Another question from BRIANMCFM
........in a low volatility world right now In the indices, my goto strategy would be to put on a calendar spread, maybe a week to go on my short option, two to three weeks on my long, and lean it a little long delta, so as to have it pretty neutral, considering the vega delta relationship, and that a calendar is long vega. And basically, I would ride the theta as long as I felt comfortable with the position. On /ES I might have a 20-30 point window, where I could make anywhere from $25/day to $100/day in theta, depending on the pricing and how far away from expiry I was. Obviously, the closer to expiry, the gamma could get pretty high, and that's what I would keep my eye on as I trade them. If we were in a higher volatility environment, I would put on a butterfly instead of a calendar, since they are short vega, but with the same type of position, only short vega,short delta to keep it neutral...
Is there any parallel with the US 500 spreads and/or binaries that I could replicate this type of position?
Or any of the indices for that matter?
Are binary iron condors the closest thing to that type of trading?