Given the shaky conditions in the market today I thought I would go for a relatively safe option and trade #IWM, which covers the Russell 2000 companies.
The fluctuations of these sorts of ETFs is nowhere near the level of individual stocks so the probability of experiencing outlier moves is significantly lower. However, it can still happen and we have to make sure that we don't over commit. If we look at, for example, the Covid shut down, the drop within 4 weeks was about 50%, which can wipe out inexperienced options traders.
I selected the May $175 / 115 strangle. Both legs are outside of the 1SD move so the POP (Probability of Profit) is over 76%. If this trade works out and we leave it till expiry (which almost never happens) then it would give us 91% annualised profit, which is much lower than most of my trades but, given the nature of this ETF, I am fine with the lower risk lower profit.