By allocating more capital in our portfolio to strangles when VIX was higher, we are able to match the risk levels of buying and holding SPY without adding much tail risk. The tradeoff of the higher risk has been an additional 4% return, historically (from 15% to 19% annually).
When comparing the two strategies (buy and hold vs strangles) on an equal risk basis, the strangles outperformed by an average of 9% per year. The reason why strangles outperform? A mechanical edge as well as higher tail risk than holding stock.