Arguably the biggest benefit of short options is the ability to make money on your positions without having to pick direction correctly. By having non-directional elements like positive theta and negative vega working for you, even when a stock moves against you, you can still turn a profit on your positions. As we look at where our Short Put in IWM has gone since we first put the trade on, we see this exact scenario playing out.

Did you catch our show on how to determine Delta/Theta levels for your portfolio?