Cluster E: Trading Strategies
From covered calls to volatility arbitrage. Every strategy is both a directional view and a volatility view combined.
Covered Calls and Cash-Secured Puts
Mechanics, payoff profiles, when they underperform, assignment management, roll decisions
Vertical Spreads
Bull/bear call/put spreads, max profit/loss, breakevens, spread width selection
Iron Condors and Iron Butterflies
Construction, profit zones, adjustments, expected move relationship, wing width considerations
Calendar, Diagonal, and Double Diagonal Spreads
Time spread mechanics, vol term structure exploitation, diagonal as directional and time play, double diagonal as range-plus-vol trade with long back-month wings
Straddles and Strangles
Long vol vs short vol plays, breakeven math, managing undefined-risk positions, vol crush scenarios
Ratio Spreads and Backspreads
Ratio writes, backspreads for tail exposure, risk profiles and margin implications
Butterfly Spreads and Condor Variations
Broken-wing butterflies, skip-strike structures, synthetic butterfly replication
Collar Strategies
Zero-cost collars, put hedging economics, portfolio insurance costs
Volatility Trading Strategies
Trading implied vs realized, gamma scalping, vega-neutral portfolios, dispersion trading concepts
0DTE Strategy Considerations
Extreme gamma, rapid theta, pin risk, liquidity dynamics on expiration day, unique risks
Multi-Leg Adjustments and Repairs
Rolling, widening, converting losing positions, when to take the loss, adjustment decision frameworks
Synthetic Positions
Synthetic long/short stock, synthetic calls and puts, box spreads, conversion and reversal mechanics
Gamma Exposure (GEX) Analysis
Aggregate dealer gamma, GEX as a market structure signal, flip levels, hedging flow mechanics
VEX and Charm Flow Analysis
Aggregate dealer vanna, charm-driven delta adjustments, IV-driven hedging flows, expiration-driven dynamics