Feels to me the stock market is at one of those inflection points. Personally, I'm finding it difficult to find trades that I'm willing to bet too aggressively long here. But on the flip side, I'm not willing to get aggressively short here either. In situations like this, the best move is often to patiently wait for the market to tip her hand. Problem is, we all know waiting is the hardest part (cue Tom Petty).
Of course, there are strategies options traders can employ profitably when the expected move is a sideways chop fest. And the best way to line the odds of profitability more in our favor is to find situations where a sideways grind has already begun to take shape and it is coupled with higher than average volatility being priced into the options. When selling premium, this gives us some nice cushion to absorb some moves.
I've found just such a situation for us to take advantage of.
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