This strategy involves selling a $10-wide credit spread on the SPX that is far out-of-the-money. When entering trades, we leverage various tools such as Average True Range, Moving Averages, Technical Levels, Channels, and Stochastics to our advantage. These technical and fundamental factors allow us to accurately predict the next 2 trading days, resulting in a high win percentage of over 90%.

When entering the trade, we expect to receive around $0.50 net credit from selling far out-of-the-money options. To enhance our chances of success, we will be selling 2 days to expiration options, which will help us effectively manage risk and take advantage of time decay, benefiting from a very steep theta curve.

Even though this is a high-probability strategy, we will use proprietary trading mechanics to roll our positions early up or down, or out in expiration based on the movement of the SPX. This will help us manage risk and turn losing trades into breakeven trades or even winners.