Selling calls to collect premiums during a bear market is a good way to generate a steady cash flow. Although implied volatility (IV) is relatively low in a bear market, the probability of deep out-of-the-money options being exercised is also very low, so the drawdown from selling calls to collect premiums will be minimal. Today, I pulled data from my backtesting system covering the two bull and bear markets since 2019. We can see that: 1) In the late stages of bear markets prior to 2021, selling out-of-the-money call options with a 0.1 Delta for the current week generally resulted in a break-even outcome. 2) During the 2021 bull market, drawdowns occurred during periods of rapid price surges, but thanks to the high IV typical of bull markets, profits were recouped quickly. 3) During the 2022 bear market, this strategy demonstrated exceptionally strong profitability with very low drawdowns. 4) During the slow bull market from 2023 to 2025, this strategy faced its greatest test. Since the bull market rallies during this period were often concentrated within very short time frames, the strategy encountered multiple significant drawdowns. However, thanks to the profits accumulated in 2022, it ultimately maintained a positive return. 5) As the market turned from a bull to a bear market in 2025, this strategy began to replicate the explosive performance seen in 2022. Looking back at these two bull markets, although there were many differences in market conditions, the overall cyclical nature is evident when observed through the lens of advanced tools like options. As long as this strategy continues to generate profits, the bear market has not yet ended; now is the perfect time to engage in this “sell calls” strategy.(Greeks.live)