Been playing around with a 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. Anyone run something similar? What's your process for finding names where IV is likely to actually expand? Anything that im missing here??

    I cant use a margin account, since im not looking for that kind of risk and also cant sell calls or puts.

    Options strate that i figured out on my own
    byu/Upper_Location_922 inoptions



    Posted by Upper_Location_922

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