Is trading Implied Vol, the real edge here? And anything directional has no edge?

I asked chatGPT to help me find winning trades. No luck.

 

Institutional systematic short volatility space now has an edge baked in due to their size. This used to not be the case, because of the nature of how they would manage their positions- tactically.

Your best bet may be to piggyback the sticky inventory that doesn't get shut down or rolled into expiry-

 

Could you roughly outline the process on how one might do this?

Thanks

 

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Generally short dated strategies (that don't roll - ie, the gamma is *sticky*, actually does compress range) tend to concentrate on strangles and puts within 7dte

recent examples:

Monday- short SPX strat sells 27-Nov 4490 4585 strangle ~1k times,

another fund sells 3500 of the 28-Nov 4380 Puts

short SPX strangle strategy executes two blocks every M / W / F

put seller executes DAILY

then at 2:30 CST, watch the 7dte volumes. Most of that is sold flow targeting near downside (~20d) and below

 

Thank you, this is new to me and would love to understand this deeper.