Hi Steemians,

today we saw a nice sell off in the markets and therefore a spike in the VIX.
The **E-Mini S&P 500 Futures** (/ES) are down **75 handles** and the **VIX** is up **5.48 points**.
<center>https://ipfs.busy.org/ipfs/QmVTQx6FYs2saivBF8um3aKAPVnmeZ4WBKuvAjfAofTwfT</center><center>E-Mini S&P 500 Futures (**source:**tastyworks)</center>
![VIX.jpeg](https://ipfs.busy.org/ipfs/Qmevdgbfj9UiKyH3JDdYEP4SeeojQRhvTCqaEm29vwhgYi)
<center>CBOE Market Volatility Index (**source:**tastyworks)</center>
Based on yesterday's closing prices, this was a **3 standard deviation move**.
That's a big move, which had a probability of only 0.3 percent. Or a 99.3% chance of **not** happening.
A spike in implied volatility makes option prices expensive.
A premium sellers dream.
There are lots of opportunities out there.

So let's have a look at three different strategies, which you could implement tomorrow.

***Legal disclaimer:** These are not trade recommendations. Options involve risk and are not suitable for all investors. The trades shown below are for educational purpose only.*

**1. 30 Delta Short Strangle in IWM** (delta neutral)
* sell to open May 147 put
* sell  to open May 159 call
* net credit $4.28
* profit target $2.14 (50% of max profit)
* buying power reduction = $2,451
* max loss = unlimited
![IWM.jpeg](https://ipfs.busy.org/ipfs/QmVDHdFmnicRGKQgWAq45KZJ9yxRg4We2wVWQBpSCpyRjf)
<center> (**source:**tastyworks)</center>
**How to manage this trade:**
* close if you reach 50% of max profit ($2.14), or 2x credit loss (close at $12.84)
* if one of your strikes gets hit, roll the untested side down/up into a straddle
* if there are only 21 DTE left, close or roll into next month to avoid gamma risk.
<p>
<p>


**2. Short 30 Delta Put in KRE** (long delta play)
* sell to open May 58 put for $1.06
* profit target 53 cents (50% of max profit)
* buying power reduction = $914.65
* max loss = $5,694
<center>https://ipfs.busy.org/ipfs/QmNju6aLdCRd7i9puijRfT74s2UoX9cZwubWzCASMyrLiX</center><center> (**source:**tastyworks)</center>
**How to manage this trade:**
* close if you reach 50% of max profit (53 cents), or 2x credit loss (close at $3.18)
* if there are only 21 DTE left, close or roll into next month to avoid gamma risk.<p>


**3. Broken Wing Call Butterfly in QQQ** (short delta play)
* buy to open 1 May 162 Call
* sell to open 2 May 165 Calls
* buy to open 1 May 185 Call
* net credit $2.75
* buying power reduction/max risk = $1,425
* max profit = $5.75
* profit target: 50% of max profit = $2.87
<center>https://ipfs.busy.org/ipfs/Qme9te5wG1fjjxkSHPB987GV3h7na9hpk9LwDQbtn6ccWs</center><center> (**source:**tastyworks)</center>
**How to manage this trade:**
* close if you reach 50% of max profit (2.87 cents) or butterfly it off, by buying the 168 call (if you can buy the 168 call for less than $2.75, you have a free long butterfly on)
* if there are only 21 DTE left, close or butterfly it off, if you can, to avoid gamma risk.
<p>

If you liked this post, please upvote and resteem.

Good luck tomorrow,
Stephan Haller