From basics to advanced multi-strategy portfolio construction.
What are options? Options are contracts that give the buyer the right (not obligation) to buy or sell a stock at a specific price before a specific date. The seller collects a premium upfront in exchange for taking on the obligation.
Calls vs Puts. A call gives the right to buy; a put gives the right to sell. When you sell a put, you're betting the stock stays above the strike price. When you sell a call, you're betting it stays below.
Premium. The price of the option contract. As a seller, you collect premium immediately. The option loses value over time (theta decay), which benefits sellers. As a buyer, you pay premium for the right to profit from a large move.
Key terms. Strike = the target price. DTE = days to expiration. Delta = probability the option expires in the money (0.20 delta ≈ 20% chance). IV Rank = how expensive options are relative to the past year.
Premium selling profits from time decay and mean reversion. We sell options when IV is high and collect premium that decays in our favor every day.
Sell an OTM put, keep cash as collateral. Profit if stock stays above strike. Simple, high win rate. Best for stocks you'd be willing to own.
Sell a put and buy a lower put as protection. Defined risk — max loss is the spread width. Less capital required than CSP. Ideal for higher-priced stocks.
Sell both a put spread and a call spread. Profits when the stock stays within a range. Works best in neutral, range-bound markets with elevated volatility.
Sell an OTM put and OTM call simultaneously. Higher premium but undefined risk. Used only in high-IV environments with strong mean reversion signals.
Buying options pays a premium for the right to profit from large moves. Lower win rate but large payoffs when correct.
Buy a put when you expect a stock to decline. Pay premium upfront, profit if the stock drops below your strike. Used as both a directional bet and portfolio hedge.
Buy an OTM call and put before earnings. Profits from the large move regardless of direction. Requires the move to exceed the premium paid.
Buy a deep ITM LEAP call, sell short-term OTM calls against it. Mimics covered call strategy at a fraction of the capital. Profits from time decay on the short leg.
Buy a call when you expect a stock to rise. Simple directional bet with defined risk (premium paid). Best when IV is low and you expect a catalyst.
SPY / QQQ / IWM Iron Condors. We sell iron condors on broad market ETFs when VIX is between 15-28 and the market is range-bound. Short strikes at ~0.16 delta give roughly 84% probability of profit on each side.
Bear Call Spreads. When the market is moderately overbought (SPY RSI > 55), we sell call spreads for directional premium capture with defined risk.
Capital efficiency. ETF options qualify for Section 1256 tax treatment (60/40 blended rate), making them tax-efficient compared to individual equity options.
Our portfolio operates three independent books, each with its own capital allocation, strategy set, and risk parameters.
60%
CSP • SPS • IC • Strangle across 6 sectors. Regime-aware. Compounds returns.
15%
Iron Condors + Bear Call Spreads on SPY, QQQ, IWM. VIX-gated.
15%
Long Put hedges + PMCC. Fixed sizing, no compounding. Directional edge.
Remaining 10% held as cash reserve.
Our roadmap expands the NeoLogic matrix across new asset classes and markets.
Equity Options Selling — Live
CSP, SPS, IC, Strangle across SP500 sectors. NeoLogic matrix validated on 5 years of data.
ETF Iron Condors — Live
SPY, QQQ, IWM with VIX-gated entry and regime-aware deployment.
Long Put Buying — Live
Data-driven buying layer. Fixed position sizing, EV-filtered combos.
PMCC + Pre-Earnings — Next
Poor Man's Covered Calls and earnings straddle strategies. Grid search in progress.
Fixed Income Options
Treasury and bond ETF options. Rate regime classification.
Commodities • Crypto • Global Markets
Extending the NeoLogic matrix to new asset classes as data and liquidity support it.