Seems close delta around 10 deltas 3 weeks out with good theta can be good positions to build free bear put spread with credit after legging in and with spreads, the edge is huge. Especially if the 1 strike width price difference in actual price is within 1 day theta bleed.
Market maker main mo for options trading, vol trading, can choose to turn delta, gamma and theta on or off but their spreads for otm and atm reflects more vol, so their spread edge is quoted in terms of vols too.
Strategy like this require direct market access to function similar to mm to avoid paying spreads and turn spreads into your profit.
Delta neutralization allows for path neutral to price returns of vols, so if ivols at 20% now, forecasted at 18% and I sell at 20%, and I delta neutralize it till actual vols reach 18% or on expiration, net profit is 2% vols from expensive ivols.
Hence, delta neutral not equals no risk. That's the catch to options management by the greeks. To turn position sensitivity on or off.
areas in need of improvement for the strategy,
1) tail risk handling on initial position.
2) keep running into a wall for capital deployment, mainly sitting on a lot of locks for sometimes 1 to 2 weeks if the position became a lock too fast because position performed well.
for area 1) there is the possibility to initiate the first position as a for a debit, which is like paying a small fee for a tail risk hedge then proceed to keep making price to earn the edge back.
Initiating trade is a broken wing fly, done for $2.40 credit, or 0.0040 eth, if I can get the 650/640 bear put spread or 640/630 bear put spread for debit of 0.0020 eth, I would have secured a position of 0.0020 less commissions while profit location for max $10+ credit = from the 640 to 580.
So if I can do this on the call side, I can get the same effect as a 2 sided otm condor spread which pays a credit.
Effectively, I have removed the tail risk while attempting to give my self probability to profit from wider strike ranges.