Once I started trading volatility only, my returns skyrocketed
u/I_HopeThat_WasFart ·
Reddit — r/options
· September 02, 2026 at 14:18
· ⬆ 21 pts
· 💬 11 comments
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I have long since been an advocate for CSPs, the strategy itself works great but the covered calls when assigned left money on the table and the calls themselves had such low IV they hardly made up for the cost of assignment and capital tie up
I switched to a pure volatility trading strategy, usually around earnings of major companies. I look for IV spikes into earnings as far out in term as possible, and as wide as possible, sometimes 6 months out and will sell as wide as I can a naked strangle that my capital will allow while leaving some to hedge the delta over the 6 months
The IV may take months to drop, but the results are incredible with some short term hedging of noise