Nice write up, Adam! Refreshing to see a strategy that isn't AI slop. Selling overpriced options into that equity drift is a classic move, but those ETF filters and the VIX 40 cap add a really solid layer of protection. Great stuff.
That’s the trade-off many people ignore with high win-rate strategies. Frequent small wins feel like skill right up until the payoff structure reminds you what you were actually underwriting. Win rate and risk quality are not the same thing.
Really interesting post — I’ve been experimenting with LEAPS put spreads recently and stumbled (almost accidentally) on something that widened my view about them.
If you move far enough away from the classic 30/10 delta structure — e.g. a very wide spread where the short put is already deep ITM (Δ ~0.6–0.7) and the long put is far OTM (Δ ~0) — it starts behaving like a completely different animal.
In that region, most of the exposure comes from the short leg, and the position becomes locally linear, almost like controlled directional exposure with a built-in floor. The long leg only really “exists” in tail scenarios.
So same instrument, but very different behavior depending on where spot sits relative to the strikes.
That distinction wasn’t obvious to me from theory — I only really understood it after watching the position evolve over time. I use this kind of spread as a financing overlay to a core structure if market environment allows it.
Nice write up, Adam! Refreshing to see a strategy that isn't AI slop. Selling overpriced options into that equity drift is a classic move, but those ETF filters and the VIX 40 cap add a really solid layer of protection. Great stuff.
That’s the trade-off many people ignore with high win-rate strategies. Frequent small wins feel like skill right up until the payoff structure reminds you what you were actually underwriting. Win rate and risk quality are not the same thing.
Really interesting post — I’ve been experimenting with LEAPS put spreads recently and stumbled (almost accidentally) on something that widened my view about them.
If you move far enough away from the classic 30/10 delta structure — e.g. a very wide spread where the short put is already deep ITM (Δ ~0.6–0.7) and the long put is far OTM (Δ ~0) — it starts behaving like a completely different animal.
In that region, most of the exposure comes from the short leg, and the position becomes locally linear, almost like controlled directional exposure with a built-in floor. The long leg only really “exists” in tail scenarios.
So same instrument, but very different behavior depending on where spot sits relative to the strikes.
That distinction wasn’t obvious to me from theory — I only really understood it after watching the position evolve over time. I use this kind of spread as a financing overlay to a core structure if market environment allows it.