Chart Setup

• Bullish trending weekly chart
• Above 21 EMA, 50MA
• MACD rising, RSI rising
• Reversing from oversold or bouncing off support

Trade Entry

• Aim for 75 DTE
• Sell 12-14 Delta Puts
• Typically around 5 or 10 wide, depending on underlying
• At least 10% credit to BP ratio minimum
• Sizing: Allocate up to 5% of Net Liq in BP, if assigned

Trade Management

• 70-80% profit target
• Take assignment if ITM at expiration
  • If past Short Strike near expiration, look to close Long Puts for profit

If assigned:

1. If not enough BP to add more shares, then write a weekly ATM Call Spread
   • If the underlying moves through the Short Strikes, take profit on the Long Calls
2. If enough BP to add more contracts, then Sell a new weekly Call Spread against it and a new naked Put Spread to make it a Covered Spread Strangle
   • Use 20-30 Delta for the Short Strikes