Premium Printer: Using Helium to Sell Options

Helium’s premium printer finds decaying options premium to sell by selecting credit spreads that have high theta (time decay), low vega (sensitivity to volatility), and high expected value. Updated daily.

View Top Premium Printer Trades


How Does it Work?

Every day, Helium looks through the options universe to find calls, puts, and credit spreads 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 Expected Value (expected value): Helium tries to maximize the expected terminal value of each position, as determined by market prices & Black-Scholes implied probabilities.

  • Low Underlying Volatility: Since short options are short volatility, Helium is looking for stocks with small potential movements in the underlying.

  • 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 potential mean reversion.

  • 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 will link to the potential call/put options on Yahoo Finance, as well as show the estimated probability of profit, max loss, theta/vega ratio, potential percent return, expected value, and risk exposure graphs to delta (movement of the underlying), vega (changes in volatility), and theta (carry cost).

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

short_options_premium_delta_risk


Vega Risk

vega_risk_graph


Theta Risk

theta_carry_cost_risk_graph


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.