Watched some of the option omega content on YouTube this morning and thought it was pretty interesting. Are you constantly adjusting strategies based on market conditions or do you have a few strategies that run full time (when trade conditions are met)?
Do they also have a library of strategies to pick from? I’ve never really gotten into premium selling or any of the advanced strategies so wouldn’t even know where to start as far as what to look at for backtesting.
They have a discord where people share a lot of backtests. It's extremely active. You get an invite when you sign up for the service, even the trail. You can pretty easily find a 50% code for Option Omega. Most people that review that service on YouTube will have one in the description or something.
Regarding option selling, I would start with just a general Youtube deep dive on credit spreads, iron condors, and iron butterflies. That will give you enough to start to wrap your head around it.
The general idea is that the Theta value of an option is the part of the premium that is tied to the options extrinsic value. At expiration if that option is out of the money, that extrinsic value goes to zero.
So the trade is to sell the option for the premium with the expectation that the option remains out of the money and you either buy it back for less later or hold it to expiration and keep 100% of the premium.
I also trade calendars on SPX as well. A calendar is a trade where you sell the option at some pointing the future and then buy a longer dated option. The general I deal here is that you expect volatility to increase such that the longer dated option increases in value more than the shorter dated option and the entire spread increases in value.
The vast majority of my trades are mechanical and placed at a certain time and day of the week and looking for either a delta or premium target. I sell premium every single day virtually no matter what. Automation via Tradesteward allows me to make sure that happens even if I am away from my desk or cell coverage.
I do make small adjustments based on current market volatility, VIX, and if premium is there in the afternoon. For example, right now, with VIX in the toilet, I had to pretty much abandon an iron condor I place after 3pm eastern and move that trade to the morning to ensure I sell the total amount of premium I want to each day.