Covered Strangle (Across Multiple Indices)

Here are the two major US equity index ETF's the SPY (S&P 500) or the IWM (Russel 2000). Now I have been considering the actualy value of say historical volatility, and I have come to a conclusion that I would rather use ATR than historical volatility which is a topic I should get into with a different post. However, my bullish for the next 5 days or so is slightly bullish to neutral. I am much more bullish IWM than I am bullish SPY (Completley Neutral), but I am witnessing the SPY seems to be a more suitable premuim sell in this case since the Implied Volatility is above the ATR (what I am using for historical volatility, but to reduce capital anything I sell will have wings on it.

 On the case of buying IWM stock, considering the 3 days down and 2 closes above the low of the day we have an extremley bullish upside historical criteria.

Below is a performance chart of the pattern described above. Bought on the first day the signal was intiated and sold 5 trading days later (1 week). The historical stock trade that included leverage in IWM had a 69% win rate.

A trade that I like is a covered strangle trade across indices for  a short duration of time possibly 2 weeks on the strangle (I will Iron Conderize it by buying some wings as protetion) so I can get a decent premuim at the 1 std dev move, and then I will either buy IWM stock or do a synthetic stock trade using options (Short ATM put, Long ATM Call) to reduce capital once again.

Besides this trade I have very few positions all based of statistical criteria in stocks I follow closely. There a few short premuim trades available at the moment, so I am playing directional and long premuim directional. Long stock seems suitable in TSLA, AMZN, and LNKD.


Thanks,
Alex