selling of net premium option contracts from diverse financial products (etfs, equities, futures) including 0 day to expiration options.
small and scattered positions that are far out of the money, across different time frames and calendar months, using no directional bias.
mixture of automatic trading to achieve 100% consistency in execution without the wavering of emotion and human intervention. A "hands off" approach.
Everything is correlated to a degree. Best efforts are made to find investment products that are the least correlated to mitigate risk.
Taking advantage of volatility and the effects on calendar month option pricing, using the erosion of time to hit the target profit ranges.
Protecting sharp upward or downward market moves by using a blend of ratio backspreads, weighted to neutralize risk.
Acquire a lot of inventory with small size across the least correlated assets across different time frames. Consider probability of touching price and expiration targets.
Relying on market efficiency and selling premium only after volatile market moves (up or down), with little bias to direction.