Market Measures - January 11, 2021 - The Difference Between Active and Passive
On average since 2005, long stock outperformed short strangles in very low IV environments.
In higher IV environments, short strangles outperformed long stock, while the volatility of both strategies was comparable.
Finally, there was no IV environment where short strangles had a negative return, while long stock is almost certainly going to lose in higher IV environments.