FOR NOW, QQQ IS WHERE THE INDEX VOLATILITY IS AT ... .
If you're a premium seller and wait for it seems like endless bouts of sub-20 IVR to get into an index premium selling play, QQQ volatility has briefly popped above 35 IVR (currently 56; 6-Month Dough), making it the most premium rich index for the moment. Naturally, that could pass quickly, but for now, consider 45 DTE Iron Condors ... .
In considering how to fashion this particular set-up, I am operating on the notion that the ATH is around the 114 strike and so am placing the short call strike slightly north of that to allow myself wiggle room in the trade. With the put side, I am skewed bearish and attempting to create a fairly delta neutral setup ... .
EXAMPLE:
Sept 18 Expiry 98/101/116/119 IC
POP 74%
BE's at 100.58/116.49
Max Profit/Loss: $42/$258 per contract
Notes: I look to take IC's off in their entirety in the event of 50% max profit.
In considering how to fashion this particular set-up, I am operating on the notion that the ATH is around the 114 strike and so am placing the short call strike slightly north of that to allow myself wiggle room in the trade. With the put side, I am skewed bearish and attempting to create a fairly delta neutral setup ... .
EXAMPLE:
Sept 18 Expiry 98/101/116/119 IC
POP 74%
BE's at 100.58/116.49
Max Profit/Loss: $42/$258 per contract
Notes: I look to take IC's off in their entirety in the event of 50% max profit.