When to use
If market is near A and you expect market is stagnating.  Because you are short options, you reap profits as they decay - as long as market remains near A.

Profit Characteristics
Profit maximized if market, at expiration, is at A.  In call-put scenario (most common), maximum profit is credit from establishing position; break-even is A plus or minus that amount.

Loss Characteristics
Loss potential open-ended in either direction.  Position, therefore, must be closely monitored and readjusted to neutrality if market begins to drift away from A.

Decay Characteristics
Because you are only short options, you pick up time-value decay at an increasing rate as expiration nears, maximized if market is near A.

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