I am thinking of doing the wheel strategy on the SPX index since it can yield a meaningful monthly yield. Provided that I sell ATM puts for CSP and ATM calls for the CC, the only risk is implied volatility undershooting actual volatility. How do I reduce that risk? Trading with IBKR.
Thank you.
One thing I can think of is to use the VIX level as a guide. But that's hit or miss.
Thank you.
One thing I can think of is to use the VIX level as a guide. But that's hit or miss.