Rules

Structure

Short put, 0.20–0.30Δ, 30–45 DTE (wheel core) or 7–21 DTE (income)

Entry criteria

• IV rank ≥ 40% (ideal: 50%+)
• Stock above 50-day SMA (or above 200d with IV rank > 65%)
• Not more than 55% off 52-week high
• No earnings within expiry window
• Max assignment risk: strike × 100 ≤ $5,000

Management

• ·Close at 70% of credit (wheel core) or 50% (income)
• ·Stop: close if loss = 2× credit received
• ·Accept assignment only if willing to hold 100 shares long-term
• ·Roll before assignment if ITM at 7 DTE — roll out for credit

Structure

Sell call against long stock, 0.25–0.40Δ, 7–21 DTE

Entry criteria

• You already own the underlying stock
• IV rank ≥ 35%
• Bullish or neutral outlook — don't sell CC if expecting big move up
• Strike above your cost basis

Management

• ·Close at 60% of credit collected
• ·Don't sell CC the week before earnings
• ·Roll up and out for credit if stock approaching strike
• ·Let expire worthless if far OTM at expiration week

Structure

Long ATM call (~0.50Δ) + short OTM put (~0.35Δ), 270–500 DTE

Entry criteria

• Deep conviction bullish thesis
• Stock above 50-day SMA (Tier 1) or above both 50d + 200d SMA (Tier 2)
• Not more than 50% off 52-week high
• IV rank 20–60% (avoid when IV too high — debit call too expensive)
• DTE: 270–500 days

Management

• ·Manage by thesis — take 25% when available, let winners run
• ·Remove short put if underlying down 18% (keep long call)
• ·Exit entirely if thesis breaks or underlying down >35%
• ·Reduce if margin starts driving decisions or portfolio DD ≥10%

Structure

Buy ATM call (~0.50Δ), sell OTM call (~0.25Δ), 45–120 DTE. Width ~5% of stock price.

Entry criteria

• Bullish momentum — stock above 50-day SMA
• IV rank ≤ 50% (avoid when IV too expensive for debit)
• Not more than 25% above 20-day SMA (don't chase extended moves)
• 5-day return not below -5%, 20-day not below -15%
• DTE: 45–120 days

Management

• ·Take 30% of max gain quickly
• ·Time stop: close at 21 DTE regardless of P&L
• ·Stop: close if 50% of debit paid is lost
• ·Don't hold through earnings if within expiry

Structure

Buy ATM put (~0.50Δ), sell OTM put (~0.25Δ), 45–90 DTE.

Entry criteria

• Bearish momentum — stock below 50-day SMA
• Clear downside catalyst or thesis
• IV rank ≤ 50%
• DTE: 45–90 days

Management

• ·Take 25% of max gain quickly
• ·Time stop: close at 21 DTE
• ·Stop: close if 40% of debit paid is lost
• ·Only with clear invalidation level defined before entry

Structure

Buy deep ITM call (0.70–0.90Δ) or ATM call, 6–18 months DTE

Entry criteria

• Strong bullish conviction on the underlying
• Stock above 200-day SMA
• IV rank < 50% (avoid buying when IV is elevated)
• Multi-month thesis — not for short-term trades
• DTE: 6–18 months

Management

• ·Take 20% gain when available; let remainder run
• ·Stop: cut at 35% loss if thesis degrades within 90 days
• ·Roll up as stock moves in your favor to lock in gains
• ·Sell covered calls to reduce cost basis