Options Edge Lab
Quantify statistical edge across strikes and expiries. Surfaces mispriced vol,
skew anomalies, and gamma exposure clusters in real time.
Implied Vol (30d)
—
▲ loading
Vol Risk Premium
—
IV minus realised HV
Skew Index
—
25Δ put vs call vol
Key Edge Patterns
Structural setups — entry criteria and option mechanics, not backtested performance.
No win-rate, Sharpe, or P&L figures are shown until a forward-verified ledger exists for the pattern.
Vol Crush Play
Neutral
Short premium around catalysts where IV rank exceeds 70. Edge derived from
mean-reversion of implied vol post-event.
Structure
Short Vega
Catalyst
Post-event
IV Rank Min
70
Skew Reversal
Bullish
Exploit put skew extremes where 25Δ put vol exceeds call vol by >6 points.
Historically reverts within 5 trading days.
Signal
25Δ Skew
Revert Window
5d
Min Skew
6pt
Term Structure Arb
Neutral
Trade contango / backwardation in vol term structure. Buy near, sell far
when spot VIX > 3m VIX by >3 points.
Structure
Calendar
Trigger
VIX−3m >3pt
Bias
Contango
Income Strategies
Premium collection strategies optimised for consistent monthly yield:
covered calls, cash-secured puts, iron condors, strangles, and credit spreads.
Target Monthly Yield
2–4%
on notional capital
Avg Days to Expiry
21–45
optimal theta decay zone
Max Delta Exposure
0.30
per leg delta threshold
Income Strategy Playbook
Covered Call (CC)
Income
Sell OTM call against long stock. Ideal when IV rank > 50 and outlook
is neutral to mildly bullish. Roll when < 21 DTE.
Delta
0.20–0.30
DTE
30–45
PoP
70–80%
Iron Condor
Income
Sell OTM call and put spreads simultaneously. Profit from range-bound
price action and vol contraction. Best when IV rank > 50.
Max Credit
1/3 width
DTE
21–45
PoP
65–75%
Short Strangle
Neutral
Sell OTM call and put (undefined risk). Higher premium collection than condor.
Requires active management. IV rank > 60 preferred.
Delta/Side
0.16
DTE
30–45
PoP
68%
Payoff Builder
Visually construct multi-leg options structures and model payoff curves, breakevens,
greeks aggregates, and P&L scenarios at expiry and mark-to-market.
Max Profit
—
configure legs to model
Max Loss
—
configure legs to model
Breakeven Range
—
lower → upper
Common Structures
Bull Call Spread
Bullish
Buy lower strike call, sell higher strike call same expiry. Defined risk,
defined reward. Lower cost basis than long call.
Legs
2
Risk
Defined
Reward
Defined
Butterfly Spread
Neutral
Buy ITM + OTM calls, sell 2x ATM calls. Low cost, high reward if price
pins at short strike at expiry. Ideal pre-earnings fade.
Legs
3
Risk
Defined
Reward
High R:R
Ratio Spread
Bearish
Buy 1 lower strike put, sell 2 higher strike puts. Credit received upfront.
Profits from moderate downside; risk to the upside.
Legs
2
Risk
Partly Def.
Credit
Net credit
AI Recommendations
Machine-learning driven trade ideas ranked by edge score, probability of profit,
and current regime fit. Updated on each options close.
Active Signals
—
above threshold
Avg Edge Score
—
1–10 scale
Top Sector
—
highest scoring cluster
Recommendation Scoring Factors
IV Rank Signal
Vol
Measures current IV relative to its 52-week range. IV rank > 50 favours
premium selling; < 30 favours premium buying.
Weight
30%
Threshold
50+
Regime Fit
Macro
Aligns trade direction with prevailing macro regime (risk-on/off, trending,
mean-reverting). Regime determined by multi-factor model.
Weight
25%
States
4
Technical Confluence
Tech
Checks alignment of price structure, momentum signals, and key support/
resistance levels with trade thesis before scoring.
Weight
25%
Factors
12
Calendar Spread Optimiser
Model and optimise calendar (time) spreads across the vol term structure.
Identify ideal entry points where front-month vol is expensive relative to back-month.
Term Structure Slope
—
front vs back vol diff
Optimal Front DTE
—
days to expiry
Vega Ratio
—
back / front vega
Calendar Spread Variants
Neutral Calendar
Neutral
ATM calendar spread. Profits from theta decay of front-month faster than
back-month. Vega-long overall; benefits from vol expansion.
Theta
Net+
Vega
Net+
Delta
~0
Diagonal Spread
Bullish
Long back-month lower strike, short front-month higher strike. Combines
calendar and vertical spread characteristics. More directional.
Theta
Net+
Delta
+0.15–0.30
Setup
Credit/Debit
Double Calendar
Neutral
Calendars at both OTM call and OTM put strikes. Wider profit tent than
single calendar. Ideal for high-vol, range-bound underlyings.
Width
Wide tent
Cost
2x debit
Legs
4