Market Measures - March 1, 2021 - Expected Performance Based on IV
Selling strangles has been profitable on average in all IV environments. However, lower IV periods tend to be much less profitable as a % of credit because short premium trades tend to see most of their outlier losses here.
Premium sellers can, on average, collect 2-3x more as a % of their credit if they conduct most of their trades (and most of their capital) in higher IV environments.