The 1-1-1 options strategy has been popular among many retail options traders who want both high probability and strong management flexibility. In this interview, Zoheb Noormohamed breaks down exactly how he trades it, how he manages risk, and how he has achieved around 60% annual returns on the buying power he allocates to this strategy.

Learn about the 1-1-1 options strategy in this video

Zoheb Noormohamed

Zoheb Noormohamed is a London-based retail options trader who focuses almost entirely on undefined-risk strategies, with the 1-1-1 strategy as his primary trade. He has long experience in forex trading, but pivoted to stock and options trading two years ago.

Understanding the 1-1-1 options strategy

The 1-1-1 options strategy is built from an out-of-the-money debit spread that is financed by selling a further out-of-the-money short put or call. This three-leg structure allows traders to collect an initial credit while benefiting from both upward price movement and downside hedging through the debit spread (or the opposite direction if doing the trade on the call side). If the underlying finishes inside the “trap” area of the debit spread, the profit can even exceed the initial credit.

Zoheb notes that the strategy works in bullish, bearish, or neutral markets but performs best when the trader has a directional bias.

Why Zoheb trades undefined risk

A flexible approach to trade management

For Zoheb, the appeal of undefined risk lies in the flexibility it provides when a trade moves against him. Instead of accepting losses quickly, he can roll positions, widen break-evens, and extend duration. In his experience, this flexibility enables a smoother path to recovery and often turns losing trades into profitable ones.

He consistently looks for setups with:

• High liquidity
• High IV rank (above 30)
• Wide strike distance (often 20%+ away)
• Monthly expiration cycles
• High probability of profit (85%+)

How he builds a 1-1-1 trade

Using Option Samurai to choose the underlying

After trying many different options scanners, Zoheb concluded that Option Samurai worked best for him. With Option Samuri, Zoheb filters for underlyings with strong option volume, suitable volatility, and enough premium to target at least $2 per contract. He treats RSI as a bonus signal—preferring underlyings that are oversold or overbought.

Using Option Samurai saves him hours of work every day, says Zohem.

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Selecting the strikes

His typical configuration includes:

• A long put near 30 delta
• A short put for the debit spread five to ten dollars lower, depending on the price of the underlying
• A financing short put around 20 delta, adjusted to achieve the desired credit

Picking the expiration

He trades monthly options with 45–60 days to expiration. Weekly options are avoided because of lower liquidity and wider bid/ask spreads.

• Watch other interviews with retail options traders:
• Andrea Vaturi: Options on forex and crypto
• Carl Allen: Rolling put credit spreads
• Ravish Ahuja: Two low-risk options strategies
• Murray Lindhoet: 1-1-2 options trading strategy

Management rules: the core of the strategy

Taking profit at 50%

Zoheb closes the trade when 50% of the initial credit is reached. This often happens early, before risk can increase as expiration approaches.

Rolling at 21 DTE

This is his most important rule. At 21 days to expiration, he always takes action, either closing or rolling the position. This avoids the sharp increase in gamma that makes adjustments more difficult.

If the trade is in profit at 21 DTE, he will usually close the position. Sometimes he may roll it if the indicators show that this is a trade he normally would have opened.

If the trade is losing at 21DTE, he will roll or manage the position. In the video interview, we review four alternative ways to manage a losing position (see below)

Some of his strongest results come from trades that initially go underwater. By rolling for credit across multiple cycles, he often accumulates enough net premium to turn the campaign into a profitable exit—even if the initial trade was significantly challenged.

Depending on the market and the trade, he may:

1. Close and rebuild the entire structure further out
2. Close the debit spread and roll only the naked put
3. Sell the long put and roll both short legs
4. Push the structure far out to widen the break-even dramatically

He demonstrated these choices using a real Adobe trade, which had moved against him but was still manageable thanks to his systematic approach.

Example 1-1-1 trade in Adobe

Here is the example trade used in the video. Zoheb opened the position 3-4 weeks earlier, and it is now at 21 DTE and it is time to manage it.

Management alternative 1: Roll the full position

Management alternative 2: Close the debit spread and roled the naked put

Management alternative 3: Close the long leg and roll both the short puts

Management alternative 4: Roll the full position as far out as possible

This was a real trade. So what did Zoheb choose to do and why? Learn the answer in the video!

Handling big market drops with the 1-1-1 options strategy

Trade small to stay safe

With a six-figure account, Zoheb still trades one contract per position. This gives him the buying-power cushion needed to roll during turbulent markets. He shared an example from earlier in the year where several trades went underwater simultaneously due to market-wide selling pressure, but all were eventually rolled back to profit.

Rolling as risk control

Undefined risk becomes dangerous primarily when traders:

• Trade too large
• Hold positions too close to expiration
• Fail to adjust early

Zoheb tries to avoid these pitfalls by following his mechanics with discipline.

Risk profile of the strategy

On a scale from 1 (very low risk) to 10 (very high risk), Zoheb rates the 1-1-1 strategy at:

• 5–6 for beginners, due to undefined risk
• 2–3 for experienced traders who follow strict rules

His view is simple: the strategy is safe when the rules are respected, and risky when they are not.

Where to learn more about the 1-1-1 options strategy

Zoheb recommends Tastylive as a good source to learn more. You can also learn more about the strategy on Zoheb’s YouTube channel One Glance Trader.

• Check out Option Samurai, the options screener Zoheb uses to find his trades