How do you weigh IV when picking which option to sell?
I am currently running a vol arb strategy where I look for IV to spike in the underlying stock (usually looking for at least 15% above HV), then I will sell that option and look to close once it hits 50% or sometimes 30-40% if IV collapses in the first 72 hours of a 21-45 DTE option.
Anyone else using a volatility arbitrage strategy? What are the main things you are looking in a vol arb strategy?
Ive also vibe coded my own dashboard that is grabbing live and historical data from Schwab and IBKR APIs. Do you think I am missing any key indicators? Working on adding in VWAP and have just started breaking up RV into short, midterm, and longterm using yang-zhang vol term structure so it can be more accurate depending on the DTE I am selling.
https://preview.redd.it/x75zw47hhasg1.png?width=1809&format=png&auto=webp&s=11063b47b611c84cbb45ab5a9f9de612146e1d7a