Options Trading Strategies
Here is a list of some common options trading strategies and when you might employ them.
When IV is Low:
- Diagonals
- Calendars
- Time Ratios
- Back Ratios
- Short Condors
- Short Butterflies
- Unbalanced Condors
- Broken Wing Butterflies
When IV is High:
- Unbalanced Condors
- Broken Wing Butterflies
- Front Ratios
- Time Ratios
As you can see we are fond of using Unbalanced Spreads as well as Ratio Spreads in all types of markets. Credit Spreads on the other hand, are too risky for our style of trading, so we never use them as a stand alone strategy.
