This proprietary system tries to take advantage from the persistent volatility premium that is intrinsic in the options’s price. Our proprietary indicator detects volatility spikes and sells overpriced options. The system tested all the possible trading strategies in options and discovered that the most profitable one on SPY ETF is the short straddle. Risk management includes take profits, stop loss and a volatility filters that indicate when the implied volatility term structure is inverted. The strategy was successfully backtested by our proprietary software developed in C over a huge database of historical options prices. Returns were almost always more than 25% cagr on margins.