Premium Printer: Generate Income by Selling Options Premium

Generate income by selling insurance on the market at attractive prices. Optimized daily.


How Does it Work?

Every day, Helium looks through the options universe to find positions that best satisfy a balanced combination of:

  • High Theta (theta): This represents the daily time decay of options, or the daily “carry” received for selling options.

  • Small Vega (vega): Helium tries to minimize the sensitivity of sold options to changes in implied volatility in order to reduce risk to increases in uncertainty & underlying movement.

  • High Market Expected Value (expected value): Helium tries to maximize the expected terminal value of each position, as determined by market prices & Black-Scholes implied probabilities.

  • High Helium Expected Value (expected value): Using machine learning on historical options prices, Helium tries to maximize the expected value of each trade.

  • Helium Uncertainty < Market Uncertainty: By comparing market uncertainty to Helium uncertainty, we can seek out underlyings with potentially over-priced risk.

  • Big Credit Received: Looking for options premium to generate profits means trying to maximize the options premium received.

  • High Probability of Profit: Helium is looking to sell options that have a high probability of expiring worthless (so we can keep the whole credit received when we sold it).

  • Defined Risk: All Helium trades have a maximum defined risk going into each trade by finding a cost-efficient hedge and trying to minimize the max potential loss.

  • AI Price Forecasts: Using meta machine learning price forecasts, Helium weights short put options higher on bullish stocks (long delta) and weighs short call options higher on bearish stocks (short delta).

  • High Implied Volatility Rank: (IVR) Helium is looking for assets with higher IV relative to yearly highs and lows in order to take advantage of IV compression of relatively more expensive options.

  • One Click Trade Execution: Automatic limit order algorithm to get filled at attractive prices

Trading Helium’s Premium Printer

To find the daily-updated trades, click the red “Premium Printer” buttons on Short Call Forecasts, Short Put Forecasts, or Short Volatility Forecasts. For some stocks, Helium also has backtested options trading strategies.

For each potential trade, Helium shows the estimated probability of profit, max loss, theta/vega ratio, potential percent return, expected value, kelly betting percent, and risk exposure graphs to delta (movement of the underlying), vega (changes in volatility), and theta (carry cost). Easily enter trades with one-click order execution.

These trades have not been backtested, but are updated daily on potentially attractive market prices, predominantly the theta/vega ratio (eg trying to maximize the ratio of time decay to sensitivity to volatility) and expected value.

Example Trade & Risk Profile

Trade Metrics

Delta Risk

Vega Risk

Theta Risk

See Also: Cheap Convexity: Using Helium to Buy Options

*Disclaimer: Nothing on Helium Trades or our blog constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Helium Trades is not responsible in any way for the accuracy of any model predictions, price data, or trading.Any mention of a particular security and related prediction data is not a recommendation to buy or sell that security. Investments in securities involve the risk of loss. Past performance is no guarantee of future results. Helium Trades is not responsible for any of your investment decisions. You should consult a financial expert before engaging in any transaction.