A common viewer question, answered with 13 years of data: is a selloff actually a better time to sell premium? The team ran a 16 delta strangle, opened at 45 DTE and managed at 21 days, roughly 3,500 trades, and grouped the results by how far the market was down on entry, all days, down 1%, down 2%, down 3%. The question underneath is whether the edge survives when you sell into weakness.
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Chapters
00:00 The question, is a selloff better
00:52 Things you can and can't control
01:43 The gambler's fallacy trap
02:46 Does profit grow as drops deepen
03:30 The largest-loss caveat
04:55 How often do you win
05:45 The win rate stays flat
06:05 Why does it pay more
07:26 Rapid IV expansion
08:30 Mean reversion after 21 days
09:30 The takeaways
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