To fully learn and understand what the method is, I suggest that you go to the source - Tom Sossnoff.  He can be found in his new home at Tastytrade right next to his newest baby, Tastyworks.  

Tastytrade is the educational arm that will teach you everything you need to know - for free!

Tastyworks is the Brokerage arm that will provide the absolute best value for your trading dollar - and gives you the tools you really need to succeed. 

So what is this magic?  It all comes down to common sense.  Here are a few truths:

1. Nobody can see into the future - this means every decision - every trade - is a 50/50 proposition.

a. all attemps to find a technical "edge" prove to be no better than 50/50 when adequetly backtested

b. all attempts to use fundementals to find an "edge" prove equally fruitless 

2. There are costs to trading - these are commissions and slippage.  So a 50/50 bet with fees involved - win or lose - means winning less than 50 % of the time! 

3. In order to "win" we need to change the odds - we need to move the odds in our favor. 

a.  selling options has a built in premium edge over buying options because of the "shift of risk"  

b.  implied volatility tends to overstate the risk

c.  placing trades some percentage of a Standard Deviation (SD) of expected move (based on implied volatility) can lead to high Probability of Profit (PoP)

d.  selling something against what we own (or are short) will reduce the cost basis - and increase our odds of making a profit 

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