The strategy trades according to the Tastytrade philosophy: We benefit from the return of the implied volatilities to their means and from time decay. The underlying are either resilient when the markets fall, or highly volatile (meaning high premiums and safety cushions), or with a mathematical construction which allows a predictability in the price behavior.

Margin Use: Many strategies are using position sizes which are consuming all the allowable margin. When it works in the beginning, they manage to get a very high performance. As soon as the market goes against them, a margin call follows and the account gets obliterated. We invest a maximum 60% of the available margin to absorb price actions going against us and to withhold high volatility in the market.

Adjustments when the markets go against us: Our positions are easy to adjust. Should the strikes of the options be breached, I either roll the position or accept the assignment of the options. This is then followed by covered calls.

Management of winners: We usually close a position at 50%-75% of the maximum gain. Tastytrade studies show that managing winners early improves the performance.

Scaling: The strategy can be traded with accounts from 15k-20k upwards or less if you do not trade all the positions.

Easy to trade: You can trade easily my strategy via emails. Usually the limit prices are reachable several hours (sometimes several days) after the trade alerts are sent. Europeans can also trade options on US ETFs without any problem.

Stop-Losses: Several Tastytrade studies show that placing a kind of stop-loss of 100% or 200% loss of premium is not helpful in the long-term. Such temporary losses can occur and very often the position ends nevertheless with a win. Having cut the loss upfront would have been detrimental. I prefer to protect the portfolio through investing only 60% of the available margin in total.