Using the Expected Move to Select Your Strikes

<p>As OTM premium sellers, there is <a href="https://ontt.tv/VvgKG">always a tradeoff</a> between probability of profit and credit collected, and the expected move can help balance these two opposing forces. With the expected move tracking very closely to the one standard deviation on the Normal Distribution, our probabilities are usually in the 60-70% range, when our strikes are placed on the edges of the expected move—at least for undefined-risk strategies.</p>