Institution Option Trading Part-5

Popular Strategies Tested via Option Database
IV Crush Earnings Strategy

Buy/sell options before earnings when IV is high, expecting post-earnings IV drop.

High OI Breakouts

Trade breakouts from strikes with high OI using price+OI correlation.

Skew Arbitrage

Analyze IV skew and trade underpriced/overpriced strikes accordingly.

Time Decay Capture (Theta)

Sell options with high Theta before expiry using historical decay rates.

💡 Advantages of Option Database Trading
Quantitative Edge: Allows logic-based decisions over emotion-driven trades.

Backtesting Confidence: Know the probability of success before risking capital.

Scalability: Can analyze hundreds of symbols and expiry combinations.

Automation Ready: Can link with brokers to run fully algorithmic systems.