IV Rank). The idea is pretty simple — buy cheap optionality at 20-30 DTE, and exit when either IV expands back toward normal or the stock moves up and I pick up intrinsic value. Two ways to win. I keep my premium small per trade since I'm still wrapping my head around the Greeks properly. The weakness I'm aware of is that without a specific catalyst, I'm basically just betting on IV mean-reversion which is slow and not guaranteed. Currently tweaking my approach around strike selection (moving toward ATM for more vega) and extending DTE to reduce theta bleed.

Regime dependent. You would have been crushed in the low vol/sideways market era of 2016. Current administration provides a good floor to the vol with all the shenanigans. AI trade is going to lead to a lot of winners and losers so direction will matter (RV could exceed IV).

Doing the exact same thing but buying mixture of calls and puts based on price action of stock and to benefit from convexity. Been profitable for about 6 months but having a breakeven April so far. Usually stick to 20 to 30 dte or dte of double the expected duration for the trade to hit TP. But so far usually close trade within a few days only.