Balanced risk/reward with 85-89% probability of profit. Good yield potential with reasonable protection.
Higher yield potential with 75-84% probability of profit. Requires active monitoring.
Score (0โ10): Quality score based on 6 factors (delta, IVP, liquidity, sigma distance, DTE, return on margin).
Delta: Market-implied probability proxy. Example: โ0.15 delta โ ~85% chance the option expires worthless.
Days to Earnings: Number of days until the company's earnings announcement โ the key catalyst for Strike strategies.
IVP: IV Percentile โ where current implied volatility ranks over the past year (35-80% is optimal for premium selling).
Shield: Estimated danger-floor price based on volatility and time.
๐ข FORTIFIED (โฅ5% buffer) ยท ๐ก CONSTRAINED (2-5%) ยท ๐ด EXPOSED (<2%)
ARoC: Annualized Return on Capital at risk.
Capital: Cash required to hold the position (cash-secured puts = strike ร 100 shares).