I previously mentioned some time ago that I had a "sweet spot" price in FXE (the EUR/USD proxy), at which I would consider short call verticals (credit spreads). We're there (at 112.50 or so). Unfortunately, current IVR for FXE is 25, a bit below where I'd want it to be for selling premium.
Naturally, I could consider a debit spread here, but I am not...
Frankly, I don't use debit spreads very often, since they require a certain degree of directional certainty which I ordinarily do not have. Additionally, they are not high probability plays in the vast majority of cases.
However, I have a certain degree of certainty that volatility will increase from here and, ironically, the volatility in volatility is quite...