In this particular case, XOP is a sector , so the traditional rule of thumb is to look to sell premium when the IVR is 35 or greater (as compared to individual underlyings, where the rule of thumb is look to sell premium when IVR is 70 or greater). XOP has been hovering around 50 for some time now, and it's IV is about 47, so it's not a horrible play for an , but naturally higher IVR is better.
That being said, I could also use some longer term plays on than plays, and my traditional bread and butter TLT and index trades just haven't had enough in them to bother with (although TLT is getting close).
Here's the setup I'm going to try and get a fill on:
Dec 11 31/42 short strangle for a .94 credit.
Max Profit: $94/contract
Max Loss/BPE: Undefined
I'll look to take it off at 50% max profit.