Share a double selling optimization strategy that I've been using frequently recently.
Use call ratio instead of selling calls, and use put ratio instead of selling puts.
This combination yields higher returns than an iron condor.
However, the risk is still infinite, but the probability of winning is higher.
At the same time, the threshold for ddh can be set wider, significantly reducing the probability of triggering.
I haven't found any drawbacks yet. Haha. It should have poor tail risk resilience. But with ddh, there's no need to worry too much.
This combination also offers many options for rebalancing.
For example, after a sharp rise, you can close the profitable leg while continuing to hold the losing leg, waiting for it to expire worthless.
Or, you can directly add to the profitable leg, converting it into a regular bull spread or bear spread.
It can also be converted into an options grid, physical exercise, or covered call.
+theta is beneficial for positions, yielding positive returns at all times.
-vega reduces volatility, which is advantageous for positions.
