Picking the right strategy is more of the trade than picking the right ticker. Most retail losses come from putting the right view through the wrong structure — buying calls when you should have sold puts, or selling condors when you should have bought a straddle. This page is the decision matrix.
The three questions
Before you scan, answer three questions about the underlying in front of you:
- Direction.Up, down, or sideways? Or “I have no view, I just want to be paid for time decay”?
- Volatility. Is implied vol high, normal, or low relative to its own history? Use IV rank as your shortcut.
- Catalyst.Is there a known event in the next 30 days that could move the stock? (Earnings, FDA, fed, court, M&A.)
Three questions, ~16 useful answer combinations. Most of them map to a specific strategy.
The matrix
Bullish + low IV + no catalyst
You want to be long, vol is cheap, no event to time around. Use: Bull call spread. Cheap entry on low vol, defined risk, defined upside cap. Alternatively buy stock and sell covered calls against it once you’re in.
Bullish + high IV + no catalyst
You want to be long, but vol is expensive — you don’t want to pay retail. Use: Bull put spread or cash-secured put. Sell premium instead of buying it. The high IV pays you to be patient.
Bullish + any IV + upcoming catalyst
Direction with timing. Use: bull call spread with the short strike at your post-catalyst target. Or, if the catalyst is more about magnitude than direction, a long straddle.
Bearish + low IV + no catalyst
You want short exposure on cheap vol. Use: Bear put spread. Same logic as bullish low-IV, mirrored.
Bearish + high IV + no catalyst
You think it falls but vol is rich. Use: Bear call spread. Get paid to be right.
Neutral + low IV + no catalyst
Range-bound with cheap vol. This is the worst combo for short premium — there’s nothing to collect. Use: nothing, or wait for IV to expand. Don’t force a trade just because you opened the scanner.
Neutral + high IV + no catalyst
The income trader’s sweet spot. Use: Iron condor (defined risk) or short strangle (undefined risk, more credit). Both express the same thesis; condor is the safer default.
Neutral + any IV + upcoming catalyst, betting on calm
You think the market is overpricing the move. Use: iron condor sized small, or simply skip the trade. Catalysts are where short-vol traders get hurt — Tradient’s earnings IC scan exists for this thesis but treat it as small-size lottery.
Neutral + low IV + upcoming catalyst, betting on a move
You think the market is underpricing the move. Use: long straddle. Cheap vol + known catalyst is the canonical long-vol setup.
Long stock you want to keep + any IV
Use:covered calls (income overlay) or a bear put spread / collar (defined-risk hedge). Don’t sell the stock; structure around the position.
Long stock you’d sell at a higher price
Use:covered call at the price you’d be happy to exit. The premium is bonus income on top of the sale.
What if I have no view?
Skip the trade. The whole product is built around the assumption that you actually have an opinion to monetize. If you don’t, the highest-EV move is to wait. Tradient will not penalize you for taking a day off — the scans are still there tomorrow.
How Tradient’s Goal Gallery maps to this matrix
- Generate income → cash-secured put (neutral/bullish + high IV)
- Bet on a big move → long straddle (any direction + low IV + catalyst)
- Bet on calm → iron condor (neutral + high IV)
- Hedge what I own → bear put spread (long stock + want defined downside)
- Trade earnings → iron condor (catalyst + high IV)
- I have a thesis → bull call spread or bear put spread (directional + defined risk)
Where to go next
- Goal wizard — pick by intent if you are still choosing a structure.
- Scan library — run a pre-tuned template for a live strategy.
- IV rank and regime — how Tradient labels the IV environment for you.
- Tradient Score — how we rank the candidates within a strategy.