TT - MM: Managing Winners - High IV, 9/09/13

TastyTrade - Market Measures

Take-away:

• Entry: past 5 years in AMZN and BIDU
• Sell 1SD Strangle w/45DTE
• IV Rank > 50%
• IV Rank > 75%
• Exit:
• Close at 25%, 50%, and 75% of max profit
• Compare to holding until expiration
• If target % is not reached hold until expiration

• Waiting for 75% IV Rank greatly increases the average P/L-per-day.
• Holding until expiration did not return the highest profit and was nearly the lowest average P/L-per-day.