By the Dependability Editorial Desk.
Strategy guides matched to market conditions — with entry logic, position management, and exit rules for each scenario. These guides are published by Dependability Holdings LLC, a private proprietary investment and quantitative-research holding company that deploys affiliated capital in publicly traded securities.
Options strategies fall into four families based on the market view they express: directional (bull call spread, bear put spread), non-directional premium collection (iron condor, calendar spread), income on existing positions (covered call, cash-secured put, the Wheel), and event-driven (long straddle, calendar spread pre-earnings). Each family below links to a full guide with the underlying mechanics, when-to-use rules, risk management, and exit frameworks.
Before choosing a strategy, know your view on the underlying (directional, range-bound, or volatility-driven), the time horizon (swing trade, monthly income, longer-dated), and the IV regime (low, normal, elevated, stressed). The guides below are organized by view; pick the one that matches your read of the market, then drill into the guide for the full framework.
How to use this page. Pick the guide that matches your market view. If you're new to options, start with the Trade Journal playbook — Greeks, expected value, and the statistical foundation that make the strategies legible.
A note on framework rules. DTE windows, profit targets, and exit rules in these guides reflect the desk's working playbook — desk judgment, not backtested results. Nothing here is investment advice.
Directional Strategies — When You Have a View on Direction
Bull Call Spread Master Guide
Buy a call at a lower strike, sell a call at a higher strike, same expiration. Net debit. Defined risk, capped upside, lower cost than a naked call. Best for moderate bullish views in elevated IV environments.
When to use: moderate bullish view, elevated IV (VIX 18+), want defined risk. When not to use: expecting a runaway move (use a naked call), uncertain direction (use an iron condor).
Read the full Bull Call Spread Master Guide →
Non-Directional Premium Collection — Range-Bound and Vol-Driven
Iron Condors: Range-Bound Premium Collection
Sell an out-of-the-money put spread and an out-of-the-money call spread to collect premium in markets you expect to stay range-bound. The defining non-directional strategy. Best for elevated IV environments with no major catalysts on the horizon.
When to use: range-bound view, IV rank above 50, no major events within the trade window. When not to use: trending markets (the breakout tests your short strikes), low IV (insufficient premium).
Read the full Iron Condors guide →
Calendar Spread Master Guide
Sell a near-term option, buy a longer-dated option at the same strike. Net debit. Profits from time decay and IV crush (post-earnings, post-FOMC). A clean way to capture an expected collapse in implied volatility.
When to use: IV rank above 60, expect IV to fall, want defined risk. When not to use: expecting a sharp directional move (use a long straddle or directional spread), low IV (insufficient premium to capture).
Read the full Calendar Spread Master Guide →
Income Strategies — Premium on Existing Positions or Cash
Income Strategies: Covered Calls, CSPs, and the Wheel
Generate income on stock you own (covered call) or on cash reserves waiting to buy at a target (cash-secured put). Combine both into the Wheel for continuous premium collection. Among the most commonly used single-leg options structures for traders who already own stock or hold cash.
When to use: long-term holder wanting to monetize volatility, cash reserves with a target buy-in price. When not to use: expecting sharp moves in the underlying (use directional strategies), low IV (insufficient premium).
Read the full Income Strategies guide →
Choosing the Right Strategy
A quick framework for matching strategy to view:
| Market view | Primary strategy | Secondary strategy | Avoid |
|---|---|---|---|
| Moderate bullish, elevated IV | Bull call spread | Covered call on existing stock | Naked long call (overpriced) |
| Range-bound, elevated IV | Iron condor | Calendar spread | Directional spreads (wrong view) |
| Pre-earnings, IV elevated | Calendar spread | Iron condor (if range-bound) | Long straddle (IV crush loss) |
| Long-term holder, want income | Covered call | Wheel strategy | Selling puts on stocks you wouldn't own |
| Cash reserves, target buy-in | Cash-secured put | Wheel strategy | Naked puts (large, undefined downside risk) |
| Sharp directional move expected | Long straddle/strangle | Naked long call/put | Iron condor (short gamma risk) |
| Defensive, want downside hedge | Protective put | Collar (long stock + long put + short call) | Selling premium into stress |
Frequently Asked Questions
Q: What is the best options strategy for a moderate uptrend?
A: A bull call spread is the standard starting point. Buy a call below the expected move, sell a higher strike to fund the long call. Target 30–45 DTE and take profit at 50% of the debit paid. The full framework is in the Bull Call Spread Master Guide.
Q: How do calendar spreads work around earnings?
A: Sell the near-term option expiring just after earnings, buy the same strike in a later expiration. Post-event IV crush on the near-term option drives profit; the longer-dated option retains value. Use ATM or slightly OTM strikes when front-month IV is in the 60th+ percentile.
Q: When should I use an iron condor strategy?
A: Use iron condors when the underlying is trading in a well-defined range with no clear directional catalyst. Sell an OTM put spread and an OTM call spread, target 30–45 DTE, and take profit at 50% of max profit. Don't hold through FOMC or CPI.
Q: What is the Wheel strategy and when should I use it?
A: The Wheel runs cash-secured puts until assigned, then covered calls until called away, then back to cash-secured puts. It generates income but locks you into a stock through multiple cycles. Only wheel stocks you'd be comfortable owning through a 30%+ drawdown.
Q: How much premium can I earn with covered calls?
A: A monthly covered call on a liquid large-cap typically collects a fraction of a percent to around 2% of the stock's value in premium — with capped upside and continued downside risk on the stock. There is no dependable annualized "covered-call yield": assignment, dividends, and the stock's own path dominate realized results.
Related Research
- Trade Journal — structure anatomy, trade log, and the playbook rules behind these guides
- Daily Briefs — the desk's current market reads that inform strategy selection
- Understanding the VIX — the IV regime gauge used across these guides
- Reading the Skew — put/call skew and strike selection
- Calendar Spread Entry by IV Rank
- Iron Condor Entry by IV Rank
For informational and educational purposes only. Not investment advice. Options trading involves substantial risk of loss. Every strategy here is defined-risk, but defined risk is not a defined outcome. Past performance does not guarantee future results.