Chart Setup

• Select underlyings with a weekly chart in the middle of wide and flat 3-ART bands
• Close to the 21 EMA
• RSI between 40-60

Trade Mechanics

• Size each trade for maximum initial credit between 1-3% of Net Liq
  • This will insure a 1.5X Max Loss < 2% of Net Liq
• Place new Strangle as one comes off and BP is available
• Trades usually hit profit target around 30 DIT
• Spread the underlyings and DTE

Trade Entry

• Aim for 90 DTE (80-100 DTE is OK)
• Sell 6 Delta Calls
• Sell 7 Delta Puts
• Can lower the Delta if need for BP or sizing

Trade Management

• Profit target 50%
• 1.5X Max Loss (Stop Loss at 2.5 times the initial credit)
  • Secondary stop is 21 DTE to avoid Gamma risk
• Can close early if you can get a better APR