The tastytrade network: Recent Episodes
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The tastytrade network teaches investors innovative, simple ways to trade stocks, options, and futures, take advantage of market volatility and build a successful portfolio. Tom Sosnoff leads an irreverent and playful band of floor traders who are showing America a new way to quickly find low risk, high return strategies in bullish, bearish and sideways markets.
Christopher Vecchio, CFA, Head of Futures and Forex, talks with Anton Kulikov as market dynamics shift in the wake of the February Fed meeting and the January NFP report.
Tune in as they discuss why stocks could trade sideways (/ES, /NQ, /RTY), why bond bears are winning (/ZB, /ZN, /ZT), and why energy markets remain tough for bulls (/CL, /NG).
Christopher Vecchio, CFA, Head of Futures and Forex, talks with Anton Kulikov as market dynamics shift in the wake of the February Fed meeting and the January NFP report.
Tune in as they discuss why stocks could trade sideways (/ES, /NQ, /RTY), why bond bears are winning (/ZB, /ZN, /ZT), and why energy markets remain tough for bulls (/CL, /NG).
The tastylive crew breaks down the greek exposure changes at different strike proximities, and they highlight why some greeks can be offset by changes in others.
Tune in to learn more with a live Q&A as well!
The tastylive crew breaks down the greek exposure changes at different strike proximities, and they highlight why some greeks can be offset by changes in others.
Tune in to learn more with a live Q&A as well!
To get an expectation of portfolio buying power allocation over time, the historical IV numbers coupled with our targets resulted in an average allocation of 31% of your portfolio net liq.However, since volatility tends to cluster in certain ranges (like 2022), you can expect the current allocation target to vary over time and not change much in the short-term. In 2022, despite the expectation of lower IV, the VIX traded in its top 30th percentile of values all year.
To get an expectation of portfolio buying power allocation over time, the historical IV numbers coupled with our targets resulted in an average allocation of 31% of your portfolio net liq.However, since volatility tends to cluster in certain ranges (like 2022), you can expect the current allocation target to vary over time and not change much in the short-term. In 2022, despite the expectation of lower IV, the VIX traded in its top 30th percentile of values all year.
Today's conversation involves focus on sticky implied volatility despite a large move up in the market last week as well as some talk on the recent uptick in the 30 year to 10 year interest rate spreads.
Today's conversation involves focus on sticky implied volatility despite a large move up in the market last week as well as some talk on the recent uptick in the 30 year to 10 year interest rate spreads.
Christopher Vecchio, CFA, Head of Futures and Forex, talks with Pete Mulmat about markets after the January US nonfarm payrolls report.
Tune in as they discuss why stocks are at key resistance levels (/ES, /NQ), rangebound price action in bonds (/ZT, /ZN, /ZB), and why patience is still needed in energy markets (/CL, /NG).
Christopher Vecchio, CFA, Head of Futures and Forex, talks with Pete Mulmat about markets after the January US nonfarm payrolls report.
Tune in as they discuss why stocks are at key resistance levels (/ES, /NQ), rangebound price action in bonds (/ZT, /ZN, /ZB), and why patience is still needed in energy markets (/CL, /NG).
We rely on probabilities when deciding what trades to put on and when to manage them. While these probabilities might bear out in the long term, year to year we expect some variation. Today, Jacob joins Mike and Nick to examine how the realized percentage of winning trades has varied over the years.
We rely on probabilities when deciding what trades to put on and when to manage them. While these probabilities might bear out in the long term, year to year we expect some variation. Today, Jacob joins Mike and Nick to examine how the realized percentage of winning trades has varied over the years.
The tastylive crew walks through their options trading ideas for the day!
Mike buys a bullish call diagonal spread in SBUX for earnings
Katie buys a bearish put zebra in GLD
Nick buys a bullish call diagonal spread in AMZN for earnings
Tune in to learn more with a live Q&A session as well!
The tastylive crew walks through their options trading ideas for the day!
Mike buys a bullish call diagonal spread in SBUX for earnings
Katie buys a bearish put zebra in GLD
Nick buys a bullish call diagonal spread in AMZN for earnings
Tune in to learn more with a live Q&A session as well!
Errol and Dr. Jim discuss the importance of standard deviation. With binary events like FOMC announcements, there can outlier moves and as traders it can be helpful to know these probabilities.
Errol and Dr. Jim discuss the importance of standard deviation. With binary events like FOMC announcements, there can outlier moves and as traders it can be helpful to know these probabilities.
Christopher Vecchio, CFA, Head of Futures and Forex, talks with Anton Kulikov about trade setups in various asset classes ahead of the February Federal Reserve rate decision.
Tune in as they discuss the bullish potential for stocks (/ES, /NQ, /RTY), why bond bulls may soon reemerge (/ZB, /ZN, /ZT), and why the consolidation in precious metals may yield to further gains soon (/GC, /SI).
Christopher Vecchio, CFA, Head of Futures and Forex, talks with Anton Kulikov about trade setups in various asset classes ahead of the February Federal Reserve rate decision.
Tune in as they discuss the bullish potential for stocks (/ES, /NQ, /RTY), why bond bulls may soon reemerge (/ZB, /ZN, /ZT), and why the consolidation in precious metals may yield to further gains soon (/GC, /SI).
Katie and Nick walkthrough some tips and tricks for new traders getting into option trading, covering both equity and futures options!
Katie and Nick walkthrough some tips and tricks for new traders getting into option trading, covering both equity and futures options!
The Federal Reserve and its fight against runaway inflation has been the central object of speculation across global financial markets since mid-2021. A policy announcement from its FOMC rate-setting committee this week may herald the end of speculative interest in that story, marking the start of a new narrative across global stocks, bonds, currencies, commodities and digital assets.
The Federal Reserve and its fight against runaway inflation has been the central object of speculation across global financial markets since mid-2021. A policy announcement from its FOMC rate-setting committee this week may herald the end of speculative interest in that story, marking the start of a new narrative across global stocks, bonds, currencies, commodities and digital assets.
Even when we sell premium and generate positive theta on order entry, our positions can flip over and become negative theta. This essentially means that short premium positions will slowly approach maximum value (a bad outcome), and long premium positions will slowly approach minimum value (a bad outcome). Therefore, in these situations, time is working against you no differently than it would be with a naked long call or naked long put.
Even when we sell premium and generate positive theta on order entry, our positions can flip over and become negative theta. This essentially means that short premium positions will slowly approach maximum value (a bad outcome), and long premium positions will slowly approach minimum value (a bad outcome). Therefore, in these situations, time is working against you no differently than it would be with a naked long call or naked long put.
Christopher Vecchio, CFA, Head of Futures and Forex, talks with Jermal Chandler about the calm before the storm that is the February Federal Reserve rate decision.
Tune in as they discuss the drift higher in equity futures (/ES, /NQ, /RTY, /YM), the small rebound in bonds (/ZT, /ZN, /ZB), and thematic opportunities in FX futures (/6A, /6J).
Christopher Vecchio, CFA, Head of Futures and Forex, talks with Jermal Chandler about the calm before the storm that is the February Federal Reserve rate decision.
Tune in as they discuss the drift higher in equity futures (/ES, /NQ, /RTY, /YM), the small rebound in bonds (/ZT, /ZN, /ZB), and thematic opportunities in FX futures (/6A, /6J).
Christopher Vecchio, CFA, Head of Futures and Forex, talks with Anton Kulikov about the term structure in futures markets around the February Federal Reserve meeting and other event risk this week.
Tune in as they discuss updated positioning data per the CFTC's COT report (/ES, /VX, /CL, /GC, /6E), the pullback in US stock futures (/ES, /NQ, /RTY, /YM), and the continued retracement in bonds (/ZT, /ZN, /ZB).
Christopher Vecchio, CFA, Head of Futures and Forex, talks with Anton Kulikov about the term structure in futures markets around the February Federal Reserve meeting and other event risk this week.
Tune in as they discuss updated positioning data per the CFTC's COT report (/ES, /VX, /CL, /GC, /6E), the pullback in US stock futures (/ES, /NQ, /RTY, /YM), and the continued retracement in bonds (/ZT, /ZN, /ZB).
This week is a huge week for earnings, with some of the biggest market movers reporting earnings including AAPL, AMZN, GOOGL, and META. Nick walks through some tips and strategies for the upcoming earnings
This week is a huge week for earnings, with some of the biggest market movers reporting earnings including AAPL, AMZN, GOOGL, and META. Nick walks through some tips and strategies for the upcoming earnings
By observing the average monthly returns following a month of a strong rally, it looks like there is a “trend” where a sharp move up implied some continuation.However, these high average returns come with even higher standard deviations, meaning that there was no statistical significance to this “trend” phenomenon because there was a lot of variability in the higher returns.
By observing the average monthly returns following a month of a strong rally, it looks like there is a “trend” where a sharp move up implied some continuation.However, these high average returns come with even higher standard deviations, meaning that there was no statistical significance to this “trend” phenomenon because there was a lot of variability in the higher returns.
Volatility and price direction is reverting to a “short term” normalcy, but there are a few assets/prices not changing much. These are the following: Currency IV, Natural Gas IV, Bonds, and the 10y-2y spread.
Volatility and price direction is reverting to a “short term” normalcy, but there are a few assets/prices not changing much. These are the following: Currency IV, Natural Gas IV, Bonds, and the 10y-2y spread.
When trading futures, comparing borrowed capital dollar-for-dollar with traditional margin financing makes futures a much cheaper way to put on the same trade.Even if you are not one to use margin, financing for 2.8% and leaving that cash free for you to use elsewhere can be a valuable concept when diversifying a portfolio.
When trading futures, comparing borrowed capital dollar-for-dollar with traditional margin financing makes futures a much cheaper way to put on the same trade.Even if you are not one to use margin, financing for 2.8% and leaving that cash free for you to use elsewhere can be a valuable concept when diversifying a portfolio.
Christopher Vecchio, CFA, Head of Futures and Forex, talks with Jermal Chandler about the rally in risk assets on the heels of the 4Q'22 US GDP report.
Tune in as they discuss the push to fresh yearly highs in equity futures (/ES, /NQ), the rangebound conditions in bonds (/ZT, /ZN, /ZB), and energy markets are stuck in a loop (/CL, /NG).
Christopher Vecchio, CFA, Head of Futures and Forex, talks with Jermal Chandler about the rally in risk assets on the heels of the 4Q'22 US GDP report.
Tune in as they discuss the push to fresh yearly highs in equity futures (/ES, /NQ), the rangebound conditions in bonds (/ZT, /ZN, /ZB), and energy markets are stuck in a loop (/CL, /NG).
Tune in for three options trade ideas from the tastylive crew!
Mike buys a put calendar for earnings in V
Nick buys a put diagonal spread for earnings in V
Katie buys a call calendar spread in BA
Tune in to learn more with a live Q&A session as well!
Tune in for three options trade ideas from the tastylive crew!
Mike buys a put calendar for earnings in V
Nick buys a put diagonal spread for earnings in V
Katie buys a call calendar spread in BA
Tune in to learn more with a live Q&A session as well!
Christopher Vecchio, CFA, Head of Futures and Forex, talks with Anton Kulikov about the burgeoning resiliency in risk assets despite seemingly bad data and earnings.
Tune in as they discuss the rebound in US stock futures (/ES, /NQ, /RTY, /YM), the dip in US Treasury yields (/ZT, /ZN, /ZB), and why it's more of the same for energy markets (/CL, /NG).
Christopher Vecchio, CFA, Head of Futures and Forex, talks with Anton Kulikov about the burgeoning resiliency in risk assets despite seemingly bad data and earnings.
Tune in as they discuss the rebound in US stock futures (/ES, /NQ, /RTY, /YM), the dip in US Treasury yields (/ZT, /ZN, /ZB), and why it's more of the same for energy markets (/CL, /NG).
TSLA, IBM, and LVS all release earnings after the close, so Mike and Nick explore the implied volatility setups for each of the products ahead of the announcements.
They place bearish IBM trades with calendar and diagonal spreads, and Mike looks to place a put broken wing butterfly in TSLA.
Tune in for a live Q&A session as well!
TSLA, IBM, and LVS all release earnings after the close, so Mike and Nick explore the implied volatility setups for each of the products ahead of the announcements.
They place bearish IBM trades with calendar and diagonal spreads, and Mike looks to place a put broken wing butterfly in TSLA.
Tune in for a live Q&A session as well!
We’ve found that stock indices tend to not react much on earnings days. So what about trading our go-to option strategy initiated in earnings season? Join Tom and Tony as they analyze the earnings impact on the index’s option strategy performance.
We’ve found that stock indices tend to not react much on earnings days. So what about trading our go-to option strategy initiated in earnings season? Join Tom and Tony as they analyze the earnings impact on the index’s option strategy performance.
Christopher Vecchio, CFA, Head of Futures and Forex, talks with Jermal Chandler amid a quieter day of trading on Tuesday ahead of some important earnings reports.
Tune in as they discuss the path ahead for stocks (/ES, /NQ), technical reasons why the bond rally may resume (/ZT, /ZN, /ZB), and why gold continues to glitter (/GC).
Christopher Vecchio, CFA, Head of Futures and Forex, talks with Jermal Chandler amid a quieter day of trading on Tuesday ahead of some important earnings reports.
Tune in as they discuss the path ahead for stocks (/ES, /NQ), technical reasons why the bond rally may resume (/ZT, /ZN, /ZB), and why gold continues to glitter (/GC).
Mike and Nick both trade diagonal spreads from the long side in terms of setup, and the team explains why today. Tune in to learn how short diagonal spreads are much more neutral trades and have risk on both sides.
They give an example in MSFT and place an earnings trade as well!
Mike and Nick both trade diagonal spreads from the long side in terms of setup, and the team explains why today. Tune in to learn how short diagonal spreads are much more neutral trades and have risk on both sides.
They give an example in MSFT and place an earnings trade as well!
Christopher Vecchio, CFA, Head of Futures and Forex, joins Tom Sosnoff and Tony Battista to talk about the growing trend of layoffs at tech companies and why it's not necessarily a problem to worry about.
Christopher Vecchio, CFA, Head of Futures and Forex, joins Tom Sosnoff and Tony Battista to talk about the growing trend of layoffs at tech companies and why it's not necessarily a problem to worry about.
At tastylive, we are often looking for high IVR to encourage us to put on trades. How much difference does this make and is the effect different for defined risk vs undefined risk trades? Today, Tom and Tony examine the data to see just what high IVR is worth.
At tastylive, we are often looking for high IVR to encourage us to put on trades. How much difference does this make and is the effect different for defined risk vs undefined risk trades? Today, Tom and Tony examine the data to see just what high IVR is worth.
The "Ratchet" is an options strategy that focuses primarily on trade management. "Ratchet" trades can be done when options traders want to maintain a bullish assumption while also reducing trade risk. Discover how this trade related to the ZEBRA strategy and how to implement this trade on the tastyworks platform.
The “Reverse Big Lizard” is a neutral-to-bearish strategy performed on a stock at the top of its range. The RBL consists of 1 short ATM straddle, 1 long OTM put, and 1 long OTM call. Tune in to learn where to set your strikes and how to manage this no-downside-risk trade.
The “Spiked Lizard” is a neutral-to-bullish strategy consisting of 2 short ATM puts,1 long ITM put, 1 long OTM put, and 2 short far OTM puts. If placed correctly, risk is low on the downside and eliminated on the upside. Tune in to learn where to set your strikes and how to manage this trade.
The "Big Lizard" options trading strategy is a neutral or slightly bullish strategy that combines a short, at the money (ATM) straddle spread with a long OTM call option. When set up properly, this trade will have no upside risk. Tune in to discover why this trade has no risk to the upside, and how these traders would look to manage this trade.
Today, Liz and Jenny cover the "Jade Lizard". This is a slightly bullish strategy that combines a short put and a short call spread. When set up properly this trade will have no upside risk. Tune in to discover why this trade has no risk to the upside, and how these traders would look to manage this trade.
Welcome to the Liz & Jenny Strategy Series. Today, Liz and Jenny cover the "ZEBRA," more formally known as the Zero Extrinsic Back Ratio. This strategy is a stock replacement strategy, so it's useful for traders in IRAs or with limited capital. Tune in to discover which type of environment and underlying is best when implementing this position, and discover how these traders would look to manage this setup.
Christopher Vecchio, CFA, Head of Futures and Forex, talks with Anton Kulikov about the rally in equity markets after January options expiry on Friday.
Tune in as they discuss the gains in US stock futures (/ES, /NQ, /RTY, /YM), the bump higher in US Treasury yields (/ZT, /ZN, /ZB), and whether or not it's still wise to be a gold bull (/GC).
Christopher Vecchio, CFA, Head of Futures and Forex, talks with Anton Kulikov about the rally in equity markets after January options expiry on Friday.
Tune in as they discuss the gains in US stock futures (/ES, /NQ, /RTY, /YM), the bump higher in US Treasury yields (/ZT, /ZN, /ZB), and whether or not it's still wise to be a gold bull (/GC).
The tastylive crew explains why there are situations where we may wait to roll an options position to take a calculated risk, avoid an earnings announcement, or try to take advantage of near-term IV exposure.
Tune in to learn more with a live Q&A session as well!
The tastylive crew explains why there are situations where we may wait to roll an options position to take a calculated risk, avoid an earnings announcement, or try to take advantage of near-term IV exposure.
Tune in to learn more with a live Q&A session as well!
Since roughly a third of all 16 delta strangles saw at least one breach throughout the 45-day cycle, knowing how to use a defensive tactic like rolling will often come into use. Rolling the untested side reduces delta exposure, increases net credit and increases the probability of breaking even in exchange for giving up the max profit potential on the original trade.
Since roughly a third of all 16 delta strangles saw at least one breach throughout the 45-day cycle, knowing how to use a defensive tactic like rolling will often come into use. Rolling the untested side reduces delta exposure, increases net credit and increases the probability of breaking even in exchange for giving up the max profit potential on the original trade.
Christopher Vecchio, CFA, Head of Futures and Forex, talks with Pete Mulmat about trading strategies amid the January options expiry.
Tune in as they discuss the rebound in stocks (/ES, /NQ), 'more of the same' in energy (/CL, /NG), and what to make of recent price action in Treasu
Christopher Vecchio, CFA, Head of Futures and Forex, talks with Pete Mulmat about trading strategies amid the January options expiry.
Tune in as they discuss the rebound in stocks (/ES, /NQ), 'more of the same' in energy (/CL, /NG), and what to make of recent price action in Treasu
Tune in to learn how Nick managed his SHOP short put, which turned into a strangle through time, withstanding the variance of the stock going from $30 to $25, all the way up to over $40.
Live Q&A session as well!
Tune in to learn how Nick managed his SHOP short put, which turned into a strangle through time, withstanding the variance of the stock going from $30 to $25, all the way up to over $40.
Live Q&A session as well!
Christopher Vecchio, CFA, Head of Futures and Forex, talks with Jermal Chandler as risk appetite continues to deteriorate after its mid-week turn.
Tune in as they discuss the drop in stocks (/ES, /NQ), technical reasons why the bond rally may cool (/ZT, /ZN, /ZB), and whether or not precious metals can continue their bull run (/GC, /SI).
Christopher Vecchio, CFA, Head of Futures and Forex, talks with Jermal Chandler as risk appetite continues to deteriorate after its mid-week turn.
Tune in as they discuss the drop in stocks (/ES, /NQ), technical reasons why the bond rally may cool (/ZT, /ZN, /ZB), and whether or not precious metals can continue their bull run (/GC, /SI).
Tune in for some options & futures trade ideas from Katie, Mike and Nick!
Katie buys a call spread in /ZW Wheat Futures
Mike buys a put calendar spread in XSP
Nick opens a put broken wing butterfly in SPX
Tune in to learn more with a live Q&A session as well!
Tune in for some options & futures trade ideas from Katie, Mike and Nick!
Katie buys a call spread in /ZW Wheat Futures
Mike buys a put calendar spread in XSP
Nick opens a put broken wing butterfly in SPX
Tune in to learn more with a live Q&A session as well!
The actual probability of expiring ITM (estimated by delta) will be different for the put and call depending the type of market the underlying was in.However, when you added the actual probabilities of the put and call together, the probabilities were very close to expectation. One of the reasons we prefer neutral strategies as opposed to directional biased ones is because range-bound probabilities hold over time regardless of market conditions.
The actual probability of expiring ITM (estimated by delta) will be different for the put and call depending the type of market the underlying was in.However, when you added the actual probabilities of the put and call together, the probabilities were very close to expectation. One of the reasons we prefer neutral strategies as opposed to directional biased ones is because range-bound probabilities hold over time regardless of market conditions.
Today E presents Dr. Jim with 3 trade ideas conducive for a small account. With earnings around the corner, Dr. Jim also shares some words of wisdom when it comes down to putting on trades when earnings are near.
Today E presents Dr. Jim with 3 trade ideas conducive for a small account. With earnings around the corner, Dr. Jim also shares some words of wisdom when it comes down to putting on trades when earnings are near.
Smaller financial companies like tasty are predicated on empowering individuals. The problem they run into is the engrained culture within finance that pushes passivity. The message around the complexities of investing and argument for passivity has been around for as long as any of us can remember and it’s turned into an incredibly profitable message for traditional financial companies. Central to that message is the exploitation of people’s belief there is someone out there who knows more and has some sort of advantage. Convincing people otherwise is a tough hill to climb. On this week’s episode, Tom and Dylan discuss the challenge of disruption in an entrenched industry.
Smaller financial companies like tasty are predicated on empowering individuals. The problem they run into is the engrained culture within finance that pushes passivity. The message around the complexities of investing and argument for passivity has been around for as long as any of us can remember and it’s turned into an incredibly profitable message for traditional financial companies. Central to that message is the exploitation of people’s belief there is someone out there who knows more and has some sort of advantage. Convincing people otherwise is a tough hill to climb. On this week’s episode, Tom and Dylan discuss the challenge of disruption in an entrenched industry.
Christopher Vecchio, CFA, Head of Futures and Forex, talks with Anton Kulikov about the deluge of US economic data and news, and the deterioration in risk assets.
Tune in as they discuss the reversal in US equities (/ES, /NQ, /RTY, /YM), the rally by bonds to fresh highs (/ZT, /ZN, /ZB), and what to make of FX markets after the BOJ (/6J).
Christopher Vecchio, CFA, Head of Futures and Forex, talks with Anton Kulikov about the deluge of US economic data and news, and the deterioration in risk assets.
Tune in as they discuss the reversal in US equities (/ES, /NQ, /RTY, /YM), the rally by bonds to fresh highs (/ZT, /ZN, /ZB), and what to make of FX markets after the BOJ (/6J).
The tastylive crew explains how implied volatility environments can differ in options expirations with earnings coming up.
Tune in for a full breakdown of earnings announcements in NFLX, AA, PG, and SLB.
Live Q&A to follow!
The tastylive crew explains how implied volatility environments can differ in options expirations with earnings coming up.
Tune in for a full breakdown of earnings announcements in NFLX, AA, PG, and SLB.
Live Q&A to follow!
Earnings offer high-risk, high-reward trades due to the sharp change in IV before and after earnings. We’ve seen some significant moves in the past earnings seasons. So, have these earnings moves been outside the expected range? Why do we still sell premium in a highly volatile market?Join Tom and Tony as they analyze the expected move during earnings season.
Earnings offer high-risk, high-reward trades due to the sharp change in IV before and after earnings. We’ve seen some significant moves in the past earnings seasons. So, have these earnings moves been outside the expected range? Why do we still sell premium in a highly volatile market?Join Tom and Tony as they analyze the expected move during earnings season.
GS & MS earnings weighed down by high costs and faltering M&A. ECB also considering downshifting in rate hikes. Big moves in highly shorted names last week (BBBY, CVNA). Leftovers - U.S. & China Lead The Space Race 2.0
GS & MS earnings weighed down by high costs and faltering M&A. ECB also considering downshifting in rate hikes. Big moves in highly shorted names last week (BBBY, CVNA). Leftovers - U.S. & China Lead The Space Race 2.0
As premium sellers, we much prefer higher implied volatility for new option strategies. But much of the time in the market, volatility is on the lower end, so we need to have alternative strategies available to us for these environments, too. This is where a strategy like a Diagonal Spread is such a good strategy to have in your repertoire.
As premium sellers, we much prefer higher implied volatility for new option strategies. But much of the time in the market, volatility is on the lower end, so we need to have alternative strategies available to us for these environments, too. This is where a strategy like a Diagonal Spread is such a good strategy to have in your repertoire.
Christopher Vecchio, CFA, Head of Futures and Forex, talks with Jermal Chandler as markets re-open after the three-day weekend.
Tune in as they discuss sideways price action in stocks (/ES, /NQ), why energy markets are finding a short-term bottom (/CL, /NG), and whether the dip is worth buying in precious metals (/GC, /SI).
Christopher Vecchio, CFA, Head of Futures and Forex, talks with Jermal Chandler as markets re-open after the three-day weekend.
Tune in as they discuss sideways price action in stocks (/ES, /NQ), why energy markets are finding a short-term bottom (/CL, /NG), and whether the dip is worth buying in precious metals (/GC, /SI).
Mike and Nick are tackling the earnings season that is coming up over the next few weeks with a few specific strategies, and those strategies are determined by looking at the implied volatility environment for each stock's announcement itself.
Tune in to learn why they are leaning with more defined risk, calendarized strategies this earnings season!
Mike and Nick are tackling the earnings season that is coming up over the next few weeks with a few specific strategies, and those strategies are determined by looking at the implied volatility environment for each stock's announcement itself.
Tune in to learn why they are leaning with more defined risk, calendarized strategies this earnings season!
The BPR for an iron condor is the widest spread minus the credit received, all times the number of shares. So, when the long wings are defined by delta, the BPR for the iron condor will be inflated according to the skew of the underlying. How would the probability of an iron condor reaching max loss change if there was no skew? Join Tom and Tony as they discuss how skew helps iron condors.
The BPR for an iron condor is the widest spread minus the credit received, all times the number of shares. So, when the long wings are defined by delta, the BPR for the iron condor will be inflated according to the skew of the underlying. How would the probability of an iron condor reaching max loss change if there was no skew? Join Tom and Tony as they discuss how skew helps iron condors.
Earnings season offers additional credits to premium sellers willing to accept some additional risk. But how much extra risk is and how should our evaluation of IV change around earnings? Today, Tom and Tony explore the data to see how much difference there is between an underlying about to have earnings and one on an average day.
Earnings season offers additional credits to premium sellers willing to accept some additional risk. But how much extra risk is and how should our evaluation of IV change around earnings? Today, Tom and Tony explore the data to see how much difference there is between an underlying about to have earnings and one on an average day.
Everyone intuitively understands that the most effective way to learn a language is to go and live in a country where the language is spoken. Memrise gives you that kind of experience - but without having to catch a flight. Founded in 2010, Memrise uses dynamic, on-demand language immersion to help learners acquire the language skills they need in order to have real-life conversations. It all started to take from, when Ben Whately, the founder & CEO of Memrise developed a theory of effective language acquisition and moved to Qiqihaer, a small city on the China / Siberian border, to test whether this theory would work in practice.Within a few months, he spoke the language well enough to set up a business with an entirely Chinese-speaking team. And sometime after, Memrise was launched.
Everyone intuitively understands that the most effective way to learn a language is to go and live in a country where the language is spoken. Memrise gives you that kind of experience - but without having to catch a flight. Founded in 2010, Memrise uses dynamic, on-demand language immersion to help learners acquire the language skills they need in order to have real-life conversations. It all started to take from, when Ben Whately, the founder & CEO of Memrise developed a theory of effective language acquisition and moved to Qiqihaer, a small city on the China / Siberian border, to test whether this theory would work in practice.Within a few months, he spoke the language well enough to set up a business with an entirely Chinese-speaking team. And sometime after, Memrise was launched.
Small accounts have different trading limitations than larger accounts, and there are a few things that they guys like to focus on - high liquidity products, defined risk strategies, and much more!
Tune in for a full breakdown with a live Q&A session to follow!
Small accounts have different trading limitations than larger accounts, and there are a few things that they guys like to focus on - high liquidity products, defined risk strategies, and much more!
Tune in for a full breakdown with a live Q&A session to follow!
Earnings season provides tastytraders with heightened credits thanks to the increased IV, but do those increased credits sufficiently compensate use for the risk incurred by short premium positions? In particular, we can observe how much the spot price varied following earnings compared to IV, contrasting earnings announcements dates with overall averages. Today, Tom and Tony check the data to see if increased earnings IV keeps pace with increased earnings price action.
Earnings season provides tastytraders with heightened credits thanks to the increased IV, but do those increased credits sufficiently compensate use for the risk incurred by short premium positions? In particular, we can observe how much the spot price varied following earnings compared to IV, contrasting earnings announcements dates with overall averages. Today, Tom and Tony check the data to see if increased earnings IV keeps pace with increased earnings price action.
Christopher Vecchio, CFA, Head of Futures and Forex, talks with Jermal Chandler in the wake of the December US inflation report (CPI).
Tune in as they discuss the burgeoning bullish breakout in US equity futures (/ES, /NQ), the returning bid in bond markets (/ZT, /ZN, /ZB), and how to fade the recent rally in energy prices (/CL, /NG).
Christopher Vecchio, CFA, Head of Futures and Forex, talks with Jermal Chandler in the wake of the December US inflation report (CPI).
Tune in as they discuss the burgeoning bullish breakout in US equity futures (/ES, /NQ), the returning bid in bond markets (/ZT, /ZN, /ZB), and how to fade the recent rally in energy prices (/CL, /NG).
Tune in for a full trade strategy walkthrough and a live Q&A session from the tastylive crew!
Mike sells a put ratio spread in XOP
Nick sells a put in LYFT
Katie shorts an /M6E contract
Tune in for a full trade strategy walkthrough and a live Q&A session from the tastylive crew!
Mike sells a put ratio spread in XOP
Nick sells a put in LYFT
Katie shorts an /M6E contract
We often say that short options traders should trade often in order to most likely realize the long-term expected performance of a trade (a consequence of the law of large numbers and central limit theorem). Let’s take a look at short 16Δ SPY strangles, managed at expiration to understand why. Join Tom and Tony as they discuss why we trade often.
We often say that short options traders should trade often in order to most likely realize the long-term expected performance of a trade (a consequence of the law of large numbers and central limit theorem). Let’s take a look at short 16Δ SPY strangles, managed at expiration to understand why. Join Tom and Tony as they discuss why we trade often.
Stocks and gold prices soared while the Dollar sank as December's US jobs report stoked hopes for a sooner end to the Fed's aggressive rate hike effort. Will soft US CPI data bring more of the same?
Stocks and gold prices soared while the Dollar sank as December's US jobs report stoked hopes for a sooner end to the Fed's aggressive rate hike effort. Will soft US CPI data bring more of the same?
Christopher Vecchio, CFA, Head of Futures and Forex, talks with Anton Kulikov about strategies in futures ahead of the December US inflation report (CPI) on Thursday.
Tune in as they discuss the likelihood of further gains in US equities (/ES, /NQ, /RTY, /YM), the divergence in US Treasuries (/ZT, /ZN, /ZB), and why FX futures may be appealing on a risk-adjusted basis (/6A, /6B, /6C, /6E, /6J).
Christopher Vecchio, CFA, Head of Futures and Forex, talks with Anton Kulikov about strategies in futures ahead of the December US inflation report (CPI) on Thursday.
Tune in as they discuss the likelihood of further gains in US equities (/ES, /NQ, /RTY, /YM), the divergence in US Treasuries (/ZT, /ZN, /ZB), and why FX futures may be appealing on a risk-adjusted basis (/6A, /6B, /6C, /6E, /6J).
When the short option in a calendar spread is about to expire, the overall trade can have a higher ROC because the short option largely ignores OTM moves towards the strike compared to short options with more time to expiration.
Tune in to learn more with a live Q&A session as well!
When the short option in a calendar spread is about to expire, the overall trade can have a higher ROC because the short option largely ignores OTM moves towards the strike compared to short options with more time to expiration.
Tune in to learn more with a live Q&A session as well!
The first earnings season in 2023 is around the corner. So how did our Fear Index VIX react to earnings historically? Do we see significantly higher VIX during the earnings seasons?Join Tom and Tony as they analyze how VIX reacts to earnings seasons historically
The first earnings season in 2023 is around the corner. So how did our Fear Index VIX react to earnings historically? Do we see significantly higher VIX during the earnings seasons?Join Tom and Tony as they analyze how VIX reacts to earnings seasons historically
Christopher Vecchio, CFA, Head of Futures and Forex, talks with Jermal Chandler after Fed Chair Jerome Powell's speech on Tuesday.
Tune in as they discuss the lack of movement in stocks (/ES, /NQ), what to make of price action in energy markets (/CL, /NG), and whether or not the recent bid in bond markets is finished (/ZT, /ZN, /ZB).
Christopher Vecchio, CFA, Head of Futures and Forex, talks with Jermal Chandler after Fed Chair Jerome Powell's speech on Tuesday.
Tune in as they discuss the lack of movement in stocks (/ES, /NQ), what to make of price action in energy markets (/CL, /NG), and whether or not the recent bid in bond markets is finished (/ZT, /ZN, /ZB).
Tune in to learn more about dynamic delta strategies, with a breakdown of the difference in short premium vs long premium trading - the crew walks through short puts, diagonal spreads, ratio spreads and calendar spreads.
Lots of visuals on this one so don't miss it!
Tune in to learn more about dynamic delta strategies, with a breakdown of the difference in short premium vs long premium trading - the crew walks through short puts, diagonal spreads, ratio spreads and calendar spreads.
Lots of visuals on this one so don't miss it!
The last part of placing a trade is arguably the most important. Specifying market order or a limit price can drastically effect our profitability, while stop prices can be used to set up triggers for future trades. Today, Tom and Tony take a moment to review the meanings and purposes behind all the choices we make after we have decided what position we want to buy or sell.
The last part of placing a trade is arguably the most important. Specifying market order or a limit price can drastically effect our profitability, while stop prices can be used to set up triggers for future trades. Today, Tom and Tony take a moment to review the meanings and purposes behind all the choices we make after we have decided what position we want to buy or sell.
Changing the delta on your short premium when IV goes up or down can help stabilize a portfolio’s exposure since all deltas are affected similarly by changes in IV.
Increasing the delta of a strangle can substitute for the lack of high IV, but there is less opportunity to be had on average, so scaling up the short delta strikes did not improve your P/L (at least in this study).
Changing the delta on your short premium when IV goes up or down can help stabilize a portfolio’s exposure since all deltas are affected similarly by changes in IV.
Increasing the delta of a strangle can substitute for the lack of high IV, but there is less opportunity to be had on average, so scaling up the short delta strikes did not improve your P/L (at least in this study).
Christopher Vecchio, CFA, Head of Futures and Forex, talks with Anton Kulikov about future options strategies at the start of the new trading week.
Tune in as they discuss the bullish breakout in US equities (/ES, /NQ, /RTY, /YM), the ongoing bid in bonds (/ZT, /ZN, /ZB), and how to structure trades in energy (/CL, /NG).
Christopher Vecchio, CFA, Head of Futures and Forex, talks with Anton Kulikov about future options strategies at the start of the new trading week.
Tune in as they discuss the bullish breakout in US equities (/ES, /NQ, /RTY, /YM), the ongoing bid in bonds (/ZT, /ZN, /ZB), and how to structure trades in energy (/CL, /NG).
SKEW exists in an options market when equidistant OTM options are different prices. The higher-priced option side indicates that the market perceives the risk of a high-velocity move to be to that side. This doesn't mean the market is moving in that direction, but it can help us understand how the market views risk in that particular expiration cycle.
Tune in to learn more with a live Q&A as well!
SKEW exists in an options market when equidistant OTM options are different prices. The higher-priced option side indicates that the market perceives the risk of a high-velocity move to be to that side. This doesn't mean the market is moving in that direction, but it can help us understand how the market views risk in that particular expiration cycle.
Tune in to learn more with a live Q&A as well!
Changing the delta on your short premium when IV goes up or down can help stabilize a portfolio’s exposure since all deltas are affected similarly by changes in IV.Increasing the delta of a strangle can substitute for the lack of high IV, but there is less opportunity to be had on average, so scaling up the short delta strikes did not improve your P/L (at least in this study).
Changing the delta on your short premium when IV goes up or down can help stabilize a portfolio’s exposure since all deltas are affected similarly by changes in IV.Increasing the delta of a strangle can substitute for the lack of high IV, but there is less opportunity to be had on average, so scaling up the short delta strikes did not improve your P/L (at least in this study).
Binance US to acquire bankrupt Voyager Digital’s assets for $1B. Market pricing a 60% chance of 25 bps hike in Feb. Percentage of days where SPX and VIX are both down is at multi-decade high (20%). Leftovers - ¼ Of Americans Are Pulling Back On Investing To Cover Expenses.
Binance US to acquire bankrupt Voyager Digital’s assets for $1B. Market pricing a 60% chance of 25 bps hike in Feb. Percentage of days where SPX and VIX are both down is at multi-decade high (20%). Leftovers - ¼ Of Americans Are Pulling Back On Investing To Cover Expenses.
Head of Futures, Christopher Vecchio, welcomes us to his new futures trading show and discusses markets in the wake of the Federal Reserve meeting last week.
Tune in as he walks through each asset class, notes the biggest movers, and shares his outlook for what's to come during this holiday week.
Head of Futures, Christopher Vecchio, welcomes us to his new futures trading show and discusses markets in the wake of the Federal Reserve meeting last week.
Tune in as he walks through each asset class, notes the biggest movers, and shares his outlook for what's to come during this holiday week.
When it comes to portfolio delta management, we typically use SPY as that is what we're beta-weighting to by default, and it's infinitely liquid across all expirations.
Tune in to learn more about this concept, with a live Q&A session as well!
When it comes to portfolio delta management, we typically use SPY as that is what we're beta-weighting to by default, and it's infinitely liquid across all expirations.
Tune in to learn more about this concept, with a live Q&A session as well!
We found random post-earnings market moves even across the highly correlated Nasdaq sector and highly correlated big tech underlyings. One post-earnings stock move does not imply similar moves across other big tech companies that may come out later in the week.
We found random post-earnings market moves even across the highly correlated Nasdaq sector and highly correlated big tech underlyings. One post-earnings stock move does not imply similar moves across other big tech companies that may come out later in the week.
On today's episode of Engineering the Trade, Jermal Chandler is joined by Julia Spina to talk about how to manage your portfolio if you have a vacation on the horizon as the year comes to a close.
On today's episode of Engineering the Trade, Jermal Chandler is joined by Julia Spina to talk about how to manage your portfolio if you have a vacation on the horizon as the year comes to a close.
When you have a long OTM strategy that isn’t working, there is no reason to close out the position when it’s marking at/near zero. The position may never come back, but you literally cannot lose anymore, so there is no reason not to hold it. This idea applies to any long premium strategy, such as a long call, long put, or long vertical spread.
When you have a long OTM strategy that isn’t working, there is no reason to close out the position when it’s marking at/near zero. The position may never come back, but you literally cannot lose anymore, so there is no reason not to hold it. This idea applies to any long premium strategy, such as a long call, long put, or long vertical spread.
Tune in to hear Mike and Nick talk through viewer positions from the YouTube chat as they look for new trades!
The topics today revolve around options strategy management, earnings trades, and much more!
Tune in to hear Mike and Nick talk through viewer positions from the YouTube chat as they look for new trades!
The topics today revolve around options strategy management, earnings trades, and much more!
Anton joins the Liz and Jenny show to talk about year end trade ideas. According to the option volatility, these last couple weeks might slow down, then pick up again after the holidays. Is there a trade to take advantage of this situation?
Anton joins the Liz and Jenny show to talk about year end trade ideas. According to the option volatility, these last couple weeks might slow down, then pick up again after the holidays. Is there a trade to take advantage of this situation?
Liz and Jenny's zebra rule is to roll at 10 DTE or more. Today they show you the negative impact of holding zebras until 0 DTE. They also go over jade lizard mechanics for a viewer.
Liz and Jenny's zebra rule is to roll at 10 DTE or more. Today they show you the negative impact of holding zebras until 0 DTE. They also go over jade lizard mechanics for a viewer.
When looking to increase exposure in defined risk trades, there are three obvious routes: moving closer to the money, widening the strikes, or increasing the quantity. How do these different approaches stack up? Today, Anton joins Tony and Liz to see what the data had to say for premium sellers in ETFs during the last decade.
When looking to increase exposure in defined risk trades, there are three obvious routes: moving closer to the money, widening the strikes, or increasing the quantity. How do these different approaches stack up? Today, Anton joins Tony and Liz to see what the data had to say for premium sellers in ETFs during the last decade.
Inflation might have taken a step back but the Fed crushed any dreams of a Santa Rally. Join Tony, Liz and Jermal as they discuss a wild five-day ride in markets on This Week In Stocks.
Inflation might have taken a step back but the Fed crushed any dreams of a Santa Rally. Join Tony, Liz and Jermal as they discuss a wild five-day ride in markets on This Week In Stocks.
Powell after 50 bps hike: “Fed still has a ways to go”. BOE & ECB both hike 50 bps; ECB warns of pain ahead. Retail sales worse; initial jobless claims lower. Leftovers - How Important Is The Holiday Season To Retailers?
Powell after 50 bps hike: “Fed still has a ways to go”. BOE & ECB both hike 50 bps; ECB warns of pain ahead. Retail sales worse; initial jobless claims lower. Leftovers - How Important Is The Holiday Season To Retailers?
Today we are live on YouTube taking your questions! Some great ones that came in: What do you think about the use of straddles on index futures (i.e. /NQ, /ES, /MNQ, etc.) for profits around triple witching?
Can you say anything about when and how to "recenter" strangles? Is the 50% management rule on options selling due to risk/reward skewing against you as you start actualizing credit received?
Today we are live on YouTube taking your questions! Some great ones that came in: What do you think about the use of straddles on index futures (i.e. /NQ, /ES, /MNQ, etc.) for profits around triple witching?
Can you say anything about when and how to "recenter" strangles? Is the 50% management rule on options selling due to risk/reward skewing against you as you start actualizing credit received?
Anton from the tastylive Research Team goes LIVE on YouTube to answer questions from tastynation in real-time. Want your question answered live? Tune in every weekday at 12 central time to ask your question on air.
Anton from the tastylive Research Team goes LIVE on YouTube to answer questions from tastynation in real-time. Want your question answered live? Tune in every weekday at 12 central time to ask your question on air.
Tune in for three trade ideas from Katie, Mike and Nick!
Mike buys a put calendar spread in ADBE for earnings.
Nick buys a put diagonal spread in FSLR to fade the recent rally.
Katie buys /M6A
Tune in for three trade ideas from Katie, Mike and Nick!
Mike buys a put calendar spread in ADBE for earnings.
Nick buys a put diagonal spread in FSLR to fade the recent rally.
Katie buys /M6A
Liz and Jenny answer live viewer tweets with #LIZJNY and talk about the crazy moves the market has had this week. They place a short-term SPY diagonal, or the "free long" trade by selling a higher strike OTM put, buying a lower strike put with greater DTE and taking in a small credit.
Liz and Jenny answer live viewer tweets with #LIZJNY and talk about the crazy moves the market has had this week. They place a short-term SPY diagonal, or the "free long" trade by selling a higher strike OTM put, buying a lower strike put with greater DTE and taking in a small credit.
Liz and Jenny take a look at all of their current futures positions. They take profits in /MES and look at placing a /MCL trade but decide against it. They also look at the relationship between /2Y and /10Y.
Liz and Jenny take a look at all of their current futures positions. They take profits in /MES and look at placing a /MCL trade but decide against it. They also look at the relationship between /2Y and /10Y.
Innovation in healthcare has been slow, but in the past several years there have been companies that are bringing the space up to the 21st century. SMARTCharts is one of those. They make “fitness” trackers for therapy and learning. They take the technical parameters, measurements, and timetables of proven interventions and translate the data of an individual’s progress into images that inspire success. Which in turn empowers patients to have better rehabilitative outcomes by visualizing progress in speech, occupational and physical therapy. Corrine Vargas is the Founder and CEO. She explains to Dylan how the system works.
Innovation in healthcare has been slow, but in the past several years there have been companies that are bringing the space up to the 21st century. SMARTCharts is one of those. They make “fitness” trackers for therapy and learning. They take the technical parameters, measurements, and timetables of proven interventions and translate the data of an individual’s progress into images that inspire success. Which in turn empowers patients to have better rehabilitative outcomes by visualizing progress in speech, occupational and physical therapy. Corrine Vargas is the Founder and CEO. She explains to Dylan how the system works.
Options have complex risk profiles, so we often have to use a variety of statistics to evaluate it. The two most common metrics we use to evaluate historic risk are P/L standard deviation and P/L CVaR. Join Tom and Tony as they discuss why it’s important to use both standard deviation and CVaR.
Options have complex risk profiles, so we often have to use a variety of statistics to evaluate it. The two most common metrics we use to evaluate historic risk are P/L standard deviation and P/L CVaR. Join Tom and Tony as they discuss why it’s important to use both standard deviation and CVaR.
Today Errol and Dr. Jim dive into the relationship between Delta and Vega, and what you must understand when analyzing a position. Errol then explains his existing $SPY positions, and Dr. Jim explains gives his opinion on them.
Today Errol and Dr. Jim dive into the relationship between Delta and Vega, and what you must understand when analyzing a position. Errol then explains his existing $SPY positions, and Dr. Jim explains gives his opinion on them.
It used to be that banks had a monopoly on customer information. They see where you spend money and how often. Today, places like Amazon, who know virtually everything about you and social media companies, who know what you think, arguably have more information at their disposal than even banks.
There is legitimate reason to discuss how this information and the lists those companies can create should be used. Tune in to this week’s episode to hear Tom and Dylan discuss how these lists can be used and whether or not their use should be regulated.
It used to be that banks had a monopoly on customer information. They see where you spend money and how often. Today, places like Amazon, who know virtually everything about you and social media companies, who know what you think, arguably have more information at their disposal than even banks.
There is legitimate reason to discuss how this information and the lists those companies can create should be used. Tune in to this week’s episode to hear Tom and Dylan discuss how these lists can be used and whether or not their use should be regulated.
With Powell taking the stand at 130pm CST, there is heightened implied volatility in the near-term cycles for ETFs like SPY and QQQ - today the crew explains how they're trading this intraday binary event, with a double calendar spread in XSP.
Tune in to learn more with a live Q&A as well!
With Powell taking the stand at 130pm CST, there is heightened implied volatility in the near-term cycles for ETFs like SPY and QQQ - today the crew explains how they're trading this intraday binary event, with a double calendar spread in XSP.
Tune in to learn more with a live Q&A as well!
We’ve known that success rates of selling option premium in indices or individual stocks are better than expected. What about sector ETFs? Do we see similar win rates by selling stocks within the ETFs?
Join Tom and Tony as they analyze the performances of selling strangles in the top 3 stocks in 5 popular sector ETFs.
We’ve known that success rates of selling option premium in indices or individual stocks are better than expected. What about sector ETFs? Do we see similar win rates by selling stocks within the ETFs?
Join Tom and Tony as they analyze the performances of selling strangles in the top 3 stocks in 5 popular sector ETFs.
First time since Covid that core inflation declines. Bond traders now lean towards a quarter-point rate hike in February. Would a dovish Fed send oil back over $100? Leftovers - What Causes You Stress During The Holiday Season?
First time since Covid that core inflation declines. Bond traders now lean towards a quarter-point rate hike in February. Would a dovish Fed send oil back over $100? Leftovers - What Causes You Stress During The Holiday Season?
With CPI having come in well under consensus estimates for the second consecutive month, how should you consider positioning your portfolio? The market rallied hard after the miss, so what's coming next with the Fed Announcement tomorrow and triple witching on Friday?
On today's YouTube Live we discuss all of those things and take as many of your questions as we can!
With CPI having come in well under consensus estimates for the second consecutive month, how should you consider positioning your portfolio? The market rallied hard after the miss, so what's coming next with the Fed Announcement tomorrow and triple witching on Friday?
On today's YouTube Live we discuss all of those things and take as many of your questions as we can!
Liz and Jenny bring their worst performers of 2022. They look for opportunities in these products moving forward. They try to find trades in TWLO, RIVN, GM, SNAP, VZ, and RKT.
Liz and Jenny bring their worst performers of 2022. They look for opportunities in these products moving forward. They try to find trades in TWLO, RIVN, GM, SNAP, VZ, and RKT.
In 2005, the worst recorded loss for a 45 DTE 16Δ SPY strangle managed at 21 DTE was -99% the initial credit. That worst loss was exceeded in mid 2007, when the worst loss for this strategy reached -101%. How likely is it for the worst loss of a strategy to be exceeded? Join Tom and Tony as they look at SPY strangles to find out.
In 2005, the worst recorded loss for a 45 DTE 16Δ SPY strangle managed at 21 DTE was -99% the initial credit. That worst loss was exceeded in mid 2007, when the worst loss for this strategy reached -101%. How likely is it for the worst loss of a strategy to be exceeded? Join Tom and Tony as they look at SPY strangles to find out.
Do public hearings and testimony offer insight when a crime has been perpetrated or is it just an opportunity for a criminal to try and sway public opinion? Join Tom, Tony, and Victor as they discuss this and more!
Do public hearings and testimony offer insight when a crime has been perpetrated or is it just an opportunity for a criminal to try and sway public opinion? Join Tom, Tony, and Victor as they discuss this and more!
On this episode of Engineering the Trade, Jermal Chandler talks to Dan Deming of KKM Financial as he draws on his experiences as a trader, advisor and portfolio manager to provide his take on the current state of bonds, the VIX and a myriad of other stock market related issues.
On this episode of Engineering the Trade, Jermal Chandler talks to Dan Deming of KKM Financial as he draws on his experiences as a trader, advisor and portfolio manager to provide his take on the current state of bonds, the VIX and a myriad of other stock market related issues.
With both CPI and a Fed Announcement this week, the market is primed for extreme volatility. As a result, we decide to take some undefined-risk units off the table, just to lighten up our capital allocation and buying power usage. Specifically, our $DOCU earnings trade from just last week is right around a scratch, so we close it out early today.
With both CPI and a Fed Announcement this week, the market is primed for extreme volatility. As a result, we decide to take some undefined-risk units off the table, just to lighten up our capital allocation and buying power usage. Specifically, our $DOCU earnings trade from just last week is right around a scratch, so we close it out early today.
Anton from the tastylive Research Team goes LIVE on YouTube to answer questions from tastynation in real-time. Want your question answered live? Tune in every weekday at 12 central time to ask your question on air.
Anton from the tastylive Research Team goes LIVE on YouTube to answer questions from tastynation in real-time. Want your question answered live? Tune in every weekday at 12 central time to ask your question on air.
Liz and Jenny go over trade ideas in QQQ direct from Alpha Boost. They decide to add a bearish or short delta position since their account is long delta. They compare a reverse big lizard, a reverse jade lizard, and a call ratio spread. They place a defined risk reverse big lizard and hope to take 10-20% profit of the total collected credit.
Liz and Jenny go over trade ideas in QQQ direct from Alpha Boost. They decide to add a bearish or short delta position since their account is long delta. They compare a reverse big lizard, a reverse jade lizard, and a call ratio spread. They place a defined risk reverse big lizard and hope to take 10-20% profit of the total collected credit.
Liz and Jenny place an earnings strangle in ORCL and have a discussion about taking risk off of the table prior to economic numbers coming out.
Liz and Jenny place an earnings strangle in ORCL and have a discussion about taking risk off of the table prior to economic numbers coming out.
Average implied, historical volatility, and price returns for the S&P 500 for triple witching months were all in line with the yearly average and all carried a large standard deviation...making the results as good as random.
The only observable seasonality occurred in volatility as it increased in the fall and spring relative to summer and winter.
Average implied, historical volatility, and price returns for the S&P 500 for triple witching months were all in line with the yearly average and all carried a large standard deviation...making the results as good as random.
The only observable seasonality occurred in volatility as it increased in the fall and spring relative to summer and winter.
One thing any active trader quickly realizes is that the market is a living and breathing thing. And it’s always fun to have a directional bias to play the upside with long positions or play the downside with short positions. But in the end, it’s important to have an unbiased and objective baseline to come back to, which is where Maximum Likelihood Estimation really shines.
One thing any active trader quickly realizes is that the market is a living and breathing thing. And it’s always fun to have a directional bias to play the upside with long positions or play the downside with short positions. But in the end, it’s important to have an unbiased and objective baseline to come back to, which is where Maximum Likelihood Estimation really shines.
On today's episode of Engineering the Trade, Jermal Chandler is joined by Dr. Data as they take a look at the magnitude of the moves in micro futures.
On today's episode of Engineering the Trade, Jermal Chandler is joined by Dr. Data as they take a look at the magnitude of the moves in micro futures.
Earlier this morning, the producer price index was released, and it came in above the consensus estimate. This suggests that inflation may be peaking up again, as prices on the producer side could be increasing. Interestingly, however, the market shrugged off the news and rallied higher. So what’s going on here? We offer our take, and then, we take as many of your questions as we can!
Earlier this morning, the producer price index was released, and it came in above the consensus estimate. This suggests that inflation may be peaking up again, as prices on the producer side could be increasing. Interestingly, however, the market shrugged off the news and rallied higher. So what’s going on here? We offer our take, and then, we take as many of your questions as we can!
Skew comes up a lot on our network, and when trading futures, the concept is more prevalent than ever since each product/underlying has its own skew.
In this segment, we will discuss the four different ways to measure and discern how much skew and what type of skew an underlying has.
Skew comes up a lot on our network, and when trading futures, the concept is more prevalent than ever since each product/underlying has its own skew.
In this segment, we will discuss the four different ways to measure and discern how much skew and what type of skew an underlying has.
Anton goes LIVE on YouTube to answer questions from tastynation. Want your question answered live? Tune in every weekday at 12 central time to ask your question on air.
Anton goes LIVE on YouTube to answer questions from tastynation. Want your question answered live? Tune in every weekday at 12 central time to ask your question on air.
When pairing futures contracts with futures options for certain strategies, it's important to understand that as the futures contract expiration changes, so does the price of the contract. This has implications on options strike selection, and the greeks associated with the product as well.
Tune in to learn more with a live Q&A session as well!
When pairing futures contracts with futures options for certain strategies, it's important to understand that as the futures contract expiration changes, so does the price of the contract. This has implications on options strike selection, and the greeks associated with the product as well.
Tune in to learn more with a live Q&A session as well!
Implied volatility rank (IVR) scales implied volatility to make it more comparable between underlyings. At tastytrade, we try to look for high IVR opportunities to sell premium, but how much does it really matter?
Today, Tom and Tony explore the data to see how much edge is gained by waiting for high IVR vs. how many trades are missed.
Implied volatility rank (IVR) scales implied volatility to make it more comparable between underlyings. At tastytrade, we try to look for high IVR opportunities to sell premium, but how much does it really matter?
Today, Tom and Tony explore the data to see how much edge is gained by waiting for high IVR vs. how many trades are missed.
Join Tom, Tony, and Jermal as they discuss falling bond yields, crude’s recent lows, and the crypto 2022 timeline on This Week In Stocks.
Join Tom, Tony, and Jermal as they discuss falling bond yields, crude’s recent lows, and the crypto 2022 timeline on This Week In Stocks.
Stocks halt five-day slide after bouncing off 100-day moving avg. 10- and 30-year bonds at 3-month lows; TLT up 15% in a month. Continuing claims rise to highest level since Feb. Leftovers - Are World Cup Matches Getting Longer?
Stocks halt five-day slide after bouncing off 100-day moving avg. 10- and 30-year bonds at 3-month lows; TLT up 15% in a month. Continuing claims rise to highest level since Feb. Leftovers - Are World Cup Matches Getting Longer?
Next week is setting up to be a highly volatile week, with both the CPI release on Tuesday and the Fed Announcement on Wednesday. On today’s YouTube Live, we talk about what to consider going into these data points, and how to possibly position your portfolio. Then, we take as many of your questions as we can!
Next week is setting up to be a highly volatile week, with both the CPI release on Tuesday and the Fed Announcement on Wednesday. On today’s YouTube Live, we talk about what to consider going into these data points, and how to possibly position your portfolio. Then, we take as many of your questions as we can!
The crew walks through their options trade ideas for the day, and answers live questions from the YouTube chat!
Mike buys a call calendar spread for earnings in COST.
Nick sells a put and a call ratio spread with separated short strikes in ROKU.
Katie buys a call vertical spread in Wheat Futures.
The crew walks through their options trade ideas for the day, and answers live questions from the YouTube chat!
Mike buys a call calendar spread for earnings in COST.
Nick sells a put and a call ratio spread with separated short strikes in ROKU.
Katie buys a call vertical spread in Wheat Futures.
Short premium traders aim to trade underlyings that have elevated implied volatilities. Since raw implied volatility does not provide a relative measure of volatility elevation and it is not comparable between underlyings, traders will use IVR or IVP. Join Tom and Tony as they discuss the difference between these metrics and the pros and cons of each.
Short premium traders aim to trade underlyings that have elevated implied volatilities. Since raw implied volatility does not provide a relative measure of volatility elevation and it is not comparable between underlyings, traders will use IVR or IVP. Join Tom and Tony as they discuss the difference between these metrics and the pros and cons of each.
Today Errol comes at Dr. Jim with 3 trade ideas to choose from today. E chooses one underlying to put a trade on, and as they decide which one to choose Dr. Jim explains the variables he uses to decipher the more practical trade idea.
Today Errol comes at Dr. Jim with 3 trade ideas to choose from today. E chooses one underlying to put a trade on, and as they decide which one to choose Dr. Jim explains the variables he uses to decipher the more practical trade idea.
Anton shows how product indifference can be used to add positions to portfolios without much hassle when you look at the trades from the context of risk/reward only. Directional biases and products are irrelevant when adding trades.
Anton shows how product indifference can be used to add positions to portfolios without much hassle when you look at the trades from the context of risk/reward only. Directional biases and products are irrelevant when adding trades.
Anton goes LIVE on YouTube to answer questions from tastynation. Want your question answered live? Tune in every weekday at 12 central time to ask your question on air.
Anton goes LIVE on YouTube to answer questions from tastynation. Want your question answered live? Tune in every weekday at 12 central time to ask your question on air.
Tony joins Nick for a throwback to the bat vs bat days, taking trade ideas and questions from the youtube chat live on air!
Tony joins Nick for a throwback to the bat vs bat days, taking trade ideas and questions from the youtube chat live on air!
Jacob joins Tom and Tony to explore how knowledge about short-term probabilities informs understanding of long-term probabilities and vice versa.
Jacob joins Tom and Tony to explore how knowledge about short-term probabilities informs understanding of long-term probabilities and vice versa.
Join Tom and Tony as they analyze 10 popular individual stocks in various sectors and check if selling a strangle can achieve high success rate.
Join Tom and Tony as they analyze 10 popular individual stocks in various sectors and check if selling a strangle can achieve high success rate.
One of the biggest reasons we like trading stocks like AAPL, AMZN, or NFLX is because the premiums are often quite juicy in these names - yielding several important benefits. First, more credit allows us to widen our break-even points. Second, more credit makes for easier adjustments when we are defending a position. And third, more credit makes even more room for implied volatility overstatement.
One of the biggest reasons we like trading stocks like AAPL, AMZN, or NFLX is because the premiums are often quite juicy in these names - yielding several important benefits. First, more credit allows us to widen our break-even points. Second, more credit makes for easier adjustments when we are defending a position. And third, more credit makes even more room for implied volatility overstatement.
Notice the BPR for a one lot in all products is valued at roughly 20-35% of its IV adjusted notional value, and it does scale. This means comparing the BPR of a trade to another trade can be as effective at comparing risk as does comparing IV adjusted notional values.
Notice the BPR for a one lot in all products is valued at roughly 20-35% of its IV adjusted notional value, and it does scale. This means comparing the BPR of a trade to another trade can be as effective at comparing risk as does comparing IV adjusted notional values.
Anton goes LIVE on air to answer questions real-time from tastynation all over the world.
Anton goes LIVE on air to answer questions real-time from tastynation all over the world.
Jason VandeBoom is the Founder & CEO of Active Campaign, a company with a valuation of $3B+. They currently have over 180K clients, some of them include Shopify, Square, Facebook, and Salesforce among others. Jason VandeBoom talks about how they got started and taking the action necessary to get the company off the ground.
Jason VandeBoom is the Founder & CEO of Active Campaign, a company with a valuation of $3B+. They currently have over 180K clients, some of them include Shopify, Square, Facebook, and Salesforce among others. Jason VandeBoom talks about how they got started and taking the action necessary to get the company off the ground.
The crew walks through Nick's anatomy of a trade in SQ today, which started as a call ratio spread + short put, and ended as a straddle at completely different strikes, with 5x the initial credit received.
Tune in to learn more with a live Q&A as well!
The crew walks through Nick's anatomy of a trade in SQ today, which started as a call ratio spread + short put, and ended as a straddle at completely different strikes, with 5x the initial credit received.
Tune in to learn more with a live Q&A as well!
In last Tuesday’s Market Measure, we discussed how much short options amplify losses when the underlying experiences drawdowns. Today, let’s look at how active management would have reduced per-trade losses in these cases. Join Tom and Tony as they discuss how much management saves you during a selloff.
In last Tuesday’s Market Measure, we discussed how much short options amplify losses when the underlying experiences drawdowns. Today, let’s look at how active management would have reduced per-trade losses in these cases. Join Tom and Tony as they discuss how much management saves you during a selloff.
The world has undergone massive changes as a result of Covid. We were forced to evolve as an accommodation to circumstances. Now that we more or less learned how to live with Covid, will the rate of change normalize?
The world has undergone massive changes as a result of Covid. We were forced to evolve as an accommodation to circumstances. Now that we more or less learned how to live with Covid, will the rate of change normalize?
As premium sellers, we like the positioning of collecting credits on entry and playing for high probability outcomes. However, we still want to be aware of just how efficient our positions might be, in terms of the premium they are collecting. To do this, we like to compare the credit collected on the trade relative to the buying power requirement to hold the position. Generally speaking, we always try to collect at least a Premium Efficiency of about 10% or more.
As premium sellers, we like the positioning of collecting credits on entry and playing for high probability outcomes. However, we still want to be aware of just how efficient our positions might be, in terms of the premium they are collecting. To do this, we like to compare the credit collected on the trade relative to the buying power requirement to hold the position. Generally speaking, we always try to collect at least a Premium Efficiency of about 10% or more.
Anton reviews a new product available on the platform: lean hogs /HE. With a new product that has virtually no relationship with any other futures product, we are able to integrate it into our short premium portfolio by using the liquid options market that is available.
Anton reviews a new product available on the platform: lean hogs /HE. With a new product that has virtually no relationship with any other futures product, we are able to integrate it into our short premium portfolio by using the liquid options market that is available.
Anton goes LIVE on YouTube to answer questions from tastynation. Want your question answered live? Tune in every weekday at 12 central time to ask your question on air.
Anton goes LIVE on YouTube to answer questions from tastynation. Want your question answered live? Tune in every weekday at 12 central time to ask your question on air.
When trading leveraged products that seek to replicate the performance of futures products, drag and drift come into play due to contango and backwardation in the futures products.
Tune in to learn more with a live Q&A as well!
When trading leveraged products that seek to replicate the performance of futures products, drag and drift come into play due to contango and backwardation in the futures products.
Tune in to learn more with a live Q&A as well!
Liz and Jenny open up alpha boost and take a look at bullish bearish and neutral trade ideas in GOOGL. They land on a neutral to bearish reverse big lizard in January.
Liz and Jenny open up alpha boost and take a look at bullish bearish and neutral trade ideas in GOOGL. They land on a neutral to bearish reverse big lizard in January.
It's the 11th anniversary of the LIZ & JNY show and the girls are celebrating. They take live viewer tweets with #LIZJNY and look at several trade ideas in Square.
It's the 11th anniversary of the LIZ & JNY show and the girls are celebrating. They take live viewer tweets with #LIZJNY and look at several trade ideas in Square.
Standard deviations provide context around typical fluctuations around daily returns or trade P/Ls that happen around 70% of the time. Comparing standard deviations of different option strategies or underlyings allows for a fair comparison of actual historical risk. Higher standard deviations mean higher risk. Be aware that outlier risk is not accounted for in standard deviations, and the only way to protect yourself from these is to stay small.
Standard deviations provide context around typical fluctuations around daily returns or trade P/Ls that happen around 70% of the time. Comparing standard deviations of different option strategies or underlyings allows for a fair comparison of actual historical risk. Higher standard deviations mean higher risk. Be aware that outlier risk is not accounted for in standard deviations, and the only way to protect yourself from these is to stay small.
The Two Envelopes Problem is a fun, brain teaser in the field of conditional probability and probability theory. And while working the solution from always switching to being indifferent to switching might seem like nothing more than a theoretical construct, it actually has direct implications to us as traders.
Specifically, if we think of option premium the same way we thought of “x” in the paradox, we quickly see the importance of processing situations conditional on the specifics of that scenario.
The Two Envelopes Problem is a fun, brain teaser in the field of conditional probability and probability theory. And while working the solution from always switching to being indifferent to switching might seem like nothing more than a theoretical construct, it actually has direct implications to us as traders.
Specifically, if we think of option premium the same way we thought of “x” in the paradox, we quickly see the importance of processing situations conditional on the specifics of that scenario.
On today's episode of Engineering the Trade, Jermal Chandler is joined by Julia Spina as they discuss some things they wish they knew before they started trading.
On today's episode of Engineering the Trade, Jermal Chandler is joined by Julia Spina as they discuss some things they wish they knew before they started trading.
Today, we’re live on YouTube to answer all of your questions! Some great ones that came in were:How does an Iron Fly stack up against an Iron Condor?When you’re tested on an Iron Condor, should you roll up the untested side?What about aggressively neutralizing delta on a Short Strangle before you get tested?
Today, we’re live on YouTube to answer all of your questions! Some great ones that came in were:How does an Iron Fly stack up against an Iron Condor?When you’re tested on an Iron Condor, should you roll up the untested side?What about aggressively neutralizing delta on a Short Strangle before you get tested?
Mike and Nick explain how you can adjust risk & max profit when rolling the short call component in a covered call out in time, or out in time and to a different strike
Mike and Nick explain how you can adjust risk & max profit when rolling the short call component in a covered call out in time, or out in time and to a different strike
Odds of a 50 bps rate hike increased after Powell’s speech. Job openings fell in October; ratio of openings to unemployed drops from 1.86 to 1.71. US Dollar is nearing the 200-day moving average. Leftovers - Super Mario Is The Best-Selling Video Game Character EVER
Odds of a 50 bps rate hike increased after Powell’s speech. Job openings fell in October; ratio of openings to unemployed drops from 1.86 to 1.71. US Dollar is nearing the 200-day moving average. Leftovers - Super Mario Is The Best-Selling Video Game Character EVER
Historically speaking, December is a very strong month for the market, as the “Santa Claus Rally” normally takes place to close out the calendar year. But given the significant move up in the market already over the last few weeks, should we expect the Santa Claus Rally again this year? Today, we’re live on YouTube to share some thoughts on that very question, and then take all of your questions!
Historically speaking, December is a very strong month for the market, as the “Santa Claus Rally” normally takes place to close out the calendar year. But given the significant move up in the market already over the last few weeks, should we expect the Santa Claus Rally again this year? Today, we’re live on YouTube to share some thoughts on that very question, and then take all of your questions!
Pete and James do a deep dive into the euro futures contracts (/6E) and micro contracts (/M6E). They breakdown the contract specs and how to understand the pricing conventions, given the more confusing tick sizes relative to other futures products. Next they look at some profit and loss examples and how the math breaks down for the contracts.
Pete and James do a deep dive into the euro futures contracts (/6E) and micro contracts (/M6E). They breakdown the contract specs and how to understand the pricing conventions, given the more confusing tick sizes relative to other futures products. Next they look at some profit and loss examples and how the math breaks down for the contracts.
Anton goes LIVE on YouTube to answer questions from tastynation. Want your question answered live? Tune in every weekday at 12 central time to ask your question on air.
Anton goes LIVE on YouTube to answer questions from tastynation. Want your question answered live? Tune in every weekday at 12 central time to ask your question on air.
Stop spending so much money on cloud computing. Despite the fact that over 90% of organizations now depend on cloud computing, the majority of businesses struggle to properly understand, manage and control their cloud cost spending. Tenacity's cloud cost management platform addresses the challenge of cloud visibility and predictability with a comprehensive suite of tools enabling users to budget, forecast, and take control of unwieldy AWS and Azure cloud spend in one place. With cloud savings recommendations and automated cloud commitment management, users are able to quickly identify usage patterns and cloud savings opportunities and detect over-provisioned or underutilized resources and anomalous spending across their AWS and Azure clouds.
Stop spending so much money on cloud computing. Despite the fact that over 90% of organizations now depend on cloud computing, the majority of businesses struggle to properly understand, manage and control their cloud cost spending. Tenacity's cloud cost management platform addresses the challenge of cloud visibility and predictability with a comprehensive suite of tools enabling users to budget, forecast, and take control of unwieldy AWS and Azure cloud spend in one place. With cloud savings recommendations and automated cloud commitment management, users are able to quickly identify usage patterns and cloud savings opportunities and detect over-provisioned or underutilized resources and anomalous spending across their AWS and Azure clouds.
The tasty crew shares their options trade ideas in MRVL, XOP and LVS!Tune in for a full breakdown and Q&A session as well!
The tasty crew shares their options trade ideas in MRVL, XOP and LVS!Tune in for a full breakdown and Q&A session as well!
Liz and Jenny talk about earnings calendars, look at a jade lizard, and sell puts in MRVL and RIVN.
Liz and Jenny talk about earnings calendars, look at a jade lizard, and sell puts in MRVL and RIVN.
Liz and Jenny place an iron condor in the "lean" hog futures, discuss driving tests, and address all their other futures trades.
Liz and Jenny place an iron condor in the "lean" hog futures, discuss driving tests, and address all their other futures trades.
As markets sell off quickly and rise quickly, we noticed an increase in the correlations between individual sectors and the overall market. When markets sold off, the correlation increase was the highest, but when market rallied, correlations also tightened since most up moves in a falling IV environment are very large.
As markets sell off quickly and rise quickly, we noticed an increase in the correlations between individual sectors and the overall market. When markets sold off, the correlation increase was the highest, but when market rallied, correlations also tightened since most up moves in a falling IV environment are very large.
Every financial instrument has a unique volatility profile, and certain underlyings are much more prone to large daily moves compared to others. How often do different stocks and ETFs experience daily returns of a large magnitude?
Join Tom and Tony as they compare the rates of large moves for different stocks and ETFs.
Every financial instrument has a unique volatility profile, and certain underlyings are much more prone to large daily moves compared to others. How often do different stocks and ETFs experience daily returns of a large magnitude?
Join Tom and Tony as they compare the rates of large moves for different stocks and ETFs.
Fresh on the heels of Powell's rate hike slowdown, Dylan Ratigan and Tom Sosnoff observe its impact on the market. With volatility down, equities up, and the US dollar getting whacked, what's ahead for the rest of the year? What about 2023?
Fresh on the heels of Powell's rate hike slowdown, Dylan Ratigan and Tom Sosnoff observe its impact on the market. With volatility down, equities up, and the US dollar getting whacked, what's ahead for the rest of the year? What about 2023?
Today Errol and Dr. Jim dive into the importance of Vega. With there being a handful of option greeks, Dr. Jim explains what's most important to pay attention to.
Today Errol and Dr. Jim dive into the importance of Vega. With there being a handful of option greeks, Dr. Jim explains what's most important to pay attention to.
Anton goes LIVE on YouTube to answer questions from all over the world real-time. Want your question answered live? Tune in every weekday at 12 central time to ask your question on air.
Anton goes LIVE on YouTube to answer questions from all over the world real-time. Want your question answered live? Tune in every weekday at 12 central time to ask your question on air.
Mike and Nick offer a full analysis of the top stocks to watch in December - CHPT, CHWY, KMX, and MRVL!
They also answer questions live from the YouTube chat!
Mike and Nick offer a full analysis of the top stocks to watch in December - CHPT, CHWY, KMX, and MRVL!
They also answer questions live from the YouTube chat!
It's Anton's first WYA! He joins Jenny as they look for trades based on 10 viewers' assumptions. They sell call spreads, jade lizards, and strangles.
It's Anton's first WYA! He joins Jenny as they look for trades based on 10 viewers' assumptions. They sell call spreads, jade lizards, and strangles.
Anton joins Jenny today to look for a trade in the newly listed Hog futures and they end the segment with a TLT jade lizard.
Anton joins Jenny today to look for a trade in the newly listed Hog futures and they end the segment with a TLT jade lizard.
Efficiency says that traders must accept risk if they want returns, but risk can be a complicated object. Conditional value at risk is a statistic that can help us evaluate trades or portfolios.
Today, Jacob joins Tom and Tony to unpack CVaR, from theoretical definition to practical interpretation.
Efficiency says that traders must accept risk if they want returns, but risk can be a complicated object. Conditional value at risk is a statistic that can help us evaluate trades or portfolios.
Today, Jacob joins Tom and Tony to unpack CVaR, from theoretical definition to practical interpretation.
Meet Carter! Carter is a 20 year old who picked up his interest in trading after listening to a friend on social media talk about the market. Over the course of just a few years, Carter took his account from $500 all the way to $30k. All that growth didn't happen without some obstacles along the way, though. Tune in as Carter walks through how he discovered tasty, what strategies he likes to employ now that he's learned from the "instant pain or gain" of OTM call options, and how he hopes to make trading part of his career.
Meet Carter! Carter is a 20 year old who picked up his interest in trading after listening to a friend on social media talk about the market. Over the course of just a few years, Carter took his account from $500 all the way to $30k. All that growth didn't happen without some obstacles along the way, though. Tune in as Carter walks through how he discovered tasty, what strategies he likes to employ now that he's learned from the "instant pain or gain" of OTM call options, and how he hopes to make trading part of his career.
This year the market has experienced tremendous volatility. With a decreasing success rate, traders are looking for further protection on top of their risk-defined strategies in order to increase ROC. One solution is to use stop loss mechanics.
Join Tom and Tony as they analyze the performance with and without using stop losses in put spreads.
This year the market has experienced tremendous volatility. With a decreasing success rate, traders are looking for further protection on top of their risk-defined strategies in order to increase ROC. One solution is to use stop loss mechanics.
Join Tom and Tony as they analyze the performance with and without using stop losses in put spreads.
Home prices declined for the third straight month. Market pricing in two consecutive 50 bps rate hikes. BILI is the latest Chinese stock to crush it on earnings. Leftovers - Largest Entertainment Streaming Companies
Home prices declined for the third straight month. Market pricing in two consecutive 50 bps rate hikes. BILI is the latest Chinese stock to crush it on earnings. Leftovers - Largest Entertainment Streaming Companies
Sometimes it can be challenging to generate negative delta in your portfolio, but both short call spreads and skewed short strangles do just that. With a short call spread, you have defined-risk with a stronger directional bias to the downside, whereas with a skewed short strangle, you have undefined-risk with a weaker directional bias to the downside.
Sometimes it can be challenging to generate negative delta in your portfolio, but both short call spreads and skewed short strangles do just that. With a short call spread, you have defined-risk with a stronger directional bias to the downside, whereas with a skewed short strangle, you have undefined-risk with a weaker directional bias to the downside.
Anton discusses the differences between common definitions of the metric: probably of profit (POP). Learn how to use POP correctly in your trading while identifying the pitfalls of more incorrect uses and definitions.
Anton discusses the differences between common definitions of the metric: probably of profit (POP). Learn how to use POP correctly in your trading while identifying the pitfalls of more incorrect uses and definitions.
One of Nick's favorite strategies consists of layering broken wing butterflies in the same expiration cycle for a stock or ETF, and adjusting them as the market moves.
The goal is to end up with multiple risk-free butterflies from a principal risk standpoint, and he walks you through his process today.
Tune in to learn more with a live Q&A session as well!
One of Nick's favorite strategies consists of layering broken wing butterflies in the same expiration cycle for a stock or ETF, and adjusting them as the market moves.
The goal is to end up with multiple risk-free butterflies from a principal risk standpoint, and he walks you through his process today.
Tune in to learn more with a live Q&A session as well!
After yesterday's spiked lizard in AMZN, the viewers want more. Liz and Jenny walk through a spiked lizard and talk about how they came up with the trade. They compare it to the jade & big lizard and discuss the pros and cons of each.
After yesterday's spiked lizard in AMZN, the viewers want more. Liz and Jenny walk through a spiked lizard and talk about how they came up with the trade. They compare it to the jade & big lizard and discuss the pros and cons of each.
Liz and Jenny take live tweets on trade ideas, discuss why they placed GTC orders to close trades and take profits, and look at new earnings trades.
Liz and Jenny take live tweets on trade ideas, discuss why they placed GTC orders to close trades and take profits, and look at new earnings trades.
Suzanne Muchin is a Clinical Associate Professor at the Kellogg School of Management, and is best known for teaching, “Selling Yourself and Your Ideas,” as well as teaching classes in entrepreneurship, innovation, and women’s leadership. Bonfire is a "talent development accelerator" created to ignite the power of women to change the rules of the modern workforce. With her co-founder, Rachel Bellow, co-hosts the popular podcast, The Big Payoff which focuses on career advice. Suzanne is a leader in Chicago’s entrepreneurship community, helping build the brands and social impact strategies for some of the city’s most well-known organizations and initiatives including 1871, MATTER, MHub, Impact Engine and P33.
Suzanne Muchin is a Clinical Associate Professor at the Kellogg School of Management, and is best known for teaching, “Selling Yourself and Your Ideas,” as well as teaching classes in entrepreneurship, innovation, and women’s leadership. Bonfire is a "talent development accelerator" created to ignite the power of women to change the rules of the modern workforce. With her co-founder, Rachel Bellow, co-hosts the popular podcast, The Big Payoff which focuses on career advice. Suzanne is a leader in Chicago’s entrepreneurship community, helping build the brands and social impact strategies for some of the city’s most well-known organizations and initiatives including 1871, MATTER, MHub, Impact Engine and P33.
Options are leveraged instruments, meaning that their P/Ls are amplified compared to their non-leveraged counterparts. Leverage is of particular concern when considering the downside outlier risks of short options.
Join Tom and Tony as they discuss how often short options amplify losses when the underlying experiences drawdowns.
Options are leveraged instruments, meaning that their P/Ls are amplified compared to their non-leveraged counterparts. Leverage is of particular concern when considering the downside outlier risks of short options.
Join Tom and Tony as they discuss how often short options amplify losses when the underlying experiences drawdowns.
Join Tom, Tony, and Victor as they discuss the question of reasonability. How do you advise a visionary that's gone off the rails? There's a thin line between what is reasonable and discrediting yourself beyond repair.
Join Tom, Tony, and Victor as they discuss the question of reasonability. How do you advise a visionary that's gone off the rails? There's a thin line between what is reasonable and discrediting yourself beyond repair.
Liquid options markets provide traders with freedom to decide how long to stay in a position. Longer dated options collect higher credits, while options closer to their expirations may turn more rapid profits. Today, Tom and Tony review the data to see how profits and risks compare between the first half and second of a short option position's life cycle.
Liquid options markets provide traders with freedom to decide how long to stay in a position. Longer dated options collect higher credits, while options closer to their expirations may turn more rapid profits. Today, Tom and Tony review the data to see how profits and risks compare between the first half and second of a short option position's life cycle.
- Cities facing COVID restriction represent 60% of China’s GDP.
- Black Friday online sales top $9B in new record; Cyber Monday might be $11.2B.
- Digital asset lender BlockFi files for bankruptcy.
- Leftovers - Countries With The Most Golf Courses In The World
- Cities facing COVID restriction represent 60% of China’s GDP.
- Black Friday online sales top $9B in new record; Cyber Monday might be $11.2B.
- Digital asset lender BlockFi files for bankruptcy.
- Leftovers - Countries With The Most Golf Courses In The World
Rolling is a big part of our adjustment process, but some rolls are credit rolls and some are debit rolls. While all Undefined-Risk Strategies can be rolled for a credit, only some Defined-Risk Strategies can be rolled for a credit. Effectively how ITM the strategy might be largely determines whether or not the strategy can be rolled for a credit.
Rolling is a big part of our adjustment process, but some rolls are credit rolls and some are debit rolls. While all Undefined-Risk Strategies can be rolled for a credit, only some Defined-Risk Strategies can be rolled for a credit. Effectively how ITM the strategy might be largely determines whether or not the strategy can be rolled for a credit.
After a holiday weekend, it's important to review the positions in our portfolio to see if there are any adjustments we can make - today Mike walks through every position in his portfolio and explains his plan. He also fields questions live from the YouTube chat!
After a holiday weekend, it's important to review the positions in our portfolio to see if there are any adjustments we can make - today Mike walks through every position in his portfolio and explains his plan. He also fields questions live from the YouTube chat!
Even slightly imperfect correlations between underlyings can result in significantly more diversification when comparing risk across portfolios.In this study, a portfolio that had one strangle in each SPY, IWM, and QQQ carried almost the same risk as the lowest volatility strangle across the study’s time period while having exposure in all three indexes.
Even slightly imperfect correlations between underlyings can result in significantly more diversification when comparing risk across portfolios.In this study, a portfolio that had one strangle in each SPY, IWM, and QQQ carried almost the same risk as the lowest volatility strangle across the study’s time period while having exposure in all three indexes.
As premium sellers, we constantly update our probabilities, conditional on the new information that has come in. This gives us an opportunity to reduce overall risk, widen break-even points, and trim directional exposure - all because of the flexibility given by a consistent emphasis on conditional probabilities.
As premium sellers, we constantly update our probabilities, conditional on the new information that has come in. This gives us an opportunity to reduce overall risk, widen break-even points, and trim directional exposure - all because of the flexibility given by a consistent emphasis on conditional probabilities.
This year, investors have become pessimistic due to high market volatility. However, this volatile market could’ve been great for option traders.
Join Tom and Tony as they explain the reasons and analyze the performance of selling options premium in 2022.
This year, investors have become pessimistic due to high market volatility. However, this volatile market could’ve been great for option traders.
Join Tom and Tony as they explain the reasons and analyze the performance of selling options premium in 2022.
Find out how one of the biggest tasty fans you will ever meet and is a huge proponent of Bootstrapping With Dylan Ratigan, started a real estate investment company that has raised close over $2B since their inception. Origin Investments is a leading real estate investment company with an experienced, institutionally-trained team. Origin’s long-term vision of reaching 2,000 investors was met in 2021 and a new vision is now being scoped. This year’s goal is to reach $2B in EUM. In 2021, Origin raised $500M. Michael Episcope is the Co-founder, and a former Merc trader who twice was named a top 100 trader in the world and consistently one of the top three traders by volume at the CME.
Find out how one of the biggest tasty fans you will ever meet and is a huge proponent of Bootstrapping With Dylan Ratigan, started a real estate investment company that has raised close over $2B since their inception. Origin Investments is a leading real estate investment company with an experienced, institutionally-trained team. Origin’s long-term vision of reaching 2,000 investors was met in 2021 and a new vision is now being scoped. This year’s goal is to reach $2B in EUM. In 2021, Origin raised $500M. Michael Episcope is the Co-founder, and a former Merc trader who twice was named a top 100 trader in the world and consistently one of the top three traders by volume at the CME.
Jermal Chandler opens up the floor for questions and scans the markets for new opportunities!
Jermal Chandler opens up the floor for questions and scans the markets for new opportunities!
Today, we’re live on YouTube taking all your questions, while we work through the reasons for managing our positions at 21 DTE. By rolling or closing our positions early, we’re able to more favorably alter our overall Greek exposure. Furthermore, the additional extrinsic value we’re able to collect from the roll serves to improve our trade basis and widen our break-even points.
Today, we’re live on YouTube taking all your questions, while we work through the reasons for managing our positions at 21 DTE. By rolling or closing our positions early, we’re able to more favorably alter our overall Greek exposure. Furthermore, the additional extrinsic value we’re able to collect from the roll serves to improve our trade basis and widen our break-even points.
By defining what your exit points are for both profit and loss, you can use the formula described earlier to generate an estimated POP that is not 50%! This gives you context on how likely your trade is to profit if you do it many times.
By defining what your exit points are for both profit and loss, you can use the formula described earlier to generate an estimated POP that is not 50%! This gives you context on how likely your trade is to profit if you do it many times.
Join Mike and Nick as they explain why they are avoiding specific strategies in JWN based on the implied volatility environment, where HPQ and DE show a completely different landscape for implied volatility contraction potential.
Tune in for a live Q&A session as well!
Join Mike and Nick as they explain why they are avoiding specific strategies in JWN based on the implied volatility environment, where HPQ and DE show a completely different landscape for implied volatility contraction potential.
Tune in for a live Q&A session as well!
Certain underlyings, such as SPY and UNG, have options that are skewed depending on where investors perceive the outlier risk. SPY, for example, has puts that are more expensive and further OTM than calls with the same delta because of fear to the downside. Join Tom and Tony as they discuss how the downside risk of short SPY strangles would change if SPY didn’t have skew.
Certain underlyings, such as SPY and UNG, have options that are skewed depending on where investors perceive the outlier risk. SPY, for example, has puts that are more expensive and further OTM than calls with the same delta because of fear to the downside. Join Tom and Tony as they discuss how the downside risk of short SPY strangles would change if SPY didn’t have skew.
Options volume explodes in November. Despite layoff headlines, job market remains tight. The 2- and 10-yr curve is the most inverted since 1981. Existing home sales crashing at the fastest pace since Lehman. Leftovers - Why Can’t We Be Friends.
Options volume explodes in November. Despite layoff headlines, job market remains tight. The 2- and 10-yr curve is the most inverted since 1981. Existing home sales crashing at the fastest pace since Lehman. Leftovers - Why Can’t We Be Friends.
Anton walks through the futures markets on this light trading week. Short term ratio spreads and low IV debit spreads are discussed in the /ES and /RTY since the expected moves for this week are among the lowest all year.
Anton walks through the futures markets on this light trading week. Short term ratio spreads and low IV debit spreads are discussed in the /ES and /RTY since the expected moves for this week are among the lowest all year.
Anton goes LIVE on YouTube to answer questions from tastytraders all over the world real-time. Want your question answered live? Tune in every weekday at 12 central time to ask your question on air.
Anton goes LIVE on YouTube to answer questions from tastytraders all over the world real-time. Want your question answered live? Tune in every weekday at 12 central time to ask your question on air.
The tasty crew explains why diagonal and calendar spread defensive management really depends on the short option's value, regardless of delta and expiration - if there's not a lot of premium, there's not much benefit to selling the option against the long option in a calendar or diagonal spread.
Tune in to learn more, with a focus on portfolio management as well!
The tasty crew explains why diagonal and calendar spread defensive management really depends on the short option's value, regardless of delta and expiration - if there's not a lot of premium, there's not much benefit to selling the option against the long option in a calendar or diagonal spread.
Tune in to learn more, with a focus on portfolio management as well!
Because short premium trades tend to be high POP trades by default, consecutive profits are far more likely than consecutive losses.
When consecutive negative P/Ls occur, the average P/L tended to be twice as large in magnitude as an average profitable trade. A long streak of consecutive losses, although unlikely, was coupled with larger than average negative P/Ls.
Because short premium trades tend to be high POP trades by default, consecutive profits are far more likely than consecutive losses.
When consecutive negative P/Ls occur, the average P/L tended to be twice as large in magnitude as an average profitable trade. A long streak of consecutive losses, although unlikely, was coupled with larger than average negative P/Ls.
Behavioral Economics is an interesting field of study that yields insights into how we make decisions. With the Possibility Effect, Certainty Effect, and Zero Effect all producing unique conclusions into how people generally weigh different outcomes. This can help explain the hesitancy in utilizing more undefined-risk strategies, despite their impressive results over time.
Behavioral Economics is an interesting field of study that yields insights into how we make decisions. With the Possibility Effect, Certainty Effect, and Zero Effect all producing unique conclusions into how people generally weigh different outcomes. This can help explain the hesitancy in utilizing more undefined-risk strategies, despite their impressive results over time.
Are you looking for stable stocks? Are you looking for volatile stocks? On today's episode of Engineering the Trade, Jermal Chandler is joined by Dr. Data as they analyze ways to find different types of stocks.
Are you looking for stable stocks? Are you looking for volatile stocks? On today's episode of Engineering the Trade, Jermal Chandler is joined by Dr. Data as they analyze ways to find different types of stocks.
We can think of skew in the following ways: What direction is the velocity of perceived risk? If there is a big move, it generally is going to be to the up/down side? What direction do most people want protection from? If fear arises in this underlying, which direction will it go?
We can think of skew in the following ways: What direction is the velocity of perceived risk? If there is a big move, it generally is going to be to the up/down side? What direction do most people want protection from? If fear arises in this underlying, which direction will it go?
The tasty crew explains how rolling out in time, closing scratches or small winners/losers, and defining undefined risk trades can all reduce the volatility of your portfolio when preparing for an extended leave.
They also field questions live from the YouTube chat!
The tasty crew explains how rolling out in time, closing scratches or small winners/losers, and defining undefined risk trades can all reduce the volatility of your portfolio when preparing for an extended leave.
They also field questions live from the YouTube chat!
Anton, Liz, and Jenny have an in-depth discussion about what IV environment is best for their particular trading style. They talk about how research is just a loose guideline for trading, not the end all be all. They start the show with an in-depth discussion on favorite casinos!
Anton, Liz, and Jenny have an in-depth discussion about what IV environment is best for their particular trading style. They talk about how research is just a loose guideline for trading, not the end all be all. They start the show with an in-depth discussion on favorite casinos!
Short premium traders are faced with a fundamental choice between using undefined risk and defined risk trades. Both BPR and CVaR provide insight into how much risk really lies in a given trade. Today, Tom and Tony explore the data to see how these two metrics stack up when considered whether to define risk or leave our options naked.
Short premium traders are faced with a fundamental choice between using undefined risk and defined risk trades. Both BPR and CVaR provide insight into how much risk really lies in a given trade. Today, Tom and Tony explore the data to see how these two metrics stack up when considered whether to define risk or leave our options naked.
How many tech layoffs have happened? Are we past peak inflation? Join Tom, Tony and Jermal as they discuss it all on This Week in Stocks.
How many tech layoffs have happened? Are we past peak inflation? Join Tom, Tony and Jermal as they discuss it all on This Week in Stocks.
Retail sales post biggest increase in 8 months. Biggest yearly decline in mortgage applications on record. Fed Bullard thinks rates should be minimum 5.25%. Leftovers - Biggest Opening Weekends For Films In 2022
Retail sales post biggest increase in 8 months. Biggest yearly decline in mortgage applications on record. Fed Bullard thinks rates should be minimum 5.25%. Leftovers - Biggest Opening Weekends For Films In 2022
With ES at 4,000 and NQ near 12,000, the recent bear market rally has seen a surge in prices. So naturally that begs the question, how much higher can it go? Is there still significant upside heading into the end-of-the-year? Today on YouTube Live, we offer up our thoughts on all of that, as well as answering as many questions from you all as we can!
With ES at 4,000 and NQ near 12,000, the recent bear market rally has seen a surge in prices. So naturally that begs the question, how much higher can it go? Is there still significant upside heading into the end-of-the-year? Today on YouTube Live, we offer up our thoughts on all of that, as well as answering as many questions from you all as we can!
When selling strangles, the key differences between larger and smaller deltas is the following: larger delta strangles have a lower win rate, lower P/L as % of the credit you receive, and less tail exposure. By choosing to manage early, you saw additional differences: win rate is more consistent across all deltas, your average trade P/L is lower, but your tail risk is much lower as well.
When selling strangles, the key differences between larger and smaller deltas is the following: larger delta strangles have a lower win rate, lower P/L as % of the credit you receive, and less tail exposure. By choosing to manage early, you saw additional differences: win rate is more consistent across all deltas, your average trade P/L is lower, but your tail risk is much lower as well.
When looking to trade options on a commodity or market index, what factors should a trader consider when selecting the underlying product class? Join Tom and Tony as they compare the options for two types of underlying products, ETFs and futures, that track the S&P 500.
When looking to trade options on a commodity or market index, what factors should a trader consider when selecting the underlying product class? Join Tom and Tony as they compare the options for two types of underlying products, ETFs and futures, that track the S&P 500.
If you’re a consumer of financial news, the crypto space appears toxic at the moment. However, crypto assets are still trading; they still have value. The space isn’t going away but its weaknesses have been exposed. For the firms that survived, this is an opportunity. For regulators, this demonstrates the need to get oversight in place. For investors, this could be the chance for crypto and the firms that support it to prove themselves. On this week’s episode, Tom and Dylan discuss what the FTX fallout means for crypto and what comes next.
If you’re a consumer of financial news, the crypto space appears toxic at the moment. However, crypto assets are still trading; they still have value. The space isn’t going away but its weaknesses have been exposed. For the firms that survived, this is an opportunity. For regulators, this demonstrates the need to get oversight in place. For investors, this could be the chance for crypto and the firms that support it to prove themselves. On this week’s episode, Tom and Dylan discuss what the FTX fallout means for crypto and what comes next.
"We diversify our futures products because of the following reasons: 1: Mitigate outlier risk on portfolio 2: Mitigate day-to-day risk (if correlations are low) 3: Have on both high and low risk positions 4: It is engaging and fun"
"We diversify our futures products because of the following reasons: 1: Mitigate outlier risk on portfolio 2: Mitigate day-to-day risk (if correlations are low) 3: Have on both high and low risk positions 4: It is engaging and fun"
NVDA and CSCO both report earnings after the close on November 16th, and the OTC live crew dives into the implied volatility differentials for the weekly cycle against the back-months. Tune in to learn more about strategy selection based on IV, with a live Q&A as well!
NVDA and CSCO both report earnings after the close on November 16th, and the OTC live crew dives into the implied volatility differentials for the weekly cycle against the back-months. Tune in to learn more about strategy selection based on IV, with a live Q&A as well!
The efficient market hypothesis says that all available information is (nearly) instantly incorporated into current market prices, yet significant binary events can result in dynamic price action lasting for days after the event. How can this be? Today, Jacob joins Tom and Tony to review a classic logic puzzle showing how even with perfect logicians responding perfectly to information, it can still take an extended period of time reach a stable end state.
The efficient market hypothesis says that all available information is (nearly) instantly incorporated into current market prices, yet significant binary events can result in dynamic price action lasting for days after the event. How can this be? Today, Jacob joins Tom and Tony to review a classic logic puzzle showing how even with perfect logicians responding perfectly to information, it can still take an extended period of time reach a stable end state.
PPI slides month over month to give stocks a lift. WMT says they have significantly improved inventory position. Do we need a December rate hike? Leftovers - Most Visited Museums Worldwide.
PPI slides month over month to give stocks a lift. WMT says they have significantly improved inventory position. Do we need a December rate hike? Leftovers - Most Visited Museums Worldwide.
While Vega might not be as flashy as a Delta or Theta, its impact when we are Short Vega can be clearly felt in the classic strategy - The Short Strangle. Being Short Vega means we are positioned for volatility contraction, and in a Short Strangle, a significant move in either direction can hurt your profit/loss. But moves to the upside are offset by the volatility contraction we’re wanting, while moves to the downside are exacerbated by volatility expansion.
While Vega might not be as flashy as a Delta or Theta, its impact when we are Short Vega can be clearly felt in the classic strategy - The Short Strangle. Being Short Vega means we are positioned for volatility contraction, and in a Short Strangle, a significant move in either direction can hurt your profit/loss. But moves to the upside are offset by the volatility contraction we’re wanting, while moves to the downside are exacerbated by volatility expansion.
Anton from the tastytrade Research Team reviews the pricing quotations of bond futures and shows how to interpret them.
Anton from the tastytrade Research Team reviews the pricing quotations of bond futures and shows how to interpret them.
Anton from the tastytrade Research Team goes live on the YouTube livestream to answer live questions from tastytraders from all over the world! Today's questions included aggressive management, how to interpret greeks, and how to hedge portfolios using options.
Anton from the tastytrade Research Team goes live on the YouTube livestream to answer live questions from tastytraders from all over the world! Today's questions included aggressive management, how to interpret greeks, and how to hedge portfolios using options.
When an option is in the money (ITM), it will carry intrinsic value equivalent to 100 shares of stock as long as it remains ITM. Any option value that exceeds the intrinsic value is extrinsic value.
Tune in to learn more about how to compute this, with an earnings preview in TGT, LOW, and TJX as well!
When an option is in the money (ITM), it will carry intrinsic value equivalent to 100 shares of stock as long as it remains ITM. Any option value that exceeds the intrinsic value is extrinsic value.
Tune in to learn more about how to compute this, with an earnings preview in TGT, LOW, and TJX as well!
Liz and Jenny address ADM and Taylor swift tickets! They had a reverse big lizard in ADM and got assigned on the stock due to the dividend. They also moved their stock replacement ZEBRA up in PINS. They end the show by selling puts in INTC.
Liz and Jenny address ADM and Taylor swift tickets! They had a reverse big lizard in ADM and got assigned on the stock due to the dividend. They also moved their stock replacement ZEBRA up in PINS. They end the show by selling puts in INTC.
Imagine using video game technology and cognitive neuroscience to capture the challenges of practicing medicine—revolutionizing the way physicians keep up-to-speed with diseases, rare and challenging cases, new medical devices, and drug therapies to stay sharp in their specialties. Now you don't have to imagine it. Enter Level Ex. Over 1 million doctors are playing video games to step up their "game" instead of practicing on patients. Emmy winning founder & CEO, Sam Glassenberg has spent his career leading teams and companies at the cutting edge of the video game industry. Before Level Ex, Sam was CEO of the top independent game publisher in Hollywood, acquired by Playtech (PTEC) in 2016.Learn More About Level Ex
Imagine using video game technology and cognitive neuroscience to capture the challenges of practicing medicine—revolutionizing the way physicians keep up-to-speed with diseases, rare and challenging cases, new medical devices, and drug therapies to stay sharp in their specialties. Now you don't have to imagine it. Enter Level Ex. Over 1 million doctors are playing video games to step up their "game" instead of practicing on patients. Emmy winning founder & CEO, Sam Glassenberg has spent his career leading teams and companies at the cutting edge of the video game industry. Before Level Ex, Sam was CEO of the top independent game publisher in Hollywood, acquired by Playtech (PTEC) in 2016.Learn More About Level Ex
Liz and Jenny decide to sell calls against their long stock in AEO. They look at short term SPY calendars and close the weekly SPY 400 call calendar they placed yesterday. They talk about using calendars as earnings trades and place one in Target.
Liz and Jenny decide to sell calls against their long stock in AEO. They look at short term SPY calendars and close the weekly SPY 400 call calendar they placed yesterday. They talk about using calendars as earnings trades and place one in Target.
Many variables in the options market change when IV is higher, such as the distances between option strikes and the underlying price. Changes in strike distances are particularly interesting for underlyings that exhibit skew.
Join Tom and Tony as they look at how call and put strikes scale with increasing IV for an underlying with significant skew, SPY.
Many variables in the options market change when IV is higher, such as the distances between option strikes and the underlying price. Changes in strike distances are particularly interesting for underlyings that exhibit skew.
Join Tom and Tony as they look at how call and put strikes scale with increasing IV for an underlying with significant skew, SPY.
Victor joins Tom and Tony to revisit the conversation on FTX. A couple weeks ago it was only smoke not fire at that time. Binance had a non-binding agreement that essentially fell apart in the weeks to come. It was a decent red flag to pay attention to. Victor askes Tom and Tony whether they believe this is a crypto problem, regulatory problem – or in this case, non-regulatory problem, or an individual problem. An individual that chose to make some very poor decisions.
Tom believes that it is 1,000 percent an individual problem. Tony agrees that it was an individual and company problem since there is no way the founder and CEO could have done this by himself. Victor wants to know if the narrative here is to push forward the need for aggressive crypto regulation, or rather, putting in place meaningful regulation to clarify assets and more importantly securities so this doesn’t happen again. Tom believes the problem was caused by an individual and his cronies.
Could this send out the message that the entirety of this space is nothing more than a Ponzi Scheme? Is that type of rhetoric throwing the baby out with the bath water? The debate continues on today’s episode.
Everyday, the U.S. Treasury publishes yield curve data based on the interest rate and market prices of differently dated bonds. This curve can reveal a great deal of information about the market's expectations for future behavior, but bonds can also be very confusing for new traders as price is inversely related to both yield and rates.
Today, Tom and Tony unpack all the inversions to clarify how tastytrader's can interpret the yield curve.
Everyday, the U.S. Treasury publishes yield curve data based on the interest rate and market prices of differently dated bonds. This curve can reveal a great deal of information about the market's expectations for future behavior, but bonds can also be very confusing for new traders as price is inversely related to both yield and rates.
Today, Tom and Tony unpack all the inversions to clarify how tastytrader's can interpret the yield curve.
Last week was the biggest ever for equity/index options volume. Chinese stocks & Covid zero mentality. Are layoff announcements trending up? Leftovers - The World’s Biggest Employers.
Last week was the biggest ever for equity/index options volume. Chinese stocks & Covid zero mentality. Are layoff announcements trending up? Leftovers - The World’s Biggest Employers.
While we always aim to stay small with our position sizing, what is actually “small” is always a relative term in relation to account size. Generally speaking, we like to keep defined-risk strategies to 1-5% of our accounts, and undefined-risk strategies to 3-10% of our accounts. However, it’s worth nothing that smaller accounts ($20k or less) have to accept larger position sizes, while larger accounts ($100k or more) can more easily shrink all position sizes.
While we always aim to stay small with our position sizing, what is actually “small” is always a relative term in relation to account size. Generally speaking, we like to keep defined-risk strategies to 1-5% of our accounts, and undefined-risk strategies to 3-10% of our accounts. However, it’s worth nothing that smaller accounts ($20k or less) have to accept larger position sizes, while larger accounts ($100k or more) can more easily shrink all position sizes.
Anton from the tastytrade Research Team discusses how diversification can be achieved with futures in several different ways. With market volatility declining, how can we put on more positions without taking on a lot more risk?
Anton from the tastytrade Research Team discusses how diversification can be achieved with futures in several different ways. With market volatility declining, how can we put on more positions without taking on a lot more risk?
Anton from the tastytrade Research Team joins the YouTube livestream to interact with tastynation LIVE and answer questions regarding the recent big move up in the stock market. Join live at 12pm central time to ask your question LIVE on air and get the Research Team's take.
Anton from the tastytrade Research Team joins the YouTube livestream to interact with tastynation LIVE and answer questions regarding the recent big move up in the stock market. Join live at 12pm central time to ask your question LIVE on air and get the Research Team's take.
When comparing an options spread trade, like an OTM put credit spread vs an ITM call debit spread on the same strikes, we can see that the risk profile is the same, but the former is a credit trade on entry and the latter is a debit trade on entry.
Tune in to learn more about how ITM spreads are generally lower liquidity options trades compared to OTM counterparts.
Live Q&A as well!
When comparing an options spread trade, like an OTM put credit spread vs an ITM call debit spread on the same strikes, we can see that the risk profile is the same, but the former is a credit trade on entry and the latter is a debit trade on entry.
Tune in to learn more about how ITM spreads are generally lower liquidity options trades compared to OTM counterparts.
Live Q&A as well!
Liz and Jenny take a look at the Alpha Boost email containing 8 trade ideas in XLK. Alpha boost sends bullish, bearish, and neutral trade ideas each and every week. Liz and Jenny discuss each trade and land on a neutral to bearish reverse big lizard.
Liz and Jenny take a look at the Alpha Boost email containing 8 trade ideas in XLK. Alpha boost sends bullish, bearish, and neutral trade ideas each and every week. Liz and Jenny discuss each trade and land on a neutral to bearish reverse big lizard.
Liz and Jenny talk about gifting stock. After Jenny's weekend of Christmas shopping, she wants to gift AEO stock. They pass on today's earnings, but look for trades in stocks that released earnings last week. They look at Roblox and Disney, and decide to go with January short puts in DIS.
Liz and Jenny talk about gifting stock. After Jenny's weekend of Christmas shopping, she wants to gift AEO stock. They pass on today's earnings, but look for trades in stocks that released earnings last week. They look at Roblox and Disney, and decide to go with January short puts in DIS.
Looking at beta weighted deltas is the way to make an apples-to-apples comparison of each position’s risk profile in your portfolio. The number of beta weighted deltas your portfolio has will tell you your directional exposure from the perspective of one underlying (usually SPY).
By knowing the beta weighted deltas in your portfolio, you are able to more precisely hedge away directional risk by buying/selling stock, options, or futures.
Looking at beta weighted deltas is the way to make an apples-to-apples comparison of each position’s risk profile in your portfolio. The number of beta weighted deltas your portfolio has will tell you your directional exposure from the perspective of one underlying (usually SPY).
By knowing the beta weighted deltas in your portfolio, you are able to more precisely hedge away directional risk by buying/selling stock, options, or futures.
Short premium in the world of options yields a number of benefits to us as tastytraders. But just like every market strategy, there is still risk that must be absorbed somewhere. And specifically, that risk for us is the huge outlier move, or even more precisely, the series of huge outlier moves, which is where Info-Gap Decision Theory comes into play.
Short premium in the world of options yields a number of benefits to us as tastytraders. But just like every market strategy, there is still risk that must be absorbed somewhere. And specifically, that risk for us is the huge outlier move, or even more precisely, the series of huge outlier moves, which is where Info-Gap Decision Theory comes into play.
Anton from the Research Team joins Tom and Tony live on air to review the market from last week as well as give an overview of what is expected this week!
Anton from the Research Team joins Tom and Tony live on air to review the market from last week as well as give an overview of what is expected this week!
On this episode of Engineering the Trade, Jermal Chandler is joined by special guest Dr. Russell Rhoads of EQ Derivatives to talk about his views on tech, oil and breaking down the recent VIX behavior.
On this episode of Engineering the Trade, Jermal Chandler is joined by special guest Dr. Russell Rhoads of EQ Derivatives to talk about his views on tech, oil and breaking down the recent VIX behavior.
Anton and Pete review the leverage factor inherent in futures trading and how to find it for yourself. They also review the insanely large rally following the CPI report on Thursday.
Anton and Pete review the leverage factor inherent in futures trading and how to find it for yourself. They also review the insanely large rally following the CPI report on Thursday.
Anton from the tastytrade Research team goes live on YouTube to answer LIVE questions from tastytraders all over the world in real-time. Want your question answered live? Tune in every weekday at 12 central time to ask your question on air.
Anton from the tastytrade Research team goes live on YouTube to answer LIVE questions from tastytraders all over the world in real-time. Want your question answered live? Tune in every weekday at 12 central time to ask your question on air.
Nick and Mike give a nuanced, in-depth market overview, then dive into box spreads while providing you with examples and things to consider. Come for the expert insight, stay for the party shirts.
Nick and Mike give a nuanced, in-depth market overview, then dive into box spreads while providing you with examples and things to consider. Come for the expert insight, stay for the party shirts.
Anton joins Liz and Jenny as they discuss short term trade ideas. They compare butterflies and calendars and discuss the profit potential and the differences between the two. They also compare debit spreads to long options when wanting a quick directiopnal trade.
Anton joins Liz and Jenny as they discuss short term trade ideas. They compare butterflies and calendars and discuss the profit potential and the differences between the two. They also compare debit spreads to long options when wanting a quick directiopnal trade.
Liz and Jenny take live tweets on trade ideas in SPX! They also make sure that they take as much risk out of their positions heading into the weekend. They also go over an old trader trick to price the forward price in VIX options.
Liz and Jenny take live tweets on trade ideas in SPX! They also make sure that they take as much risk out of their positions heading into the weekend. They also go over an old trader trick to price the forward price in VIX options.
Major U.S. elections are some of the most broadly significant binary events for traders. As premium sellers, tastytraders look to profit from uncertainty in the market, making these potentially very appealing trading opportunities. But how do elections differ from typical conditions? Today, Tom and Tony dive into the past to see how the market has behaved around elections.
Major U.S. elections are some of the most broadly significant binary events for traders. As premium sellers, tastytraders look to profit from uncertainty in the market, making these potentially very appealing trading opportunities. But how do elections differ from typical conditions? Today, Tom and Tony dive into the past to see how the market has behaved around elections.
It was a week filled with elections, lowered inflation and crypto volatility. Join Tom, Tony and Jermal as they discuss it all on This Week in Stocks.
It was a week filled with elections, lowered inflation and crypto volatility. Join Tom, Tony and Jermal as they discuss it all on This Week in Stocks.
CPI report sends stocks to the moon. Disney gets hammered on earnings. FTX $10B blowup. Midterm elections come and go.
CPI report sends stocks to the moon. Disney gets hammered on earnings. FTX $10B blowup. Midterm elections come and go.
Anton from the tastytrade Research Team discusses this insanely rare up day and answers questions from tastytraders all over the world. Questions regarding rolling positions and implied volatility were very popular today. Ask your LIVE questions every weekday at 12 pm central time on the tastytrade YouTube livestream!
Anton from the tastytrade Research Team discusses this insanely rare up day and answers questions from tastytraders all over the world. Questions regarding rolling positions and implied volatility were very popular today. Ask your LIVE questions every weekday at 12 pm central time on the tastytrade YouTube livestream!
After a market overview, Mike (VXX), Nick (XOP), and Katie (MPC) have an in-depth look at their personal trades, then go LIVE for a Q&A session.
After a market overview, Mike (VXX), Nick (XOP), and Katie (MPC) have an in-depth look at their personal trades, then go LIVE for a Q&A session.
Liz and Jenny discuss this crazy market and walk through their version of the buffer trade. They discuss the pros and cons of placing this type of trade and talk about what they are doing with their current positions.
Liz and Jenny discuss this crazy market and walk through their version of the buffer trade. They discuss the pros and cons of placing this type of trade and talk about what they are doing with their current positions.
Liz and Jenny take a look at all of their futures positions after this crazy CPI up move. They discuss the yield curve and their oil futures positions. They look at VIX futures and silver and gold.
Liz and Jenny take a look at all of their futures positions after this crazy CPI up move. They discuss the yield curve and their oil futures positions. They look at VIX futures and silver and gold.
The Finalis platform is currently facilitating more than 800 deals, and recently reached an active deal flow of $17B. Plus, everything will be in place, all the I's are dotted, and the T's are crossed. Plus, you don't need to spend a fortune on compliance, because Finalis is your compliance dept. They provide a digital back office for these investment bankers and allows them to facilitate high-value deals without the need for an extensive compliance team or legal department. One unique component of the Finalis story is its operation as a FINRA-compliant organization -- winning FINRA's trust as a tech platform was no easy task, but doing so has allowed Finalis customers to remain compliant without the overhead cost and legal implications of owning and operating a FINRA compliant organization themselves.Check out finalis.com
The Finalis platform is currently facilitating more than 800 deals, and recently reached an active deal flow of $17B. Plus, everything will be in place, all the I's are dotted, and the T's are crossed. Plus, you don't need to spend a fortune on compliance, because Finalis is your compliance dept. They provide a digital back office for these investment bankers and allows them to facilitate high-value deals without the need for an extensive compliance team or legal department. One unique component of the Finalis story is its operation as a FINRA-compliant organization -- winning FINRA's trust as a tech platform was no easy task, but doing so has allowed Finalis customers to remain compliant without the overhead cost and legal implications of owning and operating a FINRA compliant organization themselves.Check out finalis.com
To accurately gauge the scaling factor of our risk/reward when we are looking for an underlying to trade, we look no further than the underlying implied volatility adjusted by its price. Over time, the median P/L, best case P/L, and worst case P/L for a certain trade in any underlying should roughly scale with the implied volatility and price of the underlying's in question.
To accurately gauge the scaling factor of our risk/reward when we are looking for an underlying to trade, we look no further than the underlying implied volatility adjusted by its price. Over time, the median P/L, best case P/L, and worst case P/L for a certain trade in any underlying should roughly scale with the implied volatility and price of the underlying's in question.
We often discuss the importance of limiting the amount of portfolio capital allocated to short premium positions due to their unlikely tail risk. A consequence of this guideline is that certain underlyings or strategies may be off limits to people with certain account sizes. Join Tom and Tony as they discuss approximately how big an account should be, at minimum, to trade different types of short SPY options.
We often discuss the importance of limiting the amount of portfolio capital allocated to short premium positions due to their unlikely tail risk. A consequence of this guideline is that certain underlyings or strategies may be off limits to people with certain account sizes. Join Tom and Tony as they discuss approximately how big an account should be, at minimum, to trade different types of short SPY options.
Today Errol and Dr. Jim dive into zebra strategy and how it may be attractive for smaller accounts. A zero extrinsic back ratio is an aggressive strategy that acts like stock. And unlike most debit positions, a zebra does not have time working against the position because of the zero extrinsic value.
Today Errol and Dr. Jim dive into zebra strategy and how it may be attractive for smaller accounts. A zero extrinsic back ratio is an aggressive strategy that acts like stock. And unlike most debit positions, a zebra does not have time working against the position because of the zero extrinsic value.
When we trade options, we tend to think of IV as a certain metric that is inherent to options trading, but we seldom explain where it is derived from. Today, we will put an intuitive explanation to where IV comes from, what is it, and what it is not.
When we trade options, we tend to think of IV as a certain metric that is inherent to options trading, but we seldom explain where it is derived from. Today, we will put an intuitive explanation to where IV comes from, what is it, and what it is not.
Anton from the tastytrade Research Team goes LIVE on our YouTube livestream to answer questions from traders all over the world! Have a question you want to ask the Research Team directly? Tune into Research Specials LIVE every weekday at 12pm central time and ask your question LIVE!
Anton from the tastytrade Research Team goes LIVE on our YouTube livestream to answer questions from traders all over the world! Have a question you want to ask the Research Team directly? Tune into Research Specials LIVE every weekday at 12pm central time and ask your question LIVE!
Feeling distracted lately? We have gotten to the point where embracing the chaos seems normal. Fractures are emerging. Nothing seems to make sense anymore. Whether it’s Elon Musk’s latest antics with Twitter or the divisiveness of the midterm elections, the noise is deafening. On this week’s episode, Dylan, and Tom debate whether distractions have any bearing when it comes to the markets.
Feeling distracted lately? We have gotten to the point where embracing the chaos seems normal. Fractures are emerging. Nothing seems to make sense anymore. Whether it’s Elon Musk’s latest antics with Twitter or the divisiveness of the midterm elections, the noise is deafening. On this week’s episode, Dylan, and Tom debate whether distractions have any bearing when it comes to the markets.
With the market red across the board, we get that can leave you a little blue. Let Nick and Mike lift your spirits as they discuss trades ahead of the impending CPI report announcement.
With the market red across the board, we get that can leave you a little blue. Let Nick and Mike lift your spirits as they discuss trades ahead of the impending CPI report announcement.
Traders use the phrase "binary event" for any sudden development which can dramatically move the market as a whole or a specific underlying. But there is a mathematical difference between earnings reports and elections. Today, Jacob joins Tom and Tony to highlight a distinction between continuous and discrete binary events, as well as what to expect before and after.
Traders use the phrase "binary event" for any sudden development which can dramatically move the market as a whole or a specific underlying. But there is a mathematical difference between earnings reports and elections. Today, Jacob joins Tom and Tony to highlight a distinction between continuous and discrete binary events, as well as what to expect before and after.
It's What's Your Assumption Wednesday! Liz and Jenny look at 10 viewers' assumptions and come up with trade ideas. They place new trades in QQQ & IWM. They also look at natural gas, oil, and bonds. They look at jade lizards, iron condors, and spiked lizards.
It's What's Your Assumption Wednesday! Liz and Jenny look at 10 viewers' assumptions and come up with trade ideas. They place new trades in QQQ & IWM. They also look at natural gas, oil, and bonds. They look at jade lizards, iron condors, and spiked lizards.
This year’s significant market correction forced many traders to rethink their strategies, especially risk control. The stop loss is a traditional way to reduce tail risk. So is this an effective way to improve the performance overall and in market downturns?Join Tom and Tony as they analyze the performance with and without using stop losses.
This year’s significant market correction forced many traders to rethink their strategies, especially risk control. The stop loss is a traditional way to reduce tail risk. So is this an effective way to improve the performance overall and in market downturns?Join Tom and Tony as they analyze the performance with and without using stop losses.
Elections typically lead to sector dispersion. Equity volatility is exceptionally low for the current environment. Binance acquires distressed FTX after liquidity crunch. Leftovers - Do We Need More Voting Laws?
Elections typically lead to sector dispersion. Equity volatility is exceptionally low for the current environment. Binance acquires distressed FTX after liquidity crunch. Leftovers - Do We Need More Voting Laws?
Election Day has arrived, with the 2022 midterm elections being held today! One thing we know for sure is that the markets are sure to be choppy and volatile, as results come in and we get closer to the winners being declared.But on today’s YouTube Live, we offer up a few thoughts around how the market might react to a Blue Wave vs. a Red Wave.
Election Day has arrived, with the 2022 midterm elections being held today! One thing we know for sure is that the markets are sure to be choppy and volatile, as results come in and we get closer to the winners being declared.But on today’s YouTube Live, we offer up a few thoughts around how the market might react to a Blue Wave vs. a Red Wave.
You can now make most household furnishings and commercial products with expert precision and quickness. Inventables has ignited a revolution in digital fabrication. If you can think it, you can make. To do this, they make products that simplify the path from idea to finished product. Their software and computer controlled machines for tradespeople require no background or experience in technology or manufacturing. Inventables flagship products Easel, X-Carve, and X-Carve Pro are used by Carpenters, Cabinetmakers, and Craftspeople to make everything from cabinets to furniture. They offer everything necessary to dramatically simplify the workflow making it easier and more efficient than doing it by hand.Check out http://inventables.com/
You can now make most household furnishings and commercial products with expert precision and quickness. Inventables has ignited a revolution in digital fabrication. If you can think it, you can make. To do this, they make products that simplify the path from idea to finished product. Their software and computer controlled machines for tradespeople require no background or experience in technology or manufacturing. Inventables flagship products Easel, X-Carve, and X-Carve Pro are used by Carpenters, Cabinetmakers, and Craftspeople to make everything from cabinets to furniture. They offer everything necessary to dramatically simplify the workflow making it easier and more efficient than doing it by hand.Check out http://inventables.com/
Earnings trades are speculative, highly volatile trades intended to capitalize on the IV inflation often observed leading up to earnings. Earnings trades statistics vary significantly between underlyings, making it difficult to draw concrete conclusions regarding their past performance. However, we can apply a meta-analysis to earnings trades to potentially address this issue. Join Tom and Tony as they discuss a meta-analysis of earnings trades with mega-tech stocks.
Earnings trades are speculative, highly volatile trades intended to capitalize on the IV inflation often observed leading up to earnings. Earnings trades statistics vary significantly between underlyings, making it difficult to draw concrete conclusions regarding their past performance. However, we can apply a meta-analysis to earnings trades to potentially address this issue. Join Tom and Tony as they discuss a meta-analysis of earnings trades with mega-tech stocks.
Tom, Tony and Victor discuss Changpeng "CZ" Zhao, the founder of Binance and his decision to liquidate holdings in FTT, the original token from FTX derivatives exchange in the crypto space. Victor is intrigued by this move but unclear if CZ liquidated this position or not. What does this potentially mean for the opportunist trader? Tune in and find out what they decide on today's segment.
Tom, Tony and Victor discuss Changpeng "CZ" Zhao, the founder of Binance and his decision to liquidate holdings in FTT, the original token from FTX derivatives exchange in the crypto space. Victor is intrigued by this move but unclear if CZ liquidated this position or not. What does this potentially mean for the opportunist trader? Tune in and find out what they decide on today's segment.
For a short premium portfolio that can accept some undefined risk but does not have a strong directional assumption, short strangles are the natural choice of core positions. Deciding how far out of the money to place your strikes can have a dramatic effect on both profitability and risk. Today, Tom and Tony examine the data to see how different delta strangles have performed historically, so that we can be informed when deciding how to structure our upcoming trades.
For a short premium portfolio that can accept some undefined risk but does not have a strong directional assumption, short strangles are the natural choice of core positions. Deciding how far out of the money to place your strikes can have a dramatic effect on both profitability and risk. Today, Tom and Tony examine the data to see how different delta strangles have performed historically, so that we can be informed when deciding how to structure our upcoming trades.
Jobs report offers mixed picture for Fed. META stock up nearly 6% on layoff news. CVNA making a case for…deflation? Leftovers - What Time Do You Go To Sleep?
Jobs report offers mixed picture for Fed. META stock up nearly 6% on layoff news. CVNA making a case for…deflation? Leftovers - What Time Do You Go To Sleep?
There are times when closing a position earlier than anticipated can make a lot of sense. For example, you might have gained a profit on the position much earlier than expected, so you could consider closing the trade early. Or there could be some event-driven risks on the horizon that you want to avoid, so you could consider taking the position off here, too.
There are times when closing a position earlier than anticipated can make a lot of sense. For example, you might have gained a profit on the position much earlier than expected, so you could consider closing the trade early. Or there could be some event-driven risks on the horizon that you want to avoid, so you could consider taking the position off here, too.
Generally, the relationship between risk of pairs trades and correlation between the pairs is inversely related. The more positive the correlation, the lower the risk between the trade assuming one side is long and the other is short.
Generally, the relationship between risk of pairs trades and correlation between the pairs is inversely related. The more positive the correlation, the lower the risk between the trade assuming one side is long and the other is short.
Anton from the tastytrade Research Team goes LIVE on our tastytrade YouTube channel to answer live questions from tastytraders from all over the world. Ask your live questions every weekday at 12 central time.
Anton from the tastytrade Research Team goes LIVE on our tastytrade YouTube channel to answer live questions from tastytraders from all over the world. Ask your live questions every weekday at 12 central time.
The tastytrade crew break down long stock, zebras, collars, and zebra covered calls. Then they get into a Q&A session LIVE.
The tastytrade crew break down long stock, zebras, collars, and zebra covered calls. Then they get into a Q&A session LIVE.
Meet 18 year old Jacob! A native of Miami, Jacob is currently interning for a congressman on the financial services committee in Washington D.C. Jacob became interested in trading and economics in 9th grade, and he’s been hooked ever since! Tune in as he sits down with Tom Sosnoff to share his first trades in oil ETFs, why he’s since switched to small and mid-cap stocks, and how he’s managed to be up 3% in 2022's turbulent market.
Meet 18 year old Jacob! A native of Miami, Jacob is currently interning for a congressman on the financial services committee in Washington D.C. Jacob became interested in trading and economics in 9th grade, and he’s been hooked ever since! Tune in as he sits down with Tom Sosnoff to share his first trades in oil ETFs, why he’s since switched to small and mid-cap stocks, and how he’s managed to be up 3% in 2022's turbulent market.
Skew is never randomly placed in the stock market, and it tends to come from a combination of the future velocity of risk sentiment and also the result of market history. Historically, skew for current products is consistent with the magnitude of the product’s historical outlier direction.
Skew is never randomly placed in the stock market, and it tends to come from a combination of the future velocity of risk sentiment and also the result of market history. Historically, skew for current products is consistent with the magnitude of the product’s historical outlier direction.
One of the best things in the market is the objective nature of the markets. Specifically, Implied Volatilities, Expected Moves, and Probabilities all objectively lay out the statistical facts of a given scenario. But still, two different people can come to two very different conclusions, neither of which is better or worse than the other, but instead based largely on the utility function that is driving their decisions.Did you catch our recently on how to determine Delta/Theta levels for your portfolio?
One of the best things in the market is the objective nature of the markets. Specifically, Implied Volatilities, Expected Moves, and Probabilities all objectively lay out the statistical facts of a given scenario. But still, two different people can come to two very different conclusions, neither of which is better or worse than the other, but instead based largely on the utility function that is driving their decisions.Did you catch our recently on how to determine Delta/Theta levels for your portfolio?
For the last two elections, /ES ranges for the day after election day were not outliers.Implied volatility decreased significantly on the day after election day for the last two elections.
For the last two elections, /ES ranges for the day after election day were not outliers.Implied volatility decreased significantly on the day after election day for the last two elections.
The Non-Farm Payrolls number was released this morning, and it showed even more strength in the labor market. Surprisingly, the market rallied hard on the news, so it seems that good news might be good news again, even though many people think an even stronger labor market is only going to keep interest rates higher for longer.
The Non-Farm Payrolls number was released this morning, and it showed even more strength in the labor market. Surprisingly, the market rallied hard on the news, so it seems that good news might be good news again, even though many people think an even stronger labor market is only going to keep interest rates higher for longer.
Today, Anton and Pete go LIVE on the tastytrade network to look for opportunities and explain what is going on in the markets. Anton looks at trading opportunities in /GC (gold) and /ES (equities) to capture the added volatility before the election next week.
Today, Anton and Pete go LIVE on the tastytrade network to look for opportunities and explain what is going on in the markets. Anton looks at trading opportunities in /GC (gold) and /ES (equities) to capture the added volatility before the election next week.
Anton and Jacob from the tastytrade Research Team go LIVE on YouTube livestream to answer viewer questions. Today's questions were focused on trading the results of the election. The Research Team gives its take!
Anton and Jacob from the tastytrade Research Team go LIVE on YouTube livestream to answer viewer questions. Today's questions were focused on trading the results of the election. The Research Team gives its take!
When the market roughs you up and you’re not firing on all cylinders, what can you do? The tastytrade crew takes you through their thought processes on how to pick yourself back up. Then dive headfirst into a live Q&A session throughout the show!
When the market roughs you up and you’re not firing on all cylinders, what can you do? The tastytrade crew takes you through their thought processes on how to pick yourself back up. Then dive headfirst into a live Q&A session throughout the show!
Anton brings on a stellar traders instinct discussing for this Friday. He asks if and when we implement strategies that involve buying premium. The discussion includes, ITM options and the extrinsic value that you are giving up by buying options.
Anton brings on a stellar traders instinct discussing for this Friday. He asks if and when we implement strategies that involve buying premium. The discussion includes, ITM options and the extrinsic value that you are giving up by buying options.
Tastytraders rely on IVR to identify trading opportunities in liquid underlying's. The calculation for IVR depends strongly on the highest volatility for the underlying over the past year, which for equities means it is heavily skewed by the inflated volatility preceding earnings announcements. Today, Jacob joins Nicky and Mike to see what IVR looks like the other 8 months out of the year when we decide to ignore earnings.
Tastytraders rely on IVR to identify trading opportunities in liquid underlying's. The calculation for IVR depends strongly on the highest volatility for the underlying over the past year, which for equities means it is heavily skewed by the inflated volatility preceding earnings announcements. Today, Jacob joins Nicky and Mike to see what IVR looks like the other 8 months out of the year when we decide to ignore earnings.
The gambler’s fallacy can hurt short premium traders when we over-allocate our portfolio during a time where our research tells us we should allocate less. To avoid being over-allocated at the wrong time, follow sizing mechanics based on IV even if you have been winning significantly more than losing (or vice versa). This is easier said than done and is one of the hardest (if not the hardest) things to master as a trader.
The gambler’s fallacy can hurt short premium traders when we over-allocate our portfolio during a time where our research tells us we should allocate less. To avoid being over-allocated at the wrong time, follow sizing mechanics based on IV even if you have been winning significantly more than losing (or vice versa). This is easier said than done and is one of the hardest (if not the hardest) things to master as a trader.
The Fed just met yesterday to increase interest rates by the expected 75 bps. Is this bullish or bearish for stocks? On today’s YouTube Livestream, we discuss that, while answering as many questions as we can!
The Fed just met yesterday to increase interest rates by the expected 75 bps. Is this bullish or bearish for stocks? On today’s YouTube Livestream, we discuss that, while answering as many questions as we can!
Sitcom Worthy: Pivot or no pivot. The 54th decline of 1% or more the year; more than 2009. China stocks have been such a tease (tainted love). Leftovers - Virtual & Augmented Reality Still In Their Infancy
Sitcom Worthy: Pivot or no pivot. The 54th decline of 1% or more the year; more than 2009. China stocks have been such a tease (tainted love). Leftovers - Virtual & Augmented Reality Still In Their Infancy
It's been a busy week with both the Federal Reserve & the Bank of England raising interest rates. Pete and James discuss the moves in equities before discussing the impacts across currencies and capital shifting once again into the U.S. Dollar.
It's been a busy week with both the Federal Reserve & the Bank of England raising interest rates. Pete and James discuss the moves in equities before discussing the impacts across currencies and capital shifting once again into the U.S. Dollar.
Anton from the tastytrade Research Team goes LIVE on the YouTube to answer live viewer questions from tastytraders. Today's questions include conditional probabilities, differences between vertical spreads and buying stock, and many more! Join live at 12 noon every weekday to ask the Research Team your questions!
Anton from the tastytrade Research Team goes LIVE on the YouTube to answer live viewer questions from tastytraders. Today's questions include conditional probabilities, differences between vertical spreads and buying stock, and many more! Join live at 12 noon every weekday to ask the Research Team your questions!
Stick around and join Mike, Nick, and Katie as they discuss their trade ideas (SBUX, IWM, MCD), give you a full market breakdown and top it off with a Q&A session!
Stick around and join Mike, Nick, and Katie as they discuss their trade ideas (SBUX, IWM, MCD), give you a full market breakdown and top it off with a Q&A session!
The National Assessment of Educational Progress (NAEP), also known as “the Nation’s Report Card”, and administered by the U.S. Dept. of Education, released a full report for the first time since 2019, providing the most comprehensive picture, to date, of the COVID-19 pandemic’s impact on student educational achievement in the U.S.. The report is startling, showing a nationwide drop in scores for grades 4 and 8 in both mathematics and reading on a national, state, and district level. Education reporter, Mila Koumpilova, talks with Dylan about the "dumbing down" of America's students post pandemic, and what the solutions are going forward.
The National Assessment of Educational Progress (NAEP), also known as “the Nation’s Report Card”, and administered by the U.S. Dept. of Education, released a full report for the first time since 2019, providing the most comprehensive picture, to date, of the COVID-19 pandemic’s impact on student educational achievement in the U.S.. The report is startling, showing a nationwide drop in scores for grades 4 and 8 in both mathematics and reading on a national, state, and district level. Education reporter, Mila Koumpilova, talks with Dylan about the "dumbing down" of America's students post pandemic, and what the solutions are going forward.
Although rate spreads don’t make for a source for consistent long-term profits, they are one of the most in-play engagement trades in the market today. This segment puts context around the dollars-at-risk for rate products and rate spread trades on any given day. We computed the one standard deviation range of certainty (68%) that a single day’s P/L will be within that range.
Although rate spreads don’t make for a source for consistent long-term profits, they are one of the most in-play engagement trades in the market today. This segment puts context around the dollars-at-risk for rate products and rate spread trades on any given day. We computed the one standard deviation range of certainty (68%) that a single day’s P/L will be within that range.
Yield curve spreads can be used to trade the spreads between interest rates. These speculative trades can be used to capitalize on suspected changes in the shape of the yield curve and the anticipated strength of the economy.
Join Tom and Tony as they overview some commonly traded yield curve spreads, TUT and NOB spreads.
Yield curve spreads can be used to trade the spreads between interest rates. These speculative trades can be used to capitalize on suspected changes in the shape of the yield curve and the anticipated strength of the economy.
Join Tom and Tony as they overview some commonly traded yield curve spreads, TUT and NOB spreads.
Is the best course of action to blindly believe that markets are efficient by design and simply trust the process? In trading you make investment decisions based on all the information made available to you – and trust that stocks have been priced accordingly. However, could your decision still be based on nothing more than a guess? Does all that information reflect the true value of the stocks you are trading? Decisions can have many outcomes. Today, Tom and Dylan discuss if we should trust the motivations behind every decision.
Is the best course of action to blindly believe that markets are efficient by design and simply trust the process? In trading you make investment decisions based on all the information made available to you – and trust that stocks have been priced accordingly. However, could your decision still be based on nothing more than a guess? Does all that information reflect the true value of the stocks you are trading? Decisions can have many outcomes. Today, Tom and Dylan discuss if we should trust the motivations behind every decision.
Today Errol and Dr. Jim bring it back to the basics of Implied Volatility and IV rank. With the FOMC announcement it's important to take into account how implied volatility affects options prices, so that you can adjust expectations.
Today Errol and Dr. Jim bring it back to the basics of Implied Volatility and IV rank. With the FOMC announcement it's important to take into account how implied volatility affects options prices, so that you can adjust expectations.
With the market dripping red, the tastytrade crew dive into an earnings preview with a particular focus on EBAY, MGM. ROKU and QCOM.
With the market dripping red, the tastytrade crew dive into an earnings preview with a particular focus on EBAY, MGM. ROKU and QCOM.
It's What's Your Assumption Wednesday, Liz and Jenny come up with trade ideas based on 10 viewers' assumptions. They look at oil, treasuries, and natural gas. They talk about pairs trades and compare short puts to put spreads. They also get into a DDOG earnings trade.
It's What's Your Assumption Wednesday, Liz and Jenny come up with trade ideas based on 10 viewers' assumptions. They look at oil, treasuries, and natural gas. They talk about pairs trades and compare short puts to put spreads. They also get into a DDOG earnings trade.
Liz and Jenny celebrate Liz's birthday with our viewers live on Twitter. They also make a few adjustments to positions prior to earnings. They take some risk off in HOOD & PTON. They place a ROKU ratio spread and a RCL jade lizard.
Liz and Jenny celebrate Liz's birthday with our viewers live on Twitter. They also make a few adjustments to positions prior to earnings. They take some risk off in HOOD & PTON. They place a ROKU ratio spread and a RCL jade lizard.
Whenever the U.S. Treasury changes interest rates, the market shakes. Bonds in particular are sensitive to new rates being offered. Today, Jacob joins Tom and Tony to break down how bonds are priced and how they respond to changes in interest rates.
Whenever the U.S. Treasury changes interest rates, the market shakes. Bonds in particular are sensitive to new rates being offered. Today, Jacob joins Tom and Tony to break down how bonds are priced and how they respond to changes in interest rates.
The definition of a spread trade is broad and goes as follows:
“In finance a spread refers to the difference between two prices, rates or yields. Spreads are used for speculation and are generally designed to: limit directional risk, lower capital requirements, extend position duration, and reduce portfolio volatility.”
Tom and Tony dig deeper into what this means and the so many different ways spreads are used in trading. This is a valuable segment to watch for any experience level as it is a key concept that is used in all aspects of trading. Hope you enjoy!
The definition of a spread trade is broad and goes as follows:
“In finance a spread refers to the difference between two prices, rates or yields. Spreads are used for speculation and are generally designed to: limit directional risk, lower capital requirements, extend position duration, and reduce portfolio volatility.”
Tom and Tony dig deeper into what this means and the so many different ways spreads are used in trading. This is a valuable segment to watch for any experience level as it is a key concept that is used in all aspects of trading. Hope you enjoy!
Job openings unexpectedly rise; 2nd best month of 2022. Chinese stocks once again confusing the hell out of investors. C.R.E.A.M: JNJ acquires med-tech firm ABMD for $17.3B. Leftovers - Amazon Prime Day II Was A Dud
Job openings unexpectedly rise; 2nd best month of 2022. Chinese stocks once again confusing the hell out of investors. C.R.E.A.M: JNJ acquires med-tech firm ABMD for $17.3B. Leftovers - Amazon Prime Day II Was A Dud
A big part of what we do at tastytrade is making adjustments to our portfolios. Whether it be rolling the untested side of a strangle, or rolling a vertical spread out for a credit, we’re always looking for ways to reduce risk and improve break-even points.
Here is a simple 3-step process to begin the adjustment process for any position in your portfolio.
Check out this segment about the Proximity Effect.
A big part of what we do at tastytrade is making adjustments to our portfolios. Whether it be rolling the untested side of a strangle, or rolling a vertical spread out for a credit, we’re always looking for ways to reduce risk and improve break-even points.
Here is a simple 3-step process to begin the adjustment process for any position in your portfolio.
Check out this segment about the Proximity Effect.
On average, longer dated options priced the expected move slightly higher than the actual move when compared to shorter dated options. The 45-day timeframe carried decent expected move overstatement along with a reasonable average daily P/L when compared to longer and shorter durations.
On average, longer dated options priced the expected move slightly higher than the actual move when compared to shorter dated options. The 45-day timeframe carried decent expected move overstatement along with a reasonable average daily P/L when compared to longer and shorter durations.
Anton from the tastytrade Research Team is joined by the BAT himself to interact with tastytraders from all over the world on our YouTube livestream. What happens when old school know-how and modern day research collide? Watch every weekday LIVE at 12 pm central time.
Anton from the tastytrade Research Team is joined by the BAT himself to interact with tastytraders from all over the world on our YouTube livestream. What happens when old school know-how and modern day research collide? Watch every weekday LIVE at 12 pm central time.
A fine green morning turns into a murky, red afternoon for Nick and Mike. The team then walks you through some exciting new features on the tastyworks platform, then finish things up with a fresh Q&A session!
Check out the new features for yourself!
A fine green morning turns into a murky, red afternoon for Nick and Mike. The team then walks you through some exciting new features on the tastyworks platform, then finish things up with a fresh Q&A session!
Check out the new features for yourself!
Liz and Jenny want to add some short delta. They look at a delta buster in IWM, but decide they may prefer a reverse big lizard. They compare a reverse big lizard in IWM & SPY, and decide to go with IWM.
Liz and Jenny want to add some short delta. They look at a delta buster in IWM, but decide they may prefer a reverse big lizard. They compare a reverse big lizard in IWM & SPY, and decide to go with IWM.
Liz and Jenny take live tweets on earnings trades for today. They also take profits ahead of the Fed meeting tomorrow. Featured symbols include: SOFI, UBER, AMD CVS, GM.
Liz and Jenny take live tweets on earnings trades for today. They also take profits ahead of the Fed meeting tomorrow. Featured symbols include: SOFI, UBER, AMD CVS, GM.
Choosing a directional assumption can be a complicated task during regular market conditions, let alone during a bear market or selloff. What directional assumptions do the statistics support when the market is down? Today Join Tom and Tony as they compare how well bullish, bearish and neutral strategies have performed after a two-week period in a market downturn.
Choosing a directional assumption can be a complicated task during regular market conditions, let alone during a bear market or selloff. What directional assumptions do the statistics support when the market is down? Today Join Tom and Tony as they compare how well bullish, bearish and neutral strategies have performed after a two-week period in a market downturn.
Bonds are up, Tom has a smile. Everything is up. However, he may be smiling but he’s skeptical on how long it will last. Taking a Political line, Victor wants to talk about Biden versus Big Oil. In other words, the Windfall Profit Tax – is this the first step to actual fairness in the markets? President Biden gave a press conference discussing the profits of juggernaut oil companies such as Shell and Exxon, of the 5 energy titans they made $60 billion dollars in one quarter. Even with Russia out of the equation, oil companies are raking in the dough, regardless of sanctions and world events. Big Oil is not doing enough to provide relief to the consumer. What’s more, they made $100 billion in shareholder profits. This idea of a windfall profits tax. Is it optics due to the upcoming election or is it an actual move to help the consumer? These companies have cornered the market and taken advantage for decades. If they lost profits, it’s because they stayed in their lane and didn’t bother to innovate. Why should they? Tony and Victor are advocates for free markets and so is Tom, but Tom see’s the reasons behind holding the biggest offenders accountable for price gouging. Change must start somewhere even if it's baby steps even if it is the form of a windfall tax. It’s complicated. See what they decide on today’s Hear Me Out.
Bonds are up, Tom has a smile. Everything is up. However, he may be smiling but he’s skeptical on how long it will last. Taking a Political line, Victor wants to talk about Biden versus Big Oil. In other words, the Windfall Profit Tax – is this the first step to actual fairness in the markets? President Biden gave a press conference discussing the profits of juggernaut oil companies such as Shell and Exxon, of the 5 energy titans they made $60 billion dollars in one quarter. Even with Russia out of the equation, oil companies are raking in the dough, regardless of sanctions and world events. Big Oil is not doing enough to provide relief to the consumer. What’s more, they made $100 billion in shareholder profits. This idea of a windfall profits tax. Is it optics due to the upcoming election or is it an actual move to help the consumer? These companies have cornered the market and taken advantage for decades. If they lost profits, it’s because they stayed in their lane and didn’t bother to innovate. Why should they? Tony and Victor are advocates for free markets and so is Tom, but Tom see’s the reasons behind holding the biggest offenders accountable for price gouging. Change must start somewhere even if it's baby steps even if it is the form of a windfall tax. It’s complicated. See what they decide on today’s Hear Me Out.
In an efficient market, the fair price of calls determines the fair price of puts. This can be seen by constructing synthetic positions with identical payoffs, if these had different prices it would ben arbitrage! Today, Tom and Tony unpack what Put-Call parity is and what it means for our trading decisions.
In an efficient market, the fair price of calls determines the fair price of puts. This can be seen by constructing synthetic positions with identical payoffs, if these had different prices it would ben arbitrage! Today, Tom and Tony unpack what Put-Call parity is and what it means for our trading decisions.
More than 1 rate hike per day from global central banks (243 in 2022). Sentiment in gold, oil, copper and silver remain weak. Nearly half of all (S&P 500) tech stocks have fallen more than 30% YTD. Leftovers - What Kind Of Candy/Treats Will You Give Out For Halloween?
More than 1 rate hike per day from global central banks (243 in 2022). Sentiment in gold, oil, copper and silver remain weak. Nearly half of all (S&P 500) tech stocks have fallen more than 30% YTD. Leftovers - What Kind Of Candy/Treats Will You Give Out For Halloween?
Once we go inverted on a Short Strangle, we always have the option to un-invert back to a regular Short Strangle, but we have to be aware of our credits/debits. Since moving back to a regular Short Strangle will always cost a debit, it’s imperative that we figure out our net credit/debit on the whole position before we consider this move.Did you see our show on the Proximity Effect?
Once we go inverted on a Short Strangle, we always have the option to un-invert back to a regular Short Strangle, but we have to be aware of our credits/debits. Since moving back to a regular Short Strangle will always cost a debit, it’s imperative that we figure out our net credit/debit on the whole position before we consider this move.Did you see our show on the Proximity Effect?
Anton discusses how you can know a product's risk by using what you already know about a different product you already trade along with some quick math that is afforded to us by the efficiency of today's pricing and fair markets.
Anton discusses how you can know a product's risk by using what you already know about a different product you already trade along with some quick math that is afforded to us by the efficiency of today's pricing and fair markets.
Anton answers live questions from viewers like you on the topics of trading, investing, finance, options, and more! Ask your live questions every weekday at noon central time!
Anton answers live questions from viewers like you on the topics of trading, investing, finance, options, and more! Ask your live questions every weekday at noon central time!
Nick and Mike take you through move calculations, front weeklies and their instant pain or gains, liquidity, and dive into a live Q&A session.
Nick and Mike take you through move calculations, front weeklies and their instant pain or gains, liquidity, and dive into a live Q&A session.
Alpha Boost sends in 7 trade ideas in AAPL. Liz and Jenny are torn between an iron condor and a strangle, but decide on the defined risk iron condor since they already have risk on in QQQ. They also place an earnings calendar in UBER and close positions in NFLX, LUV, and /MCL.
Alpha Boost sends in 7 trade ideas in AAPL. Liz and Jenny are torn between an iron condor and a strangle, but decide on the defined risk iron condor since they already have risk on in QQQ. They also place an earnings calendar in UBER and close positions in NFLX, LUV, and /MCL.
Liz and Jenny take live tweets on trade ideas in $QQQ and place a few earnings trades for tonight. They also placed a $SHOP ZEBRA with a strangle around it. Earnings for tonight to watch are SPFI, PFE, and UBER.
Liz and Jenny take live tweets on trade ideas in $QQQ and place a few earnings trades for tonight. They also placed a $SHOP ZEBRA with a strangle around it. Earnings for tonight to watch are SPFI, PFE, and UBER.
On average, longer dated options priced the expected move slightly higher than the actual move when compared to shorter dated options. The 45-day timeframe carried a decent expected move overstatement along with a reasonable average daily P/L when compared to longer and shorter durations.
On average, longer dated options priced the expected move slightly higher than the actual move when compared to shorter dated options. The 45-day timeframe carried a decent expected move overstatement along with a reasonable average daily P/L when compared to longer and shorter durations.
While higher interest rates might hurt the traditional, passive investor, by putting downward pressure on both stock investments and bond investments, they should be welcomed by tastytraders looking for more opportunity via higher volatility. And as we see today, there is a mathematical link between rising interest rates and rising market volatility. As a result, the elevated volatility we’ve seen in 2022 has been a great trading environment for us at tastytrade.
Did you catch our recent segment on how to determine Delta/Theta levels for your portfolio?
While higher interest rates might hurt the traditional, passive investor, by putting downward pressure on both stock investments and bond investments, they should be welcomed by tastytraders looking for more opportunity via higher volatility. And as we see today, there is a mathematical link between rising interest rates and rising market volatility. As a result, the elevated volatility we’ve seen in 2022 has been a great trading environment for us at tastytrade.
Did you catch our recent segment on how to determine Delta/Theta levels for your portfolio?
Despite a lot of market volatility (realized), market IV has not gone up since January.The reason for this may be due to the spread between IV and HV already being rich coming into this year.
Despite a lot of market volatility (realized), market IV has not gone up since January.The reason for this may be due to the spread between IV and HV already being rich coming into this year.
On this episode of Engineering the Trade, Jermal Chandler is joined by special guest Brent Kochuba of SpotGamma to discuss the week that was for mega-tech earnings. Then, they give their take on how they are looking to trade the Fed meeting, mid-term elections and CPI report.
On this episode of Engineering the Trade, Jermal Chandler is joined by special guest Brent Kochuba of SpotGamma to discuss the week that was for mega-tech earnings. Then, they give their take on how they are looking to trade the Fed meeting, mid-term elections and CPI report.
Today, we’re live on YouTube, and we’re answering as many of your questions as we can! Some of the more notable ones that came in were:
What deltas do we like to choose on Ratio Spreads?
How do dividend payments affect option strategies?
Why are max profit and max loss missing from Calendar Spreads?
Today, we’re live on YouTube, and we’re answering as many of your questions as we can! Some of the more notable ones that came in were:
What deltas do we like to choose on Ratio Spreads?
How do dividend payments affect option strategies?
Why are max profit and max loss missing from Calendar Spreads?
Pete Mulmat joins Anton from the tastytrade Research Team to review the futures markets at the end of the week and to place a trade in currencies. Today's trade idea was a wide iron condor in the Australian Dollar futures (/6A).
Pete Mulmat joins Anton from the tastytrade Research Team to review the futures markets at the end of the week and to place a trade in currencies. Today's trade idea was a wide iron condor in the Australian Dollar futures (/6A).
Jacob Perlman joins Anton from the tastytrade Research Team to answer LIVE viewer questions on YouTube. Today's questions revolved around the nature of market unpredictability and efficiency. Both Anton and Jacob provide mathematically driven answers and clarify misconceptions around market efficiency.
Jacob Perlman joins Anton from the tastytrade Research Team to answer LIVE viewer questions on YouTube. Today's questions revolved around the nature of market unpredictability and efficiency. Both Anton and Jacob provide mathematically driven answers and clarify misconceptions around market efficiency.
Iron condors and double calendar spreads are both delta-neutral trades, but in different structural ways. The iron condor is more of a long-term trade, whereas the double calendar is more of a short-term IV crush strategy that plays into implied volatility much more efficiently. Tune in to learn more!
Iron condors and double calendar spreads are both delta-neutral trades, but in different structural ways. The iron condor is more of a long-term trade, whereas the double calendar is more of a short-term IV crush strategy that plays into implied volatility much more efficiently. Tune in to learn more!
Anton joins Liz and Jenny and brings up the question of research or instinct, what makes a better trader? They believe, thanks to the tastytrade research team, anyone can trade. Our trading mechanics help simplify the process and removes the years of experience traders used to need to become a retail trader.
Anton joins Liz and Jenny and brings up the question of research or instinct, what makes a better trader? They believe, thanks to the tastytrade research team, anyone can trade. Our trading mechanics help simplify the process and removes the years of experience traders used to need to become a retail trader.
Liz and Jenny take profits in INTC and place a new December trade. They also ratchet up the PINS ZEBRA and add a straddle to take in additional premium.
They also look at an after earnings Jade lizard in AMZN and a buffer trade in RIVN.
Liz and Jenny take profits in INTC and place a new December trade. They also ratchet up the PINS ZEBRA and add a straddle to take in additional premium.
They also look at an after earnings Jade lizard in AMZN and a buffer trade in RIVN.
Taking off risk comes at a cost... in this case, compared to a naked short 20∆ strangle in SPY, buying 10∆ wings to protect against adverse market moves cost 42% of the total P/L of the naked short strangle.
This does not make iron condors inefficient or unfair, but it does put context around how expensive it can be to define outlier risk over time.
Taking off risk comes at a cost... in this case, compared to a naked short 20∆ strangle in SPY, buying 10∆ wings to protect against adverse market moves cost 42% of the total P/L of the naked short strangle.
This does not make iron condors inefficient or unfair, but it does put context around how expensive it can be to define outlier risk over time.
Join Tom, Tony and Jermal as they discuss the aftermath of big tech earnings and more on This Week in Stocks.
Join Tom, Tony and Jermal as they discuss the aftermath of big tech earnings and more on This Week in Stocks.
Time for FB to give up on the METAverse. ECB raises rates 75 bps; no QT yet. Macro check-in: GDP, manufacturing PMI, new home sales & initial jobless claims. Leftovers - The World’s Aging Societies
Today, we’re live on YouTube, and we have both AAPL and AMZN earnings after the bell today. For AAPL, we’re bearish, so we look at a Skewed Strangle - skewed a bit to the downside to bring in some negative delta. For AMZN, we’re bullish, so we consider a simple Short Put to play the upside.
Today, we’re live on YouTube, and we have both AAPL and AMZN earnings after the bell today. For AAPL, we’re bearish, so we look at a Skewed Strangle - skewed a bit to the downside to bring in some negative delta. For AMZN, we’re bullish, so we consider a simple Short Put to play the upside.
Pete and James discuss today's market action, including the divergence in the equity indices due to large earnings moves over the last few days. Next, they take a look at a presentation on Silver Futures (/SI) and Micro-Silver Futures (/SIL). They breakdown the product specs and how to calculate profits and losses for these futures products.
Pete and James discuss today's market action, including the divergence in the equity indices due to large earnings moves over the last few days. Next, they take a look at a presentation on Silver Futures (/SI) and Micro-Silver Futures (/SIL). They breakdown the product specs and how to calculate profits and losses for these futures products.
Anton from the tastytrade Research Team goes LIVE on YouTube to answer viewer questions.
Today's questions included a lot of $META positions gone wrong after the insane earnings move this morning. Anton gives advice on how to not get burned on earnings trades in the future.
Anton from the tastytrade Research Team goes LIVE on YouTube to answer viewer questions.
Today's questions included a lot of $META positions gone wrong after the insane earnings move this morning. Anton gives advice on how to not get burned on earnings trades in the future.
The wild week of earnings continues! Mike tangles with AMZN, Nick goes with SPY and Katie brings the noise with SPOT. Come for the expert analysis, stay for Katie’s spider costume.
The wild week of earnings continues! Mike tangles with AMZN, Nick goes with SPY and Katie brings the noise with SPOT. Come for the expert analysis, stay for Katie’s spider costume.
Ocient was founded to develop an analytic data platform to enable interactive analytics on datasets of hundreds of billions of rows or more, computing up to trillions of rows per second. Data Lakes have become a popular approach for storing large volumes of structured data. Research shows that almost 3/4 of organizations are using both data lakes and warehouses. Target industries for Ocient include AdTech, Financial Services, Geospatial, Government, Operational IT, and Telecommunications. Existing customers include digital advertising company, Basis Technologies, AdTech provider, MediaMath, Network level intelligence provider, Gigamon, and many others. Dylan talks to Co-founder and CEO, Chris Gladwin, about the present and future of his remarkable company.Have a look at ocient.com!
Ocient was founded to develop an analytic data platform to enable interactive analytics on datasets of hundreds of billions of rows or more, computing up to trillions of rows per second. Data Lakes have become a popular approach for storing large volumes of structured data. Research shows that almost 3/4 of organizations are using both data lakes and warehouses. Target industries for Ocient include AdTech, Financial Services, Geospatial, Government, Operational IT, and Telecommunications. Existing customers include digital advertising company, Basis Technologies, AdTech provider, MediaMath, Network level intelligence provider, Gigamon, and many others. Dylan talks to Co-founder and CEO, Chris Gladwin, about the present and future of his remarkable company.Have a look at ocient.com!
Liz and Jenny manage their awful $META earnings strangle. META stock dropped over 2x its expected move for earnings. Liz and Jenny closed the short call and rolled the ITM short put to a November ZEBRA (Stock replacement) and added a call creating a synthetic cover call in $META. They then looked at their positions in $PINS, $INTC, $MCD and $SHOP.
Want to find out more about the ZEBRA (Zero Extrinsic Back RAtio)? Check out this Liz and Jenny tutorial.
Liz and Jenny manage their awful $META earnings strangle. META stock dropped over 2x its expected move for earnings. Liz and Jenny closed the short call and rolled the ITM short put to a November ZEBRA (Stock replacement) and added a call creating a synthetic cover call in $META. They then looked at their positions in $PINS, $INTC, $MCD and $SHOP.
Want to find out more about the ZEBRA (Zero Extrinsic Back RAtio)? Check out this Liz and Jenny tutorial.
With the recent upward movement in gold and silver, the underlying's have run through their covered calls. Liz and Jenny talk about covered call management once the call has been breached. They make adjustments to both positions and keep their bullish positions going in hopes of a continued move higher.
With the recent upward movement in gold and silver, the underlying's have run through their covered calls. Liz and Jenny talk about covered call management once the call has been breached. They make adjustments to both positions and keep their bullish positions going in hopes of a continued move higher.
Expected price range can give investors an idea of where an asset’s price is most likely to end up after a certain period of time, based on the sentiment of the market. Expected range can be calculated over any time frame, but estimates may capture future moves better over certain time frames compared to others.
Join Tom and Tony as they discuss how well the IVx estimate of expected range forecasts price movements over different time frames.
Expected price range can give investors an idea of where an asset’s price is most likely to end up after a certain period of time, based on the sentiment of the market. Expected range can be calculated over any time frame, but estimates may capture future moves better over certain time frames compared to others.
Join Tom and Tony as they discuss how well the IVx estimate of expected range forecasts price movements over different time frames.
With /MET and /MBT (Micro Bitcoin Futures) listing options, we need to assess if the options are tradable. Out of the two, /MBT seems to have the more tradable options since the credits on a strangle could reach $100 or more per contract, whereas /MET sees a credit of around $10 or less for the same strategy. Mind the liquidity on these options. Getting filled closer to mid-price would be necessary for these options to be considered liquid.
With /MET and /MBT (Micro Bitcoin Futures) listing options, we need to assess if the options are tradable. Out of the two, /MBT seems to have the more tradable options since the credits on a strangle could reach $100 or more per contract, whereas /MET sees a credit of around $10 or less for the same strategy. Mind the liquidity on these options. Getting filled closer to mid-price would be necessary for these options to be considered liquid.
The crypto winter has seen 60% or more of the value taken from the crypto markets, but it seems like we've finally got a relief rally over the past two days. With most cryptos up 10% or more in the past week, Eddie looks at these types of rallies historically. Does this mean we are heading higher and crypto winter is over? Or are we just experiencing a bear market rally?Join Eddie as he presents some research related to rallies!
The crypto winter has seen 60% or more of the value taken from the crypto markets, but it seems like we've finally got a relief rally over the past two days. With most cryptos up 10% or more in the past week, Eddie looks at these types of rallies historically. Does this mean we are heading higher and crypto winter is over? Or are we just experiencing a bear market rally?Join Eddie as he presents some research related to rallies!
Today Errol & Dr. Jim explains theta in the most simple way with just 3 sentences. Theta is one of the most important variables we as tasty traders focus on due to time being on our side.
Today Errol & Dr. Jim explains theta in the most simple way with just 3 sentences. Theta is one of the most important variables we as tasty traders focus on due to time being on our side.
Anton and Eddie from the tastytrade Research Team tackle the futures market in this final week of October to see what is causing this reversal to the upside in nearly all assets! We finish the show off with a potential trade idea in 30-year bond futures - /ZB.
Anton and Eddie from the tastytrade Research Team tackle the futures market in this final week of October to see what is causing this reversal to the upside in nearly all assets! We finish the show off with a potential trade idea in 30-year bond futures - /ZB.
Ask your question LIVE to the Research Team every weekday at noon central time on the tastytrade YouTube livestream.
Ask your question LIVE to the Research Team every weekday at noon central time on the tastytrade YouTube livestream.
Join Nick and Mike to see how they’ll be trading Meta, Caterpillar, McDonalds and Shopify. Stick around for a Q&A session as well!
Join Nick and Mike to see how they’ll be trading Meta, Caterpillar, McDonalds and Shopify. Stick around for a Q&A session as well!
Market makers "provide liquidity" by maintaining standing buy orders (bids) and sell orders (asks) for options up and down the option sheet. The difference between these two is the spread and is what holds retail investors back from the perfectly liquid markets assumed in financial models.
Today, Jacob joins Tom and Tony to go over the practical reasons to avoid underlying’s with large spreads and the advanced mathematical techniques that trading firms use to model prices when prices can't be known exactly.
Market makers "provide liquidity" by maintaining standing buy orders (bids) and sell orders (asks) for options up and down the option sheet. The difference between these two is the spread and is what holds retail investors back from the perfectly liquid markets assumed in financial models.
Today, Jacob joins Tom and Tony to go over the practical reasons to avoid underlying’s with large spreads and the advanced mathematical techniques that trading firms use to model prices when prices can't be known exactly.
International markets are important to many traders. So how do they perform this year as well as over the long term? Do they move together all the time? What about in a bull and bear market?
Join Tom and Tony as they explore what the correlations are between international ETFs and S&P 500 and how they react to different markets.
International markets are important to many traders. So how do they perform this year as well as over the long term? Do they move together all the time? What about in a bull and bear market?
Join Tom and Tony as they explore what the correlations are between international ETFs and S&P 500 and how they react to different markets.
Market rallies appear to be “weeding out” hedgers. Bonds attempt to find their footing. British pound gains as Sunak takes PM office. Leftovers - The Battle For Screen Time Between Parents & Kids
Market rallies appear to be “weeding out” hedgers. Bonds attempt to find their footing. British pound gains as Sunak takes PM office. Leftovers - The Battle For Screen Time Between Parents & Kids
Possibly the most classic adjustment across all of tastytrade is to roll the untested side - so what are we getting and what are we giving up when we do this? Generally speaking, rolling the untested side reduces your overall risk in the position, but it does expose you to a potential whipsaw, if the stock reverses back quickly. However, because our main priority with undefined-risk strategies is to reduce risk first, rolling the untested side when the time calls for it is our go-to move.
Possibly the most classic adjustment across all of tastytrade is to roll the untested side - so what are we getting and what are we giving up when we do this? Generally speaking, rolling the untested side reduces your overall risk in the position, but it does expose you to a potential whipsaw, if the stock reverses back quickly. However, because our main priority with undefined-risk strategies is to reduce risk first, rolling the untested side when the time calls for it is our go-to move.
When we trade futures, we are able to reduce buying power by three ways without sacrificing our position. Watch as we discuss how to manage this metric effectively in today’s episode of Splash into Futures.
When we trade futures, we are able to reduce buying power by three ways without sacrificing our position. Watch as we discuss how to manage this metric effectively in today’s episode of Splash into Futures.
Anton from the Tastytrade research team dives into the tastytrade YouTube live stream to answer questions from tastytraders across the world!
Anton from the Tastytrade research team dives into the tastytrade YouTube live stream to answer questions from tastytraders across the world!
It's said by the year 2050 every car will be driverless. Car accidents for the most part will be a thing of the past, which is great for the world, but what happens to the car insurance companies that are solely dependent on insurance premiums? History has shown us it's adapt or it's farewell. Message to the Car Insurance Companies: start adapting now or you'll be in the next group of "failure to innovate". A group, which in the past included Nokia, Kodak, Polaroid, Blockbuster, Xerox, and Blackberry, to name more than a few. Actually there are 100s and 100s of them. For whatever reasons they had, mostly fear and ego I would think, those companies are just a memory now. Peter Shankman is a man of the future, he consults and advises companies that are looking to stay ahead of the curve, even 30 years into the future. He talks to Dylan about all this and how having ADHD is a gift not a curse.Check out shankminds.com now!
It's said by the year 2050 every car will be driverless. Car accidents for the most part will be a thing of the past, which is great for the world, but what happens to the car insurance companies that are solely dependent on insurance premiums? History has shown us it's adapt or it's farewell. Message to the Car Insurance Companies: start adapting now or you'll be in the next group of "failure to innovate". A group, which in the past included Nokia, Kodak, Polaroid, Blockbuster, Xerox, and Blackberry, to name more than a few. Actually there are 100s and 100s of them. For whatever reasons they had, mostly fear and ego I would think, those companies are just a memory now. Peter Shankman is a man of the future, he consults and advises companies that are looking to stay ahead of the curve, even 30 years into the future. He talks to Dylan about all this and how having ADHD is a gift not a curse.Check out shankminds.com now!
Tune in to see how the OTC live crew will be trading Microsoft, Google and Spotify earnings today!
Live Q&A session as well!
Tune in to see how the OTC live crew will be trading Microsoft, Google and Spotify earnings today!
Live Q&A session as well!
Victor joins Tom and Tony from across the pond to discuss if the Midterm elections have any meaningful impact on the stock market. They discuss the Bad Trader Tour in NYC and how audience members kept coming up to Victor, asking him, "Where's Tony?" Perplexed, Tom replies, "No one asked me one thing about Tony." Victor has been doing a lot of reading into the markets and the Midterm election lately, the pre-election polls, and asks Tom and Tony, "Does the Midterm elections even matter to you, and does it affect your trade strategy at all?" Guess what their response is on today's segment.
Victor joins Tom and Tony from across the pond to discuss if the Midterm elections have any meaningful impact on the stock market. They discuss the Bad Trader Tour in NYC and how audience members kept coming up to Victor, asking him, "Where's Tony?" Perplexed, Tom replies, "No one asked me one thing about Tony." Victor has been doing a lot of reading into the markets and the Midterm election lately, the pre-election polls, and asks Tom and Tony, "Does the Midterm elections even matter to you, and does it affect your trade strategy at all?" Guess what their response is on today's segment.
The tail risk inherent to short premium means that the outlier losses of a strategy will always be much higher than the average risk/reward on a trade-by-trade basis. In order to combat this, positions must not be concentrated in any one strategy or underlying as to not get surprised when a single trade performs “worse than expected”.
The tail risk inherent to short premium means that the outlier losses of a strategy will always be much higher than the average risk/reward on a trade-by-trade basis. In order to combat this, positions must not be concentrated in any one strategy or underlying as to not get surprised when a single trade performs “worse than expected”.
The U.S. Treasury sets the rates for the most widely used bonds in the world. If issuing bonds with higher rates means the bonds are better, why does that drive down the price of bonds on the market? Today, Tom and Tony clear up this common confusion and highlight the inverse relationship between bond prices and rates.
The U.S. Treasury sets the rates for the most widely used bonds in the world. If issuing bonds with higher rates means the bonds are better, why does that drive down the price of bonds on the market? Today, Tom and Tony clear up this common confusion and highlight the inverse relationship between bond prices and rates.
In the past month, Bitcoin and Ethereum have traded sideways after the hype surrounding the merge subsided. Interestingly, many of the more popular alt coins have diverged from BTC and ETH, with coins like SOL and ADA heading lower and UNI and AAVE heading higher. This decoupling in the crypto market could provide opportunity for traders looking across the market.We've also seen the cross asset correlation of crypto, equities, the dollar, gold, treasuries, and volatility start to decrease. Combine this with substantially lower volatility in crypto and the lackluster price action, and there may be a chance for traders looking to take a shot.Join Ryan and Eddie as they discuss present opportunities in the crypto markets and the relevance of changing correlations!
In the past month, Bitcoin and Ethereum have traded sideways after the hype surrounding the merge subsided. Interestingly, many of the more popular alt coins have diverged from BTC and ETH, with coins like SOL and ADA heading lower and UNI and AAVE heading higher. This decoupling in the crypto market could provide opportunity for traders looking across the market.We've also seen the cross asset correlation of crypto, equities, the dollar, gold, treasuries, and volatility start to decrease. Combine this with substantially lower volatility in crypto and the lackluster price action, and there may be a chance for traders looking to take a shot.Join Ryan and Eddie as they discuss present opportunities in the crypto markets and the relevance of changing correlations!
Demand issue? TSLA cuts prices on EVs in China. Chinese stocks actually seem uninvestable now. BOJ intervened to drive the yen higher last week. Leftovers - The Battle For Screen Time Between Parents & Kids
Demand issue? TSLA cuts prices on EVs in China. Chinese stocks actually seem uninvestable now. BOJ intervened to drive the yen higher last week. Leftovers - The Battle For Screen Time Between Parents & Kids
Anton and Eddie from the tastytrade Research Team discuss the state of the futures market after weeks of volatile trading along with a trade idea in gold futures!
Anton and Eddie from the tastytrade Research Team discuss the state of the futures market after weeks of volatile trading along with a trade idea in gold futures!
This week, Amazon, Apple, Meta, Google, and Microsoft all report earnings. These five companies make up over 40% of the Nasdaq-100 and 20% of the S&P 500 in terms of weight. That means that these announcements have the potential to move the markets!
Options trading may be intimidating for those coming from the equity space or who may be completely new to the markets. Tune in to hear tips from Eddie on where to start!
This week, Amazon, Apple, Meta, Google, and Microsoft all report earnings. These five companies make up over 40% of the Nasdaq-100 and 20% of the S&P 500 in terms of weight. That means that these announcements have the potential to move the markets!
Options trading may be intimidating for those coming from the equity space or who may be completely new to the markets. Tune in to hear tips from Eddie on where to start!
Binary events like earnings bring in higher short-term implied volatility. Mike and Nick break down how we can capture this implied volatility with a long premium diagonal spread that can be set up with long theta and flat vega.
Binary events like earnings bring in higher short-term implied volatility. Mike and Nick break down how we can capture this implied volatility with a long premium diagonal spread that can be set up with long theta and flat vega.
For premium selling strategies, we can find the max return on capital (ROC) by dividing the initial credit by the buying power requirement (BPR).
Companies look at ROC to assess the efficiency in allocating capital to potentially profitable investments. The higher the potential ROC, the more likely a company is to invest in an opportunity.
What if we applied this strategy to options trading? Is there some threshold for ROC that makes trades seem more attractive?
Join Tom and Tony to find out!
For premium selling strategies, we can find the max return on capital (ROC) by dividing the initial credit by the buying power requirement (BPR).
Companies look at ROC to assess the efficiency in allocating capital to potentially profitable investments. The higher the potential ROC, the more likely a company is to invest in an opportunity.
What if we applied this strategy to options trading? Is there some threshold for ROC that makes trades seem more attractive?
Join Tom and Tony to find out!
Typically in the world of trading, the more traditional hedges are Long SPY Puts or Long VIX Calls. But when it comes to options, it’s important to recognize that every defined-risk strategy you utilize in your portfolio also contains a hedging mechanism. The long options you add to cover your short options certainly reduce risk, but they do so at a rather significant cost - not unlike any other type of hedge you might consider.
Did you catch our recent show on how to determine Delta/Theta levels for your portfolio?
Typically in the world of trading, the more traditional hedges are Long SPY Puts or Long VIX Calls. But when it comes to options, it’s important to recognize that every defined-risk strategy you utilize in your portfolio also contains a hedging mechanism. The long options you add to cover your short options certainly reduce risk, but they do so at a rather significant cost - not unlike any other type of hedge you might consider.
Did you catch our recent show on how to determine Delta/Theta levels for your portfolio?
Even with all of the volatility seen in the past month, the markets remain well within their expected move ranges. With earnings season really getting under way, can we expect the same thing for the next month?
Even with all of the volatility seen in the past month, the markets remain well within their expected move ranges. With earnings season really getting under way, can we expect the same thing for the next month?
On this episode of Engineering the Trade, Jermal Chandler is joined by Michael 'Dr. Data' Rechenthin as they answer trade ideas and queries from viewers.
On this episode of Engineering the Trade, Jermal Chandler is joined by Michael 'Dr. Data' Rechenthin as they answer trade ideas and queries from viewers.
Lookback is tastytrade's free options backtesting software that Dr. Data has created and continues to develop. Lookback allows traders to see how their strategies would have performed and how they might be expected to perform in the future.
By adding different management mechanics, such as managing early or taking profits early, traders can see the impact that would have on their portfolios. Join Eddie and Dr. Data as they explain this in further detail and talk about the new features coming to lookback!
Lookback is tastytrade's free options backtesting software that Dr. Data has created and continues to develop. Lookback allows traders to see how their strategies would have performed and how they might be expected to perform in the future.
By adding different management mechanics, such as managing early or taking profits early, traders can see the impact that would have on their portfolios. Join Eddie and Dr. Data as they explain this in further detail and talk about the new features coming to lookback!
Mike braves the elements alone in this solo edition of OTCL. Join him as he gives a market rundown and answers your questions LIVE!
Mike braves the elements alone in this solo edition of OTCL. Join him as he gives a market rundown and answers your questions LIVE!
With markets going lower and volatility staying well above historical averages, you are able to adjust commonly held options positions that result in a lower BPR, while maintaining a similar POP and/or credit received.
In this case, we started with a short 30 delta put in SPY and changed one facet to see how BPR changes while not making a big impact on the other variables.
With markets going lower and volatility staying well above historical averages, you are able to adjust commonly held options positions that result in a lower BPR, while maintaining a similar POP and/or credit received.
In this case, we started with a short 30 delta put in SPY and changed one facet to see how BPR changes while not making a big impact on the other variables.
Join Tom, Tony, and Jermal as they take a look at the market and what happened the last five days especially in earnings on today's segment.
Join Tom, Tony, and Jermal as they take a look at the market and what happened the last five days especially in earnings on today's segment.
TSLA acknowledges it isn’t immune to economic headwinds. Existing home sales crash to 8-year lows; eighth straight monthly drop. Market increasingly sees a 75 bps rate hike for December. Leftovers - Does ESG extend to outer space.
TSLA acknowledges it isn’t immune to economic headwinds. Existing home sales crash to 8-year lows; eighth straight monthly drop. Market increasingly sees a 75 bps rate hike for December. Leftovers - Does ESG extend to outer space.
Today, we’re live on YouTube answering as many questions as we can, but first, we analyze our NFLX, PG, and TSLA Earnings Trades. A few of the more notable questions that came in:What is Gamma Scalping and Reverse Gamma Scalping?Should bonds have a negative drift?How to trade a $1,000 account?
Today, we’re live on YouTube answering as many questions as we can, but first, we analyze our NFLX, PG, and TSLA Earnings Trades. A few of the more notable questions that came in:What is Gamma Scalping and Reverse Gamma Scalping?Should bonds have a negative drift?How to trade a $1,000 account?
Questions for today’s Research Specials LIVE include the concepts of options and derivatives as well as PNL calculations on call spreads.
Questions for today’s Research Specials LIVE include the concepts of options and derivatives as well as PNL calculations on call spreads.
The trio warms you up with a market rundown, then dives deep with three of their most compelling trade ideas. Mike’s cruising with Tesla, Nick goes with Google, while Katie has a gas with her trade idea!
The trio warms you up with a market rundown, then dives deep with three of their most compelling trade ideas. Mike’s cruising with Tesla, Nick goes with Google, while Katie has a gas with her trade idea!
It's expiration week, so the small exchange products must be rolled. Liz and Jenny roll the October /S2Y & /S10Y out to November. They also get back into micro-crude oil with a December strangle.
It's expiration week, so the small exchange products must be rolled. Liz and Jenny roll the October /S2Y & /S10Y out to November. They also get back into micro-crude oil with a December strangle.
Although Healthcare Innovation has made tremendous strides in the past ten years, it still has a long way to go. One of the largest healthcare startup incubators in world is in Chicago. MATTER opened in February 2015 and nurtures entrepreneurs and innovators building next-generation health IT, medical device, diagnostic and biopharma technologies. MATTER has worked with more than 750 healthcare technology ventures and they partner with dozens of industry-leading companies, health systems, and universities. They provide startups access to the MATTER Expert Clinic — a network of more than 350 vetted industry experts — through workshops, one-on-one mentorship and team-based guidance. Dylan talks to Steven Collens, CEO of MATTER about the company and the current state of healthcare in the U.S.Check out matter.health!
Although Healthcare Innovation has made tremendous strides in the past ten years, it still has a long way to go. One of the largest healthcare startup incubators in world is in Chicago. MATTER opened in February 2015 and nurtures entrepreneurs and innovators building next-generation health IT, medical device, diagnostic and biopharma technologies. MATTER has worked with more than 750 healthcare technology ventures and they partner with dozens of industry-leading companies, health systems, and universities. They provide startups access to the MATTER Expert Clinic — a network of more than 350 vetted industry experts — through workshops, one-on-one mentorship and team-based guidance. Dylan talks to Steven Collens, CEO of MATTER about the company and the current state of healthcare in the U.S.Check out matter.health!
The 2-year and 10-year Treasury yields have been in conversation for much of this year, with the 2-year having been greater than the 10-year for 40% of the year so far.
This year, we’ve also seen the major indices trade lower by 20% or more.
Is this just a coincidence? Or is there something else there? Is there a relationship between the yield curve being inverted and the direction of the market?
Join Tom and Tony to find out!
The 2-year and 10-year Treasury yields have been in conversation for much of this year, with the 2-year having been greater than the 10-year for 40% of the year so far.
This year, we’ve also seen the major indices trade lower by 20% or more.
Is this just a coincidence? Or is there something else there? Is there a relationship between the yield curve being inverted and the direction of the market?
Join Tom and Tony to find out!
The Efficient Market Hypothesis has been a prevailing theory in financial economics for decades. While the EMH provides a solid foundation for trading, including the tastytrade style of trading, the EMH remains an unprovable and controversial market theory. Today let’s discuss one possible alternative to the EMH, the Adaptive Market Hypothesis.
If you have requests for any topics, reach out to Julia (@FinancePhoton) or Eddie (@ERajcevic11) on Twitter! You can also submit ideas through this form: https://www.tastytrade.com/alpha-bytes-topics.
The Efficient Market Hypothesis has been a prevailing theory in financial economics for decades. While the EMH provides a solid foundation for trading, including the tastytrade style of trading, the EMH remains an unprovable and controversial market theory. Today let’s discuss one possible alternative to the EMH, the Adaptive Market Hypothesis.
If you have requests for any topics, reach out to Julia (@FinancePhoton) or Eddie (@ERajcevic11) on Twitter! You can also submit ideas through this form: https://www.tastytrade.com/alpha-bytes-topics.
Polygon network exists to tackle one of Ethereum's main issues, which is scalability. By creating side chains to complete operations off Ethereum's main network, Polygon can greatly improve the transactional throughput by orders of magnitude.Join Eddie as he explains Polygon network and its native token, MATIC!
Polygon network exists to tackle one of Ethereum's main issues, which is scalability. By creating side chains to complete operations off Ethereum's main network, Polygon can greatly improve the transactional throughput by orders of magnitude.Join Eddie as he explains Polygon network and its native token, MATIC!
Remember the 1987 market crash? Some of you do, but many don't because they probably weren't even born yet. In those days, if you were out and about, you probably didn't know until the evening news broadcast – no cell or smartphones and no 24-hour access to news touting the latest financial and economic woes. Today is very different. Anyone can change the day's narrative, be it politicians, Kanye West, or Elon Musk. Is that a good thing? Because ethically speaking, especially from a journalist's standpoint, where fact-checking is a must, it erodes information and adds to audience distrust. Is 24-hour access to news feeds keeping us informed, or is it overkill, desensitizing us to the worst atrocities being reported? Tom and Dylan discuss the implications of misinformation on today's Truth or Skepticism.
Remember the 1987 market crash? Some of you do, but many don't because they probably weren't even born yet. In those days, if you were out and about, you probably didn't know until the evening news broadcast – no cell or smartphones and no 24-hour access to news touting the latest financial and economic woes. Today is very different. Anyone can change the day's narrative, be it politicians, Kanye West, or Elon Musk. Is that a good thing? Because ethically speaking, especially from a journalist's standpoint, where fact-checking is a must, it erodes information and adds to audience distrust. Is 24-hour access to news feeds keeping us informed, or is it overkill, desensitizing us to the worst atrocities being reported? Tom and Dylan discuss the implications of misinformation on today's Truth or Skepticism.
Anton from the tastytrade Research Team walks you through three examples of how futures traders can save on buying power in the current market environment.
Anton from the tastytrade Research Team walks you through three examples of how futures traders can save on buying power in the current market environment.
Anton from the tastytrade Research Team goes LIVE on YouTube to answer questions from tastytraders. Today's questions revolve around market unpredictability by asking the counterfactual questions of "if this economic event happened differently, how different would the outcome be?"
Anton from the tastytrade Research Team goes LIVE on YouTube to answer questions from tastytraders. Today's questions revolve around market unpredictability by asking the counterfactual questions of "if this economic event happened differently, how different would the outcome be?"
Nick and Mike set their sights on implied volatility crush, with a particular focus on Tesla, Alcoa and IBM.
Nick and Mike set their sights on implied volatility crush, with a particular focus on Tesla, Alcoa and IBM.
Understanding correlation is key to structuring an investment portfolio. Because when you add up uncorrelated things, the unpredictability of the sum is less than that of the parts. Today, Jacob joins Tom and Tony to go over some of the finer points regarding correlation, discussing common errors that are made when assuming transitivity, and when it's not an error after all.
Understanding correlation is key to structuring an investment portfolio. Because when you add up uncorrelated things, the unpredictability of the sum is less than that of the parts. Today, Jacob joins Tom and Tony to go over some of the finer points regarding correlation, discussing common errors that are made when assuming transitivity, and when it's not an error after all.
Weekly options sound appealing because the premium depreciates much faster in the last days of the expiration cycle. In a high IV market like this year, it becomes even more attractive.
Join Tom and Tony as they analyze the performance of weekly options.
Weekly options sound appealing because the premium depreciates much faster in the last days of the expiration cycle. In a high IV market like this year, it becomes even more attractive.
Join Tom and Tony as they analyze the performance of weekly options.
Bank earnings have been better than expected. Bitcoin’s price swings are now down below DJIA realized volatility. Bond yields have risen 11 straight weeks; longest since 1978. Leftovers - Where does Hurricane Ian rank?
Bank earnings have been better than expected. Bitcoin’s price swings are now down below DJIA realized volatility. Bond yields have risen 11 straight weeks; longest since 1978. Leftovers - Where does Hurricane Ian rank?
Today, we’re live on YouTube answering as many questions as we can, and we also put on earnings trades in NFLX, TSLA, and PG.
For NFLX, we added a bearish Short Call Spread.
For TSLA, we played it neutral with a $10 Wide Iron Condor.
For PG, we played a bullish bias with a simple Short Put.
Today, we’re live on YouTube answering as many questions as we can, and we also put on earnings trades in NFLX, TSLA, and PG.
For NFLX, we added a bearish Short Call Spread.
For TSLA, we played it neutral with a $10 Wide Iron Condor.
For PG, we played a bullish bias with a simple Short Put.
Although we have seen a clear general uptrend in the US dollar and a downtrend in equities and bonds, we cannot conclude a long-term, daily, statistical relationship between either asset.
Even though equities and the dollar had a slight inverse correlation in the last three months, looking at the history of three month correlations, it seems like this moment is statistically insignificant compared to long term averages.
Although we have seen a clear general uptrend in the US dollar and a downtrend in equities and bonds, we cannot conclude a long-term, daily, statistical relationship between either asset.
Even though equities and the dollar had a slight inverse correlation in the last three months, looking at the history of three month correlations, it seems like this moment is statistically insignificant compared to long term averages.
Anton from the tastytrade Research Team goes LIVE on our YouTube livestream to engage with tastynation on questions about all things trading! Today's questions revolve around how to deal with whipsaws after managing positions by rolling the untested side closer to at-the-money.
Anton from the tastytrade Research Team goes LIVE on our YouTube livestream to engage with tastynation on questions about all things trading! Today's questions revolve around how to deal with whipsaws after managing positions by rolling the untested side closer to at-the-money.
Nick and Mike cover current market standings, go in-depth on inversion, touch on put-call parity, and discuss ways to get further out on the distribution curve. You don’t want to miss this one!
Nick and Mike cover current market standings, go in-depth on inversion, touch on put-call parity, and discuss ways to get further out on the distribution curve. You don’t want to miss this one!
Two "Titans of Industry" talk about the 2022 job market and beyond, including what sectors will need employees for decades to come. Yes, you read that correctly, decades to come. Also, find out what sectors are having trouble finding people. There are shortages in Education, Healthcare, Manufacturing, and Professional and Business Services, just to name a few. Howard Tullman has invested and started several dozen companies and is on the board of many of them. Thad Wong, is the Co-founder of @properties / Christie's International Real Estate. They discuss the jobs market & unemployment in the U.S. with Dylan Ratigan. You don't want to miss this two for one special!Learn more about @properties now!
Two "Titans of Industry" talk about the 2022 job market and beyond, including what sectors will need employees for decades to come. Yes, you read that correctly, decades to come. Also, find out what sectors are having trouble finding people. There are shortages in Education, Healthcare, Manufacturing, and Professional and Business Services, just to name a few. Howard Tullman has invested and started several dozen companies and is on the board of many of them. Thad Wong, is the Co-founder of @properties / Christie's International Real Estate. They discuss the jobs market & unemployment in the U.S. with Dylan Ratigan. You don't want to miss this two for one special!Learn more about @properties now!
Liz and Jenny put their own spin on this market measures. They discuss how they would look at the takeaways for these 4 bullish strategies. Their findings might surprise you.
Liz and Jenny put their own spin on this market measures. They discuss how they would look at the takeaways for these 4 bullish strategies. Their findings might surprise you.
Although we have seen a clear general uptrend in the US dollar and a downtrend in equities and bonds, we cannot conclude a long-term, daily, statistical relationship between either asset.
Even though equities and the dollar had a strong inverse correlation in the last three months, looking at the history of three month correlations, it seems like this moment is statistically insignificant compared to long term averages.
Although we have seen a clear general uptrend in the US dollar and a downtrend in equities and bonds, we cannot conclude a long-term, daily, statistical relationship between either asset.
Even though equities and the dollar had a strong inverse correlation in the last three months, looking at the history of three month correlations, it seems like this moment is statistically insignificant compared to long term averages.
Victor joins Tom and Tony to discuss entrepreneurship and all of Tom’s reasons why being passive is the absolute worst approach to investing. Not everyone is inclined to be as bold and pro-risk as an entrepreneur, but is it worth it to give your time and money - A LOT of money to a traditional banking system that thinks they know more than you (they don’t) when it comes to the markets or as Tom puts it, investing in a "Marginal, brain-dead return?" Apparently, Tom wrote a scorching rebuttal about the problems with being a passive investor in the latest issue of Cherry Bomb, likening all forms of passive investing as giving in to the ultimate Ponzi scheme. Ouch. Is cutting out the middleman in investing a more sound approach? OR more the reason to be a bold, self-directed investor that does their own research?
Victor joins Tom and Tony to discuss entrepreneurship and all of Tom’s reasons why being passive is the absolute worst approach to investing. Not everyone is inclined to be as bold and pro-risk as an entrepreneur, but is it worth it to give your time and money - A LOT of money to a traditional banking system that thinks they know more than you (they don’t) when it comes to the markets or as Tom puts it, investing in a "Marginal, brain-dead return?" Apparently, Tom wrote a scorching rebuttal about the problems with being a passive investor in the latest issue of Cherry Bomb, likening all forms of passive investing as giving in to the ultimate Ponzi scheme. Ouch. Is cutting out the middleman in investing a more sound approach? OR more the reason to be a bold, self-directed investor that does their own research?
Deciding how to manage trades as we move through earnings season can make all the difference to an active trader looking to profit from the high credits. But what can we expect from underlyings after earnings?
Tom and Tony examine the data to see how often stocks continue with their earnings moves during the following week.
Deciding how to manage trades as we move through earnings season can make all the difference to an active trader looking to profit from the high credits. But what can we expect from underlyings after earnings?
Tom and Tony examine the data to see how often stocks continue with their earnings moves during the following week.
Polkadot is a blockchain network that aims to be a scalable, interoperable, and secure solution for the future of crypto and the web. It is a layer 0 solution that is meant to allow layer 1 solutions to communicate with one another.
By having multiple chains running in parallel, Polkadot can offer greater speed and scalability for existing blockchains. Add to that a proof-of-stake main chain, and Polkadot can provide enhanced security for smaller or new blockchains.
Join Eddie as he explains the technology behind Polkadot and how the DOT token supports the network!
Polkadot is a blockchain network that aims to be a scalable, interoperable, and secure solution for the future of crypto and the web. It is a layer 0 solution that is meant to allow layer 1 solutions to communicate with one another.
By having multiple chains running in parallel, Polkadot can offer greater speed and scalability for existing blockchains. Add to that a proof-of-stake main chain, and Polkadot can provide enhanced security for smaller or new blockchains.
Join Eddie as he explains the technology behind Polkadot and how the DOT token supports the network!
Market pricing Fed terminal rate of 4.5% by EOY; two 75 bps rate hikes. Merger Monday: BP acquired LFG for $26/share. VIX is not tanking, keep that in mind... Leftovers - Stats on peer-to-peer payment apps.
Market pricing Fed terminal rate of 4.5% by EOY; two 75 bps rate hikes. Merger Monday: BP acquired LFG for $26/share. VIX is not tanking, keep that in mind... Leftovers - Stats on peer-to-peer payment apps.
You will often hear us say that with Short Strangles and Inverted Strangles we want the same thing (stock inside the strikes), but the reason why is different. With a Short Strangle the best-case scenario is both options out-of-the-money, while with an Inverted Strangle the best-case scenario is always both options in-the-money. Thus, while we want the stock between the strikes to minimize intrinsic value for both strategies, the end result is very different.
You will often hear us say that with Short Strangles and Inverted Strangles we want the same thing (stock inside the strikes), but the reason why is different. With a Short Strangle the best-case scenario is both options out-of-the-money, while with an Inverted Strangle the best-case scenario is always both options in-the-money. Thus, while we want the stock between the strikes to minimize intrinsic value for both strategies, the end result is very different.
Anton from the tastytrade Research Team discusses the liquidity in /ES options and how they bring opportunity and diversification in shorter dated expiration cycles.
Anton from the tastytrade Research Team discusses the liquidity in /ES options and how they bring opportunity and diversification in shorter dated expiration cycles.
Anton from the tastytrade Research Team goes LIVE on our YouTube livestream to answer live questions from tastytraders around the world.
Anton from the tastytrade Research Team goes LIVE on our YouTube livestream to answer live questions from tastytraders around the world.
Join Nick and Mike as they cover a flurry of topics, such as being green across the board, delta adjustment, SPX price action, massive market rallies and selloffs and their impact on potential reversals, naked puts, and a whole lot more!
Join Nick and Mike as they cover a flurry of topics, such as being green across the board, delta adjustment, SPX price action, massive market rallies and selloffs and their impact on potential reversals, naked puts, and a whole lot more!
With the major indices and many stocks near their 52 week lows, investors may be looking to add some long deltas to their portfolios.From ZEBRAs to Jade Lizards, there are a number of strategies that allow investors to reflect a potentially bullish bias.The question then becomes: which strategy should we utilize if we want to take a long shot?Join Tom and Tony to find out!
With the major indices and many stocks near their 52 week lows, investors may be looking to add some long deltas to their portfolios.From ZEBRAs to Jade Lizards, there are a number of strategies that allow investors to reflect a potentially bullish bias.The question then becomes: which strategy should we utilize if we want to take a long shot?Join Tom and Tony to find out!
So moving from the original intent to the option pricing source itself, we see the derivative of the BSM with respect to price mapping directly into a probabilistic function. A function that is placed in the model to specifically measure the chance that an option will have intrinsic value. Or in other words, the probability that the option will expire in-the-money - also known as delta.Did you catch our recent show on how to determine Delta/Theta levels for your portfolio?
So moving from the original intent to the option pricing source itself, we see the derivative of the BSM with respect to price mapping directly into a probabilistic function. A function that is placed in the model to specifically measure the chance that an option will have intrinsic value. Or in other words, the probability that the option will expire in-the-money - also known as delta.Did you catch our recent show on how to determine Delta/Theta levels for your portfolio?
美股最近持续大幅度下跌，再创今年新低，稳稳地坐在熊市的一方。那么在下跌的过程中我们可以如何利用期权来盈利？那些策略在这种情况下最适合？请听曾凯给大家从股价，隐含波动率等角度来分析用期权策略的应对方法。 更多信息: info.tastytrade.com/cn
We are witnessing one of the largest and longest market drawdowns after 2008. While the market keeps hitting new lows this month, what can we do as traders to take advantage of it? What option strategies can benefit from this type of market? In this episode, Kai explains the appropriate option strategies to utilize now and their historical performances in the past decade.
Trading options offer clear opportunities using short premium that do not require directional bias to be correct. When trading short premium strategies, there is the potential to profit from not only the price movement of the underlying, but also the change in implied volatility and time decay.
Trading options offer clear opportunities using short premium that do not require directional bias to be correct. When trading short premium strategies, there is the potential to profit from not only the price movement of the underlying, but also the change in implied volatility and time decay.
Going inverted to defend a position is a typical adjustment that we like to make, but you need to be aware of the inherent tradeoff with strike selection. Generally speaking, the wider you go with your inversion, the more you will neutralize your delta, but the less profit potential you will have on the position. Therefore, just make sure you fully understand what you’ve signed up for when you go inverted with a specific strike on your strangle.
Going inverted to defend a position is a typical adjustment that we like to make, but you need to be aware of the inherent tradeoff with strike selection. Generally speaking, the wider you go with your inversion, the more you will neutralize your delta, but the less profit potential you will have on the position. Therefore, just make sure you fully understand what you’ve signed up for when you go inverted with a specific strike on your strangle.
It seems like there was a direct reversal from yesterday, but is there any signs of lower volatility in the future? Anton and Pete wonder on today's Splash into Futures.
It seems like there was a direct reversal from yesterday, but is there any signs of lower volatility in the future? Anton and Pete wonder on today's Splash into Futures.
Today’s questions on RSL Live include market efficiency, calendar spreads, and how to deal with markets with such relentless volatility.
Today’s questions on RSL Live include market efficiency, calendar spreads, and how to deal with markets with such relentless volatility.
The tastytrade crew talk about the surprisingly red market day, crazy weekend risk, and answer questions on max value, early assignment, finding trading opportunities and more!
The tastytrade crew talk about the surprisingly red market day, crazy weekend risk, and answer questions on max value, early assignment, finding trading opportunities and more!
Liz, Jenny, and Anton discuss iron condor wing placement and end on a discussion on dividend stocks. Iron condors are very attractive in this high vol environment.
Liz, Jenny, and Anton discuss iron condor wing placement and end on a discussion on dividend stocks. Iron condors are very attractive in this high vol environment.
Down days were observed to have a larger probability of seeing a reversal plus follow-through than the same magnitude up day… most likely due to higher IV that naturally exists during a down day.
When it comes to larger drawdowns and subsequent turnarounds, down days retain around a 2% chance of seeing a full reversal plus follow-through… large up days, however, almost never saw this happen.
Down days were observed to have a larger probability of seeing a reversal plus follow-through than the same magnitude up day… most likely due to higher IV that naturally exists during a down day.
When it comes to larger drawdowns and subsequent turnarounds, down days retain around a 2% chance of seeing a full reversal plus follow-through… large up days, however, almost never saw this happen.
Join Tom, Tony and Jermal as they talk about the five days that included arguably the most volatile trading day of the year on This Week in Stocks.
Join Tom, Tony and Jermal as they talk about the five days that included arguably the most volatile trading day of the year on This Week in Stocks.
Anton from the tastytrade Research Team goes LIVE on our YouTube livestream to join tastynation in a discussion on today’s CPI report that fueled one of the most volatile days in market history! Are markets efficient? Is there manipulation going on behind the scenes? These hot topics and more with commentary from the Research Team.
Anton from the tastytrade Research Team goes LIVE on our YouTube livestream to join tastynation in a discussion on today’s CPI report that fueled one of the most volatile days in market history! Are markets efficient? Is there manipulation going on behind the scenes? These hot topics and more with commentary from the Research Team.
Inflation keeps coming in hot: Up 8.2% from year earlier. Fed funds pricing a 75 bps hike in Nov and 50 bps hike in Dec. Rumors of a merger for grocers KR and ACI. Leftovers - Most Costly Hurricanes In The U.S.
Inflation keeps coming in hot: Up 8.2% from year earlier. Fed funds pricing a 75 bps hike in Nov and 50 bps hike in Dec. Rumors of a merger for grocers KR and ACI. Leftovers - Most Costly Hurricanes In The U.S.
With CPI being released this morning, the economy showed slightly more inflationary pressure than was expected. After a pre-market nosedive once the CPI number was released, surprisingly, the markets rallied hard on the open and into the afternoon.
So what does all of that mean for your portfolio? That's the topic today, as we stream live on YouTube!
With CPI being released this morning, the economy showed slightly more inflationary pressure than was expected. After a pre-market nosedive once the CPI number was released, surprisingly, the markets rallied hard on the open and into the afternoon.
So what does all of that mean for your portfolio? That's the topic today, as we stream live on YouTube!
Mike and Nick are trading bank earnings, Katie’s got her eyes on a bullish trade in gold. Tune in and join us for their setups and get their take on today's market reversal and what to expect the rest of the week!
Mike and Nick are trading bank earnings, Katie’s got her eyes on a bullish trade in gold. Tune in and join us for their setups and get their take on today's market reversal and what to expect the rest of the week!
Liz and Jenny take a fresh approach to trading futures and futures options. They navigate the futures markets learning as they trade. They then place a strangle in /MCL in the November cycle.
Liz and Jenny take a fresh approach to trading futures and futures options. They navigate the futures markets learning as they trade. They then place a strangle in /MCL in the November cycle.
Working with entrepreneurs for the past 20 years, I have come to realize that some of the best businesses are born out of experience to make things better. Such is the case with Hao Liu, who came to the U.S. as an international student without any credit history. As a result, Hao experienced what it was like as a "credit-invisible" person in the United States. In the past seven years Liu has devoted his life to help the underbanked population, especially college students, to access fair options and build credit from scratch. His company, Kora, has helped over 100,000 students, and is now expanding to all 50 states in the country. Oh, and he also provides a budgeting app to help. Need a loan? Check out Kora!
Working with entrepreneurs for the past 20 years, I have come to realize that some of the best businesses are born out of experience to make things better. Such is the case with Hao Liu, who came to the U.S. as an international student without any credit history. As a result, Hao experienced what it was like as a "credit-invisible" person in the United States. In the past seven years Liu has devoted his life to help the underbanked population, especially college students, to access fair options and build credit from scratch. His company, Kora, has helped over 100,000 students, and is now expanding to all 50 states in the country. Oh, and he also provides a budgeting app to help. Need a loan? Check out Kora!
With midterm elections coming up, political and legislative shifts may impact markets and particularly certain emerging sectors such as renewable energy, biotech, and cannabis. However, such shifts may not impact these emerging sectors as investors are anticipating. Join Tom and Tony as they look at the cannabis sector to understand why.
With midterm elections coming up, political and legislative shifts may impact markets and particularly certain emerging sectors such as renewable energy, biotech, and cannabis. However, such shifts may not impact these emerging sectors as investors are anticipating. Join Tom and Tony as they look at the cannabis sector to understand why.
Nearly 30 years ago, the World Wide Web went live and the internet changed forever.
From static text pages to social media apps, the internet went from passive reading to active participation in less than two decades.
Now it seems there may be a new era of World Wide Web, known by many as Web 3.0 or Web3.Join Tom, Tony, and Eddie as they discuss this and more on today’s episode of Alpha Bytes!If you have requests for any topics, reach out to Julia (@FinancePhoton) or Eddie (@ERajcevic11) on Twitter! You can also submit ideas through this form: https://www.tastytrade.com/alpha-bytes-topics.
Nearly 30 years ago, the World Wide Web went live and the internet changed forever.
From static text pages to social media apps, the internet went from passive reading to active participation in less than two decades.
Now it seems there may be a new era of World Wide Web, known by many as Web 3.0 or Web3.Join Tom, Tony, and Eddie as they discuss this and more on today’s episode of Alpha Bytes!If you have requests for any topics, reach out to Julia (@FinancePhoton) or Eddie (@ERajcevic11) on Twitter! You can also submit ideas through this form: https://www.tastytrade.com/alpha-bytes-topics.
The World Wide Web has come a long way since its inception in the 1990s. From static, read-only pages to fully interactive, social media platforms, the internet has evolved so much in such little time.The next evolution for the internet is commonly referred to as Web3 or Web 3.0, with specific differences between the two. The technology that supports crypto is the core of Web3, and with the technology comes a host of benefits. However, as with everything, there are limitations to the technology as it is today.
The World Wide Web has come a long way since its inception in the 1990s. From static, read-only pages to fully interactive, social media platforms, the internet has evolved so much in such little time.The next evolution for the internet is commonly referred to as Web3 or Web 3.0, with specific differences between the two. The technology that supports crypto is the core of Web3, and with the technology comes a host of benefits. However, as with everything, there are limitations to the technology as it is today.
Dr. Jim shares with Errol the importance if CPI and how he can trade it. With expectation for CPI being 8.1, Dr. Jim explains that if numbers come in above or below we may see some volatility. If the CPI number turns out to be 8.1 (expected) It's more of a wild card.
Dr. Jim shares with Errol the importance if CPI and how he can trade it. With expectation for CPI being 8.1, Dr. Jim explains that if numbers come in above or below we may see some volatility. If the CPI number turns out to be 8.1 (expected) It's more of a wild card.
For capitalism to work, you need ideas and money. Money will naturally flow to the best ideas… In theory. Steve Jobs had no way of knowing whether Apple would be a success when he started the company, but he kept his eye on the prize at all costs… He believed in his vision and got others to believe in it too. Google didn’t know what they would become either or Amazon. Ideas that offer the greatest chance of success are relatively low risk, right? But who’s the driver of capitalism? Is it the banks? Politicians? Idea generators? On this segment of Truth or Skepticism, Tom and Dylan discuss capitalism and the tenets for its success.
For capitalism to work, you need ideas and money. Money will naturally flow to the best ideas… In theory. Steve Jobs had no way of knowing whether Apple would be a success when he started the company, but he kept his eye on the prize at all costs… He believed in his vision and got others to believe in it too. Google didn’t know what they would become either or Amazon. Ideas that offer the greatest chance of success are relatively low risk, right? But who’s the driver of capitalism? Is it the banks? Politicians? Idea generators? On this segment of Truth or Skepticism, Tom and Dylan discuss capitalism and the tenets for its success.
In this show, Anton from the tastytrade Research Team focuses on soybean futures /ZS to look for opportunities where we usually do not trade.
In this show, Anton from the tastytrade Research Team focuses on soybean futures /ZS to look for opportunities where we usually do not trade.
In this live Q&A stream, Anton tackles questions regarding the CPI report... how tradable is it? And if it is, how would we trade it using options that carry more opportunities than just trading stock.
In this live Q&A stream, Anton tackles questions regarding the CPI report... how tradable is it? And if it is, how would we trade it using options that carry more opportunities than just trading stock.
Tune in to learn about the CPI report and how products like XSP have inflated implied volatility because of it. The market is projecting about a 100pt move through the end of the week, so Mike places a double calendar spread to encompass that range.
Live Q&A session as well!
Tune in to learn about the CPI report and how products like XSP have inflated implied volatility because of it. The market is projecting about a 100pt move through the end of the week, so Mike places a double calendar spread to encompass that range.
Live Q&A session as well!
Every option comes with its own implied volatility, which can be daunting to interpret. IVx synthesizes this down to a single volatility to help traders interpret what option prices say about upcoming moves in the underlying, but advanced traders can look to the whole of the implied volatility curve and learn even more. Today, Jacob joins Tom and Tony to unpack the volatility curve and explain what different features mean about the market's expectations for the underlying.
Every option comes with its own implied volatility, which can be daunting to interpret. IVx synthesizes this down to a single volatility to help traders interpret what option prices say about upcoming moves in the underlying, but advanced traders can look to the whole of the implied volatility curve and learn even more. Today, Jacob joins Tom and Tony to unpack the volatility curve and explain what different features mean about the market's expectations for the underlying.
It is relatively difficult to sell premiums in bond products due to their low implied volatilities. However, this year, TLT’ IV has gone up significantly, trading above the average level 100% of the time!
So is this a great time to sell premiums in bond products?
Join Tom and Tony as they analyze the performance of selling TLT Strangles.
It is relatively difficult to sell premiums in bond products due to their low implied volatilities. However, this year, TLT’ IV has gone up significantly, trading above the average level 100% of the time!
So is this a great time to sell premiums in bond products?
Join Tom and Tony as they analyze the performance of selling TLT Strangles.
UBER, LYFT and DASH fall on DoL rule proposal. COIN selected by GOOGL for cloud service payments. Casino stocks tumble China covid-19 lockdowns. Leftovers - Lithium on the rise thanks to EVs.
UBER, LYFT and DASH fall on DoL rule proposal. COIN selected by GOOGL for cloud service payments. Casino stocks tumble China covid-19 lockdowns. Leftovers - Lithium on the rise thanks to EVs.
Today, we’re live on YouTube taking all your questions, and one of the more notable ones that came in was in regards to adjusting positions aggressively. The more traditional approach to managing positions is to simply wait until your strikes are tested before you make any adjustments. But an alternative way to approach your positions is to aggressively roll each side i.e. Reverse Gamma Scalping, in an effort to maximize your extrinsic value and minimize your directional exposure.
Today, we’re live on YouTube taking all your questions, and one of the more notable ones that came in was in regards to adjusting positions aggressively. The more traditional approach to managing positions is to simply wait until your strikes are tested before you make any adjustments. But an alternative way to approach your positions is to aggressively roll each side i.e. Reverse Gamma Scalping, in an effort to maximize your extrinsic value and minimize your directional exposure.
Eddie and James give viewers a full break down on the Nasdaq-100 futures and micro futures. The duo look through the contract specifications as well as trade examples for both futures contracts. Next they check in on how the markets are looking for this Tuesday afternoon.
Eddie and James give viewers a full break down on the Nasdaq-100 futures and micro futures. The duo look through the contract specifications as well as trade examples for both futures contracts. Next they check in on how the markets are looking for this Tuesday afternoon.
Tune in to learn about buying power reduction, how it changes depending on your account type, and what to watch out for with undefined risk positions.
Tune in to learn about buying power reduction, how it changes depending on your account type, and what to watch out for with undefined risk positions.
CineLogic is a team of veteran, action-film specialists, including award-winning producers, writers, directors, editors, stuntmen, cinematographers, visual effects artists, visual effects supervisors, composers, software engineers, and a patent attorney. Guy Manos, the Co-founder & CEO was one of the earliest pioneers of what the film industry now calls “Pre-Vis” --- the jumping-off point, for all the CineLogic innovations. In the development of the CineLogic IP portfolio, Guy thoroughly field-tested and proved out all the CineLogic innovations - on big-budget features for Disney, Warner Bros., Paramount, and Universal.Learn More about CineLogic
CineLogic is a team of veteran, action-film specialists, including award-winning producers, writers, directors, editors, stuntmen, cinematographers, visual effects artists, visual effects supervisors, composers, software engineers, and a patent attorney. Guy Manos, the Co-founder & CEO was one of the earliest pioneers of what the film industry now calls “Pre-Vis” --- the jumping-off point, for all the CineLogic innovations. In the development of the CineLogic IP portfolio, Guy thoroughly field-tested and proved out all the CineLogic innovations - on big-budget features for Disney, Warner Bros., Paramount, and Universal.Learn More about CineLogic
When products in a portfolio are truly diversified (meaning the underlyings have correlations to SPY that are closer to zero,) the outlier risk to a portfolio is reduced. Outlier risk is reduced in two ways compared to a non-diversified portfolio assuming you are collecting the same premium/credit: Total dollar losses are spread out over time because non-correlated underlyings do not lose at the same time. Total dollar loss may be less.
When products in a portfolio are truly diversified (meaning the underlyings have correlations to SPY that are closer to zero,) the outlier risk to a portfolio is reduced. Outlier risk is reduced in two ways compared to a non-diversified portfolio assuming you are collecting the same premium/credit: Total dollar losses are spread out over time because non-correlated underlyings do not lose at the same time. Total dollar loss may be less.
Victor is on a roll today and asks Tom adding a catch-22 to his already loaded question: Is the "grift” over? Grift is defined as... "willfully being a part of petty or small-scale swindling"… Victor adds isn't this what is happening now? Interest rates, crypto market blowing up, housing market rolling over. Tom doesn't consider any of this to be a grift. He does think there is grift in politics, misinformation, and horribly questionable ethics. Is there a positive side to all of this? Are the markets the only thing that is keeping everyone honest? What do you think? Is Victor on to something? Check out the debate on today's segment.
Victor is on a roll today and asks Tom adding a catch-22 to his already loaded question: Is the "grift” over? Grift is defined as... "willfully being a part of petty or small-scale swindling"… Victor adds isn't this what is happening now? Interest rates, crypto market blowing up, housing market rolling over. Tom doesn't consider any of this to be a grift. He does think there is grift in politics, misinformation, and horribly questionable ethics. Is there a positive side to all of this? Are the markets the only thing that is keeping everyone honest? What do you think? Is Victor on to something? Check out the debate on today's segment.
Earnings announcements are often followed by large underlying moves. In principle, the increased implied volatility should account for this and the frequency of realized moves being one or two times the expected move should remain stable. Today, Tom and Tony look at a mountain of data, examining all the components of the S&P 500 to see if this holds or if we should further adjust our expectations around earnings.
Earnings announcements are often followed by large underlying moves. In principle, the increased implied volatility should account for this and the frequency of realized moves being one or two times the expected move should remain stable. Today, Tom and Tony look at a mountain of data, examining all the components of the S&P 500 to see if this holds or if we should further adjust our expectations around earnings.
Semiconductors fall on US-China tensions. PYPL falls after blowback on misinformation policy. Defense stocks flying behind recent geopolitical kerfuffles. Leftovers - North Korean missile testing at record high.
Semiconductors fall on US-China tensions. PYPL falls after blowback on misinformation policy. Defense stocks flying behind recent geopolitical kerfuffles. Leftovers - North Korean missile testing at record high.
One thing that can be very helpful to remember is that each calendar day effectively has its own, unique implied volatility. Therefore, when we examine the IVs for different binary events, we will see them commanding much higher volatilities on the option chain. Recognizing this can help us better manage the overall exposure and outlier risk of our positions.
One thing that can be very helpful to remember is that each calendar day effectively has its own, unique implied volatility. Therefore, when we examine the IVs for different binary events, we will see them commanding much higher volatilities on the option chain. Recognizing this can help us better manage the overall exposure and outlier risk of our positions.
Anton and Pete discuss how the markets have a lot of volatility that can be taken advantage of and not necessarily from one underlying.
Anton and Pete discuss how the markets have a lot of volatility that can be taken advantage of and not necessarily from one underlying.
Calling all traders! For all questions regarding options trades or investing in general, join our YouTube livestream daily at 12 pm central time and ask your question LIVE to one of our Researchers.
Calling all traders! For all questions regarding options trades or investing in general, join our YouTube livestream daily at 12 pm central time and ask your question LIVE to one of our Researchers.
Pot stocks are buzzing again after President Biden's remarks, so Mike and Nick explain the makeup of MSOS and MJ - two popular pot stocks.
Pot stocks are buzzing again after President Biden's remarks, so Mike and Nick explain the makeup of MSOS and MJ - two popular pot stocks.
With the midterm elections right around the corner, we could see a significant change on policy, laws, and foreign relations. This has led market participants to question what the impact may be on the stock market.
Do elections tend to lead to stronger market performance? Does volatility increase or decrease during election months? Is volatility significantly overstated?Join Tom and Tony to find out!
With the midterm elections right around the corner, we could see a significant change on policy, laws, and foreign relations. This has led market participants to question what the impact may be on the stock market.
Do elections tend to lead to stronger market performance? Does volatility increase or decrease during election months? Is volatility significantly overstated?Join Tom and Tony to find out!
Bear Markets are not for the faint of heart, as the old adage, the stock market takes the stairs up and the elevator down rings true in a lot of ways. Thankfully, many tastytraders carrying short or even neutral delta are far better equipped to navigate these than the average investor. Still, one thing that often times gets lost during a Bear Market is that the rallies can be quite violent, too
Did you catch our recent segment on how to determine Delta/Theta levels for your portfolio?
Bear Markets are not for the faint of heart, as the old adage, the stock market takes the stairs up and the elevator down rings true in a lot of ways. Thankfully, many tastytraders carrying short or even neutral delta are far better equipped to navigate these than the average investor. Still, one thing that often times gets lost during a Bear Market is that the rallies can be quite violent, too
Did you catch our recent segment on how to determine Delta/Theta levels for your portfolio?
With IV being high across all major asset classes, the current premium opportunity is equally rich in all of them. The realized risk over the last 30 days has been significantly less than what IV priced in which aligns with what our research suggests when IV is high.
With IV being high across all major asset classes, the current premium opportunity is equally rich in all of them. The realized risk over the last 30 days has been significantly less than what IV priced in which aligns with what our research suggests when IV is high.
On this episode of Engineering the Trade, Jermal Chandler is joined by Michael 'Dr. Data' Rechenthin as they discuss some stock market stats and take live questions from viewers.
On this episode of Engineering the Trade, Jermal Chandler is joined by Michael 'Dr. Data' Rechenthin as they discuss some stock market stats and take live questions from viewers.
Streaming live on YouTube, we answer as many of your questions as we can! These include:
- With this current Bear Market, have we reached a bottom, or is there more pain on the way?
- Should you adjust Calendar Spreads on a daily basis?
- Is there any benefit to going for more than 50% of max profit on your strategies?
Streaming live on YouTube, we answer as many of your questions as we can! These include:
- With this current Bear Market, have we reached a bottom, or is there more pain on the way?
- Should you adjust Calendar Spreads on a daily basis?
- Is there any benefit to going for more than 50% of max profit on your strategies?
Anton from the Research Team discusses if it's best to take a break from the markets during the latest meltdown. We look at managing positions going into the weekend as well as some opportunities going into next week.
Anton from the Research Team discusses if it's best to take a break from the markets during the latest meltdown. We look at managing positions going into the weekend as well as some opportunities going into next week.
Anton and Eddie join forces to tackle today's market questions from tastytraders from around the world. Questions are centered around defending losing trades.
Anton and Eddie join forces to tackle today's market questions from tastytraders from around the world. Questions are centered around defending losing trades.
是否可以持续卖出超短期比如1天到期的期权来最大化收益？因为期权的Theta越靠近到期日值就越高，并且保证金也就是成本会更低，所以日均回报率应该最高。今天交易员曾凯就历史数据来解析使用超短期期权和正常越期权之间的区别，到底孰优孰略。 更多信息: info.tastytrade.com/cn
Can traders sell one-day options to maximize the ROC? Because the Theta grows more significantly close to expiration and the margin is lower at the same time, the daily ROC should be higher with a shorter duration. Today, our options trader Kai analyzes the pros and cons of short-dated and regular monthly options. Which one should we choose and why?
Join Mike and Nick as they walk you through a preview of the top stocks to watch in October - PEP, ABT, MS, and WBA.
Tune in to learn more with a live Q&A session as well!
Join Mike and Nick as they walk you through a preview of the top stocks to watch in October - PEP, ABT, MS, and WBA.
Tune in to learn more with a live Q&A session as well!
Eddie and Liz walk step by step through how to replicate the very popular buffer fund trade. They use IWM as an example and break it into 3 easy steps.
Eddie and Liz walk step by step through how to replicate the very popular buffer fund trade. They use IWM as an example and break it into 3 easy steps.
Join Tom, Tony and Jermal as they talk about the $CS drama, the SPX 52-wk low and Elon buying $TWTR on This Week in Stocks.
Join Tom, Tony and Jermal as they talk about the $CS drama, the SPX 52-wk low and Elon buying $TWTR on This Week in Stocks.
Mortgage applications down 40% from a year ago. OPEC+ cut not vibing with U.S. desires. Did a massive bullish SPX trade boost the market? Leftovers - The best food cities in the world
Mortgage applications down 40% from a year ago. OPEC+ cut not vibing with U.S. desires. Did a massive bullish SPX trade boost the market? Leftovers - The best food cities in the world
On today’s YouTube livestream, we talk about the Bear Market Rally that we’re currently in and offer some thoughts around when it might end and further upside potential. With all the macro headwinds that the economy faces, from inflation to The Fed, a VIX at 30 still means that we are likely to see more violent moves on both sides of the market - not on the lower end.
On today’s YouTube livestream, we talk about the Bear Market Rally that we’re currently in and offer some thoughts around when it might end and further upside potential. With all the macro headwinds that the economy faces, from inflation to The Fed, a VIX at 30 still means that we are likely to see more violent moves on both sides of the market - not on the lower end.
Futures, on average, have the lowest price correlations to other futures compared to equities vs. equities. They also tend to keep it in periods of high IV (like right now) where stocks’ correlations go to 1. Futures options add another layer of diversification by integrating the asset of IV.
Futures, on average, have the lowest price correlations to other futures compared to equities vs. equities. They also tend to keep it in periods of high IV (like right now) where stocks’ correlations go to 1. Futures options add another layer of diversification by integrating the asset of IV.
Anton from the tastytrade Research Team joins the YouTube livestream to answer questions from traders around the world. Today's questions included concepts on neutralizing a losing position and how to best use correlation metrics in your trading. Join this stream daily at noon central time to ask the Research Team your own questions.
Anton from the tastytrade Research Team joins the YouTube livestream to answer questions from traders around the world. Today's questions included concepts on neutralizing a losing position and how to best use correlation metrics in your trading. Join this stream daily at noon central time to ask the Research Team your own questions.
The tastytrade crew offers their options trade ideas for the day! Mike sells a put in UAL
Nick sells a put and a call ratio spread in XOM
Katie sells an iron condor in Oil Futures /CL
Tune in to learn more with a live Q&A as well!
The tastytrade crew offers their options trade ideas for the day! Mike sells a put in UAL
Nick sells a put and a call ratio spread in XOM
Katie sells an iron condor in Oil Futures /CL
Tune in to learn more with a live Q&A as well!
Liz and Jenny make adjustments to their futures positions. They complete the /MES downside ratio spread. They add another long /MCD future. They talk about the yield curve and look at iron condors in /ZS.
Liz and Jenny make adjustments to their futures positions. They complete the /MES downside ratio spread. They add another long /MCD future. They talk about the yield curve and look at iron condors in /ZS.
The iron fly is to the straddle what the iron condor is to the strangle. By adding long wings, we are able to define the risk of a straddle or a strangle upon entry.
The iron fly is a more aggressive alternative to the iron condor, collecting more credit initially, but generally seeing greater volatility throughout the trade.
Is there a way to decrease this volatility and make the most of the high initial credit of the iron fly?
Join Tom and Tony to find out!
The iron fly is to the straddle what the iron condor is to the strangle. By adding long wings, we are able to define the risk of a straddle or a strangle upon entry.
The iron fly is a more aggressive alternative to the iron condor, collecting more credit initially, but generally seeing greater volatility throughout the trade.
Is there a way to decrease this volatility and make the most of the high initial credit of the iron fly?
Join Tom and Tony to find out!
Simpson’s paradox is a statistical paradox that can make interpreting data ambiguous. This paradox can manifest in medical sciences and social sciences, including economics and finance, and can mislead traders if they’re not careful.
Join Tom, Tony and Julia as they discuss Simpson’s paradox and how it applies to trading.If you have requests for any topics, reach out to Julia (@FinancePhoton) or Eddie (@ERajcevic11) on Twitter! You can also submit ideas through this form: https://www.tastytrade.com/alpha-bytes-topics.
Simpson’s paradox is a statistical paradox that can make interpreting data ambiguous. This paradox can manifest in medical sciences and social sciences, including economics and finance, and can mislead traders if they’re not careful.
Join Tom, Tony and Julia as they discuss Simpson’s paradox and how it applies to trading.If you have requests for any topics, reach out to Julia (@FinancePhoton) or Eddie (@ERajcevic11) on Twitter! You can also submit ideas through this form: https://www.tastytrade.com/alpha-bytes-topics.
Scalability is one of the largest problems still facing crypto. The scalability trilemma is that no blockchain currently exists that has all of the following three properties: security, decentralization, and speed. Ethereum and Bitcoin have security and decentralization, but lack speed. Solana has security and speed, but lacks on decentralization.
A number of scalability solutions have been proposed, from sharding to side chains. In today's episode of Crypto Concepts, we'll discuss why layer 2 solutions exist, how they benefit the Ethereum network, and how rollups work!
Scalability is one of the largest problems still facing crypto. The scalability trilemma is that no blockchain currently exists that has all of the following three properties: security, decentralization, and speed. Ethereum and Bitcoin have security and decentralization, but lack speed. Solana has security and speed, but lacks on decentralization.
A number of scalability solutions have been proposed, from sharding to side chains. In today's episode of Crypto Concepts, we'll discuss why layer 2 solutions exist, how they benefit the Ethereum network, and how rollups work!
When you’re an opportunist, your survival is dependent upon capitalizing on an opportunity when it presents itself. But at what point is the line drawn in the sand? Can you be to opportunistic? Is it okay for a hedge firm to want more than fair value on a stock they are selling you just to cover their losses on a short position? If you’re on vacation and a natural disaster destroys every hotel in the area except one, is it okay for that hotel to ask for $1,000 a night when a room at that same hotel typically costs $200 a night? When does it become exploitation and taking advantage of a situation for their own means? Tom and Dylan discuss the fine line between what is morally correct in the face of opportunity.
When you’re an opportunist, your survival is dependent upon capitalizing on an opportunity when it presents itself. But at what point is the line drawn in the sand? Can you be to opportunistic? Is it okay for a hedge firm to want more than fair value on a stock they are selling you just to cover their losses on a short position? If you’re on vacation and a natural disaster destroys every hotel in the area except one, is it okay for that hotel to ask for $1,000 a night when a room at that same hotel typically costs $200 a night? When does it become exploitation and taking advantage of a situation for their own means? Tom and Dylan discuss the fine line between what is morally correct in the face of opportunity.
Today Errol, and Dr. Jim are back adjusting positions and trading trading oil with undefined risk. Undefined risk positions are better suited for larger accounts due to the buying power affect. With $MRO being a relatively cheaper product to get into, Errol takes advantage of a Strangle rather than an Iron Condor.
Today Errol, and Dr. Jim are back adjusting positions and trading trading oil with undefined risk. Undefined risk positions are better suited for larger accounts due to the buying power affect. With $MRO being a relatively cheaper product to get into, Errol takes advantage of a Strangle rather than an Iron Condor.
Anton from the Research Team looks at some opportunities in metals after a long lull in the markets with little opportunity. We discuss how to trade the gold/silver ratio and a few options trades in /SI since it has some decent premium after its 8% rally.
Anton from the Research Team looks at some opportunities in metals after a long lull in the markets with little opportunity. We discuss how to trade the gold/silver ratio and a few options trades in /SI since it has some decent premium after its 8% rally.
Anton from the Research Team goes LIVE on YouTube to answer live questions from tastytraders around the world. Today's questions include: fundamental concepts, greeks, where to store extra cash, and more!
Anton from the Research Team goes LIVE on YouTube to answer live questions from tastytraders around the world. Today's questions include: fundamental concepts, greeks, where to store extra cash, and more!
Extrinsic value is all remaining value in an options price that is not intrinsic value. Extrinsic value can tell us a lot about our perceived risk and the greeks, so it's imperative to understand.
Tune in as Mike & Nick walk you through everything you need to know about extrinsic value with a live Q&A session as well!
Extrinsic value is all remaining value in an options price that is not intrinsic value. Extrinsic value can tell us a lot about our perceived risk and the greeks, so it's imperative to understand.
Tune in as Mike & Nick walk you through everything you need to know about extrinsic value with a live Q&A session as well!
Liz and Jenny take a look at 10 viewer assumptions and place high probability trades. They lean toward puts and big lizards.
Liz and Jenny take a look at 10 viewer assumptions and place high probability trades. They lean toward puts and big lizards.
Liz and Jenny answer live tweets. They look at a viewer's MU position and go over covered strangles. They get back into ARKK with short puts. They also place a new November LUV position.
Liz and Jenny answer live tweets. They look at a viewer's MU position and go over covered strangles. They get back into ARKK with short puts. They also place a new November LUV position.
Jacob joins Tom and Tony to discuss the virtues of structuring trades around delta and ITM% which might be more work, but also takes full advantage of all the information the option sheet provides us with via efficient market hypothesis.
Jacob joins Tom and Tony to discuss the virtues of structuring trades around delta and ITM% which might be more work, but also takes full advantage of all the information the option sheet provides us with via efficient market hypothesis.
SPX and /ES both track S&P’s performance. But why are /ES and SPX different prices? What causes the discrepancy? Is /ES priced higher more often or is the opposite scenario?
Join Tom and Tony as they explain the price discrepancy between the /ES and SPX prices.
SPX and /ES both track S&P’s performance. But why are /ES and SPX different prices? What causes the discrepancy? Is /ES priced higher more often or is the opposite scenario?
Join Tom and Tony as they explain the price discrepancy between the /ES and SPX prices.
Fed pivot coming? Don’t bet on it… Oversold consumer discretionary leading the charge. AMZN freezes corporate hiring in retail biz. Leftovers - Violent moves in 10-Yr yields globally.
A big part of what we do at tastytrade is generally referred to as strategic diversification, where the simple fact that different strategies move differently is extremely beneficial. Where at any single moment in time, you likely have a combination of very different positions on - a well-timed environment for managing winners.
A big part of what we do at tastytrade is generally referred to as strategic diversification, where the simple fact that different strategies move differently is extremely beneficial. Where at any single moment in time, you likely have a combination of very different positions on - a well-timed environment for managing winners.
Anton from the Research Team discusses using the /ZB as a base in order to derive the beta values of all bond durations (in terms of % of price). The % to the right will tell you the estimated % that the bond will move when /ZB move up by 1%.
Anton from the Research Team discusses using the /ZB as a base in order to derive the beta values of all bond durations (in terms of % of price). The % to the right will tell you the estimated % that the bond will move when /ZB move up by 1%.
Today's LIVE questions discussed by the Research Team included small accounts trading... specifically how should trading in small accounts be different than trading in larger accounts? As capital grows, how should the goals of a small account trader evolve?
Today's LIVE questions discussed by the Research Team included small accounts trading... specifically how should trading in small accounts be different than trading in larger accounts? As capital grows, how should the goals of a small account trader evolve?
Inverted strangles can be tricky, especially after a move where both strikes are now ITM - tune in to learn how the spread loses or gains value, and what your best-case scenario is as the market moves over time.
Tune in for a live Q&A as well!
Inverted strangles can be tricky, especially after a move where both strikes are now ITM - tune in to learn how the spread loses or gains value, and what your best-case scenario is as the market moves over time.
Tune in for a live Q&A as well!
Liz and Jenny take advantage of the second big up move. They ratchet up ZEBRAS and close any profitable October positions. They closed or adjusted: BB, DKNG, HOOD, MU, LUV, SHOP, SLV, SQ, GOOGL, AMZN, and NKE.
Liz and Jenny take advantage of the second big up move. They ratchet up ZEBRAS and close any profitable October positions. They closed or adjusted: BB, DKNG, HOOD, MU, LUV, SHOP, SLV, SQ, GOOGL, AMZN, and NKE.
If this bear market turns around, the zebra and ratchet are two trades you want to learn. By ratcheting a winning zebra, you can keep unlimited profit potential to the upside, while reducing risk. Liz and Jenny go over a live example in PINS.
If this bear market turns around, the zebra and ratchet are two trades you want to learn. By ratcheting a winning zebra, you can keep unlimited profit potential to the upside, while reducing risk. Liz and Jenny go over a live example in PINS.
Wonder how one of the world's leading investor accelerator looks at investing in startups business that helps entrepreneurs succeed. David Cohen, Co-founder & Chairman of the world's largest business accelerator, Techstars, tells Dylan Ratigan what he looks at before investing in a company.Techstars provides access to capital, one-on-one mentorship, a worldwide network, and customized programming for early-stage entrepreneurs. Their accelerator portfolio includes more than 1000 startups with a market cap of $8.1BDavid has been an entrepreneur and investor for his entire life. He has only had one job interview in his career, successfully got that job but then quit shortly thereafter to start his first company. Since then, he has founded several companies and has invested in hundreds of startups such as Uber, Twilio, SendGrid, Pillpack, Classpass, and FullContact among others. In total, these investments have gone on to create more than $100B in value.Learn More About Techstars
Wonder how one of the world's leading investor accelerator looks at investing in startups business that helps entrepreneurs succeed. David Cohen, Co-founder & Chairman of the world's largest business accelerator, Techstars, tells Dylan Ratigan what he looks at before investing in a company.Techstars provides access to capital, one-on-one mentorship, a worldwide network, and customized programming for early-stage entrepreneurs. Their accelerator portfolio includes more than 1000 startups with a market cap of $8.1BDavid has been an entrepreneur and investor for his entire life. He has only had one job interview in his career, successfully got that job but then quit shortly thereafter to start his first company. Since then, he has founded several companies and has invested in hundreds of startups such as Uber, Twilio, SendGrid, Pillpack, Classpass, and FullContact among others. In total, these investments have gone on to create more than $100B in value.Learn More About Techstars
With TLT trading being very one-sided, mostly to the downside, it is easy to assume that its implied volatility would continue to make record levels… In reality, the TLT’s IV has been larger than its daily HV roughly 91% of this year… this means that the velocity of actual moves on a weekly and monthly basis in TLT was smaller, or in line with, what the market was anticipating.
Is the rally fall contraction doing you guys good? Victor asks. How often do you listen to the World Banks, the IMF or the United Nations? Ever read warnings, research reports? Apparently, there is a lot of them this week. Tom: "Zero percent of the time." Tom: "Are you cold today?" Victor: "It's the theme of the segment." We are on the verge of a global slowdown. IMF put out a warning to the global banks to stop with the tightening. An entity of the World Bank said the same and more. No one can predict the future of the market and the national and international economy, but these dire warnings are up for consideration. Victor, Tom and Tony dissect all these warnings and what they mean on today's Hear Me Out.
Is the rally fall contraction doing you guys good? Victor asks. How often do you listen to the World Banks, the IMF or the United Nations? Ever read warnings, research reports? Apparently, there is a lot of them this week. Tom: "Zero percent of the time." Tom: "Are you cold today?" Victor: "It's the theme of the segment." We are on the verge of a global slowdown. IMF put out a warning to the global banks to stop with the tightening. An entity of the World Bank said the same and more. No one can predict the future of the market and the national and international economy, but these dire warnings are up for consideration. Victor, Tom and Tony dissect all these warnings and what they mean on today's Hear Me Out.
Outlier moves pose a danger to short premium traders yet lead to periods of high IV that can be ideal times from selling options. Obviously we would like to better understand outlier moves, but outlier moves are by definition rare, so how can we find enough of them to learn from them? Today, Tom and Tony look at data from all of the components of the S&P 500 in order to come to robust observations about the effects of these outlier moves.
Outlier moves pose a danger to short premium traders yet lead to periods of high IV that can be ideal times from selling options. Obviously we would like to better understand outlier moves, but outlier moves are by definition rare, so how can we find enough of them to learn from them? Today, Tom and Tony look at data from all of the components of the S&P 500 in order to come to robust observations about the effects of these outlier moves.
Solana was created in 2017 to help overcome the three major obstacles that face the crypto space: decentralization, security, and scalability.
After its release in 2020, Solana has shown its ability to improve scalability, with the capacity of 50,000 transactions per second. With over 350 decentralized apps also built on Solana, it has led to the SOL token carving a place in the top 10 cryptos by market cap.However, the critics will point to SOL's token distribution and a number of network outages.
Can the pros of Solana outweigh the concerns? Join Eddie to find out!
Solana was created in 2017 to help overcome the three major obstacles that face the crypto space: decentralization, security, and scalability.
After its release in 2020, Solana has shown its ability to improve scalability, with the capacity of 50,000 transactions per second. With over 350 decentralized apps also built on Solana, it has led to the SOL token carving a place in the top 10 cryptos by market cap.However, the critics will point to SOL's token distribution and a number of network outages.
Can the pros of Solana outweigh the concerns? Join Eddie to find out!
3rd straight quarter of losses for S&P 500 and Nasdaq-100. U.K. brass pushed into humiliating U-turn. Disappointing ‘AI Day’ and Q3 delivery numbers sink TSLA. Credit issues at Credit Suisse? Leftovers - Making tracks across the U.S.
3rd straight quarter of losses for S&P 500 and Nasdaq-100. U.K. brass pushed into humiliating U-turn. Disappointing ‘AI Day’ and Q3 delivery numbers sink TSLA. Credit issues at Credit Suisse? Leftovers - Making tracks across the U.S.
Every trader runs into a loser eventually and oftentimes it’s sooner rather than later. When that happens, they are forced to decide whether to hold and hope for a rebound or close and redistribute capital somewhere else. While indexes are naturally better suited for holding, especially when that position aligns with your overall bias in the market, individual stocks are harder to hold indefinitely due to regular earnings announcements.
Every trader runs into a loser eventually and oftentimes it’s sooner rather than later. When that happens, they are forced to decide whether to hold and hope for a rebound or close and redistribute capital somewhere else. While indexes are naturally better suited for holding, especially when that position aligns with your overall bias in the market, individual stocks are harder to hold indefinitely due to regular earnings announcements.
Anton from the tastytrade Research Team walks through the difference between defensive management and offensive management tactics. How will we manage differently based on the favor of the move in the market and its effect on our positions?
Anton from the tastytrade Research Team walks through the difference between defensive management and offensive management tactics. How will we manage differently based on the favor of the move in the market and its effect on our positions?
Anton from the tastytrade Research Team receives a variety of questions today ranging from the economics of hedging, to the concept of limited risk and unlimited profit for options trading and how that affects the expectations of P/L for long options vs. short options traders... Heavy stuff today!
Anton from the tastytrade Research Team receives a variety of questions today ranging from the economics of hedging, to the concept of limited risk and unlimited profit for options trading and how that affects the expectations of P/L for long options vs. short options traders... Heavy stuff today!
Tune in to learn all about implied volatility, and how options prices drive the standard deviation range that we can solve for using the Black-Scholes Model.
They also discuss trading high vs low IV environments, per-strike IV, volatility smirks and smiles, and much more!
Tune in to learn all about implied volatility, and how options prices drive the standard deviation range that we can solve for using the Black-Scholes Model.
They also discuss trading high vs low IV environments, per-strike IV, volatility smirks and smiles, and much more!
MU still has a decent IVR with earnings out of the way. Liz and Jenny take a look at the Alpha Boost email for trade ideas in MU. They land on a very conservative OTM short put.
MU still has a decent IVR with earnings out of the way. Liz and Jenny take a look at the Alpha Boost email for trade ideas in MU. They land on a very conservative OTM short put.
Liz and Jenny take live tweets. They look at a viewers META position and talk about rolling through earnings. They roll the strangle around their SLV long stock position. They also move their DKNG position out to November.
Liz and Jenny take live tweets. They look at a viewers META position and talk about rolling through earnings. They roll the strangle around their SLV long stock position. They also move their DKNG position out to November.
In the last two months, the S&P 500 and the other major market indices have declined 15%.Historically, when we’ve seen moves of this magnitude and speed, what happened next?Will the markets continue lower or will we get a bounce?Join Tom and Tony to find out!
In the last two months, the S&P 500 and the other major market indices have declined 15%.Historically, when we’ve seen moves of this magnitude and speed, what happened next?Will the markets continue lower or will we get a bounce?Join Tom and Tony to find out!
Every tastytrader quickly learns that there is no shortage of different products, in different markets available for their strategies. One of which is the bond market that traders often play by way of TLT (ETF) or /ZB (Futures). In recent months, the historic drop that we have seen in bonds, and the cause of such a high velocity move is partly due to bond pricing mathematics - more specifically, bond convexity.Did you catch our recently on how to determine Delta/Theta levels for your portfolio?
Every tastytrader quickly learns that there is no shortage of different products, in different markets available for their strategies. One of which is the bond market that traders often play by way of TLT (ETF) or /ZB (Futures). In recent months, the historic drop that we have seen in bonds, and the cause of such a high velocity move is partly due to bond pricing mathematics - more specifically, bond convexity.Did you catch our recently on how to determine Delta/Theta levels for your portfolio?
Despite equities and bonds being at relative lows, IV for both is not any higher today than it was months ago for both bonds and stocks… in other words, there is no added fear in the market despite price continuing to selloff.
Despite equities and bonds being at relative lows, IV for both is not any higher today than it was months ago for both bonds and stocks… in other words, there is no added fear in the market despite price continuing to selloff.
在上期节目中，我们提出了两种加仓或者说合理提升资金使用量的方法：使策略变得更贵或者让策略变得更多（增加合约数量）。我们的结论是在相同情况下，交易员首先应该考虑让策略变得更贵。那么背后的原因是什么呢？这两种做法的各自的优缺点都在哪里？让我们来听一下专业交易员曾凯的分析更多信息: info.tastytrade.com/cn
In the last episode, we introduced two ways to scale up in trading when we have more capital to commit: trading bigger or trading more. We prefer trading bigger approach before adding more number of contracts. But why? What are the pros and cons of these two approaches? In this episode, Kai analyzes why traders should consider increasing the current position’s size first.
Jermal and Julia take a look at the changes a midterm election brings to markets and discuss how a few of the 11 S&P 500 sectors might be affected.
Jermal and Julia take a look at the changes a midterm election brings to markets and discuss how a few of the 11 S&P 500 sectors might be affected.
Anton from the tastytrade Research Team discusses the impact of trading currencies in a time where implied volatility is significantly above average in every currency pair. How do the risks compare between trading the British Pound (/6B) vs. something like the Canadian Dollar (/6C)? Tune in to get the Research Team’s take!
Anton from the tastytrade Research Team discusses the impact of trading currencies in a time where implied volatility is significantly above average in every currency pair. How do the risks compare between trading the British Pound (/6B) vs. something like the Canadian Dollar (/6C)? Tune in to get the Research Team’s take!
Anton and Eddie from the tastytrade Research Team tackle live questions from tastytraders via our YouTube livestream chat!
Today’s questions include: How to trade with small accounts? The differences between short puts and covered calls? How to save on buying power for smaller accounts?
Join us live every weekday at noon central time as we livestream on YouTube to get your own trading questions answered!
Anton and Eddie from the tastytrade Research Team tackle live questions from tastytraders via our YouTube livestream chat!
Today’s questions include: How to trade with small accounts? The differences between short puts and covered calls? How to save on buying power for smaller accounts?
Join us live every weekday at noon central time as we livestream on YouTube to get your own trading questions answered!
When there is a binary event in the middle of the day, there is still an inflated IV in the near-term cycles that are about to expire. The tastytrade crew explains how they like calendar and diagonal spreads for trading these events, where they can take advantage of the near-term vol that is higher than further dated cycles, while keeping risk defined.
When there is a binary event in the middle of the day, there is still an inflated IV in the near-term cycles that are about to expire. The tastytrade crew explains how they like calendar and diagonal spreads for trading these events, where they can take advantage of the near-term vol that is higher than further dated cycles, while keeping risk defined.
Anton joins Liz and Jenny and they discuss rolling in this period of high implied volatility. They look at October positions that are still OTM, but not profitable, and discuss the pros and cons of staying in October or rolling to November. They look at examples in AMZN and TLT.
Anton joins Liz and Jenny and they discuss rolling in this period of high implied volatility. They look at October positions that are still OTM, but not profitable, and discuss the pros and cons of staying in October or rolling to November. They look at examples in AMZN and TLT.
Liz and Jenny sell puts in CCL as an after earnings trade. CCL is down over 20% after its earnings announcement so Liz and Jenny sell OTM puts in the November cycle in this low-priced underlying. They also talk about the perils of not rolling out in time.
Liz and Jenny sell puts in CCL as an after earnings trade. CCL is down over 20% after its earnings announcement so Liz and Jenny sell OTM puts in the November cycle in this low-priced underlying. They also talk about the perils of not rolling out in time.
With directional and volatility risk running high, shifting your contract duration further in time could help lessen the risk in your portfolio on a daily basis. Longer dated options result in lower duration risk… compared to shorter dated options, the day-to-day risk is lower because breakevens are wider and theta decay lower. By shifting a 10 DTE strategy to a 60 DTE strategy, you would take roughly a third of the daily risk… the comparison differs depending on the expiration cycle you trade.
With directional and volatility risk running high, shifting your contract duration further in time could help lessen the risk in your portfolio on a daily basis. Longer dated options result in lower duration risk… compared to shorter dated options, the day-to-day risk is lower because breakevens are wider and theta decay lower. By shifting a 10 DTE strategy to a 60 DTE strategy, you would take roughly a third of the daily risk… the comparison differs depending on the expiration cycle you trade.
So much red. In this episode, Mike, Nick and Jermal cover the stock market meltdown and what happened during the past five trading days.
So much red. In this episode, Mike, Nick and Jermal cover the stock market meltdown and what happened during the past five trading days.
“Good data” reignites fear in the market. BOE: Foot on the accelerator and the brake? KMX misses big; CVNA and SAH fall in sympathy. PTON partners with DKS to sell equipment.
Leftovers - Top 5 US and Canadian University Endowments in 2021.
“Good data” reignites fear in the market. BOE: Foot on the accelerator and the brake? KMX misses big; CVNA and SAH fall in sympathy. PTON partners with DKS to sell equipment.
Leftovers - Top 5 US and Canadian University Endowments in 2021.
The Dow Jones, the Nasdaq and the S&P 500 are all in the red today. Anton from the tastytrade Research Team goes LIVE on our YouTube livestream and answers questions ranging from trade management to how to navigate this volatile market. Viewers discuss the types of positions they have tried and Anton chimes in to put context around current market conditions.
The Dow Jones, the Nasdaq and the S&P 500 are all in the red today. Anton from the tastytrade Research Team goes LIVE on our YouTube livestream and answers questions ranging from trade management to how to navigate this volatile market. Viewers discuss the types of positions they have tried and Anton chimes in to put context around current market conditions.
Although interest rates are correlated over different durations, yield spreads are not strongly correlated with changes in yields themselves. Therefore, it is reasonable to see a yield curve steepen or flatten in both a rising and falling rate environment.
Although interest rates are correlated over different durations, yield spreads are not strongly correlated with changes in yields themselves. Therefore, it is reasonable to see a yield curve steepen or flatten in both a rising and falling rate environment.
The tastytrade crew offers their options trade ideas for the day! Mike buys a call diagonal spread in NKE for earnings
Nick sells a put in AAPL
Katie sells an iron condor in natural gas futures /NG
Tune in to learn more with a live Q&A as well!
The tastytrade crew offers their options trade ideas for the day! Mike buys a call diagonal spread in NKE for earnings
Nick sells a put in AAPL
Katie sells an iron condor in natural gas futures /NG
Tune in to learn more with a live Q&A as well!
After today's down move in AAPL, a viewer is looking at a November Jade Lizard. Liz and Jenny compare the Jade Lizard to a Big Lizard and talk about pros and cons of trading October vs. November. NKE has earnings, they compare broken wing butterflies to a jade lizard and place a 1 DTE Jade Lizard.
After today's down move in AAPL, a viewer is looking at a November Jade Lizard. Liz and Jenny compare the Jade Lizard to a Big Lizard and talk about pros and cons of trading October vs. November. NKE has earnings, they compare broken wing butterflies to a jade lizard and place a 1 DTE Jade Lizard.
Liz and Jenny navigate the futures and futures options markets by learning live on-air. They take profits in /6B and assess the risk in their other futures positions.
Liz and Jenny navigate the futures and futures options markets by learning live on-air. They take profits in /6B and assess the risk in their other futures positions.
If you didn't know any better, Human Capital Management sounds like a description out of a Star Wars movie, as you see the hundreds of thousands of the Empire's Stormtroopers walk synchronously on their way to battle the Resistance. But in the real world, HCM, means something totally different... it's the process of hiring the right people, managing workforces effectively and optimizing productivity. SilkRoad Technology is one of the leaders in the space. CEO, Robert Tsao and Dylan Ratigan talk about the company and how they look at things much differently than their competitors.Learn More about SilkRoad Technology
If you didn't know any better, Human Capital Management sounds like a description out of a Star Wars movie, as you see the hundreds of thousands of the Empire's Stormtroopers walk synchronously on their way to battle the Resistance. But in the real world, HCM, means something totally different... it's the process of hiring the right people, managing workforces effectively and optimizing productivity. SilkRoad Technology is one of the leaders in the space. CEO, Robert Tsao and Dylan Ratigan talk about the company and how they look at things much differently than their competitors.Learn More about SilkRoad Technology
Option P/L is impacted by a number of variables including changes in underlying price, changes in IV and time. How do changes in time affect the correlation between daily option P/L and daily underlying price changes? Join Tom and Tony as they look at some statistics for short SPY options to answer this.
Option P/L is impacted by a number of variables including changes in underlying price, changes in IV and time. How do changes in time affect the correlation between daily option P/L and daily underlying price changes? Join Tom and Tony as they look at some statistics for short SPY options to answer this.
Lending and borrowing have existed for thousands of years, as people wanted the ability to trade the time value of their assets.
In the first decade of crypto’s existence, there were no platforms that facilitated loans. The few platforms that started to offer lending only used direct loans, which led to poor liquidity and a lack of users.
In the past two years, this has changed, with billions of dollars being borrowed and lended in various cryptos!
Join Tom, Tony, and Eddie as they discuss this and more on today’s episode of Alpha Bytes!
If you have requests for any topics, reach out to Julia (@FinancePhoton) or Eddie (@ERajcevic11) on Twitter! You can also submit ideas through this form: https://www.tastytrade.com/alpha-bytes-topics
Lending and borrowing have existed for thousands of years, as people wanted the ability to trade the time value of their assets.
In the first decade of crypto’s existence, there were no platforms that facilitated loans. The few platforms that started to offer lending only used direct loans, which led to poor liquidity and a lack of users.
In the past two years, this has changed, with billions of dollars being borrowed and lended in various cryptos!
Join Tom, Tony, and Eddie as they discuss this and more on today’s episode of Alpha Bytes!
If you have requests for any topics, reach out to Julia (@FinancePhoton) or Eddie (@ERajcevic11) on Twitter! You can also submit ideas through this form: https://www.tastytrade.com/alpha-bytes-topics
As investors look to develop greater awareness of the crypto market, liquidation figures are one place to look at. As liquidations increase, it seems likely that future volatility will be lower since there is less leverage in the system.
Is institutional interest in crypto subsiding? Do any of the recent upgrades to various blockchains matter!Join Eddie as he discusses all of that and more on today's episode of Crypto Concepts!
As investors look to develop greater awareness of the crypto market, liquidation figures are one place to look at. As liquidations increase, it seems likely that future volatility will be lower since there is less leverage in the system.
Is institutional interest in crypto subsiding? Do any of the recent upgrades to various blockchains matter!Join Eddie as he discusses all of that and more on today's episode of Crypto Concepts!
How do you know? You don’t. But the lows and highs of the market are to be expected. Unfortunately, the less than stellar state of the IPO market right now has investors running toward greener and albeit safer pastures. People don’t like to be devalued and neither do companies. However, fear-based decisions have no place in trading where risk is a constant. The best opportunities to be had are when a little public fear mongering keeps you on your toes. Be bold. Where there’s a downside there’s almost always an upside. On today’s Truth or Skepticism, Tom and Dylan contest this distorted point of view.
How do you know? You don’t. But the lows and highs of the market are to be expected. Unfortunately, the less than stellar state of the IPO market right now has investors running toward greener and albeit safer pastures. People don’t like to be devalued and neither do companies. However, fear-based decisions have no place in trading where risk is a constant. The best opportunities to be had are when a little public fear mongering keeps you on your toes. Be bold. Where there’s a downside there’s almost always an upside. On today’s Truth or Skepticism, Tom and Dylan contest this distorted point of view.
Join Eddie and Julia as they answer live viewer questions about building a trade and adjusting positions.
Join Eddie and Julia as they answer live viewer questions about building a trade and adjusting positions.
Mike walks through his entire portfolio and explains why he is rolling, closing or holding all of his positions. They also field questions from the YouTube chat and scan for new trade ideas!
Mike walks through his entire portfolio and explains why he is rolling, closing or holding all of his positions. They also field questions from the YouTube chat and scan for new trade ideas!
Viewers send in assumptions on 10 different products. Liz and Jenny come up with trade ideas. They look at short puts, jade lizards, strangles, and reverse big lizards in CCL, GM, DIS, /6B, MRVL, MCL, ZS, TXN, and DAL.
Viewers send in assumptions on 10 different products. Liz and Jenny come up with trade ideas. They look at short puts, jade lizards, strangles, and reverse big lizards in CCL, GM, DIS, /6B, MRVL, MCL, ZS, TXN, and DAL.
Liz and Jenny place a BBBY earnings trade. They walk through an AAPL spiked lizard. This is a neutral to bullish strategy. They also close a partial on the 2Y/10Y yield spread to take some profits off the table.
Liz and Jenny place a BBBY earnings trade. They walk through an AAPL spiked lizard. This is a neutral to bullish strategy. They also close a partial on the 2Y/10Y yield spread to take some profits off the table.
Black-Scholes is a beautiful model driven by Brownian motion, but Brownian motion is too restrictive to accurately describe the asset prices. One way to generalize Brownian motion which is widely used in science is to allow discontinuous jumps. This lies underneath some very fancy models that financial institutions employ. Building on last week, Jacob joins Tom and Tony to go over how these jump diffusion models look under the hood.
Black-Scholes is a beautiful model driven by Brownian motion, but Brownian motion is too restrictive to accurately describe the asset prices. One way to generalize Brownian motion which is widely used in science is to allow discontinuous jumps. This lies underneath some very fancy models that financial institutions employ. Building on last week, Jacob joins Tom and Tony to go over how these jump diffusion models look under the hood.
Traders constantly look for strategies that can achieve high returns such as small Iron Condors which provide over 100% annualized ROC theoretically. However, the realized long-term performance of these strategies is not even close to what we’d expect. What causes such a big gap between expected and realized return?Join Tom and Tony as they discuss the reasons as well as solutions to improve these strategies’ performance.
Traders constantly look for strategies that can achieve high returns such as small Iron Condors which provide over 100% annualized ROC theoretically. However, the realized long-term performance of these strategies is not even close to what we’d expect. What causes such a big gap between expected and realized return?Join Tom and Tony as they discuss the reasons as well as solutions to improve these strategies’ performance.
Equities remain hostage to bond markets; 2021 gains wiped out. Market-implied Fed terminal rate up to 4.85% (May 2023). Case-Shiller U.S. National Home Price Index records first drop in home prices since 2012.Leftovers - The NFL isn’t nearly as global as the NBA.
Equities remain hostage to bond markets; 2021 gains wiped out. Market-implied Fed terminal rate up to 4.85% (May 2023). Case-Shiller U.S. National Home Price Index records first drop in home prices since 2012.Leftovers - The NFL isn’t nearly as global as the NBA.
Anton estimates how bond prices change when there is a sudden rise in market rates and how this change impacts every bond future from two-year to 30-year notes.
Anton estimates how bond prices change when there is a sudden rise in market rates and how this change impacts every bond future from two-year to 30-year notes.
Anton from the tastytrade Research Team goes LIVE on our YouTube livestream and answers questions from trade management to skew to option implied volatility. Viewers discuss what types of positions they have undertaken and Anton chimes in to put context around risk and reward that exists in the current market.
Anton from the tastytrade Research Team goes LIVE on our YouTube livestream and answers questions from trade management to skew to option implied volatility. Viewers discuss what types of positions they have undertaken and Anton chimes in to put context around risk and reward that exists in the current market.
Tune in to learn about SPX, SPY, XSP, /ES and /MES - all products that track the S&P500.
These products are all different sizes and have different expiration styles, so tune in to learn more about the options around trading the S&P 500 with a live Q&A as well!
Tune in to learn about SPX, SPY, XSP, /ES and /MES - all products that track the S&P500.
These products are all different sizes and have different expiration styles, so tune in to learn more about the options around trading the S&P 500 with a live Q&A as well!
Finding your passion is the most important aspect of of starting a business. You know what they say, "love what you do and you'll never work a day in your life." Felena Hanson found her passion, supporting other female entrepreneurs through leadership roles with severalprofessional women’s organizations, including creating Hera Hub, a female-focused co-working places around the country, Ladies Who Launch, and her book, “Flight Club – Rebel, Reinvent, and Thrive: How to Launch Your Dream Business." Felena is a long-time entrepreneur and marketing maven. Her 20 year career has spanned from technology start-ups to digital marketing agencies. Some of her former clients include DirecTV, Epson, CNN, and Union Bank. Today, Felena teaches, coaches, and only does what she has a passion for, because she doesn't want to work another day in her life.Learn More About Hera Hub
Finding your passion is the most important aspect of of starting a business. You know what they say, "love what you do and you'll never work a day in your life." Felena Hanson found her passion, supporting other female entrepreneurs through leadership roles with severalprofessional women’s organizations, including creating Hera Hub, a female-focused co-working places around the country, Ladies Who Launch, and her book, “Flight Club – Rebel, Reinvent, and Thrive: How to Launch Your Dream Business." Felena is a long-time entrepreneur and marketing maven. Her 20 year career has spanned from technology start-ups to digital marketing agencies. Some of her former clients include DirecTV, Epson, CNN, and Union Bank. Today, Felena teaches, coaches, and only does what she has a passion for, because she doesn't want to work another day in her life.Learn More About Hera Hub
We can estimate how we expect bond prices to change when market rates rise by 10 basis points. With 30-year bonds affected 9x greater by the same 10 bps change as the two-year notes, every single bond future has seen a dramatic decline in its notional value because of a rapid rise in all rates along the yield curve.
We can estimate how we expect bond prices to change when market rates rise by 10 basis points. With 30-year bonds affected 9x greater by the same 10 bps change as the two-year notes, every single bond future has seen a dramatic decline in its notional value because of a rapid rise in all rates along the yield curve.
When distribution gets wide everyone stops telling you what the future is. As opposed to last week’s bold statement: “The markets will be flat for a decade going forward…” now the media is telling you that in three to five years prices will look good again. Victor wants to know what the “why” is when these mostly speculative news cycles hit the headlines. Tom notes that most people are confused or conflicted by finance and the markets, but from the business side you tend to be optimistic. If you were playing poker and declared, “I knew I was going to get the 5 high diamond flush on the river!” everyone would throw bottles at you. When you are talking about something everyone understands, say there are 500 people in the game, everyone knows its random and they know exactly what the odds are, in finance we are not that bright. This stock is going to be 13 percent higher in the next 6 months. "Are you kidding me, what does this person know? This marketplace is completely efficient!” Cathie Wood says your buying for six months to a year. We don't know what is going to happen next. No one does, including Wood. For years we perpetuated this notion that someone knows something that we don’t. People spend billions of dollars on someone's opinions, financial analysts, investment specialists etc. Let's play the percentages and just admit “I really love the pot odds of buying Roku,” like someone here at tastytrade would say. Cathie Wood or someone like that would say,“Roku is $60 based on their current model, the downside is $10 to $15, the upside is probably $50.” Tom’s whole response would be just look at volatility. Just admit that you like the pot odds here, and don’t say the ‘play’. Gen Z, game theory, probabilities, false prophets, you name it, Tom is on a roll today, but he just might be right. Check out where he, Tony, and Victor land on this episode of Hear Me Out.
When distribution gets wide everyone stops telling you what the future is. As opposed to last week’s bold statement: “The markets will be flat for a decade going forward…” now the media is telling you that in three to five years prices will look good again. Victor wants to know what the “why” is when these mostly speculative news cycles hit the headlines. Tom notes that most people are confused or conflicted by finance and the markets, but from the business side you tend to be optimistic. If you were playing poker and declared, “I knew I was going to get the 5 high diamond flush on the river!” everyone would throw bottles at you. When you are talking about something everyone understands, say there are 500 people in the game, everyone knows its random and they know exactly what the odds are, in finance we are not that bright. This stock is going to be 13 percent higher in the next 6 months. "Are you kidding me, what does this person know? This marketplace is completely efficient!” Cathie Wood says your buying for six months to a year. We don't know what is going to happen next. No one does, including Wood. For years we perpetuated this notion that someone knows something that we don’t. People spend billions of dollars on someone's opinions, financial analysts, investment specialists etc. Let's play the percentages and just admit “I really love the pot odds of buying Roku,” like someone here at tastytrade would say. Cathie Wood or someone like that would say,“Roku is $60 based on their current model, the downside is $10 to $15, the upside is probably $50.” Tom’s whole response would be just look at volatility. Just admit that you like the pot odds here, and don’t say the ‘play’. Gen Z, game theory, probabilities, false prophets, you name it, Tom is on a roll today, but he just might be right. Check out where he, Tony, and Victor land on this episode of Hear Me Out.
At tastytrade, we often set up our short premium positions by looking at the implied volatility and the expected move in the underlying. But how reliable is that expected move, and how do outlier days cluster or space out on the calendar. Today, Tom and Tony look into the data for how outlier move days in ETFs have been distributed over the past half decade.
At tastytrade, we often set up our short premium positions by looking at the implied volatility and the expected move in the underlying. But how reliable is that expected move, and how do outlier days cluster or space out on the calendar. Today, Tom and Tony look into the data for how outlier move days in ETFs have been distributed over the past half decade.
Cardano is a proof-of-stake blockchain that aims to tackle crypto's three main problems: scalability, interoperability, and sustainability. Various projects are being worked on to remedy each of these problems, with the recent Vasil hard fork focusing on improving scalability.A number of enhancements come alongside the Vasil upgrade, with the main benefit being an increase in transactions per second and a decrease in cost for transactions. As the benefits of this upgrade materialize, what could it mean for ADA and the Cardano network as a whole?Join Eddie to find out!
Cardano is a proof-of-stake blockchain that aims to tackle crypto's three main problems: scalability, interoperability, and sustainability. Various projects are being worked on to remedy each of these problems, with the recent Vasil hard fork focusing on improving scalability.A number of enhancements come alongside the Vasil upgrade, with the main benefit being an increase in transactions per second and a decrease in cost for transactions. As the benefits of this upgrade materialize, what could it mean for ADA and the Cardano network as a whole?Join Eddie to find out!
Highest VIX close since June 21st; implying 2% move at 32. Dollar at all-time highs; 10-year at 12-year highs. BOE aggressive stimulus packages sees /6B to drop to record low.
Leftovers - Most followed sports in America.
Highest VIX close since June 21st; implying 2% move at 32. Dollar at all-time highs; 10-year at 12-year highs. BOE aggressive stimulus packages sees /6B to drop to record low.
Leftovers - Most followed sports in America.
A good case can be made for either a long delta portfolio or short delta portfolio. While long delta allows you to harness the power of positive drift, short delta can serve as an effective hedge against a short premium portfolio, while also capitalizing on any high velocity down moves that materialize. Keep in mind, however, that static portfolio delta and dynamic portfolio delta will work very differently in the event of a large directional move.
A good case can be made for either a long delta portfolio or short delta portfolio. While long delta allows you to harness the power of positive drift, short delta can serve as an effective hedge against a short premium portfolio, while also capitalizing on any high velocity down moves that materialize. Keep in mind, however, that static portfolio delta and dynamic portfolio delta will work very differently in the event of a large directional move.
Anton from the tastytrade Research Team discusses the huge move in the British Pound on Friday as well as some common misconceptions that arise when trading currencies including false biases on inflation and interest rates.
Anton from the tastytrade Research Team discusses the huge move in the British Pound on Friday as well as some common misconceptions that arise when trading currencies including false biases on inflation and interest rates.
Anton from the tastytrade Research Team goes LIVE to answer viewer questions on our YouTube livestream chat. Questions of the day included how to roll tested positions in a falling market, input on currency trading, and the fallacy of information stemming from negative correlations between interest rates and the stock market.
Anton from the tastytrade Research Team goes LIVE to answer viewer questions on our YouTube livestream chat. Questions of the day included how to roll tested positions in a falling market, input on currency trading, and the fallacy of information stemming from negative correlations between interest rates and the stock market.
Diagonal spreads are directional, defined risk options trading strategies where we stagger the expirations between the long and short options.
When pushing the long option further out in time, we add more defensive flexibility to the trade, and we give ourselves more time to be right directionally.
Tune in to learn more with a live Q&A as well!
Diagonal spreads are directional, defined risk options trading strategies where we stagger the expirations between the long and short options.
When pushing the long option further out in time, we add more defensive flexibility to the trade, and we give ourselves more time to be right directionally.
Tune in to learn more with a live Q&A as well!
On the “Hear Me Out” episode from September 20th., Tom and Victor discussed Stanley Druckenmiller’s statement that “There's a high probability in my mind that the market, at best, is going to be kind of flat for 10 years...”This statement shook investors who have watched the markets and their long stock portfolios drop by 20% or more year-to-date.Well then, what’s the point of staying in the markets if we won’t go anywhere for a decade? Why would I deploy my capital in the markets when I could just go to bonds for a guaranteed 4% risk-free rate?Join Tom and Tony to find out!
On the “Hear Me Out” episode from September 20th., Tom and Victor discussed Stanley Druckenmiller’s statement that “There's a high probability in my mind that the market, at best, is going to be kind of flat for 10 years...”This statement shook investors who have watched the markets and their long stock portfolios drop by 20% or more year-to-date.Well then, what’s the point of staying in the markets if we won’t go anywhere for a decade? Why would I deploy my capital in the markets when I could just go to bonds for a guaranteed 4% risk-free rate?Join Tom and Tony to find out!
Leveraged Funds such as TQQQ, SSO, or SPXL have gained popularity in recent months, as traders look to capitalize on the large directional moves in the market. By trading a product that offers a 2x or 3x return on the underlying index itself, a move in your favor can pay off handsomely with quick profits. However, with the daily reset in most of these funds, any type of marketplace cyclicality whittles down the price over time, which will make it increasingly difficult to make any type of profit on the position.Did you catch our recently on how to determine Delta/Theta levels for your portfolio?
Leveraged Funds such as TQQQ, SSO, or SPXL have gained popularity in recent months, as traders look to capitalize on the large directional moves in the market. By trading a product that offers a 2x or 3x return on the underlying index itself, a move in your favor can pay off handsomely with quick profits. However, with the daily reset in most of these funds, any type of marketplace cyclicality whittles down the price over time, which will make it increasingly difficult to make any type of profit on the position.Did you catch our recently on how to determine Delta/Theta levels for your portfolio?
Anton joins Tom and Tony to provide context about the huge price swings and down moves that the equity markets experienced last week. The move last week ranks among the top 99th. percentile for 4-day selloffs, but market volatility (the fear factor) was more calm than expected.
Anton joins Tom and Tony to provide context about the huge price swings and down moves that the equity markets experienced last week. The move last week ranks among the top 99th. percentile for 4-day selloffs, but market volatility (the fear factor) was more calm than expected.
As the markets make new lows, buying power in trading accounts may be tough to come by. Anton from the tastytrade Research Team discusses how to reduce capital usage in accounts without closing or significantly changing existing positions.
As the markets make new lows, buying power in trading accounts may be tough to come by. Anton from the tastytrade Research Team discusses how to reduce capital usage in accounts without closing or significantly changing existing positions.
Anton from the tastytrade Research Team answers many questions on rolling positions, defensive management, and legging out of trades.
Anton from the tastytrade Research Team answers many questions on rolling positions, defensive management, and legging out of trades.
9月13日当日美股大幅度下挫，各大指数跌幅均超过4%，纳指更是当仁不让狂泻5%。市场有这样的反应其背后导火索是什么？这样大的跌幅从历史来看大概处于什么样的水平？市场恐慌情绪又如何？我们来听交易员曾凯如何看待这次下跌。 更多信息: info.tastytrade.com/cn
The market surprised the market on Sep 13 with a 4% down in S&P, DOW, and a massive 5% in Nasdaq. What caused this movement? How was it compared to other historical events? And what about the fear level in the market? Join Kai as he diagnoses the market on Sep 13, 2022
A covered call is a popular options trading strategy that involves 100 shares of long stock and a short call that is sold against the shares to reduce cost basis and improve the probability of success for the trade overall.
Tune in to learn all about opening trade criteria, defensive management, and profit targets!
A covered call is a popular options trading strategy that involves 100 shares of long stock and a short call that is sold against the shares to reduce cost basis and improve the probability of success for the trade overall.
Tune in to learn all about opening trade criteria, defensive management, and profit targets!
Liz and Jenny talk about trading futures. They go over the various products found on the tastyworks futures watch list. They talk pros and cons, and how they prefer options on the futures, but the micros are nice when taking a directional shot or for a scaled down pairs trade.
Liz and Jenny talk about trading futures. They go over the various products found on the tastyworks futures watch list. They talk pros and cons, and how they prefer options on the futures, but the micros are nice when taking a directional shot or for a scaled down pairs trade.
Over the last 30 years, you could expect a streak of at least three 1% days to the same direction to happen less than 1% of the time, half being up-day streaks and half being down-day streaks.The day after the end of a large down streak usually results in a very above-average up day (+2.3%), whereas the day after the end of a large up streak results in a completely average down day.
Over the last 30 years, you could expect a streak of at least three 1% days to the same direction to happen less than 1% of the time, half being up-day streaks and half being down-day streaks.The day after the end of a large down streak usually results in a very above-average up day (+2.3%), whereas the day after the end of a large up streak results in a completely average down day.
Looks like VIX futures are going into backwardation, thanks to the Federal Reserve, the European Central Bank, the Bank of England, and a handful of others that announced that they would raise rates on Thursday to combat inflation. Tom, Tony, and Jermal look at the consequences of such a rate hike and the influence it has had on the past five trading days.
Looks like VIX futures are going into backwardation, thanks to the Federal Reserve, the European Central Bank, the Bank of England, and a handful of others that announced that they would raise rates on Thursday to combat inflation. Tom, Tony, and Jermal look at the consequences of such a rate hike and the influence it has had on the past five trading days.
Slew of global central banks hike rates. Japan intervenes to support the Yen. TSLA recalls 1.1 million vehicles over window issue.Leftovers - Popular fast food chains.
Slew of global central banks hike rates. Japan intervenes to support the Yen. TSLA recalls 1.1 million vehicles over window issue.Leftovers - Popular fast food chains.
Probability of profit (POP) is a metric we use often to gauge the probability of a certain trade expiring at a profit of at least $0.01.
Like any other metric, there is a useful way to use and interpret POP and also many not-so-useful ways to use it. How should we use this metric to our advantage while steering clear of the pitfalls?
Probability of profit (POP) is a metric we use often to gauge the probability of a certain trade expiring at a profit of at least $0.01.
Like any other metric, there is a useful way to use and interpret POP and also many not-so-useful ways to use it. How should we use this metric to our advantage while steering clear of the pitfalls?
Today's LIVE questions revolved around rolling positions and the nature and tradeoff of rolling untested sides of trades defensively. What do we do in a market that continues to sell off?
Today's LIVE questions revolved around rolling positions and the nature and tradeoff of rolling untested sides of trades defensively. What do we do in a market that continues to sell off?
The tastytrade crew offers their options trade ideas for the day! Mike buys a call diagonal spread in FDX for earnings
Nick buys a call broken wing butterfly in XOP
Katie buys a call zebra in AAL
Tune in to learn more with a live Q&A as well!
The tastytrade crew offers their options trade ideas for the day! Mike buys a call diagonal spread in FDX for earnings
Nick buys a call broken wing butterfly in XOP
Katie buys a call zebra in AAL
Tune in to learn more with a live Q&A as well!
Buying options? Anton joins Liz and Jenny and they discuss the binary event of the Fed announcement yesterday. They talk about when and how they trade zero DTE option contracts.
Buying options? Anton joins Liz and Jenny and they discuss the binary event of the Fed announcement yesterday. They talk about when and how they trade zero DTE option contracts.
For the past month, equities have continued their path lower, whether it be due to rates, inflation, or geopolitical tension. With the Fed seemingly not ready to take their foot off the gas when it comes to raising rates, it’s possible that we are seeing more and more stocks approach 52-week lows.
How many stocks are within touching distance of their 52-week lows now? How does that compare to prior selloffs? Join Tom and Tony to find out!
For the past month, equities have continued their path lower, whether it be due to rates, inflation, or geopolitical tension. With the Fed seemingly not ready to take their foot off the gas when it comes to raising rates, it’s possible that we are seeing more and more stocks approach 52-week lows.
How many stocks are within touching distance of their 52-week lows now? How does that compare to prior selloffs? Join Tom and Tony to find out!
Game theory is a branch of mathematics that analyzes strategic decision-making among competitive agents. Game theory has applications in a broad range of fields including economics, business, and finance. Today, let’s discuss game theory and how it applies to trading.If you have requests for any topics, reach out to Julia (@FinancePhoton) or Eddie (@ERajcevic11) on Twitter! You can also submit ideas through this form: https://www.tastytrade.com/alpha-bytes-topics
Game theory is a branch of mathematics that analyzes strategic decision-making among competitive agents. Game theory has applications in a broad range of fields including economics, business, and finance. Today, let’s discuss game theory and how it applies to trading.If you have requests for any topics, reach out to Julia (@FinancePhoton) or Eddie (@ERajcevic11) on Twitter! You can also submit ideas through this form: https://www.tastytrade.com/alpha-bytes-topics
Aave is a DeFi protocol that allows people to borrow and lend crypto without the need for an intermediary. By utilizing smart contracts to pool supply and provide to borrowers, Aave is able to greatly decrease the time to create a loan as well as the costs associated with them.While they are similar platforms, there are some key differences between Aave and Compound. From each platforms' native tokens to the network support provided, each has their own pros and cons.
Aave is a DeFi protocol that allows people to borrow and lend crypto without the need for an intermediary. By utilizing smart contracts to pool supply and provide to borrowers, Aave is able to greatly decrease the time to create a loan as well as the costs associated with them.While they are similar platforms, there are some key differences between Aave and Compound. From each platforms' native tokens to the network support provided, each has their own pros and cons.
The Fed raised rates. Then suddenly there was a big sell-off in the markets, adding to Tom's argument that knowing the news cycle in advance has little to no effect on an efficient marketplace. Systems are put in place for a reason. But does that same efficiency push companies to establish monopolies to survive or is this an antiquated remnant of business practices that go back to the Industrial Revolution? Can it even sustain itself in a highly capitalistic world that is rife with competition, and does it even apply to today’s modern markets?
Tom equates monopolizing an industry as the go-to strategy of the big dumb animal (elephantine monopolies) - and the disruptors are the small but wily field mice. Those creative thinkers and entrepreneurs who live to disrupt and shake up those massive conglomerates to their core. And they often do. Those that try to hoard the entire pie instead of sharing with the masses are setting themselves up for extinction.
Those innovators (field mice) will eventually and quite purposefully give them a run for their trillion-dollar money. Is the rate of innovation and subsequent lowering of barriers to entry forcing companies to seek a monopolistic advantage in order to insulate themselves from the competition? Insulation is, at best, a myth and, at worst, a house of cards. Tune in and hear Tom and Dylan figure it all out on this week's episode.
Anton focuses on the zero DTE option IV and skew present before the Fed announcement that will be released at 1pm. There is no skew and very high premium present. How did you trade today's move?
Anton focuses on the zero DTE option IV and skew present before the Fed announcement that will be released at 1pm. There is no skew and very high premium present. How did you trade today's move?
Today’s viewer questions were focused on position management, rolling defensively, and previewing the Fed move at 1pm that day!
Today’s viewer questions were focused on position management, rolling defensively, and previewing the Fed move at 1pm that day!
When it comes to short call components with call diagonal and covered call trades, we can offensively or defensively roll calls depending on our goals.
Keeping our breakeven price in mind is imperative for both of these strategies, so we ensure we can still profit in the trade cycle we're in if we get the favorable move we're looking for.
Tune in to learn more with a live Q&A as well!
When it comes to short call components with call diagonal and covered call trades, we can offensively or defensively roll calls depending on our goals.
Keeping our breakeven price in mind is imperative for both of these strategies, so we ensure we can still profit in the trade cycle we're in if we get the favorable move we're looking for.
Tune in to learn more with a live Q&A as well!
The exponential distribution describes how long things take to happen when they are driven by many separate independent factors, such as market activity. It is also one of the best understood distributions in modern probability. Today, Jacob joins Tom and Tony to explain where this distribution comes from, why it describes so many different aspects of the market, and what its properties mean for our trading decisions.
The exponential distribution describes how long things take to happen when they are driven by many separate independent factors, such as market activity. It is also one of the best understood distributions in modern probability. Today, Jacob joins Tom and Tony to explain where this distribution comes from, why it describes so many different aspects of the market, and what its properties mean for our trading decisions.
One of the most significant risks to premium sellers is the directional risk. A neutral strategy would benefit the most from the decreasing volatility without underlying price movement. Unfortunately, the underlying price constantly moves, so let’s analyze how much the directional risk impacts our profitability across different strategies.
One of the most significant risks to premium sellers is the directional risk. A neutral strategy would benefit the most from the decreasing volatility without underlying price movement. Unfortunately, the underlying price constantly moves, so let’s analyze how much the directional risk impacts our profitability across different strategies.
Ford issues warning about inflation pushing costs higher. MSTR buys more BTC despite being underwater. Swedish central bank hikes a record 100 bps.Leftovers - Where D\does ‘Shrinkflation’ exist?
Ford issues warning about inflation pushing costs higher. MSTR buys more BTC despite being underwater. Swedish central bank hikes a record 100 bps.Leftovers - Where D\does ‘Shrinkflation’ exist?
Pete and James take a look at two ways traders can trade gold utilizing futures. The first is the larger /GC contract, controlling 100 troy ounces of gold. The second is the micro contracts, /MGC, which control only 10 ounces of gold. The pair go on to examine the contract specifications of each contract as well as the trading hours and listed contract months. To wrap up, they run through several trade examples.
Pete and James take a look at two ways traders can trade gold utilizing futures. The first is the larger /GC contract, controlling 100 troy ounces of gold. The second is the micro contracts, /MGC, which control only 10 ounces of gold. The pair go on to examine the contract specifications of each contract as well as the trading hours and listed contract months. To wrap up, they run through several trade examples.
Micro ether and bitcoin futures are becoming more liquid, providing investors the opportunity to hedge their long positions with smaller futures contracts.In IRA accounts, selling puts is a popular way to have a bullish bias while collecting additional income. However, traders must be aware that short puts are cash secured in an IRA account.When placing defined risk trades, the research team tends to not manage losers all that much, since the risk is defined upon entry. This is up to individual preference however!
Micro ether and bitcoin futures are becoming more liquid, providing investors the opportunity to hedge their long positions with smaller futures contracts.In IRA accounts, selling puts is a popular way to have a bullish bias while collecting additional income. However, traders must be aware that short puts are cash secured in an IRA account.When placing defined risk trades, the research team tends to not manage losers all that much, since the risk is defined upon entry. This is up to individual preference however!
Short call options are bearish, undefined risk trades. Typically, Mike and Nick prefer to keep risk defined for bearish trades, but the concepts within this segment can be applied to covered calls, call diagonal spreads, and much more.
Learn about short call trade entry, defensive management, and profit targets today with a live Q&A as well!
Short call options are bearish, undefined risk trades. Typically, Mike and Nick prefer to keep risk defined for bearish trades, but the concepts within this segment can be applied to covered calls, call diagonal spreads, and much more.
Learn about short call trade entry, defensive management, and profit targets today with a live Q&A as well!
People think purpose-driven companies and entrepreneurs aren't sexy and lucrative businesses. One of the most successful venture investor in the country begs to differ. Pete Wilkins has participated in two IPO-ed startups for more than $2.8B before the age of thirty. Not too shabby. He's the author of Purpose First Entrepreneur. The book and online resources offers new approaches to help entrepreneurs discover their passion and purpose and turn it into a thriving business. A must read and a great tutorial for anyone interested in starting or growing a business.Learn More about HPA and Angel Investing
People think purpose-driven companies and entrepreneurs aren't sexy and lucrative businesses. One of the most successful venture investor in the country begs to differ. Pete Wilkins has participated in two IPO-ed startups for more than $2.8B before the age of thirty. Not too shabby. He's the author of Purpose First Entrepreneur. The book and online resources offers new approaches to help entrepreneurs discover their passion and purpose and turn it into a thriving business. A must read and a great tutorial for anyone interested in starting or growing a business.Learn More about HPA and Angel Investing
Although interest rates are correlated over different durations, yield spreads are not strongly correlated with changes in yields themselves. Therefore, it is reasonable to see a yield curve steepen or flatten in both a rising and falling rate environment. Catch Anton and Tom discuss this newfound correlation on today’s Market Measures.
Although interest rates are correlated over different durations, yield spreads are not strongly correlated with changes in yields themselves. Therefore, it is reasonable to see a yield curve steepen or flatten in both a rising and falling rate environment. Catch Anton and Tom discuss this newfound correlation on today’s Market Measures.
Tom doesn't want to discuss the erratic bond market or Germany's PPI numbers and could care less about economic data points outside of the US. Victor digresses. Victor and Tom go it alone today (please send Bat a get well message on Twitter he’s feeling under the weather today) as they debate why so many traders who have taken losses in the market for the last couple of years are ready to throw in the towel so quickly. There is so much risk adversity in a game that should be about opportunity. What is the reasoning? It appears that legendary investor Stanley Druckenmiller, might be the culprit of some of this doubt. After all, he worked for George Soros at Quantum Fund in the '80s and '90s and allegedly "wrecked" the British Pound Sterling yielding an impressive $1 billion in profits. He has been touted by the media as "never ever being wrong"... Druckenmiller, an unabashed contrarian, bear-market enthusiast, and practitioner of macro investing like Tom, recently made a bold statement in an interview saying: "There is a high probability that we could be facing a decade of low to no returns in the equity market." Shaking up traders everywhere who have already lost faith in the markets while they continue to lose profit. Tom thinks this prediction is mostly nonsense; how would Druckenmiller even know? No one really knows. Simply put, it's not actionable, and it means nothing. Trading is about opportunity. Traders see opportunity in the best and worst of times.
Victor has two thoughts on this:
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If you are taking too much pain, it just means you are overexposed. You are too large with too much notional exposure. In other words, you don't have an understanding of your portfolio beta.
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It's counterintuitive. You are obviously comfortable buying at all-time highs, but when you lose by 20 percent, you want to take your ball and go home. He doesn't understand why someone would have a different appetite for taking risks in this market than they did 6 to 12 months ago. You might change direction, but why would you ever think about leaving a marketplace that just de-risked and de-levered? Good question.
Tom thinks the opportunity isn't as straightforward as it would seem. The investors that are running scared have never experienced a great deal of risk, and you can't live or die on risk-free opportunities alone. And in lies the crux of the matter. See what they decide the answer is on today's Hear Me Out.
Tom doesn't want to discuss the erratic bond market or Germany's PPI numbers and could care less about economic data points outside of the US. Victor digresses. Victor and Tom go it alone today (please send Bat a get well message on Twitter he’s feeling under the weather today) as they debate why so many traders who have taken losses in the market for the last couple of years are ready to throw in the towel so quickly. There is so much risk adversity in a game that should be about opportunity. What is the reasoning? It appears that legendary investor Stanley Druckenmiller, might be the culprit of some of this doubt. After all, he worked for George Soros at Quantum Fund in the '80s and '90s and allegedly "wrecked" the British Pound Sterling yielding an impressive $1 billion in profits. He has been touted by the media as "never ever being wrong"... Druckenmiller, an unabashed contrarian, bear-market enthusiast, and practitioner of macro investing like Tom, recently made a bold statement in an interview saying: "There is a high probability that we could be facing a decade of low to no returns in the equity market." Shaking up traders everywhere who have already lost faith in the markets while they continue to lose profit. Tom thinks this prediction is mostly nonsense; how would Druckenmiller even know? No one really knows. Simply put, it's not actionable, and it means nothing. Trading is about opportunity. Traders see opportunity in the best and worst of times.
Victor has two thoughts on this:
-
If you are taking too much pain, it just means you are overexposed. You are too large with too much notional exposure. In other words, you don't have an understanding of your portfolio beta.
-
It's counterintuitive. You are obviously comfortable buying at all-time highs, but when you lose by 20 percent, you want to take your ball and go home. He doesn't understand why someone would have a different appetite for taking risks in this market than they did 6 to 12 months ago. You might change direction, but why would you ever think about leaving a marketplace that just de-risked and de-levered? Good question.
Tom thinks the opportunity isn't as straightforward as it would seem. The investors that are running scared have never experienced a great deal of risk, and you can't live or die on risk-free opportunities alone. And in lies the crux of the matter. See what they decide the answer is on today's Hear Me Out.
Wild markets are a time of increased profitability and increased risk. When those large daily moves come, it can feel like they happen very rapidly. Today, Jacob joins Tom to check the data and see how large daily moves have been spaced out on the calendar.
Wild markets are a time of increased profitability and increased risk. When those large daily moves come, it can feel like they happen very rapidly. Today, Jacob joins Tom to check the data and see how large daily moves have been spaced out on the calendar.
Compound protocol is a borrowing and lending platform created to allow users to earn a yield on their crypto, or borrow crypto to take short positions. Compound is built on the Ethereum blockchain, meaning that it will only work for tokens which are native to the Ethereum blockchain, otherwise known as ERC-20 tokens.Rather than borrowers and lenders having to find one another, Compound makes it simple by aggregating supply which borrowers can then pull from. For those looking to learn more about how Compound works, check out the Compound's whitepaper!
Compound protocol is a borrowing and lending platform created to allow users to earn a yield on their crypto, or borrow crypto to take short positions. Compound is built on the Ethereum blockchain, meaning that it will only work for tokens which are native to the Ethereum blockchain, otherwise known as ERC-20 tokens.Rather than borrowers and lenders having to find one another, Compound makes it simple by aggregating supply which borrowers can then pull from. For those looking to learn more about how Compound works, check out the Compound's whitepaper!
Chances for 75 bps rate hike on 9/21 at 86%.Will there be other warnings like FDX?
Biden: Pandemic is over; MRNA, BNTX & NVAX drop.Leftovers - Who’s In The Office These Days?
Chances for 75 bps rate hike on 9/21 at 86%.Will there be other warnings like FDX?
Biden: Pandemic is over; MRNA, BNTX & NVAX drop.Leftovers - Who’s In The Office These Days?
Many of us have been trading the yield curve since interest rates began to rise. The goal was to profit off the steepening of the yield curve. Unfortunately, we have seen the combination of rising interest rates coupled with an inverting yield curve...how do we adjust our biases to conform with our trade?
Many of us have been trading the yield curve since interest rates began to rise. The goal was to profit off the steepening of the yield curve. Unfortunately, we have seen the combination of rising interest rates coupled with an inverting yield curve...how do we adjust our biases to conform with our trade?
How many down days can we see? Anton from the Research Team jumps on our livestream to answer viewer question real-time. Want to have your question answered? Join Research Specials LIVE every day at noon central time to ask the Research Team a question LIVE.
How many down days can we see? Anton from the Research Team jumps on our livestream to answer viewer question real-time. Want to have your question answered? Join Research Specials LIVE every day at noon central time to ask the Research Team a question LIVE.
The short put is a popular neutral-bullish trading strategy because traders can be profitable on a bullish, neutral, or even slightly bearish move in the stock price. As long as the short put expires out-of-the-money and worthless, max profit is realized.
Tune in to learn how to open, defend and close short put positions with a live Q&A as well!
The short put is a popular neutral-bullish trading strategy because traders can be profitable on a bullish, neutral, or even slightly bearish move in the stock price. As long as the short put expires out-of-the-money and worthless, max profit is realized.
Tune in to learn how to open, defend and close short put positions with a live Q&A as well!
Spreads are a great strategy for traders with smaller accounts and/or a lower appetite for risk. We discussed the mechanics behind vertical spreads in great detail in this Options Jive. In the past, we’ve looked at how adjusting the width of vertical spreads can impact the overall performance of a trade. But, how does the width of a spread affect the volatility that we may see on a trade by trade basis? Is there a “sweet spot” for maximizing performance and minimizing volatility?Join Tom and Tony to find out!
Spreads are a great strategy for traders with smaller accounts and/or a lower appetite for risk. We discussed the mechanics behind vertical spreads in great detail in this Options Jive. In the past, we’ve looked at how adjusting the width of vertical spreads can impact the overall performance of a trade. But, how does the width of a spread affect the volatility that we may see on a trade by trade basis? Is there a “sweet spot” for maximizing performance and minimizing volatility?Join Tom and Tony to find out!
At tasty, we often look at a number of statistics for the various strategies we conduct studies on.We focus on average and median P/L, outlier losses (often using conditional value at risk, or CVaR), and win rates. Another metric that we often include, but may be harder to interpret, is P/L volatility.In today’s segment, let’s dive into what P/L volatility is and how traders can utilize it!
At tasty, we often look at a number of statistics for the various strategies we conduct studies on.We focus on average and median P/L, outlier losses (often using conditional value at risk, or CVaR), and win rates. Another metric that we often include, but may be harder to interpret, is P/L volatility.In today’s segment, let’s dive into what P/L volatility is and how traders can utilize it!
On today's YouTube Livestream, we answer as many of your questions as we can! These include:Should you go inverted or recenter a Short Strangle?How does delta measure option price change and probability?As premium sellers, do our winners have to be smaller than our losers?
On today's YouTube Livestream, we answer as many of your questions as we can! These include:Should you go inverted or recenter a Short Strangle?How does delta measure option price change and probability?As premium sellers, do our winners have to be smaller than our losers?
On today’s episode of Splash into Futures with Pete and Anton, we discover new ways that we can defensively manage positions and explain the trade-offs between each approach. Questions discussed include: what’s the point of rolling? What happens when you roll vs when you don’t?
On today’s episode of Splash into Futures with Pete and Anton, we discover new ways that we can defensively manage positions and explain the trade-offs between each approach. Questions discussed include: what’s the point of rolling? What happens when you roll vs when you don’t?
Anton from the tastytrade Research Team joins the tastytrade YouTube livestream to answer questions on everything trading related asked by viewers like you!
Anton from the tastytrade Research Team joins the tastytrade YouTube livestream to answer questions on everything trading related asked by viewers like you!
投资组合管理中的资金分配管理永远都是最重要的话题之一，也是非常难解决的问题。对于期权交易账户就更是如此。那么如果我们有了更多的资金可以使用，在现有的投资组合之上我们应该如何有有效的追加仓位呢？我们应该在原有的策略之上按比例增加合约数量么？还是我们可以想办法改变策略本身？这期节目曾凯就来给大家介绍有效的加仓的一些方法 更多信息: info.tastytrade.com/cn
Capital management is always an essential topic in portfolio management. It is also a complex problem that every trader needs to solve, especially options traders. So how to scale up effectively? Should we increase the number of contracts based on our current portfolio? Or should we try to change the strategies we use? In this episode, Kai introduces how to use our additional capital effectively.
Liz, Jenny, and Anton talk trips and the whipsaw of the current market environment that we are living in. He brings up some pretty interesting findings.
Liz, Jenny, and Anton talk trips and the whipsaw of the current market environment that we are living in. He brings up some pretty interesting findings.
Nishant is a former software engineer turned full-time trader. In today's Rising Star interview discover how he got interested in trading, what drew him to options trading, and what his trading routine looks like. Plus, Nishant shares how he took a small account and grew it to be over $200k, why he prefers to swing trade, and what he likes to do to offset losses and keep his trading skills sharp.
Nishant is a former software engineer turned full-time trader. In today's Rising Star interview discover how he got interested in trading, what drew him to options trading, and what his trading routine looks like. Plus, Nishant shares how he took a small account and grew it to be over $200k, why he prefers to swing trade, and what he likes to do to offset losses and keep his trading skills sharp.
How many times should we expect to have an up day versus a down day? On any given month, the average expectation of the ratio of up/down days is 53% to 47%.
When deviating from that expectation, it is very reasonable to see months that have as few as 40% of and as many as 70% of the days be green. That can be loosely considered a one standard deviation range for the proportion of up days in a one-month period.
How many times should we expect to have an up day versus a down day? On any given month, the average expectation of the ratio of up/down days is 53% to 47%.
When deviating from that expectation, it is very reasonable to see months that have as few as 40% of and as many as 70% of the days be green. That can be loosely considered a one standard deviation range for the proportion of up days in a one-month period.
An upside surprise in CPI sent stocks, commodities and cryptos spiraling. Meanwhile yields surge ever higher. Join Tom, Tony and Jermal cover the past five trading days on This Week in Stocks.
An upside surprise in CPI sent stocks, commodities and cryptos spiraling. Meanwhile yields surge ever higher. Join Tom, Tony and Jermal cover the past five trading days on This Week in Stocks.
Providing a new model for a creative/ad agency is not an easy thing to do, but OKRP which was founded by Tom O’Keefe, Nick Paul and Matt Reinhard in 2013 by bringing in the thinking of senior level agency executives with the agility of a start-up. They call this “big brand creativity, start-up ingenuity. “ After years at large holding company agencies, the three founders believed there was a need in the marketplace for a different kind of agency. They pride themselves on being nimble, quick, and prolific.More About OKRP
Retail sales surprisingly advance. Gold drops to lowest level since April 2020. ADBE tumbles on acquisition; biggest decline in two years.Leftovers - World’s Most Valuable Sports Teams
Retail sales surprisingly advance. Gold drops to lowest level since April 2020. ADBE tumbles on acquisition; biggest decline in two years.Leftovers - World’s Most Valuable Sports Teams
When we trade futures, there is always an opportunity cost to the trade for both sides involved...one of the most fascinating things about futures trading is that there IS an interest rate that gets factored into all trades even if it not a line item on your brokerage statement! Anton discusses what interest rate gets factored in, why there is an interest rate to begin with, and the benefit of generally lower financing costs you get when trading futures.
When we trade futures, there is always an opportunity cost to the trade for both sides involved...one of the most fascinating things about futures trading is that there IS an interest rate that gets factored into all trades even if it not a line item on your brokerage statement! Anton discusses what interest rate gets factored in, why there is an interest rate to begin with, and the benefit of generally lower financing costs you get when trading futures.
Today's questions involve topics on leveraged ETFs, what happens when you roll defensively, and many more! Anton from the tastytrade Research Team connects with tastytraders from around the world on our YouTube livestream chat. Ask your questions every weekday at 12pm central time!
Today's questions involve topics on leveraged ETFs, what happens when you roll defensively, and many more! Anton from the tastytrade Research Team connects with tastytraders from around the world on our YouTube livestream chat. Ask your questions every weekday at 12pm central time!
The tastytrade crew offers their options trade ideas for the day! Mike sells a put spread in ADBE
Katie buys the Micro Canadian Dollar contract /MCD
Tune in to learn more with a live Q&A as well!
The tastytrade crew offers their options trade ideas for the day! Mike sells a put spread in ADBE
Katie buys the Micro Canadian Dollar contract /MCD
Tune in to learn more with a live Q&A as well!
It's expiration week and the /S2Y & /S10Y have to be rolled. Liz and Jenny compare using the small exchange products to the big dogs, /ZN & /ZT, when trading the yield curve. They decide to stick with the smalls, but add another contract since this inversion seems to be hitting an extreme.
It's expiration week and the /S2Y & /S10Y have to be rolled. Liz and Jenny compare using the small exchange products to the big dogs, /ZN & /ZT, when trading the yield curve. They decide to stick with the smalls, but add another contract since this inversion seems to be hitting an extreme.
When opening an undefined risk trade, the BPR is used to determine whether the position is appropriate for a given account size and to estimate the max loss of the trade. However, this value typically doesn’t remain static throughout the duration of the trade. Join Tom and Tony as they discuss how dynamic BPR is on average.
When opening an undefined risk trade, the BPR is used to determine whether the position is appropriate for a given account size and to estimate the max loss of the trade. However, this value typically doesn’t remain static throughout the duration of the trade. Join Tom and Tony as they discuss how dynamic BPR is on average.
Decentralized Exchanges (DEXs) are crypto exchanges that use smart contracts to route orders without using a financial intermediary. The contracts themselves are complex, but their goals are simple: to provide liquidity to crypto traders.DEXs exist on any blockchain that support smart contracts, such as Ethereum, Solana, and Cardano. Are they in a position to replace centralized exchanges? Or are the risks too great?Join Tom, Tony, and Eddie as they discuss this and more on today’s episode of Alpha Bytes!If you have requests for any topics, reach out to Julia (@FinancePhoton) or Eddie (@ERajcevic11) on Twitter! You can also submit ideas through this form
Decentralized Exchanges (DEXs) are crypto exchanges that use smart contracts to route orders without using a financial intermediary. The contracts themselves are complex, but their goals are simple: to provide liquidity to crypto traders.DEXs exist on any blockchain that support smart contracts, such as Ethereum, Solana, and Cardano. Are they in a position to replace centralized exchanges? Or are the risks too great?Join Tom, Tony, and Eddie as they discuss this and more on today’s episode of Alpha Bytes!If you have requests for any topics, reach out to Julia (@FinancePhoton) or Eddie (@ERajcevic11) on Twitter! You can also submit ideas through this form
As the Ethereum Merge approaches completion, many traders are still looking for opportunity. Do I buy ether? Do I trade the futures? Are there options available?There are a number of different ways that traders can play the Merge, with /MET providing both directions and good liquidity. The Merge is just the start of a series of significant upgrades to the Ethereum network, so join Eddie as he breaks down the ins and outs of trading the Merge on today's episode of Crypto Concepts!
As the Ethereum Merge approaches completion, many traders are still looking for opportunity. Do I buy ether? Do I trade the futures? Are there options available?There are a number of different ways that traders can play the Merge, with /MET providing both directions and good liquidity. The Merge is just the start of a series of significant upgrades to the Ethereum network, so join Eddie as he breaks down the ins and outs of trading the Merge on today's episode of Crypto Concepts!
If we have an obedient capital system, the market already knows what pricing will look like because of its liquidity. Apple or Volkswagen already know what will happen, even in the bond market. Dylan wants to get to the heart of the interest rate conundrum. After all, the balance of the marketplace is set to the tune of trillions of dollars, and it may not integrate into the pricing of future expectations and the opinions of the Federal Reserve. However, according to Dylan, how the FOMC sets the Fed funds rate can be a reference point for the sentiment and expectations relative to growth, inflation, housing, and employment. Tom is tired. So very tired. He's been pounding this topic for eight years. It doesn't matter what the Fed thinks, which is why we have a free market system. Tom tries to explain by using a sinking boat analogy with all the Federal Reserve governors at the helm (this may or may not be a Freudian slip). In his opinion, even this event, as sad as it is, would still have no consequences on pricing in a free market system. The FED chases the markets and then sets interest rates accordingly, not the other way around. It's going to be a scorcher on today's segment. Tune in.
If we have an obedient capital system, the market already knows what pricing will look like because of its liquidity. Apple or Volkswagen already know what will happen, even in the bond market. Dylan wants to get to the heart of the interest rate conundrum. After all, the balance of the marketplace is set to the tune of trillions of dollars, and it may not integrate into the pricing of future expectations and the opinions of the Federal Reserve. However, according to Dylan, how the FOMC sets the Fed funds rate can be a reference point for the sentiment and expectations relative to growth, inflation, housing, and employment. Tom is tired. So very tired. He's been pounding this topic for eight years. It doesn't matter what the Fed thinks, which is why we have a free market system. Tom tries to explain by using a sinking boat analogy with all the Federal Reserve governors at the helm (this may or may not be a Freudian slip). In his opinion, even this event, as sad as it is, would still have no consequences on pricing in a free market system. The FED chases the markets and then sets interest rates accordingly, not the other way around. It's going to be a scorcher on today's segment. Tune in.
Since inflation is sky high, at levels we haven't seen in decades, why are we not seeing the metals markets move in the way we might have expected? The correlation between metals and equities has been very different in the past two years when we compare it to the historical correlation, so those looking to hedge inflation with metals have not been rewarded.Eddie and Julia will also discuss what core positions might look like in small accounts, as well as how delta, probabilities, and standard deviation all can be related to one another!
Since inflation is sky high, at levels we haven't seen in decades, why are we not seeing the metals markets move in the way we might have expected? The correlation between metals and equities has been very different in the past two years when we compare it to the historical correlation, so those looking to hedge inflation with metals have not been rewarded.Eddie and Julia will also discuss what core positions might look like in small accounts, as well as how delta, probabilities, and standard deviation all can be related to one another!
A strangle involves selling an OTM put and OTM call, typically in the same expiration cycle creating a neutral range of profitability.
Tune in to learn everything about the strategy from setup, trade environment, profit targets, and defensive management!
Live Q&A session to follow!
A strangle involves selling an OTM put and OTM call, typically in the same expiration cycle creating a neutral range of profitability.
Tune in to learn everything about the strategy from setup, trade environment, profit targets, and defensive management!
Live Q&A session to follow!
September 13th, 2022 was the fifth largest intraday range in S&P 500 and the Nasdaq. Get the latest market performance stats with Tom and Tony and discover how these two ex-floor traders are using this information for new and existing positions.
September 13th, 2022 was the fifth largest intraday range in S&P 500 and the Nasdaq. Get the latest market performance stats with Tom and Tony and discover how these two ex-floor traders are using this information for new and existing positions.
If we want to scale up in trading risk-defined strategies such as iron condors or spreads, should we consider widening the width of wings or increasing the number of contracts? What are the pros and cons of doing either way?
Join Tom and Tony as they discuss risk-defined strategies and answer these questions!
If we want to scale up in trading risk-defined strategies such as iron condors or spreads, should we consider widening the width of wings or increasing the number of contracts? What are the pros and cons of doing either way?
Join Tom and Tony as they discuss risk-defined strategies and answer these questions!
CPI miss: Inflation shock strikes back. Chances of 100 bps hike rise to the forefront. TWTR shareholders approve Elon’s $44 billion bidLeftovers - Used vehicle prices vs. a year ago.
CPI miss: Inflation shock strikes back. Chances of 100 bps hike rise to the forefront. TWTR shareholders approve Elon’s $44 billion bidLeftovers - Used vehicle prices vs. a year ago.
Now that the CPI number has been released showing hotter than expected inflation, how should you trade that new information? What adjustments should you consider for your portfolio? How will this number impact the outlook for the rest of the year? Join us for another YT Livestream, as we answer all of those questions, and as many of YOUR questions as we can!
Now that the CPI number has been released showing hotter than expected inflation, how should you trade that new information? What adjustments should you consider for your portfolio? How will this number impact the outlook for the rest of the year? Join us for another YT Livestream, as we answer all of those questions, and as many of YOUR questions as we can!
How long do we leave a trade on before adjusting it? Do we add or remove short premium positions when portfolio delta becomes skewed? Join Eddie and Julia as they answer viewer questions about RSI, trade management and portfolio management.
How long do we leave a trade on before adjusting it? Do we add or remove short premium positions when portfolio delta becomes skewed? Join Eddie and Julia as they answer viewer questions about RSI, trade management and portfolio management.
The tastytrade crew explains everything you need to know about iron condor trade entry, management, and defense today!
They also field questions from the live YouTube chat around strategies, and iron condor concepts.
The tastytrade crew explains everything you need to know about iron condor trade entry, management, and defense today!
They also field questions from the live YouTube chat around strategies, and iron condor concepts.
Jeff Joseph joins Tom and Tony to share the latest edition of Luckbox Magazine. Discover how this month's edition showcases US Dollar strength, inflation, and current market conditions based on the two.
Not subscribed? Get Luckbox Magazine
Jeff Joseph joins Tom and Tony to share the latest edition of Luckbox Magazine. Discover how this month's edition showcases US Dollar strength, inflation, and current market conditions based on the two.
Not subscribed? Get Luckbox Magazine
The LED market is over a $130B industry. It's not a sexy business, but those are the ones that are some of the most stable in the world. Launched in 2008, Azumo makes a thin plastic film – the width of a human hair – that basically enables 10x power savings with our devices' screens, makes them safer for our eyes, and allows for better sunlight visibility. Azumo's LCD technology requires 80% fewer LCDs (and is lighter weight / easier on the eyes as well). Their tech also saves battery life and can be seen in all lightning conditions (kind of like a Kindle) — but can be applied to wearables, medical equipment, automobiles, etc — basically any consumer electronics.Get to know Azumo
The LED market is over a $130B industry. It's not a sexy business, but those are the ones that are some of the most stable in the world. Launched in 2008, Azumo makes a thin plastic film – the width of a human hair – that basically enables 10x power savings with our devices' screens, makes them safer for our eyes, and allows for better sunlight visibility. Azumo's LCD technology requires 80% fewer LCDs (and is lighter weight / easier on the eyes as well). Their tech also saves battery life and can be seen in all lightning conditions (kind of like a Kindle) — but can be applied to wearables, medical equipment, automobiles, etc — basically any consumer electronics.Get to know Azumo
With respect to long term distributions and statistics, 2022 did not change general expectations about volatility by much: IV still carries upside velocity of risk and clusters below its average the majority of the time. However, adding half of 2021 and 2022 into account (just 5% of the total number of occurrences in the study), the distribution became less skewed and more normal because IV in 2022 was high but not an outlier.
With respect to long term distributions and statistics, 2022 did not change general expectations about volatility by much: IV still carries upside velocity of risk and clusters below its average the majority of the time. However, adding half of 2021 and 2022 into account (just 5% of the total number of occurrences in the study), the distribution became less skewed and more normal because IV in 2022 was high but not an outlier.
Victor asks Tom and Tony, “Do triggers matter in the markets?”
The market was up 30 points and then down 30 points. Tom put in a covered call, and the market went down another 50 points, then 95. Tom isn’t worried. He covered a third of his position and played the bongos in a victory march.
Victor is confident he’s about to put Tom in the hot seat on today’s topic. Tom states glibly, “There is no chance you got me, no chance.” Victor asks him, “Why is the market down today?” Then reiterated his point thrice.
If the market rallied yesterday at 250 points, why is it down 100 points? The obvious answer would be today’s Consumer Price Index report. According to Tom as a self-directed opportunist, you see, the rationale here is that traders needed a reason to sell so that they could buy back up again by the end of the week. He called out the pundits who will inevitably say it is the CPI. His theory is that the markets are always lying in wait for a trigger by design.
Victor thinks he’s willfully ignoring the evidence to the contrary. Bonds are selling off, and the dollar is overextended, still strong and selling to the upside. But what about equities pulling back? Tom says, “The genesis of tastytrade is that whatever happens with CPI, the FED, the world, name it, it’s not a tradable event.” The debate continues. Tune in to see if they agree to disagree on today’s episode.
Victor asks Tom and Tony, “Do triggers matter in the markets?”
The market was up 30 points and then down 30 points. Tom put in a covered call, and the market went down another 50 points, then 95. Tom isn’t worried. He covered a third of his position and played the bongos in a victory march.
Victor is confident he’s about to put Tom in the hot seat on today’s topic. Tom states glibly, “There is no chance you got me, no chance.” Victor asks him, “Why is the market down today?” Then reiterated his point thrice.
If the market rallied yesterday at 250 points, why is it down 100 points? The obvious answer would be today’s Consumer Price Index report. According to Tom as a self-directed opportunist, you see, the rationale here is that traders needed a reason to sell so that they could buy back up again by the end of the week. He called out the pundits who will inevitably say it is the CPI. His theory is that the markets are always lying in wait for a trigger by design.
Victor thinks he’s willfully ignoring the evidence to the contrary. Bonds are selling off, and the dollar is overextended, still strong and selling to the upside. But what about equities pulling back? Tom says, “The genesis of tastytrade is that whatever happens with CPI, the FED, the world, name it, it’s not a tradable event.” The debate continues. Tune in to see if they agree to disagree on today’s episode.
The most tastytrade of all trades is to sell premium in high volatility and wait for volatility to mean-revert. How quickly does volatility actually move though? Today, Tom and Tony dive into the data to see just what sort of changes volatility tends to experience day-to-day.
The most tastytrade of all trades is to sell premium in high volatility and wait for volatility to mean-revert. How quickly does volatility actually move though? Today, Tom and Tony dive into the data to see just what sort of changes volatility tends to experience day-to-day.
Since the start of September, the crypto markets have trended higher, with SOL and BTC leading the way.With major headlines including Coinbase backing a lawsuit against the Treasury Department, ETH futures options going live from the CME, and increased acceleration of stablecoin adoption, the markets attention remains on Ethereum.With the Merge supposed to happen later this week, let's revisit what exactly the Merge is and isn't, what the potential risks surrounding this event are, and how we could potentially play this event!
Since the start of September, the crypto markets have trended higher, with SOL and BTC leading the way.With major headlines including Coinbase backing a lawsuit against the Treasury Department, ETH futures options going live from the CME, and increased acceleration of stablecoin adoption, the markets attention remains on Ethereum.With the Merge supposed to happen later this week, let's revisit what exactly the Merge is and isn't, what the potential risks surrounding this event are, and how we could potentially play this event!
Dollar retreats; ‘Peak Inflation’ in the air. Ominous sign: VIX up & SPY up. Electrolux rings the alarm on high inventory.Leftovers - Printed book sales on the rise.
Dollar retreats; ‘Peak Inflation’ in the air. Ominous sign: VIX up & SPY up. Electrolux rings the alarm on high inventory.Leftovers - Printed book sales on the rise.
Oftentimes, market awareness is used as a catch-all term to mean some vague understanding of the markets that is difficult to precisely define, but here are three clear examples of market awareness: undefined-risk return potential, defined-risk adjustment limitations, and binary event unit risk. Notice that the common denominator across these three examples is they all require some level of experience to understand and appreciate.
Oftentimes, market awareness is used as a catch-all term to mean some vague understanding of the markets that is difficult to precisely define, but here are three clear examples of market awareness: undefined-risk return potential, defined-risk adjustment limitations, and binary event unit risk. Notice that the common denominator across these three examples is they all require some level of experience to understand and appreciate.
Some traders look to open interest as a "magnet" for stock prices, meaning that an option with high open interest might indicate that a stock is likely to go there. While this is not the case, open interest can be used as an indicator to notice abnormal hedges or bets going on in the markets.Beyond open interest, Jermal and Eddie discuss how they think about trading earnings and when, if ever, they look to utilize long premium strategies!
Some traders look to open interest as a "magnet" for stock prices, meaning that an option with high open interest might indicate that a stock is likely to go there. While this is not the case, open interest can be used as an indicator to notice abnormal hedges or bets going on in the markets.Beyond open interest, Jermal and Eddie discuss how they think about trading earnings and when, if ever, they look to utilize long premium strategies!
Tune in to learn all about the broken wing butterfly strategy, where the credit spread portion of the trade is wider than the long debit spread portion, resulting in a net credit on entry.
The tastytrade crew breaks down trade entry, management and profit targets today and they show an example in XOP.
They also place an ORCL earnings trade!
Tune in to learn all about the broken wing butterfly strategy, where the credit spread portion of the trade is wider than the long debit spread portion, resulting in a net credit on entry.
The tastytrade crew breaks down trade entry, management and profit targets today and they show an example in XOP.
They also place an ORCL earnings trade!
With more and more financial products becoming available to retail traders, we thought we would go back to basics.For indices, such as the S&P 500, Nasdaq 100, and Russell 2000, there exist a number of products which are all a variation of one another.Why have multiple products track the same thing? Are there benefits to trading futures, for example, compared to the underlying index?Join Tom and Tony to find out!
With more and more financial products becoming available to retail traders, we thought we would go back to basics.For indices, such as the S&P 500, Nasdaq 100, and Russell 2000, there exist a number of products which are all a variation of one another.Why have multiple products track the same thing? Are there benefits to trading futures, for example, compared to the underlying index?Join Tom and Tony to find out!
The foundation of all option pricing is the Black-Scholes Option Pricing Model. However, as is the case with all theoretical models, concessions must be made when attempting to fit the goal of the model with real, practical applications. Therefore, the addition that the Heston Model builds onto the Black-Scholes Model in allowing room for volatility mean reversion is a significant step forward. Did you catch our recent episode on how to determine Delta/Theta levels for your portfolio?
The foundation of all option pricing is the Black-Scholes Option Pricing Model. However, as is the case with all theoretical models, concessions must be made when attempting to fit the goal of the model with real, practical applications. Therefore, the addition that the Heston Model builds onto the Black-Scholes Model in allowing room for volatility mean reversion is a significant step forward. Did you catch our recent episode on how to determine Delta/Theta levels for your portfolio?
Last week, the market began the week up from the previous week (i.e., SPY’s price increased from Friday’s close to Tuesday’s open, noting that last Monday was a holiday). The market usually starts the week up from the previous week in typical market conditions, but 2022 has been far from typical. Let’s look at some statistics to contextualize how the market has been starting the week in 2022.
Last week, the market began the week up from the previous week (i.e., SPY’s price increased from Friday’s close to Tuesday’s open, noting that last Monday was a holiday). The market usually starts the week up from the previous week in typical market conditions, but 2022 has been far from typical. Let’s look at some statistics to contextualize how the market has been starting the week in 2022.
On this episode of Engineering the Trade, Jermal is joined by Josh to take a look at three stock market-related trading products that they have their eye on. Then, Josh fills you in on the three games he's studying for week 1 of the 2022 NFL season.
On this episode of Engineering the Trade, Jermal is joined by Josh to take a look at three stock market-related trading products that they have their eye on. Then, Josh fills you in on the three games he's studying for week 1 of the 2022 NFL season.
Today, we manage our KR earnings winner, and then spend the rest of the show answering YOUR questions. Some great ones that came in focused on why we manage early, my favorite statistical metric in the marketplace, and also whether or not this is a new bull market, or just a bear market rally.
Today, we manage our KR earnings winner, and then spend the rest of the show answering YOUR questions. Some great ones that came in focused on why we manage early, my favorite statistical metric in the marketplace, and also whether or not this is a new bull market, or just a bear market rally.
The research team breaks down the risk for neutral trades, how one might mitigate that, and what different profit targets can mean for long-term performance. Get a deeper dive on recent research and some commentary on the markets with Julia and Eddie!
The research team breaks down the risk for neutral trades, how one might mitigate that, and what different profit targets can mean for long-term performance. Get a deeper dive on recent research and some commentary on the markets with Julia and Eddie!
The tastytrade crew answers options trading concept and strategy questions from the live chat.
The tastytrade crew answers options trading concept and strategy questions from the live chat.
2022年已经过去了三分之二，在过去的半年多时间里，不仅市场表现不尽如人意，投资者的整体情绪也非常悲观。那么2022年和过去的股市调整相比情况如何呢？过去20年中最大幅度的股灾发生在2008年和2022，那么今年和他们相比又如何？这期节目主持人曾凯会通过分析股价与隐含波动率的方法来做对比。 更多信息: info.tastytrade.com/cn
Two-thirds of 2022 has passed. During these eight months, the market’s performance was far from satisfactory, along with strong negative market sentiment. So how is the current market compared to other historical market corrections like 2008 and 2020? Our host Kai analyzes the differences and similarities between these market drawdowns by examining underlying prices and implied volatilities.
Timing long premium trades is near impossible because when the market is in a state of calm and IV is low, there is no statistical significant methodology to predict an upcoming expansion. Since IV overstates HV 83% of the time, we know that not only are short premium trades profitable more than 4 out of 5 times, but predicting a contraction in fear is MUCH more statistically viable since IV expansions usually last 12 days on average as opposed to a lull which lasts 42 days on average, but can last as long as a year or more.
Timing long premium trades is near impossible because when the market is in a state of calm and IV is low, there is no statistical significant methodology to predict an upcoming expansion. Since IV overstates HV 83% of the time, we know that not only are short premium trades profitable more than 4 out of 5 times, but predicting a contraction in fear is MUCH more statistically viable since IV expansions usually last 12 days on average as opposed to a lull which lasts 42 days on average, but can last as long as a year or more.
Treasury yields keep rising as a result of central banks raising rates. What’s that doing to volatility? Join Nicky, Mikey and Jermal as they discuss it all on This Week in Stocks.
Treasury yields keep rising as a result of central banks raising rates. What’s that doing to volatility? Join Nicky, Mikey and Jermal as they discuss it all on This Week in Stocks.
ECB hikes unprecedented 75 bps; Euro falls. Chances of 75 bps FOMC hike increase on Powell speak. Crude oil trading at levels last seen in January.Leftovers - Who’s likely to suffer from long covid.
ECB hikes unprecedented 75 bps; Euro falls. Chances of 75 bps FOMC hike increase on Powell speak. Crude oil trading at levels last seen in January.Leftovers - Who’s likely to suffer from long covid.
As active traders in the world of options, we are always monitoring how much capital we have available to allocate to our positions.
At times, our buying power will be stretched, and we will have very little capital leftover to adjust or defend our trades. When this happens, what can we do? Here is the most efficient way to restore the buying power in your account.
And today is Thursday, so we are live streaming on YouTube - where we answer as many of YOUR questions as we can!
As active traders in the world of options, we are always monitoring how much capital we have available to allocate to our positions.
At times, our buying power will be stretched, and we will have very little capital leftover to adjust or defend our trades. When this happens, what can we do? Here is the most efficient way to restore the buying power in your account.
And today is Thursday, so we are live streaming on YouTube - where we answer as many of YOUR questions as we can!
Pete and James discuss Crude Oil (/CL) and Micro Crude Oil (/MCL) futures contracts pricing, and provide examples of how to calculate their P/L. They break down several trading examples utilizing both the larger and micro contracts. The guys also take a quick look at today's market action in futures.
Pete and James discuss Crude Oil (/CL) and Micro Crude Oil (/MCL) futures contracts pricing, and provide examples of how to calculate their P/L. They break down several trading examples utilizing both the larger and micro contracts. The guys also take a quick look at today's market action in futures.
The research team gets many emails about how viewers can conduct their own studies like we do. Eddie and Julia will briefly discuss how anyone can get data and play around with it. They also discuss the difference between ratio spreads and their naked counterparts, as well as taking live viewer questions.
The research team gets many emails about how viewers can conduct their own studies like we do. Eddie and Julia will briefly discuss how anyone can get data and play around with it. They also discuss the difference between ratio spreads and their naked counterparts, as well as taking live viewer questions.
Liz and Jenny took off their long /M6E yesterday during the rally and place a new one today. They look at their small exchange yield curve trades and place a strangle in /MES.
Liz and Jenny took off their long /M6E yesterday during the rally and place a new one today. They look at their small exchange yield curve trades and place a strangle in /MES.
Liquid markets operate pretty efficiently and there is no inherent "edge" to one strategy over another, only trade offs of risk and reward. However, certain strategies may have been more efficient uses of buying power compared to others historically. Let’s use SPY strangles and iron condors to investigate this.
Liquid markets operate pretty efficiently and there is no inherent "edge" to one strategy over another, only trade offs of risk and reward. However, certain strategies may have been more efficient uses of buying power compared to others historically. Let’s use SPY strangles and iron condors to investigate this.
Investors and traders alike have struggled to find safety during 2022, with volatility remaining high as the market continues its path lower.This has led investors to funnel into a newer breed of product which provides them with the opportunity to mitigate risk in exchange for a smaller reward. These products, known as “buffer funds”, claim to guard against investor losses, up to a certain point, while limiting potential gains.So far, roughly $6 billion dollars have been allocated to buffer funds, nearly doubling the amount last year, and it is likely to increase further.So what exactly are buffer funds and do they really work?
Investors and traders alike have struggled to find safety during 2022, with volatility remaining high as the market continues its path lower.This has led investors to funnel into a newer breed of product which provides them with the opportunity to mitigate risk in exchange for a smaller reward. These products, known as “buffer funds”, claim to guard against investor losses, up to a certain point, while limiting potential gains.So far, roughly $6 billion dollars have been allocated to buffer funds, nearly doubling the amount last year, and it is likely to increase further.So what exactly are buffer funds and do they really work?
Growing food has never been so easy. Plug it in, plant seeds, add some water, and then watch the crops grow...INSIDE YOUR HOUSE! Sounds simple because it is. Farmshelf's technology makes it so effortless and simple, they'll even send you a notice when to harvest your produce. Their technology keeps an eye on it all the time. Plus there are over 40 different types of produce. Think about this...it grows 2-3 times faster, you get fresh produce all year round, it tastes better because it is fresh, and it's more nutritious for you. Sounds like a win/win. Andrew Shearer is the Founder & CEO, he talks with Dylan about his company and how he got his start.Learn More About Farmshelf
Growing food has never been so easy. Plug it in, plant seeds, add some water, and then watch the crops grow...INSIDE YOUR HOUSE! Sounds simple because it is. Farmshelf's technology makes it so effortless and simple, they'll even send you a notice when to harvest your produce. Their technology keeps an eye on it all the time. Plus there are over 40 different types of produce. Think about this...it grows 2-3 times faster, you get fresh produce all year round, it tastes better because it is fresh, and it's more nutritious for you. Sounds like a win/win. Andrew Shearer is the Founder & CEO, he talks with Dylan about his company and how he got his start.Learn More About Farmshelf
Most cryptos' have given back their gains, alongside many equities. Whether it be macro factors, crypto specific news, or a general desire to decrease risk, crypto has returned to where it was at the start of July. One exception is Ethereum (ETH-USD), which stands out as a relative outperformer. Why is that and what is next for the crypto market? Join Eddie and Ryan to find out!
Most cryptos' have given back their gains, alongside many equities. Whether it be macro factors, crypto specific news, or a general desire to decrease risk, crypto has returned to where it was at the start of July. One exception is Ethereum (ETH-USD), which stands out as a relative outperformer. Why is that and what is next for the crypto market? Join Eddie and Ryan to find out!
Is there ever a reason NOT to invest in the big idea? In Tom's opinion there are few occasions where it doesn’t work out. Success over failure is a numbers game, pure and simple. A big idea is NEVER a bad idea. Dylan shakes his head and respectfully disagrees. Tom believes hanging it all on timing to make a big move will assuredly result in failure. Are there valid reasons for being more cautious when it comes to big ideas? You can try to make big changes or incremental changes just as long as you are DOING something to implement change for the greater good—but at what cost?
Is there ever a reason NOT to invest in the big idea? In Tom's opinion there are few occasions where it doesn’t work out. Success over failure is a numbers game, pure and simple. A big idea is NEVER a bad idea. Dylan shakes his head and respectfully disagrees. Tom believes hanging it all on timing to make a big move will assuredly result in failure. Are there valid reasons for being more cautious when it comes to big ideas? You can try to make big changes or incremental changes just as long as you are DOING something to implement change for the greater good—but at what cost?
Julia and Eddie discuss how traders can look at VVIX and VIX together to form a better picture of market volatility. As volatility remains high and continues sideways, VVIX becomes a useful tool to build a thesis of future volatility movements.On top of the volatility discussion, Julia and Eddie will talk about the upside risk, management tactics, and how to hedge a long crypto position!
Julia and Eddie discuss how traders can look at VVIX and VIX together to form a better picture of market volatility. As volatility remains high and continues sideways, VVIX becomes a useful tool to build a thesis of future volatility movements.On top of the volatility discussion, Julia and Eddie will talk about the upside risk, management tactics, and how to hedge a long crypto position!
DOCU earnings are coming up on September 8th after the market closes, and the market is projecting a massive move relative to the stock price.
With such high implied volatility being baked into the weekly cycle, the tastytrade crew takes a look at diagonal spreads and calendar spreads, and they compare and contrast each.
Tune in to learn more with a live Q&A as well!
DOCU earnings are coming up on September 8th after the market closes, and the market is projecting a massive move relative to the stock price.
With such high implied volatility being baked into the weekly cycle, the tastytrade crew takes a look at diagonal spreads and calendar spreads, and they compare and contrast each.
Tune in to learn more with a live Q&A as well!
Eddie and Julia join Liz as they discuss this past week's market measures. The VVIX is the volatility on the VIX and given the current ratio it seems to be a profitable time to sell premium. They also discuss their most impactful lesson that they have learned as researchers.
Eddie and Julia join Liz as they discuss this past week's market measures. The VVIX is the volatility on the VIX and given the current ratio it seems to be a profitable time to sell premium. They also discuss their most impactful lesson that they have learned as researchers.
This is the last episode of our Top Dogs series. The market has been very volatile lately, down more than 5% and the VIX up 7% since the beginning. How’s our portfolio doing so far and how does the adjustment impact the performance? If we have more funds to invest, how should we scale up on top of the current positions? Please Join Tom and Tony as they analyze the status of our diversified portfolio and explain the ways to scale up.
This is the last episode of our Top Dogs series. The market has been very volatile lately, down more than 5% and the VIX up 7% since the beginning. How’s our portfolio doing so far and how does the adjustment impact the performance? If we have more funds to invest, how should we scale up on top of the current positions? Please Join Tom and Tony as they analyze the status of our diversified portfolio and explain the ways to scale up.
For risk-undefined strategies, there are two choices to Scale up:Trade more → Increase the number of contractsTrade bigger → Increase the potential reward/risk Does one of these choices make more sense than the other?Join Tom and Tony as they discuss how to scale up if traders have more capital to invest.
For risk-undefined strategies, there are two choices to Scale up:Trade more → Increase the number of contractsTrade bigger → Increase the potential reward/risk Does one of these choices make more sense than the other?Join Tom and Tony as they discuss how to scale up if traders have more capital to invest.
Treasury yields soaring once again. AAPL’s ‘Far Out’ iPhone 14 event on Wednesday. Merger Monday sighting: CVS buys SGFY for $8B.Leftovers - Pumping iron across the globe.
Treasury yields soaring once again. AAPL’s ‘Far Out’ iPhone 14 event on Wednesday. Merger Monday sighting: CVS buys SGFY for $8B.Leftovers - Pumping iron across the globe.
A Butterfly Spread is essentially the combination of two Vertical Spreads, so when one side gets close to max value, should you leg out and close it? You certainly can consider it, just remember that by closing the Long Call Spread early at less than max value, or paying an additional debit to buy back the Short Call Spread early, you are adding risk to the trade.
A Butterfly Spread is essentially the combination of two Vertical Spreads, so when one side gets close to max value, should you leg out and close it? You certainly can consider it, just remember that by closing the Long Call Spread early at less than max value, or paying an additional debit to buy back the Short Call Spread early, you are adding risk to the trade.
Join Julia and Jermal as they answer viewer questions during this live Q&A. Tune into their discussion on adjusting portfolio allocation for portfolio margin accounts, some misconceptions about trading often, and what strategies are suitable for traders who don't have time to watch the market daily!
Join Julia and Jermal as they answer viewer questions during this live Q&A. Tune into their discussion on adjusting portfolio allocation for portfolio margin accounts, some misconceptions about trading often, and what strategies are suitable for traders who don't have time to watch the market daily!
Tune in to learn about credit spread risk:reward, depending on where the strikes are relative to the stock price, and how much time is left until expiration.
With spreads that are ATM we tend to roll to add time to the trade, but with OTM and ITM positions, we tend to close them down if they're winners, or hold them if they're losers since our reward:risk skews in our favor.
Live Q&A session as well!
Tune in to learn about credit spread risk:reward, depending on where the strikes are relative to the stock price, and how much time is left until expiration.
With spreads that are ATM we tend to roll to add time to the trade, but with OTM and ITM positions, we tend to close them down if they're winners, or hold them if they're losers since our reward:risk skews in our favor.
Live Q&A session as well!
Jason Fried is smart, interesting, very successful, and walks to the beat of a different drummer. He is the co-founder and CEO of 37signals more commonly known as Basecamp, a Chicago-based web-application company. (We use Basecamp at tastytrade). Their products include Basecamp, Highrise, Backpack, Campfire, Ta-da List, and Writeboard. They also developed and open-sourced, Ruby on Rails programming framework. 37signals weblog, Signal vs. Noise, is read by over 100,000 people every day. Jason believes there's real value and beauty in the basics. Elegance, respect for people's desire to simply get stuff done, and honest ease of use are the hallmarks of 37signals products. Learn More About 37signals
Learn More About Basecamp
Jason Fried is smart, interesting, very successful, and walks to the beat of a different drummer. He is the co-founder and CEO of 37signals more commonly known as Basecamp, a Chicago-based web-application company. (We use Basecamp at tastytrade). Their products include Basecamp, Highrise, Backpack, Campfire, Ta-da List, and Writeboard. They also developed and open-sourced, Ruby on Rails programming framework. 37signals weblog, Signal vs. Noise, is read by over 100,000 people every day. Jason believes there's real value and beauty in the basics. Elegance, respect for people's desire to simply get stuff done, and honest ease of use are the hallmarks of 37signals products. Learn More About 37signals
Learn More About Basecamp
The VIX has seen some wild days in the past, but 2022 pales in comparison to the outlier moves we saw in 2020 and 2008. In 2022, the size of the biggest moves in the VIX were about 25% as large compared to 2020 and 2008.
The VIX has seen some wild days in the past, but 2022 pales in comparison to the outlier moves we saw in 2020 and 2008. In 2022, the size of the biggest moves in the VIX were about 25% as large compared to 2020 and 2008.
Tom and Tony take viewer question from YouTube. Discover more about their trading style, most attractive trading opportunities right now, and more.
Tom and Tony take viewer question from YouTube. Discover more about their trading style, most attractive trading opportunities right now, and more.
Ratio spreads are created through a combination of long and short puts or calls.Front ratio spreads are an excellent strategy for traders looking for a high-probability, omni-directional trade. On the other side, back ratio spreads are a more capital efficient strategy to replace short or long stock in an account.In today’s segment, we focus on front ratio spreads since they are more aligned with the strategies previously discussed.
Ratio spreads are created through a combination of long and short puts or calls.Front ratio spreads are an excellent strategy for traders looking for a high-probability, omni-directional trade. On the other side, back ratio spreads are a more capital efficient strategy to replace short or long stock in an account.In today’s segment, we focus on front ratio spreads since they are more aligned with the strategies previously discussed.
On this episode of Engineering the Trade, Jermal Chandler and Julia Spina cover some less-management intensive option strategies for those that are not able to monitor the market constantly throughout the day.
On this episode of Engineering the Trade, Jermal Chandler and Julia Spina cover some less-management intensive option strategies for those that are not able to monitor the market constantly throughout the day.
Bear markets move quickly. As tastytraders, however, we’re prepared with different strategies and adjustment mechanics for any market environment. So on today’s YouTube Livestream, we talk through some things to consider when managing your portfolio through this bear market.
And of course, we answer as many of your questions as we can!
Bear markets move quickly. As tastytraders, however, we’re prepared with different strategies and adjustment mechanics for any market environment. So on today’s YouTube Livestream, we talk through some things to consider when managing your portfolio through this bear market.
And of course, we answer as many of your questions as we can!
When outlier moves happen, they usually happen to one direction. Knowing that implied volatility does take into account the expected direction of future outliers, can we hedge our short premium positions using a biased directional assumption from the beginning of the trade? Anton and Pete are two traders that discuss the pros and cons of this unique risk management strategy.
When outlier moves happen, they usually happen to one direction. Knowing that implied volatility does take into account the expected direction of future outliers, can we hedge our short premium positions using a biased directional assumption from the beginning of the trade? Anton and Pete are two traders that discuss the pros and cons of this unique risk management strategy.
Today's questions include rolling options after a loss, differences between futures and equity options, and many more interactions!
Today's questions include rolling options after a loss, differences between futures and equity options, and many more interactions!
The tastytrade crew highlights the top stocks to watch in September - MU, ADBE, CCL and DOCU!
They end up placing a short put in CCL and wait on the others for the earnings announcements later this month.
See the full article here
The tastytrade crew highlights the top stocks to watch in September - MU, ADBE, CCL and DOCU!
They end up placing a short put in CCL and wait on the others for the earnings announcements later this month.
See the full article here
Liz and Jenny talk about the reason they name trades and how a risk defined big lizard is actually a broken wing butterfly, but the name determines the strikes. They look at 0DTE SPX trades for a viewer. They also place a new trade in Amazon and a jade lizard in EWZ.
Liz and Jenny talk about the reason they name trades and how a risk defined big lizard is actually a broken wing butterfly, but the name determines the strikes. They look at 0DTE SPX trades for a viewer. They also place a new trade in Amazon and a jade lizard in EWZ.
Anton asks a question of all tasty traders: Do you do anything different after 5 consecutive down days? Liz, Jenny, and Anton ponder this question. Risk is managed at order entry. They also play a low probability game with Anton before he leaves for a trip to Israel.
Anton asks a question of all tasty traders: Do you do anything different after 5 consecutive down days? Liz, Jenny, and Anton ponder this question. Risk is managed at order entry. They also play a low probability game with Anton before he leaves for a trip to Israel.
When implied volatility rises, you not only get more premium to sell (and ideally profit on), but you also have larger breakevens in case of a larger move, as well as a historical pattern where the fixed size outlier move in the markets (-2% in SPY) were less severe to expanding volatility than when volatility is low to begin with.
When implied volatility rises, you not only get more premium to sell (and ideally profit on), but you also have larger breakevens in case of a larger move, as well as a historical pattern where the fixed size outlier move in the markets (-2% in SPY) were less severe to expanding volatility than when volatility is low to begin with.
Fed reiterated hawkish stance at The Jackson Hole Economic Symposium; markets down three straight weeks. Dollar rallied for the third consecutive week against other currencies. Oil has not stopped being volatile; Up 4% on Monday down 7% on the week. Two-year yields push above 3.5%; highest since Nov. 2007. Both the JOLTS report and the August jobs report has a hawkish outlook.
Fed reiterated hawkish stance at The Jackson Hole Economic Symposium; markets down three straight weeks. Dollar rallied for the third consecutive week against other currencies. Oil has not stopped being volatile; Up 4% on Monday down 7% on the week. Two-year yields push above 3.5%; highest since Nov. 2007. Both the JOLTS report and the August jobs report has a hawkish outlook.
US-imposed export limits on chips hurts NVDA. SNAP cuts jobs to refocus on growing ad revenue. Disney floating the idea of “Disney Prime”.Leftovers - The most expensive drinks in the world.
US-imposed export limits on chips hurts NVDA. SNAP cuts jobs to refocus on growing ad revenue. Disney floating the idea of “Disney Prime”.Leftovers - The most expensive drinks in the world.
Pete and James take a step back and run through the basics of S&P 500 index futures. They discuss both the larger E-mini contract (/ES) and the smaller Micro E-mini S&P 500 contract (/MES). After discussing the concept of futures leverage and the specifications of the S&P 500 contracts, the two walk through several trade examples of how profit and loss is calculated when trading /ES or /MES.
Pete and James take a step back and run through the basics of S&P 500 index futures. They discuss both the larger E-mini contract (/ES) and the smaller Micro E-mini S&P 500 contract (/MES). After discussing the concept of futures leverage and the specifications of the S&P 500 contracts, the two walk through several trade examples of how profit and loss is calculated when trading /ES or /MES.
Anton from the Research Team answers questions across all concepts today including efficiency of markets, integrating short premium into small accounts, and how to be defensive in markets that stink!
Anton from the Research Team answers questions across all concepts today including efficiency of markets, integrating short premium into small accounts, and how to be defensive in markets that stink!
The tastytrade crew offers their options trade ideas for the day! Mike buys a call diagonal spread in QQQ
Katie sells an iron condor in oil futures
Nick buys a put diagonal spread in PDD for earnings
Tune in to learn more with a live Q&A as well!
The tastytrade crew offers their options trade ideas for the day! Mike buys a call diagonal spread in QQQ
Katie sells an iron condor in oil futures
Nick buys a put diagonal spread in PDD for earnings
Tune in to learn more with a live Q&A as well!
Liz and Jenny look at putting the micro euro position back into their account that they took off yesterday. They also look at possible earnings plays in LULU, AVGO, and CPB and the live tweets about trade adjustments.
Liz and Jenny look at putting the micro euro position back into their account that they took off yesterday. They also look at possible earnings plays in LULU, AVGO, and CPB and the live tweets about trade adjustments.
Liz and Jenny compare strangles in IWM to /MES. They go over credit received, break-evens and buying power. Since futures margin offers better buying power reduction, they decide to sell the micro e-mini strangle.
Liz and Jenny compare strangles in IWM to /MES. They go over credit received, break-evens and buying power. Since futures margin offers better buying power reduction, they decide to sell the micro e-mini strangle.
At the start of August, we discussed what the VVIX is and how investors can look at it in combination with the VIX to get a better gauge on where volatility is. At that time, VVIX was at a two year low, but with the sharp increase in VIX over the past few weeks, that is no longer the case.Looking at the VVIX/VIX ratio can provide insight into what the current volatility environment looks like, but can it provide insight into trade performance?Join Tom and Tony to find out!
At the start of August, we discussed what the VVIX is and how investors can look at it in combination with the VIX to get a better gauge on where volatility is. At that time, VVIX was at a two year low, but with the sharp increase in VIX over the past few weeks, that is no longer the case.Looking at the VVIX/VIX ratio can provide insight into what the current volatility environment looks like, but can it provide insight into trade performance?Join Tom and Tony to find out!
Digital Electricity is here. Installed in over 1000 buildings and venues, including office buildings, hotels, stadiums and indoor vertical farms. VoltServer has invented a software-managed electricity transmission format that has the safety, data compatibility, and installation speed of USB or Ethernet cable but the power capability and range of traditional AC power. I know this means nothing to the Average Joe, or Josephine, but it is changing the way electricity is used, installed and managed. Steven Eaves is the brainchild of VoltServer. Prior, he founded Modular Energy Device, a lithium-ion company, acquired by EnerSys in 2011. Steven graduated with a BS in Electrical Engineering from UCONN, and is a US Air Force Veteran.Learn More About VoltServer
Digital Electricity is here. Installed in over 1000 buildings and venues, including office buildings, hotels, stadiums and indoor vertical farms. VoltServer has invented a software-managed electricity transmission format that has the safety, data compatibility, and installation speed of USB or Ethernet cable but the power capability and range of traditional AC power. I know this means nothing to the Average Joe, or Josephine, but it is changing the way electricity is used, installed and managed. Steven Eaves is the brainchild of VoltServer. Prior, he founded Modular Energy Device, a lithium-ion company, acquired by EnerSys in 2011. Steven graduated with a BS in Electrical Engineering from UCONN, and is a US Air Force Veteran.Learn More About VoltServer
Last week we introduced reinforcement learning, formulated as a Markov decision process. The goal of a RL agent is to determine a suitable policy, given feedback from the environment, that maximizes some long-term reward. Join Tom, Tony and Julia this week as they talk a bit more about the mechanics of policy selection and how RL can be applied to pairs trading. If you have requests for any topics, reach out to Julia (@FinancePhoton) or Eddie (@ERajcevic11) on Twitter! You can also submit ideas through this form: https://www.tastytrade.com/alp
Last week we introduced reinforcement learning, formulated as a Markov decision process. The goal of a RL agent is to determine a suitable policy, given feedback from the environment, that maximizes some long-term reward. Join Tom, Tony and Julia this week as they talk a bit more about the mechanics of policy selection and how RL can be applied to pairs trading. If you have requests for any topics, reach out to Julia (@FinancePhoton) or Eddie (@ERajcevic11) on Twitter! You can also submit ideas through this form: https://www.tastytrade.com/alp
Anton and Pete discuss topics such as rolling, defending trades, and collecting more credit when a position goes bad. In this case, we discuss /ES futures since equities have had the sharpest move in the last two weeks.
Anton and Pete discuss topics such as rolling, defending trades, and collecting more credit when a position goes bad. In this case, we discuss /ES futures since equities have had the sharpest move in the last two weeks.
Anton answers questions today regarding efficient markets, trades that go bad, and what volatility means and how it affects options and premium sellers in general. We also get a few questions about viewers' trade ideas.
Anton answers questions today regarding efficient markets, trades that go bad, and what volatility means and how it affects options and premium sellers in general. We also get a few questions about viewers' trade ideas.
When it comes to vertical credit spread defense, there aren't many tactics we can deploy because we're rebuying the long option. Rolling for a credit means rolling out in time before the credit spread moves ITM. If it moves ITM, rolling out in time may cost us a debit and we still need a directional move.
Tune in to learn more with a live Q&A session as well!
When it comes to vertical credit spread defense, there aren't many tactics we can deploy because we're rebuying the long option. Rolling for a credit means rolling out in time before the credit spread moves ITM. If it moves ITM, rolling out in time may cost us a debit and we still need a directional move.
Tune in to learn more with a live Q&A session as well!
Liz and Jenny put their own spin on this segment. They look at viewer assumptions and look for high probability trades with capital efficiency in mind. They look at everything from jade lizards to naked strangles in addition to iron condors and everything in-between.
Liz and Jenny put their own spin on this segment. They look at viewer assumptions and look for high probability trades with capital efficiency in mind. They look at everything from jade lizards to naked strangles in addition to iron condors and everything in-between.
Liz and Jenny look at a trade idea in IBM, they decide to go with a short OTM put instead of an iron condor. They decide to pass on today's earnings. They roll their Rivian position out to October and change the defined risk spread into a naked put.
Liz and Jenny look at a trade idea in IBM, they decide to go with a short OTM put instead of an iron condor. They decide to pass on today's earnings. They roll their Rivian position out to October and change the defined risk spread into a naked put.
Trading always requires taking on a certain level of risk. As we become more of a fast-paced society, are we also becoming more vulnerable to unforeseen events? Or is it the risk of outlier occurrences remains the same, but the size and scale of that risk has grown disproportionately? On this week’s episode, Tom and Dylan discuss outlier risk and how to use it to your advantage.
Trading always requires taking on a certain level of risk. As we become more of a fast-paced society, are we also becoming more vulnerable to unforeseen events? Or is it the risk of outlier occurrences remains the same, but the size and scale of that risk has grown disproportionately? On this week’s episode, Tom and Dylan discuss outlier risk and how to use it to your advantage.
It is the fourth segment of our popular Top Dogs series. In the past three weeks, many things happened. The market has been swinging in a wide range with high volatility. Not all of the positions in our diversified portfolio worked well, so we rolled and adjusted the positions last week.So, how’s our portfolio doing now? Did the previous management reduce the risk of our portfolio and increase profitability? Please Join Tom and Tony as they analyze the status of our diversified portfolio and explain the importance of active position management.
It is the fourth segment of our popular Top Dogs series. In the past three weeks, many things happened. The market has been swinging in a wide range with high volatility. Not all of the positions in our diversified portfolio worked well, so we rolled and adjusted the positions last week.So, how’s our portfolio doing now? Did the previous management reduce the risk of our portfolio and increase profitability? Please Join Tom and Tony as they analyze the status of our diversified portfolio and explain the importance of active position management.
The Job Openings and Labor Turnover Survey (JOLTS) report yields hawkish result. NFLX targeting $7-$9 for ad-supported plan. Consumers shop at $BBY less than last year.
Leftovers - TikTok on the way up; Facebook on the way out.
The Job Openings and Labor Turnover Survey (JOLTS) report yields hawkish result. NFLX targeting $7-$9 for ad-supported plan. Consumers shop at $BBY less than last year.
Leftovers - TikTok on the way up; Facebook on the way out.
The heart of strategic diversification is the idea that you have a mixture of different strategies, all with varying degrees of directional bias, in your portfolio at any given point in time. Having more positions on at any given point in time yields more opportunities to manage winners, without sacrificing overall portfolio bias.
The heart of strategic diversification is the idea that you have a mixture of different strategies, all with varying degrees of directional bias, in your portfolio at any given point in time. Having more positions on at any given point in time yields more opportunities to manage winners, without sacrificing overall portfolio bias.
Today on Splash Into Futures, Anton from the tastytrade research team shows an example of how much more liquid futures are compared to stocks and shares in equities/ETFs, even though they possess the exact same currency exposure. Tune in.
Today on Splash Into Futures, Anton from the tastytrade research team shows an example of how much more liquid futures are compared to stocks and shares in equities/ETFs, even though they possess the exact same currency exposure. Tune in.
Today's LIVE YouTube chat with the Research Team contained many excellent questions including management, strategy comparison, and defensive rolling mechanics. Ask your question LIVE every day at 12 noon, on tastytrade.
Today's LIVE YouTube chat with the Research Team contained many excellent questions including management, strategy comparison, and defensive rolling mechanics. Ask your question LIVE every day at 12 noon, on tastytrade.
Strangles are undefined risk trades where we take risk on both sides of the market, and trading a high IV product means more credit up front. This also means more credit when rolling out in time, and we can use this credit to manipulate strikes aggressively.
Tune in for a real example in AMZN, and how Nick moved the strikes completely as AMZN went from $107 up to $140 by rolling out in time and moving the strikes up.
Strangles are undefined risk trades where we take risk on both sides of the market, and trading a high IV product means more credit up front. This also means more credit when rolling out in time, and we can use this credit to manipulate strikes aggressively.
Tune in for a real example in AMZN, and how Nick moved the strikes completely as AMZN went from $107 up to $140 by rolling out in time and moving the strikes up.
Liz and Jenny take a look at what to do when a strike is breached in a covered call. They go over the wheel of fortune and all 6 synthetic options.
Liz and Jenny take a look at what to do when a strike is breached in a covered call. They go over the wheel of fortune and all 6 synthetic options.
Liz and Jenny take live tweets and place earnings. They also manage their account during this crazy reversal. They add theta with an IWM strangle and a jade lizard in CHWY.
Liz and Jenny take live tweets and place earnings. They also manage their account during this crazy reversal. They add theta with an IWM strangle and a jade lizard in CHWY.
From today's research combined with insight from Tom and Tony, we discover two important things about the relationship between IV and price:1: When the S&P moves small, its implied volatility seems to be relatively independent. We see the true “inverse correlation” between the market and its IV happen when SPX moves greater than 1% either up or down.2: Holding short delta, therefore, provides a hedge when markets sell off big. That is when IV and price exhibit their strongest negative correlation and short premium portfolios are the most exposed.
From today's research combined with insight from Tom and Tony, we discover two important things about the relationship between IV and price:1: When the S&P moves small, its implied volatility seems to be relatively independent. We see the true “inverse correlation” between the market and its IV happen when SPX moves greater than 1% either up or down.2: Holding short delta, therefore, provides a hedge when markets sell off big. That is when IV and price exhibit their strongest negative correlation and short premium portfolios are the most exposed.
Victor joins Tom and Tony to discuss recent conspiracy theories in finance and the misunderstood short seller. Victor mentions a recent mainstream media network episode—ahem—CNBC and its indelicate anchor and how a guest who is well-versed in finance, was cut off during a segment because she dared to mutter the words "short cut rate," after being asked why she thinks the market is rallying right now. Apparently, in response, social media comments went off the rails about the varied reasons why CNBC cut the feed so abruptly. Because social media hears and sees everything and always looks for the conspiracy behind the smallest incident. The whole illuminati controlling everything bit. Oh, Tom loves this stuff. He's always open to discussing the media's motives. Ratings, sensationalism, etc. Victor believes the media has no understanding of the short seller. All short sellers are not evil. Tom emphasizes that the market works regardless of any pundit’s opinion and points out that there was a major sell-off on Friday and all the buyers were short sellers. So, is the short seller being unfairly criticized? See what they land on in today's segment of Hear Me Out.
Victor joins Tom and Tony to discuss recent conspiracy theories in finance and the misunderstood short seller. Victor mentions a recent mainstream media network episode—ahem—CNBC and its indelicate anchor and how a guest who is well-versed in finance, was cut off during a segment because she dared to mutter the words "short cut rate," after being asked why she thinks the market is rallying right now. Apparently, in response, social media comments went off the rails about the varied reasons why CNBC cut the feed so abruptly. Because social media hears and sees everything and always looks for the conspiracy behind the smallest incident. The whole illuminati controlling everything bit. Oh, Tom loves this stuff. He's always open to discussing the media's motives. Ratings, sensationalism, etc. Victor believes the media has no understanding of the short seller. All short sellers are not evil. Tom emphasizes that the market works regardless of any pundit’s opinion and points out that there was a major sell-off on Friday and all the buyers were short sellers. So, is the short seller being unfairly criticized? See what they land on in today's segment of Hear Me Out.
While the short strangle may be one of tasty’s most popular trades, for traders looking to define their risk, they can utilize an iron condor instead.An iron condor is a variation of the short strangle, and can be constructed by simply adding long “wings” to both the put and the call side.The iron condor is a great strategy for those who want to use less buying power or are not trading in a margin account, such as an IRA.
While the short strangle may be one of tasty’s most popular trades, for traders looking to define their risk, they can utilize an iron condor instead.An iron condor is a variation of the short strangle, and can be constructed by simply adding long “wings” to both the put and the call side.The iron condor is a great strategy for those who want to use less buying power or are not trading in a margin account, such as an IRA.
Blockchain bridges are a potential solution to the lack of interoperability in the crypto space. By connecting to networks together, bridges can allow for free communication between two completely separate networks. This could allow users to easily move funds across blockchains, and utilize the applications built on one network that may not be available on other networks. However, as with anything in this space, there is risk involved.Join Eddie as he breaks down what blockchain bridges are, their use cases, and any potential risks associated with them!
Blockchain bridges are a potential solution to the lack of interoperability in the crypto space. By connecting to networks together, bridges can allow for free communication between two completely separate networks. This could allow users to easily move funds across blockchains, and utilize the applications built on one network that may not be available on other networks. However, as with anything in this space, there is risk involved.Join Eddie as he breaks down what blockchain bridges are, their use cases, and any potential risks associated with them!
The Fed reiterates hawkish stance at J-Hole. August rally has faded; VIX above 25 level. Crude oil extending gains; OPEC+ meeting on 9/5.Leftovers - Countries reliant on nuclear power.
The Fed reiterates hawkish stance at J-Hole. August rally has faded; VIX above 25 level. Crude oil extending gains; OPEC+ meeting on 9/5.Leftovers - Countries reliant on nuclear power.
Rolling and adjusting are big parts of what we do as tastytraders, and you will often hear that rolling “smooths out” your deltas or “waters down” your directional bias. As we look at our AAPL and SPY positions and consider a roll on each of them, we show exactly how our deltas would indeed change from an adjustment.
Rolling and adjusting are big parts of what we do as tastytraders, and you will often hear that rolling “smooths out” your deltas or “waters down” your directional bias. As we look at our AAPL and SPY positions and consider a roll on each of them, we show exactly how our deltas would indeed change from an adjustment.
In today's Splash into Futures, Pete and Anton look at different markets including, equities, commodities and interest rates, and decide on looking at some trade opportunities in Bond futures as well as 10-year note futures.
In today's Splash into Futures, Pete and Anton look at different markets including, equities, commodities and interest rates, and decide on looking at some trade opportunities in Bond futures as well as 10-year note futures.
Today's set of LIVE questions asked by tastytraders include: difference in premium when skew exists, concepts with IV inflation and overstatement, and much more!
Today's set of LIVE questions asked by tastytraders include: difference in premium when skew exists, concepts with IV inflation and overstatement, and much more!
Options that have little extrinsic value have high gamma risk when they are ATM - to reduce gamma risk, we can roll the option out in time, which infuses the strike with extrinsic value and reduces gamma risk moving forward.
Tune in to learn more with a live Q&A as well!
Options that have little extrinsic value have high gamma risk when they are ATM - to reduce gamma risk, we can roll the option out in time, which infuses the strike with extrinsic value and reduces gamma risk moving forward.
Tune in to learn more with a live Q&A as well!
Liz and Jenny look at 8 trade ideas from Alpa Boost. The 3x weekly email provides bullish, bearish, and neutral trade ideas. Liz and Jenny put their own spin on this and roll their existing jade lizard out to October and add some premium.
Liz and Jenny look at 8 trade ideas from Alpa Boost. The 3x weekly email provides bullish, bearish, and neutral trade ideas. Liz and Jenny put their own spin on this and roll their existing jade lizard out to October and add some premium.
Liz and Jenny talk volatility. They go over IV vs. IVR. They talk about the ZEEBS trade and how the price increases with higher implied volatility and skew. They decide to pass on the ZEEBS this week due to the increased IV in the market.
Liz and Jenny talk volatility. They go over IV vs. IVR. They talk about the ZEEBS trade and how the price increases with higher implied volatility and skew. They decide to pass on the ZEEBS this week due to the increased IV in the market.
With many earnings coming after the October cycle and IVR being over 30 for 43% of the stocks in the S&P 500, this presents great opportunity for premium sellers.As we’ve shown in previous studies, selling premium when IVR is high provides a better risk-reward tradeoff than when IVR is low.So for traders looking to sell premium in stocks and ETFs with IVR over 30, is there a best way to manage these trades?Join Tom and Tony to find out!
With many earnings coming after the October cycle and IVR being over 30 for 43% of the stocks in the S&P 500, this presents great opportunity for premium sellers.As we’ve shown in previous studies, selling premium when IVR is high provides a better risk-reward tradeoff than when IVR is low.So for traders looking to sell premium in stocks and ETFs with IVR over 30, is there a best way to manage these trades?Join Tom and Tony to find out!
Time decay is at the core of what we do as tastytraders. As much as we prefer to position ourselves to benefit from the simple passage of time more than anything else, we now see that the specific role that time plays is heavily influenced inside the BSM itself and by strategy specifics - namely the moneyness of that position.
Did you catch our recent show on how to determine Delta/Theta levels for your portfolio?
Time decay is at the core of what we do as tastytraders. As much as we prefer to position ourselves to benefit from the simple passage of time more than anything else, we now see that the specific role that time plays is heavily influenced inside the BSM itself and by strategy specifics - namely the moneyness of that position.
Did you catch our recent show on how to determine Delta/Theta levels for your portfolio?
One of the more recent developments in the tastytrade research is the clear benefit of managing our positions early. Specifically, this means closing or adjusting positions at 21 DTE in the current expiration cycle. Doing this allows us to avoid the added gamma risk of our positions - especially the undefined-risk positions.And today we are live on YouTube where we answer as many questions from YOU as we can!
One of the more recent developments in the tastytrade research is the clear benefit of managing our positions early. Specifically, this means closing or adjusting positions at 21 DTE in the current expiration cycle. Doing this allows us to avoid the added gamma risk of our positions - especially the undefined-risk positions.And today we are live on YouTube where we answer as many questions from YOU as we can!
Today's trade discussions revolved around equities and /6A (Australian Dollar). Selling put spreads or skewed iron condors? See Anton and Pete bounce around some ideas!
Today's trade discussions revolved around equities and /6A (Australian Dollar). Selling put spreads or skewed iron condors? See Anton and Pete bounce around some ideas!
The crew takes questions from the live YouTube chat, and they also review earnings trades from the week and lay out plans for defensive management going forward.
The crew takes questions from the live YouTube chat, and they also review earnings trades from the week and lay out plans for defensive management going forward.
To reduce risk in their portfolio, Liz and Jenny roll September positions out to October. This will help decrease their overall delta. They go through each position and play a game they call Roll It, Hold It, or Close It.
To reduce risk in their portfolio, Liz and Jenny roll September positions out to October. This will help decrease their overall delta. They go through each position and play a game they call Roll It, Hold It, or Close It.
Anton joins Liz and Jenny as they have a discussion about trading. The SPX 0 DTE iron condor and the ZEEBS trade were the topics du jour. They used the SPY and set up a ZEEBS in the zero DTE. Anton decided that this trade was the equivalent to 1/2 of a straddle trade.
Anton joins Liz and Jenny as they have a discussion about trading. The SPX 0 DTE iron condor and the ZEEBS trade were the topics du jour. They used the SPY and set up a ZEEBS in the zero DTE. Anton decided that this trade was the equivalent to 1/2 of a straddle trade.
On today's Market Measures, Tom and Tony talk about how intraday ranges have decreased as volatility goes down. Although equity volatility is down over 30% across all major indexes (in terms of intraday ranges) compared to the first half of the year, other assets that have been volatile (crude, oil, and bonds) have actually increased in volatility in the second half of the year.
On today's Market Measures, Tom and Tony talk about how intraday ranges have decreased as volatility goes down. Although equity volatility is down over 30% across all major indexes (in terms of intraday ranges) compared to the first half of the year, other assets that have been volatile (crude, oil, and bonds) have actually increased in volatility in the second half of the year.
Anton from the Research Team at tastytrade joins Tom and Tony LIVE to show how efficient markets result in an easy way to change your POP, expected profit, and amount risked on the trade.The POP on any trade must be directly proportional to the amount of money at risk relative to the amount of money you stand to make... the larger the POP, the larger the risk must be for the same potential return.
Anton from the Research Team at tastytrade joins Tom and Tony LIVE to show how efficient markets result in an easy way to change your POP, expected profit, and amount risked on the trade.The POP on any trade must be directly proportional to the amount of money at risk relative to the amount of money you stand to make... the larger the POP, the larger the risk must be for the same potential return.
NVDA misses Q3 forecast due to “challenging gaming conditions”. FanDuel launches broadcast network; DKNG next? AMZN signs green supply deal with PLUG.
Leftovers - Job switching by generation since the pandemic.
NVDA misses Q3 forecast due to “challenging gaming conditions”. FanDuel launches broadcast network; DKNG next? AMZN signs green supply deal with PLUG.
Leftovers - Job switching by generation since the pandemic.
As out-of-the-money premium sellers, extrinsic value is of utmost importance to our analysis and decision making. Understanding this metric more and more is only going to improve your trading, and make your ability to adjust positions even that much more effective. Specifically with our positions, we see how extrinsic value is helping us make more money with our IWM Short Put and lose less money with our UBER Short Straddle.And today we are live on YouTube where we answer as many questions from YOU as we can!
As out-of-the-money premium sellers, extrinsic value is of utmost importance to our analysis and decision making. Understanding this metric more and more is only going to improve your trading, and make your ability to adjust positions even that much more effective. Specifically with our positions, we see how extrinsic value is helping us make more money with our IWM Short Put and lose less money with our UBER Short Straddle.And today we are live on YouTube where we answer as many questions from YOU as we can!
On today's Splash Into Futures, Anton from the tastytrade Research Team reviews the leading futures products from each asset class that is offered by the tastyworks platform. We review the ticker, the product, the price, and the multiplier that goes into trading one contract.
On today's Splash Into Futures, Anton from the tastytrade Research Team reviews the leading futures products from each asset class that is offered by the tastyworks platform. We review the ticker, the product, the price, and the multiplier that goes into trading one contract.
On today's live Research Team Q&A, Anton from the Research Team answered many questions including: present risk in underlyings, options trading slang, and the fundamental concepts that are important for everyone to understand!
On today's live Research Team Q&A, Anton from the Research Team answered many questions including: present risk in underlyings, options trading slang, and the fundamental concepts that are important for everyone to understand!
Liz and Jenny take a look at their small exchange futures and use UUP to short the dollar. They then take live tweets on other futures ideas and place a trade in /M6E. They also take a look at micro contracts from CME Group.
Liz and Jenny take a look at their small exchange futures and use UUP to short the dollar. They then take live tweets on other futures ideas and place a trade in /M6E. They also take a look at micro contracts from CME Group.
The tastytrade crew offers their options trade ideas for the day! Mike buys a call diagonal spread in AFRM for earnings
Katie sells a put credit spread in Silver Futures
Nick sells a put and call ratio in XOP to play for potential bullish moves in the oil sector
Tune in to learn more with a live Q&A as well!
The tastytrade crew offers their options trade ideas for the day! Mike buys a call diagonal spread in AFRM for earnings
Katie sells a put credit spread in Silver Futures
Nick sells a put and call ratio in XOP to play for potential bullish moves in the oil sector
Tune in to learn more with a live Q&A as well!
On today's show Liz and Jenny go over examples of bullish and bearish diagonals. They adjust their Peloton position and talk about cost basis and profit potential. They also place an earnings calendar in MRVL.
On today's show Liz and Jenny go over examples of bullish and bearish diagonals. They adjust their Peloton position and talk about cost basis and profit potential. They also place an earnings calendar in MRVL.
We focus many of our studies on probability of profit (POP), the average profit, and the risk associated with trading short options.We often look at how these metrics change across various volatility ranges, with the result being that higher volatility tends to lead to better performance.Let’s try to combine these metrics into a single unit, expectancy, so we can better compare the performance of strangles across volatility levels!Join Tom and Tony to find out!
We focus many of our studies on probability of profit (POP), the average profit, and the risk associated with trading short options.We often look at how these metrics change across various volatility ranges, with the result being that higher volatility tends to lead to better performance.Let’s try to combine these metrics into a single unit, expectancy, so we can better compare the performance of strangles across volatility levels!Join Tom and Tony to find out!
Reinforcement learning (RL) focuses on how agents should make decisions in a dynamic environment. RL can be applied to a number of finance problems such as portfolio optimization, strategy development, and option valuation. Join Tom, Tony and Julia as they discuss RL in more detail and how it can be used for financial problem solving. If you have requests for any topics, reach out to Julia (@FinancePhoton) or Eddie (@ERajcevic11) on Twitter! You can also submit ideas through this form: https://www.tastytrade.com/alp...
Reinforcement learning (RL) focuses on how agents should make decisions in a dynamic environment. RL can be applied to a number of finance problems such as portfolio optimization, strategy development, and option valuation. Join Tom, Tony and Julia as they discuss RL in more detail and how it can be used for financial problem solving. If you have requests for any topics, reach out to Julia (@FinancePhoton) or Eddie (@ERajcevic11) on Twitter! You can also submit ideas through this form: https://www.tastytrade.com/alp...
Interoperability is a term that is commonly found in the tech and healthcare space, and is becoming increasingly discussed in the crypto space. Interoperability is the ability of systems and software to exchange and use information freely.In the crypto space, this is important as there are numerous blockchains, each with a unique value proposition. A solution that can connect all of these blockchains could potentially improve innovation and efficiency.
Interoperability is a term that is commonly found in the tech and healthcare space, and is becoming increasingly discussed in the crypto space. Interoperability is the ability of systems and software to exchange and use information freely.In the crypto space, this is important as there are numerous blockchains, each with a unique value proposition. A solution that can connect all of these blockchains could potentially improve innovation and efficiency.
Is student loan forgiveness going to become the latest burden for taxpayers? One side of the aisle would like you to think so. However, before you get all up in arms about that remember when President Trump cut taxes for the wealthy. Did we forget so soon? What about corporate welfare? That same side of the aisle was all in. The issue isn’t so much student loan forgiveness or tax cuts, the problem is the partial fixes that keep the system broken - but it’s not just college loan debt. According to Tom, we see these partial fixes in the corporate tax code, we see it when it comes to repairing roads, bridges, and infrastructure, not to mention the mere notion of universal healthcare. We conveniently triage it during election cycles, but we refuse to make the fundamental changes needed. Tune into this week’s episode as Tom and Dylan take on this topic and more.
Is student loan forgiveness going to become the latest burden for taxpayers? One side of the aisle would like you to think so. However, before you get all up in arms about that remember when President Trump cut taxes for the wealthy. Did we forget so soon? What about corporate welfare? That same side of the aisle was all in. The issue isn’t so much student loan forgiveness or tax cuts, the problem is the partial fixes that keep the system broken - but it’s not just college loan debt. According to Tom, we see these partial fixes in the corporate tax code, we see it when it comes to repairing roads, bridges, and infrastructure, not to mention the mere notion of universal healthcare. We conveniently triage it during election cycles, but we refuse to make the fundamental changes needed. Tune into this week’s episode as Tom and Dylan take on this topic and more.
Reviewing positions in /6E from a couple weeks ago, we look to manage those positions since they may be tested now with the Euro breaking below parity with the dollar. In this segment, we look at managing short puts and short put spreads in /6E.
Reviewing positions in /6E from a couple weeks ago, we look to manage those positions since they may be tested now with the Euro breaking below parity with the dollar. In this segment, we look at managing short puts and short put spreads in /6E.
Anton from the tastytrade Research Team goes on-air to answer questions on our YouTube live stream. Questions today included the intricacies of complex positions like double calendars and ZEBRAs, as well as some objective truths about options trading in general.
Anton from the tastytrade Research Team goes on-air to answer questions on our YouTube live stream. Questions today included the intricacies of complex positions like double calendars and ZEBRAs, as well as some objective truths about options trading in general.
Tune in to see how the tastytrade crew is trading earnings in CRM, NVDA, and SNOW!
They also field a ton of questions from the YouTube live chat!
Tune in to see how the tastytrade crew is trading earnings in CRM, NVDA, and SNOW!
They also field a ton of questions from the YouTube live chat!
Liz and Jenny take a look at 10 viewer assumptions and place trades with capital in mind. They look at everything from calendars to jade lizards and everything in-between.
Liz and Jenny take a look at 10 viewer assumptions and place trades with capital in mind. They look at everything from calendars to jade lizards and everything in-between.
The Russell Index is up and the weekly ZEEBS trade is profitable. Liz and Jenny decide to ratchet the zebra portion of the trade to take risk off the table, but still have the profit potential. They also place an earnings calendar in SNOW and sell a short term strangle around their Peloton stock.
The Russell Index is up and the weekly ZEEBS trade is profitable. Liz and Jenny decide to ratchet the zebra portion of the trade to take risk off the table, but still have the profit potential. They also place an earnings calendar in SNOW and sell a short term strangle around their Peloton stock.
One of the most important benefits of selling options is cost basis reduction. What is cost basis reduction, and how can we apply this concept to our portfolio management?Join Tom and Tony as they examine the current Top Dogs portfolio's and analyze how to reduce the cost basis by rolling the positions to new expiration cycles.
One of the most important benefits of selling options is cost basis reduction. What is cost basis reduction, and how can we apply this concept to our portfolio management?Join Tom and Tony as they examine the current Top Dogs portfolio's and analyze how to reduce the cost basis by rolling the positions to new expiration cycles.
We showed that the realized time decay curve is very close to the theoretical prediction for at-the-money SPY options. What about the OTM options that we trade the most?Join Tom and Tony as they discuss the time value decay across varying deltas.
We showed that the realized time decay curve is very close to the theoretical prediction for at-the-money SPY options. What about the OTM options that we trade the most?Join Tom and Tony as they discuss the time value decay across varying deltas.
When we trade pairs on the show, our two goals are the following: Trade the relationship between the two products (the basis). Reduce risk on a notional-equivalent basis relative to trading one product with the same notional.A key concept to grasp is the relationship between risk of pairs trades and correlation between the pairs is inversely related. The more positive the correlation, the lower the risk between the trade assuming one side is long and the other is short.
When we trade pairs on the show, our two goals are the following: Trade the relationship between the two products (the basis). Reduce risk on a notional-equivalent basis relative to trading one product with the same notional.A key concept to grasp is the relationship between risk of pairs trades and correlation between the pairs is inversely related. The more positive the correlation, the lower the risk between the trade assuming one side is long and the other is short.
In today's LIVE segment, the Research Team received questions on skew, options volatility, strategy and underlying selection, and more! Anton from the Research Team goes LIVE to answer all these questions and give his insight.
In today's LIVE segment, the Research Team received questions on skew, options volatility, strategy and underlying selection, and more! Anton from the Research Team goes LIVE to answer all these questions and give his insight.
TSLA is going through a 3:1 stock split on 8/24 after the market closes. Tune in to learn what will take place with strikes, and what to expect for new and existing options positions.
Check out the TSLA split blog post.
They also field questions from the live chat and check out some earnings trades as well!
TSLA is going through a 3:1 stock split on 8/24 after the market closes. Tune in to learn what will take place with strikes, and what to expect for new and existing options positions.
Check out the TSLA split blog post.
They also field questions from the live chat and check out some earnings trades as well!
Liz and Jenny look for earnings trades. They compare a jade lizard to a strangle in Nordstrom. They place an earnings calendar in Petco. They also take live tweets and close yesterday's zoom trade.
Liz and Jenny look for earnings trades. They compare a jade lizard to a strangle in Nordstrom. They place an earnings calendar in Petco. They also take live tweets and close yesterday's zoom trade.
Ever make an appointment with a home improvement provider, and they don't show up, don't call, or do a bad job, and then thats a completely different set of problems? It might behoove you to use a data and technology company for streamlining the home improvement process, where the work is guaranteed, no surprise fees, and they show up and on time. Serial entrepreneur, Andre Kazimierski, has built a digital platform to alleviate all of the above said problems, but with a focus on painters...for now. The other home improvement services are coming later. Improovy allows you to get a quote in ten minutes and have a fully insured and certified crew at your house or place of business within 24 hours. It sure beats doing it on your own, and now YOU HAVE A GUY.Learn More About Improovy
Ever make an appointment with a home improvement provider, and they don't show up, don't call, or do a bad job, and then thats a completely different set of problems? It might behoove you to use a data and technology company for streamlining the home improvement process, where the work is guaranteed, no surprise fees, and they show up and on time. Serial entrepreneur, Andre Kazimierski, has built a digital platform to alleviate all of the above said problems, but with a focus on painters...for now. The other home improvement services are coming later. Improovy allows you to get a quote in ten minutes and have a fully insured and certified crew at your house or place of business within 24 hours. It sure beats doing it on your own, and now YOU HAVE A GUY.Learn More About Improovy
Although not guaranteed, the probability of seeing a continuation of a move in the VIX has almost always been less than the probability of seeing the VIX revert.Keep in mind that the probability of seeing an up or down move, even after a streak, is still wrapped around 50%. However, over long periods of time, you see mean reversion in VIX because the daily probabilities are slightly mean-reverting.After a streak of up or down days in the VIX, is there a clear, mean-reverting bias going forward?
Although not guaranteed, the probability of seeing a continuation of a move in the VIX has almost always been less than the probability of seeing the VIX revert.Keep in mind that the probability of seeing an up or down move, even after a streak, is still wrapped around 50%. However, over long periods of time, you see mean reversion in VIX because the daily probabilities are slightly mean-reverting.After a streak of up or down days in the VIX, is there a clear, mean-reverting bias going forward?
After explaining naked options and vertical spreads, let’s move on to one of the most popular strategies here at tastytrade, the short strangle.A short strangle is often used due to the high probability of profit, management options, and lack of directional bias.Short strangles are very customizable, allowing traders to adjust their risk/reward parameters to what fits their preferences.
After explaining naked options and vertical spreads, let’s move on to one of the most popular strategies here at tastytrade, the short strangle.A short strangle is often used due to the high probability of profit, management options, and lack of directional bias.Short strangles are very customizable, allowing traders to adjust their risk/reward parameters to what fits their preferences.
Victor joins Tom and Tony to discuss whether caution has any place in a trader's strategic toolbox. They touch on rolling bonds over and over. Tom didn't expect the stock move to be as big as it was to the downside after such a rally, which brings them to the concept of asymmetric risk. But hey, the yield curve is working and that is all that matters right? Tony has been steeped on the yield curve for over a year now. He's got all the time in the world to wait it out. Victor wants to understand, with everything happening in the bond market, which took out cuts that were priced in, is this an opportunity to bet on higher interest rates, or are things coming up that will bite this rally in the ass? Victor would look at the VIX and VVIX, see how the fear is priced in, assess the tails, and list everything out. He believes Tom and Tony wouldn't do that because they could care less about people's fears. You got Ukraine, OPEC Plus (Russia again) hinting at cutting output which would ultimately result in higher energy costs, the UK's slowing GDP and the loss of parity which is signaling that Europe is edging closer to a recession... Victor believes Tom and Tony would keep selling the right and left tails regardless of the whole fear narrative. He's not wrong. The US dollar's flight to safety, the central bank's aggressiveness in raising rates, and the feeling of being handcuffed to energy costs… are just a few examples of the fear factors in the market. He notes that Tom would look at the VIX being at 22 and the soaring US dollar and think that's above the historical average, so keep selling. How does Tom think that way? Tom: "It blows my mind how you can't think that way…." Uh-oh. Tune in to see whether they agree to disagree on today's episode.
Victor joins Tom and Tony to discuss whether caution has any place in a trader's strategic toolbox. They touch on rolling bonds over and over. Tom didn't expect the stock move to be as big as it was to the downside after such a rally, which brings them to the concept of asymmetric risk. But hey, the yield curve is working and that is all that matters right? Tony has been steeped on the yield curve for over a year now. He's got all the time in the world to wait it out. Victor wants to understand, with everything happening in the bond market, which took out cuts that were priced in, is this an opportunity to bet on higher interest rates, or are things coming up that will bite this rally in the ass? Victor would look at the VIX and VVIX, see how the fear is priced in, assess the tails, and list everything out. He believes Tom and Tony wouldn't do that because they could care less about people's fears. You got Ukraine, OPEC Plus (Russia again) hinting at cutting output which would ultimately result in higher energy costs, the UK's slowing GDP and the loss of parity which is signaling that Europe is edging closer to a recession... Victor believes Tom and Tony would keep selling the right and left tails regardless of the whole fear narrative. He's not wrong. The US dollar's flight to safety, the central bank's aggressiveness in raising rates, and the feeling of being handcuffed to energy costs… are just a few examples of the fear factors in the market. He notes that Tom would look at the VIX being at 22 and the soaring US dollar and think that's above the historical average, so keep selling. How does Tom think that way? Tom: "It blows my mind how you can't think that way…." Uh-oh. Tune in to see whether they agree to disagree on today's episode.
In the current cash crypto market, there is not a simple way to take a short crypto position or hedge a long crypto position. Traders can use options on equities that are correlated to the crypto market, but that is not the ideal solution.One such way that traders and investors can take short crypto positions is through the use of micro crypto futures. Not only do they allow traders to express a short bias and scalp, but longer term investors can utilize micro crypto futures to hedge their long positions. The capital efficiency and simplicity of futures trading can help crypto investors and traders manage their positions and risk.
In the current cash crypto market, there is not a simple way to take a short crypto position or hedge a long crypto position. Traders can use options on equities that are correlated to the crypto market, but that is not the ideal solution.One such way that traders and investors can take short crypto positions is through the use of micro crypto futures. Not only do they allow traders to express a short bias and scalp, but longer term investors can utilize micro crypto futures to hedge their long positions. The capital efficiency and simplicity of futures trading can help crypto investors and traders manage their positions and risk.
Rate hike fears have gone from “good” to “BAD” for stocks. Meme mania rise once again ends in ROUT. Russia shuts off Nord Stream gas flows to Europe.Leftovers - The world’s longest rivers.
Rate hike fears have gone from “good” to “BAD” for stocks. Meme mania rise once again ends in ROUT. Russia shuts off Nord Stream gas flows to Europe.Leftovers - The world’s longest rivers.
As a second derivative of the Black-Scholes Model, Gamma is an important Greek that we use in our trading all the time, but the Negative Gamma that we experience as premium sellers can be difficult to understand. Here’s how to interpret Negative Gamma, and what it means for your positions.Did you catch our recently on how to determine Delta/Theta levels for your portfolio?
As a second derivative of the Black-Scholes Model, Gamma is an important Greek that we use in our trading all the time, but the Negative Gamma that we experience as premium sellers can be difficult to understand. Here’s how to interpret Negative Gamma, and what it means for your positions.Did you catch our recently on how to determine Delta/Theta levels for your portfolio?
Anton and Pete discuss the futures market and take a look at some opportunities in yield products. For those wanting to trade short premium while betting on a steepening yield curve, Anton discusses a combination of puts and calls in both /ZB and /ZN as a possibility.
Anton and Pete discuss the futures market and take a look at some opportunities in yield products. For those wanting to trade short premium while betting on a steepening yield curve, Anton discusses a combination of puts and calls in both /ZB and /ZN as a possibility.
During this live episode, we have many questions from viewers regarding strategies: ratio spreads, spiked lizards, and more! Anton also clarifies the difference between different types of "skew" in the markets.
During this live episode, we have many questions from viewers regarding strategies: ratio spreads, spiked lizards, and more! Anton also clarifies the difference between different types of "skew" in the markets.
Mike and Nick take a deep dive into three popular earnings announcements for this week - NVDA, CRM and ZM.
Nick places a put broken heart butterfly in ZM, and Mike buys a put diagonal spread so they're both playing the downside.
NVDA and CRM announcements will take place Wednesday after the market closes, and with such volatility in the general market, they decide to hold off until Wednesday to place a trade.
Tune in to learn more with a live Q&A as well!
Mike and Nick take a deep dive into three popular earnings announcements for this week - NVDA, CRM and ZM.
Nick places a put broken heart butterfly in ZM, and Mike buys a put diagonal spread so they're both playing the downside.
NVDA and CRM announcements will take place Wednesday after the market closes, and with such volatility in the general market, they decide to hold off until Wednesday to place a trade.
Tune in to learn more with a live Q&A as well!
Liz and Jenny take a look at 8 trade ideas in NFLX. They land on a short put but discuss everything from strangles to reverse big lizards.
Curious about the Reverse Big Lizard and how it can become part of your trade strategy? Check out this tutorial.
Confused about the significance of the ZEBRA? Liz and Jenny walk you through.
Liz and Jenny take a look at 8 trade ideas in NFLX. They land on a short put but discuss everything from strangles to reverse big lizards.
Curious about the Reverse Big Lizard and how it can become part of your trade strategy? Check out this tutorial.
Confused about the significance of the ZEBRA? Liz and Jenny walk you through.
Liz and Jenny talk about three of their favorite strategies, the jade lizard, the big lizard, and the reverse big lizard. They place an earnings jade lizard in Zoom. They also put on a new trade in Weber. After today's down move, their QQQ and SPY reverse big lizards close for a profit.
Liz and Jenny talk about three of their favorite strategies, the jade lizard, the big lizard, and the reverse big lizard. They place an earnings jade lizard in Zoom. They also put on a new trade in Weber. After today's down move, their QQQ and SPY reverse big lizards close for a profit.
In a recent Market Measures, we looked at how often trades, specifically 16∆ strangles, turned around from hitting a mental stop loss of -200%.We found that there was a roughly 25% chance of this type of turnaround across a number of underlyings with varying volatility.That begs the question: how long should we hold out for a turnaround, and does waiting have a significant impact on our P/L?Join Tom and Tony to find out!
In a recent Market Measures, we looked at how often trades, specifically 16∆ strangles, turned around from hitting a mental stop loss of -200%.We found that there was a roughly 25% chance of this type of turnaround across a number of underlyings with varying volatility.That begs the question: how long should we hold out for a turnaround, and does waiting have a significant impact on our P/L?Join Tom and Tony to find out!
Active trading is always about exchanging gimmes and gotchas to build your custom portfolio. And there is no better example of this than with the classic probability/profit trade off that must always be made. Where the middle ground usually offers a reasonable balance between the two.Did you catch our recently on how to determine Delta/Theta levels for your portfolio?
Active trading is always about exchanging gimmes and gotchas to build your custom portfolio. And there is no better example of this than with the classic probability/profit trade off that must always be made. Where the middle ground usually offers a reasonable balance between the two.Did you catch our recently on how to determine Delta/Theta levels for your portfolio?
This week's Research Corner described the story of implied volatility for nearly all assets increasing by 20% over the last couple weeks, while equity implied volatility only creeping up 10% over the last week. Watch to get Tom and Tony's take on this interesting move.
This week's Research Corner described the story of implied volatility for nearly all assets increasing by 20% over the last couple weeks, while equity implied volatility only creeping up 10% over the last week. Watch to get Tom and Tony's take on this interesting move.
之前我们谈到了裸期权中的卖出看涨和看跌期权的保证金算法，那么作为这两者的组合宽跨式呢？我们是应该把两者的保证金相加，相乘，还是取其中的一边？这期节目我们会解释如何得到期权策略中最常用的宽跨式的保证金。 更多信息: info.tastytrade.com/cn
In the previous episode, we explained the three key components that calculate the buying power (Margin requirement) of naked puts and calls. What about Strangles, the combination of the two? Do we add the BPs of these two together or only take one side of them? Let’s listen to Kai’s explanation of how to get BPR of this most traded options strategy, Strangles.
When theta is used in the universe of options trading, it is easy to misinterpret its actual meaning and its value to us as traders. A misuse of theta can lead to portfolio overexposure and amplified outlier risk. Anton from the tastytrade Research Team steps in to give a clear explanation of theta, why we care about it, how to use it, and how to steer clear from this common misinterpretation.
When theta is used in the universe of options trading, it is easy to misinterpret its actual meaning and its value to us as traders. A misuse of theta can lead to portfolio overexposure and amplified outlier risk. Anton from the tastytrade Research Team steps in to give a clear explanation of theta, why we care about it, how to use it, and how to steer clear from this common misinterpretation.
Anton from the tastytrade Research Team answers questions LIVE on air direct from our YouTube live stream. Have a question? Join us every day at noon Central Time and ask your question LIVE. Today's questions included: How much theta should an options trader have in their portfolio? How do you use IV and price to estimate credit without knowing it? And many more!
Anton from the tastytrade Research Team answers questions LIVE on air direct from our YouTube live stream. Have a question? Join us every day at noon Central Time and ask your question LIVE. Today's questions included: How much theta should an options trader have in their portfolio? How do you use IV and price to estimate credit without knowing it? And many more!
Moving an ITM ZEBRA spread back to ATM is known as "ratcheting" the trade, and this reduces risk from the trade by taking value off the table.
The same can be done for diagonal spreads, but this move has a bit more complexity to it.
Tune in to learn more with examples in QQQ and CAT!
Moving an ITM ZEBRA spread back to ATM is known as "ratcheting" the trade, and this reduces risk from the trade by taking value off the table.
The same can be done for diagonal spreads, but this move has a bit more complexity to it.
Tune in to learn more with examples in QQQ and CAT!
It is expiration Friday, so Liz and Jenny clean up their account and make sure that all ITM options have been closed. They also have a discussion on how they place trades.
Heard about the Zebra? Check out this tutorial to learn more.
It is expiration Friday, so Liz and Jenny clean up their account and make sure that all ITM options have been closed. They also have a discussion on how they place trades.
Heard about the Zebra? Check out this tutorial to learn more.
It's time to roll the small exchange products. Liz and Jenny go over options. They look at a similar, but larger trade in /ZT & /ZN. They decide to stick with the smalls and roll out to the next cycle.
It's time to roll the small exchange products. Liz and Jenny go over options. They look at a similar, but larger trade in /ZT & /ZN. They decide to stick with the smalls and roll out to the next cycle.
In this Market Measures, we continue our search in tradeoffs between our standard mechanics and some alternative ones. This time we look at extending our DTE for our short premium and see how that compares to our standard 45 DTE cycles. The key tradeoff between selling a strangle at 45 DTE compared to a longer dated strangle is the daily P/L that you see over time. Longer trades had slightly higher P/L's per trade, but when normalizing by day, it was a much slower trade. It would be reasonable to expect less overall risk on a daily basis for the longer DTE trades because you consistently made less money per day (taking average P/L divided by DTE).
In this Market Measures, we continue our search in tradeoffs between our standard mechanics and some alternative ones. This time we look at extending our DTE for our short premium and see how that compares to our standard 45 DTE cycles. The key tradeoff between selling a strangle at 45 DTE compared to a longer dated strangle is the daily P/L that you see over time. Longer trades had slightly higher P/L's per trade, but when normalizing by day, it was a much slower trade. It would be reasonable to expect less overall risk on a daily basis for the longer DTE trades because you consistently made less money per day (taking average P/L divided by DTE).
In this segment, we learn to calculate and understand implied volatility adjusted notional value and use it in context of risk/reward comparison. If you have a price and an implied volatility for two different underlyings, how can you fairly compare the risk of those two underlyings? We show that not only is it easy to do, but you can prove the efficiency of markets in the process!
In this segment, we learn to calculate and understand implied volatility adjusted notional value and use it in context of risk/reward comparison. If you have a price and an implied volatility for two different underlyings, how can you fairly compare the risk of those two underlyings? We show that not only is it easy to do, but you can prove the efficiency of markets in the process!
The Euro (/6E) is approaching parity with the US dollar once again. Anton walks through some ways to trade this depending on your assumption and bias in the future direction of the Euro.
The Euro (/6E) is approaching parity with the US dollar once again. Anton walks through some ways to trade this depending on your assumption and bias in the future direction of the Euro.
Live viewer questions include fundamental approaches to research and data science, options skew compared to probabilistic distributions, and more!
Live viewer questions include fundamental approaches to research and data science, options skew compared to probabilistic distributions, and more!
The tastytrade crew offers their options trade ideas for the day! Mike buys a call diagonal spread in AMAT for earnings
Katie buys a put debit spread in WMT to fade the recent rally
Nick buys a call diagonal spread in SMH to play for potential bullish moves in the chip sector
Tune in to learn more with a live Q&A as well!
The tastytrade crew offers their options trade ideas for the day! Mike buys a call diagonal spread in AMAT for earnings
Katie buys a put debit spread in WMT to fade the recent rally
Nick buys a call diagonal spread in SMH to play for potential bullish moves in the chip sector
Tune in to learn more with a live Q&A as well!
Anton and Liz take live tweets and discuss the SPX AM settlement. They also discuss re-centering a trade at the 21 DTE mark and Anton tells the story of his big BBBY win.
Anton and Liz take live tweets and discuss the SPX AM settlement. They also discuss re-centering a trade at the 21 DTE mark and Anton tells the story of his big BBBY win.
Anton joins Liz and they walk though how the greeks affect decision making. Delta seems to be the king of the castle.
Anton joins Liz and they walk though how the greeks affect decision making. Delta seems to be the king of the castle.
Certain assets tend to have put or call skew depending on the directional fears of the market. In this segment, we studied the S&P 500 Index ETF (SPY). We found that its put skew became more pronounced the fear index (VIX) went higher. We concluded that while risks are higher for premium sellers when market volatility is high, they are even more compensated for directional risk.
Certain assets tend to have put or call skew depending on the directional fears of the market. In this segment, we studied the S&P 500 Index ETF (SPY). We found that its put skew became more pronounced the fear index (VIX) went higher. We concluded that while risks are higher for premium sellers when market volatility is high, they are even more compensated for directional risk.
Last week, the U.S. Treasury Department’s Office of Foreign Asset Control (OFAC) sanctioned Tornado Cash and a number of wallets associated with the platform.Tornado Cash is a blockchain protocol for sending and receiving anonymous transactions. So the interesting thing here is that Tornado Cash isn’t a company… It’s an open-source protocol on the Ethereum blockchain.What could this mean for the future of the crypto space and on a larger scale, the tech industry?Join Tom, Tony, and Eddie as they discuss this and more on today’s episode of Alpha Bytes!If you have requests for any topics, reach out to Julia (@FinancePhoton) or Eddie (@ERajcevic11) on Twitter! You can also submit ideas through this form: https://www.tastytrade.com/alp...
Last week, the U.S. Treasury Department’s Office of Foreign Asset Control (OFAC) sanctioned Tornado Cash and a number of wallets associated with the platform.Tornado Cash is a blockchain protocol for sending and receiving anonymous transactions. So the interesting thing here is that Tornado Cash isn’t a company… It’s an open-source protocol on the Ethereum blockchain.What could this mean for the future of the crypto space and on a larger scale, the tech industry?Join Tom, Tony, and Eddie as they discuss this and more on today’s episode of Alpha Bytes!If you have requests for any topics, reach out to Julia (@FinancePhoton) or Eddie (@ERajcevic11) on Twitter! You can also submit ideas through this form: https://www.tastytrade.com/alp...
Bitcoin dominance is simply the ratio of the market cap of Bitcoin to the market cap of the entire crypto market. Currently, Bitcoin's dominance is hovering right around 40%.Bitcoin's dominance is a measure of demand for BTC relative to other cryptos. As we see that fall, does that mean that other cryptos will increase? Or is it a sign for investors and traders that the market is heading lower?Join Eddie as he breaks down the impact of Bitcoin dominance on the market!
Bitcoin dominance is simply the ratio of the market cap of Bitcoin to the market cap of the entire crypto market. Currently, Bitcoin's dominance is hovering right around 40%.Bitcoin's dominance is a measure of demand for BTC relative to other cryptos. As we see that fall, does that mean that other cryptos will increase? Or is it a sign for investors and traders that the market is heading lower?Join Eddie as he breaks down the impact of Bitcoin dominance on the market!
On today's Splash Into Futures, Anton from the Research Team reveals that when we place a trade, certain options Greeks like: theta, vega, and gamma as well as Probability of Profit are fully dependent on the other variables that we must consider first. Essentially, when you decide on the IV, price, strategy, delta, and expiration cycle, the other Greeks and POP are moot because they are already determined once you select the four factors above. The only Greek that matters beyond the first four factors is delta which has unique properties of its own.
On today's Splash Into Futures, Anton from the Research Team reveals that when we place a trade, certain options Greeks like: theta, vega, and gamma as well as Probability of Profit are fully dependent on the other variables that we must consider first. Essentially, when you decide on the IV, price, strategy, delta, and expiration cycle, the other Greeks and POP are moot because they are already determined once you select the four factors above. The only Greek that matters beyond the first four factors is delta which has unique properties of its own.
Today's LIVE questions included concepts like: option skew, diagonal spreads, covered calls, risk in earnings trades, and more! Visit the tastytrade YouTube page to ask your own question LIVE to the Research Team every day at 12 pm central time.
Today's LIVE questions included concepts like: option skew, diagonal spreads, covered calls, risk in earnings trades, and more! Visit the tastytrade YouTube page to ask your own question LIVE to the Research Team every day at 12 pm central time.
CSCO and AMAT have earnings after the close today and tomorrow respectively, and they both have similar implied volatility structures - tune in to get a full breakdown from Nick and Mike with some trade ideas in the products as well!
CSCO and AMAT have earnings after the close today and tomorrow respectively, and they both have similar implied volatility structures - tune in to get a full breakdown from Nick and Mike with some trade ideas in the products as well!
Liz and Jenny look at 10 viewer assumptions to create high probability trades with capital efficiency in mind. They look at everything from calendar spreads, reverse big lizards, to ZEBRAS.
Check out more uses for the Reverse Big Lizard and the Zebra (Zero Extrinsic Back Ratio).
Liz and Jenny look at 10 viewer assumptions to create high probability trades with capital efficiency in mind. They look at everything from calendar spreads, reverse big lizards, to ZEBRAS.
Check out more uses for the Reverse Big Lizard and the Zebra (Zero Extrinsic Back Ratio).
Liz and Jenny take off their LOW and TGT earnings trades for a profit and look at CSCO for tonight. They also take live tweets on twitter anniversaries and trade ideas in REV.
Liz and Jenny take off their LOW and TGT earnings trades for a profit and look at CSCO for tonight. They also take live tweets on twitter anniversaries and trade ideas in REV.
There is a powerful effect when you combine product non-correlation, delta and strategy diversification. We call this "capital efficiency" and it differs from leverage in the following way: Although portfolio notional exposure is 4.5x of net liquidity, the effect of product non-correlation, strategy, and delta diversification, you are able to be capital efficient without overleveraging.
There is a powerful effect when you combine product non-correlation, delta and strategy diversification. We call this "capital efficiency" and it differs from leverage in the following way: Although portfolio notional exposure is 4.5x of net liquidity, the effect of product non-correlation, strategy, and delta diversification, you are able to be capital efficient without overleveraging.
Theoretically, an at-the-money option’s price should depreciate toward expiration, accelerating in the last month.Does this hold true in actual trading?Join Tom and Tony as they discuss the time value decay in Puts and Calls.
Theoretically, an at-the-money option’s price should depreciate toward expiration, accelerating in the last month.Does this hold true in actual trading?Join Tom and Tony as they discuss the time value decay in Puts and Calls.
Acquiring talent in the workplace is one thing, but keeping them is a whole another ballgame. Peter Thiel once said, "creating value isn't enough, you also need to capture some of the value you create." The (A) Lyst Group has over 30 years of experience in the human capital and operations functions within early stage hyper-growth companies and public companies. Tim Wenzel talks with Dylan Ratigan about his company's services and what it was like working with Elon Musk early in is career. Learn More about The (A)Lyst Group
Acquiring talent in the workplace is one thing, but keeping them is a whole another ballgame. Peter Thiel once said, "creating value isn't enough, you also need to capture some of the value you create." The (A) Lyst Group has over 30 years of experience in the human capital and operations functions within early stage hyper-growth companies and public companies. Tim Wenzel talks with Dylan Ratigan about his company's services and what it was like working with Elon Musk early in is career. Learn More about The (A)Lyst Group
James and Eddie review the markets, discussing what's happening in Natural Gas and Crude Oil before reviewing the quieter days in equities. The duo move on to discuss micro Bitcoin (/MBT) and micro Ethereum (/MET) contracts and how traders might add them to their portfolio. They discuss the concept of scaling with such small futures products and how traders can use these contracts to hedge a larger cryptocurrency portfolio or for speculation and learning futures products.
James and Eddie review the markets, discussing what's happening in Natural Gas and Crude Oil before reviewing the quieter days in equities. The duo move on to discuss micro Bitcoin (/MBT) and micro Ethereum (/MET) contracts and how traders might add them to their portfolio. They discuss the concept of scaling with such small futures products and how traders can use these contracts to hedge a larger cryptocurrency portfolio or for speculation and learning futures products.
Throughout numerous studies, we’ve found that having a mental stop loss right around -200% of initial credit provided a good balance of risk and return.If we set our mental stops too low, we may close out of potentially winning trades, and if the stops are too high, we may suffer from too large of losers.Kai and Eddie discuss the likelihood of seeing losing trades (at -200%) come back and turn into winners by the time they are managed.
Throughout numerous studies, we’ve found that having a mental stop loss right around -200% of initial credit provided a good balance of risk and return.If we set our mental stops too low, we may close out of potentially winning trades, and if the stops are too high, we may suffer from too large of losers.Kai and Eddie discuss the likelihood of seeing losing trades (at -200%) come back and turn into winners by the time they are managed.
AMC is recategorizing into 95% AMC 5% APE stock on the 19th of August, so the tastytrade crew breaks down what to expect before and after this event.
8-K Filing
AMC Shareholder Note
Tune in to learn more with a focus on TGT earnings as well!
AMC is recategorizing into 95% AMC 5% APE stock on the 19th of August, so the tastytrade crew breaks down what to expect before and after this event.
8-K Filing
AMC Shareholder Note
Tune in to learn more with a focus on TGT earnings as well!
Liz and Jenny talk through a few scenarios on how to add short delta to a portfolio. They discuss everything from poor man's covered puts to ZEBRAS and reducing your position size.
Want to learn more about the Zebra strategy? Liz and Jenny walk you through the basics.
Liz and Jenny talk through a few scenarios on how to add short delta to a portfolio. They discuss everything from poor man's covered puts to ZEBRAS and reducing your position size.
Want to learn more about the Zebra strategy? Liz and Jenny walk you through the basics.
Liz and Jenny look for earnings trades. They sell a strangle in Target and a calendar in Lowes. They discuss dividend risk and look at their Microsoft position to determine if the short ITM calls are at risk of assignment.
Liz and Jenny look for earnings trades. They sell a strangle in Target and a calendar in Lowes. They discuss dividend risk and look at their Microsoft position to determine if the short ITM calls are at risk of assignment.
In the six key IV deflationary periods, the fastest amount of IVR deflation happened on its way from 90% to 50%, taking an average of 12 days. After IVR reaches 50%, we still tended to see a net decline going forward, but it took longer for premium to come out... up to 17 times longer for the same percentage point deflation than the initial decline.
In the six key IV deflationary periods, the fastest amount of IVR deflation happened on its way from 90% to 50%, taking an average of 12 days. After IVR reaches 50%, we still tended to see a net decline going forward, but it took longer for premium to come out... up to 17 times longer for the same percentage point deflation than the initial decline.
In the last episode, we discussed naked puts and calls as they are the starting point for understanding all other strategies.One of the tradeoffs of naked options is the undefined risk profile. For many investors with smaller accounts, this type of risk and buying power requirement may not be feasible.This is where vertical spreads come into play. As an alternative to the naked put and call, vertical spreads offer similar trades to be placed at a fraction of the buying power requirement.
In the last episode, we discussed naked puts and calls as they are the starting point for understanding all other strategies.One of the tradeoffs of naked options is the undefined risk profile. For many investors with smaller accounts, this type of risk and buying power requirement may not be feasible.This is where vertical spreads come into play. As an alternative to the naked put and call, vertical spreads offer similar trades to be placed at a fraction of the buying power requirement.
Victor, Tom, and Tony discuss Tom's love of grifters… not the 1990 neo-noir crime thriller, but the actual hustlers. So, Adam Neumann has a new start-up. The former founder and CEO of WeWork, a company that he led to the tune of more than $40 billion… THEN. If you remember, the company went on an IPO roadshow. His investors put a lot of money into it, and it still never went public. Soft Bank’s Masayoshi Son even got involved. In the end, the company was valued at $2-5 billion dollars. More golden handcuffs for Neumann, who still made money in the deal. Enter the latest company, aptly named Flow Carbon, where Neumann began selling carbon credits on the blockchain. Andreessen Horowitz another major player in the venture capital industry wrote a $350 million check to Neumann, the biggest check written in the company's history, for an idea, involving 3,000 apartments in Neumann's latest venture, with shares in real estate in Miami, Fort Lauderdale, Atlanta, Nashville, and other major cities in the US. As Victor puts it, "Adam Neumann saving the world again through residential real estate." There seems to be a pattern here. Rent to own is his jam. Tom hates this business model and makes no bones about it. BUT private equity has the capital to bet on people like Neumann, knowing fully that the odds of success are miniscule. But Neumann's got the billion-dollar touch, right? This is a pure bet; all conjecture, the venture capitalists think you can make billions more dollars than they initially invested. And that is why people like Neumann with a sketchy history of success keeps getting people to back up his ventures. Is it all charm, or is this guy more talented than most would think? But therein lies the grift. See what Tom, Tony and Victor decide on today’s Hear Me Out.
Victor, Tom, and Tony discuss Tom's love of grifters… not the 1990 neo-noir crime thriller, but the actual hustlers. So, Adam Neumann has a new start-up. The former founder and CEO of WeWork, a company that he led to the tune of more than $40 billion… THEN. If you remember, the company went on an IPO roadshow. His investors put a lot of money into it, and it still never went public. Soft Bank’s Masayoshi Son even got involved. In the end, the company was valued at $2-5 billion dollars. More golden handcuffs for Neumann, who still made money in the deal. Enter the latest company, aptly named Flow Carbon, where Neumann began selling carbon credits on the blockchain. Andreessen Horowitz another major player in the venture capital industry wrote a $350 million check to Neumann, the biggest check written in the company's history, for an idea, involving 3,000 apartments in Neumann's latest venture, with shares in real estate in Miami, Fort Lauderdale, Atlanta, Nashville, and other major cities in the US. As Victor puts it, "Adam Neumann saving the world again through residential real estate." There seems to be a pattern here. Rent to own is his jam. Tom hates this business model and makes no bones about it. BUT private equity has the capital to bet on people like Neumann, knowing fully that the odds of success are miniscule. But Neumann's got the billion-dollar touch, right? This is a pure bet; all conjecture, the venture capitalists think you can make billions more dollars than they initially invested. And that is why people like Neumann with a sketchy history of success keeps getting people to back up his ventures. Is it all charm, or is this guy more talented than most would think? But therein lies the grift. See what Tom, Tony and Victor decide on today’s Hear Me Out.
With both HD and WMT reporting earnings in the morning, we wanted to get some strategies on to position ourselves for a bullish move in either of those stocks. Specifically, we looked to use an Expected Move Butterfly in both, which could give us a great payoff if the market moves in our favor.And today, we’re streaming live on YouTube, so spend most of the show answering your questions!
With both HD and WMT reporting earnings in the morning, we wanted to get some strategies on to position ourselves for a bullish move in either of those stocks. Specifically, we looked to use an Expected Move Butterfly in both, which could give us a great payoff if the market moves in our favor.And today, we’re streaming live on YouTube, so spend most of the show answering your questions!
SKEW tells us that the market perceives the high-velocity move to be on one side of the market. To find SKEW, compare equidistant OTM options prices and see which side is higher-priced. That's where the SKEW is.
Tune in to learn more about how SKEW can affect specific options strategies, and how we can either be at the mercy of or take advantage of it with directional and neutral trades.
SKEW tells us that the market perceives the high-velocity move to be on one side of the market. To find SKEW, compare equidistant OTM options prices and see which side is higher-priced. That's where the SKEW is.
Tune in to learn more about how SKEW can affect specific options strategies, and how we can either be at the mercy of or take advantage of it with directional and neutral trades.
Liz and Jenny go over trade ideas from Alpha Boost in IWM. Since they already have an IWM strangle that is close to to being tested, they add an upside broken wing butterfly to help off-set the possible loss from their current strangle. They also place a new SEP reverse big lizard in SPY.
Liz and Jenny go over trade ideas from Alpha Boost in IWM. Since they already have an IWM strangle that is close to to being tested, they add an upside broken wing butterfly to help off-set the possible loss from their current strangle. They also place a new SEP reverse big lizard in SPY.
Liz and Jenny take live tweets containing #LIZJNY. They look at joining a bowling league and ratcheting up a Zebra in snap.
Check out the Liz and Jenny tutorial on Zero Extrinsic Back RAtio.
Want to know more about the Zebra Ratchet?
Liz and Jenny take live tweets containing #LIZJNY. They look at joining a bowling league and ratcheting up a Zebra in snap.
Check out the Liz and Jenny tutorial on Zero Extrinsic Back RAtio.
Want to know more about the Zebra Ratchet?
The 2-year and 10-year Treasury yields have been in conversation for much of this year, whether it be the initial inversion in April, or the continued inversion since July.
A normal yield curve shows a direct relationship between the duration and the yield, meaning as duration increases, so should the yield. Interestingly, that has not been the case this year. So that begs the following questions: how wide does the 10-2 spread go and when will it revert?
Join Tom and Tony and find out!
The 2-year and 10-year Treasury yields have been in conversation for much of this year, whether it be the initial inversion in April, or the continued inversion since July.
A normal yield curve shows a direct relationship between the duration and the yield, meaning as duration increases, so should the yield. Interestingly, that has not been the case this year. So that begs the following questions: how wide does the 10-2 spread go and when will it revert?
Join Tom and Tony and find out!
Complex math and models from all fields can often have an application to what we do as tastytraders. As we see today with the Fourier Transform concept that is more commonly used in Signaling Theory and musical analysis. Which reminds us of the value of deconstructing larger equations into their component parts to aid in decision making.Did you catch our recently on how to determine Delta/Theta levels for your portfolio?
Complex math and models from all fields can often have an application to what we do as tastytraders. As we see today with the Fourier Transform concept that is more commonly used in Signaling Theory and musical analysis. Which reminds us of the value of deconstructing larger equations into their component parts to aid in decision making.Did you catch our recently on how to determine Delta/Theta levels for your portfolio?
上期节目我们对期权的保证金计算方法进行了一个归类并给出了几种计算方法。但是我们在介绍裸期权时，只给出了一个快捷方法。裸期权的保证金计算其实要比这个更复杂一些，那么它的准确算法是什么？这期节目，我们来看一下裸期权保证金的最主要的三个组成部分，为什么了解具体的计算对我们期权的交易有着莫大的帮助。 更多信息: info.tastytrade.com/cn
In the previous episode, we introduced various ways to calculate option strategies’ Buying Power Reduction (Or Margin). But we only provided a shortcut for the naked options. The actual formula is a bit more complex. This time, we discuss the real formula to calculate the naked option’s BPR and why understanding it can help us become better traders.
Jermal Chandler and Michael 'Dr. Data' Rechenthin explain the benefits of using Greek values in options trading when it comes to building a $100K portfolio. Based on the Top Dogs segment seen on tastytrade Live.
Jermal Chandler and Michael 'Dr. Data' Rechenthin explain the benefits of using Greek values in options trading when it comes to building a $100K portfolio. Based on the Top Dogs segment seen on tastytrade Live.
The main goal of an Inverted Strangle is actually no different from the main goal of a Regular Strangle - you want the stock to stay between your short strikes. What this does is essentially minimizes the intrinsic value of the strategy, while allowing the extrinsic value to fall over time. With an Inverted Strangle, however, you need to be aware of the minimum value of the strategy, as well as a reasonable expectation for management.
The main goal of an Inverted Strangle is actually no different from the main goal of a Regular Strangle - you want the stock to stay between your short strikes. What this does is essentially minimizes the intrinsic value of the strategy, while allowing the extrinsic value to fall over time. With an Inverted Strangle, however, you need to be aware of the minimum value of the strategy, as well as a reasonable expectation for management.
Anton looks at some opportunities in natural gas for those who want to trade a very volatile product that has a lot of call skew!
Anton looks at some opportunities in natural gas for those who want to trade a very volatile product that has a lot of call skew!
Placing a ZEBRA on the skewed side means a more expensive trade than placing it on the non-skewed side, but it does mean that the long options could retain extrinsic value in a more impactful way if the stock moves against you, resulting in a lower loss than the delta equivalent in shares of stock.
They look at AMC and SPY as examples - tune in to learn more with a live Q&A session as well!
Placing a ZEBRA on the skewed side means a more expensive trade than placing it on the non-skewed side, but it does mean that the long options could retain extrinsic value in a more impactful way if the stock moves against you, resulting in a lower loss than the delta equivalent in shares of stock.
They look at AMC and SPY as examples - tune in to learn more with a live Q&A session as well!
Liz and Jenny move the Pinterest zebra out in time and add a strangle around it for extra theta decay. Rivian's earnings are out, Liz and Jenny decide to put on a SEP big lizard. They look at an Amazon iron condor, but land on a jade lizard.
Liz and Jenny move the Pinterest zebra out in time and add a strangle around it for extra theta decay. Rivian's earnings are out, Liz and Jenny decide to put on a SEP big lizard. They look at an Amazon iron condor, but land on a jade lizard.
Anton joins Liz and Jenny and the show goes off the rails. They discuss the movies Field of Dreams and The Sandlot. They also touch on the subject of picking an expiration cycle for options trades.
Anton joins Liz and Jenny and the show goes off the rails. They discuss the movies Field of Dreams and The Sandlot. They also touch on the subject of picking an expiration cycle for options trades.
The key tradeoffs between shorter and longer DTE defined risk trades comes down to the number of occurrences, and potential to make (or lose) more money quickly. Shorter DTE trades can rack up higher profits in favorable markets but are much more exposed over a short period of time when markets crash. Longer DTE trades are actually the less risky option, all else equal, because the same risk is spread out over longer periods of time.
The key tradeoffs between shorter and longer DTE defined risk trades comes down to the number of occurrences, and potential to make (or lose) more money quickly. Shorter DTE trades can rack up higher profits in favorable markets but are much more exposed over a short period of time when markets crash. Longer DTE trades are actually the less risky option, all else equal, because the same risk is spread out over longer periods of time.
Volatility has subsided and markets are on an upward trend. Join Tom, Tony and Jermal as they show you the hallmarks of the current rally on This Week in Stocks.
Volatility has subsided and markets are on an upward trend. Join Tom, Tony and Jermal as they show you the hallmarks of the current rally on This Week in Stocks.
CPI at 8.5% still high but lower 9.1% in June. Probability of 75 bps hike dips back below 50%. Disney+ growth and higher parks revenue helps DIS beat.Leftovers - Countries with the highest oil reserves.
CPI at 8.5% still high but lower 9.1% in June. Probability of 75 bps hike dips back below 50%. Disney+ growth and higher parks revenue helps DIS beat.Leftovers - Countries with the highest oil reserves.
In recent days, the CPI and PPI have shown that inflation has stabilized and prices might be cooling off a bit. There’s still a ton of work to do to bring inflation down to meet the Fed’s ultimate goal, but it’s a good start. Either way, as a trader, how should you trade these economic numbers?That’s the topic for today’s YouTube Livestream, and of course, we answer as many of your questions as we can!
In recent days, the CPI and PPI have shown that inflation has stabilized and prices might be cooling off a bit. There’s still a ton of work to do to bring inflation down to meet the Fed’s ultimate goal, but it’s a good start. Either way, as a trader, how should you trade these economic numbers?That’s the topic for today’s YouTube Livestream, and of course, we answer as many of your questions as we can!
One of the ways we can discern the nature of risk for an underlying is by looking at its distribution. There are generally four key characteristics that a distribution will have that we care about: Width, Tails, Shape, Skew. All of these are priced in by options markets even though they may be hard to see on the following graphs. Similar to historical volatility and historical outlier moves, a historical distribution shows you a picture of everything that the underlying has been through.
One of the ways we can discern the nature of risk for an underlying is by looking at its distribution. There are generally four key characteristics that a distribution will have that we care about: Width, Tails, Shape, Skew. All of these are priced in by options markets even though they may be hard to see on the following graphs. Similar to historical volatility and historical outlier moves, a historical distribution shows you a picture of everything that the underlying has been through.
The tastytrade crew offers their options trade ideas for the day! Mike buys a put diagonal spread in RIVN for earnings
Katie sells a natural gas futures iron condor
Nick sells a GOOGL strangle
Tune in to learn more and a live Q&A as well!
The tastytrade crew offers their options trade ideas for the day! Mike buys a put diagonal spread in RIVN for earnings
Katie sells a natural gas futures iron condor
Nick sells a GOOGL strangle
Tune in to learn more and a live Q&A as well!
Liz and Jenny take off all of their earnings trades from yesterday and redeploy the capital to Noble Corporation (NE) earnings trades. They launch a twitter poll to see who has seen the the movie The Sandlot!
Liz and Jenny take off all of their earnings trades from yesterday and redeploy the capital to Noble Corporation (NE) earnings trades. They launch a twitter poll to see who has seen the the movie The Sandlot!
Liz and Jenny close their short small dollar and replace that position with short calls instead. They get back into oil with an iron condor in /CL. They also compare ETF strangles to /MES strangles and talk buying power.
Liz and Jenny close their short small dollar and replace that position with short calls instead. They get back into oil with an iron condor in /CL. They also compare ETF strangles to /MES strangles and talk buying power.
Jeff Joseph, editorial director & publisher of luckbox magazine, joins Tom and Tony to discuss the magazine's August edition titled: Is College Worth it? Aside from the social aspects of college, such as assimilating into society and becoming part of a culture, this qualitative analysis addresses various outcomes associated with a college degree's true economic value. They looked at the lifetime ROI on 30,000 majors (at 1700 universities). Spoiler alert, more than 25% have negative ROIs. Tuition costs, textbooks, and housing were also baked into the study. This data is also weighed against the salaries of non-college degreed workers. A must for any parent or high school student who might be on the fence about whether college costs align or outweigh the projected income in that field. Have you ever wondered why, as a student, you paid hundreds of dollars for your college textbooks, and when you returned them, you only got $2 back? Because college textbook publishers are a monopoly (there are only five of them in existence), associate editor Mike Reddy tackles the college textbook publishing industry and asks even without the overhead costs associated with print production in the digital era, why are students still paying a premium for these books. Good stuff.
Subscribe here.
Check out the August issue.
Jeff Joseph, editorial director & publisher of luckbox magazine, joins Tom and Tony to discuss the magazine's August edition titled: Is College Worth it? Aside from the social aspects of college, such as assimilating into society and becoming part of a culture, this qualitative analysis addresses various outcomes associated with a college degree's true economic value. They looked at the lifetime ROI on 30,000 majors (at 1700 universities). Spoiler alert, more than 25% have negative ROIs. Tuition costs, textbooks, and housing were also baked into the study. This data is also weighed against the salaries of non-college degreed workers. A must for any parent or high school student who might be on the fence about whether college costs align or outweigh the projected income in that field. Have you ever wondered why, as a student, you paid hundreds of dollars for your college textbooks, and when you returned them, you only got $2 back? Because college textbook publishers are a monopoly (there are only five of them in existence), associate editor Mike Reddy tackles the college textbook publishing industry and asks even without the overhead costs associated with print production in the digital era, why are students still paying a premium for these books. Good stuff.
Subscribe here.
Check out the August issue.
Because options are volatile instruments, they often have P/Ls that drift negative but revert back to positive sometime before expiration.How likely is it for a short strangle to have a positive P/L before expiration given a upside breach of a certain magnitude? What about a downside breach? Join Tom and Tony as they discuss some statistics around strike breaches.
Because options are volatile instruments, they often have P/Ls that drift negative but revert back to positive sometime before expiration.How likely is it for a short strangle to have a positive P/L before expiration given a upside breach of a certain magnitude? What about a downside breach? Join Tom and Tony as they discuss some statistics around strike breaches.
Crypto wallets have been in the headlines for the past few months, for both good and bad reasons. Good (but bad)—people are realizing the importance of wallets due to the various centralized crypto firm collapses. Bad—the Solana wallet hacks last week, which caused fear surrounding wallets. But what exactly are crypto wallets? Do you need one to trade crypto?Join Tom, Tony, and Eddie as they discuss this and more on today’s episode of Alpha Bytes!If you have requests for any topics, reach out to Julia (@FinancePhoton) or Eddie (@ERajcevic11) on Twitter! You can also submit ideas through this form: https://www.tastytrade.com/alp...
Crypto wallets have been in the headlines for the past few months, for both good and bad reasons. Good (but bad)—people are realizing the importance of wallets due to the various centralized crypto firm collapses. Bad—the Solana wallet hacks last week, which caused fear surrounding wallets. But what exactly are crypto wallets? Do you need one to trade crypto?Join Tom, Tony, and Eddie as they discuss this and more on today’s episode of Alpha Bytes!If you have requests for any topics, reach out to Julia (@FinancePhoton) or Eddie (@ERajcevic11) on Twitter! You can also submit ideas through this form: https://www.tastytrade.com/alp...
The sound of a meat snack commonly sold in the form of jerky or meat sticks..isn't too appealing to me...until you tried one of the healthiest snacks sold in the U.S.. Did you know that the snack industry is a $46.3B business! A whopping 92% of Americans eat snacks every day. 62% snack just to satisfy cravings. Most of them don't even know the real difference between healthy and unhealthy snacks. But, an explosion of healthy snacks is taking place in the U.S.. Chomps, a consumer meat stick snack is doing it the right way. They are dedicated to the environment, animals that are humanely raised on open pastures and never treated with hormones or antibiotics, which turns provides protein that has no added sugar or harmful ingredients, and taste incredibly good. CEO & Co-founder, Peter Maldonado, discusses the snack industry with Dylan Ratigan.
The sound of a meat snack commonly sold in the form of jerky or meat sticks..isn't too appealing to me...until you tried one of the healthiest snacks sold in the U.S.. Did you know that the snack industry is a $46.3B business! A whopping 92% of Americans eat snacks every day. 62% snack just to satisfy cravings. Most of them don't even know the real difference between healthy and unhealthy snacks. But, an explosion of healthy snacks is taking place in the U.S.. Chomps, a consumer meat stick snack is doing it the right way. They are dedicated to the environment, animals that are humanely raised on open pastures and never treated with hormones or antibiotics, which turns provides protein that has no added sugar or harmful ingredients, and taste incredibly good. CEO & Co-founder, Peter Maldonado, discusses the snack industry with Dylan Ratigan.
Warren Buffet pays less in taxes than his assistant. A kid in college who will become an investment banker and a kid who will become a teacher pay the same amount for their education, but their expected earnings are not remotely close. There is little or no financial incentive to fill the most critical roles a society needs to improve itself. Is it a question of misplaced values on who makes what, or is it a misaligned economic system that incentivizes resources in the wrong direction? In either case, college graduates continue to feel the squeeze from college loan debt and the potential for not finding a job that will ever equal the cost of their degree. Tom and Dylan take on this topic and more on today's Truth or Skepticism.
Warren Buffet pays less in taxes than his assistant. A kid in college who will become an investment banker and a kid who will become a teacher pay the same amount for their education, but their expected earnings are not remotely close. There is little or no financial incentive to fill the most critical roles a society needs to improve itself. Is it a question of misplaced values on who makes what, or is it a misaligned economic system that incentivizes resources in the wrong direction? In either case, college graduates continue to feel the squeeze from college loan debt and the potential for not finding a job that will ever equal the cost of their degree. Tom and Dylan take on this topic and more on today's Truth or Skepticism.
Today Errol and Dr. Jim discuss the importance of trade entry on Disney earnings. With CPI data coming in lower than expected Errol and Dr. Jim navigate the markets volatility. Dr. Jim reminds Errol that making no adjustments is always an option.
Today Errol and Dr. Jim discuss the importance of trade entry on Disney earnings. With CPI data coming in lower than expected Errol and Dr. Jim navigate the markets volatility. Dr. Jim reminds Errol that making no adjustments is always an option.
Anton discusses potential trade ideas in bonds (ZB and ZN), one for neutral bias and one for a bullish bias and explains their differences on today's episode.
Anton discusses potential trade ideas in bonds (ZB and ZN), one for neutral bias and one for a bullish bias and explains their differences on today's episode.
The market tends to react to fed announcements and inflation data these days, and CPI data came in low this morning with a market spike shortly after - with implied volatility at the lows of the year, are we in for a market rally through 2022?
Tune in for a discussion on this topic, with earnings trades in DIS and BROS as well!
The market tends to react to fed announcements and inflation data these days, and CPI data came in low this morning with a market spike shortly after - with implied volatility at the lows of the year, are we in for a market rally through 2022?
Tune in for a discussion on this topic, with earnings trades in DIS and BROS as well!
It's What's Your Assumption Wednesday & Liz and Jenny come up with 10 different trade ideas. They place a jade lizard in Google and the gold miners. They buy a downside calendar in Pfizer. They also go over the "free long" strategy in AMD.
It's What's Your Assumption Wednesday & Liz and Jenny come up with 10 different trade ideas. They place a jade lizard in Google and the gold miners. They buy a downside calendar in Pfizer. They also go over the "free long" strategy in AMD.
Liz and Jenny take live tweets on trade ideas. They take off the earnings trades that they placed yesterday and re-deploy the capital into new trades for tonight. They closed COIN and RBLX, and placed a trade in GTC from WYNN. They also placed a new short put for earnings in DIS.
Liz and Jenny take live tweets on trade ideas. They take off the earnings trades that they placed yesterday and re-deploy the capital into new trades for tonight. They closed COIN and RBLX, and placed a trade in GTC from WYNN. They also placed a new short put for earnings in DIS.
Top Dogs is back, refreshed to reflect new research and market dynamics. To start the series, Tom and Tony will take a look at how to construct a $100,000 portfolio, using just ETFs and futures. The first step is establishing a core portfolio, which can be done by balancing out directional bias and using a similar amount of capital across underlying's. Selecting products across different asset classes allows for true portfolio diversification, which is further improved by diversifying strategies.As traders look to create their own portfolio, it is important to keep in mind product indifference, meaning that they can choose any product and expect similar performance for the same strategy.Join Tom and Tony as they look at expectations for this sample portfolio, and the impact that changes in the market price and volatility have on this portfolio!
Top Dogs is back, refreshed to reflect new research and market dynamics. To start the series, Tom and Tony will take a look at how to construct a $100,000 portfolio, using just ETFs and futures. The first step is establishing a core portfolio, which can be done by balancing out directional bias and using a similar amount of capital across underlying's. Selecting products across different asset classes allows for true portfolio diversification, which is further improved by diversifying strategies.As traders look to create their own portfolio, it is important to keep in mind product indifference, meaning that they can choose any product and expect similar performance for the same strategy.Join Tom and Tony as they look at expectations for this sample portfolio, and the impact that changes in the market price and volatility have on this portfolio!
BPR (Buying Power Reduction/Margin Requirement) is a critical concept in portfolio management. It tells us how much capital the current positions are tied to and how much capital is left to trade. For naked short strategies, it constantly changes. Join Tom and Tony as they discuss how much the BPR can fluctuate and impact a portfolio in market selloffs.
BPR (Buying Power Reduction/Margin Requirement) is a critical concept in portfolio management. It tells us how much capital the current positions are tied to and how much capital is left to trade. For naked short strategies, it constantly changes. Join Tom and Tony as they discuss how much the BPR can fluctuate and impact a portfolio in market selloffs.
Another day, another warning: MU expects softer sales growth. Signs of cooling? U.S. home supply grows at record pace. 70% chance of 75 bps hike at Sept 21 FOMC meeting.
Leftovers - What are you saving for these days?
Another day, another warning: MU expects softer sales growth. Signs of cooling? U.S. home supply grows at record pace. 70% chance of 75 bps hike at Sept 21 FOMC meeting.
Leftovers - What are you saving for these days?
Find out how the current world's largest group travel company was founded when a global pandemic suspended all travel. The data-driven group attributes their growth, 100% year-after-year to the use of Artificial Intelligence which enabled them to find not only everyday travelers and companies, but the hard-to-find ones too. Founder & CEO, Tim Hentschel, chats with Dylan Ratigan about how the company is moving into the future taking in consideration the world's current market environment.
Find out how the current world's largest group travel company was founded when a global pandemic suspended all travel. The data-driven group attributes their growth, 100% year-after-year to the use of Artificial Intelligence which enabled them to find not only everyday travelers and companies, but the hard-to-find ones too. Founder & CEO, Tim Hentschel, chats with Dylan Ratigan about how the company is moving into the future taking in consideration the world's current market environment.
While we mostly focus on the relationship between Probability of Profit (POP) and credit collected as premium sellers, there also exists an important relationship between POP and debit paid. Essentially, as the POP on a long premium position increases, the debit paid also increases, which reinforces the universal principle that higher probabilities always come with a cost.
While we mostly focus on the relationship between Probability of Profit (POP) and credit collected as premium sellers, there also exists an important relationship between POP and debit paid. Essentially, as the POP on a long premium position increases, the debit paid also increases, which reinforces the universal principle that higher probabilities always come with a cost.
IV Adj Notional differs from IV in that IV alone does not take into account the underlying’s risk relative to your portfolio. IV Adj Notional differs from notional in that notional alone does not take into account the underlying’s daily expectation of price change. How can we use the topic to help us gauge and compare risk between positions? Anton walks through this in today's segment.
IV Adj Notional differs from IV in that IV alone does not take into account the underlying’s risk relative to your portfolio. IV Adj Notional differs from notional in that notional alone does not take into account the underlying’s daily expectation of price change. How can we use the topic to help us gauge and compare risk between positions? Anton walks through this in today's segment.
The tastytrade crew reviews the new top stocks to watch in August article featuring BBY, DIS, PTON and KSS.
They also check out earnings trades in COIN, RBLX, U and more!
Tune in for a live Q&A session as well!
The tastytrade crew reviews the new top stocks to watch in August article featuring BBY, DIS, PTON and KSS.
They also check out earnings trades in COIN, RBLX, U and more!
Tune in for a live Q&A session as well!
July jobs report shows opposite of a recession. NVDA issues not-so-good Q2 pre-announcement. Meme(s) on the move again; BBBY, AMC, BB. Climate bill lifts solar names; FSLR, RUN, SOL.Leftovers - My how times have changed For 25-34 year olds.
July jobs report shows opposite of a recession. NVDA issues not-so-good Q2 pre-announcement. Meme(s) on the move again; BBBY, AMC, BB. Climate bill lifts solar names; FSLR, RUN, SOL.Leftovers - My how times have changed For 25-34 year olds.
Regardless of our own directional bias in the market, we’re all looking to strategically diversify our portfolios. As a result, this means that even when market direction goes our way, we will have some losing positions that must be defended.With a net bullish portfolio, however, any bearish strategies that haven’t worked can actually serve as a hedge against our core portfolio as expiration approaches.
Regardless of our own directional bias in the market, we’re all looking to strategically diversify our portfolios. As a result, this means that even when market direction goes our way, we will have some losing positions that must be defended.With a net bullish portfolio, however, any bearish strategies that haven’t worked can actually serve as a hedge against our core portfolio as expiration approaches.
MEME stocks have atypical characteristics when compared to normal equities - when their stock prices jump, implied volatility tends to expand as well - this is the exact opposite of what we expect from products like AAPL.
Tune in to learn more about these stocks, and how options trading strategies can differ from normal equity trading. Live Q&A as well!
MEME stocks have atypical characteristics when compared to normal equities - when their stock prices jump, implied volatility tends to expand as well - this is the exact opposite of what we expect from products like AAPL.
Tune in to learn more about these stocks, and how options trading strategies can differ from normal equity trading. Live Q&A as well!
Liz and Jenny take live tweets on earnings trade ideas and discuss naked calls vs. short strangles. They trade a super bull with Mikey in NVDA and a short put in UPST. They also move their ZEBRA trades out in time to extend duration.
Want to know more about the ZEBRA (Zero Extrinsic Back RAtio)? Check out the Liz and Jenny Strategy Series:
Liz and Jenny take live tweets on earnings trade ideas and discuss naked calls vs. short strangles. They trade a super bull with Mikey in NVDA and a short put in UPST. They also move their ZEBRA trades out in time to extend duration.
Want to know more about the ZEBRA (Zero Extrinsic Back RAtio)? Check out the Liz and Jenny Strategy Series:
Throughout numerous studies, we’ve found that having a mental stop loss right around -200% of initial credit provided a good balance of risk and return. If we set our mental stops too low, we may close out of potentially winning trades, and if the stops are too high, we may suffer from too large of losers. With that said, what are the chances of a trade making a turnaround after reaching -200% of initial credit? Join Tom and Tony to find out!
Throughout numerous studies, we’ve found that having a mental stop loss right around -200% of initial credit provided a good balance of risk and return. If we set our mental stops too low, we may close out of potentially winning trades, and if the stops are too high, we may suffer from too large of losers. With that said, what are the chances of a trade making a turnaround after reaching -200% of initial credit? Join Tom and Tony to find out!
One of the important parts of trade entry is break-even point analysis. Interestingly, however, traditional break-even point analysis focuses on the trade’s break-even point at expiration. As traders looking to manage and adjust their positions prior to expiration, a more meaningful metric for us would be the break-even point prior to expiration.Today, we learn that early break-even points and expiration break-even points are not the same, and they differ in some important and predictable ways.Did you catch our recently on how to determine delta/theta levels for your portfolio?
One of the important parts of trade entry is break-even point analysis. Interestingly, however, traditional break-even point analysis focuses on the trade’s break-even point at expiration. As traders looking to manage and adjust their positions prior to expiration, a more meaningful metric for us would be the break-even point prior to expiration.Today, we learn that early break-even points and expiration break-even points are not the same, and they differ in some important and predictable ways.Did you catch our recently on how to determine delta/theta levels for your portfolio?
Get ready for this week's Research Corner! Anton joins Tom and Tony with research-driven statistics.
Get ready for this week's Research Corner! Anton joins Tom and Tony with research-driven statistics.
和股票的保证金计算不同，期权策略由于它的灵活多变保证金的计算也是各不相同。这期节目我们会针对不同类别的期权介绍他们保证金的计算方法。 更多信息: info.tastytrade.com/cn
Unlike Buying Power Reduction (Margin Requirement) calculation in the stock market, the BPR calculation for option strategies is completely different. There are multiple ways to calculate the BPR according to different strategies. In this episode, Kai explains how to figure out the BPR for various option strategies quickly.
On this episode of Engineering the Trade, Jermal Chandler and Julia Spina briefly discuss the history of consumer protections in finance and chew on what regulation may or may not do for the crypto space.
On this episode of Engineering the Trade, Jermal Chandler and Julia Spina briefly discuss the history of consumer protections in finance and chew on what regulation may or may not do for the crypto space.
As you begin to trade different positions and build your portfolio, you will naturally wonder just how many positions you should carry in your portfolio. As is the case with most things in the market, the answer is multi-faceted, and there is no one-size-fits-all solution. But thinking in terms of different account sizes and experience levels, we offer a loose reference to help you find your personal sweet spot.
As you begin to trade different positions and build your portfolio, you will naturally wonder just how many positions you should carry in your portfolio. As is the case with most things in the market, the answer is multi-faceted, and there is no one-size-fits-all solution. But thinking in terms of different account sizes and experience levels, we offer a loose reference to help you find your personal sweet spot.
Technical analysis and efficient markets are NOT mutually exclusive… we can pick trades using a chart pattern or an indicator as long as we realize that one is not better than another and the outcome of the trade is a function of risk, return and probability of profit and NOT the technical analysis.
Technical analysis and efficient markets are NOT mutually exclusive… we can pick trades using a chart pattern or an indicator as long as we realize that one is not better than another and the outcome of the trade is a function of risk, return and probability of profit and NOT the technical analysis.
The tastytrade crew answers options trading questions from the chat and they review earnings trades from the week!
The tastytrade crew answers options trading questions from the chat and they review earnings trades from the week!
Liz and Jenny finish rolling their AUG positions to SEP. They buy an ITM call in VZ to replace their short put due to Verizon's limited strikes and lack of premium. To boost theta, they decide to sell an IWM standard deviation strangle.
Liz and Jenny finish rolling their AUG positions to SEP. They buy an ITM call in VZ to replace their short put due to Verizon's limited strikes and lack of premium. To boost theta, they decide to sell an IWM standard deviation strangle.
The Research Team conducted a few backtests using different strategies in order to determine what the best and worst case scenarios are when trading options with different risk profiles. Is there a difference to be found that puts one strategy better than another? Higher risk strategies yield more potential, but often they result in much greater portfolio uncertainty.
The Research Team conducted a few backtests using different strategies in order to determine what the best and worst case scenarios are when trading options with different risk profiles. Is there a difference to be found that puts one strategy better than another? Higher risk strategies yield more potential, but often they result in much greater portfolio uncertainty.
We might already be seeing the effects of this rate hike environment. Join Tom, Tony and Jermal as they count the ways on This Week in Stocks.
We might already be seeing the effects of this rate hike environment. Join Tom, Tony and Jermal as they count the ways on This Week in Stocks.
- BOE hikes 50 bps to 1.75%; largest in 27 years.
- Crude oil trading at the lowest level in six months.
- COIN creates partnerships with BLK and META.
Leftovers - The World’s Highest Grossing Companies
- BOE hikes 50 bps to 1.75%; largest in 27 years.
- Crude oil trading at the lowest level in six months.
- COIN creates partnerships with BLK and META.
Leftovers - The World’s Highest Grossing Companies
As premium sellers who take the short side of the option contract, assignments are a cost of doing business and will happen from time to time. But when there’s an upcoming dividend on the horizon, assignments can be a more regular occurrence. Here’s what to look for to keep your assignment risk as low as possible in the face of an upcoming dividend.And since it’s a Thursday, we are LIVE on YouTube - so we take as many of your questions as we can!
As premium sellers who take the short side of the option contract, assignments are a cost of doing business and will happen from time to time. But when there’s an upcoming dividend on the horizon, assignments can be a more regular occurrence. Here’s what to look for to keep your assignment risk as low as possible in the face of an upcoming dividend.And since it’s a Thursday, we are LIVE on YouTube - so we take as many of your questions as we can!
Pete and James run through the markets and note the interesting trading week before looking at their main topic. The guys run through some metrics for gold (/GC), S&P 500 (/ES), Bonds (/ZB), and Crude Oil (/CL) to see how the daily and intraday ranges stack up in recent periods for 2022 compared to 2020 and 2021.
Pete and James run through the markets and note the interesting trading week before looking at their main topic. The guys run through some metrics for gold (/GC), S&P 500 (/ES), Bonds (/ZB), and Crude Oil (/CL) to see how the daily and intraday ranges stack up in recent periods for 2022 compared to 2020 and 2021.
The tastytrade crew gives you their options trade ideas for the day! Mike sells a put in SQ for earnings
Nick buys a put diagonal spread in COIN to fade the recent rally
Katie buys a put vertical spread in XLU
Tune in to learn more and a live Q&A as well!
The tastytrade crew gives you their options trade ideas for the day! Mike sells a put in SQ for earnings
Nick buys a put diagonal spread in COIN to fade the recent rally
Katie buys a put vertical spread in XLU
Tune in to learn more and a live Q&A as well!
Liz and Jenny have come up with their latest trade, an earnings calendar. They buy short term calendars and finance them with OTM weekly puts. They place two today in DKNG. They also place trades in CVNA, TLRY, and SQ.
Liz and Jenny have come up with their latest trade, an earnings calendar. They buy short term calendars and finance them with OTM weekly puts. They place two today in DKNG. They also place trades in CVNA, TLRY, and SQ.
Liz and Jenny dedicate the first half of the segment to taking a look at trading futures. They look at their Small Exchange 2-year and 10-year pairs trade and the Small Exchange short dollar position.
Liz and Jenny dedicate the first half of the segment to taking a look at trading futures. They look at their Small Exchange 2-year and 10-year pairs trade and the Small Exchange short dollar position.
The VIX measures the 30-day expected volatility for the S&P 500 based on the options prices.To provide more insight for options traders and market makers, the VVIX was created to measure the volatility of the VIX. The calculation for VVIX is the same as VIX, but rather than using the options for the S&P 500, VVIX is calculated via VIX options.Last week we saw VVIX hit its lowest point in over three years. What could this mean for the markets and investors?Join Tom and Tony to find out!
The VIX measures the 30-day expected volatility for the S&P 500 based on the options prices.To provide more insight for options traders and market makers, the VVIX was created to measure the volatility of the VIX. The calculation for VVIX is the same as VIX, but rather than using the options for the S&P 500, VVIX is calculated via VIX options.Last week we saw VVIX hit its lowest point in over three years. What could this mean for the markets and investors?Join Tom and Tony to find out!
Last week we covered some of the major collapses in the crypto space beginning in mid-April. While many of these events are ongoing and the future of crypto is unclear, the purpose of today’s episode is to discuss a brief history of consumer protections in finance and the current regulatory trajectory of the crypto space. Join Tom, Tony and Julia as they discuss balancing the risks of crypto with regulations. If you have requests for any topics, reach out to Julia (@FinancePhoton) or Eddie (@ERajcevic11) on Twitter! You can also submit ideas through this form: https://www.tastytrade.com/alp...
Last week we covered some of the major collapses in the crypto space beginning in mid-April. While many of these events are ongoing and the future of crypto is unclear, the purpose of today’s episode is to discuss a brief history of consumer protections in finance and the current regulatory trajectory of the crypto space. Join Tom, Tony and Julia as they discuss balancing the risks of crypto with regulations. If you have requests for any topics, reach out to Julia (@FinancePhoton) or Eddie (@ERajcevic11) on Twitter! You can also submit ideas through this form: https://www.tastytrade.com/alp...
Wrapped tokens are simply a tokenized version of one cryptocurrency on a different blockchain than it would normally be on. Wrapped tokens maintain a 1:1 relationship to their base token, which is held by a third party in exchange for the wrapped asset. Users may want to utilize wrapped assets to transfer their funds across networks, or to take advantage of the features that one network has that another may not. What are some of these features? Join Eddie and Errol to find out!
Wrapped tokens are simply a tokenized version of one cryptocurrency on a different blockchain than it would normally be on. Wrapped tokens maintain a 1:1 relationship to their base token, which is held by a third party in exchange for the wrapped asset. Users may want to utilize wrapped assets to transfer their funds across networks, or to take advantage of the features that one network has that another may not. What are some of these features? Join Eddie and Errol to find out!
At what point do the ends justify the means? We all like to believe we’re guided by a moral compass. To be fair, most people are. However, when it comes to financial matters, we’re willing to bend a bit if our financial future will benefit. Tune in to this week’s episode where Dylan and Tom discuss the dilemma faced when morals and finance don’t align. You don’t want to miss this episode!
At what point do the ends justify the means? We all like to believe we’re guided by a moral compass. To be fair, most people are. However, when it comes to financial matters, we’re willing to bend a bit if our financial future will benefit. Tune in to this week’s episode where Dylan and Tom discuss the dilemma faced when morals and finance don’t align. You don’t want to miss this episode!
Since June 2022, volatility of assets and market prices have changed quite significantly. This has resulted in lower fear across all assets combined with higher prices. But how have forward curves changed since June? Have they stayed the same? Join Anton as he walks through what affects forward curves compared to the price volatility that we have seen across assets.
Since June 2022, volatility of assets and market prices have changed quite significantly. This has resulted in lower fear across all assets combined with higher prices. But how have forward curves changed since June? Have they stayed the same? Join Anton as he walks through what affects forward curves compared to the price volatility that we have seen across assets.
Calendar spreads are generally viewed as low IV environment trades because short premium trades are less appealing.
These can be nice trades for earnings announcements though, especially if the short option is placed in the weekly cycle and the long option is placed in a longer-term cycle.
Tune in to learn more with a live Q&A as well!
Calendar spreads are generally viewed as low IV environment trades because short premium trades are less appealing.
These can be nice trades for earnings announcements though, especially if the short option is placed in the weekly cycle and the long option is placed in a longer-term cycle.
Tune in to learn more with a live Q&A as well!
Liz and Jenny put their own spin on this segment. They take a look at 10 viewer assumptions and place high probability trades with capital in mind.
Liz and Jenny put their own spin on this segment. They take a look at 10 viewer assumptions and place high probability trades with capital in mind.
Liz and Jenny make adjustments to their positions after another up day. They discuss their HOOD and SOFI positions and look for a bearish trade in PYPL. They do some account clean-up and close GM, UBER, and UAL.
Liz and Jenny make adjustments to their positions after another up day. They discuss their HOOD and SOFI positions and look for a bearish trade in PYPL. They do some account clean-up and close GM, UBER, and UAL.
Clive W.J. Granger won the 2003 Nobel Prize in Economics for his work developing the concept of cointegration. This revolutionized pairs trades by providing a better basis for setting up pairs than correlation based methods. Today, Jacob joins Tom and Tony to explain what cointegration is and see how mechanical option traders already had everything the pairs traders gained.
Clive W.J. Granger won the 2003 Nobel Prize in Economics for his work developing the concept of cointegration. This revolutionized pairs trades by providing a better basis for setting up pairs than correlation based methods. Today, Jacob joins Tom and Tony to explain what cointegration is and see how mechanical option traders already had everything the pairs traders gained.
VIX is trading around 23%, lower than its average since the beginning of the pandemic. Is it a good idea to buy the volatility while we are experiencing extreme levels of negative market sentiment? Find out in today's segment as Tom and Tony discuss whether it is a good idea to get long volatility now.
VIX is trading around 23%, lower than its average since the beginning of the pandemic. Is it a good idea to buy the volatility while we are experiencing extreme levels of negative market sentiment? Find out in today's segment as Tom and Tony discuss whether it is a good idea to get long volatility now.
Oftentimes, we’ll put on earnings trades in the longer expiration cycles - right around our typical entry point of 45 DTE. This gives us the benefit of the inevitable volatility crush from earnings, while also maintaining some muted exposure to the Greeks over the life of the trade. Furthermore, if we get the move we’re looking for from the earnings number, we always have the option to close a winner early, too.
Oftentimes, we’ll put on earnings trades in the longer expiration cycles - right around our typical entry point of 45 DTE. This gives us the benefit of the inevitable volatility crush from earnings, while also maintaining some muted exposure to the Greeks over the life of the trade. Furthermore, if we get the move we’re looking for from the earnings number, we always have the option to close a winner early, too.
When it comes to LEAP options trading, we typically stick with OTM leaps, deep ITM leaps, and ZEBRA synthetic stock positions.
Today the tastytrade crew explains the tradeoffs for each of these variations, and they give some examples of P/L differences for all three in QQQ and AMD.
They also place AMD trades for earnings as well!
When it comes to LEAP options trading, we typically stick with OTM leaps, deep ITM leaps, and ZEBRA synthetic stock positions.
Today the tastytrade crew explains the tradeoffs for each of these variations, and they give some examples of P/L differences for all three in QQQ and AMD.
They also place AMD trades for earnings as well!
Liz and Jenny ratchet their PINS position. They create a covered call and compare the buying power to a short put. They use their latest earnings strategy in SBUX, which is selling an OTM put to pay for a calendar.
Liz and Jenny ratchet their PINS position. They create a covered call and compare the buying power to a short put. They use their latest earnings strategy in SBUX, which is selling an OTM put to pay for a calendar.
Anton joins Liz and Jenny and brings in a study about what % of the stocks in the index are either up out down given a move in the underlying. The end result is that on big up OR down moves most of the stocks become correlated.
Anton joins Liz and Jenny and brings in a study about what % of the stocks in the index are either up out down given a move in the underlying. The end result is that on big up OR down moves most of the stocks become correlated.
When the market goes up a certain percent on any given day, how many stocks follow the market’s direction? If the market makes a strong move, up or down, how many more stocks follow suit compared to when the market is up or down a little bit? We discuss all those topics and more on today’s Market Measure!
When the market goes up a certain percent on any given day, how many stocks follow the market’s direction? If the market makes a strong move, up or down, how many more stocks follow suit compared to when the market is up or down a little bit? We discuss all those topics and more on today’s Market Measure!
Option traders have a wide range of possible trades to express their assumptions on the market. If you think that the price of XYZ is going to be stable, how do you decide between selling a strangle or an iron condor? Today, Tom and Tony explore the data to see how these two delta neutral strategies compare when held up side by side.
Option traders have a wide range of possible trades to express their assumptions on the market. If you think that the price of XYZ is going to be stable, how do you decide between selling a strangle or an iron condor? Today, Tom and Tony explore the data to see how these two delta neutral strategies compare when held up side by side.
Victor joins Tom and Tony to discuss meme stocks, the NBER, or rather, the National Bureau of Economic Research, which defines a recession as "a significant decline in economic activity that lasts for several months." Are we truly headed for a recession? Is Tom the emperor of meme stocks, or is there something no one has realized yet? Do so-called inexperienced traders know something we don't? Victor really wants to know. Victor feels these are not legit stocks you can trade, and for once, Tom agrees. In his mind, stocks that don't exist equal meme stocks. What qualifies as a meme stock? Does one tenth of a share equal anything of substantial value because someone on Reddit said so? On today's segment of Hear Me Out, Tilray Inc. (TLRY), the Canadian distributor of medicinal and recreational cannabis, and its public offering of 15 million shares are all discussed.
Victor joins Tom and Tony to discuss meme stocks, the NBER, or rather, the National Bureau of Economic Research, which defines a recession as "a significant decline in economic activity that lasts for several months." Are we truly headed for a recession? Is Tom the emperor of meme stocks, or is there something no one has realized yet? Do so-called inexperienced traders know something we don't? Victor really wants to know. Victor feels these are not legit stocks you can trade, and for once, Tom agrees. In his mind, stocks that don't exist equal meme stocks. What qualifies as a meme stock? Does one tenth of a share equal anything of substantial value because someone on Reddit said so? On today's segment of Hear Me Out, Tilray Inc. (TLRY), the Canadian distributor of medicinal and recreational cannabis, and its public offering of 15 million shares are all discussed.
Unfortunately, there are no liquid options on cryptos, whether it be in the futures markets or the spot market on exchanges. Even with the implementation of options on the micro futures, the liquidity is not good enough for us to trade those products regularly. Instead, we need to look at a handful of stocks and ETFs to get exposure to the crypto market through the use of options. Since these underlying's don't have perfect 1:1 exposure to cryptos, how can we determine our contract allocation relative to Bitcoin?Join Eddie and Anton to find out!
Unfortunately, there are no liquid options on cryptos, whether it be in the futures markets or the spot market on exchanges. Even with the implementation of options on the micro futures, the liquidity is not good enough for us to trade those products regularly. Instead, we need to look at a handful of stocks and ETFs to get exposure to the crypto market through the use of options. Since these underlying's don't have perfect 1:1 exposure to cryptos, how can we determine our contract allocation relative to Bitcoin?Join Eddie and Anton to find out!
Traditional break-even point analysis shows you where you would break even on a trade at expiration. But prior to expiration, option prices include both intrinsic value and extrinsic value, so the break-even analysis needs to be approached differently. In fact, as premium sellers wanting option prices to be low, the added extrinsic value before expiration day always means early break-evens will be worse than expiration break-evens.
Traditional break-even point analysis shows you where you would break even on a trade at expiration. But prior to expiration, option prices include both intrinsic value and extrinsic value, so the break-even analysis needs to be approached differently. In fact, as premium sellers wanting option prices to be low, the added extrinsic value before expiration day always means early break-evens will be worse than expiration break-evens.
AMD, UBER and CAT have earnings to start the week, and the tastytrade crew gives you a preview of each stock's implied volatility crush potential.
Mike places a bearish trade in UBER, and a bullish trade in CAT.
Tune in to learn more with a live Q&A as well!
AMD, UBER and CAT have earnings to start the week, and the tastytrade crew gives you a preview of each stock's implied volatility crush potential.
Mike places a bearish trade in UBER, and a bullish trade in CAT.
Tune in to learn more with a live Q&A as well!
Liz and Jenny take a look at 10 trade ideas in GOOGL. They land on a short put in the September cycle. They break down what to look for in a durational calendar.
Liz and Jenny take a look at 10 trade ideas in GOOGL. They land on a short put in the September cycle. They break down what to look for in a durational calendar.
Liz and Jenny have a long zebra in PINS. They decide to sell a short term strangle around it to take advantage of the increased implied volatility. They look at various ideas in UBER, and decide to sell an OTM weekly put to pay for an upside calendar.
Liz and Jenny have a long zebra in PINS. They decide to sell a short term strangle around it to take advantage of the increased implied volatility. They look at various ideas in UBER, and decide to sell an OTM weekly put to pay for an upside calendar.
At tasty, we stress the importance of trading small and trading often, and have developed mechanics to support both of these principles. The reason we talk about trading often is that as we increase occurrences, we increase the chance that the probabilities will work out as we expect.Since weekly, and even daily, contracts are becoming more available and liquid, why not place shorter DTE trades to increase our total number of occurrences? How can decreasing our duration impact our win rates and long-term performance?Join Tom and Tony to find out!
At tasty, we stress the importance of trading small and trading often, and have developed mechanics to support both of these principles. The reason we talk about trading often is that as we increase occurrences, we increase the chance that the probabilities will work out as we expect.Since weekly, and even daily, contracts are becoming more available and liquid, why not place shorter DTE trades to increase our total number of occurrences? How can decreasing our duration impact our win rates and long-term performance?Join Tom and Tony to find out!
At tasytrade, we primarily trade two things: liquidity and uncertainty. As the pioneers of Information Theory discovered back in the 1940's, the degree to which the informational content of an event is valuable is effectively determined by how surprising the information might be.Whether the surprise is more of a “known” surprise or “unknown” surprise, by our continued focus on selling volatility into uncertainty, we’re positioned to take advantage of the market’s ability to quickly find equilibrium after any surprises.Did you catch our recently on how to determine Delta/Theta levels for your portfolio?
At tasytrade, we primarily trade two things: liquidity and uncertainty. As the pioneers of Information Theory discovered back in the 1940's, the degree to which the informational content of an event is valuable is effectively determined by how surprising the information might be.Whether the surprise is more of a “known” surprise or “unknown” surprise, by our continued focus on selling volatility into uncertainty, we’re positioned to take advantage of the market’s ability to quickly find equilibrium after any surprises.Did you catch our recently on how to determine Delta/Theta levels for your portfolio?
With exactly 21 DTE to go in the August cycle today, we look to manage all the positions in our portfolio that need to be managed. The reason why managing at 21 DTE is so important is that it allows us to avoid any of the gamma risk that comes with holding positions very close to expiration. Furthermore, this is more relevant for our undefined-risk strategies, as gamma risk is a much bigger issue for undefined-risk positions, as opposed to defined-risk positions.
With exactly 21 DTE to go in the August cycle today, we look to manage all the positions in our portfolio that need to be managed. The reason why managing at 21 DTE is so important is that it allows us to avoid any of the gamma risk that comes with holding positions very close to expiration. Furthermore, this is more relevant for our undefined-risk strategies, as gamma risk is a much bigger issue for undefined-risk positions, as opposed to defined-risk positions.
保证金这在交易中是至关重要但却又被大多数交易者所忽略的一个概念。保证金直接关系到仓位风险，资金分配管理和预期回报率的计算。这期节目中曾凯会和大家解释保证金的作用以及交易双方的利害关系。 更多信息: info.tastytrade.com/cn
Margin Requirement or Buying Power Reduction, aka BPR, is a crucial concept to master options trading. It directly relates to a trading account’s risk level, capital allocation, and expected ROC. In this episode, Kai explains why and how BPR plays an essential role in trading parties' relationships.
Implied volatility has remained high across different markets since the beginning of this year. This has resulted in higher than average options premium market-wide. However, contrary to popular belief, the amount of actual volatility that the markets have been experiencing has been much lower than the premium that options have been pricing in… this has resulted in profitable short premium trades despite the downward trajectory of the market.
Implied volatility has remained high across different markets since the beginning of this year. This has resulted in higher than average options premium market-wide. However, contrary to popular belief, the amount of actual volatility that the markets have been experiencing has been much lower than the premium that options have been pricing in… this has resulted in profitable short premium trades despite the downward trajectory of the market.
Nick and Mikey take a look at earnings this week, check out some of the trades they put on are doing and answer viewer questions. Tune in.
Nick and Mikey take a look at earnings this week, check out some of the trades they put on are doing and answer viewer questions. Tune in.
Dr. Jim joins Liz as they discuss earnings trades and how to manage the account on a Friday. They also talk about how to add short delta in an account using calendars and delta busters.
Dr. Jim joins Liz as they discuss earnings trades and how to manage the account on a Friday. They also talk about how to add short delta in an account using calendars and delta busters.
Dr. Jim and Liz take live tweets and address how rolling trades will smooth out or water down your delta. They also discuss what duration to use for a directional bias.
Dr. Jim and Liz take live tweets and address how rolling trades will smooth out or water down your delta. They also discuss what duration to use for a directional bias.
To an investor new to selling options, the intricacies of returns can be daunting. A question we get all the time from viewers is “what returns can we expect from selling options?” Join Nicky, Mike and Quentin as they discuss expected returns on short premium options strategies.
To an investor new to selling options, the intricacies of returns can be daunting. A question we get all the time from viewers is “what returns can we expect from selling options?” Join Nicky, Mike and Quentin as they discuss expected returns on short premium options strategies.
Despite not-so-great economic news earnings stocks have surged over the past two weeks. Join Nicky, Mikey and Jermal as they cover everything that’s happened on This Week in Stocks.
Despite not-so-great economic news earnings stocks have surged over the past two weeks. Join Nicky, Mikey and Jermal as they cover everything that’s happened on This Week in Stocks.
Since the start of 2022, we've seen high volatility across all markets, and crypto has been no exception. Whether it was the crypto company collapses in May and June, or macroeconomic factors, volatility in the crypto market shot to the highest level in over a year. In July, volatility has contracted a bit, but does this tell us anything? Does contracting volatility for cryptos provide any insight into future volatility and price changes?Join Eddie and Quentin to find out!
Since the start of 2022, we've seen high volatility across all markets, and crypto has been no exception. Whether it was the crypto company collapses in May and June, or macroeconomic factors, volatility in the crypto market shot to the highest level in over a year. In July, volatility has contracted a bit, but does this tell us anything? Does contracting volatility for cryptos provide any insight into future volatility and price changes?Join Eddie and Quentin to find out!
Stocks, bonds, gold and crypto fly after FED hike. Q2 GDP contracts for second consecutive quarter. META reports its first-ever quarterly sales decline.Leftovers: Most popular online payment methods.
Stocks, bonds, gold and crypto fly after FED hike. Q2 GDP contracts for second consecutive quarter. META reports its first-ever quarterly sales decline.Leftovers: Most popular online payment methods.
Today the tastytrade crew offers up two trade ideas in AAPL and SMH, and they preview AMZN & AAPL earnings and the implied volatility landscape in those products as well. Mike and Nick are both bullish so they place call diagonal spreads in AMZN & AAPL with long options in the SEP cycle and short options in the weekly 1dte cycle.
Tune in to learn more and a live Q&A as well!
Today the tastytrade crew offers up two trade ideas in AAPL and SMH, and they preview AMZN & AAPL earnings and the implied volatility landscape in those products as well. Mike and Nick are both bullish so they place call diagonal spreads in AMZN & AAPL with long options in the SEP cycle and short options in the weekly 1dte cycle.
Tune in to learn more and a live Q&A as well!
Anton and Liz look at today’s earnings and place trades in AMZN, X, and AAPL. They also take live tweets and discuss how right or wrong they typically are with their assumptions.
Anton and Liz look at today’s earnings and place trades in AMZN, X, and AAPL. They also take live tweets and discuss how right or wrong they typically are with their assumptions.
Anton joins Liz and explains how the St. Petersburg Paradox directly relates to trading. Statistics are just the starting point for trading.
Anton joins Liz and explains how the St. Petersburg Paradox directly relates to trading. Statistics are just the starting point for trading.
Throughout recent market history there have always been symbols that will sometimes have an implied volatility of over 100. Theoretically, this means that the underlying has a 50% chance to double and a 50% chance to go to zero. When this happens, what does the option skew look like in these underlyings? Join Tom and Tony as they discuss how implied volatility over 100 affects options skew.
Throughout recent market history there have always been symbols that will sometimes have an implied volatility of over 100. Theoretically, this means that the underlying has a 50% chance to double and a 50% chance to go to zero. When this happens, what does the option skew look like in these underlyings? Join Tom and Tony as they discuss how implied volatility over 100 affects options skew.
Since April, the prices of major cryptocurrencies have halved and the market as a whole has devalued by roughly $1T. Some events that accelerated this crash were covered in previous episodes (see “The Risk of Centralization”) and in Crypto Concepts. The goal of today’s AlphaBytes is to discuss the major recent events in the crypto space in detail. Join Tom, Tony and Julia in this episode of AlphaBytes! If you have requests for any topics, reach out to Julia (@FinancePhoton) or Eddie (@ERajcevic11) on Twitter! You can also submit ideas through this form: https://www.tastytrade.com/alp
Since April, the prices of major cryptocurrencies have halved and the market as a whole has devalued by roughly $1T. Some events that accelerated this crash were covered in previous episodes (see “The Risk of Centralization”) and in Crypto Concepts. The goal of today’s AlphaBytes is to discuss the major recent events in the crypto space in detail. Join Tom, Tony and Julia in this episode of AlphaBytes! If you have requests for any topics, reach out to Julia (@FinancePhoton) or Eddie (@ERajcevic11) on Twitter! You can also submit ideas through this form: https://www.tastytrade.com/alp
Dylan makes his case for broken financial systems and the inevitability of people with bad credit allowing loans to go into default creating a domino effect on every other market and how the Fed's solution was to ignore the real problem (a distorted and broken lending system) and just print more money. As a result, we have had an excess of free money for 10 years. Was this ideology ever truly sustainable?
Tom disagrees that money finances people when it comes to business development and creativity. It fuels innovation. He believes an efficient marketplace has built a system that finances all those things that are often undervalued. When you have unlimited capital pull that ultimately finances good ideas that everyone benefits from. They eventually landed on a broken corporate tax code. Elon Musk built an electric car that solved the problem of high fuel prices and in turn helped reduced the burning of fossil fuels and pollution. However, Musk’s company benefited from having paid $0 federal corporate income tax on billions of dollars of profit, is that simply an unfortunate oversight because that additional money allowed him to innovate? See what they decide on today’s episode.
Dylan makes his case for broken financial systems and the inevitability of people with bad credit allowing loans to go into default creating a domino effect on every other market and how the Fed's solution was to ignore the real problem (a distorted and broken lending system) and just print more money. As a result, we have had an excess of free money for 10 years. Was this ideology ever truly sustainable?
Tom disagrees that money finances people when it comes to business development and creativity. It fuels innovation. He believes an efficient marketplace has built a system that finances all those things that are often undervalued. When you have unlimited capital pull that ultimately finances good ideas that everyone benefits from. They eventually landed on a broken corporate tax code. Elon Musk built an electric car that solved the problem of high fuel prices and in turn helped reduced the burning of fossil fuels and pollution. However, Musk’s company benefited from having paid $0 federal corporate income tax on billions of dollars of profit, is that simply an unfortunate oversight because that additional money allowed him to innovate? See what they decide on today’s episode.
META and ETSY report earnings after the close today, and they both have very high IV% weekly structures relative to the back-month cycles.
The tastytrade crew explores double calendar spreads in both of these products, and they review the IV crush in GOOGL and MSFT to show how leap cycles barely contract, whereas near-term cycles contract a lot more.
Tune in to learn more with a live Q&A session as well!
META and ETSY report earnings after the close today, and they both have very high IV% weekly structures relative to the back-month cycles.
The tastytrade crew explores double calendar spreads in both of these products, and they review the IV crush in GOOGL and MSFT to show how leap cycles barely contract, whereas near-term cycles contract a lot more.
Tune in to learn more with a live Q&A session as well!
TP and Liz look at today's earnings. They discuss the FOMC and how the markets could move after the announcement. They pinky swear to trade a META put at 2pm. TP Also discusses the importance of the P50 number on the platform.
TP and Liz look at today's earnings. They discuss the FOMC and how the markets could move after the announcement. They pinky swear to trade a META put at 2pm. TP Also discusses the importance of the P50 number on the platform.
TP joins Liz as they discuss the current market and how TP feels about hedging. TP also talks about how he gets a ROC number for theta when entering into a trade.
TP joins Liz as they discuss the current market and how TP feels about hedging. TP also talks about how he gets a ROC number for theta when entering into a trade.
Options traders know that when prices drop, volatility spikes, but correlation is not causation. Unfortunately, even with all our data, correlations are often all we have to work with. Today, Jacob joins Tom and Tony to explore some of the mechanisms connecting price to volatility and try to see what we can conclude and what we can't.
Options traders know that when prices drop, volatility spikes, but correlation is not causation. Unfortunately, even with all our data, correlations are often all we have to work with. Today, Jacob joins Tom and Tony to explore some of the mechanisms connecting price to volatility and try to see what we can conclude and what we can't.
The VIX has been moving in a wide range since the end of last year, much higher than the historical average. This makes the premium-selling strategies extremely attractive especially strangles and straddles due to their rich premium and fast theta decay. So which one to choose? Join Tom and Tony as they discuss the pros and cons of these two great strategies.
The VIX has been moving in a wide range since the end of last year, much higher than the historical average. This makes the premium-selling strategies extremely attractive especially strangles and straddles due to their rich premium and fast theta decay. So which one to choose? Join Tom and Tony as they discuss the pros and cons of these two great strategies.
Ahead of Ethereum's upcoming move to proof-of-stake, Eddie and Ryan discuss how the upgrade could impact the price of ETH, the misconceptions associated with the merge, and the risks crypto investors should be aware of around this event.
Ahead of Ethereum's upcoming move to proof-of-stake, Eddie and Ryan discuss how the upgrade could impact the price of ETH, the misconceptions associated with the merge, and the risks crypto investors should be aware of around this event.
WMT rings alarm bells for the second time in two months. Consumers still buying Coca-Cola's (KO) and fries (MCD). COIN in the crosshairs of the SEC.
Leftovers - Expensive car payments on the rise.
WMT rings alarm bells for the second time in two months. Consumers still buying Coca-Cola's (KO) and fries (MCD). COIN in the crosshairs of the SEC.
Leftovers - Expensive car payments on the rise.
Defined-Risk strategies are an important part of any well-balanced portfolio. But an often overlooked aspect of defining your risk on these strategies is the simple fact that the presence of a long leg slows down the time decay on the position, and thus it will take you longer to reach whatever profit target you might have for that trade.
Defined-Risk strategies are an important part of any well-balanced portfolio. But an often overlooked aspect of defining your risk on these strategies is the simple fact that the presence of a long leg slows down the time decay on the position, and thus it will take you longer to reach whatever profit target you might have for that trade.
MSFT and GOOGL both report earnings after the close today, and SHOP & SPOT report before the market opens tomorrow.
Both Nick and MIke have a bullish lean in MSFT and GOOGL, and place options trades to reflect this sentiment.
Tune in for a live Q&A session as well!
MSFT and GOOGL both report earnings after the close today, and SHOP & SPOT report before the market opens tomorrow.
Both Nick and MIke have a bullish lean in MSFT and GOOGL, and place options trades to reflect this sentiment.
Tune in for a live Q&A session as well!
Anton and Liz take off UPS for a profit and place new earnings trades in GOOGL and SHOP. They then discuss the natural gas move and why you should try to trade in liquid markets.
Want to learn more about the Jade Lizard strategy? Check out this tutorial.
Anton and Liz take off UPS for a profit and place new earnings trades in GOOGL and SHOP. They then discuss the natural gas move and why you should try to trade in liquid markets.
Want to learn more about the Jade Lizard strategy? Check out this tutorial.
Anton shares a killer study on how the Monty Hall Problem a paradox of sorts directly relates to trading. He answers the question: Does new information change what you should do with a trade?
Anton shares a killer study on how the Monty Hall Problem a paradox of sorts directly relates to trading. He answers the question: Does new information change what you should do with a trade?
tastytraders often rely on the inverse relationship between price and volatility when constructing their positions. But how strong is this relationship and how strong is the evidence for it? Should we be worried that we are conflating this anticorrelation with a positive correlation between volatility and the size of the price move; moves to the downside tend to be larger after all. Today, Tom and Tony look at the data to set this question to bed and see how meme stocks might differ from typical underlyings.
tastytraders often rely on the inverse relationship between price and volatility when constructing their positions. But how strong is this relationship and how strong is the evidence for it? Should we be worried that we are conflating this anticorrelation with a positive correlation between volatility and the size of the price move; moves to the downside tend to be larger after all. Today, Tom and Tony look at the data to set this question to bed and see how meme stocks might differ from typical underlyings.
Victor wants to know how the “contrarian” traders feel about all these factors impacting the markets. Popular opinion is just that—an opinion, according to Tom. Tom feels traders that are trained in the fundamentals would look at these market fluctuations as the impetus for opportunity. Seek and you shall find. Where there is chaos, he see’s opportunity. It doesn’t matter who is announcing what. He wants the noise, the chatter, it leads to opportunity and any trader worth their salt would take advantage of it—after the fact. What happened when Tesla made their recent earnings announcement? Shares rose to 10 percent, post-earnings positivity soared, something the company has not experienced since the fourth quarter of 2019. GDP tracking, interest rate hikes, inflation, market contraction, outlier risk, bonds getting creamed, and yield curve flattening are all debated on today’s Hear Me Out.
Victor wants to know how the “contrarian” traders feel about all these factors impacting the markets. Popular opinion is just that—an opinion, according to Tom. Tom feels traders that are trained in the fundamentals would look at these market fluctuations as the impetus for opportunity. Seek and you shall find. Where there is chaos, he see’s opportunity. It doesn’t matter who is announcing what. He wants the noise, the chatter, it leads to opportunity and any trader worth their salt would take advantage of it—after the fact. What happened when Tesla made their recent earnings announcement? Shares rose to 10 percent, post-earnings positivity soared, something the company has not experienced since the fourth quarter of 2019. GDP tracking, interest rate hikes, inflation, market contraction, outlier risk, bonds getting creamed, and yield curve flattening are all debated on today’s Hear Me Out.
QQQ up 3.5%, SPY up 2.6% last week. Initial jobless claims & new home sales in focus. A look at GOOGL, MSFT, META, AAPL & AMZN earnings.Leftovers - Ford motors revving up.
QQQ up 3.5%, SPY up 2.6% last week. Initial jobless claims & new home sales in focus. A look at GOOGL, MSFT, META, AAPL & AMZN earnings.Leftovers - Ford motors revving up.
Every earnings trade comes with an implicit decision you have to make - use the weekly expiration cycles or the monthly expiration cycles? With the weekly cycles, you position yourself for a quicker payoff, but you run the risk of rolling at worse prices should the trade go against you. With the monthly cycles, the payoffs are inevitably slower, but the overall trade can be viewed very much like a regular 45 DTE trade.
Every earnings trade comes with an implicit decision you have to make - use the weekly expiration cycles or the monthly expiration cycles? With the weekly cycles, you position yourself for a quicker payoff, but you run the risk of rolling at worse prices should the trade go against you. With the monthly cycles, the payoffs are inevitably slower, but the overall trade can be viewed very much like a regular 45 DTE trade.
Pete Mulmat guides you through the world of futures trading. From soybeans and oil to bonds and beyond, Pete shares his 30 years of trading with viewers who want a piece of the futures market.
Pete Mulmat guides you through the world of futures trading. From soybeans and oil to bonds and beyond, Pete shares his 30 years of trading with viewers who want a piece of the futures market.
This week is a big week for earnings with AAPL, AMZN, GOOGL, META, and MSFT all reporting. META has the largest implied volatility crush, whereas the others have a pretty low IV% across all expirations and expected moves.
Tune in for a full breakdown with a strategic discussion from the live Q&A as well!
This week is a big week for earnings with AAPL, AMZN, GOOGL, META, and MSFT all reporting. META has the largest implied volatility crush, whereas the others have a pretty low IV% across all expirations and expected moves.
Tune in for a full breakdown with a strategic discussion from the live Q&A as well!
The trio look at IV in UPS, MCD, and GM. They trade a strangle in UPS and a jade lizard in GM for earnings.
Want to maximize your knowledge of trade strategies to take advantage of current market volatility? Check out this Liz and Jenny tutorial detailing the options strategy known as the Jade Lizard.
The trio look at IV in UPS, MCD, and GM. They trade a strangle in UPS and a jade lizard in GM for earnings.
Want to maximize your knowledge of trade strategies to take advantage of current market volatility? Check out this Liz and Jenny tutorial detailing the options strategy known as the Jade Lizard.
Jermal and Julia join Liz as they discuss this week’s economic news and earnings trades. They also take live tweets and discuss the BAD Trader Tour that is coming to NYC and LA.
Jermal and Julia join Liz as they discuss this week’s economic news and earnings trades. They also take live tweets and discuss the BAD Trader Tour that is coming to NYC and LA.
This year, we’ve seen volatility remain high across all markets, and crypto has been no exception. With the collapse of numerous crypto firms in the late spring and early summer, we saw volatility increase to the highest levels in a year.In the last few weeks, we have finally started to see volatility come in. Historically, what impact does this have on future volatility and price changes?Join Tom and Tony to find out!
This year, we’ve seen volatility remain high across all markets, and crypto has been no exception. With the collapse of numerous crypto firms in the late spring and early summer, we saw volatility increase to the highest levels in a year.In the last few weeks, we have finally started to see volatility come in. Historically, what impact does this have on future volatility and price changes?Join Tom and Tony to find out!
As tastytraders, we’re always rolling our positions and adjusting our portfolios, which is where rules like rolling at 21 DTE or rolling when strikes are tested are extremely helpful. But if the goal is to truly maximize the extrinsic value collected on the roll, then a deeper study of how extrinsic relates to moneyness is needed. And similar to how extrinsic value peaks around the ATM strike, the extrinsic value differential between cycles also peaks around the ATM strike.Did you catch our show recently on how to determine Delta/Theta levels for your portfolio?
As tastytraders, we’re always rolling our positions and adjusting our portfolios, which is where rules like rolling at 21 DTE or rolling when strikes are tested are extremely helpful. But if the goal is to truly maximize the extrinsic value collected on the roll, then a deeper study of how extrinsic relates to moneyness is needed. And similar to how extrinsic value peaks around the ATM strike, the extrinsic value differential between cycles also peaks around the ATM strike.Did you catch our show recently on how to determine Delta/Theta levels for your portfolio?
On this episode of Engineering the Trade, Jermal Chandler and Julia Spina weigh in on the recent events in the land of crypto that have spooked investors.
On this episode of Engineering the Trade, Jermal Chandler and Julia Spina weigh in on the recent events in the land of crypto that have spooked investors.
From time to time, we all have to accept losing positions. When the inevitable loser hits your portfolio, how do you decide whether to defend the position or close the trade completely? As we look at our SNAP earnings trade from last night, we analyze an important part of making this decision - the extrinsic value differential between the current cycle and the next cycle.
From time to time, we all have to accept losing positions. When the inevitable loser hits your portfolio, how do you decide whether to defend the position or close the trade completely? As we look at our SNAP earnings trade from last night, we analyze an important part of making this decision - the extrinsic value differential between the current cycle and the next cycle.
Recently there has been a lot of talk about currencies with the rise of value in the U.S. dollar. Currencies can be a great way to diversify against the stock market. Join Anton as he takes on notional risk in currency futures.
Recently there has been a lot of talk about currencies with the rise of value in the U.S. dollar. Currencies can be a great way to diversify against the stock market. Join Anton as he takes on notional risk in currency futures.
The tastytrade crew previews earnings announcements in AMZN, AAPL, GOOGL, MSFT, and META for next week!
Mike likes how the IV% is pretty low in all of these stocks, but META has a high expected move over 10% of the stock price - tune in to see how he is preparing strategically for these announcements next week!
Live Q&A as well!
The tastytrade crew previews earnings announcements in AMZN, AAPL, GOOGL, MSFT, and META for next week!
Mike likes how the IV% is pretty low in all of these stocks, but META has a high expected move over 10% of the stock price - tune in to see how he is preparing strategically for these announcements next week!
Live Q&A as well!
Hot off the press! James joins Liz as they look at this Friday's Alpha Boost. Alpha Boost is delivered via email 3 times a week with 8-10 tastytrade approved trade ideas. Today James and Liz go over trade ideas in NFLX.
Hot off the press! James joins Liz as they look at this Friday's Alpha Boost. Alpha Boost is delivered via email 3 times a week with 8-10 tastytrade approved trade ideas. Today James and Liz go over trade ideas in NFLX.
Dr. Data joins Liz and he walks her through the new changes that we recently made to lookback.
Dr. Data joins Liz and he walks her through the new changes that we recently made to lookback.
In the past year, commodities have seen volatile price action and significant moves in both directions. What have these moves looked like in the past? Join Tom and Tony as they discuss how commodities have moved over a certain threshold and reversals.
In the past year, commodities have seen volatile price action and significant moves in both directions. What have these moves looked like in the past? Join Tom and Tony as they discuss how commodities have moved over a certain threshold and reversals.
For many stocks, earnings have been far from horrific, pushed indices higher for the week. Join Tom, Tony and Jermal as they discuss this and more on This Week in Stocks.
For many stocks, earnings have been far from horrific, pushed indices higher for the week. Join Tom, Tony and Jermal as they discuss this and more on This Week in Stocks.
On this episode of Crypto Concepts, Eddie and Ryan discuss the concept of Web3, explain the role of the Brave web browser, and highlight the use cases of the Basic Attention Token.
On this episode of Crypto Concepts, Eddie and Ryan discuss the concept of Web3, explain the role of the Brave web browser, and highlight the use cases of the Basic Attention Token.
Pete and James discuss the current market environment of falling metals, slightly rebounding stocks and another surge in natural gas. They take a deep dive look at the euro now the currency has hit parity with the dollar for the first time since 2002. They explain the use case for euro futures options and help traders understand possible strategies at these levels.
Pete and James discuss the current market environment of falling metals, slightly rebounding stocks and another surge in natural gas. They take a deep dive look at the euro now the currency has hit parity with the dollar for the first time since 2002. They explain the use case for euro futures options and help traders understand possible strategies at these levels.
ECB raises 50 bps: first hike in 11 yrs; biggest since 2000. TSLA earnings firmly in the “better than feared” camp. AMZN begins delivering with RIVN electric vans.Leftovers - Honor amongst trade partners.
ECB raises 50 bps: first hike in 11 yrs; biggest since 2000. TSLA earnings firmly in the “better than feared” camp. AMZN begins delivering with RIVN electric vans.Leftovers - Honor amongst trade partners.
As premium sellers, our game is usually smaller winners in exchange for higher probabilities. But even still, there are times when we’re able to nail a specific strategy, and we have a large winner on our hands. When this happens, how should you handle it?Since this very thing has happened with our Expected Move Butterfly in TSLA, we talk through the different options at our disposal.And we are LIVE on YouTube, so we spend most of the show answering YOUR questions.
As premium sellers, our game is usually smaller winners in exchange for higher probabilities. But even still, there are times when we’re able to nail a specific strategy, and we have a large winner on our hands. When this happens, how should you handle it?Since this very thing has happened with our Expected Move Butterfly in TSLA, we talk through the different options at our disposal.And we are LIVE on YouTube, so we spend most of the show answering YOUR questions.
The tastytrade crew offers their options trade ideas for the day! Mike buys a call diagonal spread in VZ for earnings
Katie buys a micro EUR/USD futures contract
Tune in to learn more and a live Q&A as well!
The tastytrade crew offers their options trade ideas for the day! Mike buys a call diagonal spread in VZ for earnings
Katie buys a micro EUR/USD futures contract
Tune in to learn more and a live Q&A as well!
Liz and Jenny manage the account by taking profits. They also look to add theta and take live tweets on the earnings announcements for today.
Want to see more about the advantages of various lizard strategies? Check these tutorials on the Big Lizard and Jade Lizard.
Liz and Jenny manage the account by taking profits. They also look to add theta and take live tweets on the earnings announcements for today.
Want to see more about the advantages of various lizard strategies? Check these tutorials on the Big Lizard and Jade Lizard.
Liz and Jenny start with cleaning house, they close /6B but leave /6J & /ZS. They place a new iron condor in /CL. They talk about the new small exchange product, /SMES and go over the details of the new small future.
Liz and Jenny start with cleaning house, they close /6B but leave /6J & /ZS. They place a new iron condor in /CL. They talk about the new small exchange product, /SMES and go over the details of the new small future.
The choice of profit target has a significant impact on the potential risk of a position, particularly the tail risk. What exactly does that relationship look like, and is choosing a low profit target an effective risk management strategy? Join Tom and Tony as they discuss how outlier risk scales with the choice of profit target.
The choice of profit target has a significant impact on the potential risk of a position, particularly the tail risk. What exactly does that relationship look like, and is choosing a low profit target an effective risk management strategy? Join Tom and Tony as they discuss how outlier risk scales with the choice of profit target.
The Ethereum Merge has been speculated for over 5 years, and on July 14th, news finally broke that increased optimism around Ethereum and the broader crypto space. With a tentative target date for the Ethereum Merge set for September 19th, investors and traders need to understand what the Merge is and how it impacts Ethereum. What are the positives and negatives surrounding the merge? Join Tom, Tony, and Eddie as they dive into it!If you have requests for any topics, reach out to Julia (@FinancePhoton) or Eddie (@ERajcevic11) on Twitter! You can also submit ideas through this form: https://www.tastytrade.com/alpha-bytes-topics
The Ethereum Merge has been speculated for over 5 years, and on July 14th, news finally broke that increased optimism around Ethereum and the broader crypto space. With a tentative target date for the Ethereum Merge set for September 19th, investors and traders need to understand what the Merge is and how it impacts Ethereum. What are the positives and negatives surrounding the merge? Join Tom, Tony, and Eddie as they dive into it!If you have requests for any topics, reach out to Julia (@FinancePhoton) or Eddie (@ERajcevic11) on Twitter! You can also submit ideas through this form: https://www.tastytrade.com/alpha-bytes-topics
The U.S. dollar and euro are trading at parity for the first time in 20 years. What’s the driving force behind this? Is the rest of the world becoming more fearful and risk adverse? Dylan makes a case for structural issues with the US Dollar, while Tom believes it may just be cyclical in nature. Are we so overwhelmed by world events that our lack of faith in other currencies might be adding to the strength of the US dollar? Are these just extreme circumstances or is there something more to uncover here? Tom and Dylan address this issue and more on today's segment.
The U.S. dollar and euro are trading at parity for the first time in 20 years. What’s the driving force behind this? Is the rest of the world becoming more fearful and risk adverse? Dylan makes a case for structural issues with the US Dollar, while Tom believes it may just be cyclical in nature. Are we so overwhelmed by world events that our lack of faith in other currencies might be adding to the strength of the US dollar? Are these just extreme circumstances or is there something more to uncover here? Tom and Dylan address this issue and more on today's segment.
On today's show Dr. Jim joins Errol to help him put a trade on Tesla earnings. Dr. Jim warns Errol about trade entry as they look at P50 and what that means for the trade. With Defined risk strategies there's not as much flexibility so trade entry is very important.
On today's show Dr. Jim joins Errol to help him put a trade on Tesla earnings. Dr. Jim warns Errol about trade entry as they look at P50 and what that means for the trade. With Defined risk strategies there's not as much flexibility so trade entry is very important.
We have seen a lot of volatility in commodities over the last year. How has skew and outliers been impacted in those products? Join Pete and Anton as they discuss skew and outliers in different commodities.
We have seen a lot of volatility in commodities over the last year. How has skew and outliers been impacted in those products? Join Pete and Anton as they discuss skew and outliers in different commodities.
The Consumer Price Index (CPI) measures inflation by monitoring price changes to food, fuel, and more; while it's a very well-known benchmark, you cannot trade it. Futures traders Katie and Frank show you how inflation has affected interest rates and foreign exchange to help find a proxy for trading inflation. With historical data in hand, they decide that the US dollar market has the highest correlation to inflation at the moment.Find out how you can trade where inflation might be headed in the future using Small US Dollar (SFX) futures as the USD market becomes a flight to quality during inflation fear.
The Consumer Price Index (CPI) measures inflation by monitoring price changes to food, fuel, and more; while it's a very well-known benchmark, you cannot trade it. Futures traders Katie and Frank show you how inflation has affected interest rates and foreign exchange to help find a proxy for trading inflation. With historical data in hand, they decide that the US dollar market has the highest correlation to inflation at the moment.Find out how you can trade where inflation might be headed in the future using Small US Dollar (SFX) futures as the USD market becomes a flight to quality during inflation fear.
TSLA is a popular stock with generally high implied volatility, but this earnings announcement feels pretty flat to the OTC live crew.
Mike places a 3x expected move iron condor in the AUG cycle, and buys a call spread in the weekly cycle to play for a quick bullish bounce.
Katie joins the iron condor, but adjusts the strikes a bit.
Tune in to learn more with a live Q&A as well!
TSLA is a popular stock with generally high implied volatility, but this earnings announcement feels pretty flat to the OTC live crew.
Mike places a 3x expected move iron condor in the AUG cycle, and buys a call spread in the weekly cycle to play for a quick bullish bounce.
Katie joins the iron condor, but adjusts the strikes a bit.
Tune in to learn more with a live Q&A as well!
Liz and Jenny take a look at 10 viewer assumptions and look to place high probability trades keeping capital in mind.
Liz and Jenny take a look at 10 viewer assumptions and look to place high probability trades keeping capital in mind.
Liz and Jenny look for an earnings trade in the airlines. They compare AAL and UAL, and decide to go with a jade lizard in UAL. They also talk about TESLA earnings and look at Domino's Pizza.
Liz and Jenny look for an earnings trade in the airlines. They compare AAL and UAL, and decide to go with a jade lizard in UAL. They also talk about TESLA earnings and look at Domino's Pizza.
The St. Petersburg Paradox is a thought experiment from the early days of probability theory. It presents a simple game with infinite expected payout, leading mathematicians to be willing to pay any amount to play it, even though real gamblers would rarely venture more than a few dollars. Today, Jacob joins Tom and Tony to present the game, see if they can figure out how much it is really worth, and go through some of the resolutions from the past 300 years.
The St. Petersburg Paradox is a thought experiment from the early days of probability theory. It presents a simple game with infinite expected payout, leading mathematicians to be willing to pay any amount to play it, even though real gamblers would rarely venture more than a few dollars. Today, Jacob joins Tom and Tony to present the game, see if they can figure out how much it is really worth, and go through some of the resolutions from the past 300 years.
The indices have entered a so-called “bear market” since this June, down more than 24% from the peak. It is the third largest pullback since the 2008 financial crisis.
So how is the current market compared to 2008 and 2020 regarding the underlying movement and implied volatility change?
Join Tom and Tony as they discuss the current market situation by analyzing the two significant market corrections in 2008 and 2020
The indices have entered a so-called “bear market” since this June, down more than 24% from the peak. It is the third largest pullback since the 2008 financial crisis.
So how is the current market compared to 2008 and 2020 regarding the underlying movement and implied volatility change?
Join Tom and Tony as they discuss the current market situation by analyzing the two significant market corrections in 2008 and 2020
Ethereum transactions may seem complex and intimidating to new users. Instead of a number plus tax that we are used to seeing when checking out, there are multiple components to Ethereum transactions. With so much flexibility on how users can adjust their potential fees, it's important to understand what each component means.
Ethereum transactions may seem complex and intimidating to new users. Instead of a number plus tax that we are used to seeing when checking out, there are multiple components to Ethereum transactions. With so much flexibility on how users can adjust their potential fees, it's important to understand what each component means.
So far, earnings are “better than feared”. What should we expect from Netflix? Euro rises to highest level in two weeks. Leftovers - Countries with the largest oil reserves.
So far, earnings are “better than feared”. What should we expect from Netflix? Euro rises to highest level in two weeks. Leftovers - Countries with the largest oil reserves.
As OTM premium sellers, the buffer between the strike price and the stock price might be our biggest ally in working positions to profitability. The stock can essentially move anywhere inside of this buffer, and we’re still on track to be profitable, which explains why OTM short premium positions are always higher probability plays—don’t need to be right directionally (and can even be a bit wrong) and still win.
As OTM premium sellers, the buffer between the strike price and the stock price might be our biggest ally in working positions to profitability. The stock can essentially move anywhere inside of this buffer, and we’re still on track to be profitable, which explains why OTM short premium positions are always higher probability plays—don’t need to be right directionally (and can even be a bit wrong) and still win.
The Fed primarily controls interest rates, which they move higher in times of inflation and lower in times of recession. But what do they do when there's fear of both at the same time? Jermal and Frank show you how the Fed attempts to balance interest rates to avoid high inflation or a potential recession, and they talk about how this is a set up for an interesting trade.
The futures dudes conclude that buying interest rate markets could profit from higher inflation readings while selling them could profit from a recession hitting for the first time in more than a decade. Find out what side you're on and learn how to trade your opinion.
The Fed primarily controls interest rates, which they move higher in times of inflation and lower in times of recession. But what do they do when there's fear of both at the same time? Jermal and Frank show you how the Fed attempts to balance interest rates to avoid high inflation or a potential recession, and they talk about how this is a set up for an interesting trade.
The futures dudes conclude that buying interest rate markets could profit from higher inflation readings while selling them could profit from a recession hitting for the first time in more than a decade. Find out what side you're on and learn how to trade your opinion.
Tune in for a full breakdown of the NFLX earnings announcement, as well as a review of the IBM earnings announcement.
The crew explains why diagonal and calendar spreads set up in a low-cost way, and what the expectation is for NFLX earnings.
Tune in for a live Q&A as well!
Tune in for a full breakdown of the NFLX earnings announcement, as well as a review of the IBM earnings announcement.
The crew explains why diagonal and calendar spreads set up in a low-cost way, and what the expectation is for NFLX earnings.
Tune in for a live Q&A as well!
Liz and Jenny talk about the IBM move and look at managing their position. They place a Netflix earnings trade. They also discuss the recent drop in the dollar and make adjustments to UUP and /SFX.
Liz and Jenny talk about the IBM move and look at managing their position. They place a Netflix earnings trade. They also discuss the recent drop in the dollar and make adjustments to UUP and /SFX.
Anton, Liz and Jenny discuss how earnings of FAANG stocks have an effect on other FAANG stocks. This is a good discussion due to the fact that earnings are currently on deck for all of these stocks.
Anton, Liz and Jenny discuss how earnings of FAANG stocks have an effect on other FAANG stocks. This is a good discussion due to the fact that earnings are currently on deck for all of these stocks.
Earnings are a binary event that gives the stock an increased expected move and an equal probability of an up or down move. How does the move in the market impact this 50/50 shot? Join Tom and Tony as they discuss how stock correlation changes on the day of an earnings report.
Earnings are a binary event that gives the stock an increased expected move and an equal probability of an up or down move. How does the move in the market impact this 50/50 shot? Join Tom and Tony as they discuss how stock correlation changes on the day of an earnings report.
tastytrade mechanics involve managing trades early in order to free up buying power and make more trades in the same timespan. This management is typically based on the remaining duration of the trade, locking in winners, or getting out of losers. But what happens if we combine these various management techniques? Today, Tom and Tony delve into the data to see the results from a variety of different management styles.
tastytrade mechanics involve managing trades early in order to free up buying power and make more trades in the same timespan. This management is typically based on the remaining duration of the trade, locking in winners, or getting out of losers. But what happens if we combine these various management techniques? Today, Tom and Tony delve into the data to see the results from a variety of different management styles.
The virtues of Peking duck, kabobs, Turkish food and selling off bonds. Trader's always have the same position, right? Tom doesn't trust the talking heads, but he is one… technically. Victor asks, "What is a talking head then?" Private equity is currently trying to raise a trillion dollars in a down market. Not a billion, but a TRILLION. What? Blackstone has made a capital commitment to do so in that order. A lot of money is being raised in a down market for illiquid deals, which defies all logic. Is this a liquidity deal of a much bigger proportion than anyone is talking about? Public markets can only support so much liquidity. Private market liquidity versus public market liquidity. Are we in a liquidity crisis or is this just a simple margin call? Tom, Tony, and Victor discuss the risks and rewards of these positions on today's Hear Me Out.
The virtues of Peking duck, kabobs, Turkish food and selling off bonds. Trader's always have the same position, right? Tom doesn't trust the talking heads, but he is one… technically. Victor asks, "What is a talking head then?" Private equity is currently trying to raise a trillion dollars in a down market. Not a billion, but a TRILLION. What? Blackstone has made a capital commitment to do so in that order. A lot of money is being raised in a down market for illiquid deals, which defies all logic. Is this a liquidity deal of a much bigger proportion than anyone is talking about? Public markets can only support so much liquidity. Private market liquidity versus public market liquidity. Are we in a liquidity crisis or is this just a simple margin call? Tom, Tony, and Victor discuss the risks and rewards of these positions on today's Hear Me Out.
Better than expected retail sales lift market. Nat gas volatile due to Gazprom force majeure. Crypto winter market rally?Leftovers - Bankruptcies on the rise.
Better than expected retail sales lift market. Nat gas volatile due to Gazprom force majeure. Crypto winter market rally?Leftovers - Bankruptcies on the rise.
Another earnings season has come upon us, with all the heavy hitters reporting in the next couple of weeks. When it comes to a sound earnings strategy, the most important elements are position size, trade timing, and management goals. Today, we walk through how to analyze each of these components.
Another earnings season has come upon us, with all the heavy hitters reporting in the next couple of weeks. When it comes to a sound earnings strategy, the most important elements are position size, trade timing, and management goals. Today, we walk through how to analyze each of these components.
High inflation is causing some of the largest price extremes, bond and forex markets have seen in decades. Mike and Frank show you how high inflation has affected stocks, bonds, and currencies over the last few months, and then they project what could happen if inflation cools or moves higher still.Inflation primarily affects central banks and how they set interest rates, and that can indirectly affect stocks and foreign exchange markets. Get the lowdown on the recent inflation story, and learn what might happen in the future.
High inflation is causing some of the largest price extremes, bond and forex markets have seen in decades. Mike and Frank show you how high inflation has affected stocks, bonds, and currencies over the last few months, and then they project what could happen if inflation cools or moves higher still.Inflation primarily affects central banks and how they set interest rates, and that can indirectly affect stocks and foreign exchange markets. Get the lowdown on the recent inflation story, and learn what might happen in the future.
IBM has earnings after the close on the 18th, and there is a ton of implied volatility being pumped into the weekly cycle compared to the monthly cycles - Mike takes a deep dive into diagonal and calendar spreads to explain why they set up well in this environment.
Tune in to learn more with a live Q&A as well!
IBM has earnings after the close on the 18th, and there is a ton of implied volatility being pumped into the weekly cycle compared to the monthly cycles - Mike takes a deep dive into diagonal and calendar spreads to explain why they set up well in this environment.
Tune in to learn more with a live Q&A as well!
Alpha Boost is coming in hot into your inbox! Liz and Jenny review 8 trade ideas in $JPM and $MS. They land on a strangle in another financial stock $C.
Strangles vs. Jade Lizards. Check out this Liz and Jenny Jade Lizard tutorial.
Alpha Boost is coming in hot into your inbox! Liz and Jenny review 8 trade ideas in $JPM and $MS. They land on a strangle in another financial stock $C.
Strangles vs. Jade Lizards. Check out this Liz and Jenny Jade Lizard tutorial.
Fresh off the Bad Trader Tour, Liz and Jenny tell fun stories from the show and look at pictures. It's a busy earnings day, and twitter is a buzz. They place a weekly jade lizard in IBM and close CCL and X.
Fresh off the Bad Trader Tour, Liz and Jenny tell fun stories from the show and look at pictures. It's a busy earnings day, and twitter is a buzz. They place a weekly jade lizard in IBM and close CCL and X.
Recently, the market has seen volatile price action and significant drawdowns. How does this compare to other periods of market madness. Join Tom and Tony as they discuss how the intraday moves of various products in 2022 differ from the bear markets of 2020 and 2008.
Recently, the market has seen volatile price action and significant drawdowns. How does this compare to other periods of market madness. Join Tom and Tony as they discuss how the intraday moves of various products in 2022 differ from the bear markets of 2020 and 2008.
High-level math and statistics often yields surprising results that can help us as traders, as we’ve already seen with the St. Petersburg Paradox and Gambler’s Fallacy. Today, we learn about the Twins Paradox - another seemingly paradoxical result that reminds us of the relative importance of how two variables change. Case in point, as tastytraders, we’re always working hard to mitigate the likelihood that directional bias will overshadow time decay.Did you catch our recently on how to determine Delta/Theta levels for your portfolio?
High-level math and statistics often yields surprising results that can help us as traders, as we’ve already seen with the St. Petersburg Paradox and Gambler’s Fallacy. Today, we learn about the Twins Paradox - another seemingly paradoxical result that reminds us of the relative importance of how two variables change. Case in point, as tastytraders, we’re always working hard to mitigate the likelihood that directional bias will overshadow time decay.Did you catch our recently on how to determine Delta/Theta levels for your portfolio?
The utility of LookBack will be demonstrated, they will discuss some of the recent major improvements, and finally, they will cover the most commonly asked questions.
The utility of LookBack will be demonstrated, they will discuss some of the recent major improvements, and finally, they will cover the most commonly asked questions.
As OTM premium sellers, there is always a tradeoff between probability of profit and credit collected, and the expected move can help balance these two opposing forces. With the expected move tracking very closely to the one standard deviation on the Normal Distribution, our probabilities are usually in the 60-70% range, when our strikes are placed on the edges of the expected move—at least for undefined-risk strategies.
As OTM premium sellers, there is always a tradeoff between probability of profit and credit collected, and the expected move can help balance these two opposing forces. With the expected move tracking very closely to the one standard deviation on the Normal Distribution, our probabilities are usually in the 60-70% range, when our strikes are placed on the edges of the expected move—at least for undefined-risk strategies.
Many headlines in any financial newspaper or talk show says we're in recession with drastic inflation and rising energy prices. But, is there a light at the end of the tunnel? Join Pete and Anton as they discuss the other side of the bearish market outlook.
Many headlines in any financial newspaper or talk show says we're in recession with drastic inflation and rising energy prices. But, is there a light at the end of the tunnel? Join Pete and Anton as they discuss the other side of the bearish market outlook.
我们在讲到SKEW指数章节的时候留下了一个很重要的问题没有回答 - “SKEW指数对未来黑天鹅事件的预测是否准确？”。SKEW指数也是可以转换成预测黑天鹅事件的概率，那么这个概率的准确度有多少呢？这次节目曾凯就会从历史数据着手分析SKEW是否能够成为一个很好的领先性指标。We left a question unanswered when we introduced the concept of the SKEW index - “can SKEW accurately predict the tail risk?”. Since SKEW can also be presented as a probability number, how reliable could this number be? In this episode, our host and options trader Kai analyzes whether SKEW can be a great indicator to predict the black swan events
Inflation measures the cost of goods and services, and it usually rises at the expense of currency values; that is, if inflation is on the rise in a given region, that region's currency is most likely depreciating. This flies in the face of recent US dollar price action showing USD to be at multi-decade highs against euro, yen, and more as the Consumer Price Index (CPI) prints its highest values since 1981.Frank and Mikey describe how inflation can also affect interest rates, and, if one region hikes their rates higher than another, then that region can actually see its currency appreciate during high inflation. That seems to be the current story for USD as the US interest rate environment is the highest of any major economy - USD is the flight to quality.
Inflation measures the cost of goods and services, and it usually rises at the expense of currency values; that is, if inflation is on the rise in a given region, that region's currency is most likely depreciating. This flies in the face of recent US dollar price action showing USD to be at multi-decade highs against euro, yen, and more as the Consumer Price Index (CPI) prints its highest values since 1981.Frank and Mikey describe how inflation can also affect interest rates, and, if one region hikes their rates higher than another, then that region can actually see its currency appreciate during high inflation. That seems to be the current story for USD as the US interest rate environment is the highest of any major economy - USD is the flight to quality.
The tastytrade crew walks through detailed explanations of the implied volatility environment for NFLX and TSLA, both of which have earnings next week.
Mike is particularly interested in NFLX, with such front-loaded IV% and a large expected move for earnings.
Tune in to learn more with a live Q&A session as well!
The tastytrade crew walks through detailed explanations of the implied volatility environment for NFLX and TSLA, both of which have earnings next week.
Mike is particularly interested in NFLX, with such front-loaded IV% and a large expected move for earnings.
Tune in to learn more with a live Q&A session as well!
Today Michael Rechenthin, PhD (Dr. Data) introduces the new changes to lookback, tastytrade's free backtesting environment.It is improved and better than ever!
Today Michael Rechenthin, PhD (Dr. Data) introduces the new changes to lookback, tastytrade's free backtesting environment.It is improved and better than ever!
Rate hike expectations have whipped around this week! Join Tom, Victor and Jermal as they cover that and more on This Week in Stocks.
Rate hike expectations have whipped around this week! Join Tom, Victor and Jermal as they cover that and more on This Week in Stocks.
In the last month, the prices of all major cryptos have remained within a range, seeing much lower volatility than they had seen in the months prior. Much of the volatility in May and early June were due to a collapse of major crypto firms, with the Terra/Luna collapse being at the centerstage. That collapse led to a waterfall effect, leading to Three Arrows Capital, a crypto hedge fund, becoming insolvent. This led to a number of large crypto firms, such as Celsius and Voyager, filing bankruptcy to restructure due to defaulted loans. Were these the last majors catastrophes for the crypto markets, or is there more to come? Join Ryan and Eddie as they break it down on today's episode of Crypto Concepts!
In the last month, the prices of all major cryptos have remained within a range, seeing much lower volatility than they had seen in the months prior. Much of the volatility in May and early June were due to a collapse of major crypto firms, with the Terra/Luna collapse being at the centerstage. That collapse led to a waterfall effect, leading to Three Arrows Capital, a crypto hedge fund, becoming insolvent. This led to a number of large crypto firms, such as Celsius and Voyager, filing bankruptcy to restructure due to defaulted loans. Were these the last majors catastrophes for the crypto markets, or is there more to come? Join Ryan and Eddie as they break it down on today's episode of Crypto Concepts!
In today's episode Jermal takes a look at all the different markets that are being stressed to the max. Some key points:* 100 bps hike expectations volatile after CPI. * Bank earnings off to a rough start. Crude back to pre-Ukraine invasion levels.
Leftovers - Funds that are long unicorns
In today's episode Jermal takes a look at all the different markets that are being stressed to the max. Some key points:* 100 bps hike expectations volatile after CPI. * Bank earnings off to a rough start. Crude back to pre-Ukraine invasion levels.
Leftovers - Funds that are long unicorns
In bull markets, making money seems easy because whatever you buy just goes up a few days later, and you have an immediate profit. But what about a bear market? Well, the advantageous thing about being an active option trader is that you aren’t married to the long side like a traditional, passive investor is, so you have the flexibility to be more nimble and proactive with defending your position and switching your directional bias.And since we’re live on YouTube today, most of the show is dedicated to YOUR QUESTIONS.
In bull markets, making money seems easy because whatever you buy just goes up a few days later, and you have an immediate profit. But what about a bear market? Well, the advantageous thing about being an active option trader is that you aren’t married to the long side like a traditional, passive investor is, so you have the flexibility to be more nimble and proactive with defending your position and switching your directional bias.And since we’re live on YouTube today, most of the show is dedicated to YOUR QUESTIONS.
The recent rise in inflation has translated to some relatively predictable long-term trends: higher rates, lower stocks, and stronger USD. While an economist might be able to tell you as much, Errol and Frank discuss how and why those same markets closed in the opposite direction on the day of the highest inflation reading in more than 40 years.Economic data such as inflation and rate decisions can shift market dynamics, but they are difficult to equate with daily price action. Thus, Frank makes the case for day traders not acting like economists as predicting a market's reaction can be much harder than trading said reaction with stats and probabilities.
The recent rise in inflation has translated to some relatively predictable long-term trends: higher rates, lower stocks, and stronger USD. While an economist might be able to tell you as much, Errol and Frank discuss how and why those same markets closed in the opposite direction on the day of the highest inflation reading in more than 40 years.Economic data such as inflation and rate decisions can shift market dynamics, but they are difficult to equate with daily price action. Thus, Frank makes the case for day traders not acting like economists as predicting a market's reaction can be much harder than trading said reaction with stats and probabilities.
The tastytrade crew offers their options trade ideas for the day! Mike buys a put diagonal spread in C for earnings
Katie buys a call vertical spread in Wheat Futures
Tune in to learn more and a live Q&A as well!
The tastytrade crew offers their options trade ideas for the day! Mike buys a put diagonal spread in C for earnings
Katie buys a call vertical spread in Wheat Futures
Tune in to learn more and a live Q&A as well!
The yield curve inversion has gotten wider and the dollar has gotten stronger. Liz and Jenny roll their futures out to extend their duration.
The yield curve inversion has gotten wider and the dollar has gotten stronger. Liz and Jenny roll their futures out to extend their duration.
At tastytrade, we heavily advocate for selling options as an investing strategy. How does this stack up against the classic strategy of buying a stock and holding on to it?
Join Tom and Tony as they compare retail investing strategies of buy and hold vs selling premium.
At tastytrade, we heavily advocate for selling options as an investing strategy. How does this stack up against the classic strategy of buying a stock and holding on to it?
Join Tom and Tony as they compare retail investing strategies of buy and hold vs selling premium.
A few weeks ago we introduced neural networks and discussed some applications in finance, such as volatility forecasting. Today we’re going to talk a bit more about how a neural network can be adapted to financial data and look at a simple example of how they can be used for volatility forecasting. Join Tom, Tony and Julia as they discuss neural networks for volatility forecasting. If you have requests for any topics, reach out to Julia (@FinancePhoton) or Eddie (@ERajcevic11) on Twitter! You can also submit ideas through this form: https://www.tastytrade.com/alp...
A few weeks ago we introduced neural networks and discussed some applications in finance, such as volatility forecasting. Today we’re going to talk a bit more about how a neural network can be adapted to financial data and look at a simple example of how they can be used for volatility forecasting. Join Tom, Tony and Julia as they discuss neural networks for volatility forecasting. If you have requests for any topics, reach out to Julia (@FinancePhoton) or Eddie (@ERajcevic11) on Twitter! You can also submit ideas through this form: https://www.tastytrade.com/alp...
Michael Kurland is an award-winning founder, CEO, entrepreneur, and author.He is the founder of Branded Group, a facility management company that is dedicated to helping its customers deliver on their brand promises every day.Michael has come out with a new and very interesting book that we will talk about, titled, Broken to Better - 13 Ways Not to Fail at Life and Leadership. In the book, Michael details how he made an informed decision that would bring about the changes he wanted. He quit his job, adopted a healthier lifestyle, and moved from NY to California to launch his business which eventually become the award-winning facilities management company, Branded Group.
Michael Kurland is an award-winning founder, CEO, entrepreneur, and author.He is the founder of Branded Group, a facility management company that is dedicated to helping its customers deliver on their brand promises every day.Michael has come out with a new and very interesting book that we will talk about, titled, Broken to Better - 13 Ways Not to Fail at Life and Leadership. In the book, Michael details how he made an informed decision that would bring about the changes he wanted. He quit his job, adopted a healthier lifestyle, and moved from NY to California to launch his business which eventually become the award-winning facilities management company, Branded Group.
Today’s Consumer Price Index has everyone speculating about how high the Fed will raise rates at this month’s forthcoming meeting. But if you look at the bond market, interest rates have been steadily coming down since the June announcement when the Fed raised rates 75 basis points.
Tom and Dylan discuss the implications of the U.S. dollar trading at parity with the Euro for the first time in 20 years.
Today’s Consumer Price Index has everyone speculating about how high the Fed will raise rates at this month’s forthcoming meeting. But if you look at the bond market, interest rates have been steadily coming down since the June announcement when the Fed raised rates 75 basis points.
Tom and Dylan discuss the implications of the U.S. dollar trading at parity with the Euro for the first time in 20 years.
Bear markets bring about different dynamics in all tradable markets. How has this impacted implied volatility? Join Pete and Anton as they discuss implied volatility in bear markets.
Bear markets bring about different dynamics in all tradable markets. How has this impacted implied volatility? Join Pete and Anton as they discuss implied volatility in bear markets.
Delta hedging is a popular risk management strategy whereby the options trader offsets deltas accumulated by market movement with shares, options, or futures. Katie and Frank show you how to delta hedge an options portfolio that might be gaining or losing deltas with three separate strategies. First, Katie gives you the dynamics on how deltas flow in and out of your portfolio in a long or short options trade, and then she talks about rolling the other side of the options strategy to mitigate those deltas.Finally, Frank highlights a few ways to use static deltas in the underlying market S&P 500 ETF (SPY) shares or Small Equities 400 (SMES) futures to hedge deltas midway through an options trade.
Delta hedging is a popular risk management strategy whereby the options trader offsets deltas accumulated by market movement with shares, options, or futures. Katie and Frank show you how to delta hedge an options portfolio that might be gaining or losing deltas with three separate strategies. First, Katie gives you the dynamics on how deltas flow in and out of your portfolio in a long or short options trade, and then she talks about rolling the other side of the options strategy to mitigate those deltas.Finally, Frank highlights a few ways to use static deltas in the underlying market S&P 500 ETF (SPY) shares or Small Equities 400 (SMES) futures to hedge deltas midway through an options trade.
Mike and Katie explain what traders need to know when looking to add futures and futures options to their IRA portfolio. Learn about the requirements for capital, allowable strategies, and how to improve your probability of success.
Mike and Katie explain what traders need to know when looking to add futures and futures options to their IRA portfolio. Learn about the requirements for capital, allowable strategies, and how to improve your probability of success.
Tom's always managing this and rolling that, but what does he mean and why do we do it? It may have started based on empirical studies, but there are also theoretical reasons for retail option traders to manage their trades early. Today, Jacob joins Tom and Tony to get into what the central limit theorem has to say about early management and uncover a surprising result of the efficient market hypothesis.
Tom's always managing this and rolling that, but what does he mean and why do we do it? It may have started based on empirical studies, but there are also theoretical reasons for retail option traders to manage their trades early. Today, Jacob joins Tom and Tony to get into what the central limit theorem has to say about early management and uncover a surprising result of the efficient market hypothesis.
Traders have started to worry about the potential long-term bear market and the right strategy to hedge against their portfolios. Instead of selling calls which provides limited protections, traders look for more aggressive hedging strategies, such as buying puts. Is this a good idea?Join Tom and Tony as they discuss this strategy.
Traders have started to worry about the potential long-term bear market and the right strategy to hedge against their portfolios. Instead of selling calls which provides limited protections, traders look for more aggressive hedging strategies, such as buying puts. Is this a good idea?Join Tom and Tony as they discuss this strategy.
There are many layers to the crypto markets, and for those new to the space, it can be very intimidating. As someone who is just getting familiar with the crypto markets, Quentin has an abundance of questions. Whether it be about the underlying blockchain technology, or the different strategies we can use to trade crypto, Eddie will attempt to answer all of the questions that Quentin throws his way!
There are many layers to the crypto markets, and for those new to the space, it can be very intimidating. As someone who is just getting familiar with the crypto markets, Quentin has an abundance of questions. Whether it be about the underlying blockchain technology, or the different strategies we can use to trade crypto, Eddie will attempt to answer all of the questions that Quentin throws his way!
Tune in as Jermal covers:* Low volume ahead of CPI. * Oil tanks for second consecutive Tuesday. * Volatility might lead to Bank profitability. * Leftovers - Beatles Reign Supreme in U.K.
Tune in as Jermal covers:* Low volume ahead of CPI. * Oil tanks for second consecutive Tuesday. * Volatility might lead to Bank profitability. * Leftovers - Beatles Reign Supreme in U.K.
Option profit/loss is always determined by time (theta), volatility (vega), and direction (delta), but another way to think about delta is by way of the proximity effect. While the relationship between the stock price and strike price clearly impacts the intrinsic value of the strategy, it also impacts the extrinsic value of the strategy, as we see today.Have you seen our BRAND NEW CRASH COURSE on Rolling?
Option profit/loss is always determined by time (theta), volatility (vega), and direction (delta), but another way to think about delta is by way of the proximity effect. While the relationship between the stock price and strike price clearly impacts the intrinsic value of the strategy, it also impacts the extrinsic value of the strategy, as we see today.Have you seen our BRAND NEW CRASH COURSE on Rolling?
Chief trading strategist Christopher Vecchio joins Pete to discuss the latest Macro strategies and what's happening in the markets this week.
In this segment, they discuss June's inflation report, Bank of Canada's rate decision, the U.S. Treasury yields, and more!
Chief trading strategist Christopher Vecchio joins Pete to discuss the latest Macro strategies and what's happening in the markets this week.
In this segment, they discuss June's inflation report, Bank of Canada's rate decision, the U.S. Treasury yields, and more!
Day trading has become one of the most popular strategies in the stock market, but you can get lost before you even start if you don't have the right product. Jermal and Frank use a simple contrarian strategy as the backdrop for testing 5 different ways to day trade. The guys highlight the problems with day trading shares of stock or ETFs before landing at futures and futures options.While the E-mini S&P 500 (ES) futures are a classic, popular product, they can be too big for the everyday trader who isn't prepared for a +/-$3,500 move per day. Check out some smaller ways to day trade stocks using Micro and Small futures from Jermal and Frank.
Day trading has become one of the most popular strategies in the stock market, but you can get lost before you even start if you don't have the right product. Jermal and Frank use a simple contrarian strategy as the backdrop for testing 5 different ways to day trade. The guys highlight the problems with day trading shares of stock or ETFs before landing at futures and futures options.While the E-mini S&P 500 (ES) futures are a classic, popular product, they can be too big for the everyday trader who isn't prepared for a +/-$3,500 move per day. Check out some smaller ways to day trade stocks using Micro and Small futures from Jermal and Frank.
Mike dives into DAL earnings and explains how the expiration choice between SEP and AUG is a little different than the previous day's choice in PEP - he also fields questions from the live YouTube chat - tune in for more!
Mike dives into DAL earnings and explains how the expiration choice between SEP and AUG is a little different than the previous day's choice in PEP - he also fields questions from the live YouTube chat - tune in for more!
Anton joins Liz and Jenny to talk about this new era of high volatility. He brings on a study comparing SPY strangles and talks about their benefits in high volatility. They discuss the pros and cons of strangles vs. iron condors and when is the optimal time for either trade.
Anton joins Liz and Jenny to talk about this new era of high volatility. He brings on a study comparing SPY strangles and talks about their benefits in high volatility. They discuss the pros and cons of strangles vs. iron condors and when is the optimal time for either trade.
tastytrade has previously shown that most outlier losses come in times of low IV, not high IV. The VIX over the past couple of years has maintained an above average level for most of that time which is quite unusual. How has this affected the symmetry of volatility and the tail risk of strangles?
Join Tom and Tony as they discuss how high implied volatility impacts the outlier risk in SPY 16∆ strangles.
tastytrade has previously shown that most outlier losses come in times of low IV, not high IV. The VIX over the past couple of years has maintained an above average level for most of that time which is quite unusual. How has this affected the symmetry of volatility and the tail risk of strangles?
Join Tom and Tony as they discuss how high implied volatility impacts the outlier risk in SPY 16∆ strangles.
tastytrade research often focuses on the percentage of winning trades. But how much winning do those winners actually do? Today, Tom and Tony dive into the data to see just how much of the initial credit tastytraders get to take home.
tastytrade research often focuses on the percentage of winning trades. But how much winning do those winners actually do? Today, Tom and Tony dive into the data to see just how much of the initial credit tastytraders get to take home.
If word is bond, what do you have when you break that bond? What is the "cost" of a broken contract? Tom, Victor, and Tony discuss why Elon pulling out of the Twitter deal is dangerous. Discover why Tom believes TWTR and TSLA are damaged goods, why CEO integrity matters, and what Victor thinks can be done to discourage this type of behavior.
If word is bond, what do you have when you break that bond? What is the "cost" of a broken contract? Tom, Victor, and Tony discuss why Elon pulling out of the Twitter deal is dangerous. Discover why Tom believes TWTR and TSLA are damaged goods, why CEO integrity matters, and what Victor thinks can be done to discourage this type of behavior.
June jobs report sales reality of 75 bps hike. Euro edges closer to parity. Will earnings really be THAT bad? Jermal weighs in on this segment of Engineering The Trade.
June jobs report sales reality of 75 bps hike. Euro edges closer to parity. Will earnings really be THAT bad? Jermal weighs in on this segment of Engineering The Trade.
A big part of our strategy at tastytrade is to take profits early and manage our winners. But different strategies can have their own unique profit taking characteristics. Here’s a quick guide to the different profit targets we like to use on some of our most used strategies.Have you seen our BRAND NEW CRASH COURSE on rolling?
A big part of our strategy at tastytrade is to take profits early and manage our winners. But different strategies can have their own unique profit taking characteristics. Here’s a quick guide to the different profit targets we like to use on some of our most used strategies.Have you seen our BRAND NEW CRASH COURSE on rolling?
In today’s segment, Anton and Pete cover two potential trade ideas: one in crude oil and one in the Japanese yen.
In today’s segment, Anton and Pete cover two potential trade ideas: one in crude oil and one in the Japanese yen.
The S&P 500 fell more than 20% in the first half of 2022, which is the worst performance in such a time frame since before 2000. Experienced derivatives traders Mike and Frank use stock stats to make 3 predictions on where the market could be headed in 2022's second half. The guys use 16-delta options to show the S&P 500 ETF's (SPY) projected range for the rest of the year, and then they predict the market could stay well inside this range.They also look at a potential pairs trade of Nasdaq vs S&P given their divergence so far this year. Finally, Frank makes a case for greater day trading opportunities, and he highlights how to use the new Small Equities 400 (SMES) futures to day trade the stock action.
The S&P 500 fell more than 20% in the first half of 2022, which is the worst performance in such a time frame since before 2000. Experienced derivatives traders Mike and Frank use stock stats to make 3 predictions on where the market could be headed in 2022's second half. The guys use 16-delta options to show the S&P 500 ETF's (SPY) projected range for the rest of the year, and then they predict the market could stay well inside this range.They also look at a potential pairs trade of Nasdaq vs S&P given their divergence so far this year. Finally, Frank makes a case for greater day trading opportunities, and he highlights how to use the new Small Equities 400 (SMES) futures to day trade the stock action.
Join Mike as he explains how to synthesize margin in an IRA account by defining risk on naked short options trades!
Join Mike as he explains how to synthesize margin in an IRA account by defining risk on naked short options trades!
Dr. Madan Kandula is the Co-founder & CEO of Advent. The company is a pioneer in sleep apnea treatments and other nasal conditions.
With his unwavering commitment to smashing the conventional constructs of a failed healthcare system, Dr. Kandula has moved industry goal posts during his two decades of clinical service, pulling patients off the hamster wheel of indefinite physician care through his revolutionary, impactful treatments.
With more than 13 clinics in four states, their success is a testimony to Advent's commitment. Dr. Kandula was the first surgeon to perform Balloon Sinuplasty, Pediatric Balloon Sinuplasty, FinESS, Propel sinus stent placement, and in-office nasal polyp removal in the country.
Dr. Madan Kandula is the Co-founder & CEO of Advent. The company is a pioneer in sleep apnea treatments and other nasal conditions.
With his unwavering commitment to smashing the conventional constructs of a failed healthcare system, Dr. Kandula has moved industry goal posts during his two decades of clinical service, pulling patients off the hamster wheel of indefinite physician care through his revolutionary, impactful treatments.
With more than 13 clinics in four states, their success is a testimony to Advent's commitment. Dr. Kandula was the first surgeon to perform Balloon Sinuplasty, Pediatric Balloon Sinuplasty, FinESS, Propel sinus stent placement, and in-office nasal polyp removal in the country.
A front-ratio put spread is a variant of a short put, as it consists of buying one put closer to the money, and selling two further out of the money puts to route the trade as a credit. Simply, it is a long put spread and a naked short put.A put broken wing butterfly is a variation of the traditional butterfly, but with a higher probability of profit (POP). Simply, it is a long put spread and a short put spread. These two strategies are similar in approach, but how do they differ?Join Tom and Tony to find out!
A front-ratio put spread is a variant of a short put, as it consists of buying one put closer to the money, and selling two further out of the money puts to route the trade as a credit. Simply, it is a long put spread and a naked short put.A put broken wing butterfly is a variation of the traditional butterfly, but with a higher probability of profit (POP). Simply, it is a long put spread and a short put spread. These two strategies are similar in approach, but how do they differ?Join Tom and Tony to find out!
As active traders, it’s inevitable that we’ll get hit with a significant drawdown in our portfolios. There is no foolproof strategy that can fully immunize your portfolio from every possible risk, but early drawdowns can be especially damaging because they can set your portfolio back quite a ways - requiring even greater returns just to bring the account back to even. Therefore, if you’re a new trader just getting started, it might be a better strategy to cap your undefined-risk losses at 2x or 3x of credit received, as opposed to holding indefinitely.Did you catch our recent segment on how to determine delta/theta levels for your portfolio?
As active traders, it’s inevitable that we’ll get hit with a significant drawdown in our portfolios. There is no foolproof strategy that can fully immunize your portfolio from every possible risk, but early drawdowns can be especially damaging because they can set your portfolio back quite a ways - requiring even greater returns just to bring the account back to even. Therefore, if you’re a new trader just getting started, it might be a better strategy to cap your undefined-risk losses at 2x or 3x of credit received, as opposed to holding indefinitely.Did you catch our recent segment on how to determine delta/theta levels for your portfolio?
Get ready for this week's Research Corner! Anton joins Tom and Tony with research-driven statistics including: correlations, expected moves, implied volatility overstatement, historical volatilities, pairs trades expected moves, and price ranks.
Get ready for this week's Research Corner! Anton joins Tom and Tony with research-driven statistics including: correlations, expected moves, implied volatility overstatement, historical volatilities, pairs trades expected moves, and price ranks.
On this episode of Engineering the Trade, Jermal Chandler and Julia Spina take a look at a few macro charts as they question whether or not this recent rally has legs.
On this episode of Engineering the Trade, Jermal Chandler and Julia Spina take a look at a few macro charts as they question whether or not this recent rally has legs.
什么是偏斜指数SKEW？它听上去和之前讲到过的波动率偏斜非常相似，那他们说的是一种概念么？他们两者之间有什么相同与不同之处？What is the SKEW index? It sounds similar to the volatility skew, so are they referring to the same concept? If not, what are the similarities and differences between them?
Adjustments are a big part of what we do to defend our positions at tastytrade. But once you’ve made an adjustment, how do you interpret your new position? How have your profit/loss dynamics changed, and how has your directional bias potentially changed? Obviously, the answers to these questions depend heavily on the specific strategy in question, so we take a look at potential adjustments in our AMZN Short Strangle and GLD Calendar Spread.Have you seen our BRAND NEW CRASH COURSE on Rolling?
Adjustments are a big part of what we do to defend our positions at tastytrade. But once you’ve made an adjustment, how do you interpret your new position? How have your profit/loss dynamics changed, and how has your directional bias potentially changed? Obviously, the answers to these questions depend heavily on the specific strategy in question, so we take a look at potential adjustments in our AMZN Short Strangle and GLD Calendar Spread.Have you seen our BRAND NEW CRASH COURSE on Rolling?
As the euro and yen enter territory unseen in over two decades, futures dudes Mikey and Frank give you some easy ways to access forex markets. US dollar futures like the Small US Dollar (SFX) let you trade a basket of currency crosses in one product, similar to the S&P 500. Then, there are the individual crosses like the Euro (6E) and Yen (6J) futures that give you a more specific trade, just like single stocks.While you might get a better value going with a currency cross like EUR/USD or JPY/USD, Mikey and Frank opt for the simpler option in selling SFX futures to get long euro, yen, pound and more in a single trade. Check out the historical data on forex markets, and see if this opportunity fits your portfolio.
As the euro and yen enter territory unseen in over two decades, futures dudes Mikey and Frank give you some easy ways to access forex markets. US dollar futures like the Small US Dollar (SFX) let you trade a basket of currency crosses in one product, similar to the S&P 500. Then, there are the individual crosses like the Euro (6E) and Yen (6J) futures that give you a more specific trade, just like single stocks.While you might get a better value going with a currency cross like EUR/USD or JPY/USD, Mikey and Frank opt for the simpler option in selling SFX futures to get long euro, yen, pound and more in a single trade. Check out the historical data on forex markets, and see if this opportunity fits your portfolio.
Today the tastytrade crew walks through their top 5 stocks to watch in July, and they see what sort of options trading opportunities there are in the underlyings as well. Full stock article here - https://www.tastytrade.com/news-insights/best-stocks-july-2022
Delta Air Lines, Inc. (DAL)
Bank of America Corp. (BAC)
AT&T (T)
Coca-Cola Co. (KO)
Merck & Co., Inc. (MRK)
Tune in to learn more and a live Q&A as well!
Today the tastytrade crew walks through their top 5 stocks to watch in July, and they see what sort of options trading opportunities there are in the underlyings as well. Full stock article here - https://www.tastytrade.com/news-insights/best-stocks-july-2022
Delta Air Lines, Inc. (DAL)
Bank of America Corp. (BAC)
AT&T (T)
Coca-Cola Co. (KO)
Merck & Co., Inc. (MRK)
Tune in to learn more and a live Q&A as well!
Iron condors are a great strategy to sell premium, keep neutral delta, and stay small in an underlying. Once you decide to use this strategy, the next question is how big do you want your position to be? Join Tom and Tony as they discuss what happens as you widen the wings of an iron condor.
Iron condors are a great strategy to sell premium, keep neutral delta, and stay small in an underlying. Once you decide to use this strategy, the next question is how big do you want your position to be? Join Tom and Tony as they discuss what happens as you widen the wings of an iron condor.
The embattled stock market has seen a bump, a four day winning streak that hasn't been seen in several months. Join Tom, Tony and Jermal as they discuss all the reasons why on today's episode.
The embattled stock market has seen a bump, a four day winning streak that hasn't been seen in several months. Join Tom, Tony and Jermal as they discuss all the reasons why on today's episode.
Today's guest Mike Frisch spent five years as a CFTC trial attorney and now specializes in cryptocurrency, digital assets and Web3 as partner of the Croke Fairchild Morgan and Beres law firm. Mike weighs in on the state of crypto currently, and how it may be regulated in the future. He also dives into the prediction markets of Kalshi and PredictIt to talk about student loan forgiveness, Build Back Better, the Illinois gubernatorial race and 2024.
Today's guest Mike Frisch spent five years as a CFTC trial attorney and now specializes in cryptocurrency, digital assets and Web3 as partner of the Croke Fairchild Morgan and Beres law firm. Mike weighs in on the state of crypto currently, and how it may be regulated in the future. He also dives into the prediction markets of Kalshi and PredictIt to talk about student loan forgiveness, Build Back Better, the Illinois gubernatorial race and 2024.
Staking is the process that powers the proof-of-stake mechanism, which is the increasingly popular alternative to Bitcoin's proof-of-work mechanism. Users stake their assets on the network, which allow them to validate transactions and receive rewards in return. Platforms that offer staking as a service allow crypto investors to benefit from the yields, without needing the technical background to participate. However, there are risks with these platforms that cannot be overlooked.
Staking is the process that powers the proof-of-stake mechanism, which is the increasingly popular alternative to Bitcoin's proof-of-work mechanism. Users stake their assets on the network, which allow them to validate transactions and receive rewards in return. Platforms that offer staking as a service allow crypto investors to benefit from the yields, without needing the technical background to participate. However, there are risks with these platforms that cannot be overlooked.
Fed minutes: Full speed ahead on rates. 2s10s curve inverted for third consecutive day. Jobless claims at 6-month highs; 4-wk moving avg. rising.Leftovers - Consumers Spent More on Services in May
Fed minutes: Full speed ahead on rates. 2s10s curve inverted for third consecutive day. Jobless claims at 6-month highs; 4-wk moving avg. rising.Leftovers - Consumers Spent More on Services in May
One of the most important points in time for a trade is trade entry. Here, you are able to analyze all the different metrics associated with a potential trade to make sure that you are comfortable with the risk-return tradeoff, the probability of profit, and the directional bias. As we study our Calendar Spread in WMT, we learn of some potential improvements we could make to our trade entry analysis for future Calendar Spreads.And since we are live on YouTube, we spend most of our time answering YOUR QUESTIONS.[Have you seen our BRAND NEW CRASH COURSE on Rolling?
One of the most important points in time for a trade is trade entry. Here, you are able to analyze all the different metrics associated with a potential trade to make sure that you are comfortable with the risk-return tradeoff, the probability of profit, and the directional bias. As we study our Calendar Spread in WMT, we learn of some potential improvements we could make to our trade entry analysis for future Calendar Spreads.And since we are live on YouTube, we spend most of our time answering YOUR QUESTIONS.[Have you seen our BRAND NEW CRASH COURSE on Rolling?
Nonfarm Payrolls can give you a sense of how the US economy is performing, but the data release can also be a source of opportunity for active traders. Errol and Frank use statistics to measure the daily movement in markets like stocks and bonds, and then they apply the results to what could happen on the day of a Nonfarm Payroll event.Frank contends that trying to predict what will happen based off a good or bad number can be very difficult, so he shows Errol how to trade the action that comes out of the results with standard deviations.
Nonfarm Payrolls can give you a sense of how the US economy is performing, but the data release can also be a source of opportunity for active traders. Errol and Frank use statistics to measure the daily movement in markets like stocks and bonds, and then they apply the results to what could happen on the day of a Nonfarm Payroll event.Frank contends that trying to predict what will happen based off a good or bad number can be very difficult, so he shows Errol how to trade the action that comes out of the results with standard deviations.
The tastytrade crew offers their options trade ideas for the day! Mike buys a call diagonal spread in AAPL
Nick buys a call diagonal spread in GLD Katie sells an iron condor in Japanese Yen
Tune in to learn more and a live Q&A as well!
The tastytrade crew offers their options trade ideas for the day! Mike buys a call diagonal spread in AAPL
Nick buys a call diagonal spread in GLD Katie sells an iron condor in Japanese Yen
Tune in to learn more and a live Q&A as well!
The 2 year and 10 year are inverted, so Liz and Jenny place a new trade hoping they will un-invert. They sell the /S2Y and buy the /S10Y. The trade uses about $800 in buying power. Their profit target is $50.
The 2 year and 10 year are inverted, so Liz and Jenny place a new trade hoping they will un-invert. They sell the /S2Y and buy the /S10Y. The trade uses about $800 in buying power. Their profit target is $50.
Black Swan events are rare, but when they do happen, market conditions can change rapidly and traders don’t always have much time to respond. Let’s take a look at how long it has taken the VIX to reach a certain degree of expansion historically. Join Tom and Tony as they discuss these turbulent times.
Black Swan events are rare, but when they do happen, market conditions can change rapidly and traders don’t always have much time to respond. Let’s take a look at how long it has taken the VIX to reach a certain degree of expansion historically. Join Tom and Tony as they discuss these turbulent times.
In the stock market, we can sell calls against shares and collect dividends, allowing us to make our money work for us. In the crypto space however, many investors are simply holding their crypto without knowing what to do with it. For those who may not want to spend their crypto on assets like NFTs, staking offers a way to put long crypto positions to work. Check out this episode of Alpha Bytes to learn more about staking crypto!If you have requests for any topics, reach out to Julia (@FinancePhoton) or Eddie (@ERajcevic11) on Twitter! You can also submit ideas through this form: https://www.tastytrade.com/alp.
In the stock market, we can sell calls against shares and collect dividends, allowing us to make our money work for us. In the crypto space however, many investors are simply holding their crypto without knowing what to do with it. For those who may not want to spend their crypto on assets like NFTs, staking offers a way to put long crypto positions to work. Check out this episode of Alpha Bytes to learn more about staking crypto!If you have requests for any topics, reach out to Julia (@FinancePhoton) or Eddie (@ERajcevic11) on Twitter! You can also submit ideas through this form: https://www.tastytrade.com/alp.
The Russian ruble hasn’t been this strong in 5 years. Oil prices are fueling inflation. Have the sanctions placed on Russia by the U.S. and Western Europe backfired? Have they had the unintended consequences of strengthening Russian ties with China and India? Can we continue sanctioning Russia or will the increased prices in oil and natural gas become unsustainable to the point sanctions fail? Tom and Dylan debate sanctions, discuss the state of crypto and more on this week’s episode.
The Russian ruble hasn’t been this strong in 5 years. Oil prices are fueling inflation. Have the sanctions placed on Russia by the U.S. and Western Europe backfired? Have they had the unintended consequences of strengthening Russian ties with China and India? Can we continue sanctioning Russia or will the increased prices in oil and natural gas become unsustainable to the point sanctions fail? Tom and Dylan debate sanctions, discuss the state of crypto and more on this week’s episode.
The tastytrade crew dives deep on the energy sector, backwardation vs contango, hedging active trades, and why OTM put leap options will not have the same multiple of return on a favorable directional move compared to OTM call options!
Tune in to learn more with a live Q&A as well!
The tastytrade crew dives deep on the energy sector, backwardation vs contango, hedging active trades, and why OTM put leap options will not have the same multiple of return on a favorable directional move compared to OTM call options!
Tune in to learn more with a live Q&A as well!
A modern trader who takes to the internet is likely to be inundated by advertisements for investment opportunities and advice. But who is honestly trying to help you and who is just making things up get your money? Today, Jacob joins Tom and Tony to explain some of the statistical tools that are used to distinguish real data from fraud, helping you stay skeptical and safe.
A modern trader who takes to the internet is likely to be inundated by advertisements for investment opportunities and advice. But who is honestly trying to help you and who is just making things up get your money? Today, Jacob joins Tom and Tony to explain some of the statistical tools that are used to distinguish real data from fraud, helping you stay skeptical and safe.
The Term Structure of VIX measures traders’ perceptions of 30-day volatility X days in the future.
The term structure for indices such as SPX is usually upward sloping, which is called contango. But sometimes, we find the opposite scenario with downward sloping.
Join Tom and Tony as they discuss contango and backwardation and how often we have seen backwardation this year so far?
The Term Structure of VIX measures traders’ perceptions of 30-day volatility X days in the future.
The term structure for indices such as SPX is usually upward sloping, which is called contango. But sometimes, we find the opposite scenario with downward sloping.
Join Tom and Tony as they discuss contango and backwardation and how often we have seen backwardation this year so far?
Greg Cohen is the CEO of Fortis. He is a recognized financial technology industry leader who has built national and global organizations with high-level exits. The company delivers comprehensive payment solutions and commerce enablement to software partners & developers who process billions of dollars every year. The company's mission is to forge holistic commerce enablement for software partners and developers, processing billions of dollars annually. As a solution of choice for the future of payments, Fortis moves commerce closer to invisible with a proprietary platform that supports and strengthens the commerce and payments capabilities of software partners.
Greg Cohen is the CEO of Fortis. He is a recognized financial technology industry leader who has built national and global organizations with high-level exits. The company delivers comprehensive payment solutions and commerce enablement to software partners & developers who process billions of dollars every year. The company's mission is to forge holistic commerce enablement for software partners and developers, processing billions of dollars annually. As a solution of choice for the future of payments, Fortis moves commerce closer to invisible with a proprietary platform that supports and strengthens the commerce and payments capabilities of software partners.
Bond yields puke on Friday and Tuesday. First time in 2 years TSLA missed on quarterly deliveries. Zuck gives warning of economic downturn.
Bond yields puke on Friday and Tuesday. First time in 2 years TSLA missed on quarterly deliveries. Zuck gives warning of economic downturn.
Though outliers are so named due to their rare appearance in data sets, the unlikely does have to occur sometime. Right now, forex and interest rate markets are trading in one of those outlier environments as the euro (EUR/USD) closes in on parity with the US dollar for the first time since 2002. Experienced derivatives traders Jermal and Frank give you the historical data on the market's current outliers, and they show you how they might trade them.Finally, the trade doesn't end at order entry; the guys walk through some scenarios of how you might defend a trade in, say, USD that has gone a little further out before coming back to normal.
Though outliers are so named due to their rare appearance in data sets, the unlikely does have to occur sometime. Right now, forex and interest rate markets are trading in one of those outlier environments as the euro (EUR/USD) closes in on parity with the US dollar for the first time since 2002. Experienced derivatives traders Jermal and Frank give you the historical data on the market's current outliers, and they show you how they might trade them.Finally, the trade doesn't end at order entry; the guys walk through some scenarios of how you might defend a trade in, say, USD that has gone a little further out before coming back to normal.
As active option traders, losses are simply part of the game. So when we do have the inevitable loss in our portfolios, how should we manage them? At tastytrade, there are effectively two schools of thought when it comes to managing your losers, and today, we explore both of them.Have you seen our BRAND NEW CRASH COURSE on Rolling?
As active option traders, losses are simply part of the game. So when we do have the inevitable loss in our portfolios, how should we manage them? At tastytrade, there are effectively two schools of thought when it comes to managing your losers, and today, we explore both of them.Have you seen our BRAND NEW CRASH COURSE on Rolling?
Join the tastytrade crew as they walk through tastyworks platform questions from the YouTube chat!
Join the tastytrade crew as they walk through tastyworks platform questions from the YouTube chat!
Buying power reduction can be a good indicator of a theoretical biggest expected loss on short naked options. Although rare when managed at 21 DTE , there can be losses that exceed the BPR of a 16∆ strangle. In 2022, how has BPR priced in the worst losses in different asset classes? Join Tony and Nicky Bat as they discuss buying power reduction for 16∆ strangles in various ETFs and the losses incurred in the first half of the year.
Buying power reduction can be a good indicator of a theoretical biggest expected loss on short naked options. Although rare when managed at 21 DTE , there can be losses that exceed the BPR of a 16∆ strangle. In 2022, how has BPR priced in the worst losses in different asset classes? Join Tony and Nicky Bat as they discuss buying power reduction for 16∆ strangles in various ETFs and the losses incurred in the first half of the year.
The BPR for a short option trade is how much capital the brokerage reserves to cover potential losses. But how often does it really come to that? Today, Tony and Nick dive into the data to see just how often we lose how much of the BPR, contrasting a range of underlying's and strategies.
The BPR for a short option trade is how much capital the brokerage reserves to cover potential losses. But how often does it really come to that? Today, Tony and Nick dive into the data to see just how often we lose how much of the BPR, contrasting a range of underlying's and strategies.
On this episode of Engineering the Trade, Josh Fabian shares with Jermal Chandler a more nuanced view of the current trading environment and gives a few hints about the next volatility catalysts of which retail investors might want to be aware.
On this episode of Engineering the Trade, Josh Fabian shares with Jermal Chandler a more nuanced view of the current trading environment and gives a few hints about the next volatility catalysts of which retail investors might want to be aware.
Defined-Risk Strategies are an important piece to the puzzle for every portfolio—especially the portfolios of newer traders just starting out. But the very nature of defining your risk on a trade reduces the effectiveness of these strategies. Here’s how to mitigate that reduction, and recapture some of the potency of these strategies. Have you seen our BRAND NEW CRASH COURSE on Rolling?
Defined-Risk Strategies are an important piece to the puzzle for every portfolio—especially the portfolios of newer traders just starting out. But the very nature of defining your risk on a trade reduces the effectiveness of these strategies. Here’s how to mitigate that reduction, and recapture some of the potency of these strategies. Have you seen our BRAND NEW CRASH COURSE on Rolling?
Pairs trades have become a useful tool to speculate commodities while greatly reducing risk. As the correlation between a pair falls, we expect to see the given pairs trade be more volatile. How has each pairs trade correlation and volatility moved within relation to each other. Join Pete and Anton as they discuss different pairs trades and their volatility.
Pairs trades have become a useful tool to speculate commodities while greatly reducing risk. As the correlation between a pair falls, we expect to see the given pairs trade be more volatile. How has each pairs trade correlation and volatility moved within relation to each other. Join Pete and Anton as they discuss different pairs trades and their volatility.
Buying a market like Bitcoin at this deep of a discount can be nice, but doing so with an added edge in your favor thanks to options can be even better. Mikey and Frank use the cash market, futures, and options to buy cryptocurrency with a greater than 50% probability of profiting.First, they use the spot market and call options to show you how to enter into a long Bitcoin position that's got a theoretical 55-75% chance of winning. Next, they skip buying the market outright to simply sell puts with as high as 80% probabilities of profit. Finally, the futures dudes cook up a cross-product covered call to make everything smaller by buying Small Cryptocurrency (SCCX) futures while selling call options on the Bitcoin (BITO) ETF.
Buying a market like Bitcoin at this deep of a discount can be nice, but doing so with an added edge in your favor thanks to options can be even better. Mikey and Frank use the cash market, futures, and options to buy cryptocurrency with a greater than 50% probability of profiting.First, they use the spot market and call options to show you how to enter into a long Bitcoin position that's got a theoretical 55-75% chance of winning. Next, they skip buying the market outright to simply sell puts with as high as 80% probabilities of profit. Finally, the futures dudes cook up a cross-product covered call to make everything smaller by buying Small Cryptocurrency (SCCX) futures while selling call options on the Bitcoin (BITO) ETF.
The tastytrade crew explains how to minimize portfolio volatility when leaving for a few weeks!
Rolling out in time, closing scratches, and defining risk are a few ways to reduce portfolio P/L - tune in to learn more!
The tastytrade crew explains how to minimize portfolio volatility when leaving for a few weeks!
Rolling out in time, closing scratches, and defining risk are a few ways to reduce portfolio P/L - tune in to learn more!
At tastytrade, we are always trying to stay diversified and have positions in all different types of underlying’s. When implied volatility is high in the market, can we sell premium in more stocks with high IVR? Join Tom and Tony as they shed light on how to successfully navigate the market in these volatile environments.
At tastytrade, we are always trying to stay diversified and have positions in all different types of underlying’s. When implied volatility is high in the market, can we sell premium in more stocks with high IVR? Join Tom and Tony as they shed light on how to successfully navigate the market in these volatile environments.
The markets are all over the place. The Ukraine-Russia war continues, January 6th. hearings, Supreme Court turning the dial back to the 1950s, Trump manages to make Ketchup look like a concealed weapon, oh, and that hijacking the motorcade bit, inflation is still on the rise, COVID and its 90 variations just won't go away, like my ex, good times. There is so much going on from a historical perspective. What might the next 6 months of 2022 look like? We're hopeful. What goes up, must come down. Jermal, Tom, and Tony discuss.
The markets are all over the place. The Ukraine-Russia war continues, January 6th. hearings, Supreme Court turning the dial back to the 1950s, Trump manages to make Ketchup look like a concealed weapon, oh, and that hijacking the motorcade bit, inflation is still on the rise, COVID and its 90 variations just won't go away, like my ex, good times. There is so much going on from a historical perspective. What might the next 6 months of 2022 look like? We're hopeful. What goes up, must come down. Jermal, Tom, and Tony discuss.
S&P 500 is having a disastrous quarter and half. Dollar is having its best quarter since 2016. Consumer fell for 1st time in 2022; Spending is ⅔ of economy.
Leftovers - State of the Un-icorn.
S&P 500 is having a disastrous quarter and half. Dollar is having its best quarter since 2016. Consumer fell for 1st time in 2022; Spending is ⅔ of economy.
Leftovers - State of the Un-icorn.
Today for the YouTube Livestream, we’re talking all things option strategies. Specifically, we look to adjust our Broken-Wing Butterfly in QQQ, and then we check in on our two Calendar Spreads in GLD and WMT.Then we focus solely on YOUR questions.Have you seen our BRAND NEW CRASH COURSE on Rolling?
Today for the YouTube Livestream, we’re talking all things option strategies. Specifically, we look to adjust our Broken-Wing Butterfly in QQQ, and then we check in on our two Calendar Spreads in GLD and WMT.Then we focus solely on YOUR questions.Have you seen our BRAND NEW CRASH COURSE on Rolling?
After running through the market moves and what's driving today's drop in natural gas prices, Pete and James discuss copper futures. Traders can express opinions on the future movement of copper prices utilizing /HG contracts. Traders looking to downsize the trade but want exposure to the copper markets may be interested in calendar spreads in the futures.
After running through the market moves and what's driving today's drop in natural gas prices, Pete and James discuss copper futures. Traders can express opinions on the future movement of copper prices utilizing /HG contracts. Traders looking to downsize the trade but want exposure to the copper markets may be interested in calendar spreads in the futures.
Currencies are known to be less volatile assets than stocks or commodities, but the euro currently rests in quite a precarious position relative to the US dollar. Errol and Frank look at historical prices of the EUR/USD conversion rate to find out the last time it traded at parity, and they look forward to options on the euro and USD to project the chances it gets back there by the end of 2022.The guys find very rare cases for the euro to fall below $1 in the last 20 years, but they see that there's plenty of option premium in the strikes that would entail such a move. Are the $1 puts in the Euro FX Futures (6E) options a buy or sell? Should you be aiming for upside or downside in the Small US Dollar Futures (SFX)?
Currencies are known to be less volatile assets than stocks or commodities, but the euro currently rests in quite a precarious position relative to the US dollar. Errol and Frank look at historical prices of the EUR/USD conversion rate to find out the last time it traded at parity, and they look forward to options on the euro and USD to project the chances it gets back there by the end of 2022.The guys find very rare cases for the euro to fall below $1 in the last 20 years, but they see that there's plenty of option premium in the strikes that would entail such a move. Are the $1 puts in the Euro FX Futures (6E) options a buy or sell? Should you be aiming for upside or downside in the Small US Dollar Futures (SFX)?
The tastytrade crew offers their options trade ideas for the day! Mike buys a put diagonal spread in MU for earnings
Nick sells a put in AAPL into this selloff
Katie sells a put spread in Gold Futures
Tune in to learn more and a live Q&A as well!
The tastytrade crew offers their options trade ideas for the day! Mike buys a put diagonal spread in MU for earnings
Nick sells a put in AAPL into this selloff
Katie sells a put spread in Gold Futures
Tune in to learn more and a live Q&A as well!
Liz and Jenny look at rolling their short calls in /SFX to August. They decide to close the options and just short the future instead. They discuss commodities and price extremes. They place a new yield curve trade by getting long /S10Y and selling /S2Y.
Liz and Jenny look at rolling their short calls in /SFX to August. They decide to close the options and just short the future instead. They discuss commodities and price extremes. They place a new yield curve trade by getting long /S10Y and selling /S2Y.
Most of the time when we discuss diversification, we focus on mitigating price risk by selecting assets that are not correlated with one another. However, just because two assets may be uncorrelated in terms of price changes, does that mean they are also uncorrelated in terms of volatility changes? As options sellers, an increase in volatility leads to a rise in options premium, which negatively impacts our P/L and increases our BPR. So, how correlated are the volatilities of various products and is there any way we can diversify some of this risk?Join Tom and Tony to find out!
Most of the time when we discuss diversification, we focus on mitigating price risk by selecting assets that are not correlated with one another. However, just because two assets may be uncorrelated in terms of price changes, does that mean they are also uncorrelated in terms of volatility changes? As options sellers, an increase in volatility leads to a rise in options premium, which negatively impacts our P/L and increases our BPR. So, how correlated are the volatilities of various products and is there any way we can diversify some of this risk?Join Tom and Tony to find out!
Last week we introduced neural networks and an interesting question came up: “how do hedge funds use this technology?” Researchers are only beginning to understand the scope and limitations of machine learning in finance.
Join Tom, Tony and Julia as they take a realistic look at how machine learning is used based on what is currently known in the industry, particularly among quantitative hedge funds and proprietary trading firms.
If you have requests for any topics, reach out to Julia (@FinancePhoton) or Eddie (@ERajcevic11) on Twitter!You can also submit ideas through this form: https://www.tastytrade.com/alp...
Last week we introduced neural networks and an interesting question came up: “how do hedge funds use this technology?” Researchers are only beginning to understand the scope and limitations of machine learning in finance.
Join Tom, Tony and Julia as they take a realistic look at how machine learning is used based on what is currently known in the industry, particularly among quantitative hedge funds and proprietary trading firms.
If you have requests for any topics, reach out to Julia (@FinancePhoton) or Eddie (@ERajcevic11) on Twitter!You can also submit ideas through this form: https://www.tastytrade.com/alp...
The January 6th. investigation. Supreme Court rulings. Inflation. There’s no question the U.S. is being tested on a number of fronts, including credibility. Is there a tipping point where these political tests jeopardize financial markets and their integrity? On this week’s episode, Tom and Dylan address the challenges we face today and why it is we’ll emerge stronger as a nation.
The January 6th. investigation. Supreme Court rulings. Inflation. There’s no question the U.S. is being tested on a number of fronts, including credibility. Is there a tipping point where these political tests jeopardize financial markets and their integrity? On this week’s episode, Tom and Dylan address the challenges we face today and why it is we’ll emerge stronger as a nation.
We have shown many times that implied volatility and the S&P 500 are inversely correlated. How does implied volatility correlate with the price of other assets like oil, gold, and more. Join Pete and Anton as they discuss the correlation of price and implied volatility in different futures products.
We have shown many times that implied volatility and the S&P 500 are inversely correlated. How does implied volatility correlate with the price of other assets like oil, gold, and more. Join Pete and Anton as they discuss the correlation of price and implied volatility in different futures products.
Futures trading is primarily done with a short-term time horizon in mind, as derivatives traders use their leverage to enhance returns on strategies like day trading without taking on long-term risks that leverage can pose. Active traders often use Micro S&P 500 (MES) futures or Small Technology (STIX) futures to gain access to the stock market for a lower cost in an attempt to produce large returns from relatively small movements.Experienced futures traders Katie and Frank show you some examples of futures products before applying one of the most popular strategies out there - day trading using standard deviations.
Futures trading is primarily done with a short-term time horizon in mind, as derivatives traders use their leverage to enhance returns on strategies like day trading without taking on long-term risks that leverage can pose. Active traders often use Micro S&P 500 (MES) futures or Small Technology (STIX) futures to gain access to the stock market for a lower cost in an attempt to produce large returns from relatively small movements.Experienced futures traders Katie and Frank show you some examples of futures products before applying one of the most popular strategies out there - day trading using standard deviations.
Ratio spreads and broken wing butterflies have embedded debit spreads, which means we have added potential profit kickers if they're ITM at expiration on the short strike - having too much time left until expiration can prevent these spreads from appreciating though - the tastytrade crew looks at different examples of entry points, and why credit received up front vs spread width is an important indicator of directional lean.
Ratio spreads and broken wing butterflies have embedded debit spreads, which means we have added potential profit kickers if they're ITM at expiration on the short strike - having too much time left until expiration can prevent these spreads from appreciating though - the tastytrade crew looks at different examples of entry points, and why credit received up front vs spread width is an important indicator of directional lean.
Liz and Jenny put their own unique spin on the segment. They take a look at 10 viewer's assumptions and create high probability trades using less capital.
Liz and Jenny put their own unique spin on the segment. They take a look at 10 viewer's assumptions and create high probability trades using less capital.
Liz and Jenny talk about the move in the cruise lines. They look for an earnings trade in WBA. A viewer is looking for a bearish trade in BMY, so Liz and Jenny compare a long put debit spread to a short call credit spread. They also look at put zebra.
Liz and Jenny talk about the move in the cruise lines. They look for an earnings trade in WBA. A viewer is looking for a bearish trade in BMY, so Liz and Jenny compare a long put debit spread to a short call credit spread. They also look at put zebra.
Dr. Adam Elshafei is the Founder & CEO of Aesthetica in Chicago and Cosmesurge located in Dubai. Both are rejuvenation clinics for men and women. Their goal is to help clients achieve natural and sustainable results using the safest methods and techniques. Their signature procedures are non-surgical rhinoplasty, full face rejuvenation, and non-surgical minimally invasive treatments, among other services. Dr. Elshafei has won several awards, including Top 100 Aesthetic Injectors in America, as determined by his peer nominations, and voted on by patients.
Dr. Adam Elshafei is the Founder & CEO of Aesthetica in Chicago and Cosmesurge located in Dubai. Both are rejuvenation clinics for men and women. Their goal is to help clients achieve natural and sustainable results using the safest methods and techniques. Their signature procedures are non-surgical rhinoplasty, full face rejuvenation, and non-surgical minimally invasive treatments, among other services. Dr. Elshafei has won several awards, including Top 100 Aesthetic Injectors in America, as determined by his peer nominations, and voted on by patients.
Volatility is the primary driver of option premium. Even though the Black-Scholes model assumes constant volatility, that doesn't stop calculus from examining what happens as volatility changes. Today, Jacob joins Tom and Tony to go over some of the lesser used Greeks and highlight when they come to the forefront and what we can expect in those situations.
Volatility is the primary driver of option premium. Even though the Black-Scholes model assumes constant volatility, that doesn't stop calculus from examining what happens as volatility changes. Today, Jacob joins Tom and Tony to go over some of the lesser used Greeks and highlight when they come to the forefront and what we can expect in those situations.
Due to the unique nature of the VXX, its price has been in a downtrend over 80% of the time. So would selling the VXX since its inception have been the greatest short of all time?Join Tom and Tony as they discuss whether shorting VXX is a bulletproof trading idea.
Due to the unique nature of the VXX, its price has been in a downtrend over 80% of the time. So would selling the VXX since its inception have been the greatest short of all time?Join Tom and Tony as they discuss whether shorting VXX is a bulletproof trading idea.
Tokenomics is simply the application of economics to the crypto markets. It takes into account the factors that determine the supply and demand characteristics of a cryptocurrency. The supply side only cares about the number of tokens outstanding, the release schedule of tokens, and the total supply possible. The demand side is far more in depth, with a focus on building organic demand to ensure the long term success of the project.
Tokenomics is simply the application of economics to the crypto markets. It takes into account the factors that determine the supply and demand characteristics of a cryptocurrency. The supply side only cares about the number of tokens outstanding, the release schedule of tokens, and the total supply possible. The demand side is far more in depth, with a focus on building organic demand to ensure the long term success of the project.
China cuts travel quarantine period in half. GS, WFC, BAC and C boost divs after stress tests. IPO listings drought holding back Instacart & Reddit.
China cuts travel quarantine period in half. GS, WFC, BAC and C boost divs after stress tests. IPO listings drought holding back Instacart & Reddit.
There are a number of benefits to selling options, but the biggest one might be the buffer that you’re able to build between the current stock price and the strike price of the option. This region offers protection against stock moves against you, which also indirectly makes any adjustments you consider easier to implement because the position will be absorbing the initial moves of the stock well.[Have you seen our BRAND NEW CRASH COURSE on Rolling?
There are a number of benefits to selling options, but the biggest one might be the buffer that you’re able to build between the current stock price and the strike price of the option. This region offers protection against stock moves against you, which also indirectly makes any adjustments you consider easier to implement because the position will be absorbing the initial moves of the stock well.[Have you seen our BRAND NEW CRASH COURSE on Rolling?
Eurodollar futures present one of the most popular benchmarks for short-term interest rates, and they're currently showing an inversion. Frank helps define this nuanced market, and he goes on to compare it to US Treasuries to not only flesh out the product but also show a unique trading opportunity based in a yield curve inversion.Frank covers definitions, projections, and even forward curves in his rigorous description of the Eurodollar market, and he concludes the segment with a practical first trade in what might be a new product for you.
Eurodollar futures present one of the most popular benchmarks for short-term interest rates, and they're currently showing an inversion. Frank helps define this nuanced market, and he goes on to compare it to US Treasuries to not only flesh out the product but also show a unique trading opportunity based in a yield curve inversion.Frank covers definitions, projections, and even forward curves in his rigorous description of the Eurodollar market, and he concludes the segment with a practical first trade in what might be a new product for you.
Both Nick and Mike placed earnings diagonal spreads in NKE using the same long option, but different short options. Today they compare and contrast the trades after the announcement to show the difference in P/L and greek exposure between the two setups.
Tune in to learn more!
Both Nick and Mike placed earnings diagonal spreads in NKE using the same long option, but different short options. Today they compare and contrast the trades after the announcement to show the difference in P/L and greek exposure between the two setups.
Tune in to learn more!
Liz and Jenny finish their July expiration roll it, hold it, close it. They change their zebra in DocuSign to a short ITM put. They talk about reducing cost basis in SOFI and roll Pinterest out in time.
Liz and Jenny finish their July expiration roll it, hold it, close it. They change their zebra in DocuSign to a short ITM put. They talk about reducing cost basis in SOFI and roll Pinterest out in time.
Liz and Jenny answer live viewer tweets. They come up with a new trade in Snap by buying an earning's set-up calendar and selling an OTM put. They also bring back the free long trade in Nike and compare it to a ratio spread.
Liz and Jenny answer live viewer tweets. They come up with a new trade in Snap by buying an earning's set-up calendar and selling an OTM put. They also bring back the free long trade in Nike and compare it to a ratio spread.
At tastytrade, we always discuss the performance of SPY strangles. Many people wonder, how does this strategy perform in other assets? Today, Tom and Tony take a look at how 25∆ strangles in TLT have performed since 2005 and 2021.
At tastytrade, we always discuss the performance of SPY strangles. Many people wonder, how does this strategy perform in other assets? Today, Tom and Tony take a look at how 25∆ strangles in TLT have performed since 2005 and 2021.
The level of volatility is perhaps the most important feature of the market to tastytraders. Adapting our trading mechanics to different volatility environments is a key step to staying active in the market and capitalizing on opportunities to sell premium. Today, Tom and Tony look at the data on how the relationship between strikes and deltas changes as volatility increases.
The level of volatility is perhaps the most important feature of the market to tastytraders. Adapting our trading mechanics to different volatility environments is a key step to staying active in the market and capitalizing on opportunities to sell premium. Today, Tom and Tony look at the data on how the relationship between strikes and deltas changes as volatility increases.
Victor joins Tom and Tony to discuss meme stocks and positive drift (which Tom feels is the standard, so we are always in a bear market). Victor's crazy BIG FAT WALLET (Is this an aging Millennial thing?), and Tom doesn't understand the "Diamond Hands" term (often used in cryptocurrency trading and means hold, hold, hold) because he has no mentality for managing a passive portfolio. What does that strategy look like for those considered "Diamond Hands" investors? After all, isn't everything about sell, sell, sell, so you don't take a loss? Tune in and find out.
Victor joins Tom and Tony to discuss meme stocks and positive drift (which Tom feels is the standard, so we are always in a bear market). Victor's crazy BIG FAT WALLET (Is this an aging Millennial thing?), and Tom doesn't understand the "Diamond Hands" term (often used in cryptocurrency trading and means hold, hold, hold) because he has no mentality for managing a passive portfolio. What does that strategy look like for those considered "Diamond Hands" investors? After all, isn't everything about sell, sell, sell, so you don't take a loss? Tune in and find out.
Energy down two weeks in a row; Dollar dippage. End of Quarter dispersion coming? Showdown at the November FOMC meeting.
Energy down two weeks in a row; Dollar dippage. End of Quarter dispersion coming? Showdown at the November FOMC meeting.
Calendar Spreads can be great strategies to utilize in low volatility environments. Low IV Options Strategies while slower moving in nature, they can take a while to reach a given profit target. But as long as you pay special attention to the extrinsic value in the front month relative to the total debit paid, you can effectively position yourself to be profitable. Have you seen our BRAND NEW CRASH COURSE on Rolling?
Calendar Spreads can be great strategies to utilize in low volatility environments. Low IV Options Strategies while slower moving in nature, they can take a while to reach a given profit target. But as long as you pay special attention to the extrinsic value in the front month relative to the total debit paid, you can effectively position yourself to be profitable. Have you seen our BRAND NEW CRASH COURSE on Rolling?
Options and futures can help you assign probabilities to different events occurring in markets like interest rates. Experienced derivatives traders Mike and Frank show you how Fed Funds Futures (ZQ) are used to project what the Fed will do to interest rates by certain dates. Then, they talk about how probabilities are dynamics and how the highest-probability outcome does not necessarily always occur.Follow Mike and Frank into the world of interest rates and see if you can spot some inefficiencies to trade using Small 2YR Yield Futures (S2Y).
Options and futures can help you assign probabilities to different events occurring in markets like interest rates. Experienced derivatives traders Mike and Frank show you how Fed Funds Futures (ZQ) are used to project what the Fed will do to interest rates by certain dates. Then, they talk about how probabilities are dynamics and how the highest-probability outcome does not necessarily always occur.Follow Mike and Frank into the world of interest rates and see if you can spot some inefficiencies to trade using Small 2YR Yield Futures (S2Y).
We can gather a lot of information from the earnings expiration expected move and how that compares to further-dated cycles. Today the OTC Live crew takes a look at NKE and MU and explains how there is so much IV-based premium in the weekly cycle compared to the further out monthly cycles, and what we can expect IV% to drop to after the announcement is made.
Tune in to learn more with a live Q&A as well!
We can gather a lot of information from the earnings expiration expected move and how that compares to further-dated cycles. Today the OTC Live crew takes a look at NKE and MU and explains how there is so much IV-based premium in the weekly cycle compared to the further out monthly cycles, and what we can expect IV% to drop to after the announcement is made.
Tune in to learn more with a live Q&A as well!
James joins Liz as they cover all 8 of the trade ideas that are coming in hot into your inbox. The focus on UNG and look at bullish, bearish, and neutral trade ideas in this natural gas ETF.
James joins Liz as they cover all 8 of the trade ideas that are coming in hot into your inbox. The focus on UNG and look at bullish, bearish, and neutral trade ideas in this natural gas ETF.
Anton joins Liz as they continue their discussion on buying power reduction and how it can change during the lifecycle of the trade.
Anton joins Liz as they continue their discussion on buying power reduction and how it can change during the lifecycle of the trade.
Five Iron Golf are urban golf centers that offer a unique mixture of golf & entertainment, making the game more inclusive and accessible to golfers of all levels, and people who just want to have fun. With 13 locations currently across the country, it is one of the fastest-growing themed entertainment centers in the U.S. Five iron has quickly reshaped urban golf culture. For the serious golfer, they host best-in-class simulators, Trackman lesson studios, access to teaching professionals, practice time, leagues, club storage, showers, and top-of-the-line golf clubs that are free to use during your time at Five Iron. Jared Solomon is the CEO. Before joining Five Iron, he never played golf before. Now he's an avid golfer and belongs to a country club near his home in New York.
Five Iron Golf are urban golf centers that offer a unique mixture of golf & entertainment, making the game more inclusive and accessible to golfers of all levels, and people who just want to have fun. With 13 locations currently across the country, it is one of the fastest-growing themed entertainment centers in the U.S. Five iron has quickly reshaped urban golf culture. For the serious golfer, they host best-in-class simulators, Trackman lesson studios, access to teaching professionals, practice time, leagues, club storage, showers, and top-of-the-line golf clubs that are free to use during your time at Five Iron. Jared Solomon is the CEO. Before joining Five Iron, he never played golf before. Now he's an avid golfer and belongs to a country club near his home in New York.
We’ve spent much time this year discussing the importance of diversification, particularly when we see the drawdowns in the market.Financial advisors have been advocating for asset allocation, with a more recent focus on international diversification as means of reducing risk and potentially taking advantage of growth opportunities. Emerging markets offer the potential for greater growth as they further develop, and developed markets offer potential diversification since they are not always impacted by the same events as the U.S.In 2022, have international stocks accomplished either of these goals? Should investors go abroad when looking for stocks, or should they just stay home?Join Tom and Tony to find out!
We’ve spent much time this year discussing the importance of diversification, particularly when we see the drawdowns in the market.Financial advisors have been advocating for asset allocation, with a more recent focus on international diversification as means of reducing risk and potentially taking advantage of growth opportunities. Emerging markets offer the potential for greater growth as they further develop, and developed markets offer potential diversification since they are not always impacted by the same events as the U.S.In 2022, have international stocks accomplished either of these goals? Should investors go abroad when looking for stocks, or should they just stay home?Join Tom and Tony to find out!
At tastytrade, one of the core components of our management strategy is to manage our positions, especially the undefined-risk positions at 21 DTE in the expiration cycle. While doing this does mean that we forgo the increased theta decay that occurs closer to the expiration, it also means that we avoid the increased gamma risk that occurs closer to expiration. And given our core philosophy of focusing on duration over direction, we like that trade.Have you seen our BRAND NEW CRASH COURSE on Rolling?
At tastytrade, one of the core components of our management strategy is to manage our positions, especially the undefined-risk positions at 21 DTE in the expiration cycle. While doing this does mean that we forgo the increased theta decay that occurs closer to the expiration, it also means that we avoid the increased gamma risk that occurs closer to expiration. And given our core philosophy of focusing on duration over direction, we like that trade.Have you seen our BRAND NEW CRASH COURSE on Rolling?
我们已经知道波动率偏斜三种主要形态，分别是波动率微笑（没有偏斜），下方偏斜和上方偏斜。那么知道这几种偏斜对我们实际交易操作又有什么作用呢？我们应该如何利用偏斜来增加我们优势？There are three types of volatility skew: volatility smile (basically no skew), put skew, and call skew. So what’s the point of understanding these skews? How can we apply these to our tradings?
Trading bond futures has very little to do with the concept of bonds, and everything to do with changing market interest rates.Why are bond prices and rates inversely related? Similar to relationship between IV and option prices, it is the option price that determines the IV, not the other way around. Why? It is the option that is tradable, not IV… IV becomes tradable by way of an options market. Bonds and rates are the same. Rates come from a tradable bond market, not the other way around.Understanding this makes it easier to understand why bonds and rates are inversely related as well as why longer term bonds are more volatile than short term bonds.
Trading bond futures has very little to do with the concept of bonds, and everything to do with changing market interest rates.Why are bond prices and rates inversely related? Similar to relationship between IV and option prices, it is the option price that determines the IV, not the other way around. Why? It is the option that is tradable, not IV… IV becomes tradable by way of an options market. Bonds and rates are the same. Rates come from a tradable bond market, not the other way around.Understanding this makes it easier to understand why bonds and rates are inversely related as well as why longer term bonds are more volatile than short term bonds.
Naked options strategies consist of either buying or selling call or put options, and they can be viewed as some of the simplest strategies for those getting started in options. For example, if you think a market will move higher but don't want full risk of the stock shares or futures contract, you can simply buy a call.Mikey and Frank give you the full rundown on long vs. short and call vs. put, and then they apply their findings to the Small US Dollar futures (SFX) by showing the risk-reward profile of buying or selling an out-the-money call.
Naked options strategies consist of either buying or selling call or put options, and they can be viewed as some of the simplest strategies for those getting started in options. For example, if you think a market will move higher but don't want full risk of the stock shares or futures contract, you can simply buy a call.Mikey and Frank give you the full rundown on long vs. short and call vs. put, and then they apply their findings to the Small US Dollar futures (SFX) by showing the risk-reward profile of buying or selling an out-the-money call.
Join the OTC Live crew for a full hour of questions ranging from buying leaps, earnings strategies, how to determine a trade strategy given certain stock information, and much more!
Join the OTC Live crew for a full hour of questions ranging from buying leaps, earnings strategies, how to determine a trade strategy given certain stock information, and much more!
It is 21 Days until expiration so Liz and Jenny play their favorite game roll it, hold it, or close it with their account.
It is 21 Days until expiration so Liz and Jenny play their favorite game roll it, hold it, or close it with their account.
Liz and Jenny take live tweets and answer viewer email about turning an ITM call into a ZEBRA.
Liz and Jenny take live tweets and answer viewer email about turning an ITM call into a ZEBRA.
Many people associate raising interest rates with uncertainty in the market. Is there any correlation between interest rates and implied volatility? And if so, is that correlation tradable? Join Tom and Tony as they discuss the relationship between interest rates and implied volatility.
Many people associate raising interest rates with uncertainty in the market. Is there any correlation between interest rates and implied volatility? And if so, is that correlation tradable? Join Tom and Tony as they discuss the relationship between interest rates and implied volatility.
On this episode we explain how to use a decentralize exchange, liquidity pools and the basics of automated market makers.
On this episode we explain how to use a decentralize exchange, liquidity pools and the basics of automated market makers.
Powell plays with words at House testimony. Digital dollar backed by the government. Record stimmy + snarled supply chain + hot jobs market = inflation.
Powell plays with words at House testimony. Digital dollar backed by the government. Record stimmy + snarled supply chain + hot jobs market = inflation.
When volatility is high in the markets, we feel as tastytraders there is more opportunity for success. Still, however, higher volatility does mean that prices will move more rapidly and conditions will change more quickly. As a result, here are two keys to improve your trading in highly volatile markets, and keep your portfolio on track to reach its goals. Have you seen our BRAND NEW CRASH COURSE on Rolling?
When volatility is high in the markets, we feel as tastytraders there is more opportunity for success. Still, however, higher volatility does mean that prices will move more rapidly and conditions will change more quickly. As a result, here are two keys to improve your trading in highly volatile markets, and keep your portfolio on track to reach its goals. Have you seen our BRAND NEW CRASH COURSE on Rolling?
Losing options trades are often much more difficult to manage than winning trades; the former can demand strike changes, rolling expirations, and just a lot more attention than simply putting on a trade only to take it off for a profit. Frank dissects his recent trade in Small US Dollar (SFX) options as it went from bad to worse but then retained its profitability.Frank - an experienced derivatives trader - sold the at-the-money straddle in SFX only to find the market rallying beyond his upside breakeven and onto multi-year highs. Find out how he defended this losing trade and brought it back to profits.
Losing options trades are often much more difficult to manage than winning trades; the former can demand strike changes, rolling expirations, and just a lot more attention than simply putting on a trade only to take it off for a profit. Frank dissects his recent trade in Small US Dollar (SFX) options as it went from bad to worse but then retained its profitability.Frank - an experienced derivatives trader - sold the at-the-money straddle in SFX only to find the market rallying beyond his upside breakeven and onto multi-year highs. Find out how he defended this losing trade and brought it back to profits.
Anton joins Liz as they walk through how to ratchet up the stock replacement strategy. They also finish the discussion on PBR for jade lizards.
Check out Liz and Jenny's tutorial about Zero Extrinsic Back RAtio and learn more about the ZEBRA ratchet.
Anton joins Liz as they walk through how to ratchet up the stock replacement strategy. They also finish the discussion on PBR for jade lizards.
Check out Liz and Jenny's tutorial about Zero Extrinsic Back RAtio and learn more about the ZEBRA ratchet.
Anton joins Liz as they discuss the buying power reduction of different options in different underlying's.
Anton joins Liz as they discuss the buying power reduction of different options in different underlying's.
Target-date funds gradually rebalance and reallocate assets as investors get closer to retirement, shifting from riskier investments (stocks) to more conservative investments (bonds).According to Morningstar, roughly $3.3 trillion* is invested in target date mutual funds, and the majority of these funds are held in 401 (k) plans.Thought to be a “set it and forget it” strategy for retirement, has this year changed investors’ perception of these types of funds?Join Tom and Tony to find out!
Target-date funds gradually rebalance and reallocate assets as investors get closer to retirement, shifting from riskier investments (stocks) to more conservative investments (bonds).According to Morningstar, roughly $3.3 trillion* is invested in target date mutual funds, and the majority of these funds are held in 401 (k) plans.Thought to be a “set it and forget it” strategy for retirement, has this year changed investors’ perception of these types of funds?Join Tom and Tony to find out!
Loosely inspired by biological neural networks, artificial neural networks (ANNs) are powerful statistical models. With the potential to recognize subtle structure in data, neural networks are commonly used for financial forecasting, such as volatility forecasting. Today we’ll introduce neural networks and discuss their differences with classical volatility models. If you have requests for any topics, reach out to Julia (@FinancePhoton) or Eddie (@ERajcevic11) on Twitter! You can also submit ideas through this form: https://www.tastytrade.com/alp
Loosely inspired by biological neural networks, artificial neural networks (ANNs) are powerful statistical models. With the potential to recognize subtle structure in data, neural networks are commonly used for financial forecasting, such as volatility forecasting. Today we’ll introduce neural networks and discuss their differences with classical volatility models. If you have requests for any topics, reach out to Julia (@FinancePhoton) or Eddie (@ERajcevic11) on Twitter! You can also submit ideas through this form: https://www.tastytrade.com/alp
What's a stock fund? What's a bond fund? What's a bond future? In this episode of Splash Into Futures, Anton and Pete discuss the differences and similarities between each one and the risk profile of each.
What's a stock fund? What's a bond fund? What's a bond future? In this episode of Splash Into Futures, Anton and Pete discuss the differences and similarities between each one and the risk profile of each.
What's a stock fund? What's a bond fund? What's a bond future? In this episode of Splash Into Futures, Anton and Pete discuss the differences and similarities between each one and the risk profile of each.
What's a stock fund? What's a bond fund? What's a bond future? In this episode of Splash Into Futures, Anton and Pete discuss the differences and similarities between each one and the risk profile of each.
Pairs trading is an active strategy that attempts to profit from the contracting or expanding relationship between two similar assets. The first step in finding a pairs trading opportunity is simply making sure the two markets you're comparing are indeed similar. You can do this by calculating correlations between historical prices or simply looking at charts and intuiting the answer. For example, airline stocks like UAL and AAL are likely to have a very high correlation given that they operate in the same sector; same goes for historical price action in stocks and interest rates - when one moves higher, the other tends to follow.The second step in pairs trading is finding the opportunity between these similar markets and acting on it. Frank explores the expanding divergence between stocks and interest rates over the last year, and he attempts to profit from their potential return to normal in the future by buying a beat-up stock market using Small Technology (STIX) futures and selling interest rates at their highs using Small 10YR Treasury Yield (S10Y) futures.
Pairs trading is an active strategy that attempts to profit from the contracting or expanding relationship between two similar assets. The first step in finding a pairs trading opportunity is simply making sure the two markets you're comparing are indeed similar. You can do this by calculating correlations between historical prices or simply looking at charts and intuiting the answer. For example, airline stocks like UAL and AAL are likely to have a very high correlation given that they operate in the same sector; same goes for historical price action in stocks and interest rates - when one moves higher, the other tends to follow.The second step in pairs trading is finding the opportunity between these similar markets and acting on it. Frank explores the expanding divergence between stocks and interest rates over the last year, and he attempts to profit from their potential return to normal in the future by buying a beat-up stock market using Small Technology (STIX) futures and selling interest rates at their highs using Small 10YR Treasury Yield (S10Y) futures.
Pairs trading is an active strategy that attempts to profit from the contracting or expanding relationship between two similar assets. The first step in finding a pairs trading opportunity is simply making sure the two markets you're comparing are indeed similar. You can do this by calculating correlations between historical prices or simply looking at charts and intuiting the answer. For example, airline stocks like UAL and AAL are likely to have a very high correlation given that they operate in the same sector; same goes for historical price action in stocks and interest rates - when one moves higher, the other tends to follow.The second step in pairs trading is finding the opportunity between these similar markets and acting on it. Frank explores the expanding divergence between stocks and interest rates over the last year, and he attempts to profit from their potential return to normal in the future by buying a beat-up stock market using Small Technology (STIX) futures and selling interest rates at their highs using Small 10YR Treasury Yield (S10Y) futures.
Pairs trading is an active strategy that attempts to profit from the contracting or expanding relationship between two similar assets. The first step in finding a pairs trading opportunity is simply making sure the two markets you're comparing are indeed similar. You can do this by calculating correlations between historical prices or simply looking at charts and intuiting the answer. For example, airline stocks like UAL and AAL are likely to have a very high correlation given that they operate in the same sector; same goes for historical price action in stocks and interest rates - when one moves higher, the other tends to follow.The second step in pairs trading is finding the opportunity between these similar markets and acting on it. Frank explores the expanding divergence between stocks and interest rates over the last year, and he attempts to profit from their potential return to normal in the future by buying a beat-up stock market using Small Technology (STIX) futures and selling interest rates at their highs using Small 10YR Treasury Yield (S10Y) futures.
Liz and Jenny take a look at 10 viewer assumptions and create high probability trades with capital efficiency in mind. They look at lizards, ZEBRAs and even some long option plays.
Liz and Jenny take a look at 10 viewer assumptions and create high probability trades with capital efficiency in mind. They look at lizards, ZEBRAs and even some long option plays.
Liz and Jenny take live tweets @#lizjny. Liz wants their audience to send in their best dad jokes so she can make her father-in-law laugh! They also look at earnings trades and adjust CLF.
Have questions? Check out Liz and Jenny's tutorial on Rad Zebra strategies.
Liz and Jenny take live tweets @#lizjny. Liz wants their audience to send in their best dad jokes so she can make her father-in-law laugh! They also look at earnings trades and adjust CLF.
Have questions? Check out Liz and Jenny's tutorial on Rad Zebra strategies.
Prices are rising and inflation is a hot issue. Everyone wants to know how much inflation there has been and how much to expect, but describing inflation as a single number turns out to be a completely impossible goal. Today, Jacob joins Tom and Tony to go over the various pitfalls that attempts to describe inflation succumb to and discuss the variety of ways to think about and understand inflation.
Prices are rising and inflation is a hot issue. Everyone wants to know how much inflation there has been and how much to expect, but describing inflation as a single number turns out to be a completely impossible goal. Today, Jacob joins Tom and Tony to go over the various pitfalls that attempts to describe inflation succumb to and discuss the variety of ways to think about and understand inflation.
The BPR (Buying Power Requirement) is priced based on the position’s risk level. The higher the risk, the higher the BPR.Many factors can impact a position’s BPR, so today, let’s look at a case study of how the BPR of a naked put changes in both up and down markets. Join Tom and Tony as they analyze an interesting case study.
The BPR (Buying Power Requirement) is priced based on the position’s risk level. The higher the risk, the higher the BPR.Many factors can impact a position’s BPR, so today, let’s look at a case study of how the BPR of a naked put changes in both up and down markets. Join Tom and Tony as they analyze an interesting case study.
If you wait to buy groceries until you’re out of food, you’re guaranteeing at some point you’ll be hungry and probably shopping at the worst possible time. That’s how the Fed addresses inflation. Wait until inflation is already an issue and then make adjustments to interest rates. Because of that, we are trapped in a cycle that addresses symptoms, not the underlying problem. On this week’s episode, Tom and Dylan discuss alternative ways of dealing with inflation more proactively.
If you wait to buy groceries until you’re out of food, you’re guaranteeing at some point you’ll be hungry and probably shopping at the worst possible time. That’s how the Fed addresses inflation. Wait until inflation is already an issue and then make adjustments to interest rates. Because of that, we are trapped in a cycle that addresses symptoms, not the underlying problem. On this week’s episode, Tom and Dylan discuss alternative ways of dealing with inflation more proactively.
On this episode we explain how decentralized crypto exchanges work, the market for these protocols, and the ways individual investors can use decentralized exchanges.
On this episode we explain how decentralized crypto exchanges work, the market for these protocols, and the ways individual investors can use decentralized exchanges.
Arguably the most important concept a new option trader has to understand early on is the idea of moneyness. Essentially the moneyness of an option controls the potential of both the intrinsic value and the extrinsic value in the option’s price. And while the short side of the option contract wants both intrinsic and extrinsic to be as low as possible, the long side of the contract wants both intrinsic and extrinsic to be as high as possible.Have you seen our BRAND NEW CRASH COURSE on Rolling?
Arguably the most important concept a new option trader has to understand early on is the idea of moneyness. Essentially the moneyness of an option controls the potential of both the intrinsic value and the extrinsic value in the option’s price. And while the short side of the option contract wants both intrinsic and extrinsic to be as low as possible, the long side of the contract wants both intrinsic and extrinsic to be as high as possible.Have you seen our BRAND NEW CRASH COURSE on Rolling?
FED Chair Jerome Powell's Congressional Testimony is coming. U.S. Inflation still at a record high, 75-bps rate hike a possibility in July? How's Canada's inflation rate faring?
Chris and Pete take a look at:
- The current state of US Treasury Yields (ZT, ZN) & Gold (GC)
- If the Long ES/Short NQ has run its course
- How the Russia-Ukraine conflict continues to impact the markets, the COVID situation in China, and where are commodities, currencies, and VOL & rates falling on today's market recap.
FED Chair Jerome Powell's Congressional Testimony is coming. U.S. Inflation still at a record high, 75-bps rate hike a possibility in July? How's Canada's inflation rate faring?
Chris and Pete take a look at:
- The current state of US Treasury Yields (ZT, ZN) & Gold (GC)
- If the Long ES/Short NQ has run its course
- How the Russia-Ukraine conflict continues to impact the markets, the COVID situation in China, and where are commodities, currencies, and VOL & rates falling on today's market recap.
The Fed primarily affects the Fed Funds Rate - a short-term interest rate benchmark in the US - but action taken on this rate can have widespread effects on US Treasury rates of varying durations. Frank maps out the influence of the Federal Reserve over interest rate markets, and he speaks to how this activity can also affect the stock market.Finally, Frank gives projections on where the Fed might be going with Fed Funds Rates in the future from futures prices on this instrument, and he shows you how to form an opinion on this projection before trading it in the interest rate futures market.
The Fed primarily affects the Fed Funds Rate - a short-term interest rate benchmark in the US - but action taken on this rate can have widespread effects on US Treasury rates of varying durations. Frank maps out the influence of the Federal Reserve over interest rate markets, and he speaks to how this activity can also affect the stock market.Finally, Frank gives projections on where the Fed might be going with Fed Funds Rates in the future from futures prices on this instrument, and he shows you how to form an opinion on this projection before trading it in the interest rate futures market.
When rolling strangles, you shift your risk profile and where you take on intrinsic value risk, but what happens with your greeks along the way?
Tune in to learn how greek exposure shifts from a neutral starting point in a strangle, to slightly bullish or bearish depending on the stock price moves and how we can offset the shifts in the greeks if we so desire.
When rolling strangles, you shift your risk profile and where you take on intrinsic value risk, but what happens with your greeks along the way?
Tune in to learn how greek exposure shifts from a neutral starting point in a strangle, to slightly bullish or bearish depending on the stock price moves and how we can offset the shifts in the greeks if we so desire.
Liz and Jenny close their /ZS position for a win and address the smart margin for futures options positions.
Liz and Jenny close their /ZS position for a win and address the smart margin for futures options positions.
When markets start to sell off and implied volatility expands, people will exclaim “buy the dip”. What are the realized 45-day returns at different volatility levels? Join Tom and Tony as they discuss expectations of returns of the S&P 500 based on different implied volatility environments.
When markets start to sell off and implied volatility expands, people will exclaim “buy the dip”. What are the realized 45-day returns at different volatility levels? Join Tom and Tony as they discuss expectations of returns of the S&P 500 based on different implied volatility environments.
Selling premium when IVR is high is the cornerstone of tasty mechanics. But what is "high" when it comes to IVR? Today, Tom and Tony check the data to see what qualifies as high IVR and how it differs for different classes of underlying.
Selling premium when IVR is high is the cornerstone of tasty mechanics. But what is "high" when it comes to IVR? Today, Tom and Tony check the data to see what qualifies as high IVR and how it differs for different classes of underlying.
Join Jermal and “Dr. Data” Rechenthin as they discuss why there's no better time to begin the journey to financial freedom than now with a few simple options strategies.
Join Jermal and “Dr. Data” Rechenthin as they discuss why there's no better time to begin the journey to financial freedom than now with a few simple options strategies.
Whenever you consider an undefined-risk strategy, it might be useful to get in the habit of taking a look at the premium efficiency on the trade. Doing so will allow you to see how efficiently your capital is being used, and thus it might lead to making better overall decisions in terms of the trades that you take the trades that you don’t take.Have you seen our BRAND NEW CRASH COURSE on Rolling?
Whenever you consider an undefined-risk strategy, it might be useful to get in the habit of taking a look at the premium efficiency on the trade. Doing so will allow you to see how efficiently your capital is being used, and thus it might lead to making better overall decisions in terms of the trades that you take the trades that you don’t take.Have you seen our BRAND NEW CRASH COURSE on Rolling?
Option-specific Implied Volatility Index in the implied volatility for each given strike. This volatility forms all other implied volatility metrics for the underlying. Join Anton as he dives into the inner workings of option-specific Implied Volatility Index.
Option-specific Implied Volatility Index in the implied volatility for each given strike. This volatility forms all other implied volatility metrics for the underlying. Join Anton as he dives into the inner workings of option-specific Implied Volatility Index.
Options trades can profit in many ways, but they can also lose in many ways. Thankfully, options strategies, especially ones incorporating short options, can be defended relatively easily. Experienced traders Mikey G. and Frank start out with a basic straddle strategy, give an example of how they can go wrong, and show you how to defend it.Find out what you can do with your losing options strategies using futures and options.
Options trades can profit in many ways, but they can also lose in many ways. Thankfully, options strategies, especially ones incorporating short options, can be defended relatively easily. Experienced traders Mikey G. and Frank start out with a basic straddle strategy, give an example of how they can go wrong, and show you how to defend it.Find out what you can do with your losing options strategies using futures and options.
We can use correlation to determine how relationships are formed over time between different products, but when volatility really picks up we can see correlations across the board get closer to 1.00.
Tune in to learn more with a live Q&A as well!
We can use correlation to determine how relationships are formed over time between different products, but when volatility really picks up we can see correlations across the board get closer to 1.00.
Tune in to learn more with a live Q&A as well!
Liz and Jenny manage their account through triple witching, take off as many positions as they can, and reply the capital.
Liz and Jenny take live tweets on the current market condition and trade ideas with high volatility.
Liz and Jenny take live tweets on the current market condition and trade ideas with high volatility.
Triple witching is when expiration for stock options, stock index futures, and stock index options contracts fall on the same day. Could this lead to an implied volatility expansion or contraction? Join Tom and Tony as they compare implied volatility and historical volatility during the week of triple witching, the week after, and the average week.
Triple witching is when expiration for stock options, stock index futures, and stock index options contracts fall on the same day. Could this lead to an implied volatility expansion or contraction? Join Tom and Tony as they compare implied volatility and historical volatility during the week of triple witching, the week after, and the average week.
Every country on the planet is battling inflation, which is leading central banks to raise rates. Join Tom, Tony and Jermal as they discuss the side effects of these hawkish actions on This Week in Stocks.
- Recent inflation readings force Fed’s hand on 75 bps hike.
- The 10- & 2-yr, 30- & 5-yr and 30- & 10-yr curves all inverted prior to Fed announcement.
- Global central banks copying the playbook: BOE, SNB
- Value of crypto market falls below $1 Trillion for first time since Feb ‘21.
- Dow broke 30,000 for first time since Jan 2021.
Every country on the planet is battling inflation, which is leading central banks to raise rates. Join Tom, Tony and Jermal as they discuss the side effects of these hawkish actions on This Week in Stocks.
- Recent inflation readings force Fed’s hand on 75 bps hike.
- The 10- & 2-yr, 30- & 5-yr and 30- & 10-yr curves all inverted prior to Fed announcement.
- Global central banks copying the playbook: BOE, SNB
- Value of crypto market falls below $1 Trillion for first time since Feb ‘21.
- Dow broke 30,000 for first time since Jan 2021.
Victor Jones is the guest host on today's segment of The Prediction Trade. A longtime prediction market trader himself, Victor has strong opinions about a variety of topics, and he shares them all. Kalshi’s interest rates and GDP markets, PredictIt’s House control and presidential nominee markets take center stage, and there’s plenty of Luckbox and long shot trades to go around.
Victor Jones is the guest host on today's segment of The Prediction Trade. A longtime prediction market trader himself, Victor has strong opinions about a variety of topics, and he shares them all. Kalshi’s interest rates and GDP markets, PredictIt’s House control and presidential nominee markets take center stage, and there’s plenty of Luckbox and long shot trades to go around.
When we see the market turn lower, we tend to see a flight to quality. This is true in the equity market and similarly true in the crypto market, where the quality is referring to bitcoin. While there are no truly "defensive" assets in a generally offensive asset class, historically bitcoin has offered the greatest amount of protection in downtrends. And before we think about the next bull market, we need to consider any potential headwinds that crypto may face, and what may signal potential positive returns.
When we see the market turn lower, we tend to see a flight to quality. This is true in the equity market and similarly true in the crypto market, where the quality is referring to bitcoin. While there are no truly "defensive" assets in a generally offensive asset class, historically bitcoin has offered the greatest amount of protection in downtrends. And before we think about the next bull market, we need to consider any potential headwinds that crypto may face, and what may signal potential positive returns.
84% chance of 75 bps hike in July. BOE hikes 25 bps; SNB hikes 50 bps - first hike in 15 yrs. Economic data continues to worsen.
84% chance of 75 bps hike in July. BOE hikes 25 bps; SNB hikes 50 bps - first hike in 15 yrs. Economic data continues to worsen.
An Inverted Strangle is an adjustment strategy that we use often to defend positions gone wrong. In going inverted, however, it’s always a challenge to choose the right strike on the inversion. Going right to the new at-the-money strike does maximize extrinsic value, but it might also lock in a sizable loss for that cycle. So today, we weigh the gimmes and the gotchas of inverted strike selection. And we’re live on YouTube, so we spend the bulk of our time answering YOUR QUESTIONS.Have you seen our BRAND NEW CRASH COURSE on Rolling?
An Inverted Strangle is an adjustment strategy that we use often to defend positions gone wrong. In going inverted, however, it’s always a challenge to choose the right strike on the inversion. Going right to the new at-the-money strike does maximize extrinsic value, but it might also lock in a sizable loss for that cycle. So today, we weigh the gimmes and the gotchas of inverted strike selection. And we’re live on YouTube, so we spend the bulk of our time answering YOUR QUESTIONS.Have you seen our BRAND NEW CRASH COURSE on Rolling?
Pete and James discuss the market's digestion of the Fed rate hike, as well as the rate hikes out of the UK and Switzerland. Their main topic compares the euro against the pound and how traders can eliminate a dollar component by pairs trading futures. They breakdown several ratios of how traders can look to build a pairs trade.
Pete and James discuss the market's digestion of the Fed rate hike, as well as the rate hikes out of the UK and Switzerland. Their main topic compares the euro against the pound and how traders can eliminate a dollar component by pairs trading futures. They breakdown several ratios of how traders can look to build a pairs trade.
The tastytrade crew offers their options trade ideas for the day! Mike buys a put calendar spread in ADBE for earnings
Nick sells a strangle in OXY
Tune in to learn more and a live Q&A as well!
The tastytrade crew offers their options trade ideas for the day! Mike buys a put calendar spread in ADBE for earnings
Nick sells a strangle in OXY
Tune in to learn more and a live Q&A as well!
Anton and Jenny discuss losing trades and taking losses. After looking at many possible adjustments, they decide to close the AMD position. They look for trade ideas for tastybites accounts and place a big lizard in Robin Hood.
Anton and Jenny discuss losing trades and taking losses. After looking at many possible adjustments, they decide to close the AMD position. They look for trade ideas for tastybites accounts and place a big lizard in Robin Hood.
Anton and Jenny discuss how everything correlates during big market down moves. They look at different currency positions, and close their bullish Japanese Yen trade. They also look at small dollar options and end the segment with an IWM jade lizard.
Anton and Jenny discuss how everything correlates during big market down moves. They look at different currency positions, and close their bullish Japanese Yen trade. They also look at small dollar options and end the segment with an IWM jade lizard.
Generally, SPY is not significantly more likely to experience a downday following an upday, and vice versa. However, if SPY experiences a large upday or downday, do these statistics change in a meaningful way? Join Tom and Tony as they discuss the contrarian approach following large moves.
Generally, SPY is not significantly more likely to experience a downday following an upday, and vice versa. However, if SPY experiences a large upday or downday, do these statistics change in a meaningful way? Join Tom and Tony as they discuss the contrarian approach following large moves.
Many of the services we utilize today are centralized services, whether it be Facebook or Google. Decentralization is the transfer of control and decision making from a central organization to a collective group of participants. Are there any inherent risks that come with centralization? Join Tom, Tony and Julia as they discuss the potential risks of centralization in regards to digital assets!If you have requests for any topics, reach out to Julia (@FinancePhoton) or Eddie (@ERajcevic11) on Twitter! You can also submit ideas through this form: https://www.tastytrade.com/alp.
Many of the services we utilize today are centralized services, whether it be Facebook or Google. Decentralization is the transfer of control and decision making from a central organization to a collective group of participants. Are there any inherent risks that come with centralization? Join Tom, Tony and Julia as they discuss the potential risks of centralization in regards to digital assets!If you have requests for any topics, reach out to Julia (@FinancePhoton) or Eddie (@ERajcevic11) on Twitter! You can also submit ideas through this form: https://www.tastytrade.com/alp.
Tony Vitale is the Founder & CEO of Vertical Grooves, which is a consumer electronics start-up that reimagines vintage audio design with modern technology using quality manufactured goods with premium materials. He talks about how he took over the floundering company and practically made it into an overnight success. The company is in a prime position to ride the wave of excitement in vinyl albums that have seen a year-over-year increase in sales over the last seven years. Their Floating Record vertical turntable has taken the country by storm, and their modern take on the gramophone was noticed by the Grammy Awards, who purchased them for each of their winners.
Tony Vitale is the Founder & CEO of Vertical Grooves, which is a consumer electronics start-up that reimagines vintage audio design with modern technology using quality manufactured goods with premium materials. He talks about how he took over the floundering company and practically made it into an overnight success. The company is in a prime position to ride the wave of excitement in vinyl albums that have seen a year-over-year increase in sales over the last seven years. Their Floating Record vertical turntable has taken the country by storm, and their modern take on the gramophone was noticed by the Grammy Awards, who purchased them for each of their winners.
Today Dr. Jim joins Errol as he takes us back through the building blocks of option trading. He explains everything you need to know about the two types of volatility that are considered as a trading strategy. Not only does Dr. Jim explain the "how", he also explains the "why".
Today Dr. Jim joins Errol as he takes us back through the building blocks of option trading. He explains everything you need to know about the two types of volatility that are considered as a trading strategy. Not only does Dr. Jim explain the "how", he also explains the "why".
Does a crash in asset prices mean the assets themselves are not good? Or can valuations simply get bid up in a frenzy and when those valuations fall it’s more a reflection of overpriced markets, not bad companies. Investors are debating the value of crypto assets and what the future of DeFi will look like. Tune in and listen as Tom and Dylan give their take on crypto and more.
Does a crash in asset prices mean the assets themselves are not good? Or can valuations simply get bid up in a frenzy and when those valuations fall it’s more a reflection of overpriced markets, not bad companies. Investors are debating the value of crypto assets and what the future of DeFi will look like. Tune in and listen as Tom and Dylan give their take on crypto and more.
Forward curves in futures products can be complicated to traders that are unfamiliar with them. It is crucial to understand the pricing of forward curves and what internal and external factors can affect them. In this episode, Pete and Anton dig deeper into forward curves in multiple products.
Forward curves in futures products can be complicated to traders that are unfamiliar with them. It is crucial to understand the pricing of forward curves and what internal and external factors can affect them. In this episode, Pete and Anton dig deeper into forward curves in multiple products.
Inflation fears and a hawkish Fed have the market for interest rate futures more volatile than it's been in years. Rates have shifted so much in recent trade that the US yield curve has actually gone inverted. Katie and Frank show you how to use Small Exchange futures to profit from a potential further inversion or a return to normal.Don't just learn about yield curve inversions, but trade them with our experienced futures traders Katie and Frank.
Inflation fears and a hawkish Fed have the market for interest rate futures more volatile than it's been in years. Rates have shifted so much in recent trade that the US yield curve has actually gone inverted. Katie and Frank show you how to use Small Exchange futures to profit from a potential further inversion or a return to normal.Don't just learn about yield curve inversions, but trade them with our experienced futures traders Katie and Frank.
Tune in to learn how to read an IV earnings crush, and why KR is a great example of front-loaded implied volatility in the weekly cycle.
Nick places a call diagonal spread and mike buys a straddle in JUL and sells weekly options against the straddle in KR
Tune in to learn how to read an IV earnings crush, and why KR is a great example of front-loaded implied volatility in the weekly cycle.
Nick places a call diagonal spread and mike buys a straddle in JUL and sells weekly options against the straddle in KR
Today is Wednesday, so it's What's Your Assumption, Liz and Jenny style. Liz and Jenny take viewer's assumptions and come up with trade ideas. Today they place jade lizards, big lizards, short puts, and put spreads.
Today is Wednesday, so it's What's Your Assumption, Liz and Jenny style. Liz and Jenny take viewer's assumptions and come up with trade ideas. Today they place jade lizards, big lizards, short puts, and put spreads.
Liz and Jenny take profits in Boeing and their recent yield curve position. They answer live viewer tweets and go over the order chains feature on the tastyworks platform. They talk about how to use this when deciding to hold or close positions.
Liz and Jenny take profits in Boeing and their recent yield curve position. They answer live viewer tweets and go over the order chains feature on the tastyworks platform. They talk about how to use this when deciding to hold or close positions.
When selecting strikes to sell options, it helps to have an idea what the average move for the underlying is like. But "the average" is misleading, and context can change what definition of average is relevant. Today, Jacob joins Tom and Tony to untangle different concepts of an average and see what the market views as the average move in light of the efficient market hypothesis.
When selecting strikes to sell options, it helps to have an idea what the average move for the underlying is like. But "the average" is misleading, and context can change what definition of average is relevant. Today, Jacob joins Tom and Tony to untangle different concepts of an average and see what the market views as the average move in light of the efficient market hypothesis.
The BPR (buying power requirement) is crucial to option traders because it is part of the calculation to get potential ROC.The option’s BPR calculation, especially for naked positions, is more complex than the stocks, but understanding the key components is sufficient for traders to measure the risks.Join Tom and Tony as they discuss the key components of a naked position’s BPR and why understanding it is important.
The BPR (buying power requirement) is crucial to option traders because it is part of the calculation to get potential ROC.The option’s BPR calculation, especially for naked positions, is more complex than the stocks, but understanding the key components is sufficient for traders to measure the risks.Join Tom and Tony as they discuss the key components of a naked position’s BPR and why understanding it is important.
With cryptocurrencies down double digits in recent weeks, many investors may be asking themselves why. Major digital lending platforms have faced liquidation issues as we've seen declines in the value of cryptos, leading to halts in withdrawals. These liquidity concerns aren't specific to the crypto market, as the macro environment has negatively impacted all risk assets. How will this impact crypto now and what may the future look like?Join Ryan and Eddie as they dive into it!
With cryptocurrencies down double digits in recent weeks, many investors may be asking themselves why. Major digital lending platforms have faced liquidation issues as we've seen declines in the value of cryptos, leading to halts in withdrawals. These liquidity concerns aren't specific to the crypto market, as the macro environment has negatively impacted all risk assets. How will this impact crypto now and what may the future look like?Join Ryan and Eddie as they dive into it!
Monday: SPY volume 161M, VIX volume 946k. More bearish hike? 50 bps or 75 bps. Crypto Winter having ripple effects.
Monday: SPY volume 161M, VIX volume 946k. More bearish hike? 50 bps or 75 bps. Crypto Winter having ripple effects.
Jermal and Frank dive into a losing futures trade to show you what it looks like while presenting three methods for defending a losing trade. Their methods range in aggressiveness from the short-term band-aid of selling a put to the long-term conclusion of taking a loss. The futures dudes use a short Small 10YR Yield (S10Y) futures trade as an example to show you how to sell options against the position, spread off the risk with another market, or simply take the loss and move on.Losing trades should not simply be blocked out of your mind, being proactive in defending a losing trade can help reduce losses in the short term and create profits in the long term.
Jermal and Frank dive into a losing futures trade to show you what it looks like while presenting three methods for defending a losing trade. Their methods range in aggressiveness from the short-term band-aid of selling a put to the long-term conclusion of taking a loss. The futures dudes use a short Small 10YR Yield (S10Y) futures trade as an example to show you how to sell options against the position, spread off the risk with another market, or simply take the loss and move on.Losing trades should not simply be blocked out of your mind, being proactive in defending a losing trade can help reduce losses in the short term and create profits in the long term.
When the VIX futures are in contango, most volatility products drag to zero over time. When VIX futures are in backwardation, these products tend to drift higher. Tune in to learn how strategic decisions depend on the curve of /VX futures, and how skew can play a role as well!
When the VIX futures are in contango, most volatility products drag to zero over time. When VIX futures are in backwardation, these products tend to drift higher. Tune in to learn how strategic decisions depend on the curve of /VX futures, and how skew can play a role as well!
Liz and Jenny place a broken wing butterfly in natural gas. They discuss ideal DTE when placing a ratio spread. They also look at Boeing and debate strangle vs. naked put.
Liz and Jenny place a broken wing butterfly in natural gas. They discuss ideal DTE when placing a ratio spread. They also look at Boeing and debate strangle vs. naked put.
Liz and Jenny answer live tweets. They discuss the move in natural gas. They talk about the yield curve and place a new trade using the small exchange products. They use the pairs trader and get long the /S30Y and sell the/S2Y.
Liz and Jenny answer live tweets. They discuss the move in natural gas. They talk about the yield curve and place a new trade using the small exchange products. They use the pairs trader and get long the /S30Y and sell the/S2Y.
Beta is the relationship between the returns of a given underlying and the market benchmark, usually the S&P. For equities, traders look at the value to determine an underlying’s volatility relative to the market. If we look at the beta between VIX and the S&P however, we are specifically focused on determining how much VIX moves given a 1% move in the S&P.When we see outlier moves like we have in the past few days, how does the relationship between VIX and the S&P change?Join Tom and Tony to find out!
Beta is the relationship between the returns of a given underlying and the market benchmark, usually the S&P. For equities, traders look at the value to determine an underlying’s volatility relative to the market. If we look at the beta between VIX and the S&P however, we are specifically focused on determining how much VIX moves given a 1% move in the S&P.When we see outlier moves like we have in the past few days, how does the relationship between VIX and the S&P change?Join Tom and Tony to find out!
Increased volatility preceding earnings announcements can provide tastytraders with additional opportunities to sell premium, but how far before earnings does volatility become elevated and how reliably does volatility come back down after earnings?
Today, Tom and Tony dive into the data to get to explore these questions and see how we can incorporate these lessons into our earnings strategies.
Increased volatility preceding earnings announcements can provide tastytraders with additional opportunities to sell premium, but how far before earnings does volatility become elevated and how reliably does volatility come back down after earnings?
Today, Tom and Tony dive into the data to get to explore these questions and see how we can incorporate these lessons into our earnings strategies.
Victor, Tom, and Tony discuss if Crypto is dead. Tom asks if the death of high beta stocks and Crypto has been greatly exaggerated, he's optimistic, the historical data says otherwise. Victor somewhat disagrees - he feels it was built on a faulty premise. The death of anything that wasn't strong enough to survive that takes a nominal cost of money was probably built on a weak premise to begin with. When there is no economic incentive and no asset class, is anyone really surprised by its death throes? Tom disagrees. Like a Rising Phoenix this could be the start of some of the most valuable companies in the world, just as we saw after the dot.com bust in 1999/2000. That was the start of Google, Facebook, and a game changer for Apple and so on. Is Crypto just going through a regenerative phase? Could there be a good outcome for this industry even after the carnage. Is the winter coming for cryptocurrency? Join the debate on today's segment of Hear Me Out.
Victor, Tom, and Tony discuss if Crypto is dead. Tom asks if the death of high beta stocks and Crypto has been greatly exaggerated, he's optimistic, the historical data says otherwise. Victor somewhat disagrees - he feels it was built on a faulty premise. The death of anything that wasn't strong enough to survive that takes a nominal cost of money was probably built on a weak premise to begin with. When there is no economic incentive and no asset class, is anyone really surprised by its death throes? Tom disagrees. Like a Rising Phoenix this could be the start of some of the most valuable companies in the world, just as we saw after the dot.com bust in 1999/2000. That was the start of Google, Facebook, and a game changer for Apple and so on. Is Crypto just going through a regenerative phase? Could there be a good outcome for this industry even after the carnage. Is the winter coming for cryptocurrency? Join the debate on today's segment of Hear Me Out.
Tijuana Flats is a chain of Tex-Mex restaurants with over 125 places in the U.S. The Tex-Mex chain was founded by Brian Wheeler in 1995 when Brian's dad loaned him the money to open the first Tijuana Flats in Winter Park, Florida. They pride themselves on bold flavors, piled high with big-hearted over-the-top service. Tijuana Flats has been recognized as the Top 100 Movers & Shakers, by Fast Casual Magazine, and has received the National Restaurant Association's 2018 Restaurant Neighbor Award.
Tijuana Flats is a chain of Tex-Mex restaurants with over 125 places in the U.S. The Tex-Mex chain was founded by Brian Wheeler in 1995 when Brian's dad loaned him the money to open the first Tijuana Flats in Winter Park, Florida. They pride themselves on bold flavors, piled high with big-hearted over-the-top service. Tijuana Flats has been recognized as the Top 100 Movers & Shakers, by Fast Casual Magazine, and has received the National Restaurant Association's 2018 Restaurant Neighbor Award.
CPI rose 8.6% annually in May; fastest rate since ‘81. 10-year at highest level since 2011; 2-yr yield up for 7th. straight day. Dollar has biggest 4-day rally in 2½ years.
CPI rose 8.6% annually in May; fastest rate since ‘81. 10-year at highest level since 2011; 2-yr yield up for 7th. straight day. Dollar has biggest 4-day rally in 2½ years.
When making adjustments and defending a position, it’s important to understand exactly what it is that you’re wanting out of that position. With a Strangle, you’re prioritizing the room between strikes over directional bias minimization, whereas with an Inverted Strangle, you’re prioritizing directional bias minimization over profit potential. Understanding these differences is important to making the right decision in the given moment.Have you seen our BRAND NEW CRASH COURSE on Rolling?
When making adjustments and defending a position, it’s important to understand exactly what it is that you’re wanting out of that position. With a Strangle, you’re prioritizing the room between strikes over directional bias minimization, whereas with an Inverted Strangle, you’re prioritizing directional bias minimization over profit potential. Understanding these differences is important to making the right decision in the given moment.Have you seen our BRAND NEW CRASH COURSE on Rolling?
Mike and Frank use historical data to investigate whether high interest rates are here to stay, and they use futures and options to trade it. They compare the current market for short-term interest rates in the US to over a decade's worth of historical prices, and they find that the market is at highs unseen since 2008; but this must be qualified by the fact that rates traded between 3% and 6% for the majority of the decade prior to 2008. This information leads to a conversation around whether or not rates over 3% are in fact the new normal.The futures dudes show you how to contextualize and potentially trade the extreme, and Frank closes with some words on managing or defending losses if the market doesn't go your way.
Mike and Frank use historical data to investigate whether high interest rates are here to stay, and they use futures and options to trade it. They compare the current market for short-term interest rates in the US to over a decade's worth of historical prices, and they find that the market is at highs unseen since 2008; but this must be qualified by the fact that rates traded between 3% and 6% for the majority of the decade prior to 2008. This information leads to a conversation around whether or not rates over 3% are in fact the new normal.The futures dudes show you how to contextualize and potentially trade the extreme, and Frank closes with some words on managing or defending losses if the market doesn't go your way.
Long stock collars consist of buying an OTM put and selling an OTM call to finance the cost of the put around 100 shares of stock. This protects downside risk below the put, and caps upside profit above the call like a vertical spread.
Tune in to learn how this can be used to protect 100+ shares of stock, with a discussion of portfolio management as well!
Long stock collars consist of buying an OTM put and selling an OTM call to finance the cost of the put around 100 shares of stock. This protects downside risk below the put, and caps upside profit above the call like a vertical spread.
Tune in to learn how this can be used to protect 100+ shares of stock, with a discussion of portfolio management as well!
Rolling is one of the more nuanced tastytrade mechanics, much less straight forward and harder to comprehend as a new trader. This study explains the reasons to roll and the effect rolling has on a position. Join Tom and Tony as they discuss rolling the untested side of a strangle and how that impacts a trade's P/L and win rate.
Rolling is one of the more nuanced tastytrade mechanics, much less straight forward and harder to comprehend as a new trader. This study explains the reasons to roll and the effect rolling has on a position. Join Tom and Tony as they discuss rolling the untested side of a strangle and how that impacts a trade's P/L and win rate.
Much of what we know about modern finance actually comes from classic economics, and if we take a look at demand elasticity, we see an interesting parallel with how we use different products as active traders. Because we can freely and easily switch from one product to the next, with virtually no loss in opportunity, our demand for different products is perfectly elastic - a phenomenon that allows us to customize our own risk:return profiles.Did you catch our recently on how to determine Delta/Theta levels for your portfolio?
Much of what we know about modern finance actually comes from classic economics, and if we take a look at demand elasticity, we see an interesting parallel with how we use different products as active traders. Because we can freely and easily switch from one product to the next, with virtually no loss in opportunity, our demand for different products is perfectly elastic - a phenomenon that allows us to customize our own risk:return profiles.Did you catch our recently on how to determine Delta/Theta levels for your portfolio?
Short Puts are one of our favorite strategies to use in the market to establish positive delta and capture positive theta. But of course, there will still be times when these strategies are tested, and we have to defend and adjust our positions. So when this happens, what do we do, and how do we make our decisions?On today’s YouTube Live, those are the questions that we will answer.Have you seen our BRAND NEW CRASH COURSE on Rolling?
Short Puts are one of our favorite strategies to use in the market to establish positive delta and capture positive theta. But of course, there will still be times when these strategies are tested, and we have to defend and adjust our positions. So when this happens, what do we do, and how do we make our decisions?On today’s YouTube Live, those are the questions that we will answer.Have you seen our BRAND NEW CRASH COURSE on Rolling?
Some of the most important decisions around scalping futures occur before the trade is entered. Experienced trader Frank covers sizing positions, when to scale in further or cut losses, and how to diversify across multiple markets in the tastyworks platform. He compares products like E-mini Nasdaq and Micro Nasdaq futures to Small Exchange futures to find what product might work for you, and then he dives into Small 2YR Yield (S2Y) futures to show an example of scaling into a position versus taking a loss.Take Frank's guided tour of a futures trading platform to see how you might scalp the next big data release with appropriate size and a high probability of success.
Over the past couple of years we have seen many underlying with an implied volatility of over 100. How does this affect expected move and average returns. In this study Tom and Tony discuss occurrences in all underlyings in the S&P 500 when IV went above 100 and the next 90 days of returns as well as the reasoning behind the statistics found in the study.
Over the past couple of years we have seen many underlying with an implied volatility of over 100. How does this affect expected move and average returns. In this study Tom and Tony discuss occurrences in all underlyings in the S&P 500 when IV went above 100 and the next 90 days of returns as well as the reasoning behind the statistics found in the study.
The economic landscape is getting harder to navigate. Join Tom, Tony and Jermal as they find the devil in the details on This Week in Stocks.
The economic landscape is getting harder to navigate. Join Tom, Tony and Jermal as they find the devil in the details on This Week in Stocks.
Initial jobless claims rise by the most since July ‘21. ECB likely to hike 25 bps at July meeting. $3.2 trillion of equity options expire next week.
Initial jobless claims rise by the most since July ‘21. ECB likely to hike 25 bps at July meeting. $3.2 trillion of equity options expire next week.
So how do you find a new options trade? At tastytrade, we have a process that we like to follow that starts with one of the pre-screened watchlists on tastyworks, sorts the stocks by their implied volatility rank, and then ends with executing a strategy that fits our desired risk-return preferences for that position.
Have you seen our BRAND NEW CRASH COURSE on Rolling?
So how do you find a new options trade? At tastytrade, we have a process that we like to follow that starts with one of the pre-screened watchlists on tastyworks, sorts the stocks by their implied volatility rank, and then ends with executing a strategy that fits our desired risk-return preferences for that position.
Have you seen our BRAND NEW CRASH COURSE on Rolling?
波动率偏斜是可以有方向性的，它大致可以分为三类。那么这三种偏斜方向有什么区别，哪些交易产品会出现什么方向的偏斜，以及偏斜出现的原因是什么。
There are three types of volatility skews, depending on their directions. So what are the differences between them, what products typically fit into these types, and why? Tune in and find out the answer with Kai’s in-depth explanation.
After discussing the ECB rate hike decision today and analyzing the current markets Pete and James discuss natural gas futures. The futures market currently predicts that prices will be much lower in 2023 while remaining elevated throughout 2022. They note the strangeness of this curve and remind traders that natural gas is a volatile product and not for the faint of heart. They also take a look at the options market and the notable skew to the call side as the call options currently trade richer than equidistant put options.
After discussing the ECB rate hike decision today and analyzing the current markets Pete and James discuss natural gas futures. The futures market currently predicts that prices will be much lower in 2023 while remaining elevated throughout 2022. They note the strangeness of this curve and remind traders that natural gas is a volatile product and not for the faint of heart. They also take a look at the options market and the notable skew to the call side as the call options currently trade richer than equidistant put options.
Buying options has been deemed, "a sucker play," by many experienced traders who prefer to be on the short side of the market. The story of selling options when volatility is high has been told many times, but Errol and Frank make the case for buying options when volatility is low. They use Gold ETF (GLD) options to show when you might attempt to go buy a strategy like the straddle - IV Rank under 10% - and they rope in futures options on Small Precious Metals Futures (SPRE) to pay and even lower price.The guys conclude with a way to finance their long option trade with short options in a similar market. Learn about the case for long options and see if Errol and Frank's cross-product long-short option strategy might work for you.
Buying options has been deemed, "a sucker play," by many experienced traders who prefer to be on the short side of the market. The story of selling options when volatility is high has been told many times, but Errol and Frank make the case for buying options when volatility is low. They use Gold ETF (GLD) options to show when you might attempt to go buy a strategy like the straddle - IV Rank under 10% - and they rope in futures options on Small Precious Metals Futures (SPRE) to pay and even lower price.The guys conclude with a way to finance their long option trade with short options in a similar market. Learn about the case for long options and see if Errol and Frank's cross-product long-short option strategy might work for you.
The tastytrade crew shares their options trade ideas for the day! Mike buys a double calendar spread in DOCU for earnings
Katie buys a call vertical spread in COIN Nick sells a strangle in PYPL
Tune in to learn more and a live Q&A as well!
The tastytrade crew shares their options trade ideas for the day! Mike buys a double calendar spread in DOCU for earnings
Katie buys a call vertical spread in COIN Nick sells a strangle in PYPL
Tune in to learn more and a live Q&A as well!
Professional gambler Paul Krishnamurty, of BetOnline, shares his golf-betting expertise to handicap the PGA Tour’s U.S. Open. But golf isn’t Paul’s only specialty. As a political junkie, he also shares his bets for the 2024 presidential nominees and whether or not Boris Johnson will remain in office for the rest of the year.
Professional gambler Paul Krishnamurty, of BetOnline, shares his golf-betting expertise to handicap the PGA Tour’s U.S. Open. But golf isn’t Paul’s only specialty. As a political junkie, he also shares his bets for the 2024 presidential nominees and whether or not Boris Johnson will remain in office for the rest of the year.
Docusign has been a battle for the girls all year. With earnings on deck, they struggle with finding a trade. They decide on moving out to July to get the highest credit and still have some room for DOCU to fall.
Docusign has been a battle for the girls all year. With earnings on deck, they struggle with finding a trade. They decide on moving out to July to get the highest credit and still have some room for DOCU to fall.
It's red shirt Thursday and Liz and Jenny are trading futures. They decide to leave their /ZS and /CL positions. They come up with a creative bearish trade in the small dollar to replace the Zebra. They sell 2 OTM calls and buy 1 OTM put for a credit. This gives them a high pop trade with positive theta along with a large profit potential if the dollar moves down.
It's red shirt Thursday and Liz and Jenny are trading futures. They decide to leave their /ZS and /CL positions. They come up with a creative bearish trade in the small dollar to replace the Zebra. They sell 2 OTM calls and buy 1 OTM put for a credit. This gives them a high pop trade with positive theta along with a large profit potential if the dollar moves down.
Beta weighted delta is a metric that measures your portfolio’s directional risk compared to SPY. This becomes a very important metric when trying to analyze and adjust your portfolio’s risk. In this study Tom and Tony discuss how the accuracy of beta weighted delta changes with correlation.
Beta weighted delta is a metric that measures your portfolio’s directional risk compared to SPY. This becomes a very important metric when trying to analyze and adjust your portfolio’s risk. In this study Tom and Tony discuss how the accuracy of beta weighted delta changes with correlation.
Last week we introduced artificial intelligence and machine learning from the perspective of supervised learning, or machine learning models built from labeled data. However, the real world often does not provide well-organized, nicely-packaged information. This is where unsupervised learning and reinforcement learning come in. Join Tom, Tony and Julia as they discuss the three main paradigms of machine learning. If you have requests for any topics, reach out to Julia (@FinancePhoton) or Eddie (@ERajcevic11) on Twitter! You can also submit ideas through this form: https://www.tastytrade.com/alp.
Last week we introduced artificial intelligence and machine learning from the perspective of supervised learning, or machine learning models built from labeled data. However, the real world often does not provide well-organized, nicely-packaged information. This is where unsupervised learning and reinforcement learning come in. Join Tom, Tony and Julia as they discuss the three main paradigms of machine learning. If you have requests for any topics, reach out to Julia (@FinancePhoton) or Eddie (@ERajcevic11) on Twitter! You can also submit ideas through this form: https://www.tastytrade.com/alp.
FieldPulse enables service professionals to run their businesses from anywhere in the world. They help trade businesses of all types and sizes achieve rapid growth through automating their operations and maximizing efficiency. FieldPulse was created to help trade businesses within SMB and enterprises achieve rapid growth through automating their operations and maximizing efficiency. Gabriel Pinchev is the Founder & CEO. He began his career at Accenture where he realized his dream of entrepreneurship and building a company from the ground up.
FieldPulse enables service professionals to run their businesses from anywhere in the world. They help trade businesses of all types and sizes achieve rapid growth through automating their operations and maximizing efficiency. FieldPulse was created to help trade businesses within SMB and enterprises achieve rapid growth through automating their operations and maximizing efficiency. Gabriel Pinchev is the Founder & CEO. He began his career at Accenture where he realized his dream of entrepreneurship and building a company from the ground up.
Is the SEC about to take it too far? Probably, but being too restrictive on a free market system ultimately limits access to the self-directed investor. The problem is the big-name hedge fund managers and investment agencies are rarely in the game for the best interest of the customer. There is a misalignment of the service side versus the principal side. This problem remains unresolved to this day. Access needs to be realigned so regular Joe trader can get a piece of the action. On this week’s episode, Tom and Dylan take on regulatory entities, the SEC and how it is going to limit access for the self-directed trader.
Is the SEC about to take it too far? Probably, but being too restrictive on a free market system ultimately limits access to the self-directed investor. The problem is the big-name hedge fund managers and investment agencies are rarely in the game for the best interest of the customer. There is a misalignment of the service side versus the principal side. This problem remains unresolved to this day. Access needs to be realigned so regular Joe trader can get a piece of the action. On this week’s episode, Tom and Dylan take on regulatory entities, the SEC and how it is going to limit access for the self-directed trader.
Crude oil futures are known for the enormous risks and rewards they can pose to the trader given how volatile the underlying commodity market can be. With crude at historical extremes only seen 0.8% of the time going back to 1990, Katie and Frank discuss how they can sell this huge outlier without taking on too much risk.Getting smaller is a start, and the Small Crude Oil futures are 1/10th the size of traditional CL futures. Check out how you can get smaller in the commodity space, and pick up some interesting historical facts about where crude oil has traded in the past.
Crude oil futures are known for the enormous risks and rewards they can pose to the trader given how volatile the underlying commodity market can be. With crude at historical extremes only seen 0.8% of the time going back to 1990, Katie and Frank discuss how they can sell this huge outlier without taking on too much risk.Getting smaller is a start, and the Small Crude Oil futures are 1/10th the size of traditional CL futures. Check out how you can get smaller in the commodity space, and pick up some interesting historical facts about where crude oil has traded in the past.
Undefined risk positions can be manipulated in endless ways, as long as the stock stays rangebound. Today, Mike walks through his AMD put ratio spread that is converted to a short put, an inverted strangle, and finally a straddle before becoming profitable near expiration over the course of a few months.
Tune in for a full breakdown!
Undefined risk positions can be manipulated in endless ways, as long as the stock stays rangebound. Today, Mike walks through his AMD put ratio spread that is converted to a short put, an inverted strangle, and finally a straddle before becoming profitable near expiration over the course of a few months.
Tune in for a full breakdown!
Liz and Jenny take a look at 10 viewer assumptions and place high probability trades using less capital.
Liz and Jenny take a look at 10 viewer assumptions and place high probability trades using less capital.
Liz and Jenny talk about managing winners and setting profit targets. They answer live tweets and manage their account.
Liz and Jenny talk about managing winners and setting profit targets. They answer live tweets and manage their account.
Historically, the median P/L for 45 DTE 16Δ SPY strangles is roughly 50% the initial credit at 21 DTE (median is the midpoint of the historic distribution). Because of this, we will often manage short premium strategies at 21 DTE or 50% the initial credit. Past research has shown this management scheme works well for this strategy, regardless of underlying, but what about different strategies? Should profit expectations change depending on POP? Join Tom and Tony as they discuss how profit expectations can be adjusted depending on strategy.
Historically, the median P/L for 45 DTE 16Δ SPY strangles is roughly 50% the initial credit at 21 DTE (median is the midpoint of the historic distribution). Because of this, we will often manage short premium strategies at 21 DTE or 50% the initial credit. Past research has shown this management scheme works well for this strategy, regardless of underlying, but what about different strategies? Should profit expectations change depending on POP? Join Tom and Tony as they discuss how profit expectations can be adjusted depending on strategy.
The SKEW index measures the tail risk by using out-of-the-money SPX options. So what determines its value and how well it can predict the market corrections?Join Tom and Tony as they discuss these questions.
The SKEW index measures the tail risk by using out-of-the-money SPX options. So what determines its value and how well it can predict the market corrections?Join Tom and Tony as they discuss these questions.
TGT and UNP issue profit warnings. Australia joins hawkish bandwagon; hikes 50 bps. Lumber has been getting crushed.
TGT and UNP issue profit warnings. Australia joins hawkish bandwagon; hikes 50 bps. Lumber has been getting crushed.
One of the things you will never see us do at tastytrade is buy naked long options. The reason why you won’t see this is naked long options present us with two problems, simultaneously. First, time is working against you on a naked long option, as the extrinsic value decrease over time hurts your position’s profit/loss. Second, direction is also working against you in a way, as you need the stock to move in your favor, in order to hit any of your profit targets.Have you seen our BRAND NEW CRASH COURSE on Rolling?
One of the things you will never see us do at tastytrade is buy naked long options. The reason why you won’t see this is naked long options present us with two problems, simultaneously. First, time is working against you on a naked long option, as the extrinsic value decrease over time hurts your position’s profit/loss. Second, direction is also working against you in a way, as you need the stock to move in your favor, in order to hit any of your profit targets.Have you seen our BRAND NEW CRASH COURSE on Rolling?
Interest rates can affect everything from your car loan to the stock market, and they've been moving higher recently. Futures traders Jermal and Frank look at data going back to 2010 to see just how high interest rates have been in the past, and they use this information to formulate some trade ideas in the current futures market.2YR interest rates are currently at historical highs, while 30YR rates are in the middle of their historical range. Value traders could find opportunity in selling S2Y futures if they wanna be short rates or buying S30Y futures if they wanna be long rates, or they could do both to create a spread trade!
Interest rates can affect everything from your car loan to the stock market, and they've been moving higher recently. Futures traders Jermal and Frank look at data going back to 2010 to see just how high interest rates have been in the past, and they use this information to formulate some trade ideas in the current futures market.2YR interest rates are currently at historical highs, while 30YR rates are in the middle of their historical range. Value traders could find opportunity in selling S2Y futures if they wanna be short rates or buying S30Y futures if they wanna be long rates, or they could do both to create a spread trade!
Nick and Mike give their monthly take on new tastyworks platform features, focus on finding contango and backwardation in futures contracts, and place bracket orders on the trade page!
Tune in to learn more with a Q&A session as well!
Nick and Mike give their monthly take on new tastyworks platform features, focus on finding contango and backwardation in futures contracts, and place bracket orders on the trade page!
Tune in to learn more with a Q&A session as well!
LIVE in the TT studio! Anton joins Liz and they have a discussion on the pros and cons of puts vs. put ratio spreads. They also discuss the movement of SPY and VIX.
LIVE in the TT studio! Anton joins Liz and they have a discussion on the pros and cons of puts vs. put ratio spreads. They also discuss the movement of SPY and VIX.
Option price skew is present in many underlyings. The price skew when selling options can significantly impact the losses taken. This study shows how the skew in UNG affected strangles and naked calls.
Option price skew is present in many underlyings. The price skew when selling options can significantly impact the losses taken. This study shows how the skew in UNG affected strangles and naked calls.
Options give traders tremendous flexibility for shaping positions to fit with market assumptions. Even with identical degrees of directional exposure, or deltas, there are a wide range of option strategies that reflect the same opinion on the underlying. Join Tom and Tony as they dive into the data and see what separates one 10 delta vertical from another.
Options give traders tremendous flexibility for shaping positions to fit with market assumptions. Even with identical degrees of directional exposure, or deltas, there are a wide range of option strategies that reflect the same opinion on the underlying. Join Tom and Tony as they dive into the data and see what separates one 10 delta vertical from another.
Victor, Tom, and Tony take on the SEC's potential new rules on today's show. Tom thinks all regulatory entities' involvement could damage and disrupt the natural liquidity of the markets. He notes that not charging customers commissions should continue as a rule of thumb. After all, firms are doing business from a loss but making customers pay commissions has proven that it is not the way forward. Victor adds that educating people about mitigating risk in the markets should continue. The more education, the better. All three agree that the amount of money paid by brokers for data should be changed in addition to payment for order flow. The debate rages on in today's episode of Hear Me Out.
Victor, Tom, and Tony take on the SEC's potential new rules on today's show. Tom thinks all regulatory entities' involvement could damage and disrupt the natural liquidity of the markets. He notes that not charging customers commissions should continue as a rule of thumb. After all, firms are doing business from a loss but making customers pay commissions has proven that it is not the way forward. Victor adds that educating people about mitigating risk in the markets should continue. The more education, the better. All three agree that the amount of money paid by brokers for data should be changed in addition to payment for order flow. The debate rages on in today's episode of Hear Me Out.
The 81 Collection is the first founder's fund in Chicago made up of Midwest entrepreneurs who brought online industries online. The 81 Collection's goal is to back entrepreneurs transforming dull trade, hard work, unpleasant spaces, and structural inequity, supporting the next generation of entrepreneurs who choose the difficult road. Vijen Patel is the Founding Partner. He's no novice to starting companies, in July of 2018, he sold his company, Pressbox, to Proctor & Gamble which rebranded as Tide Cleaners.
The 81 Collection is the first founder's fund in Chicago made up of Midwest entrepreneurs who brought online industries online. The 81 Collection's goal is to back entrepreneurs transforming dull trade, hard work, unpleasant spaces, and structural inequity, supporting the next generation of entrepreneurs who choose the difficult road. Vijen Patel is the Founding Partner. He's no novice to starting companies, in July of 2018, he sold his company, Pressbox, to Proctor & Gamble which rebranded as Tide Cleaners.
Jobs market better than expected in May: 390k vs. 318k. Beijing eases covid restrictions. What should we expect from CPI on Friday?
Jobs market better than expected in May: 390k vs. 318k. Beijing eases covid restrictions. What should we expect from CPI on Friday?
One of the biggest differences between stock positions and option positions is the capital allocation required for each type of trade. While stock positions require 50% margin in margin accounts, a similar option position can be put on for 20% margin, or even less. By efficiently using your capital like this, you have flexibility to address the other areas of your portfolio more easily.Have you seen our BRAND NEW CRASH COURSE on Rolling?
One of the biggest differences between stock positions and option positions is the capital allocation required for each type of trade. While stock positions require 50% margin in margin accounts, a similar option position can be put on for 20% margin, or even less. By efficiently using your capital like this, you have flexibility to address the other areas of your portfolio more easily.Have you seen our BRAND NEW CRASH COURSE on Rolling?
The straddle is considered the most aggressive neutral strategy in the world of options, and selling the at-the-money straddle can greatly profit from the market not moving. Mike and Frank size up the short straddle using futures options on the Small US Dollar (SFX) market to show how high their potential return on capital (ROC) can get given the efficiency of futures options.Learn how our experienced derivatives traders enter, manage, and defend the straddle strategy using futures options, and find out if the high potential ROC fits into your portfolio.
The straddle is considered the most aggressive neutral strategy in the world of options, and selling the at-the-money straddle can greatly profit from the market not moving. Mike and Frank size up the short straddle using futures options on the Small US Dollar (SFX) market to show how high their potential return on capital (ROC) can get given the efficiency of futures options.Learn how our experienced derivatives traders enter, manage, and defend the straddle strategy using futures options, and find out if the high potential ROC fits into your portfolio.
Tune in for an overview of the top 5 stocks to watch in June that have earnings (KR, PAYX, WBA, KMX, ACN):
Full article listed here - https://www.tastytrade.com/news-insights/best-stocks-june-2022
Tune in for an overview of the top 5 stocks to watch in June that have earnings (KR, PAYX, WBA, KMX, ACN):
Full article listed here - https://www.tastytrade.com/news-insights/best-stocks-june-2022
James joins Liz to discuss this week's stock Amazon! James and Liz talk about the ins and outs of this email and talk though the bearish, bullish, and neutral trade ideas. They land on the jade lizard.
Want to know more about the Jade Lizard strategy on today's show? Check it out.
James joins Liz to discuss this week's stock Amazon! James and Liz talk about the ins and outs of this email and talk though the bearish, bullish, and neutral trade ideas. They land on the jade lizard.
Want to know more about the Jade Lizard strategy on today's show? Check it out.
Jermal joins Liz as they take live tweets on earnings and calendar management. They also discuss the AMZN split and bitcoin's correlation to the NASDAQ.
Jermal joins Liz as they take live tweets on earnings and calendar management. They also discuss the AMZN split and bitcoin's correlation to the NASDAQ.
How reliable are results from backtesting option strategies? This is important to know, because if they are reliable we can use them in our everyday trading. We find that the backtests are reliable through comparing results from 2005-2021 to the past two years.
How reliable are results from backtesting option strategies? This is important to know, because if they are reliable we can use them in our everyday trading. We find that the backtests are reliable through comparing results from 2005-2021 to the past two years.
At tastytrade, we anchor our approach on statistical advantages and high probabilities. But how can we be sure that the probabilities will actually work out in our favor over time? If we turn to the relationship between the Law of Large Numbers and the Central Limit Theorem, we find the answer to that question.Did you catch our recent show on how to determine Delta/Theta levels for your portfolio?
At tastytrade, we anchor our approach on statistical advantages and high probabilities. But how can we be sure that the probabilities will actually work out in our favor over time? If we turn to the relationship between the Law of Large Numbers and the Central Limit Theorem, we find the answer to that question.Did you catch our recent show on how to determine Delta/Theta levels for your portfolio?
Here in episode #5 of the Rolling Crash Course, the final episode, we work through a number of our most frequently asked questions regarding the rolling process. These questions include: When should you pay a debit to roll? Does it ever make sense to leg out of an Iron Condor? With an in-the-money Short Put, can we just keep rolling it forever?…among many more. Be sure to connect with Dr. Jim on Twitter @jschultzf3!
Here in episode #4 of the Rolling Crash Course, we talk about how to adjust your profit targets once you’ve rolled your position. While any adjustment you make largely depends on how you categorize the roll, as offensive or defensive, it is important to recognize how your trade has changed once you roll. Doing this will allow you scale down your targets accordingly, Be sure to connect with Dr. Jim on Twitter @jschultzf3!
Here in episode #3 of the Rolling Crash Course, we turn our attention to undefined-risk strategies - the real bread and butter of short premium. While all undefined-risk positions should be rolled out at 21 DTE, with very few exceptions, there is a specific set of adjustments we like to make for certain strategies, such as Short Strangles and Short Straddles. Be sure to connect with Dr. Jim on Twitter @jschultzf3!
Here in episode #2 of the Rolling Crash Course, we turn our attention specifically to rolling defined-risk strategies. This includes a specific analysis of Vertical Spreads, Iron Condors, and Diagonal Spreads, while also working through why we focus primarily on rolling defined-risk strategies for credits, rather than debits. Be sure to connect with Dr. Jim on Twitter @jschultzf3!
Here in episode #1 of the Rolling Crash Course, we define what a roll is and clarify all the terms associated with rolling. This includes rolling “up”, “down”, “out”, and “in”. Simply understanding the basics of a roll, along with the language of rolling, is a necessary step in building a strong foundation from which to be able to make position adjustments. Be sure to connect with Dr. Jim on Twitter @jschultzf3!
Over the last two weeks, we saw actual market action be way less volatile than what was priced by implied volatility. We also see equity market put skew return to above normal levels, with out of the money puts being priced around three times that of the out of the money calls.
Over the last two weeks, we saw actual market action be way less volatile than what was priced by implied volatility. We also see equity market put skew return to above normal levels, with out of the money puts being priced around three times that of the out of the money calls.
On this episode of Engineering the Trade, Jermal Chandler and Julia Spina take a look at the boom and bust cycle in tech names, such as, Netflix, Zoom, Amazon and Peloton. They also discuss which sectors could potentially lead the market when the next Bull cycle arrives.
On this episode of Engineering the Trade, Jermal Chandler and Julia Spina take a look at the boom and bust cycle in tech names, such as, Netflix, Zoom, Amazon and Peloton. They also discuss which sectors could potentially lead the market when the next Bull cycle arrives.
Defined-Risk strategies are great strategies because they allow us to actively engage in the markets and trade with high probabilities, all while limiting our risk. Still, it's important to recognize that by covering any short options with a corresponding long option, and defining our risk, there is a certain amount of friction that is introduced into the strategy. This means that beneficial metrics like positive Theta or negative Vega are reduced as a result of those long legs.
Defined-Risk strategies are great strategies because they allow us to actively engage in the markets and trade with high probabilities, all while limiting our risk. Still, it's important to recognize that by covering any short options with a corresponding long option, and defining our risk, there is a certain amount of friction that is introduced into the strategy. This means that beneficial metrics like positive Theta or negative Vega are reduced as a result of those long legs.
Using the ceteris paribus (only analyze one variable at a time) method, assuming everything else is equal, the higher IV expiration cycle carries more risk and higher reward across the option chain on average. The higher IVx cycle is expected to have more day-to-day volatility than the lower IVx cycle.
Using the ceteris paribus (only analyze one variable at a time) method, assuming everything else is equal, the higher IV expiration cycle carries more risk and higher reward across the option chain on average. The higher IVx cycle is expected to have more day-to-day volatility than the lower IVx cycle.
A flat yield curve implies that yields of all durations (2YR, 10YR, 30YR, etc.) are relatively the same. Normally, yields increase as the duration of the bond increases, but sometimes the curve can fall into a rare environment whereby short-term rates are close to or even higher than longer-term ones. Futures traders Mikey and Frank show you what this can look like in the market, and then give you the tools to trade the current flat yield curve.Learn how a normal yield curve operates, what a flat yield curve looks like, and how you can access the US yield curve using small, standard, and simple futures products.
A flat yield curve implies that yields of all durations (2YR, 10YR, 30YR, etc.) are relatively the same. Normally, yields increase as the duration of the bond increases, but sometimes the curve can fall into a rare environment whereby short-term rates are close to or even higher than longer-term ones. Futures traders Mikey and Frank show you what this can look like in the market, and then give you the tools to trade the current flat yield curve.Learn how a normal yield curve operates, what a flat yield curve looks like, and how you can access the US yield curve using small, standard, and simple futures products.
A diagonal spread for earnings takes advantage of the front-loaded implied volatilty in the weekly cycle, and allows you to get directional at a lower cost than buying 100 shares of stock. A calendar spread works in a similar way, but there are some tradeoffs compared to a diagonal spread.
Tune in to learn more with a live Q&A session as well!
A diagonal spread for earnings takes advantage of the front-loaded implied volatilty in the weekly cycle, and allows you to get directional at a lower cost than buying 100 shares of stock. A calendar spread works in a similar way, but there are some tradeoffs compared to a diagonal spread.
Tune in to learn more with a live Q&A session as well!
Liz and Jenny discuss their biggest winners of the year and look at the Friday's email from alpha boost. With the current vol conditions they land on a short term ATM calendar in MSFT.
Liz and Jenny discuss their biggest winners of the year and look at the Friday's email from alpha boost. With the current vol conditions they land on a short term ATM calendar in MSFT.
Liz and Jenny look at QQQ and NFLX iron condors. The also assess if there are any after earnings trades in LULU and CRWD.
Liz and Jenny look at QQQ and NFLX iron condors. The also assess if there are any after earnings trades in LULU and CRWD.
Over the last week, we saw intraday volatility and daily volatility in the S&P 500 (realized) decline by about 30% compared to what we saw over the last month. Implied volatility declined just 15% over the same period suggesting that premium is staying rich relative to the lower realized volatilities we observed over the last week.
Over the last week, we saw intraday volatility and daily volatility in the S&P 500 (realized) decline by about 30% compared to what we saw over the last month. Implied volatility declined just 15% over the same period suggesting that premium is staying rich relative to the lower realized volatilities we observed over the last week.
S&P 500 had EIGHT moves over 2% in May. Most since April 2020. Bonus: How many were negative? VIX is below 25; at the lowest level since April 22 spike. Russian oil ban and OPEC+ supply promises cap a “volatile” week for crude oil. Bitcoin’s correlation with stocks is turning a corner. MSFT blames U.S. dollar strength for guidance, earnings cut.
S&P 500 had EIGHT moves over 2% in May. Most since April 2020. Bonus: How many were negative? VIX is below 25; at the lowest level since April 22 spike. Russian oil ban and OPEC+ supply promises cap a “volatile” week for crude oil. Bitcoin’s correlation with stocks is turning a corner. MSFT blames U.S. dollar strength for guidance, earnings cut.
波动率偏斜是期权交易中经常听到的一个名词。那它是什么意思，了解他又对我们交易有什么作用？
Options traders often hear “Volatility Skew” or “Vol Skew.” What does it mean? And why is this important for us to understand?
ADP shows U.S. companies post smallest gain of pandemic recovery. U.S. Job openings fell in April; turning a corner? MSFT guides down due to impact of stronger dollar.
ADP shows U.S. companies post smallest gain of pandemic recovery. U.S. Job openings fell in April; turning a corner? MSFT guides down due to impact of stronger dollar.
Defending a losing position, and making the appropriate adjustments, is a big part of the tastytrade process. And once you’ve managed a position, you have to decide if/how you should alter your profit targets. Should you stick with 50% of the original credit received? Should you adjust it higher? Should you adjust it lower?For the YouTube Live today, we answer those questions, as we take a look at our ARKK position.Did you catch our show on how to determine Delta/Theta levels for your portfolio?
Defending a losing position, and making the appropriate adjustments, is a big part of the tastytrade process. And once you’ve managed a position, you have to decide if/how you should alter your profit targets. Should you stick with 50% of the original credit received? Should you adjust it higher? Should you adjust it lower?For the YouTube Live today, we answer those questions, as we take a look at our ARKK position.Did you catch our show on how to determine Delta/Theta levels for your portfolio?
Pete and James discuss today's rally in equities as well as what's moving the crude oil and natural gas markets. For their main discussion the duo take a comprehensive look at crude oil futures calendars. They break down how the trades are constructed, how spreads have moved this year, and why traders favor the larger /CL contract over the micro /MCL contract for calendar spread trades.
Pete and James discuss today's rally in equities as well as what's moving the crude oil and natural gas markets. For their main discussion the duo take a comprehensive look at crude oil futures calendars. They break down how the trades are constructed, how spreads have moved this year, and why traders favor the larger /CL contract over the micro /MCL contract for calendar spread trades.
Nonfarm Payrolls is a monthly measure conducted by the US Bureau of Labor Statistics that highlights how many jobs were created in the last month outside of the farming sector. This number is compared to a projection committed by financial analysts, and its relation to that expected value can cause the market to shift. Errol and Frank give examples of how a better-than-expected number might affect the stock market, and they talk about what a Nonfarm number that misses expectations might do.Get ready for the next Nonfarm Payrolls number with this quick explainer with trade strategy around whether the actual number beats or misses expectations.
Nonfarm Payrolls is a monthly measure conducted by the US Bureau of Labor Statistics that highlights how many jobs were created in the last month outside of the farming sector. This number is compared to a projection committed by financial analysts, and its relation to that expected value can cause the market to shift. Errol and Frank give examples of how a better-than-expected number might affect the stock market, and they talk about what a Nonfarm number that misses expectations might do.Get ready for the next Nonfarm Payrolls number with this quick explainer with trade strategy around whether the actual number beats or misses expectations.
The tastytrade crew shares their options trade ideas for the day! Mike buys a call calendar spread in LULU for earnings
Katie sells a put vertical spread in SPOT
Nick sells a super bull (short put + call debit spread) in X
Tune in to learn more and a live Q&A as well!
The tastytrade crew shares their options trade ideas for the day! Mike buys a call calendar spread in LULU for earnings
Katie sells a put vertical spread in SPOT
Nick sells a super bull (short put + call debit spread) in X
Tune in to learn more and a live Q&A as well!
Liz and Jenny place a ratio strangle in AMD. They close a few positions and look for earnings trades. They decide to get in the Crowdstrike game with a calendar. They pass on LULU, but look at viewer ideas from twitter.
Liz and Jenny place a ratio strangle in AMD. They close a few positions and look for earnings trades. They decide to get in the Crowdstrike game with a calendar. They pass on LULU, but look at viewer ideas from twitter.
Liz and Jenny look at all their future positions. They close the /SMO calendar and leave the /CL BWB. They decide to look for a new trade in the British pound. They discuss tick size and buying power vs. risk. They end up placing a neutral iron condor.
Liz and Jenny look at all their future positions. They close the /SMO calendar and leave the /CL BWB. They decide to look for a new trade in the British pound. They discuss tick size and buying power vs. risk. They end up placing a neutral iron condor.
A naked short put is one of our favorite strategies to get long on an underlying, as the undefined risk and OTM strike provide us with a high POP.A front-ratio put spread is a variant of a short put, as it consists of buying one put closer to the money, and selling two further out of the money to route the trade as a credit. Simply, it is a long put spread and a naked short put.These two strategies are similar in approach, but with a short put, we get greater positive delta exposure, whereas with a put ratio spread, the delta starts as positive, but can fluctuate to negative depending on the movement of the underlying. In terms of performance however, how do these strategies differ?Join Tom and Tony to find out!
A naked short put is one of our favorite strategies to get long on an underlying, as the undefined risk and OTM strike provide us with a high POP.A front-ratio put spread is a variant of a short put, as it consists of buying one put closer to the money, and selling two further out of the money to route the trade as a credit. Simply, it is a long put spread and a naked short put.These two strategies are similar in approach, but with a short put, we get greater positive delta exposure, whereas with a put ratio spread, the delta starts as positive, but can fluctuate to negative depending on the movement of the underlying. In terms of performance however, how do these strategies differ?Join Tom and Tony to find out!
Last week we discussed the pros and cons of algorithmic trading. One of the most challenging aspects of algorithmic trading is defining precise trading guidelines and updating those guidelines based on new market information. But what if programs could update themselves? Join Tom, Tony and Julia as they introduce machine learning and discuss its applications in trading. If you have requests for any topics, reach out to Julia (@FinancePhoton) or Eddie (@ERajcevic11) on Twitter! You can also submit ideas through this form: https://www.tastytrade.com/alp.
Last week we discussed the pros and cons of algorithmic trading. One of the most challenging aspects of algorithmic trading is defining precise trading guidelines and updating those guidelines based on new market information. But what if programs could update themselves? Join Tom, Tony and Julia as they introduce machine learning and discuss its applications in trading. If you have requests for any topics, reach out to Julia (@FinancePhoton) or Eddie (@ERajcevic11) on Twitter! You can also submit ideas through this form: https://www.tastytrade.com/alp.
Let's discuss the value of a college degree in these turbulent times. There are a lot of other less pricey avenues to follow when seeking out a livelihood. Does the debt incurred equal the salary acquired in the long term? For many, the cost exceeds the advantages. That equation needs to be reevaluated. The question is, how do you justify the cost of a down payment on a second home (a college degree) in a dysfunctional political system like the one we’re in now? On this week’s segment of Truth or Skepticism, Tom and Dylan tackle the cost of college and what can be done to make it more affordable.
Let's discuss the value of a college degree in these turbulent times. There are a lot of other less pricey avenues to follow when seeking out a livelihood. Does the debt incurred equal the salary acquired in the long term? For many, the cost exceeds the advantages. That equation needs to be reevaluated. The question is, how do you justify the cost of a down payment on a second home (a college degree) in a dysfunctional political system like the one we’re in now? On this week’s segment of Truth or Skepticism, Tom and Dylan tackle the cost of college and what can be done to make it more affordable.
What can we say to be accurate across all X delta options across all underlyings regardless of the value of any other variable: price, notional, IV, expiration cycle, put, call, strike, theta, gamma, etc. For the duration of a trade, one option still carries the same potential notional value as one future regardless of delta. Premium sellers have to be especially careful of this since risk can only accelerate against them, and never in their favor (negative gamma, positive theta).
What can we say to be accurate across all X delta options across all underlyings regardless of the value of any other variable: price, notional, IV, expiration cycle, put, call, strike, theta, gamma, etc. For the duration of a trade, one option still carries the same potential notional value as one future regardless of delta. Premium sellers have to be especially careful of this since risk can only accelerate against them, and never in their favor (negative gamma, positive theta).
Buying power is one of the largest costs of doing business in the active trading world, and it can be greatly reduced by choosing futures over stocks. Katie and Frank show you how to transfer exposure in SPY options to MES options and save more than 50% of your buying power per unit of exposure. Thanks to Micro and Small futures, your risks aren't necessarily increased when going from stock options to futures options; in some cases, options on futures can hold less risk than options on stocks because 1 futures contract can be smaller than 100 shares of stock.The futures duo also shows you how to reduce costs trading bond, currency, and gold options markets by going from ETF options to Micro and Small futures options.
Buying power is one of the largest costs of doing business in the active trading world, and it can be greatly reduced by choosing futures over stocks. Katie and Frank show you how to transfer exposure in SPY options to MES options and save more than 50% of your buying power per unit of exposure. Thanks to Micro and Small futures, your risks aren't necessarily increased when going from stock options to futures options; in some cases, options on futures can hold less risk than options on stocks because 1 futures contract can be smaller than 100 shares of stock.The futures duo also shows you how to reduce costs trading bond, currency, and gold options markets by going from ETF options to Micro and Small futures options.
After a diagonal spread moves ITM, what can we do to keep the trade on, hedge some reversal risk and add more profit potential on a sideways move?
Tune in today to find out, with a live Q&A session as well!
After a diagonal spread moves ITM, what can we do to keep the trade on, hedge some reversal risk and add more profit potential on a sideways move?
Tune in today to find out, with a live Q&A session as well!
Liz and Jenny take a look at 10 viewer assumptions and also look at alpha boost. They lean toward jade lizards and naked puts due to current market conditions.
Liz and Jenny take a look at 10 viewer assumptions and also look at alpha boost. They lean toward jade lizards and naked puts due to current market conditions.
Liz and Jenny take live tweets on earnings trades. The take off the HPQ earnings trade from last night and redeploy the capital.
Liz and Jenny take live tweets on earnings trades. The take off the HPQ earnings trade from last night and redeploy the capital.
The Black-Scholes model is powerful, revolutionary, and patently wrong. Out of it, we can extract the implied volatility, a flawed yet crucial measure of option prices. Today, Jacob joins Tom and Tony to discuss what IV is, what it isn't, and how we can use IVR and IVP to interpret it while diversifying our positions.
The Black-Scholes model is powerful, revolutionary, and patently wrong. Out of it, we can extract the implied volatility, a flawed yet crucial measure of option prices. Today, Jacob joins Tom and Tony to discuss what IV is, what it isn't, and how we can use IVR and IVP to interpret it while diversifying our positions.
RESTART CBD is a national education CBD wellness brand that offers high-quality third-party tested cannabis products. Shayda Torabi is the Co-founder & CEO. She is dedicated to the benefits of cannabis and CBD, which have helped her alleviate her own health issues. Headquartered in Austin Texas, Shayda also has a top-rated podcast called, "To Be Blunt", is on the executive board of the Texas Hemp Coalition, and writes a column for the Texas Hemp Report. The company has a major online presence and brick-and-mortar stores.
RESTART CBD is a national education CBD wellness brand that offers high-quality third-party tested cannabis products. Shayda Torabi is the Co-founder & CEO. She is dedicated to the benefits of cannabis and CBD, which have helped her alleviate her own health issues. Headquartered in Austin Texas, Shayda also has a top-rated podcast called, "To Be Blunt", is on the executive board of the Texas Hemp Coalition, and writes a column for the Texas Hemp Report. The company has a major online presence and brick-and-mortar stores.
A jade lizard is a slightly bullish strategy that combines a short OTM put and an OTM call spread. It has no upside risk with a total credit greater than the width of the short call spread.Why did we create this three-leg strategy while most options strategies have two or four legs?Join Tom and Tony as they discuss why we created the Jade Lizard strategy and how it takes advantage of the IV skew.
A jade lizard is a slightly bullish strategy that combines a short OTM put and an OTM call spread. It has no upside risk with a total credit greater than the width of the short call spread.Why did we create this three-leg strategy while most options strategies have two or four legs?Join Tom and Tony as they discuss why we created the Jade Lizard strategy and how it takes advantage of the IV skew.
$SPY is attempting to finish the month of May in the positive while volatility indicators like $VVIX and $VIX might be signaling turbulence ahead.
$SPY is attempting to finish the month of May in the positive while volatility indicators like $VVIX and $VIX might be signaling turbulence ahead.
Chris joins Pete on today's segment to highlight this weeks projected market movements including:
- Bank of Canada rate decision on Wednesday and how it will impact the Canadian dollar and oil prices
- May US Jobs Report
- US Treasury Yields (ZT, ZN) & Gold (GC)
- If the Long ES/Short NQ is a no-go.
- How the commodities, currencies, Vol & Rates are handling the ongoing war between Ukraine and Russia, the COVID variant in China and more.
Chris joins Pete on today's segment to highlight this weeks projected market movements including:
- Bank of Canada rate decision on Wednesday and how it will impact the Canadian dollar and oil prices
- May US Jobs Report
- US Treasury Yields (ZT, ZN) & Gold (GC)
- If the Long ES/Short NQ is a no-go.
- How the commodities, currencies, Vol & Rates are handling the ongoing war between Ukraine and Russia, the COVID variant in China and more.
When a stock split takes place, the share price of a stock is divided and the shares you had before multiply by the inverse amount. The tastytrade crew explains how the AMZN stock split will go down, and the options market implications after the split!
Tune in to learn more with a live Q&A session as well!
When a stock split takes place, the share price of a stock is divided and the shares you had before multiply by the inverse amount. The tastytrade crew explains how the AMZN stock split will go down, and the options market implications after the split!
Tune in to learn more with a live Q&A session as well!
Liz and Jenny answer live tweets. They look for new earnings trades in Salesforce and Hewlett Packard. They place a jade lizard in HPQ. They talk about the oil move and look at their /SMO calendar. They end the show with a new trade in Rivian.
Liz and Jenny answer live tweets. They look for new earnings trades in Salesforce and Hewlett Packard. They place a jade lizard in HPQ. They talk about the oil move and look at their /SMO calendar. They end the show with a new trade in Rivian.
Anton joins the show to discuss POP or probability of profit. What does a trader do when the probabilities aren't working? In this crazy market, Liz and Jenny talk about changes they make to their trading style when the numbers don't seem to be working.
Anton joins the show to discuss POP or probability of profit. What does a trader do when the probabilities aren't working? In this crazy market, Liz and Jenny talk about changes they make to their trading style when the numbers don't seem to be working.
AMZN will split 20 for 1 on June 3rd, resulting in 20x more AMZN stock and options in existence at 1/20th the price. Since stock splits only change the ratio of price to quantity in the stock and options, there will be no P/L change for anyone holding stock or options positions through the split.
AMZN will split 20 for 1 on June 3rd, resulting in 20x more AMZN stock and options in existence at 1/20th the price. Since stock splits only change the ratio of price to quantity in the stock and options, there will be no P/L change for anyone holding stock or options positions through the split.
As premium sellers our main goal is to not go bust. The math behind premium selling should work out in the end where we may have positive expectation. Historically, selling premium has been profitable over time, but that does not guarantee that short premium will generate a profit in the short term. To have the best chance at realizing positive expectation: trade small, trade often, and let the math work.
As premium sellers our main goal is to not go bust. The math behind premium selling should work out in the end where we may have positive expectation. Historically, selling premium has been profitable over time, but that does not guarantee that short premium will generate a profit in the short term. To have the best chance at realizing positive expectation: trade small, trade often, and let the math work.
Selling premium when IV is high is a core tenet for tastytraders, but what is "high IV"?
Implied volatility rank and implied volatility percentile give two ways to contextualize current IV and judge if it is time to make a trade. But what happens when they disagree? Today, Tom and Tony examine the data to see how short premium strategies have faired in times when IVR and IVP diverge.
Selling premium when IV is high is a core tenet for tastytraders, but what is "high IV"?
Implied volatility rank and implied volatility percentile give two ways to contextualize current IV and judge if it is time to make a trade. But what happens when they disagree? Today, Tom and Tony examine the data to see how short premium strategies have faired in times when IVR and IVP diverge.
Today Tom join Errol to roll trades on roll trade Friday. The tasty mechanics tells us to roll our trades at 21 DTE. Errol takes Tom through a handful of his positions to roll, and take some off for profit.
Today Tom join Errol to roll trades on roll trade Friday. The tasty mechanics tells us to roll our trades at 21 DTE. Errol takes Tom through a handful of his positions to roll, and take some off for profit.
Market volatility, as measured by the VIX (spot volatility) and /VX (futures volatility) displays some very interesting patterns. First, volatility is almost always in a state of contraction, so when volatility does expand rapidly, it’s fighting against market pressure to contract back to lower levels quickly. But second, while future volatility as measured by /VX is normally higher than current volatility as measured by the VIX, also known as contango, there are times when this relationship is flipped, and the market is said to be in backwardation.Did you catch our show on how to determine Delta/Theta levels for your portfolio?
Market volatility, as measured by the VIX (spot volatility) and /VX (futures volatility) displays some very interesting patterns. First, volatility is almost always in a state of contraction, so when volatility does expand rapidly, it’s fighting against market pressure to contract back to lower levels quickly. But second, while future volatility as measured by /VX is normally higher than current volatility as measured by the VIX, also known as contango, there are times when this relationship is flipped, and the market is said to be in backwardation.Did you catch our show on how to determine Delta/Theta levels for your portfolio?
Whenever we put a trade on that has options, we have to decide between many strikes. Depending on the price, expiration cycle and the IV of the underlying, it may be difficult to know exactly how much risk we are taking with the strike we put on. Luckily, there is a way to standardize all of the above to a single metric that will base the risk off a “proportion of the the futures contract” and also give you some probabilisitic expectations.
Whenever we put a trade on that has options, we have to decide between many strikes. Depending on the price, expiration cycle and the IV of the underlying, it may be difficult to know exactly how much risk we are taking with the strike we put on. Luckily, there is a way to standardize all of the above to a single metric that will base the risk off a “proportion of the the futures contract” and also give you some probabilisitic expectations.
The strangle options strategy includes either buying or selling both a put and call option, usually containing the same amount of deltas. Our futures dude Frank shows you how to go from long or short strangles on stock options to futures options in an effort to use less buying power. Frank compares selling a strangle in the Gold ETF (GLD) options to Small Precious Metals futures (SPRE) options, and he finds that he can get the same opportunity in SPRE as GLD for about 1/3rd the cost.Learn more about translating your stock options strategies to futures options, and see if you can save money with these relatively new products.
The strangle options strategy includes either buying or selling both a put and call option, usually containing the same amount of deltas. Our futures dude Frank shows you how to go from long or short strangles on stock options to futures options in an effort to use less buying power. Frank compares selling a strangle in the Gold ETF (GLD) options to Small Precious Metals futures (SPRE) options, and he finds that he can get the same opportunity in SPRE as GLD for about 1/3rd the cost.Learn more about translating your stock options strategies to futures options, and see if you can save money with these relatively new products.
SKEW in an options market means velocity is perceived to be on the side where there is more premium. This doesn't mean the market is going to move that direction, but large moves are perceived to be on that side.
Tune in to learn how specific strategies play into this skew, resulting in cheaper setups for debit trades, or more premium collected for credit trades.
SKEW in an options market means velocity is perceived to be on the side where there is more premium. This doesn't mean the market is going to move that direction, but large moves are perceived to be on that side.
Tune in to learn how specific strategies play into this skew, resulting in cheaper setups for debit trades, or more premium collected for credit trades.
It is 21 DTE, so the tastytrade mechanics dictate evaluating each option position and make a decision. LIZ and JNY use cards that an amazing viewer provided and address each individual position.
Check out Liz and Jenny's take on the Big Lizard and Jade Lizard strategies.
It is 21 DTE, so the tastytrade mechanics dictate evaluating each option position and make a decision. LIZ and JNY use cards that an amazing viewer provided and address each individual position.
Check out Liz and Jenny's take on the Big Lizard and Jade Lizard strategies.
Liz and Jenny take live tweets with trade comments and ideas. The also start to play their favorite game roll it, hold it, close it!
Liz and Jenny take live tweets with trade comments and ideas. The also start to play their favorite game roll it, hold it, close it!
After testing most equity indexes and other assets and commodities, we find that an underlying with a strong and negative correlation with its IV, it seems the inverse relationship would imply put skew for that underlying. However, for an underlying that has a weak correlation with its IV, there is also insignificant option skew. This might indicate a symmetrical velocity of risk. Tom sees the potential, Tony disagrees, check out the debate on today's segment of Market Measures.
After testing most equity indexes and other assets and commodities, we find that an underlying with a strong and negative correlation with its IV, it seems the inverse relationship would imply put skew for that underlying. However, for an underlying that has a weak correlation with its IV, there is also insignificant option skew. This might indicate a symmetrical velocity of risk. Tom sees the potential, Tony disagrees, check out the debate on today's segment of Market Measures.
In 2017, Bitcoin rallied to all-time highs just under $20,000 followed by a collapse in January of 2018. The currency hit a low at $3,100 before returning to its previous all-time high in December of 2020. By November of 2022, the currency hit a new all-time high of $69,000 and has fallen nearly 60% since. Is history repeating itself? Errol and Kayla place bets on what the price of Bitcoin will be by the end of 2022!
In 2017, Bitcoin rallied to all-time highs just under $20,000 followed by a collapse in January of 2018. The currency hit a low at $3,100 before returning to its previous all-time high in December of 2020. By November of 2022, the currency hit a new all-time high of $69,000 and has fallen nearly 60% since. Is history repeating itself? Errol and Kayla place bets on what the price of Bitcoin will be by the end of 2022!
On today's show we examine how crypto impacts a traditional investment portfolio through the lens of volatility. We also discuss why crypto investment selection matters and how much investors can expect to make or lose given the historical performance of this relatively new asset class.
On today's show we examine how crypto impacts a traditional investment portfolio through the lens of volatility. We also discuss why crypto investment selection matters and how much investors can expect to make or lose given the historical performance of this relatively new asset class.
Let's talk about naked options strategies in smaller accounts! What are good undefined-risk strategies for traders with limited capital? What kind of buying power reduction should you look for? And as usual - any and all questions are welcomed and encouraged.Did you catch our show on how to determine Delta/Theta levels for your portfolio?
Let's talk about naked options strategies in smaller accounts! What are good undefined-risk strategies for traders with limited capital? What kind of buying power reduction should you look for? And as usual - any and all questions are welcomed and encouraged.Did you catch our show on how to determine Delta/Theta levels for your portfolio?
Pete and James discuss the new rallies in commodities and the lows seen in the equities market. Next they move into their main topic which is a deep dive into the opportunities high IV levels provide in futures trading. They wrap up with a discussion about the taxation of futures profits and why a trader may prefer them to ETF options.
Pete and James discuss the new rallies in commodities and the lows seen in the equities market. Next they move into their main topic which is a deep dive into the opportunities high IV levels provide in futures trading. They wrap up with a discussion about the taxation of futures profits and why a trader may prefer them to ETF options.
Buying power requirements (BPR) are the largest costs to trading options, and they can vary widely depending on the products you're looking to trade options on. Errol and Frank compare stock options to shares of stock, and they find that options cost much less per unit of exposure. Next, the guys rope in futures options, which can cost a fraction of stock options.Frank highlights some back-of-the-envelope math for pricing BPR on a whole slew of products while showing off the different costs for metals exposure using the Gold ETF (GLD) and Small Precious Metals futures (SPRE).
Buying power requirements (BPR) are the largest costs to trading options, and they can vary widely depending on the products you're looking to trade options on. Errol and Frank compare stock options to shares of stock, and they find that options cost much less per unit of exposure. Next, the guys rope in futures options, which can cost a fraction of stock options.Frank highlights some back-of-the-envelope math for pricing BPR on a whole slew of products while showing off the different costs for metals exposure using the Gold ETF (GLD) and Small Precious Metals futures (SPRE).
The tastytrade crew shares their trade ideas for the day! Mike buys a call diagonal spread in MRVL for earnings
Katie buys a call vertical spread in gold futures
Tune in to learn more and a live Q&A as well!
The tastytrade crew shares their trade ideas for the day! Mike buys a call diagonal spread in MRVL for earnings
Katie buys a call vertical spread in gold futures
Tune in to learn more and a live Q&A as well!
Liz and Jenny take off the DLTR, BA and AAL. They also take a look at today's earnings trades and look at trade ideas, comments and pictures from tweets containing #LIZJNY
Check out their easy to learn tutorial on the Jade Lizard strategy.
Liz and Jenny take off the DLTR, BA and AAL. They also take a look at today's earnings trades and look at trade ideas, comments and pictures from tweets containing #LIZJNY
Check out their easy to learn tutorial on the Jade Lizard strategy.
Trading futures Liz and Jenny style. Liz and Jenny bring back the /SMO oil calendar. This is a very capital efficient trade. The assumption is that the spread between oil will narrow.
Trading futures Liz and Jenny style. Liz and Jenny bring back the /SMO oil calendar. This is a very capital efficient trade. The assumption is that the spread between oil will narrow.
Editorial director Jeff Joseph joins Tom and Tony on today’s show to review the June issue of Luckbox Magazine titled, “Comebacks, Resets & Replays”.
In this issue, options trader extraordinaire Aneta Genova shares her most successful trade strategies and her very worst trading moment – surprise! it’s crude oil and silver. What’s trending in the markets? Pot stocks are plummeting, lacking the legislative reform they needed to soar, so we ask what’s next for the cannabis industry? The rise and fall of meme stocks and bitcoin are also discussed. Then columnist Vonetta Logan test drives Harley Davidson’s latest ADV bike for young urbanites, the Pan America. And finally, the issue goes completely retro and looks at the latest comeback kids in the rebranding world – pinball machines, the return of Stuckey's roadside oasis and pecan rolls, VW’s new Beetle Microbus and so much more. Check it out.
Editorial director Jeff Joseph joins Tom and Tony on today’s show to review the June issue of Luckbox Magazine titled, “Comebacks, Resets & Replays”.
In this issue, options trader extraordinaire Aneta Genova shares her most successful trade strategies and her very worst trading moment – surprise! it’s crude oil and silver. What’s trending in the markets? Pot stocks are plummeting, lacking the legislative reform they needed to soar, so we ask what’s next for the cannabis industry? The rise and fall of meme stocks and bitcoin are also discussed. Then columnist Vonetta Logan test drives Harley Davidson’s latest ADV bike for young urbanites, the Pan America. And finally, the issue goes completely retro and looks at the latest comeback kids in the rebranding world – pinball machines, the return of Stuckey's roadside oasis and pecan rolls, VW’s new Beetle Microbus and so much more. Check it out.
Worries about inflation, slowing growth, and rising interest rates has led many investors to move away from growth stocks and look for dividends and stability.Real Estate Investment Trusts (REITs) have been a place where investors look for those aspects, with high dividend yields, liquidity, and the potential to improve diversification being key characteristics of REITs.However, with rates expected to increase for the remainder of the year, there is growing concern about the impact these increases will have on REITs. What can we expect?Join Tom and Tony to find out!
Worries about inflation, slowing growth, and rising interest rates has led many investors to move away from growth stocks and look for dividends and stability.Real Estate Investment Trusts (REITs) have been a place where investors look for those aspects, with high dividend yields, liquidity, and the potential to improve diversification being key characteristics of REITs.However, with rates expected to increase for the remainder of the year, there is growing concern about the impact these increases will have on REITs. What can we expect?Join Tom and Tony to find out!
“Algorithmic trading” has been a buzzword in the financial space for decades. With computing power and financial data becoming cheaper and more accessible, new algorithmic trading opportunities are emerging in the retail market. What is algorithmic trading, and what are the pros and cons for retail traders? If you have requests for any topics, reach out to Julia (@FinancePhoton) or Eddie (@ERajcevic11) on Twitter! You can also submit ideas through this form: https://www.tastytrade.com/alp...
“Algorithmic trading” has been a buzzword in the financial space for decades. With computing power and financial data becoming cheaper and more accessible, new algorithmic trading opportunities are emerging in the retail market. What is algorithmic trading, and what are the pros and cons for retail traders? If you have requests for any topics, reach out to Julia (@FinancePhoton) or Eddie (@ERajcevic11) on Twitter! You can also submit ideas through this form: https://www.tastytrade.com/alp...
Jermal, Errol, and Kay share their favorite futures products to get involved with. Jermal also explains the different months that the futures contracts expire, and give them a few tips when deciding on a month to choose.
Jermal, Errol, and Kay share their favorite futures products to get involved with. Jermal also explains the different months that the futures contracts expire, and give them a few tips when deciding on a month to choose.
RL, JWN, and URBN attempt to end retail rout. Hike fast, break things, and apologize later. ARKK short interest drops from 17% to 9.2%. Learn more in today's episode with Jermal.
RL, JWN, and URBN attempt to end retail rout. Hike fast, break things, and apologize later. ARKK short interest drops from 17% to 9.2%. Learn more in today's episode with Jermal.
No one can consistently time markets which is why buying low and selling high doesn’t work. It’s why investors are panicking now. They didn’t have the foresight to sell at the top or at least acknowledge markets can come down. Social media companies in particular have enjoyed a run of ever increasing valuations.
Today, investors are panicking as to whether they should hold on or sell. What caused this and how does it end. Tune in to hear Tom and Dylan discuss.
No one can consistently time markets which is why buying low and selling high doesn’t work. It’s why investors are panicking now. They didn’t have the foresight to sell at the top or at least acknowledge markets can come down. Social media companies in particular have enjoyed a run of ever increasing valuations.
Today, investors are panicking as to whether they should hold on or sell. What caused this and how does it end. Tune in to hear Tom and Dylan discuss.
We recall from a few segments ago that all trades are combinations of: desired profit, amount risked, and probability of profit (POP). How do we adjust futures and futures options trades to get a different ratio of the three variables? What are the tradeoffs? Anton and Pete walk through how to think about the “tradeoff” of a trade.
We recall from a few segments ago that all trades are combinations of: desired profit, amount risked, and probability of profit (POP). How do we adjust futures and futures options trades to get a different ratio of the three variables? What are the tradeoffs? Anton and Pete walk through how to think about the “tradeoff” of a trade.
As equities and cryptocurrencies take a breather, Frank highlights forex and commodity markets that are moving outside their normal range. He cooks up several trade ideas in US dollar and euro to get diversified foreign exchange exposure in his portfolio, and then Frank opens up the Small Metals (SPRE) options page to size up a few different long gold and silver plays.Finally, our futures dude takes a long, hard look at natural gas as the commodity makes a new high. Frank shows all the opportunity of the out-the-money call side of the market exhibiting massive skew before choosing to define his risk with a short call spread given natural gas' ability to double in price.
As equities and cryptocurrencies take a breather, Frank highlights forex and commodity markets that are moving outside their normal range. He cooks up several trade ideas in US dollar and euro to get diversified foreign exchange exposure in his portfolio, and then Frank opens up the Small Metals (SPRE) options page to size up a few different long gold and silver plays.Finally, our futures dude takes a long, hard look at natural gas as the commodity makes a new high. Frank shows all the opportunity of the out-the-money call side of the market exhibiting massive skew before choosing to define his risk with a short call spread given natural gas' ability to double in price.
The wheel strategy consists of selling a put to take shares at a lower price than the market now, and then converting those shares into a covered call by selling a call against the new shares of stock.
Tune in to learn how placing the short call at or above the breakeven price results in differing degrees of offense vs defense.
The wheel strategy consists of selling a put to take shares at a lower price than the market now, and then converting those shares into a covered call by selling a call against the new shares of stock.
Tune in to learn how placing the short call at or above the breakeven price results in differing degrees of offense vs defense.
Ronny Sage is the Founder & CEO of ShoppingGives, which is a social platform that allows companies of all sizes to make charitable donations through customer purchases. Their technology enables retailers to donate a percentage of each purchase to a non-profit that the customer selects during checkout, building customer loyalty and trust through charitable giving. Plus, to make it as seamless as possible, they do all the work - taking care of donation tracking, reimbursement, reconciliation, and tax-deductible receipts.
Ronny Sage is the Founder & CEO of ShoppingGives, which is a social platform that allows companies of all sizes to make charitable donations through customer purchases. Their technology enables retailers to donate a percentage of each purchase to a non-profit that the customer selects during checkout, building customer loyalty and trust through charitable giving. Plus, to make it as seamless as possible, they do all the work - taking care of donation tracking, reimbursement, reconciliation, and tax-deductible receipts.
In principle, underlying prices determine the value of options but derivatives don't affect the prices of underlyings. In the real world, however, market makers delta-hedging means that retail option trading having effects that ripple onto the underlyings.
Today, Jacob joins Tom and Tony to explore this relationship and discuss how traders can account for the predictable actions of market makers.
In principle, underlying prices determine the value of options but derivatives don't affect the prices of underlyings. In the real world, however, market makers delta-hedging means that retail option trading having effects that ripple onto the underlyings.
Today, Jacob joins Tom and Tony to explore this relationship and discuss how traders can account for the predictable actions of market makers.
Tom and Tony fill six trades with calls, puts, and strangles. Featuring TTD, BX, Crude Oil, and more!
Tom and Tony fill six trades with calls, puts, and strangles. Featuring TTD, BX, Crude Oil, and more!
Premium sellers are constantly seeking high-theta trades in order to increase their daily income. But there are some risks associated with it. So what are the possible solutions to improving our daily theta decay without too many side effects? Join Tom and Tony to find out!
Premium sellers are constantly seeking high-theta trades in order to increase their daily income. But there are some risks associated with it. So what are the possible solutions to improving our daily theta decay without too many side effects? Join Tom and Tony to find out!
On this episode we dive into the recent performance of crypto, cross-asset correlations, using volatility to model short-term price ranges, and the macroeconomic drivers behind the recent crash in crypto prices.
On this episode we dive into the recent performance of crypto, cross-asset correlations, using volatility to model short-term price ranges, and the macroeconomic drivers behind the recent crash in crypto prices.
SNAP pre-announce pulls it below IPO price. New home sales miss by a mile: 591k vs. 749k. What does the dip in interest rates signify?
SNAP pre-announce pulls it below IPO price. New home sales miss by a mile: 591k vs. 749k. What does the dip in interest rates signify?
Whenever we roll a position, our primary objective is to reduce overall risk on the position. This risk reduction might come in the form of wider break-even points, less directional risk, or even less exposure to the Greeks. But whether we roll a position up, down, or out, without question, risk mitigation is the top priority.Did you catch our show on how to determine Delta/Theta levels for your portfolio?
Whenever we roll a position, our primary objective is to reduce overall risk on the position. This risk reduction might come in the form of wider break-even points, less directional risk, or even less exposure to the Greeks. But whether we roll a position up, down, or out, without question, risk mitigation is the top priority.Did you catch our show on how to determine Delta/Theta levels for your portfolio?
Options trading, like stock investing, can come down to how much you return on your investment, so futures dudes Jermal and Frank compare the profit potential of several strategies and products to find the best ROI. Collecting more $$$ for a short premium strategy like the short strangle isn't helpful if the buying power required is astronomical. The guys find that option strategies can produce much greater returns with options on futures than options on stocks, and they use US dollar for a direct comparison.Using the US Dollar ETF (UUP) you can get around 5-10% ROI for short options, while Small US Dollar (SFX) futures offer between 25-50% ROI on their options. Check out the comparison of stock options for futures options, and learn more about trading options on futures.
Options trading, like stock investing, can come down to how much you return on your investment, so futures dudes Jermal and Frank compare the profit potential of several strategies and products to find the best ROI. Collecting more $$$ for a short premium strategy like the short strangle isn't helpful if the buying power required is astronomical. The guys find that option strategies can produce much greater returns with options on futures than options on stocks, and they use US dollar for a direct comparison.Using the US Dollar ETF (UUP) you can get around 5-10% ROI for short options, while Small US Dollar (SFX) futures offer between 25-50% ROI on their options. Check out the comparison of stock options for futures options, and learn more about trading options on futures.
With wider iron condors, we have the ability to roll just the short option to have more of a strangle feel compared to a narrow iron condor.
Tune in to see how the risk profiles differ, and how we may have more flexibility with this sort of adjustment over rolling the entire spread!
With wider iron condors, we have the ability to roll just the short option to have more of a strangle feel compared to a narrow iron condor.
Tune in to see how the risk profiles differ, and how we may have more flexibility with this sort of adjustment over rolling the entire spread!
Anton joins Liz and Jenny as they break down the different reasons that traders choose what it is that they trade. IS it liquidity, volatility, or something else entirely?
Anton joins Liz and Jenny as they break down the different reasons that traders choose what it is that they trade. IS it liquidity, volatility, or something else entirely?
Whenever there is a non-symmetrical bias or assumption about a certain underlying (like SPY), it is easy to forget that those asymmetries are already priced into the underlying. The asymmetries are not visible when looking at the underlying price, but are observable in the options chain. For SPY, we know that upside moves tend to be smaller and less volatile than downside moves, and we see that reflected in the options.
Whenever there is a non-symmetrical bias or assumption about a certain underlying (like SPY), it is easy to forget that those asymmetries are already priced into the underlying. The asymmetries are not visible when looking at the underlying price, but are observable in the options chain. For SPY, we know that upside moves tend to be smaller and less volatile than downside moves, and we see that reflected in the options.
Beta is a unique Greek. Rather than being derived from the Black-Scholes model, it is computed using historical regressions to find the linear relationship between given underlyings and market benchmarks. Today, Tom and Tony look at the data to see how much beta has varied over the years and get an idea of how reliable these correlations really are.
Beta is a unique Greek. Rather than being derived from the Black-Scholes model, it is computed using historical regressions to find the linear relationship between given underlyings and market benchmarks. Today, Tom and Tony look at the data to see how much beta has varied over the years and get an idea of how reliable these correlations really are.
Tom, Tony, and Victor discuss whether the cost of braces is a scam, Victor's dress choices when dealing with unexpected temperature changes in the studio and if Tom is the financial services version of Larry David, wild conspiracy theories and offending everyone he comes in contact with. They also discuss a big picture overview of whether Snapchat earnings announcements make or break the price of digital advertising stock. Is everyone looking to Snapchat to determine market movements in Facebook/Meta, Google, etc.?
Tom, Tony, and Victor discuss whether the cost of braces is a scam, Victor's dress choices when dealing with unexpected temperature changes in the studio and if Tom is the financial services version of Larry David, wild conspiracy theories and offending everyone he comes in contact with. They also discuss a big picture overview of whether Snapchat earnings announcements make or break the price of digital advertising stock. Is everyone looking to Snapchat to determine market movements in Facebook/Meta, Google, etc.?
Today Errol and Kay recap their trades from the previous week, and put on a different earnings trade. They also discuss how they want to start going more directional on some earnings trades. With such a new market environment from last year, the yutes are doing their best to adapt.
Today Errol and Kay recap their trades from the previous week, and put on a different earnings trade. They also discuss how they want to start going more directional on some earnings trades. With such a new market environment from last year, the yutes are doing their best to adapt.
Banks rise on back of JPM Analyst Day. AVGO in talks to acquire VMW. Treasury vol and U.S. Dollar rolling over.
Banks rise on back of JPM Analyst Day. AVGO in talks to acquire VMW. Treasury vol and U.S. Dollar rolling over.
You’ve likely heard before that an in-the-money (ITM) Short Put is basically just like long stock, at some point. As we look at our deep ITM Short Put position in WMT, we explain how that happens, by looking at the deltas of the position relative to the deltas on a stock position. In doing so, we see that our WMT position is indeed not much different from a purely long stock position.Did you catch our show on how to determine Delta/Theta levels for your portfolio?
You’ve likely heard before that an in-the-money (ITM) Short Put is basically just like long stock, at some point. As we look at our deep ITM Short Put position in WMT, we explain how that happens, by looking at the deltas of the position relative to the deltas on a stock position. In doing so, we see that our WMT position is indeed not much different from a purely long stock position.Did you catch our show on how to determine Delta/Theta levels for your portfolio?
Worst performers can sometimes yield the highest future returns if the market is able to bounce back, but they can also continue their descent. Mike and Frank dig into their past experiences with "worst" stocks to find examples of trades that were quite profitable and ones that were not. The guys explore the history of energy and cannabis stocks, and they try to find if crypto stocks will stand the test of time as the former did.Finally, futures dudes Mike and Frank talk about buying an equity index futures contract like Small Cryptocurrency (SCCX) futures as opposed to single stocks in the space so as to diversify and decrease risk while trying to play the tech, crypto stock bounce.
Worst performers can sometimes yield the highest future returns if the market is able to bounce back, but they can also continue their descent. Mike and Frank dig into their past experiences with "worst" stocks to find examples of trades that were quite profitable and ones that were not. The guys explore the history of energy and cannabis stocks, and they try to find if crypto stocks will stand the test of time as the former did.Finally, futures dudes Mike and Frank talk about buying an equity index futures contract like Small Cryptocurrency (SCCX) futures as opposed to single stocks in the space so as to diversify and decrease risk while trying to play the tech, crypto stock bounce.
When rolling iron condors defensively, you do reduce max loss by collecting more credit, but you reduce your profit zone dramatically and can put yourself in a very low probability scenario.
Tune in to learn the tradeoffs of rolling up and down within the same expiration cycle with iron condors, and why we don't invert them!
When rolling iron condors defensively, you do reduce max loss by collecting more credit, but you reduce your profit zone dramatically and can put yourself in a very low probability scenario.
Tune in to learn the tradeoffs of rolling up and down within the same expiration cycle with iron condors, and why we don't invert them!
In the realm of options trading, delta is one of the terms that has a variety of meanings and uses.Most traders use delta to refer to an options “moneyness”, others use it to determine profit and loss based on changes in the underlying, and what we at tasty use most frequently is delta’s ability to approximate the probability of profit. To roughly determine the probability of profit for a short options strategy, we can take one minus the delta of the option.However, are there any limiting factors on delta’s predictive ability? What may cause delta’s accuracy to fluctuate?Join Tom and Tony to find out!
In the realm of options trading, delta is one of the terms that has a variety of meanings and uses.Most traders use delta to refer to an options “moneyness”, others use it to determine profit and loss based on changes in the underlying, and what we at tasty use most frequently is delta’s ability to approximate the probability of profit. To roughly determine the probability of profit for a short options strategy, we can take one minus the delta of the option.However, are there any limiting factors on delta’s predictive ability? What may cause delta’s accuracy to fluctuate?Join Tom and Tony to find out!
It’s long been shown in academic research that most investors are risk-averse to some degree. But interestingly today, we learn that some academics also posit that long-term investors become more risk-averse, the more frequently they check their portfolios. As tastytraders who are well-equipped to handle different market environments, we suggest that more frequent portfolio monitoring actually leads to lower levels of risk-aversion.Did you catch our recent video on how to determine Delta/Theta levels for your portfolio?
It’s long been shown in academic research that most investors are risk-averse to some degree. But interestingly today, we learn that some academics also posit that long-term investors become more risk-averse, the more frequently they check their portfolios. As tastytraders who are well-equipped to handle different market environments, we suggest that more frequent portfolio monitoring actually leads to lower levels of risk-aversion.Did you catch our recent video on how to determine Delta/Theta levels for your portfolio?
Songfinch is a personalized music marketplace, their platform enables anyone to discover and collaborate with thousands of professional musicians to create custom, one-of-a-kind songs. They've grown nearly 2,000% since 2020 with more than 1,000 artists on the platform creating over 100,000 songs. Scott Kitunis the Co-founder of Songfinch. Scott Kitun comes on the show to talk about the company's growth in the last couple of years.
Songfinch is a personalized music marketplace, their platform enables anyone to discover and collaborate with thousands of professional musicians to create custom, one-of-a-kind songs. They've grown nearly 2,000% since 2020 with more than 1,000 artists on the platform creating over 100,000 songs. Scott Kitunis the Co-founder of Songfinch. Scott Kitun comes on the show to talk about the company's growth in the last couple of years.
IV today seems to be partially affected by what the IV vs. the actual move was in the previous time period. Forward IV seems to be very flat, suggesting that the short term IV environment is the same as longer term.
IV today seems to be partially affected by what the IV vs. the actual move was in the previous time period. Forward IV seems to be very flat, suggesting that the short term IV environment is the same as longer term.
上期节目我们发现了铁鹰组合如果使用不同翅膀宽度会造长期成绩效表现的巨大差异，这个差异来自于策略本身所产生的波动率。这期节目我们就要来详细分析产生这个波动率背后的三个根本原因。
In the last episode, we discovered that by using varying widths of the wings, the long-term performances of the Iron Condors could be completely different. We also found that the reason that causes this is the volatility generated by each strategy. This time, we try to dive a little bit deeper and explain the three main reasons behind this high volatility.
Errol and Kay are joined by Katie to explain the gold & silver ratio. Gold and silver are often traded as pairs because they are highly correlated. Whenever there is an extreme to one side there may be a trade opportunity!
Errol and Kay are joined by Katie to explain the gold & silver ratio. Gold and silver are often traded as pairs because they are highly correlated. Whenever there is an extreme to one side there may be a trade opportunity!
Jermal and Michael “Dr. Data” discuss the notion of T.I.N.A. The acronym refers to "there is no alternative", which is a phrase that describes continually rising markets due to the inability to invest in other assets. They also talk about their personal bear market trading experiences.
Jermal and Michael “Dr. Data” discuss the notion of T.I.N.A. The acronym refers to "there is no alternative", which is a phrase that describes continually rising markets due to the inability to invest in other assets. They also talk about their personal bear market trading experiences.
Sometimes rolling an in-the-money (ITM) strategy forward can be challenging when the same strikes are not available in the next cycle. In this situation, you will often have to analyze whether or not it’s worth it to adjust the strike and alter the intrinsic value of the position. As we examine a potential roll on our KR position, we work through how to interpret the roll price, especially when it’s a net debit.Did you catch our show on how to determine Delta/Theta levels for your portfolio?
Sometimes rolling an in-the-money (ITM) strategy forward can be challenging when the same strikes are not available in the next cycle. In this situation, you will often have to analyze whether or not it’s worth it to adjust the strike and alter the intrinsic value of the position. As we examine a potential roll on our KR position, we work through how to interpret the roll price, especially when it’s a net debit.Did you catch our show on how to determine Delta/Theta levels for your portfolio?
When you are trading futures or any other product, it is easy to get into a mindset of trying to “beat the market”. And although that may be possible solely from a returns perspective, it never comes free. The nice part about efficient markers is that all prices and risk are fair, and you can tell what risk a product is currently facing by looking at the IVs of options for any product that you are trading.
When you are trading futures or any other product, it is easy to get into a mindset of trying to “beat the market”. And although that may be possible solely from a returns perspective, it never comes free. The nice part about efficient markers is that all prices and risk are fair, and you can tell what risk a product is currently facing by looking at the IVs of options for any product that you are trading.
Mike and Frank use the current gold market trading around its lows to compare trading the covered call strategy using options on stock or futures. The guys show the setup for the strategy with GLD ETF shares and calls, and then they display how you might do the same with SPRE futures and options. Mike speaks to the simplicity of trading covered calls in futures, and then he contends that trading the futures options version is a lot less costly than the stock options version from a capital requirement (or buying power) perspective.Learn how to trade options on futures with the classic covered call strategy on Small Exchange futures.
Mike and Frank use the current gold market trading around its lows to compare trading the covered call strategy using options on stock or futures. The guys show the setup for the strategy with GLD ETF shares and calls, and then they display how you might do the same with SPRE futures and options. Mike speaks to the simplicity of trading covered calls in futures, and then he contends that trading the futures options version is a lot less costly than the stock options version from a capital requirement (or buying power) perspective.Learn how to trade options on futures with the classic covered call strategy on Small Exchange futures.
Rolling strangles up and down in the same expiration can adjust your delta, and when moving out in time you get extra extrinsic value that you can work with to adjust strikes further. Tune in to learn how moving strikes vertically and out in time adjusts your risk profile!
Rolling strangles up and down in the same expiration can adjust your delta, and when moving out in time you get extra extrinsic value that you can work with to adjust strikes further. Tune in to learn how moving strikes vertically and out in time adjusts your risk profile!
Anton joins Liz and brings a study detailing moves for the next 3 days after 2, 3 or 4 standard deviation moves. The pair discuss the pros and cons for going with or against the market moves.
Anton joins Liz and brings a study detailing moves for the next 3 days after 2, 3 or 4 standard deviation moves. The pair discuss the pros and cons for going with or against the market moves.
There was some evidence to suggest a reversal in price action, albeit small, three days following a large up or down move. However, because the average reversal was so small relative to the big move preceding it, the only valid conclusion would be that “if you are going to pick a side, it may as well be the reversal since it seems to be a non-50/50 result.” But it is most certainly not a guarantee.
There was some evidence to suggest a reversal in price action, albeit small, three days following a large up or down move. However, because the average reversal was so small relative to the big move preceding it, the only valid conclusion would be that “if you are going to pick a side, it may as well be the reversal since it seems to be a non-50/50 result.” But it is most certainly not a guarantee.
S&P 500 down 18% over 96 days; worst start since 1940. SIX moves over 2% in the S&P 500 this month. SKEW touched March 2020 levels in Thursday’s session; No panic Latest bitcoin drawdown of 60% is not unusual. USD finally has a down week; biggest one day drop since 2020….. Back near FOMC spike.
Join Tom, Tony and Jermal as they discuss the reason why on This Week in Stocks.
S&P 500 down 18% over 96 days; worst start since 1940. SIX moves over 2% in the S&P 500 this month. SKEW touched March 2020 levels in Thursday’s session; No panic Latest bitcoin drawdown of 60% is not unusual. USD finally has a down week; biggest one day drop since 2020….. Back near FOMC spike.
Join Tom, Tony and Jermal as they discuss the reason why on This Week in Stocks.
The crypto market crash has active investors wondering what lies ahead. Buy the dip? Will the dip keep dipping? Fortunately, tastytrade’s global head of digital assets Ryan Grace has no-holds-barred answers about bitcoin, ethereum, and other altcoins—and he tells all on this episode of The Prediction Trade. Ryan also wades into Kalshi’s “price of oil” market, and the crew covers two new “luckbox” trades.
The crypto market crash has active investors wondering what lies ahead. Buy the dip? Will the dip keep dipping? Fortunately, tastytrade’s global head of digital assets Ryan Grace has no-holds-barred answers about bitcoin, ethereum, and other altcoins—and he tells all on this episode of The Prediction Trade. Ryan also wades into Kalshi’s “price of oil” market, and the crew covers two new “luckbox” trades.
Staking is an essential part in keeping a proof-of-stake blockchain running. Individuals, known as validators, who verify transactions on a proof-of-stake blockchain must lock up some of that networks coin. The locking up of coins is what is known as staking, and ensures that validators are working in the best interest of the entire network since they have their "skin in the game".For everyday investors, staking is similar to receiving dividends on stock holdings.
Staking is an essential part in keeping a proof-of-stake blockchain running. Individuals, known as validators, who verify transactions on a proof-of-stake blockchain must lock up some of that networks coin. The locking up of coins is what is known as staking, and ensures that validators are working in the best interest of the entire network since they have their "skin in the game".For everyday investors, staking is similar to receiving dividends on stock holdings.
“Retail Wreck” saw 1.5Tn wiped from S&P 500. CSCO latest company to falter due to current conditions. Fed has reaffirmed tighter monetary policy ahead.
“Retail Wreck” saw 1.5Tn wiped from S&P 500. CSCO latest company to falter due to current conditions. Fed has reaffirmed tighter monetary policy ahead.
An Option Strategy Live Q&A, where any and all questions are welcomed, and nothing is off limits. Today, we answer questions about the disastrous WMT earnings from the other day, choosing between Short Puts and Put Ratio Spreads, and whether or not we’ve reached a near-term bottom in the market.
An Option Strategy Live Q&A, where any and all questions are welcomed, and nothing is off limits. Today, we answer questions about the disastrous WMT earnings from the other day, choosing between Short Puts and Put Ratio Spreads, and whether or not we’ve reached a near-term bottom in the market.
Pete and James give a brief rundown of how the markets are moving this Thursday before jumping into their main topic – how to calculate the gold/silver ratio and what it means. They discussed how it moved in the last 10 years and compared it to the most recent movements in 2020 and 2022.
They explain how traders can trade the g/s ratio utilizing either CME gold and silver contracts, or gold and silver micro contracts. They emphasize how traders must take this into account when sizing pair trades due to the higher volatility of silver.
Pete and James give a brief rundown of how the markets are moving this Thursday before jumping into their main topic – how to calculate the gold/silver ratio and what it means. They discussed how it moved in the last 10 years and compared it to the most recent movements in 2020 and 2022.
They explain how traders can trade the g/s ratio utilizing either CME gold and silver contracts, or gold and silver micro contracts. They emphasize how traders must take this into account when sizing pair trades due to the higher volatility of silver.
Prices for cryptocurrencies like Bitcoin (BTC) have been nearly cut in half posing the question, "is it time to invest in crypto?" Experienced traders Errol and Frank talk about the price action in Bitcoin, and they compare it to the crypto stock market Small Cryptocurrency (SCCX). They find that Small Crypto futures could pose a better value than BTC given that the former is down almost 60% in the same time that Bitcoin is down only 45%.The conversation continues with a measurement of historical lows in both markets. Frank speaks to why he might favor the potential in crypto stocks versus crypto itself, and he and Errol conclude by talking about where they might enter and exit this long crypto stock position.
Prices for cryptocurrencies like Bitcoin (BTC) have been nearly cut in half posing the question, "is it time to invest in crypto?" Experienced traders Errol and Frank talk about the price action in Bitcoin, and they compare it to the crypto stock market Small Cryptocurrency (SCCX). They find that Small Crypto futures could pose a better value than BTC given that the former is down almost 60% in the same time that Bitcoin is down only 45%.The conversation continues with a measurement of historical lows in both markets. Frank speaks to why he might favor the potential in crypto stocks versus crypto itself, and he and Errol conclude by talking about where they might enter and exit this long crypto stock position.
The tastytrade crew shares their trade ideas for the day! Mike buys a call diagonal spread in AMAT for earnings
Nick sells a strangle in AA
Katie buys the /STIX small exchange contract
Tune in to learn more and a live Q&A as well!
The tastytrade crew shares their trade ideas for the day! Mike buys a call diagonal spread in AMAT for earnings
Nick sells a strangle in AA
Katie buys the /STIX small exchange contract
Tune in to learn more and a live Q&A as well!
It's the Thursday prior to monthly expiration Friday, so it's time to roll all the small exchange futures from K to M. /SMO is the only small future that doesn't have to roll on expiration week. Crude Oil has been staying in a range, so Liz and Jenny decide to sell a July iron condor in /CL.
It's the Thursday prior to monthly expiration Friday, so it's time to roll all the small exchange futures from K to M. /SMO is the only small future that doesn't have to roll on expiration week. Crude Oil has been staying in a range, so Liz and Jenny decide to sell a July iron condor in /CL.
The expected price range of an asset is the price range we expect the asset’s future price to stay within with 68% certainty. The expected range can give traders an idea of how to structure short premium trades that are most likely to be profitable, but the estimate of expected range tends to change depending on which calculation is used. Join Tom, Tony and Julia as they discuss the pros and cons of each.
The expected price range of an asset is the price range we expect the asset’s future price to stay within with 68% certainty. The expected range can give traders an idea of how to structure short premium trades that are most likely to be profitable, but the estimate of expected range tends to change depending on which calculation is used. Join Tom, Tony and Julia as they discuss the pros and cons of each.
With a combined market cap of over $150 billion, stablecoins are becoming an important piece of the digital asset market. While they come in many different varieties, such as fiat-backed or crypto-backed, on today’s episode of Alpha Bytes, we will dive into the algorithmic stablecoins. Tom, Tony, and Eddie will discuss what they are, the potential risks associated with them, and what exactly happened to the largest algorithmic stablecoin, Terra’s UST. If you have requests for any topics, reach out to Julia (@FinancePhoton) or Eddie (@ERajcevic11) on Twitter! You can also submit ideas through this form: https://www.tastytrade.com/alpha-bytes-topics.
With a combined market cap of over $150 billion, stablecoins are becoming an important piece of the digital asset market. While they come in many different varieties, such as fiat-backed or crypto-backed, on today’s episode of Alpha Bytes, we will dive into the algorithmic stablecoins. Tom, Tony, and Eddie will discuss what they are, the potential risks associated with them, and what exactly happened to the largest algorithmic stablecoin, Terra’s UST. If you have requests for any topics, reach out to Julia (@FinancePhoton) or Eddie (@ERajcevic11) on Twitter! You can also submit ideas through this form: https://www.tastytrade.com/alpha-bytes-topics.
@jermalchandler takes a look at the day's action in $XLP, $TGT, $WMT and others in a walkthrough on the @tastyworks platform.
@jermalchandler takes a look at the day's action in $XLP, $TGT, $WMT and others in a walkthrough on the @tastyworks platform.
Mike Butler joins Errol and Kayla on Todays Assignment to explain Vega in 3 sentences. Mike explains how you can calculate the price of an option all else equal at expiration depending on how much implied volatility has moved. The better your understanding of the greeks, the more educated decisions you will be able to make.
Mike Butler joins Errol and Kayla on Todays Assignment to explain Vega in 3 sentences. Mike explains how you can calculate the price of an option all else equal at expiration depending on how much implied volatility has moved. The better your understanding of the greeks, the more educated decisions you will be able to make.
The power of the workforce has been on dwindling in the last 40 years. Pre-pandemic strategies gave way to giving labor the upper hand as they revisited their relationships with employers. Pay up or break up. Perks and working from home were a means of attracting those elusive super creatives. After all, not everyone can be a creative Rockstar.
Post-pandemic labor conversations are very different now. A recession seems imminent, deals that went sour, bad decisions made in a bull market, and the new headline of the hour is that companies are tightening their belts in anticipation of an economic fallout. Did labor waste an opportunity or are they recovering from a bull market hangover?
The power of the workforce has been on dwindling in the last 40 years. Pre-pandemic strategies gave way to giving labor the upper hand as they revisited their relationships with employers. Pay up or break up. Perks and working from home were a means of attracting those elusive super creatives. After all, not everyone can be a creative Rockstar.
Post-pandemic labor conversations are very different now. A recession seems imminent, deals that went sour, bad decisions made in a bull market, and the new headline of the hour is that companies are tightening their belts in anticipation of an economic fallout. Did labor waste an opportunity or are they recovering from a bull market hangover?
Due to the liquidity and flexibility of treasury futures, traders can implement spreads on the yield curve. This allows them to express opinions on fluctuations between different yields without being outright long or short treasuries. This flexibility comes with the caveat that traders must be cognizant of the different volatilities seen across the treasury products. This volatility can be accounted for by the sensitivity of each product to movement in yields. This is measured by the Dollar Value of a Basis Point (DV01) which measures the price impact of a ONE basis point move in yield.Tune in as Pete and Jermal explain in more depth!
Due to the liquidity and flexibility of treasury futures, traders can implement spreads on the yield curve. This allows them to express opinions on fluctuations between different yields without being outright long or short treasuries. This flexibility comes with the caveat that traders must be cognizant of the different volatilities seen across the treasury products. This volatility can be accounted for by the sensitivity of each product to movement in yields. This is measured by the Dollar Value of a Basis Point (DV01) which measures the price impact of a ONE basis point move in yield.Tune in as Pete and Jermal explain in more depth!
Interest rates have long been considered mean-reverting assets - markets whose prices tend to oscillate around a central value over time - by traders. Futures traders Katie and Frank apply this theory to a US Treasury Yield Curve that's currently near multi-year highs to decide if this is the top in rates. Katie speaks to how it might depend on the trader and the time frame, and Frank highlights a few strategies for getting long or short interest rates using Small 10YR Yield (S10Y) futures.Are interest rates a buy or a sell? While it may depend on the trader and the day, it's always good to have the decade's worth of data on rates that Katie and Frank provide here.
Interest rates have long been considered mean-reverting assets - markets whose prices tend to oscillate around a central value over time - by traders. Futures traders Katie and Frank apply this theory to a US Treasury Yield Curve that's currently near multi-year highs to decide if this is the top in rates. Katie speaks to how it might depend on the trader and the time frame, and Frank highlights a few strategies for getting long or short interest rates using Small 10YR Yield (S10Y) futures.Are interest rates a buy or a sell? While it may depend on the trader and the day, it's always good to have the decade's worth of data on rates that Katie and Frank provide here.
Short puts can be manipulated in many different ways, especially when rolling out in time. Today they crew takes a look at rolling offensively and defensively, with visual representations of how your risk profile changes.
Short puts can be manipulated in many different ways, especially when rolling out in time. Today they crew takes a look at rolling offensively and defensively, with visual representations of how your risk profile changes.
Dollop Coffee Company started as one tiny little cafe and has turned itself into a chain of 19 neighborhood coffee shops that everybody is talking about. They concentrate on building community spaces and bringing people together for coffee and more. Dan Weiss is the Founder & CEO. He also has another side to him - he is a rapper known as Verbal Kent and has released over 10 albums and toured Europe multiple times.
Dollop Coffee Company started as one tiny little cafe and has turned itself into a chain of 19 neighborhood coffee shops that everybody is talking about. They concentrate on building community spaces and bringing people together for coffee and more. Dan Weiss is the Founder & CEO. He also has another side to him - he is a rapper known as Verbal Kent and has released over 10 albums and toured Europe multiple times.
The Black-Scholes model revolutionized the trading world when it was introduced by positing an unobservable constant volatility to describe price uncertainty. But in 1987, the market delivered a costly refutation of that idea. Today, Jacob joins Tom and Tony to explore how volatility was originally understood, is thought about today, and we should think of implied volatility now that we know Black-Scholes is not literally true.
The Black-Scholes model revolutionized the trading world when it was introduced by positing an unobservable constant volatility to describe price uncertainty. But in 1987, the market delivered a costly refutation of that idea. Today, Jacob joins Tom and Tony to explore how volatility was originally understood, is thought about today, and we should think of implied volatility now that we know Black-Scholes is not literally true.
Theta, by definition, is a measure of the rate of decline in the value of an option due to the passage of time. Theta value increases when the expiration date is close and the stock price is close to the ATM strike. But at the same time, the Gamma risk increases too. Join Tom and Tony as they discuss Theta and why traders should not try to catch high Theta value.
Theta, by definition, is a measure of the rate of decline in the value of an option due to the passage of time. Theta value increases when the expiration date is close and the stock price is close to the ATM strike. But at the same time, the Gamma risk increases too. Join Tom and Tony as they discuss Theta and why traders should not try to catch high Theta value.
Smart contracts are pieces of code that sit within a blockchain to automate user interaction. They remove the need for an intermediary, lead to automatic execution, provide predictable outcomes, and give full transparency into the agreements of all users.Smart contracts are used in nearly every digital application that interacts with the blockchain, whether it be DeFi, NFTs, or even insurance claims.Join Anton and Eddie as they further discuss the intricacies of smart contracts, one of the foundations for decentralized applications!
Smart contracts are pieces of code that sit within a blockchain to automate user interaction. They remove the need for an intermediary, lead to automatic execution, provide predictable outcomes, and give full transparency into the agreements of all users.Smart contracts are used in nearly every digital application that interacts with the blockchain, whether it be DeFi, NFTs, or even insurance claims.Join Anton and Eddie as they further discuss the intricacies of smart contracts, one of the foundations for decentralized applications!
Retail sales remain firm amidst tightening. USD: Three days of declines; first since March. VVIX at two-year lows; lack of hedging?
Retail sales remain firm amidst tightening. USD: Three days of declines; first since March. VVIX at two-year lows; lack of hedging?
The tastytrade crew explains how rolling a short ITM call, in a covered call trade, up and OTM in the same expiration cycle may be for a debit but that doesn't mean you're ruining your upside profit potential.
Rolling up and out of the money is an offensive roll, and Nick and Mike show you visually how you're adjusting your risk profile today when doing so.
The tastytrade crew explains how rolling a short ITM call, in a covered call trade, up and OTM in the same expiration cycle may be for a debit but that doesn't mean you're ruining your upside profit potential.
Rolling up and out of the money is an offensive roll, and Nick and Mike show you visually how you're adjusting your risk profile today when doing so.
This market selloff looks more like a slow burn coupled with consistently elevated vol, and a 2008 ‘speed’ in general. This price action supports the claim as well. Most of the downside movement happened intraday like it did in 2008 which is relatively unique for a selloff. With a market that sells off slowly, keeping new and existing positions small is the only way to survive the above average wait for “normalcy”.
This market selloff looks more like a slow burn coupled with consistently elevated vol, and a 2008 ‘speed’ in general. This price action supports the claim as well. Most of the downside movement happened intraday like it did in 2008 which is relatively unique for a selloff. With a market that sells off slowly, keeping new and existing positions small is the only way to survive the above average wait for “normalcy”.
One of the wonderful things about options is that, no matter what assumptions traders bring to the market, they can construct strategies to profit if they are correct. The typical delta neutral strategies, strangles and iron condors, profit should the underlying remain stable, but if you believe the underlying is going to move but don’t want to pick a direction, there is a trade for you: the double backspread. Today, Tom and Tony explain this rarely used strategy, why it is so rarely employed, and look at the data to see if it is ever a good idea.
One of the wonderful things about options is that, no matter what assumptions traders bring to the market, they can construct strategies to profit if they are correct. The typical delta neutral strategies, strangles and iron condors, profit should the underlying remain stable, but if you believe the underlying is going to move but don’t want to pick a direction, there is a trade for you: the double backspread. Today, Tom and Tony explain this rarely used strategy, why it is so rarely employed, and look at the data to see if it is ever a good idea.
Tom believes Elon Musk’s deal with Twitter was unethical from the start and then wonders, “How do we get bots to watch tasty?” Victor asks, “Is the Twitter deal unethical – because isn’t company transparency a good thing? Everyone knows they are interacting with a bot army on Twitter anyway.” Tom thinks Musk has all the cards and all the leverage in this deal. And really who should they be sympathetic toward after all this fallout? Not the shareholders, certainly not Musk sitting on his big pile of money, perhaps the employees working at Tesla who just want to innovate and create cool products. This is up for discussion and more on today’s segment of Hear Me Out.
Tom believes Elon Musk’s deal with Twitter was unethical from the start and then wonders, “How do we get bots to watch tasty?” Victor asks, “Is the Twitter deal unethical – because isn’t company transparency a good thing? Everyone knows they are interacting with a bot army on Twitter anyway.” Tom thinks Musk has all the cards and all the leverage in this deal. And really who should they be sympathetic toward after all this fallout? Not the shareholders, certainly not Musk sitting on his big pile of money, perhaps the employees working at Tesla who just want to innovate and create cool products. This is up for discussion and more on today’s segment of Hear Me Out.
MxD is the U.S. leading digital manufacturing innovation center and National Center for Cybersecurity in Manufacturing. Its founding partner is the U.S. Department of Defense with some of the biggest names in tech and manufacturing which include Intel, Boeing, and Microsoft, to name a few. Mxd has invested more than $120M in more than 85 projects in areas including future factory, digital twin, resilient supply chains, cybersecurity, and workforce development. Chandra Brown is the CEO. She not only tackles MxD's mission to help make every part better than the last but also to foster a manufacturing future that is more inclusive and open to all American innovators.
MxD is the U.S. leading digital manufacturing innovation center and National Center for Cybersecurity in Manufacturing. Its founding partner is the U.S. Department of Defense with some of the biggest names in tech and manufacturing which include Intel, Boeing, and Microsoft, to name a few. Mxd has invested more than $120M in more than 85 projects in areas including future factory, digital twin, resilient supply chains, cybersecurity, and workforce development. Chandra Brown is the CEO. She not only tackles MxD's mission to help make every part better than the last but also to foster a manufacturing future that is more inclusive and open to all American innovators.
Six weeks of equity declines; five weeks of yield rises. Latest Bitcoin drawdown (-60%) not unusual. SKEW at lows last seen in Oct. 2020.
Six weeks of equity declines; five weeks of yield rises. Latest Bitcoin drawdown (-60%) not unusual. SKEW at lows last seen in Oct. 2020.
As we sell OTM strategies at trade entry, it’s common for us to have positive theta on our positions at the start. But over the life of a trade, that positive theta can flip to negative theta, particularly with defined-risk strategies. So as premium sellers that depend on decay, it’s important that we recognize this possibility.Did you catch our show last week on how to determine Delta/Theta levels for your portfolio?
As we sell OTM strategies at trade entry, it’s common for us to have positive theta on our positions at the start. But over the life of a trade, that positive theta can flip to negative theta, particularly with defined-risk strategies. So as premium sellers that depend on decay, it’s important that we recognize this possibility.Did you catch our show last week on how to determine Delta/Theta levels for your portfolio?
The decline in gold has given way to an increase in IVR. Oil's resurgence above $110.00 has created an attractive trading opportunity. The Euro has seen a slight rebound over the past two trading sessions but will it last?Join Pete and Jermal as they run through trading opportunities in gold, oil and the Euro on Splash Into Futures.
The decline in gold has given way to an increase in IVR. Oil's resurgence above $110.00 has created an attractive trading opportunity. The Euro has seen a slight rebound over the past two trading sessions but will it last?Join Pete and Jermal as they run through trading opportunities in gold, oil and the Euro on Splash Into Futures.
Pairs trading in futures has long been compared to defined-risk options trading in that both strategies can reduce risk and increase the potential time in a given position. Experienced traders Mike and Frank show you how to do so using Small Exchange futures and a number of examples across both commodities and equities. The guys even manage to show traders how they might reduce size even further with options on Small futures.Finally, the futures dudes conclude with a discussion on edge and probabilities in a directional trade, and they talk about how pairs trading two markets with perceived edge individually can add up to even greater probabilities of profit.
Pairs trading in futures has long been compared to defined-risk options trading in that both strategies can reduce risk and increase the potential time in a given position. Experienced traders Mike and Frank show you how to do so using Small Exchange futures and a number of examples across both commodities and equities. The guys even manage to show traders how they might reduce size even further with options on Small futures.Finally, the futures dudes conclude with a discussion on edge and probabilities in a directional trade, and they talk about how pairs trading two markets with perceived edge individually can add up to even greater probabilities of profit.
Rolling a short call up and out in time can be an offensive way to add profit potential on the shares, while reducing the cost basis a little bit by way of the small credit received.
We can also consider rolling the short call out in time on the same strike, using the higher credit to reduce our basis more and add profit potential by way of extrinsic value vs the share price increasing.
Tune in to learn more with visual breakdowns!
Rolling a short call up and out in time can be an offensive way to add profit potential on the shares, while reducing the cost basis a little bit by way of the small credit received.
We can also consider rolling the short call out in time on the same strike, using the higher credit to reduce our basis more and add profit potential by way of extrinsic value vs the share price increasing.
Tune in to learn more with visual breakdowns!
Letting your winning trades run and cutting your losing trades are two of the first sayings that many traders will learn as they start their journey. While this may sound simple, this is incredibly difficult for most people to do since we have an innate aversion to losses. We’d rather sell an investment that’s made money than to suffer the pain of selling a loser. This tends to be one of the things that hurts many investors, new and old alike.What if we stuck with this rule? Would we be able to outperform the market?Join Tom and Tony to find out!
Letting your winning trades run and cutting your losing trades are two of the first sayings that many traders will learn as they start their journey. While this may sound simple, this is incredibly difficult for most people to do since we have an innate aversion to losses. We’d rather sell an investment that’s made money than to suffer the pain of selling a loser. This tends to be one of the things that hurts many investors, new and old alike.What if we stuck with this rule? Would we be able to outperform the market?Join Tom and Tony to find out!
As tastytraders, we constantly monitor and measure the option Greeks within our portfolios, and this analysis is usually focused on Delta, Theta, and Vega. But with interest rates rising for the first time in a long time, it begs the question, does Rho matter now? Rho measures how an option price responds when interest rates change, so it’s a fair question to ask, and this morning, we take a look!Did you catch our show last week on how to determine Delta/Theta levels for your portfolio?
As tastytraders, we constantly monitor and measure the option Greeks within our portfolios, and this analysis is usually focused on Delta, Theta, and Vega. But with interest rates rising for the first time in a long time, it begs the question, does Rho matter now? Rho measures how an option price responds when interest rates change, so it’s a fair question to ask, and this morning, we take a look!Did you catch our show last week on how to determine Delta/Theta levels for your portfolio?
With implied volatility, and a short term expected move dropping off, our puts quickly regained a lot of their skew. Last week we realized movement was well within what was expected, so this decline in volatility makes sense.
With implied volatility, and a short term expected move dropping off, our puts quickly regained a lot of their skew. Last week we realized movement was well within what was expected, so this decline in volatility makes sense.
On this episode of Engineering the Trade, Jermal Chandler and Julia Spina compare and contrast S&P 500 market corrections across time and discuss the state of market volatility and skew.
On this episode of Engineering the Trade, Jermal Chandler and Julia Spina compare and contrast S&P 500 market corrections across time and discuss the state of market volatility and skew.
Arguably the biggest benefit of short options is the ability to make money on your positions without having to pick direction correctly. By having non-directional elements like positive theta and negative vega working for you, even when a stock moves against you, you can still turn a profit on your positions. As we look at where our Short Put in IWM has gone since we first put the trade on, we see this exact scenario playing out.
Did you catch our show on how to determine Delta/Theta levels for your portfolio?
Arguably the biggest benefit of short options is the ability to make money on your positions without having to pick direction correctly. By having non-directional elements like positive theta and negative vega working for you, even when a stock moves against you, you can still turn a profit on your positions. As we look at where our Short Put in IWM has gone since we first put the trade on, we see this exact scenario playing out.
Did you catch our show on how to determine Delta/Theta levels for your portfolio?
When placing a trade that does not have a predetermined exit point, like scalp trades, it helps to know the entry and exit points yourself so that you can derive a POP from that trade. By the knowledge of efficient markets, we know that the Amount Risked divided by the sum of Amount Risked plus Desired Profit has to equal the Probability of Profit.
When placing a trade that does not have a predetermined exit point, like scalp trades, it helps to know the entry and exit points yourself so that you can derive a POP from that trade. By the knowledge of efficient markets, we know that the Amount Risked divided by the sum of Amount Risked plus Desired Profit has to equal the Probability of Profit.
如果我们使用相同的资金量并且长期稳定的交易一种策略，那么在铁鹰和宽跨式之间他们哪个的绩效表现会更好？如果使用不同的翅膀宽度的铁鹰，他们哪个的风险更小？他们哪个的波动又会更高？这期节目让我们来看一个有意思的回测实验以及在交易员内部的市场调查结果。
Which one performs better in the long run by investing the same amount of capital between Iron Condor and Strangle? For varying width Iron Condors, which one has the lowest risk and produces the lowest volatility? In this episode, let’s look at a portfolio performance analysis and interesting survey results from our options traders community.
Defending a covered call means rolling the short option out in time, down the strike plane, or a combination of both. Today the tastytrade crew explains the risk & reward tradeoffs for each option.
Tune in to learn more with a live Q&A as well!
Defending a covered call means rolling the short option out in time, down the strike plane, or a combination of both. Today the tastytrade crew explains the risk & reward tradeoffs for each option.
Tune in to learn more with a live Q&A as well!
Liz and Jenny have a profitable zebra in Peloton. They walk through the ratchet strategy and show how to keep a similar position while reducing risk. They also make adjustments to Sofi and Rocket.
Liz and Jenny have a profitable zebra in Peloton. They walk through the ratchet strategy and show how to keep a similar position while reducing risk. They also make adjustments to Sofi and Rocket.
Liz and Jenny take live viewer tweets with #LIZJNY. They talk about coming up with a new "Bat" trade after Jenny receives a special visit from Tony the Bat. They talk about the market and close the AFRM earnings trade.
Liz and Jenny take live viewer tweets with #LIZJNY. They talk about coming up with a new "Bat" trade after Jenny receives a special visit from Tony the Bat. They talk about the market and close the AFRM earnings trade.
Options have many dimensions of risk that are always adjustable by active traders. By adjusting the options in your portfolio, you are able to construct a “distribution” that your portfolio will follow that has unique skew, spread, tails, mean, and probabilities. A distribution of stock returns is already set in stone by whatever underlying you trade - the only adjustable attribute is the general spread (volatility) of returns.
Options have many dimensions of risk that are always adjustable by active traders. By adjusting the options in your portfolio, you are able to construct a “distribution” that your portfolio will follow that has unique skew, spread, tails, mean, and probabilities. A distribution of stock returns is already set in stone by whatever underlying you trade - the only adjustable attribute is the general spread (volatility) of returns.
NDX drawdown from highs is 32%; biggest since GFC. May is on track to be the 7th consecutive month that RV has increased for SPX; NEVER happened. CVNA, COIN, U, RIVN, SHOP action yesterday an example bear market rally activity. Nearing +0.8, Bitcoin has its highest ever correlation to stocks.
NDX drawdown from highs is 32%; biggest since GFC. May is on track to be the 7th consecutive month that RV has increased for SPX; NEVER happened. CVNA, COIN, U, RIVN, SHOP action yesterday an example bear market rally activity. Nearing +0.8, Bitcoin has its highest ever correlation to stocks.
In 2020 we witnessed nearly a 400% BTC bull run. Kayla and Errol pull up the charts to show what is going on with all major cryptocurrencies down for the first time in over 15 months. Even some, such as stablecoin Terra, is down from $116 to less than a penny!
In 2020 we witnessed nearly a 400% BTC bull run. Kayla and Errol pull up the charts to show what is going on with all major cryptocurrencies down for the first time in over 15 months. Even some, such as stablecoin Terra, is down from $116 to less than a penny!
Markets got you down? Pro energy trader Tracy Shuchart manages a nine-figure portfolio for a family office. In this special stock pickers episode, Shuchart reveals the eight energy stocks she owns today, her forecast for the price of oil and the reason behind her positive outlook for the energy sector. The crew also looks at the PA GOP Senate race and revisits insights from pollster Robert Cahaly.
Markets got you down? Pro energy trader Tracy Shuchart manages a nine-figure portfolio for a family office. In this special stock pickers episode, Shuchart reveals the eight energy stocks she owns today, her forecast for the price of oil and the reason behind her positive outlook for the energy sector. The crew also looks at the PA GOP Senate race and revisits insights from pollster Robert Cahaly.
Since people began investing into crypto, there have been a few selloffs that mirrored this one in terms of magnitude, volatility, and fundamental reasons. The difference in this selloff is that there is much more leverage being used that amplifies the loss for those holding crypto long. Going forward, it is important for all investors (crypto included) to keep their position sizing small even if you are bullish. No one knows how far down the asset can go.
Since people began investing into crypto, there have been a few selloffs that mirrored this one in terms of magnitude, volatility, and fundamental reasons. The difference in this selloff is that there is much more leverage being used that amplifies the loss for those holding crypto long. Going forward, it is important for all investors (crypto included) to keep their position sizing small even if you are bullish. No one knows how far down the asset can go.
Equity indexes have lost $6.3T since March 29th. CPI and PPI surprise to the upside. What’s up with the lack of response from the $VIX during the current sell-off?
Equity indexes have lost $6.3T since March 29th. CPI and PPI surprise to the upside. What’s up with the lack of response from the $VIX during the current sell-off?
With the market continuing to drop, we take a look at the VIX to see if we can glean any useful information about market direction. While market randomness and unpredictability will always win the day, the recent clustering of volatility on the higher end does suggest that we are due for a volatility contraction.Did you catch our show on how to determine Delta/Theta levels for your portfolio?
With the market continuing to drop, we take a look at the VIX to see if we can glean any useful information about market direction. While market randomness and unpredictability will always win the day, the recent clustering of volatility on the higher end does suggest that we are due for a volatility contraction.Did you catch our show on how to determine Delta/Theta levels for your portfolio?
Pete and James discuss the market action for this extremely busy Thursday. They take a minute to explain the global capital flight to the dollar and why it feels like every asset class is selling off these days. Next the pair move into their main topic, utilizing options spreads in larger equity futures against micro futures scalps. They run through an example of using Micro S&P futures while hedging with a short put spread in the larger S&P options contracts.
Pete and James discuss the market action for this extremely busy Thursday. They take a minute to explain the global capital flight to the dollar and why it feels like every asset class is selling off these days. Next the pair move into their main topic, utilizing options spreads in larger equity futures against micro futures scalps. They run through an example of using Micro S&P futures while hedging with a short put spread in the larger S&P options contracts.
What charts do traders look at? Where do they find their strategies? How do they place a winning trade? Mean reversion can provide traders with a simple, data-driven approach that doesn't require industry knowledge or a good gut call to apply. Markets that many traders have deemed as mean reversion markets include interest rates, currencies, energies and metals. Many traders will scale into a trade as the market moves further and further from its long-term mean. Then, they can close the trade for profits when the market is, say, half the way back to that mean, though you can alter that management amount depending on your confidence level or the amount you were looking to make.
What charts do traders look at? Where do they find their strategies? How do they place a winning trade? Mean reversion can provide traders with a simple, data-driven approach that doesn't require industry knowledge or a good gut call to apply. Markets that many traders have deemed as mean reversion markets include interest rates, currencies, energies and metals. Many traders will scale into a trade as the market moves further and further from its long-term mean. Then, they can close the trade for profits when the market is, say, half the way back to that mean, though you can alter that management amount depending on your confidence level or the amount you were looking to make.
The tastytrade crew shares their trade ideas for the day! Mike buys a call diagonal spread in AFRM for earnings
Nick sells a put and call ratio spread in XOP
Katie sells an iron condor in /CL into the IV expansion
Tune in to learn more and a live Q&A as well!
The tastytrade crew shares their trade ideas for the day! Mike buys a call diagonal spread in AFRM for earnings
Nick sells a put and call ratio spread in XOP
Katie sells an iron condor in /CL into the IV expansion
Tune in to learn more and a live Q&A as well!
Liz and Jenny manage their account. They also take live tweets containing #LIZJNY. They closed their overnight earnings trade in BYND for a profit and redeployed the capital in AFRM for tonights earnings trade. They then adjusted their PTON zebra.
Don't quite understand all these Lizards? Liz and Jenny spell it all out in this simple tutorial.
For more about Zero Extrinsic Back Ratio (Zebra) check out The Liz and Jenny Strategy Series.
Liz and Jenny manage their account. They also take live tweets containing #LIZJNY. They closed their overnight earnings trade in BYND for a profit and redeployed the capital in AFRM for tonights earnings trade. They then adjusted their PTON zebra.
Don't quite understand all these Lizards? Liz and Jenny spell it all out in this simple tutorial.
For more about Zero Extrinsic Back Ratio (Zebra) check out The Liz and Jenny Strategy Series.
Liz and Jenny close their /CL iron condor and USO reverse big lizard. They also take a look at their Small exchange US dollar futures and gold futures.
Curious about the Reverse Big Lizard strategy? Check out The Liz and Jenny Strategy Series.
Liz and Jenny close their /CL iron condor and USO reverse big lizard. They also take a look at their Small exchange US dollar futures and gold futures.
Curious about the Reverse Big Lizard strategy? Check out The Liz and Jenny Strategy Series.
From machine learning to Defi, finance is a complex, rapidly expanding field. The research that makes it into our regular segments only scratches the surface. In this show, Tom and Tony are joined by researchers, Eddie and Julia, as they dive into the topics that are shaking up the financial sector and showcase the research happening behind the scenes. If you have requests for any topics, reach out to Julia (@FinancePhoton) or Eddie (@ERajcevic11) on Twitter! You can also submit ideas through this form: https://www.tastytrade.com/alp...
From machine learning to Defi, finance is a complex, rapidly expanding field. The research that makes it into our regular segments only scratches the surface. In this show, Tom and Tony are joined by researchers, Eddie and Julia, as they dive into the topics that are shaking up the financial sector and showcase the research happening behind the scenes. If you have requests for any topics, reach out to Julia (@FinancePhoton) or Eddie (@ERajcevic11) on Twitter! You can also submit ideas through this form: https://www.tastytrade.com/alp...
Dollar cost averaging is a passive strategy that consists of investing a fixed amount of money at regular intervals of time.At tasty, we focus on the benefits of being an active trader – risk management, increased probabilities, taking advantage of favorable situations (high IVR), etc. But active trading may not always be possible. With that said, for those who may be more risk averse at the current time, what are the benefits of dollar cost averaging into long-term positions?Join Tom and Tony to find out!
Dollar cost averaging is a passive strategy that consists of investing a fixed amount of money at regular intervals of time.At tasty, we focus on the benefits of being an active trader – risk management, increased probabilities, taking advantage of favorable situations (high IVR), etc. But active trading may not always be possible. With that said, for those who may be more risk averse at the current time, what are the benefits of dollar cost averaging into long-term positions?Join Tom and Tony to find out!
For todays assignment Jermal guides Kay and E on putting on an options trade in a currency. Although it may seem intimidating, Jermal explains how similar it is to regular options. E and Kay search through a handful of options before deciding on a trade.
For todays assignment Jermal guides Kay and E on putting on an options trade in a currency. Although it may seem intimidating, Jermal explains how similar it is to regular options. E and Kay search through a handful of options before deciding on a trade.
The havoc in the market isn’t confined to equities. It’s the crypto markets as well. Are we seeing the end of crypto or is this just a part of the maturation process? If you’re unsure what to do with crypto and crypto related stocks, tune in and listen to Tom explain to Dylan his thoughts about the sector.
The havoc in the market isn’t confined to equities. It’s the crypto markets as well. Are we seeing the end of crypto or is this just a part of the maturation process? If you’re unsure what to do with crypto and crypto related stocks, tune in and listen to Tom explain to Dylan his thoughts about the sector.
When scalping futures, traders are more interested in shorter durations, not as easily measured by HV or IV. Instead it’s possible to analyze hourly movement and see changes in the velocity of futures products. Is a certain asset moving faster hour by hour than in previous periods?
When scalping futures, traders are more interested in shorter durations, not as easily measured by HV or IV. Instead it’s possible to analyze hourly movement and see changes in the velocity of futures products. Is a certain asset moving faster hour by hour than in previous periods?
keepwith is a networking platform with their latest app that was recently launched. Headquartered in Chicago, keepwith ®, a certified woman-owned business, is a SaaS platform helping the world network better. Through technology and education, keepwith ® empowers people to form relationships that matter. Unlike other networking platforms, the keepwith app goes well beyond simply connecting people. Keepwith teaches you how to make the most of those connections and build meaningful relationships. Megan Roudebush is the founder and CEO of keepwith.
keepwith is a networking platform with their latest app that was recently launched. Headquartered in Chicago, keepwith ®, a certified woman-owned business, is a SaaS platform helping the world network better. Through technology and education, keepwith ® empowers people to form relationships that matter. Unlike other networking platforms, the keepwith app goes well beyond simply connecting people. Keepwith teaches you how to make the most of those connections and build meaningful relationships. Megan Roudebush is the founder and CEO of keepwith.
Rolling covered calls doesn't always have to be a defensive maneuver. Today the tastytrade crew explains how we can manipulate the strike when rolling out in time by shifting extrinsic value from one expiration to the next.
Rolling covered calls doesn't always have to be a defensive maneuver. Today the tastytrade crew explains how we can manipulate the strike when rolling out in time by shifting extrinsic value from one expiration to the next.
It's What's Your Assumption Wednesday! Liz and Jenny look for trades in 10 different underlying's. Liz and Jenny look at jade lizards, big lizards, strangles, and iron condors.
It's What's Your Assumption Wednesday! Liz and Jenny look for trades in 10 different underlying's. Liz and Jenny look at jade lizards, big lizards, strangles, and iron condors.
Liz and Jenny take live viewer tweets. They have fun with viewers talking about the upcoming Bad Trader tour. They look for earnings trade in Beyond Meat, Disney, and Rivian. They also adjust their Peloton position.
Liz and Jenny take live viewer tweets. They have fun with viewers talking about the upcoming Bad Trader tour. They look for earnings trade in Beyond Meat, Disney, and Rivian. They also adjust their Peloton position.
The first order Greeks, especially Delta and Theta, are key metrics for a short premium portfolio, measuring how our position values are likely to respond to changes in the market. But the Greeks themselves also change as the market moves! Second order Greeks like Gamma and Charm express what will happen to Delta and Theta over time and as the underlying changes.
The first order Greeks, especially Delta and Theta, are key metrics for a short premium portfolio, measuring how our position values are likely to respond to changes in the market. But the Greeks themselves also change as the market moves! Second order Greeks like Gamma and Charm express what will happen to Delta and Theta over time and as the underlying changes.
Gamma risk describes the situation when the Gamma value becomes too high, implying the rate of delta change might be out of control, exposing our positions to considerable directional risk. So what are the reasons that cause high Gamma value?Join Tom and Tony as they explain how.
Gamma risk describes the situation when the Gamma value becomes too high, implying the rate of delta change might be out of control, exposing our positions to considerable directional risk. So what are the reasons that cause high Gamma value?Join Tom and Tony as they explain how.
Ethereum is migrating from Proof of Work (mining to solve cryptographic puzzles) to Proof of Stake (incentivizing owners to hold tokens to secure the network). The Ethereum supply is currently increasing by about 4% per year, but the Triple Halving will cause it to be cut down to only an 0.5% increase per year. This event is expected to have a positive effect on the price of Ethereum, but only time will tell!
Ethereum is migrating from Proof of Work (mining to solve cryptographic puzzles) to Proof of Stake (incentivizing owners to hold tokens to secure the network). The Ethereum supply is currently increasing by about 4% per year, but the Triple Halving will cause it to be cut down to only an 0.5% increase per year. This event is expected to have a positive effect on the price of Ethereum, but only time will tell!
Crypto markets have been spiraling downward recently with an outlier move in UST and LUNA happening this last week. With crypto values going down, the era of 300% returns seem to be coming to an end temporarily but the key is to trade small positions for those wanting to stay in. Accounting for down moves is equally as important than accounting for the upside since both will happen.
Crypto markets have been spiraling downward recently with an outlier move in UST and LUNA happening this last week. With crypto values going down, the era of 300% returns seem to be coming to an end temporarily but the key is to trade small positions for those wanting to stay in. Accounting for down moves is equally as important than accounting for the upside since both will happen.
The current Nasdaq drawdown is approaching -30% which is equivalent to the COVID shock. A recent report from the Fed warns of the deterioration of market liquidity. About 70% of S&P 500 names below 200-day MA, is it a sign of the bottom?
The current Nasdaq drawdown is approaching -30% which is equivalent to the COVID shock. A recent report from the Fed warns of the deterioration of market liquidity. About 70% of S&P 500 names below 200-day MA, is it a sign of the bottom?
Strategic Diversification is at the foundation of our approach to portfolio management. By having different strategies with their own unique exposures and biases in the market, we’re able to benefit from all different market environments. Furthermore, by combining a strategically diversified portfolio with a philosophy centered on managing winners, we have a powerful combination of tools that pave the way for success. Did you catch our show on how to determine Delta/Theta levels for your portfolio?
Strategic Diversification is at the foundation of our approach to portfolio management. By having different strategies with their own unique exposures and biases in the market, we’re able to benefit from all different market environments. Furthermore, by combining a strategically diversified portfolio with a philosophy centered on managing winners, we have a powerful combination of tools that pave the way for success. Did you catch our show on how to determine Delta/Theta levels for your portfolio?
It's good versus bad news following the market sell-off on Friday and Monday. Concerns over a more aggressive Fed are making market followers uneasy, but the real news of the minute is the inflation data about to come out from the U.S. and Eurozone. Is there potential for a possible rate hike in July? Tune in.
It's good versus bad news following the market sell-off on Friday and Monday. Concerns over a more aggressive Fed are making market followers uneasy, but the real news of the minute is the inflation data about to come out from the U.S. and Eurozone. Is there potential for a possible rate hike in July? Tune in.
Volatility is at the center of nearly all options strategies, whether buying or selling. While most traders may be familiar with VIX, the volatility indices for EuroFX and gold tell interesting stories as well! Mikey explores the volatility dynamics of stock, foreign exchange and precious metals options by digging into both mean reversion and overstatement. Then, he presents a few viable trading vehicles including FXE, /SFX, GLD, and /SPRE by comparing the theoretical trade price with the margin required to trade.
Volatility is at the center of nearly all options strategies, whether buying or selling. While most traders may be familiar with VIX, the volatility indices for EuroFX and gold tell interesting stories as well! Mikey explores the volatility dynamics of stock, foreign exchange and precious metals options by digging into both mean reversion and overstatement. Then, he presents a few viable trading vehicles including FXE, /SFX, GLD, and /SPRE by comparing the theoretical trade price with the margin required to trade.
Removing an inversion when rolling out in time can seem tricky, but it's actually the same result as rolling the inversion out in time for a credit.
Tune in to learn how a synthetic credit is created, and how high IV products offer much more flexibility compared to low IV products!
Removing an inversion when rolling out in time can seem tricky, but it's actually the same result as rolling the inversion out in time for a credit.
Tune in to learn how a synthetic credit is created, and how high IV products offer much more flexibility compared to low IV products!
Liz and Jenny look at earnings trades and expected moves. They also discuss this crazy market.
Liz and Jenny look at earnings trades and expected moves. They also discuss this crazy market.
Anton joins liz and Jenny to discuss closing defined risk trades vs keeping them until expiration.
Anton joins liz and Jenny to discuss closing defined risk trades vs keeping them until expiration.
With directional and volatility risk very high, shifting your contract duration further in time could help mellow the risk in your portfolio on a daily basis. Longer dated options result in lower duration risk. Compared to shorter dated options, the day-to-day risk is lower because breakevens are wider and theta decay lower. By shifting a 10 DTE strategy to a 60 DTE strategy, you would take 35% of the daily risk comparison differs depending on the expiration cycle you trade.
With directional and volatility risk very high, shifting your contract duration further in time could help mellow the risk in your portfolio on a daily basis. Longer dated options result in lower duration risk. Compared to shorter dated options, the day-to-day risk is lower because breakevens are wider and theta decay lower. By shifting a 10 DTE strategy to a 60 DTE strategy, you would take 35% of the daily risk comparison differs depending on the expiration cycle you trade.
Option trading accounts are limited in how many and what kind of positions they can have on by their total buying power. Trades with undefined risk often require brokerages to set aside large portions of capital from the account in order to cover potential losses. Today, Tom and Tony take a look at the minimum BPR requirements for undefined risk trades as set forth by FINRA and find the strikes which let us collect large credits with minimal stakes.
Option trading accounts are limited in how many and what kind of positions they can have on by their total buying power. Trades with undefined risk often require brokerages to set aside large portions of capital from the account in order to cover potential losses. Today, Tom and Tony take a look at the minimum BPR requirements for undefined risk trades as set forth by FINRA and find the strikes which let us collect large credits with minimal stakes.
Victor, Tom, and Tony discuss the proper age bracket to attend Justin Bieber concerts and the tastytrade crews' triumphant return to the office. Victor didn't get the memo on the two-day office requirement. The Nasdaq and long bonds are hovering at 2 to 2.5 points. Consumer Price Index headlines are all over the place. Tom's coverage of the Fed and inflation in the Cherry Bomb newsletter has Victor impressed. Is there the potential for the markets to have disinflation numbers for the very first time since last year? Find out on today's show.
Victor, Tom, and Tony discuss the proper age bracket to attend Justin Bieber concerts and the tastytrade crews' triumphant return to the office. Victor didn't get the memo on the two-day office requirement. The Nasdaq and long bonds are hovering at 2 to 2.5 points. Consumer Price Index headlines are all over the place. Tom's coverage of the Fed and inflation in the Cherry Bomb newsletter has Victor impressed. Is there the potential for the markets to have disinflation numbers for the very first time since last year? Find out on today's show.
The yutes reflect back on their earlier trades with Tom as they look at $BLNK, $PLUG, and $RIOT for a new trade.
The yutes reflect back on their earlier trades with Tom as they look at $BLNK, $PLUG, and $RIOT for a new trade.
S&P 500 at 5-weeks of declines; 1st time since 2011; 9th time in 25 years. Cash is KING: USD at 20-year highs. Consumer credit climbed by $52B (MoM) vs. $25B expected.
S&P 500 at 5-weeks of declines; 1st time since 2011; 9th time in 25 years. Cash is KING: USD at 20-year highs. Consumer credit climbed by $52B (MoM) vs. $25B expected.
Hedging your long stock portfolio with Long Puts is certainly a strategy you can use, as we discussed on this morning’s Skinny. But it’s important to note that the cost of these Puts is steep, even the OTM strikes are never “cheap”, and the negative theta over time actually worsens with each passing day that your hedge doesn’t work.Did you catch our show last week on how to determine Delta/Theta levels for your portfolio?
Hedging your long stock portfolio with Long Puts is certainly a strategy you can use, as we discussed on this morning’s Skinny. But it’s important to note that the cost of these Puts is steep, even the OTM strikes are never “cheap”, and the negative theta over time actually worsens with each passing day that your hedge doesn’t work.Did you catch our show last week on how to determine Delta/Theta levels for your portfolio?
Pete and Jermal weave through the litany of selling pressure and intense volatility and attempt to find some meaningful trades.
Pete and Jermal weave through the litany of selling pressure and intense volatility and attempt to find some meaningful trades.
A costless collar consists of buying an OTM put and selling an OTM call for a scratch to create a vertical spread risk profile around 100 shares of stock. Today, Nick and Mike walk through an example of this, and how put zebras can be effective hedges against big selloffs, as they are static delta hedges vs a short call which is a dynamic delta that loses hedge value on the way down.
Tune in for more!
A costless collar consists of buying an OTM put and selling an OTM call for a scratch to create a vertical spread risk profile around 100 shares of stock. Today, Nick and Mike walk through an example of this, and how put zebras can be effective hedges against big selloffs, as they are static delta hedges vs a short call which is a dynamic delta that loses hedge value on the way down.
Tune in for more!
Liz and Jenny receive Alpha Boost trade ideas live on the show. They walk through bullish, bearish, and neutral strategies. They end up placing a neutral to bearish reverse big lizard. It's a defined risk trade and doesn't use too much buying power.
Liz and Jenny receive Alpha Boost trade ideas live on the show. They walk through bullish, bearish, and neutral strategies. They end up placing a neutral to bearish reverse big lizard. It's a defined risk trade and doesn't use too much buying power.
Liz and Jenny are excited to announce The Bad Trader Tour! They are happy to be back on the road and looking forward to seeing everyone. After these recent moves in the market, there will definitely be many stories to tell. They take a look their Peloton and Plug power positions ahead of earnings.
Liz and Jenny are excited to announce The Bad Trader Tour! They are happy to be back on the road and looking forward to seeing everyone. After these recent moves in the market, there will definitely be many stories to tell. They take a look their Peloton and Plug power positions ahead of earnings.
We’ve previously looked at why diversification is important, with the primary focus being on the ability diversification has to decrease the size and frequency of large losses.That study only looked at if we were to have a long portfolio with positions in stocks, bonds, and commodities. However, what would the impact of diversification be on an options portfolio with the same asset classes.Can diversification lead to lower risk when trading options? And does this have an impact on our returns?Join Tom and Tony to find out!
We’ve previously looked at why diversification is important, with the primary focus being on the ability diversification has to decrease the size and frequency of large losses.That study only looked at if we were to have a long portfolio with positions in stocks, bonds, and commodities. However, what would the impact of diversification be on an options portfolio with the same asset classes.Can diversification lead to lower risk when trading options? And does this have an impact on our returns?Join Tom and Tony to find out!
Given the recent market drop, many traders are more interested than ever in hedging their portfolios. Today, we go over 4 hedging strategies you can use in your portfolio today, along with the pros and cons of each. Every strategic move you make in the market costs you something, so in this segment, we work through the gimmes and the gotchas of each of these strategies.Did you catch our show last week on how to determine Delta/Theta levels for your portfolio?
Given the recent market drop, many traders are more interested than ever in hedging their portfolios. Today, we go over 4 hedging strategies you can use in your portfolio today, along with the pros and cons of each. Every strategic move you make in the market costs you something, so in this segment, we work through the gimmes and the gotchas of each of these strategies.Did you catch our show last week on how to determine Delta/Theta levels for your portfolio?
Puts and calls in indexes of the same delta are trading for essentially the same price suggesting the skew has flattened. QQQ 16∆ calls are actually more expensive than the 16∆ puts. Although last week was extraordinarily volatile on a day-to-day basis, monthly volatility actually declined
Amy Brusselback is the Founder and Principal of Design B&B, which is not just another brand consulting and design agency. They exist to discover & elevate a brand's strength so that its story is heard. Design B&B has a market-based, business-minded approach to design. Their bottom line - their work hasn't done its job if it doesn't grow their client's business. Amy attended Cornell University, and has a BFA in Design and Visual Communications, from Maryland Institute College of Art.
Amy Brusselback is the Founder and Principal of Design B&B, which is not just another brand consulting and design agency. They exist to discover & elevate a brand's strength so that its story is heard. Design B&B has a market-based, business-minded approach to design. Their bottom line - their work hasn't done its job if it doesn't grow their client's business. Amy attended Cornell University, and has a BFA in Design and Visual Communications, from Maryland Institute College of Art.
在“浅尝期权”系列当中，我们介绍过”等价替换策略”的概念。比如备对看涨组合和卖出看跌期权就是一对可以等价替换的策略。因为我们最近在介绍风险定义与未定义之间的关系，今天我们要提出一个类似的概念：等价未定义策略。那这次节目我们就来具体谈谈最常用的等价宽跨式。
In previous episodes, we introduced a new concept called “Synthetic Positions”. Like Covered Call and Short Put, they are synthetically the same if choosing the same short strikes. Since we are in the process of explaining the Risk-defined and -undefined strategies, this time, we would like to talk about another similar concept - the “Synthetic Strangle.”
Tony joins Kay and E as they look to put on a trade in an underlying with an IVR of at least 90. Tony brings 4 trade ideas to the table for the yutes to choose from. Small account trades to larger account trades, the yutes have some options!
Tony joins Kay and E as they look to put on a trade in an underlying with an IVR of at least 90. Tony brings 4 trade ideas to the table for the yutes to choose from. Small account trades to larger account trades, the yutes have some options!
Jermal and Dr. Data talk about the effectiveness of a strong “Cup of Joe” (never to be underestimated) when it comes to enhancing cognitive performance.
To that end, the Journal of Sleep Research published a paper several years ago that tracked military personnel and broke down peak times where caffeine-dosing strategies countered sleep loss and “leveled-up” performance in marksmen. The same can be said for day traders. Jermal and Dr. Data discuss the strategic implications of a “caffeine-induced” trade day and more on today’s segment of Engineering the Trade.
Jermal and Dr. Data talk about the effectiveness of a strong “Cup of Joe” (never to be underestimated) when it comes to enhancing cognitive performance.
To that end, the Journal of Sleep Research published a paper several years ago that tracked military personnel and broke down peak times where caffeine-dosing strategies countered sleep loss and “leveled-up” performance in marksmen. The same can be said for day traders. Jermal and Dr. Data discuss the strategic implications of a “caffeine-induced” trade day and more on today’s segment of Engineering the Trade.
With any new short premium position, the best case scenario is a stock with strong liquidity, high implied volatility rank, and around 45 DTE in the cycle. Right now, if we stick to the Watchlists in the tastyworks platform, with volatility elevated across the board and 42 DTE in the June cycle, we actually have all three right now. So for a premium selling tastytrader, this is the ideal scenario.Did you catch my naked strategies for a $5,000 account segment? Check out my YouTube Series on Trade Management!
With any new short premium position, the best case scenario is a stock with strong liquidity, high implied volatility rank, and around 45 DTE in the cycle. Right now, if we stick to the Watchlists in the tastyworks platform, with volatility elevated across the board and 42 DTE in the June cycle, we actually have all three right now. So for a premium selling tastytrader, this is the ideal scenario.Did you catch my naked strategies for a $5,000 account segment? Check out my YouTube Series on Trade Management!
When placing undefined risk earnings trades, it makes sense for the trader to plan on rolling through a bad move against them. If they prefer to avoid that, defined risk may be the way to go.
Mike & Nick walk through the tradeoffs between undefined and defined risk options trades today, and answer questions from the live chat as well!
When placing undefined risk earnings trades, it makes sense for the trader to plan on rolling through a bad move against them. If they prefer to avoid that, defined risk may be the way to go.
Mike & Nick walk through the tradeoffs between undefined and defined risk options trades today, and answer questions from the live chat as well!
With markets going lower and vol staying well above historical averages, adjusting existing options positions can change the risk of your trade and actually increase the net credit you receive. Keeping track of the BPR usage, credit/debit paid, and net delta effect of the adjustment are the most important metrics to compare when looking to adjust a trade.
With markets going lower and vol staying well above historical averages, adjusting existing options positions can change the risk of your trade and actually increase the net credit you receive. Keeping track of the BPR usage, credit/debit paid, and net delta effect of the adjustment are the most important metrics to compare when looking to adjust a trade.
The recent market statistics are historically pairing up with 2008 and 2020 bear-market like action. Join Tom, Tony and Jermal as they decipher what to make of it all on This Week in Stocks.
The recent market statistics are historically pairing up with 2008 and 2020 bear-market like action. Join Tom, Tony and Jermal as they decipher what to make of it all on This Week in Stocks.
On this episode we discuss the basics of decentralized finance (de-fi). We explain how de-fi has evolved as a result of blockchain technology, some of its most prominent applications, and the largest de-fi protocol categories by value.
On this episode we discuss the basics of decentralized finance (de-fi). We explain how de-fi has evolved as a result of blockchain technology, some of its most prominent applications, and the largest de-fi protocol categories by value.
Fed not actively considering “jumbo hikes”. U.K. central bank raises rates to 1%. Avg. 30yr loan jumps to 5.27% from 5.10% last week.
Fed not actively considering “jumbo hikes”. U.K. central bank raises rates to 1%. Avg. 30yr loan jumps to 5.27% from 5.10% last week.
Similar to an Iron Condor roll, a Butterfly roll is best done by breaking the strategy down into its component parts. The Long Strangle on the outside will be a debit to roll, and the Short Straddle on the inside will be a credit to roll. And much like an Iron Condor, the objective is for the net roll between the two to be a credit, so that overall risk is reduced on the position.Did you catch my naked strategies for a $5,000 account segment?Check out my YouTube Series on Trade Management!
Similar to an Iron Condor roll, a Butterfly roll is best done by breaking the strategy down into its component parts. The Long Strangle on the outside will be a debit to roll, and the Short Straddle on the inside will be a credit to roll. And much like an Iron Condor, the objective is for the net roll between the two to be a credit, so that overall risk is reduced on the position.Did you catch my naked strategies for a $5,000 account segment?Check out my YouTube Series on Trade Management!
Futures options operate quite similarly to stock options, but the multipliers, expirations, and settlements can be a little different. Frank highlights all the nuances when going from SPY options to ES or MES options, and then he shows Errol how short premium strategies like the short strangle or short iron condor can translate from the S&P 500 to the euro market.Implied volatility is measured in futures options in the same way it is in stock options, and futures options have seen similar overstatement of prices relative to realized volatility. Learn how to start trading futures options today.
Futures options operate quite similarly to stock options, but the multipliers, expirations, and settlements can be a little different. Frank highlights all the nuances when going from SPY options to ES or MES options, and then he shows Errol how short premium strategies like the short strangle or short iron condor can translate from the S&P 500 to the euro market.Implied volatility is measured in futures options in the same way it is in stock options, and futures options have seen similar overstatement of prices relative to realized volatility. Learn how to start trading futures options today.
The tastytrade crew shares their trade ideas for the day! Mike sells a put in XLK into the market selloff
Nick sells a put and call ratio spread in OXY
Katie sells an iron condor in /ES into the IV expansion
Tune in to learn more and a live Q&A as well!
The tastytrade crew shares their trade ideas for the day! Mike sells a put in XLK into the market selloff
Nick sells a put and call ratio spread in OXY
Katie sells an iron condor in /ES into the IV expansion
Tune in to learn more and a live Q&A as well!
It's Cinco De Mayo! Liz and Jenny are celebrating while they look for trade ideas using the small exchange interest rate products. They end up buying /S30Y and selling /S10Y, hoping to make about a 10% return.
It's Cinco De Mayo! Liz and Jenny are celebrating while they look for trade ideas using the small exchange interest rate products. They end up buying /S30Y and selling /S10Y, hoping to make about a 10% return.
In a previous segment, we discussed how the credit collected and the distance of the strikes from at-the-money increase when implied volatility is higher. Knowing this information, does that mean that strikes are less likely to get tested when implied volatility is higher?Further, do calls and puts follow a similar pattern in regards to volatility and probability of touch?Join Tom and Tony to find out!
In a previous segment, we discussed how the credit collected and the distance of the strikes from at-the-money increase when implied volatility is higher. Knowing this information, does that mean that strikes are less likely to get tested when implied volatility is higher?Further, do calls and puts follow a similar pattern in regards to volatility and probability of touch?Join Tom and Tony to find out!
Calculating the breakeven stock price of a single option is straightforward: it’s merely the price of the underlying that gives the position a P/L of zero. However, it can be very tricky to calculate the breakeven stock price for more complex strategies, such as laddered puts. Join Tom, Tony, Julia and Jim as they discuss a simple-ish ways to numerically solve for the breakeven stock price of a laddered put.
Calculating the breakeven stock price of a single option is straightforward: it’s merely the price of the underlying that gives the position a P/L of zero. However, it can be very tricky to calculate the breakeven stock price for more complex strategies, such as laddered puts. Join Tom, Tony, Julia and Jim as they discuss a simple-ish ways to numerically solve for the breakeven stock price of a laddered put.
Special guest, Howard Tullman, is back on the show today with Jules and Tony giving his take on tech stocks and where they could be headed in this unpredictable market. He also discusses his latest INC. blog, "Blockchain May Be The Best Bet to Beat Big Tech." Can Uber and Lyft be circumvented by blockchain? That's an interesting thought. He then answers the question many people have been asking him this year..." what should I do if I want to start a business?"
The Fed raised interest rates 50 basis points after today's announcement. Did the Fed get it wrong? Tom and Dylan discuss today’s Fed decision to raise interest rates and whether asset prices are frothy, underpriced, or even reasonable at this point. Could a market rally be well underway?
The Fed raised interest rates 50 basis points after today's announcement. Did the Fed get it wrong? Tom and Dylan discuss today’s Fed decision to raise interest rates and whether asset prices are frothy, underpriced, or even reasonable at this point. Could a market rally be well underway?
Unanimous 50 bps hike; $47.5B/mth runoff begins June 1st. LYFT/UBER: From disruptors to disrupted. Natural gas surging; touching Sep. 2008 levels. Jermal discusses this and more on today's segment of Engineering the Trade.
Unanimous 50 bps hike; $47.5B/mth runoff begins June 1st. LYFT/UBER: From disruptors to disrupted. Natural gas surging; touching Sep. 2008 levels. Jermal discusses this and more on today's segment of Engineering the Trade.
Pete and James walk through the current markets, discussing today's rally in crude oil and natural gas, as well as what to expect from the Fed meeting. Next they take a deep dive into crude oil futures options and the possibilities for traders to use options contracts in /CL to hedge and add premium to trades in the micro futures, /MCL. This requires accurate sizing of the positions to make sure the options hedge doesn't outweigh the futures contract.
Pete and James walk through the current markets, discussing today's rally in crude oil and natural gas, as well as what to expect from the Fed meeting. Next they take a deep dive into crude oil futures options and the possibilities for traders to use options contracts in /CL to hedge and add premium to trades in the micro futures, /MCL. This requires accurate sizing of the positions to make sure the options hedge doesn't outweigh the futures contract.
The Federal Open Market Committee (FOMC) meets a handful of times per year to adjust the Fed Funds Rate (FFR) and talk about the state of the US economy. Given all the inflationary and geopolitical news, the Fed has become a reason for great movement in not only interest rate markets but also equities, foreign exchange, and commodities.Experienced futures traders Katie and Frank talk about how they might trade the FOMC given the historical effects this type of event has had on rates, stocks, and more. Learn about the effects of the Fed on markets, and get some strategies on trading such an event.
The Federal Open Market Committee (FOMC) meets a handful of times per year to adjust the Fed Funds Rate (FFR) and talk about the state of the US economy. Given all the inflationary and geopolitical news, the Fed has become a reason for great movement in not only interest rate markets but also equities, foreign exchange, and commodities.Experienced futures traders Katie and Frank talk about how they might trade the FOMC given the historical effects this type of event has had on rates, stocks, and more. Learn about the effects of the Fed on markets, and get some strategies on trading such an event.
Debit spreads are typically reserved for non-earnings events, but specific setups can be lucrative when it comes to high IV stocks that have really front-loaded implied volatility for earnings in the weekly cycle.
The tastytrade crew walks through diagonal debit spread setups, and vertical debit spread setups, and they walk through the similarities and differences between the two today!
Debit spreads are typically reserved for non-earnings events, but specific setups can be lucrative when it comes to high IV stocks that have really front-loaded implied volatility for earnings in the weekly cycle.
The tastytrade crew walks through diagonal debit spread setups, and vertical debit spread setups, and they walk through the similarities and differences between the two today!
Liz and Jenny take a look at 10 viewer assumptions and try to find high probability trades using less capital. If you are bullish, bearish , neutral, or don't know we can come up with a trade idea in a liquid product.
What's the difference between a Big Lizard and a Jade Lizard? Check out these Liz and Jenny tutorials.
Liz and Jenny take a look at 10 viewer assumptions and try to find high probability trades using less capital. If you are bullish, bearish , neutral, or don't know we can come up with a trade idea in a liquid product.
What's the difference between a Big Lizard and a Jade Lizard? Check out these Liz and Jenny tutorials.
Liz and Jenny discuss the upcoming earnings trades vs. their expected moves. They also discuss "plurale tantumas" as it relates to the English language!
Liz and Jenny discuss the upcoming earnings trades vs. their expected moves. They also discuss "plurale tantumas" as it relates to the English language!
In a time of burgeoning options markets, two economists put forward a robust mathematical model for asset prices. Over the decades since, financial theorists have managed to extract the Greeks: a collection of derived quantities with the ability to predict how prices respond to changes in the market.
Today, Jacob joins Tom and Tony to set up the context of the Greeks within the Black-Scholes model and discuss some of the most fundamental ones. May the fourth be with you.
Option traders know that selling premium in high IV markets can provide us with a richer premium. Other than this, what are the other benefits of doing so? Tom and Tony weigh in.
Option traders know that selling premium in high IV markets can provide us with a richer premium. Other than this, what are the other benefits of doing so? Tom and Tony weigh in.
Last week Kayla and Errol traded an NFT based on the Polygon crypto network for almost no fees! Polygon, formerly known as the Matic Network, is a “layer 2” or “sidechain” scaling solution that runs alongside the Ethereum blockchain — allowing for speedy transactions and low fees. The two describe what the network is, why people choose to use it, and how to trade it on TastyWorks!
Last week Kayla and Errol traded an NFT based on the Polygon crypto network for almost no fees! Polygon, formerly known as the Matic Network, is a “layer 2” or “sidechain” scaling solution that runs alongside the Ethereum blockchain — allowing for speedy transactions and low fees. The two describe what the network is, why people choose to use it, and how to trade it on TastyWorks!
Wallets are digital address where crypto is stored. There are different types of wallets that trade off liquidity and security. Generally speaking, the higher the liquidity of your crypto, the lower the security and ownership level, and vice versa.
Wallets are digital address where crypto is stored. There are different types of wallets that trade off liquidity and security. Generally speaking, the higher the liquidity of your crypto, the lower the security and ownership level, and vice versa.
SPX and NDX extend losing streak to four consecutive weeks. ¾ months in the red. The 10-year treasury yield touches 3%. Record setting job openings and quits signifies tight labor market that Fed needs to disrupt.
SPX and NDX extend losing streak to four consecutive weeks. ¾ months in the red. The 10-year treasury yield touches 3%. Record setting job openings and quits signifies tight labor market that Fed needs to disrupt.
Oftentimes, we find ourselves in the gray area of making adjustments - where it could go either way. In these situations, it can be helpful to layer in some objectivity into the decision-making process, and this is where looking at the Delta and Probability-of-a-Touch (POT) can be extremely helpful. A quick glance at these metrics alone can often nudge you in one direction or the other.Did you catch my naked strategies for a $5,000 account segment?Check out my YouTube Series on Trade Management!
Oftentimes, we find ourselves in the gray area of making adjustments - where it could go either way. In these situations, it can be helpful to layer in some objectivity into the decision-making process, and this is where looking at the Delta and Probability-of-a-Touch (POT) can be extremely helpful. A quick glance at these metrics alone can often nudge you in one direction or the other.Did you catch my naked strategies for a $5,000 account segment?Check out my YouTube Series on Trade Management!
Interest rate futures not only present low-cost trading vehicles, but they can also be used to project the future path of rates associated with the FOMC. Thanks for Fed Funds futures, Eurodollar futures, and Small Yield futures, you can translate price to future rate hikes or cuts from the Fed. Finally, you can place trades on those respective markets depending on whether you think their projections are too low or high.Learn how to predict the Fed with interest rate futures, and get ready to trade the next FOMC based on what you think the odds of rate hikes or cuts should be.
Interest rate futures not only present low-cost trading vehicles, but they can also be used to project the future path of rates associated with the FOMC. Thanks for Fed Funds futures, Eurodollar futures, and Small Yield futures, you can translate price to future rate hikes or cuts from the Fed. Finally, you can place trades on those respective markets depending on whether you think their projections are too low or high.Learn how to predict the Fed with interest rate futures, and get ready to trade the next FOMC based on what you think the odds of rate hikes or cuts should be.
Join Nick and Mike as they walk through the new iPad tastyworks platform, and place new earnings trades in SBUX and LYFT!
Join Nick and Mike as they walk through the new iPad tastyworks platform, and place new earnings trades in SBUX and LYFT!
Liz and Jenny answer live viewer tweets. They talk about vega and look for earnings trades. They place a new jade lizard in AMD. They play roll it, hold it, or close it as they go through their positions and try to get May positions out to June. They adjust the GE iron condor and look at a new 0 DTE Spy strategy.
Liz and Jenny answer live viewer tweets. They talk about vega and look for earnings trades. They place a new jade lizard in AMD. They play roll it, hold it, or close it as they go through their positions and try to get May positions out to June. They adjust the GE iron condor and look at a new 0 DTE Spy strategy.
Anton joins Liz and Jenny and they have a discussion whether to scale up or reduce risk during heightened market volatility. Anton brings up the feeling of concern vs. fear and keeping a cool head while making trading decisions. They discuss the pros and cons this volatile market brings.
Anton joins Liz and Jenny and they have a discussion whether to scale up or reduce risk during heightened market volatility. Anton brings up the feeling of concern vs. fear and keeping a cool head while making trading decisions. They discuss the pros and cons this volatile market brings.
Portfolio margin is a great alternative to standard margin for those with large accounts that want margin relief for positions that are uncorrelated, or act as hedges. Keep in mind that the trade you put on with Reg T or PM has the same risk and opportunity, but PM calculations will generally have lower BPR, and it will be different with every trade depending on the composition of your account.
Portfolio margin is a great alternative to standard margin for those with large accounts that want margin relief for positions that are uncorrelated, or act as hedges. Keep in mind that the trade you put on with Reg T or PM has the same risk and opportunity, but PM calculations will generally have lower BPR, and it will be different with every trade depending on the composition of your account.
Even two traders who agree about what they think the market will do can wind up making different trades. Deciding between different trading strategies often comes down to a balance between profitability and risk. Today, Tom and Tony look at the data to compare outcomes for hypothetical traders who collected the same credit on the same assumption, but one chose undefined risk trades and other defined risk.
Even two traders who agree about what they think the market will do can wind up making different trades. Deciding between different trading strategies often comes down to a balance between profitability and risk. Today, Tom and Tony look at the data to compare outcomes for hypothetical traders who collected the same credit on the same assumption, but one chose undefined risk trades and other defined risk.
Victor joins Tom and Tony on this segment to share opinions about the evolution of self-directed trading versus money management. The “Fun Vacuum” (Tom’s previous alter ego) has a not-so-secret top-secret project coming up in the latest Cherry Bomb newsletter that Victor is fired up about as he defends Team Nebraska. Victor lived there - once. Tom has… ahem… strong opinions about Omaha-based Berkshire Hathaway. Tom and Tony talk about being advocates for independent investing and risk-taking. At the same time, Victor has a dissenting opinion about the old school money management firm and its controversial chairman. Did new traders come out of their experience with these “transactionally-driven” money managers with a more strategic understanding of the markets? The odds are low. But they participated – it was a start and a push into understanding how the markets work. This topic and more are discussed on today’s Hear Me Out.
Victor joins Tom and Tony on this segment to share opinions about the evolution of self-directed trading versus money management. The “Fun Vacuum” (Tom’s previous alter ego) has a not-so-secret top-secret project coming up in the latest Cherry Bomb newsletter that Victor is fired up about as he defends Team Nebraska. Victor lived there - once. Tom has… ahem… strong opinions about Omaha-based Berkshire Hathaway. Tom and Tony talk about being advocates for independent investing and risk-taking. At the same time, Victor has a dissenting opinion about the old school money management firm and its controversial chairman. Did new traders come out of their experience with these “transactionally-driven” money managers with a more strategic understanding of the markets? The odds are low. But they participated – it was a start and a push into understanding how the markets work. This topic and more are discussed on today’s Hear Me Out.
Today Errol and Kay review their trades from last week. The market is down for a 3rd consecutive day, so Kay and E take trade suggestions from TikTok.
Today Errol and Kay review their trades from last week. The market is down for a 3rd consecutive day, so Kay and E take trade suggestions from TikTok.
With our undefined-risk positions, we always want to aim to manage them at 21 DTE to avoid the gamma risk that is associated with carrying trades closer and closer to expiration. But when we look at the actual graph of gamma over time, we see that there isn’t much difference between 21 DTE and, say, 18 DTE. So if life ever gets in the way, and you can’t roll on time, an extra day or two isn’t going to matter much in the grand scheme of things.Did you catch my naked strategies for a $5,000 account segment?Check out my YouTube Series on Trade Management!
With our undefined-risk positions, we always want to aim to manage them at 21 DTE to avoid the gamma risk that is associated with carrying trades closer and closer to expiration. But when we look at the actual graph of gamma over time, we see that there isn’t much difference between 21 DTE and, say, 18 DTE. So if life ever gets in the way, and you can’t roll on time, an extra day or two isn’t going to matter much in the grand scheme of things.Did you catch my naked strategies for a $5,000 account segment?Check out my YouTube Series on Trade Management!
Zero sum games refer to any market that is so efficiently priced that the long-term effect on your account of committing a strategy to said market would be $0. Mike and Frank explore different ways of trading both futures and options in an effort to find edge in the market that can take their portfolios away from potential zero sum games.The futures dudes use standard deviations to create edge in trading outright futures, and then they look at the increasing odds of selling out-the-money options with the added 'fear' premium that can push your edge even higher.
Zero sum games refer to any market that is so efficiently priced that the long-term effect on your account of committing a strategy to said market would be $0. Mike and Frank explore different ways of trading both futures and options in an effort to find edge in the market that can take their portfolios away from potential zero sum games.The futures dudes use standard deviations to create edge in trading outright futures, and then they look at the increasing odds of selling out-the-money options with the added 'fear' premium that can push your edge even higher.
Mike and Nick discuss the pros and cons of neutral earnings trades - iron condors and strangles - from exposure to volatility and expectations around the profit targets and the time in trade.
Mike and Nick discuss the pros and cons of neutral earnings trades - iron condors and strangles - from exposure to volatility and expectations around the profit targets and the time in trade.
Liz and Jenny look at the bearish, bullish, and neutral trades in AAPL that were sent to our email. They discuss the big lizard vs. the spiked lizard.
Liz and Jenny look at the bearish, bullish, and neutral trades in AAPL that were sent to our email. They discuss the big lizard vs. the spiked lizard.
Liz and Jenny take a look at everything from COVID-19 prom pictures, Nashville girls' weekends, and earnings trade ideas.
Liz and Jenny take a look at everything from COVID-19 prom pictures, Nashville girls' weekends, and earnings trade ideas.
While earnings trades don’t tend to make up a large portion of our portfolios, we still put them on as engagement trades.Earnings offer high risk, high reward trades due to the sharp increase and, usually, subsequent decrease in IV.This earnings season, as with many prior, we’ve seen some large moves, predominantly to the downside. But, have these earnings moves been outside the expected range, or have most moves been “in” moves?Join Tom and Tony to find out!
While earnings trades don’t tend to make up a large portion of our portfolios, we still put them on as engagement trades.Earnings offer high risk, high reward trades due to the sharp increase and, usually, subsequent decrease in IV.This earnings season, as with many prior, we’ve seen some large moves, predominantly to the downside. But, have these earnings moves been outside the expected range, or have most moves been “in” moves?Join Tom and Tony to find out!
The break-even point is an important part of our analysis, as it always gives us a reference point for our position’s ultimate profit/loss at expiration. Thankfully, on simple strategies the break-even point is fairly straightforward to compute, but how do we approach the problem with more complex strategies? Today, we take a look at a Laddered Put strategy, and as predicted, the answer is not obvious!Did you catch our show last week on how to determine Delta/Theta levels for your portfolio?
The break-even point is an important part of our analysis, as it always gives us a reference point for our position’s ultimate profit/loss at expiration. Thankfully, on simple strategies the break-even point is fairly straightforward to compute, but how do we approach the problem with more complex strategies? Today, we take a look at a Laddered Put strategy, and as predicted, the answer is not obvious!Did you catch our show last week on how to determine Delta/Theta levels for your portfolio?
Current implied volatility levels and low equity prices caused a leveling out of put skew. This means that calls and puts are equally priced among equity indexes' strike prices. This suggests that call strategies may be more lucrative since you get paid more for selling calls relative to historical averages.
Current implied volatility levels and low equity prices caused a leveling out of put skew. This means that calls and puts are equally priced among equity indexes' strike prices. This suggests that call strategies may be more lucrative since you get paid more for selling calls relative to historical averages.
Tom joins Kay and E to look at their portfolios and help determine which positions need to be rolled out in time. With 21 days in this trade cycle, find out how extending duration can benefit an underwater position, and get Tom's take on other considerations that might help Kay and E make their rolling decision easier!
Tom joins Kay and E to look at their portfolios and help determine which positions need to be rolled out in time. With 21 days in this trade cycle, find out how extending duration can benefit an underwater position, and get Tom's take on other considerations that might help Kay and E make their rolling decision easier!
Jermal is joined by Kai Zeng from the tastytrade research team on this segment of Engineering the Trade. The Volatility Index returns to $30, signaling an opportunity to sell options at a premium, managing trades for small and large options portfolios, and creating content strategies for the Southeast Asian markets are all up for discussion on today's show.
Jermal is joined by Kai Zeng from the tastytrade research team on this segment of Engineering the Trade. The Volatility Index returns to $30, signaling an opportunity to sell options at a premium, managing trades for small and large options portfolios, and creating content strategies for the Southeast Asian markets are all up for discussion on today's show.
At tastytrade, we always like to roll our defined-risk strategies for a credit. But with a Vertical Spread, if you widen your strikes on a roll to collect that credit, you have to recognize that you’re actually adding risk to the trade. As we work through our TLT position, we see exactly how this works.Did you catch my naked strategies for a $5,000 account segment?Check out my YouTube Series on Trade Management!
At tastytrade, we always like to roll our defined-risk strategies for a credit. But with a Vertical Spread, if you widen your strikes on a roll to collect that credit, you have to recognize that you’re actually adding risk to the trade. As we work through our TLT position, we see exactly how this works.Did you catch my naked strategies for a $5,000 account segment?Check out my YouTube Series on Trade Management!
Pete and Anton compare and contrast how large market moves impact both options and futures. Discover what happens to your P/L when trading naked puts and static futures positions!
Pete and Anton compare and contrast how large market moves impact both options and futures. Discover what happens to your P/L when trading naked puts and static futures positions!
The easiest and most substantial ways to reduce risk can come in the size of the product you choose and the number of contracts. Futures dudes Mikey and Frank make sure that they are comfortable with the amount of risk in a futures trade from the outset by measuring the buying power required and asking if that is a comfortable amount for their account.Then, the guys talk about how taking losses on day trades can both reduce risk and open up your account for greater opportunities later that day or on into the future. Finally, Mikey talks about adding short options, long options, or both to 'collar' your directional trade in futures thereby reducing your position's risk.
The easiest and most substantial ways to reduce risk can come in the size of the product you choose and the number of contracts. Futures dudes Mikey and Frank make sure that they are comfortable with the amount of risk in a futures trade from the outset by measuring the buying power required and asking if that is a comfortable amount for their account.Then, the guys talk about how taking losses on day trades can both reduce risk and open up your account for greater opportunities later that day or on into the future. Finally, Mikey talks about adding short options, long options, or both to 'collar' your directional trade in futures thereby reducing your position's risk.
This week in earnings could have resulted in a pretty big swing in either direction with so many stocks that have high ETF weightings reporting this week - we got a mixed result though, with most staying inside the expected move.
Tune in for a breakdown with the OTC live crew and a Q&A session as well!
This week in earnings could have resulted in a pretty big swing in either direction with so many stocks that have high ETF weightings reporting this week - we got a mixed result though, with most staying inside the expected move.
Tune in for a breakdown with the OTC live crew and a Q&A session as well!
Anton and Jenny answer live viewer tweets. They talk about rolling at 21 DTE. Anton also suggests other earlier management for losing positions in this highly volatile market.
Anton and Jenny answer live viewer tweets. They talk about rolling at 21 DTE. Anton also suggests other earlier management for losing positions in this highly volatile market.
Anton and Jenny talk about mechanics on managing losing naked options. Anton brings up the mental hurdles that traders have to over come, especially the concept of turning a losing trade into a scratch. They talk about the stop loss feature and what the research is behind it.
Anton and Jenny talk about mechanics on managing losing naked options. Anton brings up the mental hurdles that traders have to over come, especially the concept of turning a losing trade into a scratch. They talk about the stop loss feature and what the research is behind it.
Staying small with lot sizing is important even when it seems that a strangle or short put are much less risky than a long stock position and you can afford to add more lots. When taking the short side of premium, the dynamic nature of options only works against us since negative gamma and spikes in IV are usually coupled together and cause exponentially more portfolio exposure.
Staying small with lot sizing is important even when it seems that a strangle or short put are much less risky than a long stock position and you can afford to add more lots. When taking the short side of premium, the dynamic nature of options only works against us since negative gamma and spikes in IV are usually coupled together and cause exponentially more portfolio exposure.
The biggest week of earnings season did not disappoint as it produced big ranges in stocks and futures and yielded the return of volatility! Join Tom, Tony and Jermal as they break it all down on This Week in Stocks.
The biggest week of earnings season did not disappoint as it produced big ranges in stocks and futures and yielded the return of volatility! Join Tom, Tony and Jermal as they break it all down on This Week in Stocks.
Nasdaq shows big gains as $FB, $QCOM and $PYPL save the day. The gross domestic product report showed that the U.S. economy shrank for first time since 2020. The European Union embargo on Russian oil is “imminent” now that Germany has blessed the idea.
Nasdaq shows big gains as $FB, $QCOM and $PYPL save the day. The gross domestic product report showed that the U.S. economy shrank for first time since 2020. The European Union embargo on Russian oil is “imminent” now that Germany has blessed the idea.
Big day in the portfolio today! After taking off our winning earnings trades from the other day in MSFT, FB, and V, we analyze some new strategies for AAPL and AMZN tonight. Specifically, we look at a Skewed Strangle in AAPL (skewed to the downside), and a bearish Broken-Wing Butterfly in AMZN. Both strategies allow us to benefit from short premium, while taking a directional bias.Did you catch my naked strategies for a $5,000 account segment? Check out my YouTube Series on Trade Management!
Big day in the portfolio today! After taking off our winning earnings trades from the other day in MSFT, FB, and V, we analyze some new strategies for AAPL and AMZN tonight. Specifically, we look at a Skewed Strangle in AAPL (skewed to the downside), and a bearish Broken-Wing Butterfly in AMZN. Both strategies allow us to benefit from short premium, while taking a directional bias.Did you catch my naked strategies for a $5,000 account segment? Check out my YouTube Series on Trade Management!
The tastytrade crew shares their trade ideas for the day! Mike and Nick buy a call diagonal spread in AAPL
Katie sells a put spread in TSLA
Tune in to learn more and a live Q&A as well!
The tastytrade crew shares their trade ideas for the day! Mike and Nick buy a call diagonal spread in AAPL
Katie sells a put spread in TSLA
Tune in to learn more and a live Q&A as well!
After a discussion of what's sending the Nasdaq higher, Pete and James turn their sights to some compelling visuals around correlations for futures products. Correlations are dynamic metrics that change with shifts in various markets. They walk through the S&P 500 and Ten Year Treasury notes and explain how they've been correlated or uncorrelated to various other futures markets.
After a discussion of what's sending the Nasdaq higher, Pete and James turn their sights to some compelling visuals around correlations for futures products. Correlations are dynamic metrics that change with shifts in various markets. They walk through the S&P 500 and Ten Year Treasury notes and explain how they've been correlated or uncorrelated to various other futures markets.
Forex trading is essentially a catchall for foreign exchange in both the spot (or cash) and futures marketplace. It can be as granular as EUR/JPY or as broad and simple as the US dollar market. Frank takes Errol, a newbie to forex trading, on a tour of different foreign exchange products ranging from currency crosses in the spot market to currency baskets, similar to the S&P 500, in the futures market.Finally, the guys jump into the platform to show you how to access forex markets in either futures (pure direction) or options (direction with volatility) products on Small US Dollar.
Forex trading is essentially a catchall for foreign exchange in both the spot (or cash) and futures marketplace. It can be as granular as EUR/JPY or as broad and simple as the US dollar market. Frank takes Errol, a newbie to forex trading, on a tour of different foreign exchange products ranging from currency crosses in the spot market to currency baskets, similar to the S&P 500, in the futures market.Finally, the guys jump into the platform to show you how to access forex markets in either futures (pure direction) or options (direction with volatility) products on Small US Dollar.
The Trafalgar Group’s founder and chief pollster, Robert Cahaly, returns to The Prediction Trade to walk through the 2022 midterms. Cahaly talks about his record—a winner prediction ratio of nearly 92%—and explains how his company approaches polling differently. He shares predictions for several midterm nominations, discusses how a Trump endorsement can flip a race, and contemplates the probability of Joe Biden or Kamala Harris leading the Democratic ticket in 2024.
The Trafalgar Group’s founder and chief pollster, Robert Cahaly, returns to The Prediction Trade to walk through the 2022 midterms. Cahaly talks about his record—a winner prediction ratio of nearly 92%—and explains how his company approaches polling differently. He shares predictions for several midterm nominations, discusses how a Trump endorsement can flip a race, and contemplates the probability of Joe Biden or Kamala Harris leading the Democratic ticket in 2024.
A viewer sent in a new trade idea, a version of a butterfly. Liz and Jenny walk through the mechanics and analyze the new trade. They also manage their account and look for earnings trade ideas.
A viewer sent in a new trade idea, a version of a butterfly. Liz and Jenny walk through the mechanics and analyze the new trade. They also manage their account and look for earnings trade ideas.
Liz and Jenny have been short the dollar, and it's starting to get painful. They talk about this crazy run and make adjustments to their /SFX position. They also look for premium in FXE.
Liz and Jenny have been short the dollar, and it's starting to get painful. They talk about this crazy run and make adjustments to their /SFX position. They also look for premium in FXE.
From a young age, we’ve always been told “don’t put all your eggs in one basket”. This proverb can be applied in all aspects of life, but is most fitting when discussing investing and trading. After seeing years of above average returns, it didn’t matter which stock, ETF, or crypto that we chose, as there was a high chance that it would be worth more when we went to sell it. Why diversify if any trade made money?Well, the first four months of 2022 have been a wake up call for traders about the detriments of putting too many eggs in one basket. Join Tom and Tony as they dive into why diversification is important.
From a young age, we’ve always been told “don’t put all your eggs in one basket”. This proverb can be applied in all aspects of life, but is most fitting when discussing investing and trading. After seeing years of above average returns, it didn’t matter which stock, ETF, or crypto that we chose, as there was a high chance that it would be worth more when we went to sell it. Why diversify if any trade made money?Well, the first four months of 2022 have been a wake up call for traders about the detriments of putting too many eggs in one basket. Join Tom and Tony as they dive into why diversification is important.
Short OTM options strategies are highly likely to hit profit targets between 25% and 50% at some point in the duration of the trade. Short 45 DTE 16Δ SPY strangles, for example, have roughly a 90% chance of reaching a 50% profit target. On average, it has taken roughly 15 trading days (about 24 days) for this target to be reached. How does implied volatility impact these profit statistics? Join Tom and Tony as they break down whether implied volatility significantly impacts profit statistics.
Short OTM options strategies are highly likely to hit profit targets between 25% and 50% at some point in the duration of the trade. Short 45 DTE 16Δ SPY strangles, for example, have roughly a 90% chance of reaching a 50% profit target. On average, it has taken roughly 15 trading days (about 24 days) for this target to be reached. How does implied volatility impact these profit statistics? Join Tom and Tony as they break down whether implied volatility significantly impacts profit statistics.
Is there such a thing as being too wealthy? In the days of old you bought a Ferrari, a yacht, a major league baseball team - a presidency - and, ahem - a movie production studio. Jeff Bezos, Elon Musk - Apple, Inc. have impacted our lives in the most profound and intrusive manner. Elon Musk's purchase of Twitter is unprecedented and potentially the most ballsy move by a billionaire to date. Tom and Dylan ask the question and present these examples of massive wealth inequality. When does it stop, and should it stop? Remember when print newspapers were independent, objective sources of news? The Washington Post was dying and then came along Jeff Bezos the white night with the golden ticket - who saved the newspaper by purchasing it - thus compromising news objectivity for all time. When is enough, enough?
Is there such a thing as being too wealthy? In the days of old you bought a Ferrari, a yacht, a major league baseball team - a presidency - and, ahem - a movie production studio. Jeff Bezos, Elon Musk - Apple, Inc. have impacted our lives in the most profound and intrusive manner. Elon Musk's purchase of Twitter is unprecedented and potentially the most ballsy move by a billionaire to date. Tom and Dylan ask the question and present these examples of massive wealth inequality. When does it stop, and should it stop? Remember when print newspapers were independent, objective sources of news? The Washington Post was dying and then came along Jeff Bezos the white night with the golden ticket - who saved the newspaper by purchasing it - thus compromising news objectivity for all time. When is enough, enough?
Puke-fest: Nasdaq drawdown comparable to Dec. 2018 and March 2020. Global growth worries push down yields. Russia is now weaponizing natural gas.
Puke-fest: Nasdaq drawdown comparable to Dec. 2018 and March 2020. Global growth worries push down yields. Russia is now weaponizing natural gas.
As yields increase in the U.S. global capital is flocking to the dollar, at the expense of currencies like Yen and Euro. Join Pete and Jermal as they take a look at a couple of currency futures and discuss the circumstances around their current downtrend.
As yields increase in the U.S. global capital is flocking to the dollar, at the expense of currencies like Yen and Euro. Join Pete and Jermal as they take a look at a couple of currency futures and discuss the circumstances around their current downtrend.
Stocks can theoretically fall all the way to $0, but what's a realistic measure of how far equity markets like the Nasdaq or Small Technology futures can decline? Experienced futures traders Katie and Frank crunch the numbers on historical selloffs in technology stocks to see if a short- or long-term bounce could be coming.Katie talks about using option prices, futures margin, and the Small Exchange Newsletter to gauge her downside risk in buying stocks with a more realistic value than the distance between your buy price and $0.
Stocks can theoretically fall all the way to $0, but what's a realistic measure of how far equity markets like the Nasdaq or Small Technology futures can decline? Experienced futures traders Katie and Frank crunch the numbers on historical selloffs in technology stocks to see if a short- or long-term bounce could be coming.Katie talks about using option prices, futures margin, and the Small Exchange Newsletter to gauge her downside risk in buying stocks with a more realistic value than the distance between your buy price and $0.
The tastytrade crew fields earnings options trades questions from the YouTube live chat in FB, QCOM, PYPL and more!
Mike buys a put diagonal spread in FB to lean into this selloff, buys a call spread in QCOM looking for a rally, and sells a put in PYPL to trade the high IV% in the weekly cycle for the earnings announcement.
Tune in to learn more!
The tastytrade crew fields earnings options trades questions from the YouTube live chat in FB, QCOM, PYPL and more!
Mike buys a put diagonal spread in FB to lean into this selloff, buys a call spread in QCOM looking for a rally, and sells a put in PYPL to trade the high IV% in the weekly cycle for the earnings announcement.
Tune in to learn more!
The Ichimoku cloud is one of the most popular technical indicators but also one of the most intimidating. Five trend lines and colored regions between them can make for a very busy chart, but they are intended to be able to be interpreted quickly.
Today, Jacob joins Tom and Tony to unpack the components of the cloud and explain why Ichimoku means "one look."
The Ichimoku cloud is one of the most popular technical indicators but also one of the most intimidating. Five trend lines and colored regions between them can make for a very busy chart, but they are intended to be able to be interpreted quickly.
Today, Jacob joins Tom and Tony to unpack the components of the cloud and explain why Ichimoku means "one look."
There are three moving parts in the standard formula for calculating expected move: Price, IV, and Duration.But which one of these is essential in determining its value?Join Tom and Tony as they discuss how IV can impact the expected move value.
There are three moving parts in the standard formula for calculating expected move: Price, IV, and Duration.But which one of these is essential in determining its value?Join Tom and Tony as they discuss how IV can impact the expected move value.
Inflationary fears turning into Recessionary. Elon seals the deal and take TWTR private.Are GE earnings a microcosm for the majority?Engineering the Trade has got you covered on these topics and more!
Today is one of the heaviest earnings days of the year. So we put on Call Broken-Wing Butterfly in GOOGL, an Expected Move Butterfly in MSFT, a Short Call Spread in CMG, a Short Put in FB, and a Super Bull in V. Our Super Bull from UPS yesterday worked so well, that we decided to try it again for tonight’s call in Visa.Did you catch my naked strategies for a $5,000 account segment?Check out my YouTube Series on Trade Management!
Today is one of the heaviest earnings days of the year. So we put on Call Broken-Wing Butterfly in GOOGL, an Expected Move Butterfly in MSFT, a Short Call Spread in CMG, a Short Put in FB, and a Super Bull in V. Our Super Bull from UPS yesterday worked so well, that we decided to try it again for tonight’s call in Visa.Did you catch my naked strategies for a $5,000 account segment?Check out my YouTube Series on Trade Management!
Scalping futures implies short-term trading strategies (sometimes intraday) that attempt to profit from large moves happening in the market. Those with long-term positions in the stock market or any asset class can feel left out of short-term opportunities given their existing biases.Experienced futures traders Jermal and Frank show you how to trade around a core investment you have going in the long term with potential day trades you can get going in the short term.
If all of the big-name tech stocks have strong earnings, we could see a big move to the upside in broad-based indices. The same story rings true for downside movements. Tune in to learn how much of an impact these earnings announcements can have on SPY, QQQ and XLK today on OTC Live!
If all of the big-name tech stocks have strong earnings, we could see a big move to the upside in broad-based indices. The same story rings true for downside movements. Tune in to learn how much of an impact these earnings announcements can have on SPY, QQQ and XLK today on OTC Live!
Smaller delta strangles carry a much higher POP but they are prone to more outlier risk as a multiple of how much premium they carry. Since the outliers on a 5∆ strangle tend to be so much more severe as a multiple of credit than higher delta strangles, it becomes nearly impossible to size up… so even though you get a much smaller credit, each dollar in credit you receive could be exposed to more than twice the outlier risk than each dollar in credit of a larger delta strangle. Currently, a 5∆ strangle in SPY is trading for around $2.00 and a 25∆ strangle at $12.00 (in June). If you wanted to trade six 5∆ strangles to get the same premium as the 25∆ but with the higher POP, you would actually be carrying more than twice the total outlier risk than just selling one 25∆ strangle.
Smaller delta strangles carry a much higher POP but they are prone to more outlier risk as a multiple of how much premium they carry. Since the outliers on a 5∆ strangle tend to be so much more severe as a multiple of credit than higher delta strangles, it becomes nearly impossible to size up… so even though you get a much smaller credit, each dollar in credit you receive could be exposed to more than twice the outlier risk than each dollar in credit of a larger delta strangle. Currently, a 5∆ strangle in SPY is trading for around $2.00 and a 25∆ strangle at $12.00 (in June). If you wanted to trade six 5∆ strangles to get the same premium as the 25∆ but with the higher POP, you would actually be carrying more than twice the total outlier risk than just selling one 25∆ strangle.
Outlier events, in terms of the expected move, are infrequent, but if you trade enough, they'll happen to you and your underlyings. It can be hard figuring out what do in the wake of these outlier events. Today, Tom and Tony look at the data to see how the market has behaved in the weeks, months, and years following large daily drops.
Outlier events, in terms of the expected move, are infrequent, but if you trade enough, they'll happen to you and your underlyings. It can be hard figuring out what do in the wake of these outlier events. Today, Tom and Tony look at the data to see how the market has behaved in the weeks, months, and years following large daily drops.
What are the consequences for the luxury electric car maker after purchasing the popular social media platform for a whopping $44 billion? Is this simply a distraction for Musk? What will it mean for Twitter's 76.9 million users once it goes private with a reported $54.20 per share being offered to shareholders? Is freedom of speech on Twitter dead? So many questions. Twitter is not a money maker - or is it? Its influence cannot be denied. Tom, Tony, and Victor discuss.
What are the consequences for the luxury electric car maker after purchasing the popular social media platform for a whopping $44 billion? Is this simply a distraction for Musk? What will it mean for Twitter's 76.9 million users once it goes private with a reported $54.20 per share being offered to shareholders? Is freedom of speech on Twitter dead? So many questions. Twitter is not a money maker - or is it? Its influence cannot be denied. Tom, Tony, and Victor discuss.
There are now a one-in-five odds of 75 bps hike in June. China's lockdown has extended from Shanghai to Beijing and is disrupting supply chains in the process. The U.S. Dollar rallying for fourth week of gains and shows no signs of slowing down.
There are now a one-in-five odds of 75 bps hike in June. China's lockdown has extended from Shanghai to Beijing and is disrupting supply chains in the process. The U.S. Dollar rallying for fourth week of gains and shows no signs of slowing down.
Sooner or later, the untested side that you originally rolled will itself become the tested side. When this happens, what should you do? Should you roll the other side in, or sit and do nothing? Today, Dr. Jim looks at the KR position and weighs the different options available.Did you catch Dr. Jim's naked strategies for a $5,000 account segment?Check out his YouTube Series on Trade Management!
Sooner or later, the untested side that you originally rolled will itself become the tested side. When this happens, what should you do? Should you roll the other side in, or sit and do nothing? Today, Dr. Jim looks at the KR position and weighs the different options available.Did you catch Dr. Jim's naked strategies for a $5,000 account segment?Check out his YouTube Series on Trade Management!
Traders often look to capitalize on IV contraction after an earnings announcement. This means selling premium in the weekly or monthly cycle, where IV exposure is high. In today's episode, Mike and Nick walk through guidelines for trading earnings, including how to gauge a volatility contraction, what strategies to choose, and considerations for the expiration cycle of your setup.
Traders often look to capitalize on IV contraction after an earnings announcement. This means selling premium in the weekly or monthly cycle, where IV exposure is high. In today's episode, Mike and Nick walk through guidelines for trading earnings, including how to gauge a volatility contraction, what strategies to choose, and considerations for the expiration cycle of your setup.
For the first time since February, gold futures have fallen below $1,900 in a rare show of weakness for precious metals. Nasdaq futures are trying to shake off the rate hike-induced sell-off and volatility is ripe for the selling. Crude continues to jump around and bonds make for an interesting trade as well. To start the week, as always, Pete and Jermal walk you through the futures to watch and talk about some sample trades.
For the first time since February, gold futures have fallen below $1,900 in a rare show of weakness for precious metals. Nasdaq futures are trying to shake off the rate hike-induced sell-off and volatility is ripe for the selling. Crude continues to jump around and bonds make for an interesting trade as well. To start the week, as always, Pete and Jermal walk you through the futures to watch and talk about some sample trades.
Mean reversion infers that a market or measure has an average value that it moves around while always coming back at some point. For example, Mikey talks about how implied volatility has historically mean reverted letting traders sell options when they are more expensive than average.Then, he and Frank test US dollars, Tesla stock, and natural gas for mean-reverting qualities before concluding with some strategic measures they take to get small when trading futures on mean reversion.
Mean reversion infers that a market or measure has an average value that it moves around while always coming back at some point. For example, Mikey talks about how implied volatility has historically mean reverted letting traders sell options when they are more expensive than average.Then, he and Frank test US dollars, Tesla stock, and natural gas for mean-reverting qualities before concluding with some strategic measures they take to get small when trading futures on mean reversion.
Amy Brusselback is the Founder and Principal of Design B&B, which is not just another brand consulting and design agency. They exist to discover & elevate a brand's strength so that its story is heard. Design B&B has a market-based, business-minded approach to design. Their bottom line - their work hasn't done its job if it doesn't grow their client's business.
Amy attended Cornell University, and has a BFA in Design and Visual Communications, from Maryland Institute College of Art.
Amy Brusselback is the Founder and Principal of Design B&B, which is not just another brand consulting and design agency. They exist to discover & elevate a brand's strength so that its story is heard. Design B&B has a market-based, business-minded approach to design. Their bottom line - their work hasn't done its job if it doesn't grow their client's business.
Amy attended Cornell University, and has a BFA in Design and Visual Communications, from Maryland Institute College of Art.
In previous segments, we’ve discussed how allocating a small portion of your portfolio towards cryptocurrencies can potentially lower your overall portfolio risk due to diversification.However, for investors new to the crypto markets, it may be challenging to choose one or two specific cryptos. With 25 cryptos now offered on tastyworks, it is intimidating to figure out which crypto might provide the best exposure.As a means of gaining exposure to the crypto market, how much does the choice in asset matter?Join Tom and Tony to find out!
In previous segments, we’ve discussed how allocating a small portion of your portfolio towards cryptocurrencies can potentially lower your overall portfolio risk due to diversification.However, for investors new to the crypto markets, it may be challenging to choose one or two specific cryptos. With 25 cryptos now offered on tastyworks, it is intimidating to figure out which crypto might provide the best exposure.As a means of gaining exposure to the crypto market, how much does the choice in asset matter?Join Tom and Tony to find out!
Alongside options, many tastytraders trade the futures market, too – another derivatives product that can offer significant flexibility and versatility with portfolio management. But with the futures markets comes a whole slew of different expirations, tick sizes, and contract values. And even inside of the same product, the price differences can be significant from month to month - a phenomenon that can be explained by understanding the cost of carry.Did you catch our show last week on how to determine Delta/Theta levels for your portfolio?
Alongside options, many tastytraders trade the futures market, too – another derivatives product that can offer significant flexibility and versatility with portfolio management. But with the futures markets comes a whole slew of different expirations, tick sizes, and contract values. And even inside of the same product, the price differences can be significant from month to month - a phenomenon that can be explained by understanding the cost of carry.Did you catch our show last week on how to determine Delta/Theta levels for your portfolio?
In this Options Jive, Anton joins Tom and Tony with research-driven statistics including: correlations, expected moves, implied volatility overstatement, historical volatilities, pairs trades expected moves, and price ranks.
In this Options Jive, Anton joins Tom and Tony with research-driven statistics including: correlations, expected moves, implied volatility overstatement, historical volatilities, pairs trades expected moves, and price ranks.
Today Kayla and Errol are joined by Katie to talk about navigating weak markets. Katie speaks on broken wing butterfly management, and why Errol should give his position more time. To wrap up the week, Kayla was assigned on her $PFE position and shares how it worked out in her favor.
Today Kayla and Errol are joined by Katie to talk about navigating weak markets. Katie speaks on broken wing butterfly management, and why Errol should give his position more time. To wrap up the week, Kayla was assigned on her $PFE position and shares how it worked out in her favor.
上次节目中我们提到了以铁鹰组合为代表的风险定义的策略组合可以通过改变翅膀的宽度来调整他们的属性。从理论分析上，我们也从中找到一些规律。那么对于历史绩效来看这些规律是否也存在并且保持统一？我们的真实绩效和理论推测之间的差距又有多大？这期节目我们就来讨论一下
In the previous episode, we discussed that changing the width of the wings of Iron Condors can also change the dynamics of their risk profiles, similar to all other risk-defined strategies. We are also able to find some patterns based on our theoretical analysis. But does the historical performance tell us the same story and do we still see the same pattern? Let’s dive into this episode today.
On today's show, Eddie Rajcevic from the tastytrade research joins Jermal Chandler to discuss FAANG stocks after the $NFLX carnage, give their thoughts on technical analysis versus fundamental trading, and end off on a conversation about crypto tokens, de-fi, and crypto equities.
On today's show, Eddie Rajcevic from the tastytrade research joins Jermal Chandler to discuss FAANG stocks after the $NFLX carnage, give their thoughts on technical analysis versus fundamental trading, and end off on a conversation about crypto tokens, de-fi, and crypto equities.
Following the tastytrade mechanics for strategy adjustment, we’re able to routinely reduce our overall risk with the adjustments we make to a position. By simply rolling out in time for a credit, risk is reduced as break-even points are widened. Of course, this doesn’t mean that the position is guaranteed to be profitable, but it does mean that overall losses can be mitigated with this strategy.Segment on embedded Short Verticals.Did you catch my naked strategies for a $5,000 account segment?Check out my YouTube Series on Trade Management!
Following the tastytrade mechanics for strategy adjustment, we’re able to routinely reduce our overall risk with the adjustments we make to a position. By simply rolling out in time for a credit, risk is reduced as break-even points are widened. Of course, this doesn’t mean that the position is guaranteed to be profitable, but it does mean that overall losses can be mitigated with this strategy.Segment on embedded Short Verticals.Did you catch my naked strategies for a $5,000 account segment?Check out my YouTube Series on Trade Management!
Interest rates have long been one of the most mean-reverting assets out there, but they can move far from that mean, drawing much attention and opportunity from traders. Mikey and Frank crunch more than a decade of historical numbers on 2 Year Treasury Yields to see how much of an outlier current rates near 3% actually are. See how our experienced futures dudes are trading an interest rate asset class nearing decade-long highs, and find out where this mean-reverting market could fall to in the long term.
Interest rates have long been one of the most mean-reverting assets out there, but they can move far from that mean, drawing much attention and opportunity from traders. Mikey and Frank crunch more than a decade of historical numbers on 2 Year Treasury Yields to see how much of an outlier current rates near 3% actually are. See how our experienced futures dudes are trading an interest rate asset class nearing decade-long highs, and find out where this mean-reverting market could fall to in the long term.
Considering the effect that rising rates have on options, we have to separate the effect into two parts: the actual increase in the cost of money, and the added market risk indirectly caused by rising rates. The effect that rising costs of money have on an option is measured by the greek, rho. This is usually insignificant and not tradable. Think of it like a scheduled dividend that adjusts the prices of options to account for it. The added market risk caused by rising rates is factored into the implied volatility, therefore, it is already considered when we place a trade.
Considering the effect that rising rates have on options, we have to separate the effect into two parts: the actual increase in the cost of money, and the added market risk indirectly caused by rising rates. The effect that rising costs of money have on an option is measured by the greek, rho. This is usually insignificant and not tradable. Think of it like a scheduled dividend that adjusts the prices of options to account for it. The added market risk caused by rising rates is factored into the implied volatility, therefore, it is already considered when we place a trade.
SPX and NDX are looking at three consecutive weeks of losses and everyone is blaming a hawkish-minded Fed. Mikey, Nicky and Jermal take a look at what’s moving markets on This Week in Stocks.
Market highlights include:
- Last 3-week loss for SPX was Mar ‘21; NDX was May ‘21.
- Six FOMC meetings: 1.50% or 2.25% by end of ‘22?
- Dollar has gained for 3 consecutive weeks; nearing May ‘20 levels.
- May straddles: TLT is 5% and 21 vol; SPY is 4% and 19 vol.
SPX and NDX are looking at three consecutive weeks of losses and everyone is blaming a hawkish-minded Fed. Mikey, Nicky and Jermal take a look at what’s moving markets on This Week in Stocks.
Market highlights include:
- Last 3-week loss for SPX was Mar ‘21; NDX was May ‘21.
- Six FOMC meetings: 1.50% or 2.25% by end of ‘22?
- Dollar has gained for 3 consecutive weeks; nearing May ‘20 levels.
- May straddles: TLT is 5% and 21 vol; SPY is 4% and 19 vol.
Today Errol and Kayla break down the differences of a coin and token. These terms may often be used interchangeably, but E and Kay share examples that help them understand the difference.
Today Errol and Kayla break down the differences of a coin and token. These terms may often be used interchangeably, but E and Kay share examples that help them understand the difference.
Blockchain technology has a lot of potential for growth for both developed and emerging markets. In this segment, we have Eddie, Anton and Ryan to discuss the surface level applications of blockchain technology to finance and technology that makes financial markets more accessible to everyone around the globe.
Blockchain technology has a lot of potential for growth for both developed and emerging markets. In this segment, we have Eddie, Anton and Ryan to discuss the surface level applications of blockchain technology to finance and technology that makes financial markets more accessible to everyone around the globe.
When you have a neutral strategy on, and one side has become a clear winner, it can be challenging to know what to do with the untested side. With undefined-risk strategies, we typically opt to [roll that untested side in closer to the stock price, but what about with a defined-risk strategy, such as an Iron Condor? Today on the YouTube Livestream, we discuss the main benefits of legging out versus not legging out. Did you catch my naked strategies for a $5,000 account segment? Check out my YouTube Series on Trade Management!
When you have a neutral strategy on, and one side has become a clear winner, it can be challenging to know what to do with the untested side. With undefined-risk strategies, we typically opt to [roll that untested side in closer to the stock price, but what about with a defined-risk strategy, such as an Iron Condor? Today on the YouTube Livestream, we discuss the main benefits of legging out versus not legging out. Did you catch my naked strategies for a $5,000 account segment? Check out my YouTube Series on Trade Management!
Large moves around earnings can impact the equity index futures, especially in the overnight session after. Pete and James take a look at large earnings announcements in the coming week and how they could impact the futures. They run through how to calculate the expected impact of a 1 standard deviation move in the futures products based on the expected moves of the stocks.
Large moves around earnings can impact the equity index futures, especially in the overnight session after. Pete and James take a look at large earnings announcements in the coming week and how they could impact the futures. They run through how to calculate the expected impact of a 1 standard deviation move in the futures products based on the expected moves of the stocks.
Crude oil can offer some of the greatest opportunity with some of the highest risk of any market, and the traditional futures are often too big for everyday people. Errol and Frank show you small crude oil futures to start to diminish risk in the market, and then they throw crude oil options on top of their futures position to make the trade even smaller.The guys show the price extreme crude oil currently trades at using historical prices, and they talk about the potential of a short crude oil trade before making that idea smaller and less risky.
Crude oil can offer some of the greatest opportunity with some of the highest risk of any market, and the traditional futures are often too big for everyday people. Errol and Frank show you small crude oil futures to start to diminish risk in the market, and then they throw crude oil options on top of their futures position to make the trade even smaller.The guys show the price extreme crude oil currently trades at using historical prices, and they talk about the potential of a short crude oil trade before making that idea smaller and less risky.
Mike is looking at an American Express setup, Nick has his eyes on SPY, and Katie is leaning long precious metals. Discover the details of their options and futures trades in today's show! Then, stick around as they talk about whether or not Netflix can recover, management for deep ITM spreads, and trading around core positions.
Mike is looking at an American Express setup, Nick has his eyes on SPY, and Katie is leaning long precious metals. Discover the details of their options and futures trades in today's show! Then, stick around as they talk about whether or not Netflix can recover, management for deep ITM spreads, and trading around core positions.
Tom Sosnoff is no stranger to financial markets, and on this episode of The Prediction Trade the founder and co-CEO of tastytrade shares his take on events-based prediction markets. Tom walks through a handful of markets on Kalshi and PredictIt, and he ties it all together with a surprise 2024 Democratic presidential nomination forecast.
Tom Sosnoff is no stranger to financial markets, and on this episode of The Prediction Trade the founder and co-CEO of tastytrade shares his take on events-based prediction markets. Tom walks through a handful of markets on Kalshi and PredictIt, and he ties it all together with a surprise 2024 Democratic presidential nomination forecast.
On this day in 1982 the very first /ES contract was traded. Liz and Jenny take a look at their current futures positions and add a /CL iron condor and a /S2y /S10y pairs trade.
On this day in 1982 the very first /ES contract was traded. Liz and Jenny take a look at their current futures positions and add a /CL iron condor and a /S2y /S10y pairs trade.
So far this year, cryptocurrencies, like bitcoin and ether, and crypto-focused companies, like Coinbase, have struggled to match the prior year’s performance. This is not unique to these two assets, as many other risk assets have seen a decrease in value alongside heightened uncertainty and an increase in interest rates.Many traditional equity traders have flocked to crypto-focused stocks to gain exposure to the crypto market, but has this been a successful alternative to the underlying cryptocurrencies? How has the performance of the two asset classes compared, and why might there be some discrepancies?Join Tom and Tony to find out!
So far this year, cryptocurrencies, like bitcoin and ether, and crypto-focused companies, like Coinbase, have struggled to match the prior year’s performance. This is not unique to these two assets, as many other risk assets have seen a decrease in value alongside heightened uncertainty and an increase in interest rates.Many traditional equity traders have flocked to crypto-focused stocks to gain exposure to the crypto market, but has this been a successful alternative to the underlying cryptocurrencies? How has the performance of the two asset classes compared, and why might there be some discrepancies?Join Tom and Tony to find out!
According to the Black-Scholes Model, option contracts with the same underlying and duration should have the same implied volatility across strikes. However, since the market values each contract differently, a volatility smile often appears. The volatility smile of an underlying gives traders an idea of the perceived value of its options, and can be a powerful tool for short premium traders. Join Tom and Tony as they break down the different types of volatility smiles. Learn how to get your copy of "The Unlucky Investor’s Guide to Options Trading."
According to the Black-Scholes Model, option contracts with the same underlying and duration should have the same implied volatility across strikes. However, since the market values each contract differently, a volatility smile often appears. The volatility smile of an underlying gives traders an idea of the perceived value of its options, and can be a powerful tool for short premium traders. Join Tom and Tony as they break down the different types of volatility smiles. Learn how to get your copy of "The Unlucky Investor’s Guide to Options Trading."
Change is the only constant. Skeptical? So are we. Netflix stock is down today by over 35%. Crypto trading volumes are also off by 40% and have been since the end of 2021. You might be impacted if you’re long on Netflix or dependent upon crypto trading volumes for income. Tom and Dylan discuss the upside of the Netflix stock challenge through the eyes of content creators, who may up their game when it comes to content delivery. These topics and more are all discussed in today’s episode.
Change is the only constant. Skeptical? So are we. Netflix stock is down today by over 35%. Crypto trading volumes are also off by 40% and have been since the end of 2021. You might be impacted if you’re long on Netflix or dependent upon crypto trading volumes for income. Tom and Dylan discuss the upside of the Netflix stock challenge through the eyes of content creators, who may up their game when it comes to content delivery. These topics and more are all discussed in today’s episode.
Streaming party over? NFLX loses subscribers for the first time in a decade. 10-year real yields turn positive for first time since ‘20 so does that mean we've hit peak inflation? Or are 10-year yields just rising THAT fast? On the flipside AND other side of the world, Japan’s loose monetary trend is committed to keeping yields depressed.All that and more on Engineering the Trade!
Streaming party over? NFLX loses subscribers for the first time in a decade. 10-year real yields turn positive for first time since ‘20 so does that mean we've hit peak inflation? Or are 10-year yields just rising THAT fast? On the flipside AND other side of the world, Japan’s loose monetary trend is committed to keeping yields depressed.All that and more on Engineering the Trade!
Yield curve spreads like the NOB and TUT have been traded for decades mostly by industry professionals, but now everyday people can access these opportunities using products of appropriate size like the Small 10YR Yield futures. Katie and Frank talk about past trades in the TUT spread (S10Y-S2Y) before taking on a new opportunity in the NOB spread (S30Y-S10Y) that's abnormally low at the moment.Find out what the NOB and TUT spreads actually are as well as how you can trade them using Small Exchange futures.
Yield curve spreads like the NOB and TUT have been traded for decades mostly by industry professionals, but now everyday people can access these opportunities using products of appropriate size like the Small 10YR Yield futures. Katie and Frank talk about past trades in the TUT spread (S10Y-S2Y) before taking on a new opportunity in the NOB spread (S30Y-S10Y) that's abnormally low at the moment.Find out what the NOB and TUT spreads actually are as well as how you can trade them using Small Exchange futures.
With bullish strategies like a short put, delta and vega can be synergized if a bullish move is also paired with an IV contraction. The opposite is true for short calls - an IV contraction can actually hedge against a bullish move against the call seller.
Tune in to learn more about different strategies and greek implications, with a live Q&A session as well!
With bullish strategies like a short put, delta and vega can be synergized if a bullish move is also paired with an IV contraction. The opposite is true for short calls - an IV contraction can actually hedge against a bullish move against the call seller.
Tune in to learn more about different strategies and greek implications, with a live Q&A session as well!
Hen of the Woods strives to be a better snack food company committed to carbon-neutral & efficient operations, ethical sourcing, using low-impact ingredients & environmental packaging. They are online and in thousands of stores such as Whole Foods and Amazon, among others. Nick Marckwald is the Founder & CEO, and Brady Delong is COO of Hen of the Woods.
Hen of the Woods strives to be a better snack food company committed to carbon-neutral & efficient operations, ethical sourcing, using low-impact ingredients & environmental packaging. They are online and in thousands of stores such as Whole Foods and Amazon, among others. Nick Marckwald is the Founder & CEO, and Brady Delong is COO of Hen of the Woods.
Editorial director Jeff Joseph joins Tom and Tony on today's episode of tasty extras to discuss the latest edition of Luckbox Magazine titled: The Big Issue with Energy. In this issue, our own Tim Knight explores the rise of solar stocks, Pete Mulmat tackles Crypto versus oil, and Vonetta Logan kicks all of it off by "stealing" Tom's car for a day to give an in-depth review of what it's like to tool around in a Tesla. Are luxury electric cars worth all the hype? Hint: She's sorry, not sorry. Check it out.
Editorial director Jeff Joseph joins Tom and Tony on today's episode of tasty extras to discuss the latest edition of Luckbox Magazine titled: The Big Issue with Energy. In this issue, our own Tim Knight explores the rise of solar stocks, Pete Mulmat tackles Crypto versus oil, and Vonetta Logan kicks all of it off by "stealing" Tom's car for a day to give an in-depth review of what it's like to tool around in a Tesla. Are luxury electric cars worth all the hype? Hint: She's sorry, not sorry. Check it out.
Probability of a touch and in-the-money percentage are two important probability statistics for option traders to keep in mind. There is a very simple approximate relationship between the two, but nuances related to the underlying can muddy the situation. Today, Jacob joins Tom and Tony to discuss these two probabilities and explain how the efficient market hypothesis relates them to one another.
Probability of a touch and in-the-money percentage are two important probability statistics for option traders to keep in mind. There is a very simple approximate relationship between the two, but nuances related to the underlying can muddy the situation. Today, Jacob joins Tom and Tony to discuss these two probabilities and explain how the efficient market hypothesis relates them to one another.
Using the standard formula to calculate the expected move could be complex due to the difficulty of getting the square root of a non-integer number.But, since most traders only care about the daily expected move, we are able to find a great alternative solution.Join Tom and Tony as they discuss a quick and easy way to calculate the expected daily move of any stocks or futures.
Using the standard formula to calculate the expected move could be complex due to the difficulty of getting the square root of a non-integer number.But, since most traders only care about the daily expected move, we are able to find a great alternative solution.Join Tom and Tony as they discuss a quick and easy way to calculate the expected daily move of any stocks or futures.
The blockchain has many properties and attributes that make it unique from other methods of conducting transactions. Besides cryptocurrencies, blockchains are a secure way of transmitting information digitally with very low friction. Since there is no central institution on which it was built, blockchain can operate with little intermediary costs.
The blockchain has many properties and attributes that make it unique from other methods of conducting transactions. Besides cryptocurrencies, blockchains are a secure way of transmitting information digitally with very low friction. Since there is no central institution on which it was built, blockchain can operate with little intermediary costs.
Oil snaps a four-day rally as Shanghai lightens up restrictions. Natural gas finally has a meaningful pullback after rising for 11 out of 13 days. The 2s10s treasury curve continues to steepen aggressively over the past four weeks. Commodity futures in backwardation remains at record levels and shows no signs of slowing down.Join Engineering the Trade to find out more.
Oil snaps a four-day rally as Shanghai lightens up restrictions. Natural gas finally has a meaningful pullback after rising for 11 out of 13 days. The 2s10s treasury curve continues to steepen aggressively over the past four weeks. Commodity futures in backwardation remains at record levels and shows no signs of slowing down.Join Engineering the Trade to find out more.
Broken-Wing Butterflies with their embedded Verticals are complex strategies, so tracking their profit/loss isn’t as straightforward as some of the simpler strategies, such as Vertical Spreads or Short Puts. But to best understand how the position will respond when the stock price moves, it’s helpful to break prices down into three possible regions: all options OTM, all options ITM, and everything in between. While the OTM and ITM outcomes are fairly simple to analyze, as we see today with our SPY position, it is the in-between area where it can be a lot more challenging to clearly track P/L changes.Did you catch my naked strategies for a $5,000 account segment?
Broken-Wing Butterflies with their embedded Verticals are complex strategies, so tracking their profit/loss isn’t as straightforward as some of the simpler strategies, such as Vertical Spreads or Short Puts. But to best understand how the position will respond when the stock price moves, it’s helpful to break prices down into three possible regions: all options OTM, all options ITM, and everything in between. While the OTM and ITM outcomes are fairly simple to analyze, as we see today with our SPY position, it is the in-between area where it can be a lot more challenging to clearly track P/L changes.Did you catch my naked strategies for a $5,000 account segment?
Chris and Pete provide an outlook into weekly micro and macro events and share what's moving given current market conditions.
Discussion topics include: March US inflation rates, April Federal Reserve rate decision, final March Eurozone inflation report, US treasury yield curve inversion, and more!
Chris and Pete provide an outlook into weekly micro and macro events and share what's moving given current market conditions.
Discussion topics include: March US inflation rates, April Federal Reserve rate decision, final March Eurozone inflation report, US treasury yield curve inversion, and more!
Gold can present diversified price action relative to the stock market, which can create positions that move independently from your equity positions. Jermal and Frank talk about this unique opportunity, and they borrow some strategies from their stock options trading (e.g. strangles and short calls).Finally, the futures dudes crunch some numbers around overstatement of implied volatility in the Small Precious Metals (SPRE) futures options market before selling a call in SPRE themselves.
Gold can present diversified price action relative to the stock market, which can create positions that move independently from your equity positions. Jermal and Frank talk about this unique opportunity, and they borrow some strategies from their stock options trading (e.g. strangles and short calls).Finally, the futures dudes crunch some numbers around overstatement of implied volatility in the Small Precious Metals (SPRE) futures options market before selling a call in SPRE themselves.
Tune in to learn about how ITM, OTM and ATM options differ when it comes to greek exposure with the passage of time, implied volatility increases & decreases, and stock price movement!
Tune in to learn about how ITM, OTM and ATM options differ when it comes to greek exposure with the passage of time, implied volatility increases & decreases, and stock price movement!
Anton joins Liz and Jenny with a study on the meaning behind Trade Small, Trade Often. They discuss what that means for various account sizes. They also talk about number of occurrences and keeping the odds in your favor.
Anton joins Liz and Jenny with a study on the meaning behind Trade Small, Trade Often. They discuss what that means for various account sizes. They also talk about number of occurrences and keeping the odds in your favor.
When we trade often, the benefit is never observed in the short term because portfolio volatility is a long-term measurement. The average return of a portfolio of 50 random stocks has a much higher likelihood of being closer to an expected return (in this case, the S&P 500 return) than the average return of a portfolio with 5 stocks.
This concept can be applied the same way to option strategies. Combined with trading small, “trading often” leads to the same goal of reducing the uncertainty in a portfolio’s expected return.
When we trade often, the benefit is never observed in the short term because portfolio volatility is a long-term measurement. The average return of a portfolio of 50 random stocks has a much higher likelihood of being closer to an expected return (in this case, the S&P 500 return) than the average return of a portfolio with 5 stocks.
This concept can be applied the same way to option strategies. Combined with trading small, “trading often” leads to the same goal of reducing the uncertainty in a portfolio’s expected return.
When it comes to selling premium, all a trader wants is a good credit received on a trade with a strike that never comes close to being tested. But we can't always get what we want. Sometimes those strikes are going to get broken. Should we give up on those trades or hold out to see if they will turn around?
Today, Tom and Tony look at the data to see how often broken strikes manage to return to out-of-the-money during the life of the trade and how our choice of strikes affects this.
When it comes to selling premium, all a trader wants is a good credit received on a trade with a strike that never comes close to being tested. But we can't always get what we want. Sometimes those strikes are going to get broken. Should we give up on those trades or hold out to see if they will turn around?
Today, Tom and Tony look at the data to see how often broken strikes manage to return to out-of-the-money during the life of the trade and how our choice of strikes affects this.
Are we at the mercy of the whimsical billionaire? Join Tom, Tony and Victor as they discuss how this new generation of billionaires, like Elon Musk, disrupt capitalism and if it's good for business. They dive into Elon Musk's bid for Twitter and the motive and impact around it.
Are we at the mercy of the whimsical billionaire? Join Tom, Tony and Victor as they discuss how this new generation of billionaires, like Elon Musk, disrupt capitalism and if it's good for business. They dive into Elon Musk's bid for Twitter and the motive and impact around it.
Normally with our trades, we enter for a credit and exit for a debit, or we enter for a debit and exit for a credit. But sometimes on the rare occasion, we can actually enter for a credit, and then exit the same position for another credit. How does this work? As we look at our current position in C, we break down exactly why this happens.Did you catch my naked strategies for a $5,000 account segment?Check out my YouTube Series on Trade Management!
Normally with our trades, we enter for a credit and exit for a debit, or we enter for a debit and exit for a credit. But sometimes on the rare occasion, we can actually enter for a credit, and then exit the same position for another credit. How does this work? As we look at our current position in C, we break down exactly why this happens.Did you catch my naked strategies for a $5,000 account segment?Check out my YouTube Series on Trade Management!
Consecutive weekly losses for $SPX & $NDX but no real rise seen in the $VIX. TWTR adopts a poison pill to slow down Elon's advances. Corn, soybeans and even wheat are on the rise once again which are sure to affect grocery store trips.Tune into Engineering the Trade.
Consecutive weekly losses for $SPX & $NDX but no real rise seen in the $VIX. TWTR adopts a poison pill to slow down Elon's advances. Corn, soybeans and even wheat are on the rise once again which are sure to affect grocery store trips.Tune into Engineering the Trade.
Natural Gas is trading at 14-year highs so the futures dues ponder which option trade best suits the current environment. Also, crude oil seems to be retracing its upward move after a couple of weeks of middling trading. To start the week, as always, Pete and Jermal walk you through the futures to watch and talk about some sample trades.
Natural Gas is trading at 14-year highs so the futures dues ponder which option trade best suits the current environment. Also, crude oil seems to be retracing its upward move after a couple of weeks of middling trading. To start the week, as always, Pete and Jermal walk you through the futures to watch and talk about some sample trades.
Trends can occur in any market, but commodities and currencies tend to trend one way or the other more than stocks and bonds. Take, for example, the recent price action in USD: Small US Dollar (SFX) futures have closed higher 10 of the last 11 days, and they had a 9-day streak of up days at one point. Futures dudes Mike and Frank talk about their gut reaction to such trends before applying historical data to their next move in the SFX futures market.Get some probabilities on historical trends, and see how experienced traders capitalize on them in the market.
Trends can occur in any market, but commodities and currencies tend to trend one way or the other more than stocks and bonds. Take, for example, the recent price action in USD: Small US Dollar (SFX) futures have closed higher 10 of the last 11 days, and they had a 9-day streak of up days at one point. Futures dudes Mike and Frank talk about their gut reaction to such trends before applying historical data to their next move in the SFX futures market.Get some probabilities on historical trends, and see how experienced traders capitalize on them in the market.
When it comes to delta, gamma, theta, and vega there is a lot to learn. One thing to keep in mind is that all of these textbook definitions assume the market is in a vacuum and nothing else is moving, which just isn't the case practically speaking.
Learn more about how these greeks hedge each other on one hand, but synergize with each other on the other!
When it comes to delta, gamma, theta, and vega there is a lot to learn. One thing to keep in mind is that all of these textbook definitions assume the market is in a vacuum and nothing else is moving, which just isn't the case practically speaking.
Learn more about how these greeks hedge each other on one hand, but synergize with each other on the other!
Cooler Screens is a developer of interactive digital displays to replace glass doors in retail stores. They bring the power of digital advertising to the brick-and-mortar retailer. They make available in-store what consumers like about shopping online. Arsen Avakian is the Founder and CEO. Prior to Cooler Screens, he founded Argo Tea in 2003 and had a successful exit to Golden Fleece Beverages in 2020.
Learn More about Cooler Screens
Cooler Screens is a developer of interactive digital displays to replace glass doors in retail stores. They bring the power of digital advertising to the brick-and-mortar retailer. They make available in-store what consumers like about shopping online. Arsen Avakian is the Founder and CEO. Prior to Cooler Screens, he founded Argo Tea in 2003 and had a successful exit to Golden Fleece Beverages in 2020.
Learn More about Cooler Screens
Some of the hosts at tasty tend to trade delta neutral strategies, relying on theta decay and implied volatility overstatement as the driving force behind profits rather than directionality.For example, they may put on a 16 delta strangle, which is delta neutral at entry. However, throughout the life of the trade, the overall delta for that position will inevitably change. How much can we expect delta to change and what can we do to manage these changes?Join Tom and Tony to find out!
Some of the hosts at tasty tend to trade delta neutral strategies, relying on theta decay and implied volatility overstatement as the driving force behind profits rather than directionality.For example, they may put on a 16 delta strangle, which is delta neutral at entry. However, throughout the life of the trade, the overall delta for that position will inevitably change. How much can we expect delta to change and what can we do to manage these changes?Join Tom and Tony to find out!
Anyone who has traded the markets for more than a month knows that both big up moves and big down moves happen, but it is the big down moves that always have the greater potential for super, high velocity moves. In looking at the role that the counterparty plays in order flow, just as we did with Gamestop last year, we learn that it is their hedging of directional risk that can often lead to extending these big moves. And when we compare the psychological differences between a rising market and falling market, it seems plausible that this hedging mechanism could heat up more to the downside than to the upside.Did you catch our show last week on how to determine Delta/Theta levels for your portfolio?
Anyone who has traded the markets for more than a month knows that both big up moves and big down moves happen, but it is the big down moves that always have the greater potential for super, high velocity moves. In looking at the role that the counterparty plays in order flow, just as we did with Gamestop last year, we learn that it is their hedging of directional risk that can often lead to extending these big moves. And when we compare the psychological differences between a rising market and falling market, it seems plausible that this hedging mechanism could heat up more to the downside than to the upside.Did you catch our show last week on how to determine Delta/Theta levels for your portfolio?
Calculating the IV adjusted notional value of an underlying is an easy way to compare that underlying’s risk to another. The comparison is independent and forward-looking, meaning that it looks at the current exposure of one underlying and the current exposure of another. The comparison should not be used to correlate outcomes: “if ABC has an outlier move, then XYZ will have even a bigger outlier move” is not the correct usage.
Calculating the IV adjusted notional value of an underlying is an easy way to compare that underlying’s risk to another. The comparison is independent and forward-looking, meaning that it looks at the current exposure of one underlying and the current exposure of another. The comparison should not be used to correlate outcomes: “if ABC has an outlier move, then XYZ will have even a bigger outlier move” is not the correct usage.
Elon's all cash bid to take $TWTR private actually seems like the right move if the company wants to get the most out of their product. The 10-year yield rises to 2.80% and reminds tech stocks why the two do not get along. While the U.S. dollar has been partying for weeks, the Euro has fallen on hard times as the currency dropped to a 23-month low.Watch as Jermal discusses these market moving topics on Engineering the Trade.
As premium sellers, we usually take advantage of the positive theta that exists in the market. But there are still times within our strategies that we will include long premium components that carry negative theta. Here are a couple ways that we’re able to mitigate the effects of negative theta, and at times, even overpower it with positive theta.Did you catch my naked strategies for a $5,000 account segment? Check out my YouTube Series on Trade Management!
The co-founder of the political prediction market site PredictIt, John Phillips, joins The Prediction Trade for an exclusive interview ahead of the 2022 midterm election season. Phillips shares what technological improvements PredictIt has made, what to watch out for on the midterm campaign trail, and what he makes of Sarah Palin’s race for Alaska’s House seat.
The co-founder of the political prediction market site PredictIt, John Phillips, joins The Prediction Trade for an exclusive interview ahead of the 2022 midterm election season. Phillips shares what technological improvements PredictIt has made, what to watch out for on the midterm campaign trail, and what he makes of Sarah Palin’s race for Alaska’s House seat.
Pete and James give a run down of what's happening in the market as we head into the long Easter weekend. They take a look at each of the four major indices and what sectors make have the largest weights in each. Then they analyze the main stocks in each index and highlight that the Russell 2000 provides the largest diversification by way of limited exposure to any single stock.
Pete and James give a run down of what's happening in the market as we head into the long Easter weekend. They take a look at each of the four major indices and what sectors make have the largest weights in each. Then they analyze the main stocks in each index and highlight that the Russell 2000 provides the largest diversification by way of limited exposure to any single stock.
The probability of a market trending in one direction or the other is simply 0.5^(# of days), so you can see how likely it might be that stocks or any asset continues higher or lower for a consecutive amount of days. On the heels of a 9-day run higher in Small US Dollar futures, Errol and Frank show you how likely this move was. Then, the two traders talk about how they might trade the market now given this information. Learn all about probabilistic modeling and the memorylessness property on today's Small Stakes.
The probability of a market trending in one direction or the other is simply 0.5^(# of days), so you can see how likely it might be that stocks or any asset continues higher or lower for a consecutive amount of days. On the heels of a 9-day run higher in Small US Dollar futures, Errol and Frank show you how likely this move was. Then, the two traders talk about how they might trade the market now given this information. Learn all about probabilistic modeling and the memorylessness property on today's Small Stakes.
The tastytrade crew shares their options trade ideas for the day! Mike buys a call diagonal spread in MARA
Nick buys a put diagonal spread in TWTR
Katie buys the /SCCX small exchange crypto contract
Tune in to learn more and a live Q&A as well!
The tastytrade crew shares their options trade ideas for the day! Mike buys a call diagonal spread in MARA
Nick buys a put diagonal spread in TWTR
Katie buys the /SCCX small exchange crypto contract
Tune in to learn more and a live Q&A as well!
It's expiration week, so Liz and Jenny roll the small exchange futures from J to K. They also close the GDX strangle and look for more profit potential in the small precious metals future. They place a big lizard in /SPRE and will look to close it for 20% profit.
It's expiration week, so Liz and Jenny roll the small exchange futures from J to K. They also close the GDX strangle and look for more profit potential in the small precious metals future. They place a big lizard in /SPRE and will look to close it for 20% profit.
At tasty, we generally recommend allocating between 25% and 50% of a portfolio’s buying power to short premium strategies, with the percent varying depending on the current value of VIX.This year, for example, VIX has remained above 15, so if we follow the allocation guidelines, we would have always allocated 30% of our portfolio.In an average year, how often can we expect VIX to be in a given range, and how much can we expect to allocate throughout the year?Join Tom and Tony to find out!
At tasty, we generally recommend allocating between 25% and 50% of a portfolio’s buying power to short premium strategies, with the percent varying depending on the current value of VIX.This year, for example, VIX has remained above 15, so if we follow the allocation guidelines, we would have always allocated 30% of our portfolio.In an average year, how often can we expect VIX to be in a given range, and how much can we expect to allocate throughout the year?Join Tom and Tony to find out!
Earnings season has arrived! JP Morgan and Delta Airlines both give clues on what we can expect from their respective sectors. Two-year yields have been on the decline as their losses extend to 20 bps in the session. Finally, China’s monetary policy going opposite of everyone else so clearly inflation is not an issue in the Far East.All that and more on Engineering the Trade!
Earnings season has arrived! JP Morgan and Delta Airlines both give clues on what we can expect from their respective sectors. Two-year yields have been on the decline as their losses extend to 20 bps in the session. Finally, China’s monetary policy going opposite of everyone else so clearly inflation is not an issue in the Far East.All that and more on Engineering the Trade!
We live in a world that’s relies on trust to continue to create positive opportunities for others.
The risk/reward methodology. Risk almost always leads to success—eventually.
On this week’s episode, Tom and Dylan discuss this delicate balancing act, especially when those that are successful don't move forward with integrity. Should there be a responsibility on behalf of others to create positive drift?
We live in a world that’s relies on trust to continue to create positive opportunities for others.
The risk/reward methodology. Risk almost always leads to success—eventually.
On this week’s episode, Tom and Dylan discuss this delicate balancing act, especially when those that are successful don't move forward with integrity. Should there be a responsibility on behalf of others to create positive drift?
With options launching this week on the micro Bitcoin and Ethereum futures contracts, traders will now be able to add whole new layers of strategy around crypto trading. This includes speculation, but also potentially premium selling and cost basis reduction. Join Pete and Jermal as they look at these new products.
With options launching this week on the micro Bitcoin and Ethereum futures contracts, traders will now be able to add whole new layers of strategy around crypto trading. This includes speculation, but also potentially premium selling and cost basis reduction. Join Pete and Jermal as they look at these new products.
Hedging is a risk management tool that allows investors to keep their long-term position while taking off part of their exposure in the short term. Futures become prime candidates for committing hedge positions given their low cost and ease of use. Today's example looks at a long 1 BTC position while using short Micro Bitcoin futures to hedge 10% of the investment at a time given their 0.1 BTC exposure. Finally, Katie and Frank look at opening a new long crypto position using Small Cryptocurrency futures that's hedged from the start with short BLOK call options. This can create a hedged crypto position that's even smaller than 0.1 BTC.
Hedging is a risk management tool that allows investors to keep their long-term position while taking off part of their exposure in the short term. Futures become prime candidates for committing hedge positions given their low cost and ease of use. Today's example looks at a long 1 BTC position while using short Micro Bitcoin futures to hedge 10% of the investment at a time given their 0.1 BTC exposure. Finally, Katie and Frank look at opening a new long crypto position using Small Cryptocurrency futures that's hedged from the start with short BLOK call options. This can create a hedged crypto position that's even smaller than 0.1 BTC.
Rolling a short option or spread out in time for a credit reduces max loss and increases max profit, but there are specific scenarios where we may lean towards holding our positions closer to expiration.
Learn the tradeoffs for both defined and undefined risk trades today on OTC Live!
Rolling a short option or spread out in time for a credit reduces max loss and increases max profit, but there are specific scenarios where we may lean towards holding our positions closer to expiration.
Learn the tradeoffs for both defined and undefined risk trades today on OTC Live!
The efficient market hypothesis (EMH) underlies nearly all of financial mathematics. In a formal setting, it described market assets as technical objects known as martingales. Stopping times are another concept from probability theory that prove useful when working with martingales. Today, Jacob joins Tom and Tony to shed some light on these ideas and talk about how keeping them in mind can help us to stay disciplined and mechanical in our trading.
The efficient market hypothesis (EMH) underlies nearly all of financial mathematics. In a formal setting, it described market assets as technical objects known as martingales. Stopping times are another concept from probability theory that prove useful when working with martingales. Today, Jacob joins Tom and Tony to shed some light on these ideas and talk about how keeping them in mind can help us to stay disciplined and mechanical in our trading.
Liz and Jenny take a look at 10 viewer assumptions and place high probability trades. They look at everything from naked puts to lizards and ZEBRAs (Zero Extrinsic Back Ratio).
Liz and Jenny take a look at 10 viewer assumptions and place high probability trades. They look at everything from naked puts to lizards and ZEBRAs (Zero Extrinsic Back Ratio).
Profiting in a sideways market isn’t possible using long or short price strategies alone, but trading options offer clear opportunities in this area via short premium. When trading short premium strategies, there is the potential to profit from not only the price movement of the underlying, but also the change in implied volatility and time decay.
Profiting in a sideways market isn’t possible using long or short price strategies alone, but trading options offer clear opportunities in this area via short premium. When trading short premium strategies, there is the potential to profit from not only the price movement of the underlying, but also the change in implied volatility and time decay.
Digital assets today are primarily cryptocurrencies, stablecoins, and NFTs, but in the future, they may also include real estate and even equities.
Digital assets offer peer to peer financial services, such as borrowing and lending, without the need for an intermediary.
This puts the control into the hands of the user, and with full transparency of transactions on the blockchain, can lead to a fully decentralized financial system.
Digital assets today are primarily cryptocurrencies, stablecoins, and NFTs, but in the future, they may also include real estate and even equities.
Digital assets offer peer to peer financial services, such as borrowing and lending, without the need for an intermediary.
This puts the control into the hands of the user, and with full transparency of transactions on the blockchain, can lead to a fully decentralized financial system.
The Consumer Price Index appears to be moderating but remains near 40yr highs. This is yet another metric that shows rate increases from the Fed are on the way. Carmax (KMX) misses estimates on slowing sales, which coincided with the lack of demand for used cars. Finally, in peculiar news, Natural gas is trading at 13-year high and winter has already passed.All that and more on Engineering the Trade!
The Consumer Price Index appears to be moderating but remains near 40yr highs. This is yet another metric that shows rate increases from the Fed are on the way. Carmax (KMX) misses estimates on slowing sales, which coincided with the lack of demand for used cars. Finally, in peculiar news, Natural gas is trading at 13-year high and winter has already passed.All that and more on Engineering the Trade!
As you trade more and gain experience, your market awareness will naturally improve. This will allow you to better take advantage of the different metrics we analyze at trade entry. Specifically, looking for higher implied volatility opportunities to sell premium and making sure you collect a big enough credit on your trades to justify the risk-return dynamics are two examples of how a deeper level of market awareness can benefit you.Did you catch my naked strategies for a $5,000 account segment?Check out my YouTube Series on Trade Management!
As you trade more and gain experience, your market awareness will naturally improve. This will allow you to better take advantage of the different metrics we analyze at trade entry. Specifically, looking for higher implied volatility opportunities to sell premium and making sure you collect a big enough credit on your trades to justify the risk-return dynamics are two examples of how a deeper level of market awareness can benefit you.Did you catch my naked strategies for a $5,000 account segment?Check out my YouTube Series on Trade Management!
Bitcoin has shown great mean reverting qualities in the last year of trading, and our futures dudes look into how they can best capitalize on buying the potential bounce in this down market. They incorporate price action, product size, and buying power when compering the major cryptocurrency futures, and they decide on a buy order in Small Cryptocurrency (SCCX). Get the mechanics on this new cryptocurrency futures strategy from our experienced traders.
Bitcoin has shown great mean reverting qualities in the last year of trading, and our futures dudes look into how they can best capitalize on buying the potential bounce in this down market. They incorporate price action, product size, and buying power when compering the major cryptocurrency futures, and they decide on a buy order in Small Cryptocurrency (SCCX). Get the mechanics on this new cryptocurrency futures strategy from our experienced traders.
When it comes to defined risk options trading defense, rolling the spread out in time before it goes OTM is most important. Tune in to learn more, with a live Q&A as well!
When it comes to defined risk options trading defense, rolling the spread out in time before it goes OTM is most important. Tune in to learn more, with a live Q&A as well!
Anton brings up the idea of engagement trades. Liz and Jenny talk about calendars and butterflies. They are low probability trades, but bring a low risk level of engagement. Liz and Jenny love the zebra strategy, too. Even though the POP is 50%, it's a lower risk trade to make a directional play.
Anton brings up the idea of engagement trades. Liz and Jenny talk about calendars and butterflies. They are low probability trades, but bring a low risk level of engagement. Liz and Jenny love the zebra strategy, too. Even though the POP is 50%, it's a lower risk trade to make a directional play.
Core positions will be the ones that are responsive for most of the P/L of a portfolio over long periods of time. These are the positions where we focus on short theta, short IV, high POP, and defined profit.Engagement trades may not necessarily help or hurt a portfolio over time, so they should be done with extra small size since statistically. The value in engagement trades lies in the market awareness that builds a foundation to understand trading better.
Core positions will be the ones that are responsive for most of the P/L of a portfolio over long periods of time. These are the positions where we focus on short theta, short IV, high POP, and defined profit.Engagement trades may not necessarily help or hurt a portfolio over time, so they should be done with extra small size since statistically. The value in engagement trades lies in the market awareness that builds a foundation to understand trading better.
IVR is a central metric to tasty mechanics. When IVR is high, premium sellers have large profit potentials and, if it falls back down, can they profit regardless of the direction of the market. Today, Tom and Tony look at the data to see how long IVR tends to stay high or low for and how long it takes to make the transition between the two.
IVR is a central metric to tasty mechanics. When IVR is high, premium sellers have large profit potentials and, if it falls back down, can they profit regardless of the direction of the market. Today, Tom and Tony look at the data to see how long IVR tends to stay high or low for and how long it takes to make the transition between the two.
On today's episode of Hear Me Out, Victor joins Tom and Tony to discuss the recent unpleasantness in the markets. The S&P 500 was down 80 points, and the bond market is down while interest rates are getting higher and higher. What are the real risks in the market here? Is it:
- Geopolitical risk. When the Putins of the world create more chaos
- A combination of inflation or interest rate risk
- The shaky faith in current equities prices. Will institutions, money managers, and investors who continue to take losses start to sell assets? They have lost bond returns for years now. Are we on the verge of a big selloff? And if that happens, then what?
Victor, Tom, and Tony tackle these issues and more.
On today's episode of Hear Me Out, Victor joins Tom and Tony to discuss the recent unpleasantness in the markets. The S&P 500 was down 80 points, and the bond market is down while interest rates are getting higher and higher. What are the real risks in the market here? Is it:
- Geopolitical risk. When the Putins of the world create more chaos
- A combination of inflation or interest rate risk
- The shaky faith in current equities prices. Will institutions, money managers, and investors who continue to take losses start to sell assets? They have lost bond returns for years now. Are we on the verge of a big selloff? And if that happens, then what?
Victor, Tom, and Tony tackle these issues and more.
As the 10-year yield climbs through 2.75%, we see tech stocks beginning to falter once again. In the wake of Shanghai’s Covid-19 lockdown crude oil shows weakness on concerns about demand from the world’s biggest crude importer. Sanctions against Russia are mounting up as Russian railways ruled in default. How much longer can a nation thrive like this?Watch Engineering the Trade as Jermal gives you the rundown on the most interesting topics affecting today's trading action.
As the 10-year yield climbs through 2.75%, we see tech stocks beginning to falter once again. In the wake of Shanghai’s Covid-19 lockdown crude oil shows weakness on concerns about demand from the world’s biggest crude importer. Sanctions against Russia are mounting up as Russian railways ruled in default. How much longer can a nation thrive like this?Watch Engineering the Trade as Jermal gives you the rundown on the most interesting topics affecting today's trading action.
When you have a Broken-Wing Butterfly (or even Ratio Spread) that has moved in your favor a good bit, it quickly makes the most sense to cash in the profits and close the position. This is simply because the risk:return dynamics of the trade no longer favor holding it much longer, given the move that has been made. With our Call BWB in SPY, we see this exact thing today.Did you catch my naked strategies for a $5,000 account segment?Check out my YouTube Series on Trade Management!
When you have a Broken-Wing Butterfly (or even Ratio Spread) that has moved in your favor a good bit, it quickly makes the most sense to cash in the profits and close the position. This is simply because the risk:return dynamics of the trade no longer favor holding it much longer, given the move that has been made. With our Call BWB in SPY, we see this exact thing today.Did you catch my naked strategies for a $5,000 account segment?Check out my YouTube Series on Trade Management!
Historically, yield curve inversions have been followed by stock market crashes and large declines in short-term interest rates. But are three data points in the last 22 years enough to confirm a trend? Our experienced derivatives dudes talk about how they might set up stock and bond trades in the aftermath of this most recent inversion. They talk about how their reluctance to go all-in might inform smaller position sizing.
Historically, yield curve inversions have been followed by stock market crashes and large declines in short-term interest rates. But are three data points in the last 22 years enough to confirm a trend? Our experienced derivatives dudes talk about how they might set up stock and bond trades in the aftermath of this most recent inversion. They talk about how their reluctance to go all-in might inform smaller position sizing.
When trading undefined risk options strategies, we focus on trading high IV products so that we maximize our extrinsic value collected against our risk. When doing this, we have ultimate flexibility when rolling out in time and adjusting our strikes to reflect the new delta exposure we want to achieve.
Tune in to learn more with a live Q&A as well!
When trading undefined risk options strategies, we focus on trading high IV products so that we maximize our extrinsic value collected against our risk. When doing this, we have ultimate flexibility when rolling out in time and adjusting our strikes to reflect the new delta exposure we want to achieve.
Tune in to learn more with a live Q&A as well!
Immerse is the leading virtual reality language learning platform in the metaverse. Its mission is to transform how English is taught and learned using virtual reality. They are a team of linguists and virtual reality engineers building the first VR experience that connects students and teachers in virtual places. A student can learn French while walking with a tutor along the Champs-Elysees.Quinn Taber is the Co-founder and CEO. He fluently speaks several different languages.
Immerse is the leading virtual reality language learning platform in the metaverse. Its mission is to transform how English is taught and learned using virtual reality. They are a team of linguists and virtual reality engineers building the first VR experience that connects students and teachers in virtual places. A student can learn French while walking with a tutor along the Champs-Elysees.Quinn Taber is the Co-founder and CEO. He fluently speaks several different languages.
The probability of touch (POT) is the probability that at some point before expiration, the underlying price will reach the strike of the option. POT is calculated by multiplying the delta by two, so if you have a 10 delta put, the POT = 10 * 2 = 20%.Previously, we looked at the impact that early management had on probability of touch (POT), finding that when managing 16∆ options at 21 DTE, the POT was roughly equal to ½ the delta. But that was a small sample, simply looking at 16∆ calls and puts. What if we expanded the study?When managing early, can we estimate POT to be equal to ½ of delta? Or is there a different calculation that can apply broadly to all deltas?
The probability of touch (POT) is the probability that at some point before expiration, the underlying price will reach the strike of the option. POT is calculated by multiplying the delta by two, so if you have a 10 delta put, the POT = 10 * 2 = 20%.Previously, we looked at the impact that early management had on probability of touch (POT), finding that when managing 16∆ options at 21 DTE, the POT was roughly equal to ½ the delta. But that was a small sample, simply looking at 16∆ calls and puts. What if we expanded the study?When managing early, can we estimate POT to be equal to ½ of delta? Or is there a different calculation that can apply broadly to all deltas?
In the world of active trading, you will undoubtedly come across the term “alpha” sooner or later, as alpha effectively measures any risk-adjusted, excess return you are able to generate. But interestingly enough, alpha itself is actually from statistics - with its roots being the y-intercept term in a regressionary framework. And as we look at two of the most famous financial models ever created, we see that the alpha in both of these models is quite significant.Did you catch our show last week on how to determine Delta/Theta levels for your portfolio?
In the world of active trading, you will undoubtedly come across the term “alpha” sooner or later, as alpha effectively measures any risk-adjusted, excess return you are able to generate. But interestingly enough, alpha itself is actually from statistics - with its roots being the y-intercept term in a regressionary framework. And as we look at two of the most famous financial models ever created, we see that the alpha in both of these models is quite significant.Did you catch our show last week on how to determine Delta/Theta levels for your portfolio?
Economic reports often make headlines, but they rarely factor into our trading decisions. This is because most reports are backwards looking and they lack statistical usefulness for a 45 day timeframe.Some of the bigger reports are worth taking note of as they can provide additional insight into current dynamics. Join Tom and Tony today as they look into what you need to know.
Economic reports often make headlines, but they rarely factor into our trading decisions. This is because most reports are backwards looking and they lack statistical usefulness for a 45 day timeframe.Some of the bigger reports are worth taking note of as they can provide additional insight into current dynamics. Join Tom and Tony today as they look into what you need to know.
Today, as our Core Strategies Series moves on, we continue our discussion on Ratio Spreads. Specifically, we discuss the relationship between Put Ratio Spreads and Naked Puts, whether or not we consider Call Ratio Spreads, and how the strategy changes with different imbalances inside of the strategy.
Today, as our Core Strategies Series moves on, we continue our discussion on Ratio Spreads. Specifically, we discuss the relationship between Put Ratio Spreads and Naked Puts, whether or not we consider Call Ratio Spreads, and how the strategy changes with different imbalances inside of the strategy.
On this episode of Engineering the Trade, Jermal Chandler is joined by Julia Spina from the tastytrade research team. They talk about implied volatility (IV) and its uses as a trading indicator. They make the distinction between implied volatility rank (IVR) and implied volatility percentile (IVP), which are both offshoots of IV. Finally, they profile Julia's book, The Unlucky Investors Guide to Options Trading.
On this episode of Engineering the Trade, Jermal Chandler is joined by Julia Spina from the tastytrade research team. They talk about implied volatility (IV) and its uses as a trading indicator. They make the distinction between implied volatility rank (IVR) and implied volatility percentile (IVP), which are both offshoots of IV. Finally, they profile Julia's book, The Unlucky Investors Guide to Options Trading.
As out-of-the-money premium sellers, we usually analyze extrinsic value on trade entry, but it’s much less common for us to pay close attention to extrinsic value (or the changes to extrinsic value) over the life of the trade. Doing this, however, can yield extremely valuable insights into what controls option pricing, which in turn, directly impacts your position’s profit/loss.
Did you catch my naked strategies for a $5,000 account segment?
Check out my YouTube Series on Trade Management!
As out-of-the-money premium sellers, we usually analyze extrinsic value on trade entry, but it’s much less common for us to pay close attention to extrinsic value (or the changes to extrinsic value) over the life of the trade. Doing this, however, can yield extremely valuable insights into what controls option pricing, which in turn, directly impacts your position’s profit/loss.
Did you catch my naked strategies for a $5,000 account segment?
Check out my YouTube Series on Trade Management!
风险定义的策略比如说铁鹰组合，其实是非常灵活多变的。我们可以手动改变我们想要的行权价来改变铁鹰“翅膀”的宽度。那么改变翅膀宽度对我们的策略和交易会有什么影响呢？这期节目我们就来比较一些铁鹰组合翅膀窄和宽的区别。
Risk-defined strategies such as Iron Condor can be very flexible. Traders can change the characteristics of the Iron Condors by manually selecting different strikes to change the distances between the long and short strikes, which is also called “the Wings” of the Iron Condors. So why understanding the width of the wings is essential? And how does that impact our positions? Let’s see how our trader and show host Kai explain it.
When aiming to gain exposure to a particular underlying, the limiting factor is the buying power requirement of the trade. Expensive underlying's are tradable with virtually any account size, but the appropriate strategy is going to depend on the total buying power of a portfolio. Join Tom and Tony as they compare the BPR requirements for different types of neutral strategies.
When aiming to gain exposure to a particular underlying, the limiting factor is the buying power requirement of the trade. Expensive underlying's are tradable with virtually any account size, but the appropriate strategy is going to depend on the total buying power of a portfolio. Join Tom and Tony as they compare the BPR requirements for different types of neutral strategies.
Between jobs report (4/1) and jobless claims (4/7), the Fed has all the ammo it needs for rate hikes. The U.S. Dollar hit the highest level in two years on forward looking tight monetary policy. The 2- and 10-year inverts and then reverts in less than a week's time. TWTR moved big this week on news Elon Musk became a passive investor and joined the board of directors. Holy smokes: Natural gas is up nearly 40% in three weeks.All of this and more on This Week in Stocks.
Between jobs report (4/1) and jobless claims (4/7), the Fed has all the ammo it needs for rate hikes. The U.S. Dollar hit the highest level in two years on forward looking tight monetary policy. The 2- and 10-year inverts and then reverts in less than a week's time. TWTR moved big this week on news Elon Musk became a passive investor and joined the board of directors. Holy smokes: Natural gas is up nearly 40% in three weeks.All of this and more on This Week in Stocks.
Tony joins Errol and Kayla to put on a broken wing butterfly in an underlying with call skew! Tony breaks down which strikes you should select when executing this strategy, and how to look for call skew. Due to $COST being at all time highs the team looks for a potential broken wing butterfly trade.
Tony joins Errol and Kayla to put on a broken wing butterfly in an underlying with call skew! Tony breaks down which strikes you should select when executing this strategy, and how to look for call skew. Due to $COST being at all time highs the team looks for a potential broken wing butterfly trade.
Initial jobless claims: lowest number of filings since 1968. Market now sees 2.50% worth of rate hikes in ‘22. Russia slips closer to technical default on debt.All that and more on today's Engineering the Trade
Initial jobless claims: lowest number of filings since 1968. Market now sees 2.50% worth of rate hikes in ‘22. Russia slips closer to technical default on debt.All that and more on today's Engineering the Trade
For many traders, stepping up to futures products from ETFs may be a tremendous opportunity. Right now, the crude oil ETF, USO, requires the full cash value to trade it, meaning traders get zero leverage. Pete and James break down the crude oil futures and micro-futures contracts and how they my provide opportunity in this volatile time for the energy markets.
For many traders, stepping up to futures products from ETFs may be a tremendous opportunity. Right now, the crude oil ETF, USO, requires the full cash value to trade it, meaning traders get zero leverage. Pete and James break down the crude oil futures and micro-futures contracts and how they my provide opportunity in this volatile time for the energy markets.
You can buy the stock market almost any day of the year, which can make deciding on what day to choose seem daunting. Errol helps Frank assign probabilities to the different scenarios you might find yourself in when looking to buy stocks, and they formulate a plan for entering and scaling into a stock position. Is it better to buy stocks after a down day? Or wait for a large percentage move lower? Get the stats from our futures dudes.
You can buy the stock market almost any day of the year, which can make deciding on what day to choose seem daunting. Errol helps Frank assign probabilities to the different scenarios you might find yourself in when looking to buy stocks, and they formulate a plan for entering and scaling into a stock position. Is it better to buy stocks after a down day? Or wait for a large percentage move lower? Get the stats from our futures dudes.
The tastytrade crew shares their trade ideas for the day! Mike sells a put in UBER
Nick sells a call ratio and short put in SNAP
Katie buys a call spread in MU
Tune in to learn more and a live Q&A as well!
The tastytrade crew shares their trade ideas for the day! Mike sells a put in UBER
Nick sells a call ratio and short put in SNAP
Katie buys a call spread in MU
Tune in to learn more and a live Q&A as well!
Everyone is happy about the addition of /SFX options. Liz and Jenny have a short /SFX future. Now they are able to improve the basis of the positions with options. They sell a skewed strangle against the short future.
Everyone is happy about the addition of /SFX options. Liz and Jenny have a short /SFX future. Now they are able to improve the basis of the positions with options. They sell a skewed strangle against the short future.
Prediction market super-trader Scott Supak joins The Prediction Trade to offer a crash course on maximizing profits in PredictIt’s and Kalshi’s presidential approval rating markets, as well as his tactics for forecasting and trading the COVID-19 markets. The show wraps up with win total over/under predictions for the upcoming Major League Baseball season.
Prediction market super-trader Scott Supak joins The Prediction Trade to offer a crash course on maximizing profits in PredictIt’s and Kalshi’s presidential approval rating markets, as well as his tactics for forecasting and trading the COVID-19 markets. The show wraps up with win total over/under predictions for the upcoming Major League Baseball season.
In the second half of March, we saw the major market indices move up +10% in just two weeks. Many of the most traded stocks that powered this move were up 20% or more.When we see such strong moves in a short period of time, what comes next? Does the market continue its rally, or does it give back some of its gains?Join Tom and Tony to find out!
In the second half of March, we saw the major market indices move up +10% in just two weeks. Many of the most traded stocks that powered this move were up 20% or more.When we see such strong moves in a short period of time, what comes next? Does the market continue its rally, or does it give back some of its gains?Join Tom and Tony to find out!
Trading options on equity indexes has many avenues that are all liquid. The only tangible difference to traders between the products is the notional size of the product and the buying power reduction of the position.
Trading options on equity indexes has many avenues that are all liquid. The only tangible difference to traders between the products is the notional size of the product and the buying power reduction of the position.
Today Errol and Kayla trade a setup in IWN. They consider doing a skewed iron condor or put spread strategy.
Today Errol and Kayla trade a setup in IWN. They consider doing a skewed iron condor or put spread strategy.
The Fed minutes show that the committee will commence a balance sheet run-off of $95B/mo (~1T per year). The U.S. Dollar hits highest level in two years as monetary policy is clearly tightening. Don't look now: the 30-yr mortgage rate hits 5% and it's up 100 bps in a month.
The Fed minutes show that the committee will commence a balance sheet run-off of $95B/mo (~1T per year). The U.S. Dollar hits highest level in two years as monetary policy is clearly tightening. Don't look now: the 30-yr mortgage rate hits 5% and it's up 100 bps in a month.
What is the value of fundamental analysis? There was a time when domain expertise and an understanding of industries mattered. But as markets have evolved and become both more liquid and efficient, that domain expertise has lost value. In fact, if you side with Tom, you believe fundamental analysis only exists to protect against litigation. Is he right? Tune in and hear why Dylan pushes back on that idea.
What is the value of fundamental analysis? There was a time when domain expertise and an understanding of industries mattered. But as markets have evolved and become both more liquid and efficient, that domain expertise has lost value. In fact, if you side with Tom, you believe fundamental analysis only exists to protect against litigation. Is he right? Tune in and hear why Dylan pushes back on that idea.
Two crops dominate U.S. farming: corn and soybeans. Corn and soy are both up 22% this year, the result of booming global demand and limited supplies exacerbated by the European conflict. Wheat, the third biggest U.S. crop, is up even more: 31%.Join Jermal and Pete on Splash Into Futures as this discuss trading grain futures volatility.
Two crops dominate U.S. farming: corn and soybeans. Corn and soy are both up 22% this year, the result of booming global demand and limited supplies exacerbated by the European conflict. Wheat, the third biggest U.S. crop, is up even more: 31%.Join Jermal and Pete on Splash Into Futures as this discuss trading grain futures volatility.
Taking profits can seem like an easy problem to solve for given that it only comes up when your strategy is winning, but your winning trade can turn into a loser if you don't plan for when to take profits. Katie talks about her experiences setting expectations on everything from Apple (AAPL) shares to Small Exchange futures. She and Frank come up with their Rule of Half, whereby they plan to take around 50% of the expected movement in a given stock, option, or futures trade in profits. See how these two experienced traders crunch the numbers on taking profits.
Taking profits can seem like an easy problem to solve for given that it only comes up when your strategy is winning, but your winning trade can turn into a loser if you don't plan for when to take profits. Katie talks about her experiences setting expectations on everything from Apple (AAPL) shares to Small Exchange futures. She and Frank come up with their Rule of Half, whereby they plan to take around 50% of the expected movement in a given stock, option, or futures trade in profits. See how these two experienced traders crunch the numbers on taking profits.
A call ratio spread allows you to push your breakeven well past your short call strike, but it also gives you a higher max profit to the upside than a short call. Adding a short put to the mix neutralizes the delta of the trade overall, and gives you the ability to make the call ratio even wider with the extra credit from the short put.
Tune in to learn more with a live Q&A as well!
A call ratio spread allows you to push your breakeven well past your short call strike, but it also gives you a higher max profit to the upside than a short call. Adding a short put to the mix neutralizes the delta of the trade overall, and gives you the ability to make the call ratio even wider with the extra credit from the short put.
Tune in to learn more with a live Q&A as well!
Delta and in-the-money percent (ITM%) are both useful statistics when considering an option looking both at near term exposure and long term chance of a strike break. But looking at them, they are always very close together. In fact, many people have been taught to use delta as ITM%. Today, Jacob joins Tom and Tony to untangle these two, explaining why they are similar and the little factor by which they differ.
Delta and in-the-money percent (ITM%) are both useful statistics when considering an option looking both at near term exposure and long term chance of a strike break. But looking at them, they are always very close together. In fact, many people have been taught to use delta as ITM%. Today, Jacob joins Tom and Tony to untangle these two, explaining why they are similar and the little factor by which they differ.
The tastytrade crew explores the tastyworks platform's new features and fields questions about it from the live chat!
The tastytrade crew explores the tastyworks platform's new features and fields questions about it from the live chat!
Errol went to NFT Miami this week and had the opportunity to learn from some of the best in the NFT and Web3 space, including Mark Cuban and Grant Cardone. These entrepreneurs shared the potential of Play-to-Earn gaming, Metaverse education, and virtual real estate! Even publicly traded companies such as GameStop are trying to build this rapidly growing, speculative marketplace. Kayla and Errol discuss their experiences and opinions about the future of this market.
Errol went to NFT Miami this week and had the opportunity to learn from some of the best in the NFT and Web3 space, including Mark Cuban and Grant Cardone. These entrepreneurs shared the potential of Play-to-Earn gaming, Metaverse education, and virtual real estate! Even publicly traded companies such as GameStop are trying to build this rapidly growing, speculative marketplace. Kayla and Errol discuss their experiences and opinions about the future of this market.
Today Jermal joins Errol and Kayla to put on an interest rate product. Errol uses the small futures product to check out short-term interest rates. /S2Y takes up about $270 in buying power which is an excellent product for smaller accounts like the yutes.
Today Jermal joins Errol and Kayla to put on an interest rate product. Errol uses the small futures product to check out short-term interest rates. /S2Y takes up about $270 in buying power which is an excellent product for smaller accounts like the yutes.
At this point, it's no secret that inflation is high and the Fed is leading an all-out assault to tame it. The U.S. central bank ended asset purchases last month and raised interest rates a quarter percentage point. Next, they will reduce the balance sheet but will the markets take it all in stride?
At this point, it's no secret that inflation is high and the Fed is leading an all-out assault to tame it. The U.S. central bank ended asset purchases last month and raised interest rates a quarter percentage point. Next, they will reduce the balance sheet but will the markets take it all in stride?
In all of trading, especially at trade entry, there is one metric that is the most important: liquidity. With its ability to impact the bid-ask spread differential and overall competitiveness of the market, liquidity has such a wide-ranging effect that it cannot be ignored. Not to mention, with so many highly liquid alternatives available in the market, there isn’t really a great reason to ever intentionally choose an illiquid one.Did you catch my naked strategies for a $5,000 account segment?
In all of trading, especially at trade entry, there is one metric that is the most important: liquidity. With its ability to impact the bid-ask spread differential and overall competitiveness of the market, liquidity has such a wide-ranging effect that it cannot be ignored. Not to mention, with so many highly liquid alternatives available in the market, there isn’t really a great reason to ever intentionally choose an illiquid one.Did you catch my naked strategies for a $5,000 account segment?
Ratio spreads are option strategies that, for most everyday traders, incorporate more short options than long options. If positioned correctly, this can create a high probability position that profits a little if the market moves in your direction and potentially even more if the market stays put. Jermal talks about why you do this strategy for a credit and how he usually looks to make money off of it, and then Frank dives into the platform for a real-time example of the trade using Small US Dollar futures options.
Ratio spreads are option strategies that, for most everyday traders, incorporate more short options than long options. If positioned correctly, this can create a high probability position that profits a little if the market moves in your direction and potentially even more if the market stays put. Jermal talks about why you do this strategy for a credit and how he usually looks to make money off of it, and then Frank dives into the platform for a real-time example of the trade using Small US Dollar futures options.
Anton joins Liz and Jenny with a study on active vs. passive investing. They compare short spy strangle results to holding long stock during the 2008-2011 recession vs. the 2020 Covid market.
Anton joins Liz and Jenny with a study on active vs. passive investing. They compare short spy strangle results to holding long stock during the 2008-2011 recession vs. the 2020 Covid market.
When markets get volatile, there is virtually no similarity in performances between selling premium and being long on stock. Since the expansion and contraction of volatility is the most important factor that affects premium selling, our trade mechanics and management revolve around managing volatility risk with less focus on price direction. This is why the returns tend to be very different in years like 2008 and 2020.
When markets get volatile, there is virtually no similarity in performances between selling premium and being long on stock. Since the expansion and contraction of volatility is the most important factor that affects premium selling, our trade mechanics and management revolve around managing volatility risk with less focus on price direction. This is why the returns tend to be very different in years like 2008 and 2020.
With a tightening of capital, there has been a seismic shift in how startups raise money and succeed in the market's current environment. For example, Instacart took a 40 percent hit to its valuation from from $39 billion to $24 billion in late March to adapt to market conditions due to slower growth.
With a tightening of capital, there has been a seismic shift in how startups raise money and succeed in the market's current environment. For example, Instacart took a 40 percent hit to its valuation from from $39 billion to $24 billion in late March to adapt to market conditions due to slower growth.
While the first goal of a trader is to make money, the second goal is to do so consistently. Looking at the standard deviation of profit and loss gives us a useful metric on the unreliability of trading strategies. Tom and Tony take a look.
While the first goal of a trader is to make money, the second goal is to do so consistently. Looking at the standard deviation of profit and loss gives us a useful metric on the unreliability of trading strategies. Tom and Tony take a look.
Jermal and Kayla recap last weeks assignments. Kay fills Jermal in on the difference between "Consumer Defensive" and "Consumer Discretionary." They also go over the 20% pump in Twitter stock due to Elon Musk acquiring nearly 10% of the company and becoming a majority share holder.
Jermal and Kayla recap last weeks assignments. Kay fills Jermal in on the difference between "Consumer Defensive" and "Consumer Discretionary." They also go over the 20% pump in Twitter stock due to Elon Musk acquiring nearly 10% of the company and becoming a majority share holder.
$TWTR flies for Elon while $DWAC dies for Trump. March jobs report showed 431K vs. 490K expected which is more ammo for the Fed to hike rates. Geopolitics continues to be a wildcard as no one knows what to expect next.
Expected Move Iron Condors can be great strategies to play a neutral bias with defined-risk. But there will be times when you’ll want to add more of a directional bias to this basic structure, and make it bullish or bearish. Here’s how to take an Expected Move Iron Condor and make it more directional to one side.Did you catch my naked strategies for a $5,000 account segment?
After a big bounce into the end of the quarter, mini-Nasdaq futures have risen up to the 200-day moving average and the middle of this year's trading range. So Pete and Jermal eye-up a vol selling, neutral strategy in hopes of collecting some premium. They also take a look at crude oil futures options and 10-year note futures options.
After a big bounce into the end of the quarter, mini-Nasdaq futures have risen up to the 200-day moving average and the middle of this year's trading range. So Pete and Jermal eye-up a vol selling, neutral strategy in hopes of collecting some premium. They also take a look at crude oil futures options and 10-year note futures options.
Options on currencies traditionally hold lesser premiums and thus lower implied volatility, but that doesn't mean they lack opportunity. Mike Butler talks about using currencies to gain diversification relative to his stock trades. Frank then shows you how to deploy some relatively simple strategies in calls and puts. The guys conclude by setting up a neutral trade in the new Small US Dollar futures options that use capital efficiently, demanding less than $100 for a short strangle.
Options on currencies traditionally hold lesser premiums and thus lower implied volatility, but that doesn't mean they lack opportunity. Mike Butler talks about using currencies to gain diversification relative to his stock trades. Frank then shows you how to deploy some relatively simple strategies in calls and puts. The guys conclude by setting up a neutral trade in the new Small US Dollar futures options that use capital efficiently, demanding less than $100 for a short strangle.
Positive and negative correlations can be found when you weigh two products against each other, but we want to ensure these correlations are strong (over 0.5 or under -0.5).
Today the tastytrade crew takes a look at agriculture and emerging markets through the lens of a 3-month correlation matrix.
Tune in to learn more!
Positive and negative correlations can be found when you weigh two products against each other, but we want to ensure these correlations are strong (over 0.5 or under -0.5).
Today the tastytrade crew takes a look at agriculture and emerging markets through the lens of a 3-month correlation matrix.
Tune in to learn more!
John Cerasani is the Founder of Glencrest Global, which is an early-stage venture capital firm that looks for interesting investments with founders & entrepreneurs. Some of them include high-profile names, like Aaron Rodgers, Kevin Garnett, and Jaleel White, to name a few. Glencrest Global does not currently operate with Limited Partners. All investments are funded from a single source (Cerasani Family Office). This allows flexibility to adapt funding to a business without creating an artificial lifespan on investment or pressure to answer to a potentially conflicting LP base.
John Cerasani is the Founder of Glencrest Global, which is an early-stage venture capital firm that looks for interesting investments with founders & entrepreneurs. Some of them include high-profile names, like Aaron Rodgers, Kevin Garnett, and Jaleel White, to name a few. Glencrest Global does not currently operate with Limited Partners. All investments are funded from a single source (Cerasani Family Office). This allows flexibility to adapt funding to a business without creating an artificial lifespan on investment or pressure to answer to a potentially conflicting LP base.
The news of stock splits in the past two years sparked rallies as retail traders piled in. We’ve seen this in AMZN, GOOGL, and TSLA just this year.However, a split doesn’t affect a company’s business, and with fractional shares available at most brokers, why does this happen? It may be possible that retail investors perceive a lower stock price to be better “value,” causing a fund increase into that stock.Does an increase in stock splits coincide with market peaks? And after seeing stock splits, does the broad market perform better or worse than average?
The news of stock splits in the past two years sparked rallies as retail traders piled in. We’ve seen this in AMZN, GOOGL, and TSLA just this year.However, a split doesn’t affect a company’s business, and with fractional shares available at most brokers, why does this happen? It may be possible that retail investors perceive a lower stock price to be better “value,” causing a fund increase into that stock.Does an increase in stock splits coincide with market peaks? And after seeing stock splits, does the broad market perform better or worse than average?
As active option traders, we have some key advantages over the more traditional, passive approach to portfolio management, and perhaps the biggest advantage that we do possess is the fact that our portfolios are very much unconstrained. This essentially means that we can pinpoint exactly how much directional leverage and extrinsic value decay we want to carry on a daily basis. Today, we work through some concrete examples of both for you to consider with your own portfolio.And you did hear Tom reluctantly admit to our utility functions being quite concave in nature? Just like we talked about RIGHT HERE.
As active option traders, we have some key advantages over the more traditional, passive approach to portfolio management, and perhaps the biggest advantage that we do possess is the fact that our portfolios are very much unconstrained. This essentially means that we can pinpoint exactly how much directional leverage and extrinsic value decay we want to carry on a daily basis. Today, we work through some concrete examples of both for you to consider with your own portfolio.And you did hear Tom reluctantly admit to our utility functions being quite concave in nature? Just like we talked about RIGHT HERE.
We have many rules about the entry and exit of trade. Some depends on trader’s risk tolerances such as delta and BPR used. Some, however are rooted in mechanics. Join Tom and Tony today as they consider rules we have for entry and exit that are mechanically-driven.
We have many rules about the entry and exit of trade. Some depends on trader’s risk tolerances such as delta and BPR used. Some, however are rooted in mechanics. Join Tom and Tony today as they consider rules we have for entry and exit that are mechanically-driven.
There's no meaningful progress for Russia/Ukraine peace talks but the headlines keep pushing the market back and forth. Cannabis stocks stay hot ahead of panel hearings Wednesday and Friday that look to decriminalize Marijuana. Finally, two new volatility products, SVIX & UVIX, arrive on the scene.Tune in to Engineering the Trade to find out more!
There's no meaningful progress for Russia/Ukraine peace talks but the headlines keep pushing the market back and forth. Cannabis stocks stay hot ahead of panel hearings Wednesday and Friday that look to decriminalize Marijuana. Finally, two new volatility products, SVIX & UVIX, arrive on the scene.Tune in to Engineering the Trade to find out more!
There is a massive humanitarian crisis taking place in Ukraine. Talk of World War III is rampant. Yet equity markets, which initially sold off, are not far off all time highs. The ruble seems to have regained 50% of the value it initially lost. Geopolitically, it’s tough to think of a worse time in the last 30 years. If you just look at markets though, you’d have no idea anything was wrong anywhere. What’s the reason behind that and is it sustainable? Tom and Dylan discuss these topics and more on today's episode of Truth or Skepticism.
There is a massive humanitarian crisis taking place in Ukraine. Talk of World War III is rampant. Yet equity markets, which initially sold off, are not far off all time highs. The ruble seems to have regained 50% of the value it initially lost. Geopolitically, it’s tough to think of a worse time in the last 30 years. If you just look at markets though, you’d have no idea anything was wrong anywhere. What’s the reason behind that and is it sustainable? Tom and Dylan discuss these topics and more on today's episode of Truth or Skepticism.
Thinking about adding futures to your portfolio? There's certainly a case to be made for this action. One of futures’ primary advantages over stock trading is capital efficiency. Another huge advantage to futures is pure exposure to diverse markets.Watch Splash Into Futures as Pete and Jermal cover the ins and outs of adding futures to an equity portfolio.
Thinking about adding futures to your portfolio? There's certainly a case to be made for this action. One of futures’ primary advantages over stock trading is capital efficiency. Another huge advantage to futures is pure exposure to diverse markets.Watch Splash Into Futures as Pete and Jermal cover the ins and outs of adding futures to an equity portfolio.
Yield curve inversions occur when short-term interest rates surpass long-term ones. This is a rare state for the yield curve to reside in as it usually witnesses 10 year rates higher than 2 year rates and 30 year rates higher than the both of them. Katie speaks to her past experiences trading the 3-day yield curve inversion of 2019, and then she and Frank conclude with a practical way to use the last 20 years of interest rate data presented here to make a high probability trade using Small futures.
Yield curve inversions occur when short-term interest rates surpass long-term ones. This is a rare state for the yield curve to reside in as it usually witnesses 10 year rates higher than 2 year rates and 30 year rates higher than the both of them. Katie speaks to her past experiences trading the 3-day yield curve inversion of 2019, and then she and Frank conclude with a practical way to use the last 20 years of interest rate data presented here to make a high probability trade using Small futures.
Choosing a more long-term expiration for the long option in a diagonal spread can mean more extrinsic value retained on a move against you - these are more costly than a short-term long option though and are slower moving trades as well.
Learn more with a live Q&A session as well!
Choosing a more long-term expiration for the long option in a diagonal spread can mean more extrinsic value retained on a move against you - these are more costly than a short-term long option though and are slower moving trades as well.
Learn more with a live Q&A session as well!
It's a busy What's Your Assumption. Anton and Jenny place a Delta Buster and talk about covered calls vs. short puts. They go over tick size in the British Pound and sell a put spread. They also look at reverse jade lizards in US Steel and Dutch Brothers.
It's a busy What's Your Assumption. Anton and Jenny place a Delta Buster and talk about covered calls vs. short puts. They go over tick size in the British Pound and sell a put spread. They also look at reverse jade lizards in US Steel and Dutch Brothers.
Anton and Jenny start the show by closing yesterday's earnings trades and talking about the /SMO calendar. Then they discuss this morning's segment with Jacob. Should we add to losing positions when volatility increases?
Anton and Jenny start the show by closing yesterday's earnings trades and talking about the /SMO calendar. Then they discuss this morning's segment with Jacob. Should we add to losing positions when volatility increases?
The Kelly criterion is a result in provably optimal gambling strategy that contains useful lessons for traders, but it is based on some very strong assumptions. By examining the results of relaxing these assumptions, we can help take these lessons into our real trades. Today, Jacob joins Tom and Tony discuss the unintuitive consequences of making trades when we don’t know what kind of opportunities the future will present.
The Kelly criterion is a result in provably optimal gambling strategy that contains useful lessons for traders, but it is based on some very strong assumptions. By examining the results of relaxing these assumptions, we can help take these lessons into our real trades. Today, Jacob joins Tom and Tony discuss the unintuitive consequences of making trades when we don’t know what kind of opportunities the future will present.
In low IV environments, diversifying portfolios is easy because non-correlated underlyings are plentiful. The risk of a portfolio that only contains non-correlated stock is understated because stock correlations increase in periods of high IV. By utilizing other asset classes and option strategies in our portfolios, we may diversify away more risk because those assets and strategies tended to remain less correlated to each other than stocks would be.
In low IV environments, diversifying portfolios is easy because non-correlated underlyings are plentiful. The risk of a portfolio that only contains non-correlated stock is understated because stock correlations increase in periods of high IV. By utilizing other asset classes and option strategies in our portfolios, we may diversify away more risk because those assets and strategies tended to remain less correlated to each other than stocks would be.
Kayla and Errol discuss some of the biggest hacks in crypto history including breaking news on a $625 million dollar breach in the Ronin sidechain. The Ronin sidechain allows users to play the number one blockchain based game Axie. When Infinity was hacked, the hackers stole $625 million dollars, making it the largest crypto hack to date. Only to be compared to the infamous mt. gos breach when $450 million dollars worth of BTC was stolen.
Kayla and Errol discuss some of the biggest hacks in crypto history including breaking news on a $625 million dollar breach in the Ronin sidechain. The Ronin sidechain allows users to play the number one blockchain based game Axie. When Infinity was hacked, the hackers stole $625 million dollars, making it the largest crypto hack to date. Only to be compared to the infamous mt. gos breach when $450 million dollars worth of BTC was stolen.
Today Mike joins Errol and Kayla on explaining theta in 3 sentences. Kayla first explains how she understands theta and then Errol explains theta in his own words. Mike goes into the details of what theta is and what too look out for.
Today Mike joins Errol and Kayla on explaining theta in 3 sentences. Kayla first explains how she understands theta and then Errol explains theta in his own words. Mike goes into the details of what theta is and what too look out for.
Stocks surge on European conflict de-escalation rhetoric. After 32 consecutive days of closing above $20, the $VIX finally collapsed. The 2- and 10-year curve inverted for first since 2019.Watch Engineering the Trade as Jermal provides more clarity on all of these topics.
Stocks surge on European conflict de-escalation rhetoric. After 32 consecutive days of closing above $20, the $VIX finally collapsed. The 2- and 10-year curve inverted for first since 2019.Watch Engineering the Trade as Jermal provides more clarity on all of these topics.
When you want to play a directional bias to the upside, two of the more classic choices are the Short Put and the Long Call Spread. While the Short Put is an undefined-risk strategy, the Long Call Spread is a defined-risk strategy. In the event that you really want to play a stock higher, you could combine the two into what we call a Super Bull. In today’s show, we work through a potential Super Bull in KR.Did you catch the naked strategies for a $5,000 account segment?
When you want to play a directional bias to the upside, two of the more classic choices are the Short Put and the Long Call Spread. While the Short Put is an undefined-risk strategy, the Long Call Spread is a defined-risk strategy. In the event that you really want to play a stock higher, you could combine the two into what we call a Super Bull. In today’s show, we work through a potential Super Bull in KR.Did you catch the naked strategies for a $5,000 account segment?
In this week's Macro Market Outlook, Chris and Pete are looking at new lows in the twos-tens spread on the yield curve, upcoming non-farm payroll numbers, and eurozone inflation.
In this week's Macro Market Outlook, Chris and Pete are looking at new lows in the twos-tens spread on the yield curve, upcoming non-farm payroll numbers, and eurozone inflation.
Collecting too little credit on trade entry can mean a lot of risk for little potential reward. Collecting too much credit on defined risk spreads means a low POP trade - tune in to learn what the tastytrade crew does with both risk types today on OTC Live!
Collecting too little credit on trade entry can mean a lot of risk for little potential reward. Collecting too much credit on defined risk spreads means a low POP trade - tune in to learn what the tastytrade crew does with both risk types today on OTC Live!
Liz and Jenny look at a strangle in X, but decide to define the downside risk. They get back into SOFI with Pablo by selling naked puts. Liz tells a story about Sundial Cannabis and the girls buy some stock.
Liz and Jenny look at a strangle in X, but decide to define the downside risk. They get back into SOFI with Pablo by selling naked puts. Liz tells a story about Sundial Cannabis and the girls buy some stock.
Liz and Jenny talk about Liz's favorite store, LULU. They place a jade lizard in Chewy and walk through closing the /SMO calendar. They also look at Robinhood after the big move today.
Liz and Jenny talk about Liz's favorite store, LULU. They place a jade lizard in Chewy and walk through closing the /SMO calendar. They also look at Robinhood after the big move today.
Changing the delta on your short premium when IV goes up or down can help stabilize a portfolio’s exposure since all deltas are affected similarly by changes in IV. With IV going down for now, increasing the delta of your strangle can help make up for less premium but at the cost of some probability of profit.
Changing the delta on your short premium when IV goes up or down can help stabilize a portfolio’s exposure since all deltas are affected similarly by changes in IV. With IV going down for now, increasing the delta of your strangle can help make up for less premium but at the cost of some probability of profit.
Using low correlation underlyings is the key to reaching a large number of occurrences and reducing the risk inherent in selling option premium. tastytrader’s also tend to increase their trading activity when volatility is high in order to capture the additional profit potential. Today, Tom and Tony look at the data to see how correlations have varied depending on the volatility of the underlyings.
Using low correlation underlyings is the key to reaching a large number of occurrences and reducing the risk inherent in selling option premium. tastytrader’s also tend to increase their trading activity when volatility is high in order to capture the additional profit potential. Today, Tom and Tony look at the data to see how correlations have varied depending on the volatility of the underlyings.
With Instacart lowering its valuation from $39 billion to $24 billion, how does this reflect on the company? Join Tom, Tony, and Victor as they discuss the deviation in private and public market strategies and how it’s important to tell the right story and not spend more than you make.
Tune in at the end for their opinions on the Billionaire Tax. What is it and does the tax code need to be rewritten?
With Instacart lowering its valuation from $39 billion to $24 billion, how does this reflect on the company? Join Tom, Tony, and Victor as they discuss the deviation in private and public market strategies and how it’s important to tell the right story and not spend more than you make.
Tune in at the end for their opinions on the Billionaire Tax. What is it and does the tax code need to be rewritten?
Kayla and Errol recap last weeks assignments and put on a few high implied volatility trades. Last week Errol and Kayla put on a volatility trade with Jermal and sold their first strangle with Nick. Errol gets an update on some trades he chose not to roll. Kay placed a trade in DraftKings, PayPal and Tesla.
Kayla and Errol recap last weeks assignments and put on a few high implied volatility trades. Last week Errol and Kayla put on a volatility trade with Jermal and sold their first strangle with Nick. Errol gets an update on some trades he chose not to roll. Kay placed a trade in DraftKings, PayPal and Tesla.
The Nasdaq is up 13% in two weeks. Oil is falling once again but this time on China-related Covid lockdowns. The futures market is now pricing more than eight 25 bps rate hikes by the end of 2022.
The Nasdaq is up 13% in two weeks. Oil is falling once again but this time on China-related Covid lockdowns. The futures market is now pricing more than eight 25 bps rate hikes by the end of 2022.
At trade entry, we’re always looking for a position that will best take advantage of the benefits of short premium. But in doing this, we often have to choose between a position that highlights efficiency relative to a position that highlights effectiveness. Generally speaking, defined-risk strategies are more efficient than undefined-risk strategies in using buying power, but the undefined-risk strategies are far more effective over time. So over time, both types of strategies will be used in any well-balanced portfolio.Did you catch my naked strategies for a $5,000 account segment?
At trade entry, we’re always looking for a position that will best take advantage of the benefits of short premium. But in doing this, we often have to choose between a position that highlights efficiency relative to a position that highlights effectiveness. Generally speaking, defined-risk strategies are more efficient than undefined-risk strategies in using buying power, but the undefined-risk strategies are far more effective over time. So over time, both types of strategies will be used in any well-balanced portfolio.Did you catch my naked strategies for a $5,000 account segment?
While all equity futures have an IVR above 40, Jermal singles out NQ futures IVR of 50+ for a vol sale. Bitcoin has had a nice run over the past couple of weeks but is it worth trading at these levels? Finally, Jermal takes a look at selling commodity volatility in the form of the CL and GC futures contracts.
While all equity futures have an IVR above 40, Jermal singles out NQ futures IVR of 50+ for a vol sale. Bitcoin has had a nice run over the past couple of weeks but is it worth trading at these levels? Finally, Jermal takes a look at selling commodity volatility in the form of the CL and GC futures contracts.
A married put consists of long stock with the purchase of a put to protect downside risk - the call zebra achieves the same thing, but you don't pay for extrinsic value with the ZEBRA options trade.
Learn why this is the case today on OTC Live!
A married put consists of long stock with the purchase of a put to protect downside risk - the call zebra achieves the same thing, but you don't pay for extrinsic value with the ZEBRA options trade.
Learn why this is the case today on OTC Live!
It's Monday, so Liz nd Jenny receive the Alpha Boost trade ideas of the day. Today they are looking at GLD. Liz and Jenny are between an iron fly and a big lizard. They end up placing a neutral to bullish big lizard.
After seeing Invesco QQQ ETF ads all weekend during March madness, Liz and Jenny can't help but place a new trade in it. They look at a one standard deviation strangle, but decide to define their risk. They discuss the pros and cons of a naked strangle vs. an iron condor.
After seeing Invesco QQQ ETF ads all weekend during March madness, Liz and Jenny can't help but place a new trade in it. They look at a one standard deviation strangle, but decide to define their risk. They discuss the pros and cons of a naked strangle vs. an iron condor.
Cameron McNie is the Co-founders of Hawaiian Bros Island Grill, which is a chain of 30+ restaurants spread throughout the U.S. that serves Island-inspired Hawaiian fare. What makes this an interesting story, is Cameron and his brother, Tyler, relocated from the West Coast to Kansas City, Missouri to launch the business, and in less than five years they have grown the company ten-fold.
Cameron McNie is the Co-founders of Hawaiian Bros Island Grill, which is a chain of 30+ restaurants spread throughout the U.S. that serves Island-inspired Hawaiian fare. What makes this an interesting story, is Cameron and his brother, Tyler, relocated from the West Coast to Kansas City, Missouri to launch the business, and in less than five years they have grown the company ten-fold.
Over numerous studies, we’ve concluded that a profit target right around 50% tends to provide the most optimal balance of risk and reward. These studies were conducted on some of the more common tasty strategies, such as 16∆ strangles, puts, and calls.Recently, we’ve looked at selling ITM puts as an alternative to covered calls, but that begs the question, at what level do we manage these options?Since we are collecting a much larger initial credit when selling ITM options, should we manage at a smaller profit target? Or, should we still keep our profit targets at 50%?
Over numerous studies, we’ve concluded that a profit target right around 50% tends to provide the most optimal balance of risk and reward. These studies were conducted on some of the more common tasty strategies, such as 16∆ strangles, puts, and calls.Recently, we’ve looked at selling ITM puts as an alternative to covered calls, but that begs the question, at what level do we manage these options?Since we are collecting a much larger initial credit when selling ITM options, should we manage at a smaller profit target? Or, should we still keep our profit targets at 50%?
As tastytraders constantly searching for advantages in the market, it is clear that some markets present us with more opportunities, and some markets present us with fewer opportunities. And in the world of high-level math and statistics, Markov Chains, Hidden Markov Models, and now Markov Switching Models illustrate how the randomness and unpredictability of the market can be categorized into different regimes. Specifically, if we just focus on selling premium during down days, as our research has studied, this type of market regime yields far more opportunity than a non-down day.
As tastytraders constantly searching for advantages in the market, it is clear that some markets present us with more opportunities, and some markets present us with fewer opportunities. And in the world of high-level math and statistics, Markov Chains, Hidden Markov Models, and now Markov Switching Models illustrate how the randomness and unpredictability of the market can be categorized into different regimes. Specifically, if we just focus on selling premium during down days, as our research has studied, this type of market regime yields far more opportunity than a non-down day.
Balancing overall risk in a portfolio through some key metrics is important to successful trading.
A quantitative approach to understanding an accounts profit potential is essential. Some key metrics we use include:
- Portfolio Beta-Weighted Delta
- Extrinsic Value
- Overall POP
Join Tom and Tony today as they walk through each concept in detail.
Balancing overall risk in a portfolio through some key metrics is important to successful trading.
A quantitative approach to understanding an accounts profit potential is essential. Some key metrics we use include:
- Portfolio Beta-Weighted Delta
- Extrinsic Value
- Overall POP
Join Tom and Tony today as they walk through each concept in detail.
Jermal joins Errol and Kay on rolling trades this Friday! Since it is 21 DTE Jermal gives his opinion on a few of the yutes position and if HE would roll them or not. Kay and E consider Jermal's recommendations and decide to roll or completely take off positions.
Jermal joins Errol and Kay on rolling trades this Friday! Since it is 21 DTE Jermal gives his opinion on a few of the yutes position and if HE would roll them or not. Kay and E consider Jermal's recommendations and decide to roll or completely take off positions.
Jermal Chandler and Michael “Dr. Data” Rechenthin cover the math behind making $500/monthly using a strategy of dividend stocks plus covered calls. Being engineers, a bit of math is involved, but they break it down using a simple example. First, they determine how many shares are needed using only dividend stocks. They then show how this can be accentuated using covered calls. An example, using the Dividend Aristocrats is shown, plus they use the tastyworks platform how to find examples for your portfolio.
Jermal Chandler and Michael “Dr. Data” Rechenthin cover the math behind making $500/monthly using a strategy of dividend stocks plus covered calls. Being engineers, a bit of math is involved, but they break it down using a simple example. First, they determine how many shares are needed using only dividend stocks. They then show how this can be accentuated using covered calls. An example, using the Dividend Aristocrats is shown, plus they use the tastyworks platform how to find examples for your portfolio.
Sometimes, one strategy will serve as a synthetic version of another strategy, and other times, one strategy will have a second strategy embedded within itself. With Broken-Wing Butterflies, it is this second case that we find within the structure of this strategy. Specifically, when studying the strike differential in a BWB, we can see that there is an embedded Short Vertical Spread inside of the strategy, and it is the hidden strategy that gives the BWB its directional bias and credit on entry.Did you catch my naked strategies for a $5,000 account segment?
Sometimes, one strategy will serve as a synthetic version of another strategy, and other times, one strategy will have a second strategy embedded within itself. With Broken-Wing Butterflies, it is this second case that we find within the structure of this strategy. Specifically, when studying the strike differential in a BWB, we can see that there is an embedded Short Vertical Spread inside of the strategy, and it is the hidden strategy that gives the BWB its directional bias and credit on entry.Did you catch my naked strategies for a $5,000 account segment?
Defending against losing trades can take many forms including spreading off the risk, adding options to the position, or taking a macro view with a hedge. The Small Exchange futures dudes zero in on the outlier movement being seen in interest rates to give you three distinct risk management options when a futures market is going against you.
Find out what your favorite way to defend futures might be using spreads, options, or macro hedges.
Defending against losing trades can take many forms including spreading off the risk, adding options to the position, or taking a macro view with a hedge. The Small Exchange futures dudes zero in on the outlier movement being seen in interest rates to give you three distinct risk management options when a futures market is going against you.
Find out what your favorite way to defend futures might be using spreads, options, or macro hedges.
The tastytrade crew answers live questions around futures trading, options trading, and stock trading!
The tastytrade crew answers live questions around futures trading, options trading, and stock trading!
Liz and Jenny talk about hedging a bullish portfolio with a SPY put zebra. They compare shorter duration to a longer dated trade. They also compare it to the delta buster or long vix trade.
Liz and Jenny talk about hedging a bullish portfolio with a SPY put zebra. They compare shorter duration to a longer dated trade. They also compare it to the delta buster or long vix trade.
Liz and Jenny go through an example for a viewer on how to manage covered calls. They compare rolling out in time for a credit vs. moving to a lower delta strike. They also make adjustments to some bullish zebras in SNAP and ROCKET.
Liz and Jenny go through an example for a viewer on how to manage covered calls. They compare rolling out in time for a credit vs. moving to a lower delta strike. They also make adjustments to some bullish zebras in SNAP and ROCKET.
A covered call strategy is long stock + a short call. Since the short call reduces the net delta exposure of the position, covered calls will generally carry lower risk than long stock.When comparing overall trade metrics to long stock, a covered call tends to reduce risk, reduce upside P/L potential and increase your POP per trade. In this Market Measure, we will walk through the differences in performance of just long stock vs covered calls!
A covered call strategy is long stock + a short call. Since the short call reduces the net delta exposure of the position, covered calls will generally carry lower risk than long stock.When comparing overall trade metrics to long stock, a covered call tends to reduce risk, reduce upside P/L potential and increase your POP per trade. In this Market Measure, we will walk through the differences in performance of just long stock vs covered calls!
After five weeks of high volatility, the markets have witnessed two weeks of bounce and bliss. Where do we go from here? Mikey, Nicky, and Jermal discuss the next moves in the market.
After five weeks of high volatility, the markets have witnessed two weeks of bounce and bliss. Where do we go from here? Mikey, Nicky, and Jermal discuss the next moves in the market.
按照风险的类型，我们可以将期权策略大致氛围风险定义与未定义。风险定义意味着该期权策略的最大风险是固定的，不会随着股价的变动而无限增加。而风险未定义则相反，如果股价不断上涨或者下跌，某个期权策略的最大损失可以上不封顶或者非常巨大。对于这两类期权策略，他们的盈利概率计算方法是否一致呢？具体他们的算法又是什么？这期节目就让我们来看一下。
We can put all options strategies into two buckets, risk-defined or risk-undefined. Risk-defined means that an options strategy has limited max risk. The risk doesn’t increase indefinitely along with the change of the underlying price. The risk-defined strategies are the opposite. The risk could be unlimited. So how to calculate the POP for these two types of strategies? And are these the same? Let’s take a look at it.
Today Kay and E talk about some of the red flags to avoid a rug pull in the crypto space. What's a Rug pull? Rug pulls are lucrative scams that leave investors empty handed. Warning signs include undisclosed creators, banning members of the community, fake followers, and lack of innovation. Kay and E talk about some of the consequences for founders that abandon the projects and run with the money.
Today Kay and E talk about some of the red flags to avoid a rug pull in the crypto space. What's a Rug pull? Rug pulls are lucrative scams that leave investors empty handed. Warning signs include undisclosed creators, banning members of the community, fake followers, and lack of innovation. Kay and E talk about some of the consequences for founders that abandon the projects and run with the money.
Applications for U.S. state unemployment insurance fell last week to the lowest since 1969 amidst record amounts of job openings. The $VIX is at six week lows but has not closed below $20 since February 9. Both of these metrics are keys to a healthy market and economy. Join Engineering the Trade for a discussion and this and a whole lot more!
Applications for U.S. state unemployment insurance fell last week to the lowest since 1969 amidst record amounts of job openings. The $VIX is at six week lows but has not closed below $20 since February 9. Both of these metrics are keys to a healthy market and economy. Join Engineering the Trade for a discussion and this and a whole lot more!
Pairs trading is a common way to reduce the risk associated with large swings in specific markets.
Pete and James take the conversation a step further and demonstrate how traders can take into account implied volatility when setting up pairs trades. They set up examples in the three major equity indices and also in Gold and Silver to demonstrate the impact implied volatility can have and why traders may wish to consider IV adjusted notional values.
Pairs trading is a common way to reduce the risk associated with large swings in specific markets.
Pete and James take the conversation a step further and demonstrate how traders can take into account implied volatility when setting up pairs trades. They set up examples in the three major equity indices and also in Gold and Silver to demonstrate the impact implied volatility can have and why traders may wish to consider IV adjusted notional values.
As premium sellers, it’s not uncommon for our directional bias to change over the life of a trade. This is especially true for neutral strategies, such as Short Strangles or Iron Condors. But how does this apply to a purely directional strategy like a Vertical Spread?Today, we look at a Short Call Spread sent in from a tastytrader (thanks, Libby!) that is being tested to examine whether or not it makes sense to alter the directional bias on this trade.Did you catch my naked strategies for a $5,000 account segment?
As premium sellers, it’s not uncommon for our directional bias to change over the life of a trade. This is especially true for neutral strategies, such as Short Strangles or Iron Condors. But how does this apply to a purely directional strategy like a Vertical Spread?Today, we look at a Short Call Spread sent in from a tastytrader (thanks, Libby!) that is being tested to examine whether or not it makes sense to alter the directional bias on this trade.Did you catch my naked strategies for a $5,000 account segment?
Options on futures can give you fractional exposure of a single contract in the underlying futures market, so that you can trade directional without full risk of the futures as long as the option is out-the-money.
Today's example finds Errol and Frank trying to gain short exposure on a gold and silver market near all-time highs. The futures dudes compare selling a Small Precious Metals futures contract to selling a 20 delta call on SPRE. Find out the nuances of options and futures, and see if trading this derivatives market is for you.
Options on futures can give you fractional exposure of a single contract in the underlying futures market, so that you can trade directional without full risk of the futures as long as the option is out-the-money.
Today's example finds Errol and Frank trying to gain short exposure on a gold and silver market near all-time highs. The futures dudes compare selling a Small Precious Metals futures contract to selling a 20 delta call on SPRE. Find out the nuances of options and futures, and see if trading this derivatives market is for you.
The tastytrade crew shares their trade ideas for the day! Mike sells a put spread in NIO for earnings
Nick buys a call diagonal spread in FB
Katie sells a /GC futures iron condor
Tune in to learn more and a live Q&A as well!
The tastytrade crew shares their trade ideas for the day! Mike sells a put spread in NIO for earnings
Nick buys a call diagonal spread in FB
Katie sells a /GC futures iron condor
Tune in to learn more and a live Q&A as well!
Frank joins Liz and Jenny to talk about crude oil calendars. Before they get into Frank's Futures trade of the day, they discuss the yield curve and look at ways to trade the curve using the small 2 year and ten year or the larger note products. Then they dive into calendars. They sell the shorter term /SMO and buy the longer duration, hoping this spread comes in for about a $100 profit.
Frank joins Liz and Jenny to talk about crude oil calendars. Before they get into Frank's Futures trade of the day, they discuss the yield curve and look at ways to trade the curve using the small 2 year and ten year or the larger note products. Then they dive into calendars. They sell the shorter term /SMO and buy the longer duration, hoping this spread comes in for about a $100 profit.
Interested in betting and trading opportunities in politics, sports, pop culture, and more? Tune in to the debut of Season 3 of The Prediction Trade. With topics ranging from handicapping the Brazilian general election, predictions for the Final Four in March Madness, and a guide for betting on the 94th Academy Awards this weekend, there is something for everyone!
Interested in betting and trading opportunities in politics, sports, pop culture, and more? Tune in to the debut of Season 3 of The Prediction Trade. With topics ranging from handicapping the Brazilian general election, predictions for the Final Four in March Madness, and a guide for betting on the 94th Academy Awards this weekend, there is something for everyone!
With yields on bonds still quite low, investors may look at dividend paying stocks as a way to generate income. Stocks that pay high, consistent dividends are a great addition to any portfolio due to this.A dividend reinvestment plan (DRIP) is program that allows investors to reinvest their dividends into additional shares of the company. There are two primary benefits of DRIPS, which are dollar-cost averaging and compounding of returns.Utilizing a DRIP can help long-term investors build their positions without having to outlay more capital or manage the cash dividends. But, just how much of an impact can a DRIP have on returns?
With yields on bonds still quite low, investors may look at dividend paying stocks as a way to generate income. Stocks that pay high, consistent dividends are a great addition to any portfolio due to this.A dividend reinvestment plan (DRIP) is program that allows investors to reinvest their dividends into additional shares of the company. There are two primary benefits of DRIPS, which are dollar-cost averaging and compounding of returns.Utilizing a DRIP can help long-term investors build their positions without having to outlay more capital or manage the cash dividends. But, just how much of an impact can a DRIP have on returns?
Tom and Tony walk through the importance of established trade mechanics and how they are the gateway to trade consistency, statistics, and probability. Of those mechanics they offered these four examples.
- Trade size
- Duration
- Occurrences and management which is paramount to keeping the level of engagement high
Tom and Tony walk through the importance of established trade mechanics and how they are the gateway to trade consistency, statistics, and probability. Of those mechanics they offered these four examples.
- Trade size
- Duration
- Occurrences and management which is paramount to keeping the level of engagement high
Today Errol and Kayla examined the $VIX option chain and put on a long position. Due to $VIX being extended to the downside, they felt comfortable putting on a trade that would work in their favor if volatility expanded. Since time is not on their side in this trade, they could quickly manage the position if needed.
Today Errol and Kayla examined the $VIX option chain and put on a long position. Due to $VIX being extended to the downside, they felt comfortable putting on a trade that would work in their favor if volatility expanded. Since time is not on their side in this trade, they could quickly manage the position if needed.
Global bond markets have suffered unprecedented losses since peaking last year. Additionally, bond market volatility is increasing just as stock market volatility is dissipating. Does this mean the trend will continue and stocks will bounce back more?
Global bond markets have suffered unprecedented losses since peaking last year. Additionally, bond market volatility is increasing just as stock market volatility is dissipating. Does this mean the trend will continue and stocks will bounce back more?
Full Decentralized is arguably the biggest buzz word being tossed around right now. It’s what Web 3.0 is all about. We’re moving on from static data delivery and large companies crunching data to users owning their own data. It has implications in every facet of life, including finance, both in terms of infrastructure investments and the ways in which we will transact commerce in the future. How will this all shake out?
Full Decentralized is arguably the biggest buzz word being tossed around right now. It’s what Web 3.0 is all about. We’re moving on from static data delivery and large companies crunching data to users owning their own data. It has implications in every facet of life, including finance, both in terms of infrastructure investments and the ways in which we will transact commerce in the future. How will this all shake out?
If direction is a 50/50 shot… then how do you make money trading futures? First, to get to a positive expected profit, we need symmetric risk/return. Then we can pair this probabilistic strategy with historical data. This will give us standard deviations that we can use to build reasonable scalping ranges.Tune in to Splash Into Futures to learn more about this concept.
If direction is a 50/50 shot… then how do you make money trading futures? First, to get to a positive expected profit, we need symmetric risk/return. Then we can pair this probabilistic strategy with historical data. This will give us standard deviations that we can use to build reasonable scalping ranges.Tune in to Splash Into Futures to learn more about this concept.
Spread trades involve offsetting positions in similar products that, as a whole, create a unique opportunity. The classic example is Coca-Cola vs Pepsi: instead of getting long or short soft drinks, you can trade the two against each other and potentially profit from one outperforming the other in either direction.
Finally, Katie helps apply the concept to futures markets that offer lower buying power and thus a cheaper route to spread trading. She brings in the concept of mean reversion and applies it to the relationship between two similar markets like Small Stocks and Small Technology.
Spread trades involve offsetting positions in similar products that, as a whole, create a unique opportunity. The classic example is Coca-Cola vs Pepsi: instead of getting long or short soft drinks, you can trade the two against each other and potentially profit from one outperforming the other in either direction.
Finally, Katie helps apply the concept to futures markets that offer lower buying power and thus a cheaper route to spread trading. She brings in the concept of mean reversion and applies it to the relationship between two similar markets like Small Stocks and Small Technology.
Gamma risk is defined as the rate of change of an option's delta given a $1 move in the underlying's price. We can simplify this further by stating that gamma risk really applies to short options near expiration - but why?
It all has to do with a lack of extrinsic value associated with the strike, and how this does not help you offset intrinsic value moves against you with short options trades.
Tune in to learn more with a live Q&A as well!
Gamma risk is defined as the rate of change of an option's delta given a $1 move in the underlying's price. We can simplify this further by stating that gamma risk really applies to short options near expiration - but why?
It all has to do with a lack of extrinsic value associated with the strike, and how this does not help you offset intrinsic value moves against you with short options trades.
Tune in to learn more with a live Q&A as well!
The bond market provides many investors with a sense of security and others with a useful way to hedge against equities. Historically, there were complicated methods for teasing expectations around inflation, but modern treasury products streamline the process. Today, Jacob joins Tom and Tony to describe the relationship between bonds and inflation and unpack where modern inflation predictions come from.
The bond market provides many investors with a sense of security and others with a useful way to hedge against equities. Historically, there were complicated methods for teasing expectations around inflation, but modern treasury products streamline the process. Today, Jacob joins Tom and Tony to describe the relationship between bonds and inflation and unpack where modern inflation predictions come from.
Uplift's technology delivers real-time movement tracking and 3D analysis to enhance performance and health using only your smartphone. Their user-friendly, patented solutions provide coaches, trainers, and physical therapists with the tools and analytics they need to optimize human performance while mitigating the risk of injuries in sports, health, and wellness. Masa Kabayama is the Co-founder & CEO. He is the former President of Tesla Japan, GoPro's Advanced technology senior leader, and a machine learning scientist from Carnegie Mellon University.
Uplift's technology delivers real-time movement tracking and 3D analysis to enhance performance and health using only your smartphone. Their user-friendly, patented solutions provide coaches, trainers, and physical therapists with the tools and analytics they need to optimize human performance while mitigating the risk of injuries in sports, health, and wellness. Masa Kabayama is the Co-founder & CEO. He is the former President of Tesla Japan, GoPro's Advanced technology senior leader, and a machine learning scientist from Carnegie Mellon University.
Based on most recent data, there is very weak to no correlation between common sectors across all volatility profiles and short and long term interest rates. This means that when interest rates begin to rise, we don’t know what the sustained effect will be on the stock market.Keeping small positions is the only defense for volatile markets when interest rates rise.
Based on most recent data, there is very weak to no correlation between common sectors across all volatility profiles and short and long term interest rates. This means that when interest rates begin to rise, we don’t know what the sustained effect will be on the stock market.Keeping small positions is the only defense for volatile markets when interest rates rise.
Jermal joins E & Kay to assist with trading a volatility product. Volatility has been down due to consecutive green days in the market. Jermal explains the halt in $VXX that occurred last week. Since selling a spread did not seem ideal they will be back to trading a volatility product part 2.
Jermal joins E & Kay to assist with trading a volatility product. Volatility has been down due to consecutive green days in the market. Jermal explains the halt in $VXX that occurred last week. Since selling a spread did not seem ideal they will be back to trading a volatility product part 2.
Yields continue to breakout for several countries across the globe. Supply chain levels remain elevated according to many S&P 500 companies' earnings calls. The EU is split on Russian oil embargo as many are too dependent on Putin's black gold. Join Jermal as he breaks it all down.
Yields continue to breakout for several countries across the globe. Supply chain levels remain elevated according to many S&P 500 companies' earnings calls. The EU is split on Russian oil embargo as many are too dependent on Putin's black gold. Join Jermal as he breaks it all down.
When it comes to the Greeks, simply understanding the numbers is more than half the battle. Sometimes they are presented as decimals, and sometimes they are presented as whole numbers - all of which can make accurate interpretation quite difficult. So today, we work through exactly how to read and interpret both Delta and Theta numbers, in their various forms, inside the tastyworks platform.Did you catch my naked strategies for a $5,000 account segment?
When it comes to the Greeks, simply understanding the numbers is more than half the battle. Sometimes they are presented as decimals, and sometimes they are presented as whole numbers - all of which can make accurate interpretation quite difficult. So today, we work through exactly how to read and interpret both Delta and Theta numbers, in their various forms, inside the tastyworks platform.Did you catch my naked strategies for a $5,000 account segment?
Chris and Pete provide an outlook into weekly micro and macro events and share what's moving given current market conditions.
Today's discussion topics include:
- The recent state of the durable goods market
- The Consumer Confidence Index (CCI), Sentiment Indicators, the Shenzhen region after a week-long lockdown, the FED, and the impact of high inflation on gas prices
- The Russian-Ukraine conflict and its impact on commodities, currencies, VOL, rates, and more. Tune in.
Chris and Pete provide an outlook into weekly micro and macro events and share what's moving given current market conditions.
Today's discussion topics include:
- The recent state of the durable goods market
- The Consumer Confidence Index (CCI), Sentiment Indicators, the Shenzhen region after a week-long lockdown, the FED, and the impact of high inflation on gas prices
- The Russian-Ukraine conflict and its impact on commodities, currencies, VOL, rates, and more. Tune in.
The Black-Scholes model can seem overwhelming and complicated, but there are a few main keys that we can focus on to estimate extrinsic value in options prices - time to expiration, IV% levels, and most importantly, how expensive the stock price is!
Tune in to learn more with a live Q&A as well!
The Black-Scholes model can seem overwhelming and complicated, but there are a few main keys that we can focus on to estimate extrinsic value in options prices - time to expiration, IV% levels, and most importantly, how expensive the stock price is!
Tune in to learn more with a live Q&A as well!
Are you well or are you good? Laugh with Liz, Jenny, and Anton as they debate this common grammar question. The recent volatility crush forces a trader to ask... what now? Should we still be selling premium or waiting for the next down move?
Are you well or are you good? Laugh with Liz, Jenny, and Anton as they debate this common grammar question. The recent volatility crush forces a trader to ask... what now? Should we still be selling premium or waiting for the next down move?
Although 2 SD (5 delta) strangles seem safer because of their lower risk, profits and return on capital are greatly sacrificed while POP is much higher. Higher delta strangles (1 SD and ½ SD) are more risky, but make up for it with their larger ROC and higher raw P/L.
Join Tom and Tony as they discuss the tradeoffs between trading high delta strangles vs low delta strangles.
Although 2 SD (5 delta) strangles seem safer because of their lower risk, profits and return on capital are greatly sacrificed while POP is much higher. Higher delta strangles (1 SD and ½ SD) are more risky, but make up for it with their larger ROC and higher raw P/L.
Join Tom and Tony as they discuss the tradeoffs between trading high delta strangles vs low delta strangles.
IVR is a useful first metric for the current richness of options, while the expected range gives a theoretical one standard deviation range for future underlying prices. Both of these metrics are derived from implied volatility.
Today, Tom and Tony look into the data to see how often prices stay within their expected ranges and how this answer changes with IVR.
IVR is a useful first metric for the current richness of options, while the expected range gives a theoretical one standard deviation range for future underlying prices. Both of these metrics are derived from implied volatility.
Today, Tom and Tony look into the data to see how often prices stay within their expected ranges and how this answer changes with IVR.
In the face of uncertainty is it better for CEOs to put their expectations on the floor or to tell the best story to get investors on board. Depending on the market and the CEO this answer could be different.
Join Tom, Tony, and Victor today as they discuss how bullish vs bearish markets and the credibility of a CEO could change the approach of either playing is safe or taking risks. Also tune in to hear their opinion on stock buy backs.
In the face of uncertainty is it better for CEOs to put their expectations on the floor or to tell the best story to get investors on board. Depending on the market and the CEO this answer could be different.
Join Tom, Tony, and Victor today as they discuss how bullish vs bearish markets and the credibility of a CEO could change the approach of either playing is safe or taking risks. Also tune in to hear their opinion on stock buy backs.
Errol and Kayla recap last week's trades and give an update on how their positions are doing. The two also searched for a new trade using the TastyWorks "High Options Volume" watchlist, and put on two different trades in NKE before earnings!
Errol and Kayla recap last week's trades and give an update on how their positions are doing. The two also searched for a new trade using the TastyWorks "High Options Volume" watchlist, and put on two different trades in NKE before earnings!
After a face-ripping rally in the indexes that led to the best performance since November 2020, prices in most markets seem to be at an equilibrium. Volatility has come in but the rises in both crude oil and treasury yields might be crashing the party. Watch Engineering the Trade as Jermal tells you how he's approaching these market conditions.
After a face-ripping rally in the indexes that led to the best performance since November 2020, prices in most markets seem to be at an equilibrium. Volatility has come in but the rises in both crude oil and treasury yields might be crashing the party. Watch Engineering the Trade as Jermal tells you how he's approaching these market conditions.
A broken-wing butterfly is a powerful strategy that can allow you to make money in both rising and falling markets. But similar to ratio spreads, it’s important that you collect enough credit on order entry. Doing this gives a move where the options are becoming more out-of-the-money more economic significance.Today, we see the importance of this with our current SPY BWB and our potential HD BWB.Did you catch my naked strategies for a $5,000 account segment?
A broken-wing butterfly is a powerful strategy that can allow you to make money in both rising and falling markets. But similar to ratio spreads, it’s important that you collect enough credit on order entry. Doing this gives a move where the options are becoming more out-of-the-money more economic significance.Today, we see the importance of this with our current SPY BWB and our potential HD BWB.Did you catch my naked strategies for a $5,000 account segment?
After a brief discussion regarding the bearish action in bonds, Pete and Jermal take a look at a few premium collecting trades. They identify an iron condor in micro Nasdaq futures and contrast that with the same trade in micro S&P futures. Finally, they take a look at a similar trade in crude oil futures.
After a brief discussion regarding the bearish action in bonds, Pete and Jermal take a look at a few premium collecting trades. They identify an iron condor in micro Nasdaq futures and contrast that with the same trade in micro S&P futures. Finally, they take a look at a similar trade in crude oil futures.
Yield curve inversions occur when short-term interest rates are higher than long-term rates, and they are often thought of as a sign of upcoming economic turbulence.
Derivatives dudes Mikey and Frank explore the potential for a yield curve inversion using Small Exchange futures and the Pairs Trader at tastyworks. The guys pit 10 Year US Treasury rates against 2 Year US Treasury rates to spread trade their difference and create a unique strategy that's at a price extreme.
Yield curve inversions occur when short-term interest rates are higher than long-term rates, and they are often thought of as a sign of upcoming economic turbulence.
Derivatives dudes Mikey and Frank explore the potential for a yield curve inversion using Small Exchange futures and the Pairs Trader at tastyworks. The guys pit 10 Year US Treasury rates against 2 Year US Treasury rates to spread trade their difference and create a unique strategy that's at a price extreme.
IRA accounts are cash secured from a short options trade perspective, which means we have to put up 100% of the strike price notional value on trades. This is inefficient because it ties up a large amount of capital for a very small probability event. To avoid this, we can define risk to reduce buying power and synthesize a margin account.
Tune in to learn more, with a live Q&A as well!
IRA accounts are cash secured from a short options trade perspective, which means we have to put up 100% of the strike price notional value on trades. This is inefficient because it ties up a large amount of capital for a very small probability event. To avoid this, we can define risk to reduce buying power and synthesize a margin account.
Tune in to learn more, with a live Q&A as well!
Brett Goldberg & Chris O'Brien are the Founders and Co-CEOs of TickPick, a secondary event ticket marketplace with a no-fees approach. The company does not charge any fees for buyers, which sets it apart from its competitors who charge steep transaction fees. It also leverages its algorithms to look at the price/value ratio for tickets to offer value grading for buyers to get the optimal experience for their money.
Brett Goldberg & Chris O'Brien are the Founders and Co-CEOs of TickPick, a secondary event ticket marketplace with a no-fees approach. The company does not charge any fees for buyers, which sets it apart from its competitors who charge steep transaction fees. It also leverages its algorithms to look at the price/value ratio for tickets to offer value grading for buyers to get the optimal experience for their money.
Only 3 months into this year, and we have already seen some incredible things play out in the markets.
Whether it’s the major indices entering correction territory, the prices of commodities surging, or inflation reaching the highest level this century, the year has not been short of action. There’s been more than enough volatility in the market, even for the most active options traders.
Since we are just beyond the first major “checkpoint” of the year – triple witching – let’s take a look at how the markets have shaped up so far.
Join Tom and Tony to see how this year has been so far!
Only 3 months into this year, and we have already seen some incredible things play out in the markets.
Whether it’s the major indices entering correction territory, the prices of commodities surging, or inflation reaching the highest level this century, the year has not been short of action. There’s been more than enough volatility in the market, even for the most active options traders.
Since we are just beyond the first major “checkpoint” of the year – triple witching – let’s take a look at how the markets have shaped up so far.
Join Tom and Tony to see how this year has been so far!
In the world of behavioral economics, an interesting phenomenon exists that is referred to as ambiguity aversion. Similar to risk aversion, ambiguity aversion is the prevalence of investors to avoid situations with unknown risk - so much so that they will choose inferior payout structures, in extreme cases.
As tastytraders, this unique look into human nature illustrates again how the tastytrade philosophy is safe for many, many years to come.
In the world of behavioral economics, an interesting phenomenon exists that is referred to as ambiguity aversion. Similar to risk aversion, ambiguity aversion is the prevalence of investors to avoid situations with unknown risk - so much so that they will choose inferior payout structures, in extreme cases.
As tastytraders, this unique look into human nature illustrates again how the tastytrade philosophy is safe for many, many years to come.
Understanding how to evaluate and manage risk is essential when trading. Today Tom and Tony consider ways to assess outstanding risk, and discuss actions to take to help keep it under control.
Understanding how to evaluate and manage risk is essential when trading. Today Tom and Tony consider ways to assess outstanding risk, and discuss actions to take to help keep it under control.
When you’re dealing with limited capital, it can be challenging to find trading opportunities - especially those within the undefined-risk category. However, if you focus on lower-priced stocks, you will effectively be able to use any of the undefined-risk strategies you see us use because stock price is the primary factor in determining buying power. In our portfolio, we put this idea to practice with naked strategies in both UBER and EEM.Volatility Trading: How to Trade During Volatile Markets
When you’re dealing with limited capital, it can be challenging to find trading opportunities - especially those within the undefined-risk category. However, if you focus on lower-priced stocks, you will effectively be able to use any of the undefined-risk strategies you see us use because stock price is the primary factor in determining buying power. In our portfolio, we put this idea to practice with naked strategies in both UBER and EEM.Volatility Trading: How to Trade During Volatile Markets
IV across all markets has dropped around 33% on average. Although your typical position will have around a third less risk, it will also carry much less premium. This does NOT mean we need to scale up to compensate for that… the end goal of size should be based on keeping a tolerable level of risk, and accepting whatever return that happens to bring.
IV across all markets has dropped around 33% on average. Although your typical position will have around a third less risk, it will also carry much less premium. This does NOT mean we need to scale up to compensate for that… the end goal of size should be based on keeping a tolerable level of risk, and accepting whatever return that happens to bring.
Inverted yield curves do not come alone very often, but the difference between 2 Year and 10 Year Treasury Yields is showing that an inversion could be near. Our experienced futures traders show you what an inverted yield curve looks like, and then they give you the tools to trade it based on whether you think yields will or won't go inverted. You can access any part of the US Treasury yield curve in a small, standard, and simple fashion using Small futures.
Inverted yield curves do not come alone very often, but the difference between 2 Year and 10 Year Treasury Yields is showing that an inversion could be near. Our experienced futures traders show you what an inverted yield curve looks like, and then they give you the tools to trade it based on whether you think yields will or won't go inverted. You can access any part of the US Treasury yield curve in a small, standard, and simple fashion using Small futures.
Inverted strangles are a result of defending a regular strangle, where the put ends up above the call strike. The goal is still for the stock price to land between the strikes, and Mike takes a look at how rolling these out in time allows us to manipulte the strikes today!
Live Q&A as well!
Inverted strangles are a result of defending a regular strangle, where the put ends up above the call strike. The goal is still for the stock price to land between the strikes, and Mike takes a look at how rolling these out in time allows us to manipulte the strikes today!
Live Q&A as well!
盈利概率和成功率两个概念听上去非常类似，但是他们两者之间存在着本质上的区别。简单地说盈利概率是一个对还未发生事件的预测，而成功率是对已经发生事件的总结。收看这期节目，让我们来了解他们之间具体的区别和应用。
Probability of Profit (AKA POP) and Success Rate sounds similar to many people. However, they are fundamentally different. POP predicts a future event that hasn’t happened yet, but Success Rate analyzes the previous events. To know more about these two concepts and their applications in trading, tune in to this episode.
Theoretically and practically, selling an ITM put is equivalent to selling covered calls on stock you own. In this segment, we are using “equivalent” to refer to the risk and return of the strategy, or how it performs over time. There may be some marginal differences between these strategies when it comes to management and capital usage.
Theoretically and practically, selling an ITM put is equivalent to selling covered calls on stock you own. In this segment, we are using “equivalent” to refer to the risk and return of the strategy, or how it performs over time. There may be some marginal differences between these strategies when it comes to management and capital usage.
When looking at correlation between equity markets and IV, we see a strong negative correlation which means that they move opposite. In fact, SPY and its IV are one of the most negatively correlated products on the market. On a percentage basis, VIX (SPY IV) is about 5 times more volatile than the percentage move in SPY.
When looking at correlation between equity markets and IV, we see a strong negative correlation which means that they move opposite. In fact, SPY and its IV are one of the most negatively correlated products on the market. On a percentage basis, VIX (SPY IV) is about 5 times more volatile than the percentage move in SPY.
We released tastytrade's backtester, lookback, a few months back -- and since then we've been hard at work making improvements. We've worked on the layout plus additional features. Michael Rechenthin (aka, Dr. Data), the man who always wears a tie, is going to provide a walk-through of the platform.
Explore lookback
We released tastytrade's backtester, lookback, a few months back -- and since then we've been hard at work making improvements. We've worked on the layout plus additional features. Michael Rechenthin (aka, Dr. Data), the man who always wears a tie, is going to provide a walk-through of the platform.
Explore lookback
Katie joins Kayla and Errol today to discuss trading options on futures. Futures trade 23 hours of the day making them a desirable product for people that cannot trade regular market hours. Errol and Kayla trade a micro futures contract which is more fitting for their account size rather than the standard futures contract.
Katie joins Kayla and Errol today to discuss trading options on futures. Futures trade 23 hours of the day making them a desirable product for people that cannot trade regular market hours. Errol and Kayla trade a micro futures contract which is more fitting for their account size rather than the standard futures contract.
When earnings are a few weeks away, it can be more challenging to find new trades. While earnings trades continue to give us opportunities, we typically don’t like to trade them until the day of the announcement. So in these situations, you can always choose shorter durations that don’t include the earnings date, or you can simply stick with indexes to avoid earnings altogether.
On the YouTube Livestream, we always answer as many questions as we can!
When earnings are a few weeks away, it can be more challenging to find new trades. While earnings trades continue to give us opportunities, we typically don’t like to trade them until the day of the announcement. So in these situations, you can always choose shorter durations that don’t include the earnings date, or you can simply stick with indexes to avoid earnings altogether.
On the YouTube Livestream, we always answer as many questions as we can!
Pete and James take a look at interest rate futures and discuss two ways traders can express an opinion on shorter term interest rates. They discuss 2-Year and 5-Year treasury curve futures and how they can be utilized to reduce risk will trading an opinion on the spread between those rates. Next they discussed how traders can utilize Eurodollar futures to trade expectations on 90 day interest rates.
Pete and James take a look at interest rate futures and discuss two ways traders can express an opinion on shorter term interest rates. They discuss 2-Year and 5-Year treasury curve futures and how they can be utilized to reduce risk will trading an opinion on the spread between those rates. Next they discussed how traders can utilize Eurodollar futures to trade expectations on 90 day interest rates.
Trade size mechanics are essential to ensuring your account P/L isn't moving overweight to one position or another. Diversification is great, but if one position is ten times the size of another then its effect can be futile. Try setting an approximate risk/reward per position, and use the buying power required on a futures trade to equate that amount across asset classes.
Trade size mechanics are essential to ensuring your account P/L isn't moving overweight to one position or another. Diversification is great, but if one position is ten times the size of another then its effect can be futile. Try setting an approximate risk/reward per position, and use the buying power required on a futures trade to equate that amount across asset classes.
Katie and Mike share their Thursday Trade idea as the market continues to digest geopolitical moves and the recent FOMC announcement. Mikey has his eyes on FedEx for earnings, and Katie is looking to short the rally in Crude Oil and 2 Year notes! Discover their full setups and reasoning in today's show!
Katie and Mike share their Thursday Trade idea as the market continues to digest geopolitical moves and the recent FOMC announcement. Mikey has his eyes on FedEx for earnings, and Katie is looking to short the rally in Crude Oil and 2 Year notes! Discover their full setups and reasoning in today's show!
Frank joins Liz and Jenny and they talk interest rates and yield curves. They look at various trade ideas using small exchange products. Do you believe the curve will steepen or flatten? Here are trades for both points of view.
Frank joins Liz and Jenny and they talk interest rates and yield curves. They look at various trade ideas using small exchange products. Do you believe the curve will steepen or flatten? Here are trades for both points of view.
Jeff Joseph, editorial director and publisher of Luckbox Magazine, joins Tom and Tony from this year's South by Southwest (SXSW) Conference to discuss the cult of personality in today's hype-themed issue of luckbox, titled HYPE, SIGNAL & NOISE.
The issue embodies everything "hype" in the 2021 and 2022 headlines. Tesla, meme stocks, Peloton, cryptocurrency, the Metaverse, the Rock, Kanye West, money manager Cathie Wood, and more. Tastytrade's very own Vonetta Logan even makes a guest appearance in an article about Peloton. Check it out.
Jeff Joseph, editorial director and publisher of Luckbox Magazine, joins Tom and Tony from this year's South by Southwest (SXSW) Conference to discuss the cult of personality in today's hype-themed issue of luckbox, titled HYPE, SIGNAL & NOISE.
The issue embodies everything "hype" in the 2021 and 2022 headlines. Tesla, meme stocks, Peloton, cryptocurrency, the Metaverse, the Rock, Kanye West, money manager Cathie Wood, and more. Tastytrade's very own Vonetta Logan even makes a guest appearance in an article about Peloton. Check it out.
Since we know that implied volatility (IV) tends to overstate realized volatility, approximately 75% of the time in the S&P, we sell options to get an “edge” from this overstatement.At tasty, we often focus on implied volatility as the basis of whether there is opportunity for an underlying. When implied volatility is as high as it is currently, it’s pretty easy to find attractive trades. However, at some point, volatility will contract, and we will be left looking for trades.Implied volatility is forward looking and historical volatility is backward looking, but what if we compare the spread between these two statistics? Can it help us find more trades? Do trades perform better when the spread is narrow or wider?Join Tom and Tony to find out!
Since we know that implied volatility (IV) tends to overstate realized volatility, approximately 75% of the time in the S&P, we sell options to get an “edge” from this overstatement.At tasty, we often focus on implied volatility as the basis of whether there is opportunity for an underlying. When implied volatility is as high as it is currently, it’s pretty easy to find attractive trades. However, at some point, volatility will contract, and we will be left looking for trades.Implied volatility is forward looking and historical volatility is backward looking, but what if we compare the spread between these two statistics? Can it help us find more trades? Do trades perform better when the spread is narrow or wider?Join Tom and Tony to find out!
Spreads are an essential part of trading. They are the building blocks of many options strategies and serve as a useful way to reduce risk. Join Tom and Tony today as they cover all types of spreads and help to explain how to trade them as a strategy.
Spreads are an essential part of trading. They are the building blocks of many options strategies and serve as a useful way to reduce risk. Join Tom and Tony today as they cover all types of spreads and help to explain how to trade them as a strategy.
Kayla and Errol discuss how to find a technology product to trade using the tastytrade watchlist! Errol places a bullish put spread in Apple ($AAPL). Additional products they looked at were /STIX (tech futures) and QQQ (a tech ETF). Kayla also goes over her trade in $RBLX and updates E on what happened this week!
Kayla and Errol discuss how to find a technology product to trade using the tastytrade watchlist! Errol places a bullish put spread in Apple ($AAPL). Additional products they looked at were /STIX (tech futures) and QQQ (a tech ETF). Kayla also goes over her trade in $RBLX and updates E on what happened this week!
When we create money based on future expectations of value, we create risk. The risk is baked into the equation. But when the risk is greater than anyone anticipated, models fail and bad things can happen. Are European banks in danger because of the amount of Russian stock they’ve accepted as collateral? Tom and Dylan discuss this and more.
When we create money based on future expectations of value, we create risk. The risk is baked into the equation. But when the risk is greater than anyone anticipated, models fail and bad things can happen. Are European banks in danger because of the amount of Russian stock they’ve accepted as collateral? Tom and Dylan discuss this and more.
The Fed is raising rates for the first time in four years and it was arguably the third most important headline as frantic buying in Chinese stocks propped up global markets. Add to the madness that oil is receding and volatility is abating and you have a rather large setup for upside movement. Watch Engineering the Trade as Jermal discusses all of this and more!
The Fed is raising rates for the first time in four years and it was arguably the third most important headline as frantic buying in Chinese stocks propped up global markets. Add to the madness that oil is receding and volatility is abating and you have a rather large setup for upside movement. Watch Engineering the Trade as Jermal discusses all of this and more!
Trading the Canadian dollar against the Australian dollar is popular with traders around the world. One reason for its popularity is the extent of information available on the economic and political factors of each country, any of which could influence the currency pair.Join Pete and Jermal as they explain how you can do this using futures products for both.
Trading the Canadian dollar against the Australian dollar is popular with traders around the world. One reason for its popularity is the extent of information available on the economic and political factors of each country, any of which could influence the currency pair.Join Pete and Jermal as they explain how you can do this using futures products for both.
The two experienced futures traders start by focusing their attention on where the most direct trading opportunity lies - in what's next for the Fed, not what happens today. Katie helps illuminate this idea by pointing out that futures have already priced in many rate hikes for the next few months, so one rate hike today is unlikely to shake markets. That said, what the FOMC is projected to do next will almost definitely move interest rates, metals, currencies, and more. Follow Katie and Frank as they set up their trading levels ahead of the FOMC with the inclination to scalp around this big event.
The two experienced futures traders start by focusing their attention on where the most direct trading opportunity lies - in what's next for the Fed, not what happens today. Katie helps illuminate this idea by pointing out that futures have already priced in many rate hikes for the next few months, so one rate hike today is unlikely to shake markets. That said, what the FOMC is projected to do next will almost definitely move interest rates, metals, currencies, and more. Follow Katie and Frank as they set up their trading levels ahead of the FOMC with the inclination to scalp around this big event.
Credit spreads lack defensive maneuvers because we can't roll ITM credit spreads for a credit out in time. Today the tastytrade crew explains how we can roll out in time for a credit if the spread is OTM, and they offer ways to manipulate ITM spreads in worst-case scenarios for a shot at profitability, with added risk.
Tune in to learn more with a live Q&A session as well!
Credit spreads lack defensive maneuvers because we can't roll ITM credit spreads for a credit out in time. Today the tastytrade crew explains how we can roll out in time for a credit if the spread is OTM, and they offer ways to manipulate ITM spreads in worst-case scenarios for a shot at profitability, with added risk.
Tune in to learn more with a live Q&A session as well!
Live tweets on the show! The tweets range from trade ideas to Big Al's reviews. Liz and Jenny also manage the account ahead of the Fed meeting.
Live tweets on the show! The tweets range from trade ideas to Big Al's reviews. Liz and Jenny also manage the account ahead of the Fed meeting.
Filemon Schöffer is the Co-founder of Hubs, formerly known as 3D Hubs, which is an online manufacturing platform that provides engineers with on-demand access to a global network of premium manufacturing services. The company was founded in 2013 in Amsterdam and was acquired by Protolabs in early 2021. To date, they have produced over 7 million parts. Services include CNC machining, 3Dprinting, injection molding, and sheet metal fabrication. Filemon is also the author of The 3D Printing Handbook.
Filemon Schöffer is the Co-founder of Hubs, formerly known as 3D Hubs, which is an online manufacturing platform that provides engineers with on-demand access to a global network of premium manufacturing services. The company was founded in 2013 in Amsterdam and was acquired by Protolabs in early 2021. To date, they have produced over 7 million parts. Services include CNC machining, 3Dprinting, injection molding, and sheet metal fabrication. Filemon is also the author of The 3D Printing Handbook.
When the market does unusual things, people often expect it to return to its old behavior. Many trading strategies based on this assumption go under the banner of "mean reversion," but that is often confused with the statistical fact of "regression to the mean." Today, Jacob joins Tom and Tony to untangle these topics, examine what sort of reversions we can actually expect to happen and which would violate the efficient market hypothesis, and identify what aspects of high IV actually make it a good opportunity for tastytraders.
When the market does unusual things, people often expect it to return to its old behavior. Many trading strategies based on this assumption go under the banner of "mean reversion," but that is often confused with the statistical fact of "regression to the mean." Today, Jacob joins Tom and Tony to untangle these topics, examine what sort of reversions we can actually expect to happen and which would violate the efficient market hypothesis, and identify what aspects of high IV actually make it a good opportunity for tastytraders.
Viewers write in with a ticker symbol, an assumption, and a time frame and Tony and Tom create a high probability trade. They try to focus on the capital efficiency of each trade.
Viewers write in with a ticker symbol, an assumption, and a time frame and Tony and Tom create a high probability trade. They try to focus on the capital efficiency of each trade.
FOMC days do not make much of a difference to tastytraders because we trade over a longer timeframe (45 DTE), and the only volatility that is observed due to the meeting is in the first hour.If any argument is to be made about the day-to-day interest rate volatility on FOMC days, it is actually lower than any marker day.
FOMC days do not make much of a difference to tastytraders because we trade over a longer timeframe (45 DTE), and the only volatility that is observed due to the meeting is in the first hour.If any argument is to be made about the day-to-day interest rate volatility on FOMC days, it is actually lower than any marker day.
Mike discusses a short put and why it is a solid trade for beginners. The short put strategy is an effective way to acquire 100 shares while offsetting trading costs. Mike covers this concept with Kay and E and explains how it can operate as a covered call even if the market moves against you.
Mike discusses a short put and why it is a solid trade for beginners. The short put strategy is an effective way to acquire 100 shares while offsetting trading costs. Mike covers this concept with Kay and E and explains how it can operate as a covered call even if the market moves against you.
The VIX has closed above $30 for 11 straight days. Oil has lost $30 in a week. Two-year interest rates have moved 146 basis points in six months. All of these moves have contributed to our current state of affairs.Tune in to hear why these products are giving you clues to where the market is headed.
The VIX has closed above $30 for 11 straight days. Oil has lost $30 in a week. Two-year interest rates have moved 146 basis points in six months. All of these moves have contributed to our current state of affairs.Tune in to hear why these products are giving you clues to where the market is headed.
It’s usually best to stick with your mechanics and consistently maintain your profit targets. This can help you achieve smoother results, and reduce the number of emotionally-charged decisions you make. However, there are certainly times when it’s warranted to consider deviating from your original plan - such as at 21 DTE in the cycle, just before a binary event, Binary Events and the Odds of a 2020 Market Correction - luckbox magazine or in the event that your portfolio risk has changed significantly.Check out my latest blog article! Volatility Trading: How to Trade During Volatile Markets
It’s usually best to stick with your mechanics and consistently maintain your profit targets. This can help you achieve smoother results, and reduce the number of emotionally-charged decisions you make. However, there are certainly times when it’s warranted to consider deviating from your original plan - such as at 21 DTE in the cycle, just before a binary event, Binary Events and the Odds of a 2020 Market Correction - luckbox magazine or in the event that your portfolio risk has changed significantly.Check out my latest blog article! Volatility Trading: How to Trade During Volatile Markets
Buy the rumor, sell the news refers to the potential profit to be made in buying a market that is rumored to move higher only to sell it when the actual news occurs with the idea that it has already been priced in. Jermal and Frank break down the rumor and news phases for short-term interest rates and how they relate to the coming FOMC event. The guys give their take as to what the Fed will do in the short-term as well as where they think rates could be headed in the coming months.
Buy the rumor, sell the news refers to the potential profit to be made in buying a market that is rumored to move higher only to sell it when the actual news occurs with the idea that it has already been priced in. Jermal and Frank break down the rumor and news phases for short-term interest rates and how they relate to the coming FOMC event. The guys give their take as to what the Fed will do in the short-term as well as where they think rates could be headed in the coming months.
Correlation measures how frequently two products are moving in the same direction day after day, and the crypto space has some surprising information - namely RIOT, MARA & MSTR being the strongest correlated products to BTC, where AMD and NVDA are much more correlated to the NASDAQ!
Tune in to learn more with a live Q&A session as well!
Correlation measures how frequently two products are moving in the same direction day after day, and the crypto space has some surprising information - namely RIOT, MARA & MSTR being the strongest correlated products to BTC, where AMD and NVDA are much more correlated to the NASDAQ!
Tune in to learn more with a live Q&A session as well!
Liz and Jenny walk through what to do when one leg of a defined risk spread is assigned.
Liz and Jenny walk through what to do when one leg of a defined risk spread is assigned.
Tomorrow the FOMC will make their announcement on interest rates. This causes heightened market volatility in the shorter duration options, also known as backwardation. Liz, Jenny, and Anton discuss possible strategies to take advantage of the increase in short term volatility.
Tomorrow the FOMC will make their announcement on interest rates. This causes heightened market volatility in the shorter duration options, also known as backwardation. Liz, Jenny, and Anton discuss possible strategies to take advantage of the increase in short term volatility.
Running a regression for short and long term rates over the last year, we found that for every 10 ticks that short term rates move, long term rates moved only 6 to 9. When we see less long term rate sensitivity, we tend to see a flattening yield curve, and heightened implied volatility for interest rate products.Usually long term rates are more sensitive to short term rate movement, so this last year was an anomaly, which is conducive with the rest of the market.
Running a regression for short and long term rates over the last year, we found that for every 10 ticks that short term rates move, long term rates moved only 6 to 9. When we see less long term rate sensitivity, we tend to see a flattening yield curve, and heightened implied volatility for interest rate products.Usually long term rates are more sensitive to short term rate movement, so this last year was an anomaly, which is conducive with the rest of the market.
Implied volatility (IV) is a direct measure of option prices and provides option sellers with a measure of opportunity for profits. But high IV periods also tend to be the most dynamic times for the market. How can tastytraders do their best to profit from these atypical conditions without making unfounded assumptions?
Today, Tom and Tony dive into the data surrounding the periods of highest IV from the past 17 years and see how long they lasted and how the market moved during those times.
Implied volatility (IV) is a direct measure of option prices and provides option sellers with a measure of opportunity for profits. But high IV periods also tend to be the most dynamic times for the market. How can tastytraders do their best to profit from these atypical conditions without making unfounded assumptions?
Today, Tom and Tony dive into the data surrounding the periods of highest IV from the past 17 years and see how long they lasted and how the market moved during those times.
Victor joins Tom and Tony to discuss the secret to the longevity of marriage, worrying events that are impacting the market such as the decline of globalization, supply chain redundancy, energy dependence, the rise of inflation domestically and abroad, continued geopolitical conflict, and how these worrying events are impacting the market environment. The yield curve is inverting, and the credit spread is widening.
How do traders successfully navigate these choppy and murky waters? Tune in to find out.
Victor joins Tom and Tony to discuss the secret to the longevity of marriage, worrying events that are impacting the market such as the decline of globalization, supply chain redundancy, energy dependence, the rise of inflation domestically and abroad, continued geopolitical conflict, and how these worrying events are impacting the market environment. The yield curve is inverting, and the credit spread is widening.
How do traders successfully navigate these choppy and murky waters? Tune in to find out.
The industrial sector includes companies that produce machinery, equipment, and supplies used in construction, manufacturing and related services. Among the most important manufacturing industries are aircraft, automobiles, chemicals, clothing, computers and consumer electronics - you get the picture. Kayla and Errol discuss why UPS, Boeing, and Honeywell are all examples of industrial products that can be traded on the stock market. They decide to place a put spread on one of the companies that meet the tastytrade criteria.
The industrial sector includes companies that produce machinery, equipment, and supplies used in construction, manufacturing and related services. Among the most important manufacturing industries are aircraft, automobiles, chemicals, clothing, computers and consumer electronics - you get the picture. Kayla and Errol discuss why UPS, Boeing, and Honeywell are all examples of industrial products that can be traded on the stock market. They decide to place a put spread on one of the companies that meet the tastytrade criteria.
Crude oil had a 10% range within the first hour of trading. Bond yields are raging ahead of the FOMC meeting, which is fine, but they're leaving small cap stocks in the dust. Finally, the $VIX backwardation streak is reaching new heights.Watch Engineering the Trade as Jermal dives into these things and more!
As tastytraders, we’re always on the hunt for a theoretical edge with our trades. Finding these situations gives us an advantage and tilts the odds in our favor. But just as we saw this morning with Tom and Tony, there might be times where what is theoretically optimal isn’t practically possible. Still as active traders, we have to find a way to balance what is practically feasible with what is theoretically best.Check out my latest blog article! Volatility Trading: How to Trade During Volatile Markets
As tastytraders, we’re always on the hunt for a theoretical edge with our trades. Finding these situations gives us an advantage and tilts the odds in our favor. But just as we saw this morning with Tom and Tony, there might be times where what is theoretically optimal isn’t practically possible. Still as active traders, we have to find a way to balance what is practically feasible with what is theoretically best.Check out my latest blog article! Volatility Trading: How to Trade During Volatile Markets
Healthy volume? Check. Liquid markets? Check. Events on the horizon? Check. Markets are active ahead of the FOMC meeting on Wednesday and quadruple witching on Friday.To start the week, as always, Pete and Jermal walk you through the futures to watch and talk about some sample trades.
Healthy volume? Check. Liquid markets? Check. Events on the horizon? Check. Markets are active ahead of the FOMC meeting on Wednesday and quadruple witching on Friday.To start the week, as always, Pete and Jermal walk you through the futures to watch and talk about some sample trades.
Crude oil can be on of the most volatile markets everyday traders have access to, so it's important to understand the commodity's movement. Follow our futures dudes Mike and Frank as they look at more than two decades of historical data on crude oil prices in search of an answer to high how the prices will go. The guys ultimately conclude that $145 is a decent benchmark for how high it can go in the short term, but they understand it could move higher and resolve to making small, short-term trades based on the market's great price action.
Crude oil can be on of the most volatile markets everyday traders have access to, so it's important to understand the commodity's movement. Follow our futures dudes Mike and Frank as they look at more than two decades of historical data on crude oil prices in search of an answer to high how the prices will go. The guys ultimately conclude that $145 is a decent benchmark for how high it can go in the short term, but they understand it could move higher and resolve to making small, short-term trades based on the market's great price action.
Understanding strong positive and negative correlations can help us find pairs trades, or help us hedge against positions we're already in.
Tune in to learn more with a live Q&A session as well!
Understanding strong positive and negative correlations can help us find pairs trades, or help us hedge against positions we're already in.
Tune in to learn more with a live Q&A session as well!
Liz and Jenny use the Alpha Boost segment trade ideas to compare and contrast all 3 types of lizard trades. Jade lizardBIG lizard,Spiked lizard
Liz and Jenny use the Alpha Boost segment trade ideas to compare and contrast all 3 types of lizard trades. Jade lizardBIG lizard,Spiked lizard
Liz and Jenny take live tweets on trade ideas. The resettable short puts in $RIVN and have a discussion around selling a call spread against a broken winged butterfly.
Liz and Jenny take live tweets on trade ideas. The resettable short puts in $RIVN and have a discussion around selling a call spread against a broken winged butterfly.
Steve Dolinsky has won 13 James Beards Awards for journalism. He is the food reporter for NBC 5 Chicago. Before that he was the Hungry Hound, reviewing restaurants for more than 17 years on ABC Chicago. But he has a passion for pizza - currently, he also has a pizza podcast, has authored two books on pizza, and is the founder of Pizza City Tours, and now he's launching the inaugural Pizza City Festival in Chicago on July 23rd & 24th. There will be 40 pizzerias serving some of the most famous pizzas from around the world.
stevedolinsky.com, pizzacityusa.com, = Pizza City Tourspizzacityfest.com
Steve Dolinsky has won 13 James Beards Awards for journalism. He is the food reporter for NBC 5 Chicago. Before that he was the Hungry Hound, reviewing restaurants for more than 17 years on ABC Chicago. But he has a passion for pizza - currently, he also has a pizza podcast, has authored two books on pizza, and is the founder of Pizza City Tours, and now he's launching the inaugural Pizza City Festival in Chicago on July 23rd & 24th. There will be 40 pizzerias serving some of the most famous pizzas from around the world.
stevedolinsky.com, pizzacityusa.com, = Pizza City Tourspizzacityfest.com
We focus many of our studies on probability of profit (POP), the average profit, and the risk associated with trading short options.Risk, return, and probability are inherently related, meaning that you cannot have high probability, high returns, and limited risk.This is best seen when looking at expectancy, so let’s take a look at some popular tasty strategies to see what to expect when trading.Expectancy is equal to: (win rate x average size of win) + (loss rate x average size of loss)
We focus many of our studies on probability of profit (POP), the average profit, and the risk associated with trading short options.Risk, return, and probability are inherently related, meaning that you cannot have high probability, high returns, and limited risk.This is best seen when looking at expectancy, so let’s take a look at some popular tasty strategies to see what to expect when trading.Expectancy is equal to: (win rate x average size of win) + (loss rate x average size of loss)
Probabilities and payoffs are at the heart of what we do every day as tastytraders. Inside the world of statistics and probabilities, there is a paradoxical game called, The St. Petersburg Paradox - a game that effectively offers you an infinitely large expected payoff, even if done so in a rather counterintuitive way. Nevertheless, even though the theoretical payoff might be infinite, the practical application for us as traders is far more tangible.Check out my latest blog article! Volatility Trading: How to Trade During Volatile Markets
Probabilities and payoffs are at the heart of what we do every day as tastytraders. Inside the world of statistics and probabilities, there is a paradoxical game called, The St. Petersburg Paradox - a game that effectively offers you an infinitely large expected payoff, even if done so in a rather counterintuitive way. Nevertheless, even though the theoretical payoff might be infinite, the practical application for us as traders is far more tangible.Check out my latest blog article! Volatility Trading: How to Trade During Volatile Markets
With extensive research, we have found that an active approach to managing trades early can improve both probability and profitability. X(around 21 days to expiration) as opposed to holding contracts to expiration.
With extensive research, we have found that an active approach to managing trades early can improve both probability and profitability. X(around 21 days to expiration) as opposed to holding contracts to expiration.
Volatility has been elevated for nearly a month due to the conflict in Europe involving Russia and the Ukraine. VIX futures have been in backwardation for 18 consecutive days - a streak that ranks #5 of all time. Will there ever be a reprieve from this high volatility environment?Join Jermal and his guest, James Blakeway, as they talk about what to expect next in the market.
Volatility has been elevated for nearly a month due to the conflict in Europe involving Russia and the Ukraine. VIX futures have been in backwardation for 18 consecutive days - a streak that ranks #5 of all time. Will there ever be a reprieve from this high volatility environment?Join Jermal and his guest, James Blakeway, as they talk about what to expect next in the market.
As premium sellers in the options market, we obviously want our positions to remain out-of-the-money. By staying OTM, the positive theta on these positions leads into premium decay, and eventually, profitability. But one thing that is interesting to note is that all OTM positions are not created equally - the moneyness of the position plays a big role in determining just how long it will take to reach a given profit target.Check out my latest blog article, Volatility Trading: How Traders Can Take Advantage of Volatile Markets.
As premium sellers in the options market, we obviously want our positions to remain out-of-the-money. By staying OTM, the positive theta on these positions leads into premium decay, and eventually, profitability. But one thing that is interesting to note is that all OTM positions are not created equally - the moneyness of the position plays a big role in determining just how long it will take to reach a given profit target.Check out my latest blog article, Volatility Trading: How Traders Can Take Advantage of Volatile Markets.
Frank and Liz discuss strangle management in GLD and also take a look at the options on the /SPRE contracts and the reduced buying power these options provide.
Frank and Liz discuss strangle management in GLD and also take a look at the options on the /SPRE contracts and the reduced buying power these options provide.
Day trading can present a unique, diversified strategy to your portfolio, whereby you are opening and closing short-term opportunities in the same trading day. The futures dudes show you how to use standard deviations on futures to access smaller-than-traditional products so that you might try your first day trade in a comfortable way.
Find out if day trading is for you by applying standard deviations to 10 Year Treasury Yield futures.
Day trading can present a unique, diversified strategy to your portfolio, whereby you are opening and closing short-term opportunities in the same trading day. The futures dudes show you how to use standard deviations on futures to access smaller-than-traditional products so that you might try your first day trade in a comfortable way.
Find out if day trading is for you by applying standard deviations to 10 Year Treasury Yield futures.
Correlations can get close to 1.00 or -1.00, and it's important that we have a strong correlation if we are pairs trading.
Today the tastytrade crew walks through a number of popular products in different sectors and they look at correlation numbers across the board - strong positive correlations exist, but there are pretty weak negative correlations for those that are negatively correlated.
Tune in to learn more with a live Q&A as well!
Correlations can get close to 1.00 or -1.00, and it's important that we have a strong correlation if we are pairs trading.
Today the tastytrade crew walks through a number of popular products in different sectors and they look at correlation numbers across the board - strong positive correlations exist, but there are pretty weak negative correlations for those that are negatively correlated.
Tune in to learn more with a live Q&A as well!
As sector rotation out of technology and into energy continues, Liz and Frank show you how to put on a stock sector spread trade. Spreads take advantage of market relationships whereby the trader takes offsetting positions in highly correlated markets to play their potential for divergence or convergence.
Today, Frank looks at buying tech stocks and selling energy stocks using small futures in an attempt to profit from two diverging markets coming back into line.
As sector rotation out of technology and into energy continues, Liz and Frank show you how to put on a stock sector spread trade. Spreads take advantage of market relationships whereby the trader takes offsetting positions in highly correlated markets to play their potential for divergence or convergence.
Today, Frank looks at buying tech stocks and selling energy stocks using small futures in an attempt to profit from two diverging markets coming back into line.
Most markets have seen their IVs increase in the last few months, but some IVs and skew went up more than others, meaning the increase in position risk has not been the same.
Comparing crude and equities, the premium in crude options has nearly tripled compared to a modest increase in equity indexes...this means the same size position in crude carries three times greater risk as it did in October.
Equity indexes, however, carry only 30% more risk for the same size, even though their IVs have gone up proportionately to something like crude. It is skew, underlying price, and IV that determine the overall premium and risk level of an option strategy.
Most markets have seen their IVs increase in the last few months, but some IVs and skew went up more than others, meaning the increase in position risk has not been the same.
Comparing crude and equities, the premium in crude options has nearly tripled compared to a modest increase in equity indexes...this means the same size position in crude carries three times greater risk as it did in October.
Equity indexes, however, carry only 30% more risk for the same size, even though their IVs have gone up proportionately to something like crude. It is skew, underlying price, and IV that determine the overall premium and risk level of an option strategy.
Submit your trade ideas to Tom and Victor and discover if they get the tastytrade seal of approval.
Submit your trade ideas to Tom and Victor and discover if they get the tastytrade seal of approval.
通过预期波动的计算方法，我们可以得到在某个时间段内任何一个股票可能会移动的范围。但是这个预测出来的范围值到底有多精确呢？如果我们已经有了一个想要预测的范围，股票落入或者突破这个范围的概率 又有多少，该如何计算？这期节目我们会结合之前所学过的使用delta的方法来计算落入预测波动范围的概率。
Traders can get the expected move range through the standard calculation explained previously. So how accurate could these numbers be? And if we already knew our expected range, what’s the probability of the stock price landing inside or outside it? In this segment, we explain the relationship between expected move and probability of profit and how to calculate it.
This Week in Stocks, Tom, Victor and Jermal reflect on the $27 range in crude oil, wheat going from trading limit up to limit down and the Fed’s next move.
This Week in Stocks, Tom, Victor and Jermal reflect on the $27 range in crude oil, wheat going from trading limit up to limit down and the Fed’s next move.
Inflation is running rampant and the recent run up in commodities have exacerbated the issue. Additionally, there have been no signs of relief in the Russia/Ukraine conflict which is keeping stocks on their lows and volatility on its highs. All of this is occurring as the Fed is looking to raise rates for the first time in four years. Whatever they decide is certain to affect the $VIX one way or another.Tune is as Jermal discusses this and more on Engineering the Trade.
Inflation is running rampant and the recent run up in commodities have exacerbated the issue. Additionally, there have been no signs of relief in the Russia/Ukraine conflict which is keeping stocks on their lows and volatility on its highs. All of this is occurring as the Fed is looking to raise rates for the first time in four years. Whatever they decide is certain to affect the $VIX one way or another.Tune is as Jermal discusses this and more on Engineering the Trade.
A neat little trick that you can use with implied volatility in the markets is known as the “rule of 16”. Essentially, you can take the IV of any stock, divide it by 16, and the result will give you a rough approximation of the anticipated daily range in the stock. With this calculation, you can quickly gauge just how big of a range a specific stock, or the market as a whole, is expecting for the upcoming trading day.
A neat little trick that you can use with implied volatility in the markets is known as the “rule of 16”. Essentially, you can take the IV of any stock, divide it by 16, and the result will give you a rough approximation of the anticipated daily range in the stock. With this calculation, you can quickly gauge just how big of a range a specific stock, or the market as a whole, is expecting for the upcoming trading day.
Pete and James look at gold and silver as a potential pairs trade, especially in times of heightened market volatility. Their deep dive covers recent moves in gold and silver, as well as a look at longer-term trends of correlation between the two metals and with equities. They explain how the ratio is calculated utilizing the current prices of gold and silver. Lastly they look at products available to traders and explain how to use the micro gold and silver futures to place a pairs trade.
Pete and James look at gold and silver as a potential pairs trade, especially in times of heightened market volatility. Their deep dive covers recent moves in gold and silver, as well as a look at longer-term trends of correlation between the two metals and with equities. They explain how the ratio is calculated utilizing the current prices of gold and silver. Lastly they look at products available to traders and explain how to use the micro gold and silver futures to place a pairs trade.
Outliers are usually defined as an event that occurs less than 5% of the time. Futures traders Errol and Frank give their definitions of an outlier before using statistics to back them up.
Given that 3-standard-deviation moves happen less than 1 day in 100, the dudes use this benchmark as a place to start. Next, they examine how frequently the moves actually occurred for crude oil, and they conclude with that metrics on what tended to happen next.
Outliers are usually defined as an event that occurs less than 5% of the time. Futures traders Errol and Frank give their definitions of an outlier before using statistics to back them up.
Given that 3-standard-deviation moves happen less than 1 day in 100, the dudes use this benchmark as a place to start. Next, they examine how frequently the moves actually occurred for crude oil, and they conclude with that metrics on what tended to happen next.
The tastytrade crew shares their trade ideas for the day! Mike sells an iron condor in DOCU for earnings
Nick sells a put spread in SMH
Katie sells an iron condor in /GC
Tune in to learn more and a live Q&A as well!
The tastytrade crew shares their trade ideas for the day! Mike sells an iron condor in DOCU for earnings
Nick sells a put spread in SMH
Katie sells an iron condor in /GC
Tune in to learn more and a live Q&A as well!
With the broad markets seeing heightened volatility, investors are reassessing their portfolios to determine the best way to hedge existing positions.The traditional market hedges, such as gold and bonds, have shown their effectiveness over time, but with new digital assets, some are beginning to wonder how they compare existing hedges.Can investors and traders utilize digital assets, such as Bitcoin, to hedge their portfolios in a similar manner to assets like gold?Join Tom and Tony to find out!
With the broad markets seeing heightened volatility, investors are reassessing their portfolios to determine the best way to hedge existing positions.The traditional market hedges, such as gold and bonds, have shown their effectiveness over time, but with new digital assets, some are beginning to wonder how they compare existing hedges.Can investors and traders utilize digital assets, such as Bitcoin, to hedge their portfolios in a similar manner to assets like gold?Join Tom and Tony to find out!
A Poor Man’s Covered Option (PMCO) is a strategy similar to covered stock but requires less capital to execute. Calls or Puts are used depending on our directional assumptions.
Join Tom and Tony today as they explain both the logic and mechanics behind this trade.
A Poor Man’s Covered Option (PMCO) is a strategy similar to covered stock but requires less capital to execute. Calls or Puts are used depending on our directional assumptions.
Join Tom and Tony today as they explain both the logic and mechanics behind this trade.
No one hated Michael Jordan for mastering basketball, other than the teams he dominated. Citadel did something similar in market making. They figured out how to make money buying retail customer orders. In the process, they reduced trading costs for retail traders. They improved markets. But they made the cardinal sin of making too much money and once you do that, we have a tendency to believe you must be doing something nefarious; like how Air Jordan’s made Michael jump higher. Maybe instead of looking for what’s wrong with payment for order flow, we should be applauding how ingenuity is benefitting market participants. This and more on this week’s episode.
No one hated Michael Jordan for mastering basketball, other than the teams he dominated. Citadel did something similar in market making. They figured out how to make money buying retail customer orders. In the process, they reduced trading costs for retail traders. They improved markets. But they made the cardinal sin of making too much money and once you do that, we have a tendency to believe you must be doing something nefarious; like how Air Jordan’s made Michael jump higher. Maybe instead of looking for what’s wrong with payment for order flow, we should be applauding how ingenuity is benefitting market participants. This and more on this week’s episode.
After two days of sheer market insanity, including Monday's furious plunge and Tuesday's rollercoaster session, U.S. equity futures jumped after 4 straight days of losses. Adding to matters, European stocks closed strong on optimistic thoughts for Ukraine to join NATO. Still fears persist of high inflation and global stagflation as a result of soaring commodity prices, sparking a furious Delta squeeze...to the downside. Watch Engineering the Trade to find out more!
After two days of sheer market insanity, including Monday's furious plunge and Tuesday's rollercoaster session, U.S. equity futures jumped after 4 straight days of losses. Adding to matters, European stocks closed strong on optimistic thoughts for Ukraine to join NATO. Still fears persist of high inflation and global stagflation as a result of soaring commodity prices, sparking a furious Delta squeeze...to the downside. Watch Engineering the Trade to find out more!
IV Rank measures where the current IV ranks relative to the high and low IV for the past year. IV Percentile measures the percent of days over the last year where IV was below the current IV value.
Join Pete and Jermal as the go over the differences between these two metrics.
IV Rank measures where the current IV ranks relative to the high and low IV for the past year. IV Percentile measures the percent of days over the last year where IV was below the current IV value.
Join Pete and Jermal as the go over the differences between these two metrics.
Standard deviations and implied volatilities can be the great equalizer between big and small markets or assets of different classes.
Katie and Frank show you how to apply some simple statistics to everything from crude oil to interest rates to find which might pose the biggest outlier and thus most opportunity. Find out from our futures traders just how you might filter through several volatile markets to find the most intriguing trade.
Standard deviations and implied volatilities can be the great equalizer between big and small markets or assets of different classes.
Katie and Frank show you how to apply some simple statistics to everything from crude oil to interest rates to find which might pose the biggest outlier and thus most opportunity. Find out from our futures traders just how you might filter through several volatile markets to find the most intriguing trade.
After rolling neutral options trades like strangles and straddles, you will end up with a net credit overall. Today, the tastytrade crew explains how you can use this information to determine if you have a good chance at profitability in your current expiration cycle, or if you need a higher credit. They also discuss the decision to lean directional, to eliminate risk on one side of the market and improve probabilities that way.
Tune in to learn more with a live Q&A session!
After rolling neutral options trades like strangles and straddles, you will end up with a net credit overall. Today, the tastytrade crew explains how you can use this information to determine if you have a good chance at profitability in your current expiration cycle, or if you need a higher credit. They also discuss the decision to lean directional, to eliminate risk on one side of the market and improve probabilities that way.
Tune in to learn more with a live Q&A session!
Brownian motion provides financial theorists with the basic building block for understanding prices evolving under market forces.
Today, Jacob join Tom and Tony to discuss some of the finer points of Brownian paths. We will use their symmetries to discuss the frequency of maxima and minima along the path, even if they are not identifiable at the time.
Brownian motion provides financial theorists with the basic building block for understanding prices evolving under market forces.
Today, Jacob join Tom and Tony to discuss some of the finer points of Brownian paths. We will use their symmetries to discuss the frequency of maxima and minima along the path, even if they are not identifiable at the time.
In today's episode of What's Your Assumption, Tom and Tony set up three trade ideas in INTC, AMZN, and BBY.
In today's episode of What's Your Assumption, Tom and Tony set up three trade ideas in INTC, AMZN, and BBY.
January was a month where realized volatility was larger than IV anticipated at the beginning of the month. This happens around 1 out of every 6 months on average.From February into March, IV has remained consistently high, and the realized volatility we experienced is actually on par with what IV was anticipating.
January was a month where realized volatility was larger than IV anticipated at the beginning of the month. This happens around 1 out of every 6 months on average.From February into March, IV has remained consistently high, and the realized volatility we experienced is actually on par with what IV was anticipating.
Jermal joins Errol and Kayla in Today's Assignment to trade an energy product. Kayla trades a skewed condor in CVX.
Jermal joins Errol and Kayla in Today's Assignment to trade an energy product. Kayla trades a skewed condor in CVX.
The United States is banning the import of Russian oil in another attempt to cut ties with the country. The rise of gold to the $2,000 level shows once again that fear is back in vogue. How did cryptocurrencies go from being esoteric to regulated?
Watch Engineering the Trade to find out!
The United States is banning the import of Russian oil in another attempt to cut ties with the country. The rise of gold to the $2,000 level shows once again that fear is back in vogue. How did cryptocurrencies go from being esoteric to regulated?
Watch Engineering the Trade to find out!
Every balanced portfolio is going to have both defined-risk positions and undefined-risk positions. Defined-risk positions give the undeniable peace of mind of knowing the worst-case scenario on trade entry, while undefined-risk positions obviously leave the worst-case outcome as an unknown over its life. Interestingly though, it is actually undefined-risk strategies that provide smoother results over time, whereas defined-risk strategies can experience a good bit of volatility with their performance.Check out my latest blog article!
Every balanced portfolio is going to have both defined-risk positions and undefined-risk positions. Defined-risk positions give the undeniable peace of mind of knowing the worst-case scenario on trade entry, while undefined-risk positions obviously leave the worst-case outcome as an unknown over its life. Interestingly though, it is actually undefined-risk strategies that provide smoother results over time, whereas defined-risk strategies can experience a good bit of volatility with their performance.Check out my latest blog article!
Inflation rates and ECB Announcements are on the horizon! Chris Vecchio and Pete Mulmat explain how these binary events might impact treasuries and currencies in the short and long term.
Plus, get the latest update on the US Treasury Yield Curve, and what's happening to the relationship between /ES and /NQ.
Inflation rates and ECB Announcements are on the horizon! Chris Vecchio and Pete Mulmat explain how these binary events might impact treasuries and currencies in the short and long term.
Plus, get the latest update on the US Treasury Yield Curve, and what's happening to the relationship between /ES and /NQ.
Call options can be appended to long outright positions or used on their own all in a manner that can greatly reduce your P/L swings. The futures dudes dive into gold and silver to show you how to create both long and short strategies that are smaller than outright futures positions in metals.
Follow Jermal and Frank as they display three variations of three distinct strategies that carry differing amounts or risk and potential profit.
Call options can be appended to long outright positions or used on their own all in a manner that can greatly reduce your P/L swings. The futures dudes dive into gold and silver to show you how to create both long and short strategies that are smaller than outright futures positions in metals.
Follow Jermal and Frank as they display three variations of three distinct strategies that carry differing amounts or risk and potential profit.
Short puts that move ITM can be defended in one of two ways without adding risk - we can roll the short put out in time to add extrinsic value to our trade and reduce our cost basis against our strike, or we can give up some of that credit to move our strike further OTM to reduce where we take on intrinsic value risk.
The guys cover this topic today with a live Q&A session that includes a few real examples too!
Tune in to learn more!
Short puts that move ITM can be defended in one of two ways without adding risk - we can roll the short put out in time to add extrinsic value to our trade and reduce our cost basis against our strike, or we can give up some of that credit to move our strike further OTM to reduce where we take on intrinsic value risk.
The guys cover this topic today with a live Q&A session that includes a few real examples too!
Tune in to learn more!
Implied volatility becomes much higher for near term options when markets become volatile. This means near term options become increasingly more risky to trade compared to our normal 45 DTE cycles. The most important concept to understand when IV is expanded is to trade smaller sizes if you go to near term options.
Implied volatility becomes much higher for near term options when markets become volatile. This means near term options become increasingly more risky to trade compared to our normal 45 DTE cycles. The most important concept to understand when IV is expanded is to trade smaller sizes if you go to near term options.
In today's episode Tom and Tony talk about wheat, which currently has the highest implied volatility of any commodity trading, including oil.
In today's episode Tom and Tony talk about wheat, which currently has the highest implied volatility of any commodity trading, including oil.
Really eventful weeks can be large shocks to the market, but contrarian tastytraders often view them as opportunities. Today, Tom and Tony explore the data to see how long lasting the effects from these extreme moves can be.
Really eventful weeks can be large shocks to the market, but contrarian tastytraders often view them as opportunities. Today, Tom and Tony explore the data to see how long lasting the effects from these extreme moves can be.
Imagine a chef that has never tasted their own food or a sports announcer who has never played the sport.
With politicians being decisions makers and the media being spokespersons for the world of finance, does it make sense for them to hold such power when they do not have experience participating in the markets?
Tom, Tony, and Victor discuss if it is a greater conflict of interest to have politicians who are involved in the market but influence audiences to make certain moves or no experience but make laws when they don't have a great understanding of the market?
Imagine a chef that has never tasted their own food or a sports announcer who has never played the sport.
With politicians being decisions makers and the media being spokespersons for the world of finance, does it make sense for them to hold such power when they do not have experience participating in the markets?
Tom, Tony, and Victor discuss if it is a greater conflict of interest to have politicians who are involved in the market but influence audiences to make certain moves or no experience but make laws when they don't have a great understanding of the market?
Mike Evans is the Co-founder of GrubHub. He left the company in 2014. Three years later he started Fixer, which is a right-now handyman service, bringing a modern tech approach to homeowners, apartment dwellers, and landlords.
He graduated from MIT with degrees in Computer Science & Electrical Engineering. Mike will be releasing his new book, Hangry: A Startup Journey, next May in 2023. The book is a memoir about starting GrubHub.
Mike Evans is the Co-founder of GrubHub. He left the company in 2014. Three years later he started Fixer, which is a right-now handyman service, bringing a modern tech approach to homeowners, apartment dwellers, and landlords.
He graduated from MIT with degrees in Computer Science & Electrical Engineering. Mike will be releasing his new book, Hangry: A Startup Journey, next May in 2023. The book is a memoir about starting GrubHub.
While we have entered into a new week, it begins with the same problems as commodities continue to climb and equity markets resume their decline. How will this "groundhog day" go on? Join Engineering the Trade to find out.
While we have entered into a new week, it begins with the same problems as commodities continue to climb and equity markets resume their decline. How will this "groundhog day" go on? Join Engineering the Trade to find out.
Implied Volatility Rank, or IVR, is a key metric that we like to use at tastytrade. As IVR looks at the previous year’s range of implied volatility, it gives us a sense for where IV currently sits, relative to itself over the last year. Most times, IVR is inside a range from 0-100, but there are times when IVR can actually exceed 100. Today, we learn exactly what it means when that happens.
Implied Volatility Rank, or IVR, is a key metric that we like to use at tastytrade. As IVR looks at the previous year’s range of implied volatility, it gives us a sense for where IV currently sits, relative to itself over the last year. Most times, IVR is inside a range from 0-100, but there are times when IVR can actually exceed 100. Today, we learn exactly what it means when that happens.
While volume is healthy, futures liquidity has been rather thin since Sunday night's open due to a lack of good news from Europe. Additionally, market action has remained the same as commodity futures remain bid while equity futures do the opposite.
To start the week, as always, Pete and Jermal walk you through the futures to watch and talk about some sample trades.
While volume is healthy, futures liquidity has been rather thin since Sunday night's open due to a lack of good news from Europe. Additionally, market action has remained the same as commodity futures remain bid while equity futures do the opposite.
To start the week, as always, Pete and Jermal walk you through the futures to watch and talk about some sample trades.
Day trading implies opening and closing a position in the same day, which can help to reduce overnight risk in your portfolio while giving you a unique opportunity outside the passive buy-and-hold. Our experienced derivatives traders show you how to decrease the potential size and risk in your day trades by selling put or call options instead of buying or selling a full futures contract or share amount.
Check out how you can take advantage of day trade opportunities with options all while avoiding pattern day trading regulations by using futures options.
Day trading implies opening and closing a position in the same day, which can help to reduce overnight risk in your portfolio while giving you a unique opportunity outside the passive buy-and-hold. Our experienced derivatives traders show you how to decrease the potential size and risk in your day trades by selling put or call options instead of buying or selling a full futures contract or share amount.
Check out how you can take advantage of day trade opportunities with options all while avoiding pattern day trading regulations by using futures options.
When it comes to oil products, there are a few that stand out - XOP, XLE, USO, and OIH. It's important to understand how these products are constructed so that you get the exposure you're looking for - tune in to learn more with a live Q&A as well!
When it comes to oil products, there are a few that stand out - XOP, XLE, USO, and OIH. It's important to understand how these products are constructed so that you get the exposure you're looking for - tune in to learn more with a live Q&A as well!
Diversification is a popular method in which an investor can decrease their overall portfolio risk. However, when the markets move down quickly and volatility increases, we’ve noticed that the correlations across nearly all asset classes converge to 1.In the past month, we’ve seen the major indices fall as tensions in Ukraine have ramped up. Compared to the start of the COVID pandemic, how do the correlations across asset classes look now?Join Tom and Tony to find out!
Diversification is a popular method in which an investor can decrease their overall portfolio risk. However, when the markets move down quickly and volatility increases, we’ve noticed that the correlations across nearly all asset classes converge to 1.In the past month, we’ve seen the major indices fall as tensions in Ukraine have ramped up. Compared to the start of the COVID pandemic, how do the correlations across asset classes look now?Join Tom and Tony to find out!
Even though we all use the same core principles as tastytraders, there will always be differences from one trader to the next in how we analyze a given situation. While much of this difference stems from varying degrees of risk aversion and utility functions, it’s also important to recognize that two different traders might relate to prospect theory in two different ways.
As a result, when volatility is high and we want to allocate more capital, a more risk-averse trader with a lower certainty equivalent might choose to allocate less than a less risk-averse trader with a higher certainty equivalent.
Even though we all use the same core principles as tastytraders, there will always be differences from one trader to the next in how we analyze a given situation. While much of this difference stems from varying degrees of risk aversion and utility functions, it’s also important to recognize that two different traders might relate to prospect theory in two different ways.
As a result, when volatility is high and we want to allocate more capital, a more risk-averse trader with a lower certainty equivalent might choose to allocate less than a less risk-averse trader with a higher certainty equivalent.
Most trades and strategies we implement are based on the current implied volatility rank (IVR). It is in fact the first metric shown on the tastyworks platform.
Join Tom and Tony today as they reveal how to use this important trading metric.
Most trades and strategies we implement are based on the current implied volatility rank (IVR). It is in fact the first metric shown on the tastyworks platform.
Join Tom and Tony today as they reveal how to use this important trading metric.
Tom joins Engineering the Trade as a special guest. He shares his views on the current commodity super cycle and his method for trading it. He also compares and contrasts the equity volatility regimes of 1991, 2008, 2020 and 2022.
$VIX, $SPY, $CF, $MOS, $CL_F
Tom joins Engineering the Trade as a special guest. He shares his views on the current commodity super cycle and his method for trading it. He also compares and contrasts the equity volatility regimes of 1991, 2008, 2020 and 2022.
$VIX, $SPY, $CF, $MOS, $CL_F
Intrinsic Value and Extrinsic are fundamental to the options market, and they are equally as foundational to every active trader. Understanding when options have only extrinsic value or both intrinsic value and extrinsic value is something that routinely shows up in all corners of the market. Additionally, rolling positions can certainly alter the extrinsic value of the position, or both the intrinsic and extrinsic value of the position. To illustrate all of these relationships, we look at a few different options in TWTR.
Intrinsic Value and Extrinsic are fundamental to the options market, and they are equally as foundational to every active trader. Understanding when options have only extrinsic value or both intrinsic value and extrinsic value is something that routinely shows up in all corners of the market. Additionally, rolling positions can certainly alter the extrinsic value of the position, or both the intrinsic and extrinsic value of the position. To illustrate all of these relationships, we look at a few different options in TWTR.
Tony joins Nick for a Bat vs Bat reunion, talking markets and some classic trader confessions from BAT's days on the floor!
Tony joins Nick for a Bat vs Bat reunion, talking markets and some classic trader confessions from BAT's days on the floor!
Usually when volatility goes up in one main asset class, other assets become more volatile as well. Since major asset IVs are currently in the top 10% historically, putting on small trades is imperative since the risk in most assets has gone up for the same size trade.When trading higher IV products like crude oil, keep in mind that the “risk” of an asset does not increase linearly when there is a doubling of IV. An IV of 40% is much “riskier” than trading two contracts in a stock with an IV of 20%. This is because outlier options skew the IV number heavily.
Usually when volatility goes up in one main asset class, other assets become more volatile as well. Since major asset IVs are currently in the top 10% historically, putting on small trades is imperative since the risk in most assets has gone up for the same size trade.When trading higher IV products like crude oil, keep in mind that the “risk” of an asset does not increase linearly when there is a doubling of IV. An IV of 40% is much “riskier” than trading two contracts in a stock with an IV of 20%. This is because outlier options skew the IV number heavily.
预期波动的标准计算公式当中有三个变量：股价，隐含波动率（IV）和到期日。但是在实际应用当中哪个变量更为重要呢，原因又是什么？这期节目，我们将探讨几个变量是如何影响预期波动的值，尤其是和隐含波动率（IV）的关系。
There are three factors to determine the Expected Move: Stock Price, Implied Volatility, and DTE. But which one plays a more important role in real trading and why? In this segment, we discuss how these factors move the Expected Move number and the relationship with IV.
Is it possible that the shunning the world's 11th largest economy (Russia) could come back to bite us? VIX futures have been in backwardation for 3 weeks and the VIX index has closed over 30 for 4 out of 4 days. Will the VIX make it 5 for 5? Tom, Tony and Jermal discuss these things and more. Tune in!
Is it possible that the shunning the world's 11th largest economy (Russia) could come back to bite us? VIX futures have been in backwardation for 3 weeks and the VIX index has closed over 30 for 4 out of 4 days. Will the VIX make it 5 for 5? Tom, Tony and Jermal discuss these things and more. Tune in!
Fresh on the heels of yesterday's Broken Wing Butterfly assignment, Kay and E recruit Tony Battista to help them further understand this options trading strategy. Find out what to keep in mind when looking for and trading Broken Wing Butterflies.
Fresh on the heels of yesterday's Broken Wing Butterfly assignment, Kay and E recruit Tony Battista to help them further understand this options trading strategy. Find out what to keep in mind when looking for and trading Broken Wing Butterflies.
Over the last several weeks there has been a huge surge in energy prices which is affecting stocks, volatility and bond yields. Crude oil futures have had a $10 trading range today and an average range of $8 for the week. Equities have ebbed and flowed with each tick as they zig while oil zags and vice versa.Tune into Engineering the Trade as Jermal points out these correlations and more.
Over the last several weeks there has been a huge surge in energy prices which is affecting stocks, volatility and bond yields. Crude oil futures have had a $10 trading range today and an average range of $8 for the week. Equities have ebbed and flowed with each tick as they zig while oil zags and vice versa.Tune into Engineering the Trade as Jermal points out these correlations and more.
For today’s show, we’re having our first ever Live Q&A session with the YouTube audience! As we’re streaming the Thursday program out on our YouTube channel, where we’re able to interact with the viewers like never before. And while there are always some incredible questions that come in, today we wanted to dedicate the entire show to answering as many as we can.
For today’s show, we’re having our first ever Live Q&A session with the YouTube audience! As we’re streaming the Thursday program out on our YouTube channel, where we’re able to interact with the viewers like never before. And while there are always some incredible questions that come in, today we wanted to dedicate the entire show to answering as many as we can.
Pete and James take a look at credits and premiums on futures options and how traders can understand and calculate them. The pair take a deep dive on put options in various futures options and explain how the multiplier is used to calculate the premium from the given credit amount. They look at some live examples in the Nasdaq (/NQ), S&P 500 (/ES) and Crude Oil (/CL).
Pete and James take a look at credits and premiums on futures options and how traders can understand and calculate them. The pair take a deep dive on put options in various futures options and explain how the multiplier is used to calculate the premium from the given credit amount. They look at some live examples in the Nasdaq (/NQ), S&P 500 (/ES) and Crude Oil (/CL).
Calendar spreads in futures can help create a slightly modified directional trade on commodities that are smaller in size. They differ from options calendar spreads, but the main concept tracks - offsetting positions on the same market taken in different expirations. Find out how you can set up a futures calendar spread in crude oil, and you can add the strategy to your portfolio if you are looking for a smaller way to get long or short crude.
Calendar spreads in futures can help create a slightly modified directional trade on commodities that are smaller in size. They differ from options calendar spreads, but the main concept tracks - offsetting positions on the same market taken in different expirations. Find out how you can set up a futures calendar spread in crude oil, and you can add the strategy to your portfolio if you are looking for a smaller way to get long or short crude.
The tastytrade crew shares their trade ideas today!
Mike sells a put spread in COST for earnings
Katie buys a call spread in SPOT
Nick sells a put spread in BA
Tune in for a live Q&A as well!
The tastytrade crew shares their trade ideas today!
Mike sells a put spread in COST for earnings
Katie buys a call spread in SPOT
Nick sells a put spread in BA
Tune in for a live Q&A as well!
Frank joins Liz and Jenny as they discuss the capital efficiency of /SMO calendar spreads in this crazy environment.
Frank joins Liz and Jenny as they discuss the capital efficiency of /SMO calendar spreads in this crazy environment.
In the markets, a correction is defined as a decline of 10% of more in the price of an asset since its most recent peak.In the past three months, we’ve seen the S&P, Nasdaq, and Russell all enter into correction territory with the largest decline that we have seen since the start of COVID.How long do these type of corrections normally last and what can we expect next? Join Tom and Tony to find out!
In the markets, a correction is defined as a decline of 10% of more in the price of an asset since its most recent peak.In the past three months, we’ve seen the S&P, Nasdaq, and Russell all enter into correction territory with the largest decline that we have seen since the start of COVID.How long do these type of corrections normally last and what can we expect next? Join Tom and Tony to find out!
Validated mathematically as a way to balance risk, we use the concept of diversification as part of a logical approach to trading.Join Tom and Tony today as they cover the importance of diversification in a small account and ways to place trades that can reduce the volatility of P/L of risk and reward.
Validated mathematically as a way to balance risk, we use the concept of diversification as part of a logical approach to trading.Join Tom and Tony today as they cover the importance of diversification in a small account and ways to place trades that can reduce the volatility of P/L of risk and reward.
Today is all about removing risk to one side! For this assignment, Kay and E have to identify a candidate for a Broken Wing Butterfly in a product that demonstrates Put Skew. Broken Wing Butterflies are useful to eliminate risk to one side of a stock.
Put skew means that equidistant puts are trading richer than their equidistant calls from the current stock price.
Find out if they succeeded and learn how they use tastytrade tools to help them learn more about this strategy.
Russia’s invasion of Ukraine has created a new source of uncertainty and volatility. It is a very fluid situation as it is both potentially an inflationary risk as well as a drag on growth. Tune in as Jermal breaks down all of the relevant issues.
Russia’s invasion of Ukraine has created a new source of uncertainty and volatility. It is a very fluid situation as it is both potentially an inflationary risk as well as a drag on growth. Tune in as Jermal breaks down all of the relevant issues.
Russia’s invasion of Ukraine has created a humanitarian crisis. No country wants to risk a nuclear holocaust by getting militarily involved. Instead, a nuclear financial bomb was dropped on Russia in the form of sanctions. By imposing those sanctions, crypto has been a beneficiary as its proven itself immune from geopolitics. What does this mean for the future? Did Russia ultimately give crypto the catalyst needed to move from speculative asset to currency? If so, will that also mean future sanctions will prove difficult to impose if crypto supplants the U.S. dollar as the world’s reserve currency? This and more on this week’s podcast.
Russia’s invasion of Ukraine has created a humanitarian crisis. No country wants to risk a nuclear holocaust by getting militarily involved. Instead, a nuclear financial bomb was dropped on Russia in the form of sanctions. By imposing those sanctions, crypto has been a beneficiary as its proven itself immune from geopolitics. What does this mean for the future? Did Russia ultimately give crypto the catalyst needed to move from speculative asset to currency? If so, will that also mean future sanctions will prove difficult to impose if crypto supplants the U.S. dollar as the world’s reserve currency? This and more on this week’s podcast.
The kind of leverage that futures trading allows is simply unmatched in the trading world. At a time when markets are making large moves during and outside of normal trading hours, futures can be a great tool but it is important to understand how this also can magnify gains as well as losses.Join Pete and Jermal as they discuss the concepts of margin and leverage in futures trading.
The kind of leverage that futures trading allows is simply unmatched in the trading world. At a time when markets are making large moves during and outside of normal trading hours, futures can be a great tool but it is important to understand how this also can magnify gains as well as losses.Join Pete and Jermal as they discuss the concepts of margin and leverage in futures trading.
Calendar spreads can offer smaller, diversified exposure to markets like crude oil and wheat by simply taking offsetting positions in two distinct expirations of the same underlying market. Katie speaks to her experience with calendar spreads and how they can be used to take advantage of the potential opportunity in a volatile market while reducing the amount of risk involved. Find out if futures calendar spreads would be a good addition to your portfolio as crude oil continues to move with high volatility.
Calendar spreads can offer smaller, diversified exposure to markets like crude oil and wheat by simply taking offsetting positions in two distinct expirations of the same underlying market. Katie speaks to her experience with calendar spreads and how they can be used to take advantage of the potential opportunity in a volatile market while reducing the amount of risk involved. Find out if futures calendar spreads would be a good addition to your portfolio as crude oil continues to move with high volatility.
James joins Nick on the show to talk through the Alpha Boost trade ideas and the process behind the scenes that goes into generating these ideas. Check out all the trade ideas in the Financials!
James joins Nick on the show to talk through the Alpha Boost trade ideas and the process behind the scenes that goes into generating these ideas. Check out all the trade ideas in the Financials!
JETWAY is a natural, uplifting, ultra-premium wine seltzer, that is taking California and hopefully soon the rest of the country by storm. JETWAY currently consists of two flavors - A Sauvignon Blanc and a Rose of Syrah & Cabernet Sauvignon. Both have no artificial flavors or added sugars while containing 100% natural ingredients including elderflower, yerba mate, Fijian ginger, and yuzu. The company's founder is Albert Hammond Jr. He is the lead guitarist for The Strokes. He can also be described as a serial entrepreneur having started 3 businesses since 2009.
JETWAY is a natural, uplifting, ultra-premium wine seltzer, that is taking California and hopefully soon the rest of the country by storm. JETWAY currently consists of two flavors - A Sauvignon Blanc and a Rose of Syrah & Cabernet Sauvignon. Both have no artificial flavors or added sugars while containing 100% natural ingredients including elderflower, yerba mate, Fijian ginger, and yuzu. The company's founder is Albert Hammond Jr. He is the lead guitarist for The Strokes. He can also be described as a serial entrepreneur having started 3 businesses since 2009.
VXX can be a mysterious underlying. Neither stock nor ETF, it is one of the most active tickers on the market. Today, Jacob joins Tom and Tony to break down VXX. What it is, how it works, and why traders use it.
VXX can be a mysterious underlying. Neither stock nor ETF, it is one of the most active tickers on the market. Today, Jacob joins Tom and Tony to break down VXX. What it is, how it works, and why traders use it.
Buying Power Reduction (BPR) is the capital required to place and hold an options trade.At any given time, we generally recommend allocating between 25% and 50% of BPR towards your options trades, with that amount varying depending on the underlying’s implied volatility (IV).With the VIX currently above 30, we decided to look into how BPR differs across various VIX levels and how that could impact your allocation now. Join Tom and Tony to find out!
Buying Power Reduction (BPR) is the capital required to place and hold an options trade.At any given time, we generally recommend allocating between 25% and 50% of BPR towards your options trades, with that amount varying depending on the underlying’s implied volatility (IV).With the VIX currently above 30, we decided to look into how BPR differs across various VIX levels and how that could impact your allocation now. Join Tom and Tony to find out!
There is fear in the air and it is playing out in grand fashion due to the Russian invasion of Ukraine. Risk assets such as oil and wheat are at multi-year highs. Gold is seeing far OTM bullish trades and treasury yields are in a free fall, which is casting doubt on the size of the March rate hike. Join Jermal as he takes you on a journey through the current market madness and debates whether or not Bitcoin's recent uptick is a sign of nefarious activity. $JPM, $LMT, $SLV, $GLD, $ZN_F, $BTC, $CL_F, $USO,
There is fear in the air and it is playing out in grand fashion due to the Russian invasion of Ukraine. Risk assets such as oil and wheat are at multi-year highs. Gold is seeing far OTM bullish trades and treasury yields are in a free fall, which is casting doubt on the size of the March rate hike. Join Jermal as he takes you on a journey through the current market madness and debates whether or not Bitcoin's recent uptick is a sign of nefarious activity. $JPM, $LMT, $SLV, $GLD, $ZN_F, $BTC, $CL_F, $USO,
One of the most important things we look for in a stock to trade is strong liquidity, and in an option chain, we always have to choose between monthly cycles and weekly cycles. With our focus normally on the more liquid monthly cycles, we naturally give ourselves the best chance to be filled at fair prices. But there are still times when a trade inside of a weekly cycle can make sense, as we see today with our Short Put Spread in DIA.
One of the most important things we look for in a stock to trade is strong liquidity, and in an option chain, we always have to choose between monthly cycles and weekly cycles. With our focus normally on the more liquid monthly cycles, we naturally give ourselves the best chance to be filled at fair prices. But there are still times when a trade inside of a weekly cycle can make sense, as we see today with our Short Put Spread in DIA.
Chris and Pete showcase movement in equity pairs, the yield curve, and commodities on the move as the Russia-Ukraine crisis continues. Plus, get their outlook on unemployment and what's ahead for the Fed.
Chris and Pete showcase movement in equity pairs, the yield curve, and commodities on the move as the Russia-Ukraine crisis continues. Plus, get their outlook on unemployment and what's ahead for the Fed.
The futures dudes are back to reduce risk in their trading as volatility increases across the asset class board. Jermal and Frank lead off with a discussion of selling equity futures as a partial hedge for your stock portfolio, and they then move on to using Small Metals futures and options to diversify exposure and get smaller.
The guys conclude by talking pairs trades and how they might help your portfolio have a distinct take on markets like equities by strategizing around the spreads rather than the outrights.
The futures dudes are back to reduce risk in their trading as volatility increases across the asset class board. Jermal and Frank lead off with a discussion of selling equity futures as a partial hedge for your stock portfolio, and they then move on to using Small Metals futures and options to diversify exposure and get smaller.
The guys conclude by talking pairs trades and how they might help your portfolio have a distinct take on markets like equities by strategizing around the spreads rather than the outrights.
The tastytrade crew explores the tastyworks platform and they answer live questions from the YouTube chat as well!
The tastytrade crew explores the tastyworks platform and they answer live questions from the YouTube chat as well!
Although last week’s market move came as a bit of a shock to people, in reality, there is almost never any consistent follow-through in the market when there is a report or event that is supposed to be “good” or “bad”.The market remains unpredictable even when it seems that an event or action would make it move one certain way.
Although last week’s market move came as a bit of a shock to people, in reality, there is almost never any consistent follow-through in the market when there is a report or event that is supposed to be “good” or “bad”.The market remains unpredictable even when it seems that an event or action would make it move one certain way.
Tom and Tony explain what the VIX is, how it differs from a typical underlying, and what that means when it comes to trading VIX options.
Tom and Tony explain what the VIX is, how it differs from a typical underlying, and what that means when it comes to trading VIX options.
Tom and Tony discuss Russian assets and volatility. What does the current state with Russia look like and what does it mean for the markets? Volatility is higher than normal. POP is 20 percent higher today. How do you trade in this environment? What are the gains? Find out.
Tom and Tony discuss Russian assets and volatility. What does the current state with Russia look like and what does it mean for the markets? Volatility is higher than normal. POP is 20 percent higher today. How do you trade in this environment? What are the gains? Find out.
Following in the footsteps of other European countries, the U.S. enacted stiff financial penalties which will significantly limit Russia's ability to use assets to finance its destabilizing activities. As a result, the market is seeing a demand for bonds, gold, oil and select commodities as economic ecosystem is flipped on its head.
Tune in as Jermal shows how this is effecting certain stocks and overall market volatility.
$GLD, $TLT, $BTC, $VIX, $RTX, $QQQ, $DVN, $CCJ
Following in the footsteps of other European countries, the U.S. enacted stiff financial penalties which will significantly limit Russia's ability to use assets to finance its destabilizing activities. As a result, the market is seeing a demand for bonds, gold, oil and select commodities as economic ecosystem is flipped on its head.
Tune in as Jermal shows how this is effecting certain stocks and overall market volatility.
$GLD, $TLT, $BTC, $VIX, $RTX, $QQQ, $DVN, $CCJ
Carlos Antequera immigrated from Bolivia to the U.S. when he was 18-years-old. After having a successful exit with his last company, he is now the Founder & CEO of Novel Growth Partners, a revenue-based financing firm for growing B2B software companies. Novel is based in Kansas City with the goal of providing entrepreneurs with the capital and support needed to maximize their value. They have funded over 50+ companies across a wide variety of verticals in just 3 years.
Carlos Antequera immigrated from Bolivia to the U.S. when he was 18-years-old. After having a successful exit with his last company, he is now the Founder & CEO of Novel Growth Partners, a revenue-based financing firm for growing B2B software companies. Novel is based in Kansas City with the goal of providing entrepreneurs with the capital and support needed to maximize their value. They have funded over 50+ companies across a wide variety of verticals in just 3 years.
During times of extreme uncertainty in the markets, we as tastytraders feel there is an abundance of opportunities available to us. Still, we want to make sure that we allocate additional capital in a way that is prudent and strategic. As a result, it is very important that we are cognizant of individual position size and strategic diversification during times like these.
During times of extreme uncertainty in the markets, we as tastytraders feel there is an abundance of opportunities available to us. Still, we want to make sure that we allocate additional capital in a way that is prudent and strategic. As a result, it is very important that we are cognizant of individual position size and strategic diversification during times like these.
Crude oil has rallied intraday only to reverse course by the close now multiple days in a row amid the ongoing geopolitical conflict. This begs the question for Frank and many traders: can you commit the same strategy multiple times in a row? Are markets "due" for a breakout? See what Frank has to say about such questions, and watch him use historical data to create consistent trade ideas that are founded in concrete statistics.
Crude oil has rallied intraday only to reverse course by the close now multiple days in a row amid the ongoing geopolitical conflict. This begs the question for Frank and many traders: can you commit the same strategy multiple times in a row? Are markets "due" for a breakout? See what Frank has to say about such questions, and watch him use historical data to create consistent trade ideas that are founded in concrete statistics.
Nick walks through the differences between ITM Poor Man's Covered Call positions and OTM long diagonal spreads.
Nick walks through the differences between ITM Poor Man's Covered Call positions and OTM long diagonal spreads.
In mellow markets, implied volatility actually does not exhibit strong negative correlation with equity prices. The stronger negative correlation between SPX and VIX happens when SPX moves greater than 1%.
Holding short delta may provide a hedge when markets start to sell off big since that is when IV and price exhibit their strongest negative correlation.
In mellow markets, implied volatility actually does not exhibit strong negative correlation with equity prices. The stronger negative correlation between SPX and VIX happens when SPX moves greater than 1%.
Holding short delta may provide a hedge when markets start to sell off big since that is when IV and price exhibit their strongest negative correlation.
At tastytrade, we’re always using the Greeks to help our analysis, and most often we rely on the first-order Greeks. Still, the higher-order Greeks can be incredibly helpful in further understanding the risks we are exposed to in our portfolios. Therefore, when it comes to two of the second-order Greeks that we’ve talked about before, Vomma and Charm, which of these two has the potential to do more damage due to an outlier move?
At tastytrade, we’re always using the Greeks to help our analysis, and most often we rely on the first-order Greeks. Still, the higher-order Greeks can be incredibly helpful in further understanding the risks we are exposed to in our portfolios. Therefore, when it comes to two of the second-order Greeks that we’ve talked about before, Vomma and Charm, which of these two has the potential to do more damage due to an outlier move?
To maintain consistency while balancing risk we follow a logical approach to trade decisions. This is done by considering the statistical facts combined with a developed market awareness.
To maintain consistency while balancing risk we follow a logical approach to trade decisions. This is done by considering the statistical facts combined with a developed market awareness.
The multitalented Katie joins Engineering the Trade to discuss how trading changed her life and list off the five products she's watching in this current high volatility environment.
The multitalented Katie joins Engineering the Trade to discuss how trading changed her life and list off the five products she's watching in this current high volatility environment.
As we talked about just yesterday, the best defense against an outlier move is to control your position size on entry. Doing this will allow you to withstand some significant moves against you, without feeling pressured to abandon the tastytrade mechanics.
Today in the portfolio, we see two real-time examples of how to do this: one with our iron condor in DIA, and one with our short strangle in WMT.
As we talked about just yesterday, the best defense against an outlier move is to control your position size on entry. Doing this will allow you to withstand some significant moves against you, without feeling pressured to abandon the tastytrade mechanics.
Today in the portfolio, we see two real-time examples of how to do this: one with our iron condor in DIA, and one with our short strangle in WMT.
When trading futures, the IV on the platform does not necessarily reflect the total portfolio risk taken when putting a futures position on. Anton joins Pete to explain how traders can use positional implied volatility to get a more holistic understanding of their futures trade and the notional value and leverage that go along with it.
When trading futures, the IV on the platform does not necessarily reflect the total portfolio risk taken when putting a futures position on. Anton joins Pete to explain how traders can use positional implied volatility to get a more holistic understanding of their futures trade and the notional value and leverage that go along with it.
Mikey and Frank use the recent outlier in crude oil to display the potential reward and risk to scaling positions with futures. The guys advocate for statistic-based scaling by setting up entries around the standard deviation markers. This gives them a better price average as the market moves outside, but it also means increased risk if the market doesn't come back.
Find out if scaling is for you in this edition of Small Stakes.
Mikey and Frank use the recent outlier in crude oil to display the potential reward and risk to scaling positions with futures. The guys advocate for statistic-based scaling by setting up entries around the standard deviation markers. This gives them a better price average as the market moves outside, but it also means increased risk if the market doesn't come back.
Find out if scaling is for you in this edition of Small Stakes.
Katie Explains how to approach markets and questions to ask yourself when every asset class is moving. Find out what to do with new, existing, and closing positions when volatility expands and intraday ranges widen out.
Katie Explains how to approach markets and questions to ask yourself when every asset class is moving. Find out what to do with new, existing, and closing positions when volatility expands and intraday ranges widen out.
Our very own Frank Kaberna from the Small Exchange joins Liz to discuss the ins and outs of the US dollar, /SPRE, and /SMO
Our very own Frank Kaberna from the Small Exchange joins Liz to discuss the ins and outs of the US dollar, /SPRE, and /SMO
In the majority of our studies, we look at the markets indices and ETFs as the underlyings for our options trades since they have slower movement and no earnings risk.However, in the pursuit of higher volatility, we often find ourselves trading individual stocks. With that comes a variety of risks, such as earnings volatility and liquidity. But, is the size of a company something that we should also consider as a potential risk?Simply put, does the size of a company impact our risk and return when trading strangles?Join Tom and Tony to find out!
In the majority of our studies, we look at the markets indices and ETFs as the underlyings for our options trades since they have slower movement and no earnings risk.However, in the pursuit of higher volatility, we often find ourselves trading individual stocks. With that comes a variety of risks, such as earnings volatility and liquidity. But, is the size of a company something that we should also consider as a potential risk?Simply put, does the size of a company impact our risk and return when trading strangles?Join Tom and Tony to find out!
During a holiday-shortened week for the market, Russia invaded Ukraine leading the VIX to push above 37. Join Tom, Tony and Jermal as they discuss that and more on This Week in Stocks.
During a holiday-shortened week for the market, Russia invaded Ukraine leading the VIX to push above 37. Join Tom, Tony and Jermal as they discuss that and more on This Week in Stocks.
What should traders think about when markets start to swing? Kay and E recruit Katie for the answer.
Tune in as the trio discusses what to do with new, existing, and closing positions during tumultuous trading action. Plus, find out why Katie thinks it's important to keep trade size and emotions in check in any market condition.
What should traders think about when markets start to swing? Kay and E recruit Katie for the answer.
Tune in as the trio discusses what to do with new, existing, and closing positions during tumultuous trading action. Plus, find out why Katie thinks it's important to keep trade size and emotions in check in any market condition.
Russia invaded Ukraine and whether we thought it was going to happen or not, the markets were certainly taken by surprise. What's the best trade going forward? Watch Engineering the Trade to find out!
Russia invaded Ukraine and whether we thought it was going to happen or not, the markets were certainly taken by surprise. What's the best trade going forward? Watch Engineering the Trade to find out!
Without question, the best defense against an outlier move is staying small with your position sizing. By keeping your size in check on order entry, you position yourself to be able to withstand most really big moves against you. This allows you to adjust your positions rationally, and stick to the tastytrade mechanics when your positions are tested.
Without question, the best defense against an outlier move is staying small with your position sizing. By keeping your size in check on order entry, you position yourself to be able to withstand most really big moves against you. This allows you to adjust your positions rationally, and stick to the tastytrade mechanics when your positions are tested.
Pete and James walk through the major swings in today's futures market. Tune in to get their recap and outlook on Crude, Equities, Gold, and more. Plus, get their take on scaling down to smaller sized futures products and liquidity given the tape action.
Pete and James walk through the major swings in today's futures market. Tune in to get their recap and outlook on Crude, Equities, Gold, and more. Plus, get their take on scaling down to smaller sized futures products and liquidity given the tape action.
The guys talk about gold's recent ascent to pandemic highs, and then they cover the different strategies they might commit in order to get short precious metals. While stocks in the metals sector might get the job done, futures and options on futures can give you greater access to more specific risk-reward metrics at lower costs.
Find out how our experienced derivatives traders might optimize their capital in selling a market using futures and options.
The guys talk about gold's recent ascent to pandemic highs, and then they cover the different strategies they might commit in order to get short precious metals. While stocks in the metals sector might get the job done, futures and options on futures can give you greater access to more specific risk-reward metrics at lower costs.
Find out how our experienced derivatives traders might optimize their capital in selling a market using futures and options.
As $SPY is flirting with correction territory, Jermal takes a look at the famed $QQQ-to-$IWM ratio and the $VIX forward curve for clues as to how heightened fear is in the market.
As $SPY is flirting with correction territory, Jermal takes a look at the famed $QQQ-to-$IWM ratio and the $VIX forward curve for clues as to how heightened fear is in the market.
During Covid, volatility futures peaked in the 80s. Today, with Russia on the precipice of invading Ukraine, volatility is 70-75% below those peaks. Does that mean the Russia/Ukraine situation is a lot to do about nothing? Or is the risk just easier to quantify? On this week’s episode, Tom and Dylan discuss the market implications of what’s taking place in Eastern Europe.
During Covid, volatility futures peaked in the 80s. Today, with Russia on the precipice of invading Ukraine, volatility is 70-75% below those peaks. Does that mean the Russia/Ukraine situation is a lot to do about nothing? Or is the risk just easier to quantify? On this week’s episode, Tom and Dylan discuss the market implications of what’s taking place in Eastern Europe.
Pete and Jermal take a look at the relationship between gold and Australian Dollar futures and go over the many trading vehicles that the CME provides for trading both.
Pete and Jermal take a look at the relationship between gold and Australian Dollar futures and go over the many trading vehicles that the CME provides for trading both.
Many view day trading as a risky strategy, but it can actually help to mitigate overnight risk especially for volatile markets like commodities.
Katie gives her take on the potential for investing AND day trading using futures. Then she and Frank give some examples of how opportunity might be greater for a day trader when markets move intraday but don't displace themselves much in the long term.
Find out how much crude oil has moved on an intraday basis in just the last few weeks.
Many view day trading as a risky strategy, but it can actually help to mitigate overnight risk especially for volatile markets like commodities.
Katie gives her take on the potential for investing AND day trading using futures. Then she and Frank give some examples of how opportunity might be greater for a day trader when markets move intraday but don't displace themselves much in the long term.
Find out how much crude oil has moved on an intraday basis in just the last few weeks.
When looking at long-term vs short-term expiration cycles, there is going to be more extrinsic value in the longer-term cycles, but how does that extrinsic value decay?
Today the tastytrade crew explains how short-term expirations have the added possibility of IV% contraction and expansion to a greater degree than long-term expirations, and how long-term options will still ealize price changes based on directional moves.
When looking at long-term vs short-term expiration cycles, there is going to be more extrinsic value in the longer-term cycles, but how does that extrinsic value decay?
Today the tastytrade crew explains how short-term expirations have the added possibility of IV% contraction and expansion to a greater degree than long-term expirations, and how long-term options will still ealize price changes based on directional moves.
Washington Maritime Blue (WMB) is an organization that runs an intensive mentor-based four-month program focused on helping maritime industry startups learn how to scale and grow. Startups receive access to the WMB industry and ocean leaders alongside a global network of mentors and advisors. With a mission to implement Washington State's Strategy for the Blue Economy delivered by Governor Jay Inslee's Maritime Innovation Advisory Council, They are in partnership between industry, public sector, research, and training. Joshua Berger is the Founder & CEO, and Josh Carter is the Program Director of the non-profit accelerator in Washington State.
Washington Maritime Blue (WMB) is an organization that runs an intensive mentor-based four-month program focused on helping maritime industry startups learn how to scale and grow. Startups receive access to the WMB industry and ocean leaders alongside a global network of mentors and advisors. With a mission to implement Washington State's Strategy for the Blue Economy delivered by Governor Jay Inslee's Maritime Innovation Advisory Council, They are in partnership between industry, public sector, research, and training. Joshua Berger is the Founder & CEO, and Josh Carter is the Program Director of the non-profit accelerator in Washington State.
As tastytraders, the probability of profit is perhaps the most important statistic of a trade. But it’s just a probability, sometimes things go unexpectedly.
Today, Jacob joins Tom and Tony to explore the binomial distribution and what it tells us about the importance of a large number of occurrences.
As tastytraders, the probability of profit is perhaps the most important statistic of a trade. But it’s just a probability, sometimes things go unexpectedly.
Today, Jacob joins Tom and Tony to explore the binomial distribution and what it tells us about the importance of a large number of occurrences.
In today's segment of What's Your Assumption, Tom and Tony approve two strangles, an option, and a custom trade.
In today's segment of What's Your Assumption, Tom and Tony approve two strangles, an option, and a custom trade.
Option sellers have been profitable in the long term because they inherently take risk away from option buyers, and option sellers expect to be compensated for this risk transfer. The option seller’s historical long-run profitability does not mean that the market is inefficient.
In exchange for the positive expected profitability given to option sellers, option buyers are met with peace of mind and limited risk for each of their trades.
Option sellers have been profitable in the long term because they inherently take risk away from option buyers, and option sellers expect to be compensated for this risk transfer. The option seller’s historical long-run profitability does not mean that the market is inefficient.
In exchange for the positive expected profitability given to option sellers, option buyers are met with peace of mind and limited risk for each of their trades.
Jermal attempts to make sense of the geopolitical-induced volatility while pointing out how grains, precious metals and oil continue to trade in a circular fashion.
Jermal attempts to make sense of the geopolitical-induced volatility while pointing out how grains, precious metals and oil continue to trade in a circular fashion.
Our standard approach for selling vertical spreads is to choose out-of-the-money strikes. This makes sense because it allows us to take advantage of short premium, while also increasing our probability of profit. But is there ever a time when a short vertical spread with in-the-money strikes should be considered? Yes, and as we see $LOW earnings coming up tomorrow morning, an upcoming earnings announcement can be a great time to use this strategy
Our standard approach for selling vertical spreads is to choose out-of-the-money strikes. This makes sense because it allows us to take advantage of short premium, while also increasing our probability of profit. But is there ever a time when a short vertical spread with in-the-money strikes should be considered? Yes, and as we see $LOW earnings coming up tomorrow morning, an upcoming earnings announcement can be a great time to use this strategy
As futures markets continue to have wide ranges and increase volatility, Chris Vecchio and Pete Mulmat recap what's moving due to geopolitical tensions and highlight upcoming events surrounding European inflation and US interest rates.
As futures markets continue to have wide ranges and increase volatility, Chris Vecchio and Pete Mulmat recap what's moving due to geopolitical tensions and highlight upcoming events surrounding European inflation and US interest rates.
Developing a solid strategy for why you might enter into a day trade is very important, but the story doesn't stop there. Where do you manage your day trades?
Jermal and Frank apply realistic expectations to everything from tech stocks to crude oil using standard deviations. And then they run you through some examples of where they might not only enter a positions but also exit it for a profit or loss.
Developing a solid strategy for why you might enter into a day trade is very important, but the story doesn't stop there. Where do you manage your day trades?
Jermal and Frank apply realistic expectations to everything from tech stocks to crude oil using standard deviations. And then they run you through some examples of where they might not only enter a positions but also exit it for a profit or loss.
When it comes to bearish hedging strategies, we want to ensure that our hedges do not lose delta quickly if there is a big market selloff.
The team explores short stock, short futures, long put zebras, and other options strategies today in SPY, and they discuss why SPY's put skew can help a bearish setup as well.
Tune in to learn more with a live Q&A session as well!
When it comes to bearish hedging strategies, we want to ensure that our hedges do not lose delta quickly if there is a big market selloff.
The team explores short stock, short futures, long put zebras, and other options strategies today in SPY, and they discuss why SPY's put skew can help a bearish setup as well.
Tune in to learn more with a live Q&A session as well!
Anton joins Liz and Jenny and brings a study on correlation. They talk about the difference between a pairs trade and a hedge. They go over the risk of pairs trades based on correlation numbers.
Anton joins Liz and Jenny and brings a study on correlation. They talk about the difference between a pairs trade and a hedge. They go over the risk of pairs trades based on correlation numbers.
Some pairs have correlations that are mean reverting. In this study we focused on IWM-QQQ. If a pair has a mean reverting correlation, it does not mean that the pair price itself will mean revert.
Remember, trading pairs (one long, one short) with high correlation means a pair with less overall risk. With the correlation between IWM and QQQ at two year highs, the risk of trading this pair has declined since the 2020 selloff.
Some pairs have correlations that are mean reverting. In this study we focused on IWM-QQQ. If a pair has a mean reverting correlation, it does not mean that the pair price itself will mean revert.
Remember, trading pairs (one long, one short) with high correlation means a pair with less overall risk. With the correlation between IWM and QQQ at two year highs, the risk of trading this pair has declined since the 2020 selloff.
tastytraders are always on the lookout for high volatility opportunities to sell premium, but how can we tell if a given volatility is “high”? Today, Tom and Tony explain two normalized volatility metrics and use some data to help interpret them.
tastytraders are always on the lookout for high volatility opportunities to sell premium, but how can we tell if a given volatility is “high”? Today, Tom and Tony explain two normalized volatility metrics and use some data to help interpret them.
The BAT joins Engineering the Trade to talk about his early life in New York, discuss his illustrious trading career and drop a few of his secret methods from his time as an arbitrator.
The BAT joins Engineering the Trade to talk about his early life in New York, discuss his illustrious trading career and drop a few of his secret methods from his time as an arbitrator.
As tastytraders, we’re always looking to take advantage of opportunities and sell high implied volatility rank (IVR). But when it comes to choosing between index products or individual stocks to sell high IVR, we almost always choose indexes. By and large, indexes aren’t exposed to the same level of outlier risk that individual stocks are, so when volatility is high across the board (like it is now), we usually opt for the indexes. Leaning on this idea, we look to add a new trade in SPY to the portfolio.
As tastytraders, we’re always looking to take advantage of opportunities and sell high implied volatility rank (IVR). But when it comes to choosing between index products or individual stocks to sell high IVR, we almost always choose indexes. By and large, indexes aren’t exposed to the same level of outlier risk that individual stocks are, so when volatility is high across the board (like it is now), we usually opt for the indexes. Leaning on this idea, we look to add a new trade in SPY to the portfolio.
Correlations between nearly all major asset classes is currently close to zero. Why does this matter? Tune in as Anton and Pete explain the benefits of low correlation in a portfolio. Find out how correlation and diversification can contribute to a successful portfolio and discover how incorporating different product types (like options or futures) can boost diversification even further.
Correlations between nearly all major asset classes is currently close to zero. Why does this matter? Tune in as Anton and Pete explain the benefits of low correlation in a portfolio. Find out how correlation and diversification can contribute to a successful portfolio and discover how incorporating different product types (like options or futures) can boost diversification even further.
Follow our futures dudes as they apply standard deviations and management mechanics to a crude oil market that's been moving multiple dollars per day. Frank speaks to the mean reverting attributes crude oil shows, and then he and Mikey take a look at an example of day trading crude oil from the last week.
Add strategic diversification to your portfolio with intraday trade ideas for the energy market.
Follow our futures dudes as they apply standard deviations and management mechanics to a crude oil market that's been moving multiple dollars per day. Frank speaks to the mean reverting attributes crude oil shows, and then he and Mikey take a look at an example of day trading crude oil from the last week.
Add strategic diversification to your portfolio with intraday trade ideas for the energy market.
With a put diagonal spread, you are reducing the cost basis on the long option by selling a short option against it.
This can also be thought of as a vertical spread with an extrinsic value kicker in the long option further out in time.
With that said, profitability can be reduced if the stock moves way too far past the strikes. Tune in for an example in ROKU with a live Q&A as well!
With a put diagonal spread, you are reducing the cost basis on the long option by selling a short option against it.
This can also be thought of as a vertical spread with an extrinsic value kicker in the long option further out in time.
With that said, profitability can be reduced if the stock moves way too far past the strikes. Tune in for an example in ROKU with a live Q&A as well!
One of the most challenging aspects of the options learning curve is understanding the mathematics that these complex instruments are founded on. A dive into the mathematics of options can easily lead to a seemingly endless void of technical indicators, probability theory, and stochastic calculus. Although the scope is broad, most options trading decisions can be made with a pretty superficial understanding of a handful of mathematical concepts and statistics. Join Tom, Tony and Julia as they cover some of the most important math concepts for trading options strategically.
Check out Julia and Tom's latest book, "The Unlucky Investor's Guide to Options Trading."
To preview go to Wiley.com.
Available on Amazon: https://www.amazon.com/Unlucky-Investors-Guide-Options-Trading/dp/1119882656
One of the most challenging aspects of the options learning curve is understanding the mathematics that these complex instruments are founded on. A dive into the mathematics of options can easily lead to a seemingly endless void of technical indicators, probability theory, and stochastic calculus. Although the scope is broad, most options trading decisions can be made with a pretty superficial understanding of a handful of mathematical concepts and statistics. Join Tom, Tony and Julia as they cover some of the most important math concepts for trading options strategically.
Check out Julia and Tom's latest book, "The Unlucky Investor's Guide to Options Trading."
To preview go to Wiley.com.
Available on Amazon: https://www.amazon.com/Unlucky-Investors-Guide-Options-Trading/dp/1119882656
Geopolitical fears leading to an increase in volatility. Supply chain and inflation creating wacky moves in commodities across the board.
Geopolitical fears leading to an increase in volatility. Supply chain and inflation creating wacky moves in commodities across the board.
上期节目中我们介绍了标准的预期波动的计算方法。但是在实盘的时候交易员并没有这么多时间去手动计算每一个股票的预期波动。那么在没有辅助信息的情况下，有没有更简单快速的方法能够让我们得知某个股票的预期波动范围呢？这期节目，让我们一起来看一下两种快捷的替代计算方法。
In the last episode, we introduced the standard method to calculate the expected move of an underlying. However, traders don't have as much time to calculate each stock’s expected move in real-time manually. So is there a simpler and faster way to know the answer? In this episode, let's look at two quick, alternative solutions.
Nick joins Kay and E to explore the metal markets. Tune in as he provides his thoughts on Small Precious Metal Futures (/SPRE), the GLD ETF, $GOLD, and gold miners like $NEM.
Learn More About Trading Metals
Nick joins Kay and E to explore the metal markets. Tune in as he provides his thoughts on Small Precious Metal Futures (/SPRE), the GLD ETF, $GOLD, and gold miners like $NEM.
Learn More About Trading Metals
Jermal breaks down the less than hawkish Fed minutes as well as the recent relationship between gold, oil and the dollar.
Jermal breaks down the less than hawkish Fed minutes as well as the recent relationship between gold, oil and the dollar.
Defined-Risk strategies are great additions to your portfolio because they give you the peace of mind of knowing your worst-case scenario on order entry. But over time, undefined-risk strategies are more consistent and reliable in their performance. So how can you tap into the power of undefined-risk, while still capping your max loss? One way is to widen the strikes of your strategy - something that will immediately make your position feel more naked.
Defined-Risk strategies are great additions to your portfolio because they give you the peace of mind of knowing your worst-case scenario on order entry. But over time, undefined-risk strategies are more consistent and reliable in their performance. So how can you tap into the power of undefined-risk, while still capping your max loss? One way is to widen the strikes of your strategy - something that will immediately make your position feel more naked.
The CME lists both mini and micro futures products for all four major U.S. equity indices. Pete and James run through all eight available futures contracts. The duo break down correlations, notional sizing, and liquidity. They help decipher which products may make the most sense for traders depending on account size and risk tolerance.
The CME lists both mini and micro futures products for all four major U.S. equity indices. Pete and James run through all eight available futures contracts. The duo break down correlations, notional sizing, and liquidity. They help decipher which products may make the most sense for traders depending on account size and risk tolerance.
Errol and Frank define yield curve inversions with practical examples in the Treasury yield curve before investigating a current inversion in the highly correlated Eurodollar yield curve. As Frank contextualizes some of the interest rate space, Errol asks great beginner-style questions to wrap his head around trading the yield curve. They conclude with a visualization of the current inversion and a way to trade it in today's market.
Errol and Frank define yield curve inversions with practical examples in the Treasury yield curve before investigating a current inversion in the highly correlated Eurodollar yield curve. As Frank contextualizes some of the interest rate space, Errol asks great beginner-style questions to wrap his head around trading the yield curve. They conclude with a visualization of the current inversion and a way to trade it in today's market.
The tastytrade crew shares their trade ideas for the day!
Mike routes a call broken wing butterfly for a credit in ROKU for earnings
Nick buys a call diagonal spread in MSFT
Tune in to learn more and a live Q&A as well!
The tastytrade crew shares their trade ideas for the day!
Mike routes a call broken wing butterfly for a credit in ROKU for earnings
Nick buys a call diagonal spread in MSFT
Tune in to learn more and a live Q&A as well!
Traders Futures with L/J: Frank joins Liz and Jenny and they have a very heavy discussion on interest rates. The key symbols were /GE vs /S2Y
Traders Futures with L/J: Frank joins Liz and Jenny and they have a very heavy discussion on interest rates. The key symbols were /GE vs /S2Y
When trading or gambling wide spreads (or commissions) will cause a significant drag on your probability of making money over defined time periods and overall P/L if you transact a lot. Luckily we don’t have to engage with those products because there are many liquid products out there. Additionally, increasing trade size as % of total capital result in lower POP over time but carries much greater upside if you are right.
When trading or gambling wide spreads (or commissions) will cause a significant drag on your probability of making money over defined time periods and overall P/L if you transact a lot. Luckily we don’t have to engage with those products because there are many liquid products out there. Additionally, increasing trade size as % of total capital result in lower POP over time but carries much greater upside if you are right.
Fair pricing creates efficiency and a level playing field for everyone. This fact allows for a quantitative approach to trading. Join Tom and Tony today as they discuss how to find opportunities by evaluating risk and reward with calculation based on the price of the option.
Fair pricing creates efficiency and a level playing field for everyone. This fact allows for a quantitative approach to trading. Join Tom and Tony today as they discuss how to find opportunities by evaluating risk and reward with calculation based on the price of the option.
Long crude, gold, volatility and short tech has been the trading playbook for a couple of weeks. Does the trend continue?
Long crude, gold, volatility and short tech has been the trading playbook for a couple of weeks. Does the trend continue?
Dylan and Tom discuss the "Fragmented Generation" moniker and how disseminating information in the modern era also increases the likelihood of misinformation. Does everything in life eventually have a positive drift? The consequences of Global Geopolitical risk, tensions between Russia and the Ukraine, decentralization, and the potential for the collapse of bitcoin are also discussed in today's episode or Truth or Skepticism.
Dylan and Tom discuss the "Fragmented Generation" moniker and how disseminating information in the modern era also increases the likelihood of misinformation. Does everything in life eventually have a positive drift? The consequences of Global Geopolitical risk, tensions between Russia and the Ukraine, decentralization, and the potential for the collapse of bitcoin are also discussed in today's episode or Truth or Skepticism.
In today's episode, Jermal and Pete break down and define the common types of term structure, known as "contango" and "backwardation." They list the futures products that demonstrate these types of curves, explain what can cause a change to a product's "term structure" and then walk through examples of curves that are interesting at the moment.
Learn More about Calendar Spreads to capitalize on changes in term structure.
In today's episode, Jermal and Pete break down and define the common types of term structure, known as "contango" and "backwardation." They list the futures products that demonstrate these types of curves, explain what can cause a change to a product's "term structure" and then walk through examples of curves that are interesting at the moment.
Learn More about Calendar Spreads to capitalize on changes in term structure.
Interest rates can be an intimidating asset class, as Katie notes, but once you understand how the big benchmarks work and how you can access them, rates become relatively easy to trade. Katie and Frank show you how to find where the market is currently pricing interest rates, and then they are able to buy or sell a few different futures products based on whether they think rates will move higher or lower. All the recent talk of inflation and FOMC meetings has people wanting to put their opinions to work, and now you can do so easily with Small Yield futures.
Interest rates can be an intimidating asset class, as Katie notes, but once you understand how the big benchmarks work and how you can access them, rates become relatively easy to trade. Katie and Frank show you how to find where the market is currently pricing interest rates, and then they are able to buy or sell a few different futures products based on whether they think rates will move higher or lower. All the recent talk of inflation and FOMC meetings has people wanting to put their opinions to work, and now you can do so easily with Small Yield futures.
When earnings announcements are made, implied volatility-based extrinsic value in near-term cycles is crushed - today the OTC live crew takes a look at RBLX and how different expirations exhibit different extrinsic value crushes based on DTE. Products like WMT don't necessarily exhibit this same behavior for this earnings announcement.
Tune in to learn more with a live Q&A session as well!
When earnings announcements are made, implied volatility-based extrinsic value in near-term cycles is crushed - today the OTC live crew takes a look at RBLX and how different expirations exhibit different extrinsic value crushes based on DTE. Products like WMT don't necessarily exhibit this same behavior for this earnings announcement.
Tune in to learn more with a live Q&A session as well!
tastytraders often use the expected move of an underlying to determine what strikes to trade. But where does that number come from? Today, Jacob joins Tom and Tony to explore what is expected about the expected move, how it fits into the theory, and where it comes from in the platform.
tastytraders often use the expected move of an underlying to determine what strikes to trade. But where does that number come from? Today, Jacob joins Tom and Tony to explore what is expected about the expected move, how it fits into the theory, and where it comes from in the platform.
CrowdStreet is the largest online real estate investment platform for institutional quality real estate in the country. They have raised over $2.8B, which has been invested into $22B of property across more than 600 deals & disturbed $464 to investors and I imagine they're happy investors. The company was named, Best Overall Real Estate Crowdfunding Site by Investopedia for 2021 and 2022.Darren Powderly is the Co-founder. He realized it would be possible to radically improve access to this asset class through consumer education, astute marketing, and innovative technology.
CrowdStreet is the largest online real estate investment platform for institutional quality real estate in the country. They have raised over $2.8B, which has been invested into $22B of property across more than 600 deals & disturbed $464 to investors and I imagine they're happy investors. The company was named, Best Overall Real Estate Crowdfunding Site by Investopedia for 2021 and 2022.Darren Powderly is the Co-founder. He realized it would be possible to radically improve access to this asset class through consumer education, astute marketing, and innovative technology.
Since the start of the year, the major indices have seen their Implied Volatility Ranks (IVRs) over 50 quite frequently. 37% of the time for the S&P, 60% for the Nasdaq, and 47% of the time for the Russell.However, since volatility is mean reverting, it is unlikely that we see sustained periods of high IVR.When we see IVR start to increase, how long can we expect the indices to stay at or around that level before eventually decreasing?Join Tom and Tony to find out!
Since the start of the year, the major indices have seen their Implied Volatility Ranks (IVRs) over 50 quite frequently. 37% of the time for the S&P, 60% for the Nasdaq, and 47% of the time for the Russell.However, since volatility is mean reverting, it is unlikely that we see sustained periods of high IVR.When we see IVR start to increase, how long can we expect the indices to stay at or around that level before eventually decreasing?Join Tom and Tony to find out!
PPI comes in above forecast but that's not a surprise. Why? Nearly 73% of S&P 500 companies are citing "inflation" on their earnings calls. Jermal explains that and more on Engineering the Trade.
PPI comes in above forecast but that's not a surprise. Why? Nearly 73% of S&P 500 companies are citing "inflation" on their earnings calls. Jermal explains that and more on Engineering the Trade.
With a classic Short Strangle, our typical first adjustment is to roll the untested into a tighter version of that same Short Strangle. But after this adjustment has been made, if you need to adjust again, what is the next move? Today, we explore the gimmes and the gotchas between rolling into an even tighter Short Strangle versus rolling right into a Short Straddle.
With a classic Short Strangle, our typical first adjustment is to roll the untested into a tighter version of that same Short Strangle. But after this adjustment has been made, if you need to adjust again, what is the next move? Today, we explore the gimmes and the gotchas between rolling into an even tighter Short Strangle versus rolling right into a Short Straddle.
Chris Vecchio and Pete Mulmat are back to preview another uncertain week in the markets. Tune in for the scoop on UK Inflation Rates, US Retail Sales, the flattening yield curve, and of course, assets moving off the Russia-Ukraine conflict.
Chris Vecchio and Pete Mulmat are back to preview another uncertain week in the markets. Tune in for the scoop on UK Inflation Rates, US Retail Sales, the flattening yield curve, and of course, assets moving off the Russia-Ukraine conflict.
Spread trading is the practice of taking a position in one market while putting on a directly opposing position in a highly correlated market. This strategy can help to manage risk by decreasing the size of the initial position to a hedged one between two similar markets.
The guys use crude oil and energy stocks as an example whereby they look into selling Small Crude Oil futures and buying Energy Sector shares as the two markets diverge.
Spread trading is the practice of taking a position in one market while putting on a directly opposing position in a highly correlated market. This strategy can help to manage risk by decreasing the size of the initial position to a hedged one between two similar markets.
The guys use crude oil and energy stocks as an example whereby they look into selling Small Crude Oil futures and buying Energy Sector shares as the two markets diverge.
A short put is an options contract that obligates you to assume the risk of 100 shares of stock at the strike price, but you collect extrinsic value upfront to offset a portion of that risk.
Today, the tastytrade crew explains how this can be viewed as interest collected on risk taken, and how different products offer different extrinsic value premiums because of the perceived volatility of the stock price you're placing your risk in.
Tune in to learn more!
A short put is an options contract that obligates you to assume the risk of 100 shares of stock at the strike price, but you collect extrinsic value upfront to offset a portion of that risk.
Today, the tastytrade crew explains how this can be viewed as interest collected on risk taken, and how different products offer different extrinsic value premiums because of the perceived volatility of the stock price you're placing your risk in.
Tune in to learn more!
Anton joins Liz and Jenny to talk about futures and spy correlation. They also discuss rolling futures and dealing with drag and how some futures have a bigger drag than others./CL, /ZB, /6E, /GC
Anton joins Liz and Jenny to talk about futures and spy correlation. They also discuss rolling futures and dealing with drag and how some futures have a bigger drag than others./CL, /ZB, /6E, /GC
Options on futures allow traders exposure to more markets that are still liquid and may provide greater diversification than trading only equity options.With technology rapidly expanding, trading both equity and futures options from one place has never been easier. With the technical differences handled in the backend, the trading experience for both products is very consistent.
Options on futures allow traders exposure to more markets that are still liquid and may provide greater diversification than trading only equity options.With technology rapidly expanding, trading both equity and futures options from one place has never been easier. With the technical differences handled in the backend, the trading experience for both products is very consistent.
In the abstract world of the Black-Scholes model, underlying price movements should be self-similar: the statistical properties don’t change as you zoom in or out. But abstract theory only sometimes accords with reality.
Today, Tom and Tony dive into the data to compare runs on different time scales and see how close the market is to the models.
In the abstract world of the Black-Scholes model, underlying price movements should be self-similar: the statistical properties don’t change as you zoom in or out. But abstract theory only sometimes accords with reality.
Today, Tom and Tony dive into the data to compare runs on different time scales and see how close the market is to the models.
On today's show, Victor joins Tom and Tony to discuss the market being up by 70 points this morning and how the tensions in southeastern Europe might not be a true reflection of what is happening in the markets, especially when it comes to volatility and fear. Is the market shallow?
Victor looks at real-time pricing and signs of de-escalation and how traders would likely price the risk when it comes to aerospace and defense ETFs such as LM, BA and NOC.
On today's show, Victor joins Tom and Tony to discuss the market being up by 70 points this morning and how the tensions in southeastern Europe might not be a true reflection of what is happening in the markets, especially when it comes to volatility and fear. Is the market shallow?
Victor looks at real-time pricing and signs of de-escalation and how traders would likely price the risk when it comes to aerospace and defense ETFs such as LM, BA and NOC.
The VIX is back above $20 after CPI came in above estimates. We are seeing backwardation in 68% of commodities. The dollar has fallen. Oil is pushing towards $100. What will happen next in the markets?
The VIX is back above $20 after CPI came in above estimates. We are seeing backwardation in 68% of commodities. The dollar has fallen. Oil is pushing towards $100. What will happen next in the markets?
Rolling is an important part of our defense strategy, as it allows us to extend the duration of a losing position. When we roll, however, we’re not always able to collect a credit, as we see with some of our defined-risk positions. So how do we determine if a roll is going to be a credit or debit? As we see with our IWM position today, the key is to recognize which leg of the spread is the driver of the strategy.
Be sure to connect with Dr. Jim on Twitter!
Rolling is an important part of our defense strategy, as it allows us to extend the duration of a losing position. When we roll, however, we’re not always able to collect a credit, as we see with some of our defined-risk positions. So how do we determine if a roll is going to be a credit or debit? As we see with our IWM position today, the key is to recognize which leg of the spread is the driver of the strategy.
Be sure to connect with Dr. Jim on Twitter!
Pete and James take a look at the Jade Lizard options strategy and how it can be employed on equity futures contracts. The two walk through a checklist of best practices for the strategy before looking at possible trade examples in the E-mini S&P 500 futures options (/ES).
Pete and James take a look at the Jade Lizard options strategy and how it can be employed on equity futures contracts. The two walk through a checklist of best practices for the strategy before looking at possible trade examples in the E-mini S&P 500 futures options (/ES).
Wondering why everyone is talking interest rates and inflation all of a sudden? Frank and Errol explain how one affects the other and where you can trade this new event.
The guys dive deep into how interest rates operate in times of low and high inflation with the Small 2YR Treasury Yield Index as the backdrop. Then, they give context for the recent outlier move in the market before talking strategy moving forward.
Find out how inflation and interest rates operate as well as how you can trade them.
Wondering why everyone is talking interest rates and inflation all of a sudden? Frank and Errol explain how one affects the other and where you can trade this new event.
The guys dive deep into how interest rates operate in times of low and high inflation with the Small 2YR Treasury Yield Index as the backdrop. Then, they give context for the recent outlier move in the market before talking strategy moving forward.
Find out how inflation and interest rates operate as well as how you can trade them.
The tastytrade crew shares their trade ideas for the day!
Mike sells an ITM put in UA for earnings
Katie buys a call spread in NFLX
Nick sells a call ratio spread in XOP
Tune in to learn more and a live Q&A as well!
The tastytrade crew shares their trade ideas for the day!
Mike sells an ITM put in UA for earnings
Katie buys a call spread in NFLX
Nick sells a call ratio spread in XOP
Tune in to learn more and a live Q&A as well!
Liz and Jenny celebrate the TWLO calendar home run! They adjust their Zillow position before earnings, roll Docusign, and close Disney.UBER, Z, DOCU, TWTR
Liz and Jenny celebrate the TWLO calendar home run! They adjust their Zillow position before earnings, roll Docusign, and close Disney.UBER, Z, DOCU, TWTR
Frank joins Liz and Jenny to talk about yields. He brings in a trade hedging a short /S2Y position with a short call in /ZF.
/S2Y, /ZF
Frank joins Liz and Jenny to talk about yields. He brings in a trade hedging a short /S2Y position with a short call in /ZF.
/S2Y, /ZF
At tasty, two primary management strategies that we utilize are managing at 50% profit and managing at 21 DTE.
We’ve done studies recently looking at these strategies individually, as well as together, to find what is optimal.
But, as volatility changes, should we also consider changing the way we manage our trades? When IVR is low should we manage differently than we do when IVR is high?
Join Tom and Tony to find out!
At tasty, two primary management strategies that we utilize are managing at 50% profit and managing at 21 DTE.
We’ve done studies recently looking at these strategies individually, as well as together, to find what is optimal.
But, as volatility changes, should we also consider changing the way we manage our trades? When IVR is low should we manage differently than we do when IVR is high?
Join Tom and Tony to find out!
In a tasty bite account we look to follow a trade approach that maximizes opportunities while using capital efficiently.
Today Tom and Tony cover some methods that when followed can help preserve capital and improve efficiency.
In a tasty bite account we look to follow a trade approach that maximizes opportunities while using capital efficiently.
Today Tom and Tony cover some methods that when followed can help preserve capital and improve efficiency.
25 bps? 50 bps? The upcoming CPI number will probably determine the Fed's course of action. Watch Engineering the Trade to find out more!
25 bps? 50 bps? The upcoming CPI number will probably determine the Fed's course of action. Watch Engineering the Trade to find out more!
Who are the biggest monopolies and what does their monopoly mean?
On this week’s episode of Truth or Skepticism, Tom and Dylan get into a heated debate over the power of companies like Google, Apple, Amazon, and Facebook. Tune in to hear their separate stances!
Who are the biggest monopolies and what does their monopoly mean?
On this week’s episode of Truth or Skepticism, Tom and Dylan get into a heated debate over the power of companies like Google, Apple, Amazon, and Facebook. Tune in to hear their separate stances!
As contract expiration gets closer, many derivative traders will begin to assess what to do with their position. Based on their goals, traders may look to roll, hold, or even close out their position. In any event, it is important for all traders to know what happens to their trading product at expiration. In the world of futures, these contracts can either be physically or financially "settled."
In today's episode, Jermal and Pete explain the differences between physically and financially settled futures products, highlighting common examples of both. Tune in to find out what to keep in mind when trading futures contracts during expiration and settlement.
As contract expiration gets closer, many derivative traders will begin to assess what to do with their position. Based on their goals, traders may look to roll, hold, or even close out their position. In any event, it is important for all traders to know what happens to their trading product at expiration. In the world of futures, these contracts can either be physically or financially "settled."
In today's episode, Jermal and Pete explain the differences between physically and financially settled futures products, highlighting common examples of both. Tune in to find out what to keep in mind when trading futures contracts during expiration and settlement.
Futures traders Katie and Frank share how they apply mean reversion to both investment and day trades using the Small 10YR Yield market. The duo talks about how means are calculated as well as how they view current prices relative to that historical data. Finally, they talk about keeping long- and short-term strategies separate so as not to confuse a market that might be well above its multi-year mean but below its daily one.
Futures traders Katie and Frank share how they apply mean reversion to both investment and day trades using the Small 10YR Yield market. The duo talks about how means are calculated as well as how they view current prices relative to that historical data. Finally, they talk about keeping long- and short-term strategies separate so as not to confuse a market that might be well above its multi-year mean but below its daily one.
Gamma is the rate of change of delta given a $1 move in the stock price, all else equal. We typically avoid it for undefined risk short premium trades, but it's not always seen as a liability with long options spreads, or ITM credit spreads.
Tune in to learn more!
Gamma is the rate of change of delta given a $1 move in the stock price, all else equal. We typically avoid it for undefined risk short premium trades, but it's not always seen as a liability with long options spreads, or ITM credit spreads.
Tune in to learn more!
Vuulr is a global online content marketplace for Film and T.V. rights that connects over 15,00 buyers and sellers worldwide, providing them with a platform to source, evaluate, negotiate, and transact directly and securely online. The company also champions budding, independent filmmakers by giving them an opportunity for their work to be discovered by buyers worldwide. Ian McKee is the Founder & CEO. In 2020, he was named by Business Insider as one of the top 10 leaders in transforming media and advertising.
Vuulr is a global online content marketplace for Film and T.V. rights that connects over 15,00 buyers and sellers worldwide, providing them with a platform to source, evaluate, negotiate, and transact directly and securely online. The company also champions budding, independent filmmakers by giving them an opportunity for their work to be discovered by buyers worldwide. Ian McKee is the Founder & CEO. In 2020, he was named by Business Insider as one of the top 10 leaders in transforming media and advertising.
What is your assumption Wednesday! Liz and Jenny take a look at viewer's assumptions and place high probability trades using less capital. Featured symbols include: TWLO, MU, TTD, PTON, NKLA, DIS, FB, JETS, & UAL.
What is your assumption Wednesday! Liz and Jenny take a look at viewer's assumptions and place high probability trades using less capital. Featured symbols include: TWLO, MU, TTD, PTON, NKLA, DIS, FB, JETS, & UAL.
Liz and Jenny take live tweets on trade ideas and earnings trades. They close last night's earnings trades for a win, place a KO/PEP pairs trade and establish an after earnings trade in PTON.
Liz and Jenny take live tweets on trade ideas and earnings trades. They close last night's earnings trades for a win, place a KO/PEP pairs trade and establish an after earnings trade in PTON.
For equities and equity portfolios, the Sharpe ratio is a simple, effective tool for comparing strategies - the higher the Sharpe, the better the expected performance.
For options and options portfolios, however, the Sharpe ratio doesn’t show a complete picture.
Join Tom and Tony as they use some examples of 16Δ strangles to understand why.
For equities and equity portfolios, the Sharpe ratio is a simple, effective tool for comparing strategies - the higher the Sharpe, the better the expected performance.
For options and options portfolios, however, the Sharpe ratio doesn’t show a complete picture.
Join Tom and Tony as they use some examples of 16Δ strangles to understand why.
In today's episode of What's Your Assumption Tom and Tony fill 8 out of 10 trades featuring Facebook, Disney, Peloton, and more.
In today's episode of What's Your Assumption Tom and Tony fill 8 out of 10 trades featuring Facebook, Disney, Peloton, and more.
Changes in 30-day (typical) IV can affect short term options and the short term IV much more significantly, making them higher risk trading vehicles.
The move in short term IV tends to be a magnified version of what 30-day IV does. In future segments, we will show research on how these short term options actually perform if traded regularly.
Changes in 30-day (typical) IV can affect short term options and the short term IV much more significantly, making them higher risk trading vehicles.
The move in short term IV tends to be a magnified version of what 30-day IV does. In future segments, we will show research on how these short term options actually perform if traded regularly.
The Russell 2000 is outperforming all of the other indices as yields of all durations march upwards. Join Jermal as he breaks down all of the market action and dissects option flow in $OSH, $HZNP, $FB and $LYFT.
The Russell 2000 is outperforming all of the other indices as yields of all durations march upwards. Join Jermal as he breaks down all of the market action and dissects option flow in $OSH, $HZNP, $FB and $LYFT.
Two strategies we love to use to take directional shots for earnings are the Long ATM Vertical Spread and the Expected Move Butterfly. Both of these strategies can certainly benefit from a directional move in your favor, but a nice hybrid between the two could be the Long OTM Vertical Spread. By moving our strikes just slightly OTM, we’re able to reduce the cost from what an ATM Spread would cost, while still avoiding the precision that would be required with an Expected Move Butterfly.Be sure to connect with Dr. Jim on Twitter!
Pete and Chris recap the major events and movements of the markets this week. Topics Discussed:
- US Consumer Price Index report on Thursday: Will this shape future interest rate activity?
- UK GDP on Friday: How will this impact movement in the British Pound?
- The TUT Spread Continues to Narrow: What's the trade?
- The Relationship between E-Mini S&P 500 and NASDAQ: Equity Pairs Behavior
- Has the Euro peaked?
Pete and Chris recap the major events and movements of the markets this week. Topics Discussed:
- US Consumer Price Index report on Thursday: Will this shape future interest rate activity?
- UK GDP on Friday: How will this impact movement in the British Pound?
- The TUT Spread Continues to Narrow: What's the trade?
- The Relationship between E-Mini S&P 500 and NASDAQ: Equity Pairs Behavior
- Has the Euro peaked?
It's a busy earnings day. Liz and Jenny decide to close their Peloton position after today's big rally. They place new earnings trades in CVS and LYFT after taking wins in Southwest Airlines, Pfizer, and Macy's.LUV, PFE, M, LYFT, CVS, PTON
Ever size up a bearish position only to be scared off by the infinity symbol next to your theoretical maximum loss?
Jermal and Frank create realistic risk assessments around short positions. The guys use examples in everything from TSLA and GME to SMO and SPY to compare how real potentially infinite risk can be in a short position depending on your strategy. Find out what these experienced traders have to say about going short before you enter your next sell order.
When an option is about to expire and it is ATM, it has little extrinsic value. If there is a big move and the option moves ITM, it can grow teeth quickly. This isn't the same scenario as the same strike option in a further-dated cycle. because that option has much more extrinsic value tied to it.
Learn how gamma risk applies more to options that are about to expire today on OTC live!
When an option is about to expire and it is ATM, it has little extrinsic value. If there is a big move and the option moves ITM, it can grow teeth quickly. This isn't the same scenario as the same strike option in a further-dated cycle. because that option has much more extrinsic value tied to it.
Learn how gamma risk applies more to options that are about to expire today on OTC live!
Anton joins the Liz and Jenny show to discuss how trading changes as the volatility of the market changes. They talk about different strategies for varying account sizes.
Anton joins the Liz and Jenny show to discuss how trading changes as the volatility of the market changes. They talk about different strategies for varying account sizes.
Over the last 30 years, you could expect a streak of at least three 1% days to the same direction to happen less than 1% of the time, half being up-day streaks and half being down-day streaks. The day after the end of a large down streak usually results in an above-average up day (+2.3%), whereas the day after the end of a large up streak results in a completely average down day.
In today's episode of Market Measures, Tom and Tony look at what happens after streaks of up or down days.
Over the last 30 years, you could expect a streak of at least three 1% days to the same direction to happen less than 1% of the time, half being up-day streaks and half being down-day streaks. The day after the end of a large down streak usually results in an above-average up day (+2.3%), whereas the day after the end of a large up streak results in a completely average down day.
In today's episode of Market Measures, Tom and Tony look at what happens after streaks of up or down days.
tastytraders look to the probability of profit when evaluating potential trades. While these probabilities might describe how many winning trades we’ll see in the long run, there are bound to be good years and bad years.
Today, Tom and Tony dive into the data to look at how different strategies have fared over the years.
tastytraders look to the probability of profit when evaluating potential trades. While these probabilities might describe how many winning trades we’ll see in the long run, there are bound to be good years and bad years.
Today, Tom and Tony dive into the data to look at how different strategies have fared over the years.
Traders hedging positions is at an all-time high according to the media, but what does that mean? A trader can increase or decrease the size of their position based on opportunity and resources, which is the tastytrade way, but is the actual term “hedging” misleading?
In today's episode of Hear Me Out, Victor Jones, Tom Sosnoff, and Tony Battista duke it out to answer one seemingly simple question, is hedging actually a thing?
Traders hedging positions is at an all-time high according to the media, but what does that mean? A trader can increase or decrease the size of their position based on opportunity and resources, which is the tastytrade way, but is the actual term “hedging” misleading?
In today's episode of Hear Me Out, Victor Jones, Tom Sosnoff, and Tony Battista duke it out to answer one seemingly simple question, is hedging actually a thing?
Jermal talks about the strong January payrolls number and takes a look at how rising yields have affected tech stocks ($QQQ). Then, he highlights trades in $TBT, $TLT, $PFE and $TTWO
Jermal talks about the strong January payrolls number and takes a look at how rising yields have affected tech stocks ($QQQ). Then, he highlights trades in $TBT, $TLT, $PFE and $TTWO
A big part of what we do as tastytraders is make strategic adjustments to our portfolios. Doing this allows us to continually position our trades in probabilistically favorable situations, while reducing risk and improving break-even points. Still, it’s important to recognize when it’s appropriate to make an adjustment, and when it’s appropriate to simply sit tight. Today, we offer up a guideline to making portfolio adjustments.
Check out the full Day-to-Day Portfolio Management video on Youtube!
Be sure to connect with Dr. Jim on Twitter!
A big part of what we do as tastytraders is make strategic adjustments to our portfolios. Doing this allows us to continually position our trades in probabilistically favorable situations, while reducing risk and improving break-even points. Still, it’s important to recognize when it’s appropriate to make an adjustment, and when it’s appropriate to simply sit tight. Today, we offer up a guideline to making portfolio adjustments.
Check out the full Day-to-Day Portfolio Management video on Youtube!
Be sure to connect with Dr. Jim on Twitter!
Pete and Jermal cover five different markets and eventually cue up three different risk-defined trades based on recent trading ranges. (/MBT, /MET, /NQ, /ES, /ZB)
Network President and CEO, Kristin Ostby, and Chicago Affiliate President, Karen Croteau, are administration executives at Boys Hope Girls Hope, whose goal is to help young people graduate who are physically, emotionally, and academically prepared for post-secondary education and productive life, breaking the cycle of poverty. In the residential programs, they are offered a loving and stable home, guidance, and access to quality education & in their Academy programs, the young people continue to live with family at home but receive the same wholistic, long-term support.boyshopegirlshope.org
Network President and CEO, Kristin Ostby, and Chicago Affiliate President, Karen Croteau, are administration executives at Boys Hope Girls Hope, whose goal is to help young people graduate who are physically, emotionally, and academically prepared for post-secondary education and productive life, breaking the cycle of poverty. In the residential programs, they are offered a loving and stable home, guidance, and access to quality education & in their Academy programs, the young people continue to live with family at home but receive the same wholistic, long-term support.boyshopegirlshope.org
When rolling a strangle vertically in the same cycle, we are typically adjusting the untested or furthest OTM side to bring it closer to the stock price. This brings our overall delta closer to zero and gives us a credit that we can use to offset our tested side's breakeven.
When making this adjustment, we need to consider how it affects our trade overall.
Tune in for a live walkthrough and a Q&A session as well!
When rolling a strangle vertically in the same cycle, we are typically adjusting the untested or furthest OTM side to bring it closer to the stock price. This brings our overall delta closer to zero and gives us a credit that we can use to offset our tested side's breakeven.
When making this adjustment, we need to consider how it affects our trade overall.
Tune in for a live walkthrough and a Q&A session as well!
Alpha boost coming in hot with MU and AMD trade ideas. Liz and Jenny land on a strangle in MU with 39 DTE.
Alpha boost coming in hot with MU and AMD trade ideas. Liz and Jenny land on a strangle in MU with 39 DTE.
Brunch pictures, zumba parties, and cherry nails! Liz and Jenny take live tweets on trade ideas and weekend plans. They also ratchet up a ZEBRA to take some risk off the table in SNAP.
Brunch pictures, zumba parties, and cherry nails! Liz and Jenny take live tweets on trade ideas and weekend plans. They also ratchet up a ZEBRA to take some risk off the table in SNAP.
One of the metrics that you see us use quite frequently is the beta-weighted delta in our portfolio. As a way to offer a quick approximation of the directional bias in our portfolio, the beta-weighted delta standardizes all of our individual position deltas into one, aggregate portfolio delta number. Doing this is so effective because it not only captures the price and sensitivity differences between a given stock and the overall market, but it also opens the door for us to be able to use more powerful metrics, such as a delta/theta ratio.
Be sure to connect with Dr. Jim on Twitter!
One of the metrics that you see us use quite frequently is the beta-weighted delta in our portfolio. As a way to offer a quick approximation of the directional bias in our portfolio, the beta-weighted delta standardizes all of our individual position deltas into one, aggregate portfolio delta number. Doing this is so effective because it not only captures the price and sensitivity differences between a given stock and the overall market, but it also opens the door for us to be able to use more powerful metrics, such as a delta/theta ratio.
Be sure to connect with Dr. Jim on Twitter!
In the past two weeks, we’ve seen IVR across the major indices between 30 and 140.
Here at tasty, we frequently discuss volatility contraction following a spike like this, which is why we look for high IVR when selling premium.
As IVR increases, does that mean that profits come in sooner? If we managed at 50% profit across various IVR ranges, is there any significant difference?
Join Tom and Tony to find out!
In the past two weeks, we’ve seen IVR across the major indices between 30 and 140.
Here at tasty, we frequently discuss volatility contraction following a spike like this, which is why we look for high IVR when selling premium.
As IVR increases, does that mean that profits come in sooner? If we managed at 50% profit across various IVR ranges, is there any significant difference?
Join Tom and Tony to find out!
With the use of statistical analysis an options trade comes alive with a wealth of information that provides context that we can use to make decisions. A valuable part of this analysis is the calculation of various probabilistic outcomes. Join Tom and Tony today as they review some of the probability metrics we use that are at the core of our quantitative approach to trading.
With the use of statistical analysis an options trade comes alive with a wealth of information that provides context that we can use to make decisions. A valuable part of this analysis is the calculation of various probabilistic outcomes. Join Tom and Tony today as they review some of the probability metrics we use that are at the core of our quantitative approach to trading.
Mikey drops by Engineering the Trade to talk about how he went from a supply chain manager to a seasoned options trader and gives his outlook on the Chicago Bulls season.
Mikey drops by Engineering the Trade to talk about how he went from a supply chain manager to a seasoned options trader and gives his outlook on the Chicago Bulls season.
Our entire process can be boiled down to one, singular advantage: taking advantage of the overreaction that is priced into volatility. As our research has shown over and over again, implied volatility is routinely greater than realized volatility, which ends up leaving premium sellers with an advantage over premium buyers. Interestingly, however, can this same idea be applied to stock prices themselves? In other words, can we position ourselves to take advantage of overreaction in stock price movements? Today, we look at both FB and AMZN to discuss.
Be sure to connect with Dr. Jim on Twitter!
Our entire process can be boiled down to one, singular advantage: taking advantage of the overreaction that is priced into volatility. As our research has shown over and over again, implied volatility is routinely greater than realized volatility, which ends up leaving premium sellers with an advantage over premium buyers. Interestingly, however, can this same idea be applied to stock prices themselves? In other words, can we position ourselves to take advantage of overreaction in stock price movements? Today, we look at both FB and AMZN to discuss.
Be sure to connect with Dr. Jim on Twitter!
When rolling deep ITM options that are 90+ delta, we need to consider how much credit we're receiving as a very small credit does not help our cost basis, and it could hurt our P/L recovery if we get a big move in our favor.
Tune in to learn more with a Q&A session as well!
When rolling deep ITM options that are 90+ delta, we need to consider how much credit we're receiving as a very small credit does not help our cost basis, and it could hurt our P/L recovery if we get a big move in our favor.
Tune in to learn more with a Q&A session as well!
Liz and Jenny walk through the super bull strategy and go over the pros and cons of shorter duration vs. using leaps.IBM, AMZN, M
Liz and Jenny walk through the super bull strategy and go over the pros and cons of shorter duration vs. using leaps.IBM, AMZN, M
长期持有股票是全世界股民，基金使用最多最广泛的策略。在期权交易中也有一种策略可以替代持有股票起到相类似的作用，并且还可以减少保证金要求，增加固定收入，这个策略就是卖出看跌期权。这期节目我们就要用量化分析的方式来剖析长期使用卖出看跌期权到底能产生多少收益，又有多少风险。
Long Stock is the most popular trading strategy around the world. There is one options strategy, short put, that can mimic the long stock position, reduce the buying power requirement (Margin requirement), and generate steady income. That’s why the short put becomes one of the most promising options strategies among traders. This episode examines the long-term performance of constantly selling puts.
Certain types of short premium positions have positive expected values, but it is critical for traders to have a sufficient number of occurrences to realize those benefits. What is the minimum number of trades that one should aim for to maximize the chances of reaching positive long-term averages? What are the potential consequences of having too few occurrences? Find out today as Tom, Tony and Julia cover one key takeaway from Chapter 3 of The Unlucky Investor’s Guide to Options Trading.Feeling lucky? Learn more about the guide. See the publisher. Check out the authors: Tom Sosnoff, Julia SpinaAlso available on Amazon.com
Certain types of short premium positions have positive expected values, but it is critical for traders to have a sufficient number of occurrences to realize those benefits. What is the minimum number of trades that one should aim for to maximize the chances of reaching positive long-term averages? What are the potential consequences of having too few occurrences? Find out today as Tom, Tony and Julia cover one key takeaway from Chapter 3 of The Unlucky Investor’s Guide to Options Trading.Feeling lucky? Learn more about the guide. See the publisher. Check out the authors: Tom Sosnoff, Julia SpinaAlso available on Amazon.com
The moves created by each of the FAANG earnings debate determine whether or not the indices need to be re-weighted. This is a matter of playing a game called long, short or trade with FB, TWTR and SNAP where you choose which will be trading higher a year from today and then decide which is the best to trade from a collecting standpoint.
The moves created by each of the FAANG earnings debate determine whether or not the indices need to be re-weighted. This is a matter of playing a game called long, short or trade with FB, TWTR and SNAP where you choose which will be trading higher a year from today and then decide which is the best to trade from a collecting standpoint.
Jermal discusses how the $FB earnings miss is pulling down the market and a host of related tech stocks. He also highlights option flow in $AMZN, $FB, $VIX and $RBLX.
Jermal discusses how the $FB earnings miss is pulling down the market and a host of related tech stocks. He also highlights option flow in $AMZN, $FB, $VIX and $RBLX.
Naked Short Calls are not normally part of our goto strategy set because they can be tough trades to hold onto in a market that naturally wants to grind higher. Furthermore, even when you are right directionally, and the stock drops, the implied volatility expansion that will likely accompany that lower stock price will work against your profitability. Interestingly, however, the IV crush that so reliably happens from earnings might be able to overcome this drag, as we see with our Naked Short Call from SBUX earnings the other day.
Be sure to connect with Dr. Jim on Twitter!
Naked Short Calls are not normally part of our goto strategy set because they can be tough trades to hold onto in a market that naturally wants to grind higher. Furthermore, even when you are right directionally, and the stock drops, the implied volatility expansion that will likely accompany that lower stock price will work against your profitability. Interestingly, however, the IV crush that so reliably happens from earnings might be able to overcome this drag, as we see with our Naked Short Call from SBUX earnings the other day.
Be sure to connect with Dr. Jim on Twitter!
Pete and James revisit the concept of short strangles in Crude Oil Futures (/CL). They take a look at strike selection and how traders need to factor probabilities and risk when trading undefined risk strategies.
Pete and James revisit the concept of short strangles in Crude Oil Futures (/CL). They take a look at strike selection and how traders need to factor probabilities and risk when trading undefined risk strategies.
Ratio spreads incorporate 1 long option and 2-3 short options of the same type. Errol and Frank set one up in SPRE futures options and discuss profit potential. The futures dude highlight some of the nuances of this complex strategy without going deeper than needed for the new trader to try out this high probability play.
Ratio spreads incorporate 1 long option and 2-3 short options of the same type. Errol and Frank set one up in SPRE futures options and discuss profit potential. The futures dude highlight some of the nuances of this complex strategy without going deeper than needed for the new trader to try out this high probability play.
The tastytrade crew shares their trade ideas for the day!
Mike sells an ITM put in F for earnings
Katie buys the Small Exchange /STIX contract
Nick opens a short-term call zebra in VXX
Tune in to learn more and a live Q&A as well!
The tastytrade crew shares their trade ideas for the day!
Mike sells an ITM put in F for earnings
Katie buys the Small Exchange /STIX contract
Nick opens a short-term call zebra in VXX
Tune in to learn more and a live Q&A as well!
Our favorite red head Frank joins Liz and Jenny to discuss all the ins and outs of Small Exchange products. Featured symbols include: /SPRE, /SM75, AND /M2K
Our favorite red head Frank joins Liz and Jenny to discuss all the ins and outs of Small Exchange products. Featured symbols include: /SPRE, /SM75, AND /M2K
We’ve seen choppy markets this year, with three days last week having a greater than 3% high to low range in the major indices. Combine that with the outsized earnings moves and it has been an unpredictable start to the year.However, is it possible that the direction of the market over the course of the week can be determined by the direction of the move to start the week?Join Tom and Tony to find out!
We’ve seen choppy markets this year, with three days last week having a greater than 3% high to low range in the major indices. Combine that with the outsized earnings moves and it has been an unpredictable start to the year.However, is it possible that the direction of the market over the course of the week can be determined by the direction of the move to start the week?Join Tom and Tony to find out!
Trading often with many occurrences is a key part of our trade approach. A challenge in a smaller sized account is doing this with the limited buying power that is available.
Join Tom and Tony today as they cover the benefits of many occurrences, and ways we can achieve this in a tasty bite account.
Trading often with many occurrences is a key part of our trade approach. A challenge in a smaller sized account is doing this with the limited buying power that is available.
Join Tom and Tony today as they cover the benefits of many occurrences, and ways we can achieve this in a tasty bite account.
Discussing $PYPL earnings, Crypto Hyperinflation, the asset mix of each generation and options flow in $FB, $QCOM, $EBAY and $UNG.
Discussing $PYPL earnings, Crypto Hyperinflation, the asset mix of each generation and options flow in $FB, $QCOM, $EBAY and $UNG.
Commissions on equity trading were cut to nothing in the last few years. And while costs for derivatives trading have been reduced, there is still a cost. Yet the derivatives market is the one seeing a faster growth rate and it’s by and large being driven by retail traders. On a separate but related note, actively managed hedge funds vastly underperformed major indices in 2021. What is that telling us? On this week’s show, Tom and Dylan debate what this means.
Commissions on equity trading were cut to nothing in the last few years. And while costs for derivatives trading have been reduced, there is still a cost. Yet the derivatives market is the one seeing a faster growth rate and it’s by and large being driven by retail traders. On a separate but related note, actively managed hedge funds vastly underperformed major indices in 2021. What is that telling us? On this week’s show, Tom and Dylan debate what this means.
Jermal and Pete discuss the history of crypto futures and walk through different methods of creating pairs trades for micro-Bitcoin and micro-Ethereum futures.
Jermal and Pete discuss the history of crypto futures and walk through different methods of creating pairs trades for micro-Bitcoin and micro-Ethereum futures.
Do the same entry and exit mechanics for my stock option strategies translate to options on futures? Katie and Frank discuss the differences between derivatives while placing a short iron condor in Small Metals futures options. Katie gives her take on the best way to get started in options on stocks or futures, and she and Frank look at the nuances to committing that strategy to Small Exchange options.
Do the same entry and exit mechanics for my stock option strategies translate to options on futures? Katie and Frank discuss the differences between derivatives while placing a short iron condor in Small Metals futures options. Katie gives her take on the best way to get started in options on stocks or futures, and she and Frank look at the nuances to committing that strategy to Small Exchange options.
Futures Options allow traders to incorporate probability into the futures trading space. Find out what to keep in mind when trading futures options and discover which asset classes are ripe for opportunity right now.
Futures Options allow traders to incorporate probability into the futures trading space. Find out what to keep in mind when trading futures options and discover which asset classes are ripe for opportunity right now.
Rudy Willingham is the Founder of RudyCorp, which has created content and ads for companies such as Whole Foods, ESPN, Starbucks, and Amazon, to name a few. As a content creator and director, Rudy's work spans all verticals—art, fashion, beauty, sports, food, and more—and adapts effortlessly across platforms, from social channels to TV ads, print ads, billboards. He is the Founder of RudyCorp, He has over 4.3M TikTok followers, and can also be seen on Instagram.
Rudy Willingham is the Founder of RudyCorp, which has created content and ads for companies such as Whole Foods, ESPN, Starbucks, and Amazon, to name a few. As a content creator and director, Rudy's work spans all verticals—art, fashion, beauty, sports, food, and more—and adapts effortlessly across platforms, from social channels to TV ads, print ads, billboards. He is the Founder of RudyCorp, He has over 4.3M TikTok followers, and can also be seen on Instagram.
Runs, long spans of up or down days without a move in the other direction, are rare but not as rare the Black-Scholes model predicts. Today, Jacob joins Tom and Tony to unpack this discrepancy, contrast the Black-Scholes model and the efficient market hypothesis, and look at some fractals.
Runs, long spans of up or down days without a move in the other direction, are rare but not as rare the Black-Scholes model predicts. Today, Jacob joins Tom and Tony to unpack this discrepancy, contrast the Black-Scholes model and the efficient market hypothesis, and look at some fractals.
With the upcoming Google stock split, many options traders will have access to a FAANG stock that was previously out of reach for many due to its high share price and buying power reduction. Any post-split returns or IV changes cannot be mathematically attributed to the stock split itself, and will continue to move in their usual unpredictable natures. Total notional value and open P/L for Google positions will not be affected by the split.
With the upcoming Google stock split, many options traders will have access to a FAANG stock that was previously out of reach for many due to its high share price and buying power reduction. Any post-split returns or IV changes cannot be mathematically attributed to the stock split itself, and will continue to move in their usual unpredictable natures. Total notional value and open P/L for Google positions will not be affected by the split.
After the biggest two-day rally since April 2020, markets are trading within a smaller range today. January rocked $SPY, $QQQ, $IWM, cryptos, thematic ETFs and every sector except energy. Jermal takes a guess at what's coming next.
After the biggest two-day rally since April 2020, markets are trading within a smaller range today. January rocked $SPY, $QQQ, $IWM, cryptos, thematic ETFs and every sector except energy. Jermal takes a guess at what's coming next.
Adjusting our positions over time is a key piece to the puzzle, when it comes to tastytrade management mechanics. Normally when we roll or adjust a position for a credit, it not only adds duration to the trade, but it also reduces our max loss, too. Interestingly, with a strategy like a Broken-Wing Butterfly, however, this is not necessarily the case. With our QQQ BWB, we actually increased our max risk when we closed out the Long Put Vertical Spread portion of the strategy, and today we explain how that happened.
Be sure to connect with Dr. Jim on Twitter!
Adjusting our positions over time is a key piece to the puzzle, when it comes to tastytrade management mechanics. Normally when we roll or adjust a position for a credit, it not only adds duration to the trade, but it also reduces our max loss, too. Interestingly, with a strategy like a Broken-Wing Butterfly, however, this is not necessarily the case. With our QQQ BWB, we actually increased our max risk when we closed out the Long Put Vertical Spread portion of the strategy, and today we explain how that happened.
Be sure to connect with Dr. Jim on Twitter!
Should you fade stocks at their all-time highs or when they've just bounced back from recent lows? Jermal and Frank talk fading the move in technology stocks. The futures dudes put together a backtest on Small Technology (STIX) futures for the last year plus in movement, and they filter for Monday rallies exceeding +1%. Finally, they find out how the market has acted following one of those Mondays to see if a short stock futures position is in order.
Should you fade stocks at their all-time highs or when they've just bounced back from recent lows? Jermal and Frank talk fading the move in technology stocks. The futures dudes put together a backtest on Small Technology (STIX) futures for the last year plus in movement, and they filter for Monday rallies exceeding +1%. Finally, they find out how the market has acted following one of those Mondays to see if a short stock futures position is in order.
Anton joins Liz and Jenny with a study that verifies the best trade ever: The jade lizard!
For more about the Jade lizard check out this helpful tutorial.
Anton joins Liz and Jenny with a study that verifies the best trade ever: The jade lizard!
For more about the Jade lizard check out this helpful tutorial.
Since 1993, there was evidence of larger average positive returns over 45 day periods when implied volatility increased and coincided with falling markets. However, the range of possible returns over 45 days also increased, meaning significant moves to either side became more likely. There was no easy way to take advantage of the larger average return if you increased trade size or decided to trade directional long, and the only way to work through volatile markets is to stay small enough where you are not overexposing your portfolio to big moves in either direction. Tom and Tony explain.
Since 1993, there was evidence of larger average positive returns over 45 day periods when implied volatility increased and coincided with falling markets. However, the range of possible returns over 45 days also increased, meaning significant moves to either side became more likely. There was no easy way to take advantage of the larger average return if you increased trade size or decided to trade directional long, and the only way to work through volatile markets is to stay small enough where you are not overexposing your portfolio to big moves in either direction. Tom and Tony explain.
Premium sellers are naturally betting against large moves in the underlying and generally benefit from whipsaw price movements. But sometimes, for whatever reason, an underlying goes the same direction day after day. Today, Tom and Tony dive into the data to look at how frequent and impactful these protracted runs can be.
Premium sellers are naturally betting against large moves in the underlying and generally benefit from whipsaw price movements. But sometimes, for whatever reason, an underlying goes the same direction day after day. Today, Tom and Tony dive into the data to look at how frequent and impactful these protracted runs can be.
With FTX now valued at $32 billion, a big question arises. Why is it that public markets are being crushed while private valuations are at an all time high when doing essentially the same thing? Join Victor Jones, Tom Sosnoff, and Tony Battista as they get to the bottom of this by breaking down the math.
With FTX now valued at $32 billion, a big question arises. Why is it that public markets are being crushed while private valuations are at an all time high when doing essentially the same thing? Join Victor Jones, Tom Sosnoff, and Tony Battista as they get to the bottom of this by breaking down the math.
The oft-mentioned "January Effect" did not materialize for stocks this month. Investor fear and volatility rose, which culminated in the worst January sell-off for the Nasdaq. What can we expect looking forward?
The oft-mentioned "January Effect" did not materialize for stocks this month. Investor fear and volatility rose, which culminated in the worst January sell-off for the Nasdaq. What can we expect looking forward?
Earnings continue to give us great opportunities to boost our occurrences and take advantage of high implied volatility, especially given the reliable volatility crush that occurs once the earnings announcement has been made. Interestingly, however, even after earnings are out and volatility has dropped a bit, the implied volatility rank (IVR) of the stock might still be elevated. So not only can we sell volatility here (and take advantage of all its advantages), but we don’t have to worry about the binary nature of the earnings announcement itself.
Be sure to connect with Dr. Jim on Twitter!
Earnings continue to give us great opportunities to boost our occurrences and take advantage of high implied volatility, especially given the reliable volatility crush that occurs once the earnings announcement has been made. Interestingly, however, even after earnings are out and volatility has dropped a bit, the implied volatility rank (IVR) of the stock might still be elevated. So not only can we sell volatility here (and take advantage of all its advantages), but we don’t have to worry about the binary nature of the earnings announcement itself.
Be sure to connect with Dr. Jim on Twitter!
Futures, calls, and puts let you buy a market several ways all with their own probabilities of success and profit potential. Frank gives you three simple tools for buying markets with derivatives. Follow the futures dude as he explains how futures operate around an index, and then he shows you how your probabilities and payouts change as you shift from long futures to buying calls or selling puts on those futures.
Futures, calls, and puts let you buy a market several ways all with their own probabilities of success and profit potential. Frank gives you three simple tools for buying markets with derivatives. Follow the futures dude as he explains how futures operate around an index, and then he shows you how your probabilities and payouts change as you shift from long futures to buying calls or selling puts on those futures.
Nick and Katie list and explain the top considerations for trading a stock during earnings. Discover how to determine whether a stock is tradable for earnings and get some tips to keep trade mechanics top of mind. Plus, discover which earnings the tastytrade crew is looking at this week.
Nick and Katie list and explain the top considerations for trading a stock during earnings. Discover how to determine whether a stock is tradable for earnings and get some tips to keep trade mechanics top of mind. Plus, discover which earnings the tastytrade crew is looking at this week.
Proteus Motion has invented an entirely new type of resistance training called 3D resistance that allows for strengthening movements in a way never seen before possible, especially the extreme ranges where people typically get hurt or are weakened. Along with this, the company has invented the first-ever way to measure strength and power which has unlocked a new frontier in diagnosing performance and personalizing fitness, training, and rehabilitation. Sam Miller the Founder & CEO of Proteus Motion. He founded the company after drawing inspiration from his own childhood sports rehab experiences and a mechanical prototype developed at MIT by his father, Larry, in the early nineties.
Proteus Motion has invented an entirely new type of resistance training called 3D resistance that allows for strengthening movements in a way never seen before possible, especially the extreme ranges where people typically get hurt or are weakened. Along with this, the company has invented the first-ever way to measure strength and power which has unlocked a new frontier in diagnosing performance and personalizing fitness, training, and rehabilitation. Sam Miller the Founder & CEO of Proteus Motion. He founded the company after drawing inspiration from his own childhood sports rehab experiences and a mechanical prototype developed at MIT by his father, Larry, in the early nineties.
Last week, we looked at how wide strangles get across various implied volatility (IV) levels, finding that the strikes were pushed out two times further from ATM when volatility is high. Combine this with an increase in initial credit received, and overall return on capital improved in higher IV.Now that we know how changing IV impacts 16 delta strangles, how does the impact translate across various deltas?Join Tom and Tony to find out!
Last week, we looked at how wide strangles get across various implied volatility (IV) levels, finding that the strikes were pushed out two times further from ATM when volatility is high. Combine this with an increase in initial credit received, and overall return on capital improved in higher IV.Now that we know how changing IV impacts 16 delta strangles, how does the impact translate across various deltas?Join Tom and Tony to find out!
It’s been a while since we’ve seen a rising interest rate environment, but the Federal Reserve has made it clear that it intends to consider multiple rate hikes throughout the rest of the year. Traditionally, rising interest rates are viewed as negative for stocks, as they increase the required returns on those stocks, which in turn decreases the value of the stock in the present day.
But could a case be made that rising interest rates will actually be positive for stocks, and send their prices potentially higher? In the Skinny this morning, we discuss and debate both sides of this issue.
Connect with Dr. Jim Schultz on twitter
It’s been a while since we’ve seen a rising interest rate environment, but the Federal Reserve has made it clear that it intends to consider multiple rate hikes throughout the rest of the year. Traditionally, rising interest rates are viewed as negative for stocks, as they increase the required returns on those stocks, which in turn decreases the value of the stock in the present day.
But could a case be made that rising interest rates will actually be positive for stocks, and send their prices potentially higher? In the Skinny this morning, we discuss and debate both sides of this issue.
Connect with Dr. Jim Schultz on twitter
Options have a defined amount of time until they expire. The days until expiration (DTE) plays an important role in the pricing of options and our trading strategy.
Join Tom and Tony today as they cover the ways we look to optimize strategy around time.
Options have a defined amount of time until they expire. The days until expiration (DTE) plays an important role in the pricing of options and our trading strategy.
Join Tom and Tony today as they cover the ways we look to optimize strategy around time.
感谢大家收看我们量化期权系列。这是这个系列的第一次节目，而我们又正好刚跨过2021 进入2022。温故才能知新，所以这期节目就让我们来总结一下2021年各个市场的情况，为新一年的交易做好准备！
Thanks for watching our Quantitative series. Since we just walked into 2022 with brand-new vision, we would like to summarize what happened in the markets in 2021 in our first episode. So let’s buckle up and prepare for another exciting trading year.
JNY joins Engineering the Trade to discuss her unique style of trading and what she would tell her former floor trading self if she could go back in a time machine.
JNY joins Engineering the Trade to discuss her unique style of trading and what she would tell her former floor trading self if she could go back in a time machine.
With 21 DTE in the February cycle today, we look to roll as many positions as we can, and one of these positions is our Broken-Wing Butterfly in QQQ. As this strategy sets up very much like a Ratio Spread, we will look to adjust it in a similar fashion. Specifically, we’ll consider both rolling the entire spread out to the next cycle or taking the Long Put Vertical Spread portion off for near max value. In working through this analysis, we are reminded that defined-risk strategies are great because they put a limit on your max loss, but that “gimme” is not without a corresponding “gotcha”.
Be sure to connect with Dr. Jim on Twitter!
With 21 DTE in the February cycle today, we look to roll as many positions as we can, and one of these positions is our Broken-Wing Butterfly in QQQ. As this strategy sets up very much like a Ratio Spread, we will look to adjust it in a similar fashion. Specifically, we’ll consider both rolling the entire spread out to the next cycle or taking the Long Put Vertical Spread portion off for near max value. In working through this analysis, we are reminded that defined-risk strategies are great because they put a limit on your max loss, but that “gimme” is not without a corresponding “gotcha”.
Be sure to connect with Dr. Jim on Twitter!
Right now, there are many crypto products out there, and since some of them have a high correlation with bitcoin, we can actually use the concept of historical volatility to get “exposure” to other crypto by trading bitcoin futures. Tune in as Anton and Pete provide the HV-adjusted notional exposure of certain crypto when you trade either a mini or micro bitcoin contract.
Right now, there are many crypto products out there, and since some of them have a high correlation with bitcoin, we can actually use the concept of historical volatility to get “exposure” to other crypto by trading bitcoin futures. Tune in as Anton and Pete provide the HV-adjusted notional exposure of certain crypto when you trade either a mini or micro bitcoin contract.
Futures offer a unique opportunity that require a unique set of management mechanics. Mikey and Frank show you how to defend futures trades gone wrong. The guys use examples in Treasury yields and precious metals from the last week to display some bad futures trades, but they walk through how damage can be lessened by either taking losses in the same day or adding short options for the next couple weeks.
Futures offer a unique opportunity that require a unique set of management mechanics. Mikey and Frank show you how to defend futures trades gone wrong. The guys use examples in Treasury yields and precious metals from the last week to display some bad futures trades, but they walk through how damage can be lessened by either taking losses in the same day or adding short options for the next couple weeks.
Tune in for a full Q&A session from the OTC live crew!
Questions range from hedges against downside moves, poor man's covered put/call setups, return on capital estimations, and much more!
Tune in for a full Q&A session from the OTC live crew!
Questions range from hedges against downside moves, poor man's covered put/call setups, return on capital estimations, and much more!
We know that over long periods of time, the expected ratio of up days to down days is 53 to 47, but how much can we expect this ratio to change or vary when looking over shorter time frames, like months?
Key Takeaways:* Over the last month, the S&P 500 is down around 10% with implied volatility reaching their top 3% of historical occurrences. * Along with the amount of intraday reversals we have seen, another unique feature of this selloff is the actual ratio of down days to up days.The long term ratio of seeing an up day versus a down day is 53/47. * The chance of seeing a month with 7 or less up days (as we have just experienced) is 1%. When looking “outlier” months, where there was a heavy concentration of only up days or down days, the outlier month will almost always mean a lot of up days.
We know that over long periods of time, the expected ratio of up days to down days is 53 to 47, but how much can we expect this ratio to change or vary when looking over shorter time frames, like months?
Key Takeaways:* Over the last month, the S&P 500 is down around 10% with implied volatility reaching their top 3% of historical occurrences. * Along with the amount of intraday reversals we have seen, another unique feature of this selloff is the actual ratio of down days to up days.The long term ratio of seeing an up day versus a down day is 53/47. * The chance of seeing a month with 7 or less up days (as we have just experienced) is 1%. When looking “outlier” months, where there was a heavy concentration of only up days or down days, the outlier month will almost always mean a lot of up days.
A futures contract is a binding agreement between a buyer and a seller to buy or sell an asset at a fixed price at a predetermined future month. Just like options, one can trade in and out of them freely and they don’t have to be held until expiration day. Futures offer significant advantages over options and many traders should consider adding these tools to their portfolio.
Join Tom, Tony and Jermal as they take a look at the advantages that futures offer over options and how they can compliment a portfolio.
A futures contract is a binding agreement between a buyer and a seller to buy or sell an asset at a fixed price at a predetermined future month. Just like options, one can trade in and out of them freely and they don’t have to be held until expiration day. Futures offer significant advantages over options and many traders should consider adding these tools to their portfolio.
Join Tom, Tony and Jermal as they take a look at the advantages that futures offer over options and how they can compliment a portfolio.
With the market pricing in a 90% chance of five potential rate hikes, it's time to take a look at how yields of all durations are handling these expectations.
Plus, Jermal highlights options flow in past and future earnings names: $WDC, $HOOD, $X and $TSLA
From just the last few days, we have several earnings trades on in our portfolio. Specifically, we have MSFT, TSLA, and MCD, and interestingly, our approach to each of them is slightly different. Both TSLA and MCD expire this Friday, so they’ll be closed one way or another by then, but while TSLA is a lost cause, MCD is still very much alive with a chance at profitability. As for MSFT, this was more of a JEM-style trade that hasn’t worked yet but still has plenty of time until March expiration.Be sure to connect with Dr. Jim on Twitter!
From just the last few days, we have several earnings trades on in our portfolio. Specifically, we have MSFT, TSLA, and MCD, and interestingly, our approach to each of them is slightly different. Both TSLA and MCD expire this Friday, so they’ll be closed one way or another by then, but while TSLA is a lost cause, MCD is still very much alive with a chance at profitability. As for MSFT, this was more of a JEM-style trade that hasn’t worked yet but still has plenty of time until March expiration.Be sure to connect with Dr. Jim on Twitter!
Pete Mulmat and Chris Vecchio list off the biggest upcoming events and market movements.
Events & Extremes to look out for:
- Euro Breaks to New Lows
- US Treasuries Continue Selloff
- Gold Reverses Course, Again!
Pete Mulmat and Chris Vecchio list off the biggest upcoming events and market movements.
Events & Extremes to look out for:
- Euro Breaks to New Lows
- US Treasuries Continue Selloff
- Gold Reverses Course, Again!
Wondering what happened after yesterday's FOMC? Errol and Frank break down action in interest rates, stocks, and metals after the Fed's announcement.
The guys talk about strategy in futures and options around binary events like these, and they give a historical case for why you might go against large moves immediately following data releases. Get some insight on the Fed's activity as well as some trade ideas for the next meeting.
Wondering what happened after yesterday's FOMC? Errol and Frank break down action in interest rates, stocks, and metals after the Fed's announcement.
The guys talk about strategy in futures and options around binary events like these, and they give a historical case for why you might go against large moves immediately following data releases. Get some insight on the Fed's activity as well as some trade ideas for the next meeting.
The tastytrade crew shares their trade ideas for the day!
Mike sells an ITM put in X for earnings
Katie opens a Euro-Sterling pairs trade
Nick opens a call ratio spread in XOP
Tune in to learn more and a live Q&A as well!
The tastytrade crew shares their trade ideas for the day!
Mike sells an ITM put in X for earnings
Katie opens a Euro-Sterling pairs trade
Nick opens a call ratio spread in XOP
Tune in to learn more and a live Q&A as well!
Frank "the great" joins Liz and Jenny to discuss and breakdown the new Small Exchange /SPRE options and other futures products. Liz, Jenny and Frank place their first ever futures options big lizard in a single click trade!
Frank "the great" joins Liz and Jenny to discuss and breakdown the new Small Exchange /SPRE options and other futures products. Liz, Jenny and Frank place their first ever futures options big lizard in a single click trade!
We’ve seen VIX get above 30 this week due to greater uncertainty across the market, so the potential expected move for the S&P has increased as well.
When volatility expands or contracts, how does that impact the strikes for strangles? How wide do strangles get across varying volatility levels? Join Tom and Tony to find out!
We’ve seen VIX get above 30 this week due to greater uncertainty across the market, so the potential expected move for the S&P has increased as well.
When volatility expands or contracts, how does that impact the strikes for strangles? How wide do strangles get across varying volatility levels? Join Tom and Tony to find out!
An important step when setting up a trade is forming an assumption. This means developing an opinion about the future movement of the underlying.
Join Tom and Tony today as they discuss the different types of assumptions and metrics that can help in the process.
An important step when setting up a trade is forming an assumption. This means developing an opinion about the future movement of the underlying.
Join Tom and Tony today as they discuss the different types of assumptions and metrics that can help in the process.
Executive Director, Melissa Kaufman, and Associate Director, Mike Raab are the heads of Northwestern University's Garage. The Garage is a community and physical space for every Northwestern student interested in entrepreneurship to learn, iterate, & grow. Melissa and Mike have written a new book, The No B.S. Guide for Student Entrepreneurs, listening to their interview, I think this book can help any entrepreneur at any age discover great advice and lessons for starting a business. If you want to start a business this is a must-read.Learn more about The Garage at Northwestern
Executive Director, Melissa Kaufman, and Associate Director, Mike Raab are the heads of Northwestern University's Garage. The Garage is a community and physical space for every Northwestern student interested in entrepreneurship to learn, iterate, & grow. Melissa and Mike have written a new book, The No B.S. Guide for Student Entrepreneurs, listening to their interview, I think this book can help any entrepreneur at any age discover great advice and lessons for starting a business. If you want to start a business this is a must-read.Learn more about The Garage at Northwestern
The Fed just concluded their two-day meeting with a Dovish stance. How's that going to affect the $QQQ/$IWM relationship? Jermal explains.
The Fed just concluded their two-day meeting with a Dovish stance. How's that going to affect the $QQQ/$IWM relationship? Jermal explains.
There are two schools of thought when it comes to vetting qualified decision makers. One was is via academic credentials and explicit endorsement from other experts. The other way is allowing someone to take a product to market and let the market decide. Which way is better? Tom and Dylan debate both on this week’s podcast.
There are two schools of thought when it comes to vetting qualified decision makers. One was is via academic credentials and explicit endorsement from other experts. The other way is allowing someone to take a product to market and let the market decide. Which way is better? Tom and Dylan debate both on this week’s podcast.
Delta-neutral strategies are ideal for traders who don’t want to speculate on direction. Today, Jermal and Pete walk through the concept of delta neutrality and list common neutral strategies traders can utilize with futures options.
Get the setups of these trades and discover how delta neutral positions will become directional if the Futures trend in one direction.
Delta-neutral strategies are ideal for traders who don’t want to speculate on direction. Today, Jermal and Pete walk through the concept of delta neutrality and list common neutral strategies traders can utilize with futures options.
Get the setups of these trades and discover how delta neutral positions will become directional if the Futures trend in one direction.
While derivatives trading can sound intimidating, Katie and Frank break it down as getting paid in different ways on the same old markets.
Our experienced futures traders show you how to use calls and puts on futures to strategize with changing probabilities of success and profit potentials. Finally, they conclude today's segment by placing a first futures options trade in a small, low-risk manner.
While derivatives trading can sound intimidating, Katie and Frank break it down as getting paid in different ways on the same old markets.
Our experienced futures traders show you how to use calls and puts on futures to strategize with changing probabilities of success and profit potentials. Finally, they conclude today's segment by placing a first futures options trade in a small, low-risk manner.
When the market dips, investors tend to step in at some point and buy products they like. The tastytrade crew explains how we can do so with options strategies that are not at the mercy of an IV crush today.
Tune in for a live Q&A session as well!
When the market dips, investors tend to step in at some point and buy products they like. The tastytrade crew explains how we can do so with options strategies that are not at the mercy of an IV crush today.
Tune in for a live Q&A session as well!
There have been pretty significant intraday and overnight price swings across the market over the past few weeks. What is considered a “bad” intraday move and how likely is it for an asset to recover from one? Similarly, what is a “bad” overnight move? Is an asset any more or less likely to recover from a “bad” overnight move compared to a “bad” intraday move?
Join Tom, Tony and Julia as they use probability distributions to compare intraday and overnight moves.
There have been pretty significant intraday and overnight price swings across the market over the past few weeks. What is considered a “bad” intraday move and how likely is it for an asset to recover from one? Similarly, what is a “bad” overnight move? Is an asset any more or less likely to recover from a “bad” overnight move compared to a “bad” intraday move?
Join Tom, Tony and Julia as they use probability distributions to compare intraday and overnight moves.
A jade lizard came from Liz and Jenny that created a middle-ground of two strategies: neutral price bias + no risk to the upside. This combination lets people capitalize on opportunity created by falling markets and high IV while giving the peace of mind that a whipsaw-up will not hurt you. Learn more about this strategy in today's episode with Tom and Tony.
A jade lizard came from Liz and Jenny that created a middle-ground of two strategies: neutral price bias + no risk to the upside. This combination lets people capitalize on opportunity created by falling markets and high IV while giving the peace of mind that a whipsaw-up will not hurt you. Learn more about this strategy in today's episode with Tom and Tony.
What's the real cause of the current market fear? We examine all of the volatility regimes over the past year, the rotation from cyclicals to defensives and potential policy mistakes via the moves in the yield curve. Tune in!
What's the real cause of the current market fear? We examine all of the volatility regimes over the past year, the rotation from cyclicals to defensives and potential policy mistakes via the moves in the yield curve. Tune in!
Assignment is part of the process of selling premium, and a cost of doing business in some regards. And while we’re usually able to avoid assignment for the most part (even with an upcoming dividend), there will still be times when an in-the-money position expires, and we are assigned.
So what happens in a situation where we have two legs of a vertical spread that are both in-the-money, and they are assigned? This very thing just happened to our AMZN position, so we unpack the details around the actual assignment and its impact on our position’s profit or loss.
[Be sure to connect with Dr. Jim on Twitter!
Assignment is part of the process of selling premium, and a cost of doing business in some regards. And while we’re usually able to avoid assignment for the most part (even with an upcoming dividend), there will still be times when an in-the-money position expires, and we are assigned.
So what happens in a situation where we have two legs of a vertical spread that are both in-the-money, and they are assigned? This very thing just happened to our AMZN position, so we unpack the details around the actual assignment and its impact on our position’s profit or loss.
[Be sure to connect with Dr. Jim on Twitter!
Pete and James take a look at today's market action before diving into options trade strategies for Crude Oil (/CL). They pair breakdown both defined and undefined risk strategies before trading a skewed Iron Condor in the March Crude Oil options.
Pete and James take a look at today's market action before diving into options trade strategies for Crude Oil (/CL). They pair breakdown both defined and undefined risk strategies before trading a skewed Iron Condor in the March Crude Oil options.
After going over the contract specs for Small Options, Jermal and Frank show you how to get started in futures options with small, simple strategies.
The guys talk about the hurdles of early exercise and physically-settled options before remedying some of those worries with the simplified Small Options that settle to cash. Check out the new Small Options, and be one of the first to trade them at the Small Exchange.
After going over the contract specs for Small Options, Jermal and Frank show you how to get started in futures options with small, simple strategies.
The guys talk about the hurdles of early exercise and physically-settled options before remedying some of those worries with the simplified Small Options that settle to cash. Check out the new Small Options, and be one of the first to trade them at the Small Exchange.
The SKEW index gives us an idea of how outlier premium is pricing in the potential for a high-velocity move. Tune in to learn how we can use this information, along with VVIX! Live Q&A as well!
The SKEW index gives us an idea of how outlier premium is pricing in the potential for a high-velocity move. Tune in to learn how we can use this information, along with VVIX! Live Q&A as well!
Anton joins Liz and Jenny and brings up a discussion on YOLO trades. They talk about probabilities over time when buying low cost call spreads. They look at trade ideas in IWM and SPY.IWM, SPY
Anton joins Liz and Jenny and brings up a discussion on YOLO trades. They talk about probabilities over time when buying low cost call spreads. They look at trade ideas in IWM and SPY.IWM, SPY
The expected move gives you a single expectation for volatility and price range by the end of that time period.
Since every timeframe has an expected move associated with it, what is the historic realized movement we have seen over a certain time period and how does it compare to the implied, or expected move?
Join Tom and Tony, as they explain how we can use the concept of expected move to understand why we trade longer duration options as our default strategy.
The expected move gives you a single expectation for volatility and price range by the end of that time period.
Since every timeframe has an expected move associated with it, what is the historic realized movement we have seen over a certain time period and how does it compare to the implied, or expected move?
Join Tom and Tony, as they explain how we can use the concept of expected move to understand why we trade longer duration options as our default strategy.
Crypto is believed to be a diversifier for a traditional equity portfolio, but this year, it does not seem to be offering much assistance to overall performance.
With both the equity and crypto markets struggling to find an uptick to start 2022 off, we look at how the correlation between these two markets has changed in recent months.
Crypto is believed to be a diversifier for a traditional equity portfolio, but this year, it does not seem to be offering much assistance to overall performance.
With both the equity and crypto markets struggling to find an uptick to start 2022 off, we look at how the correlation between these two markets has changed in recent months.
With the current state of the market, what signals should traders rely on? Does investing in meme stocks, like AMC, make retail traders decentralized activists if there is no accountability for new business strategies?
In today's episode of Hear Me Out, Victor Jones, Tom Sosnoff, and Tony Battista unpack these questions and offer advice on where traders can go next in this market.
With the current state of the market, what signals should traders rely on? Does investing in meme stocks, like AMC, make retail traders decentralized activists if there is no accountability for new business strategies?
In today's episode of Hear Me Out, Victor Jones, Tom Sosnoff, and Tony Battista unpack these questions and offer advice on where traders can go next in this market.
Jermal puts today's market sell-off in perspective by taking a look at the relationships between $VIX, $RVX and $VXN. Plus, the show highlights option flow in $COIN, $NKE, $NVDA and $VIX.
Jermal puts today's market sell-off in perspective by taking a look at the relationships between $VIX, $RVX and $VXN. Plus, the show highlights option flow in $COIN, $NKE, $NVDA and $VIX.
With an iron condor, it can be really tempting to leg out of the winning side, when the market moves sharply in one direction. However, by keeping that side on and the strategy intact, not only are you allowing yourself to collect more credits on future rolls, but you’re also giving yourself the best possible chance to keep the whole position on entirely. With the market falling fast, we see that exact scenario with our SPY iron condor.
Be sure to connect with Dr. Jim on Twitter!
With an iron condor, it can be really tempting to leg out of the winning side, when the market moves sharply in one direction. However, by keeping that side on and the strategy intact, not only are you allowing yourself to collect more credits on future rolls, but you’re also giving yourself the best possible chance to keep the whole position on entirely. With the market falling fast, we see that exact scenario with our SPY iron condor.
Be sure to connect with Dr. Jim on Twitter!
Jermal and Pete examine the Monday market madness. With equities melting, what is happening in other asset classes? Tune in as they cover metals, the Euro, E-Minis, and more.
Jermal and Pete examine the Monday market madness. With equities melting, what is happening in other asset classes? Tune in as they cover metals, the Euro, E-Minis, and more.
Stock and futures options might be more similar than you think! Mikey and Frank compare specifications and strategies to show you how to trade either derivatives market.
The guys define options from a broad perspective and then dive deep on the contract specs for stock options versus futures options. Finally, Frank walks through a couple examples of futures options strategies in the new Small Metals (SPRE) futures options.
Stock and futures options might be more similar than you think! Mikey and Frank compare specifications and strategies to show you how to trade either derivatives market.
The guys define options from a broad perspective and then dive deep on the contract specs for stock options versus futures options. Finally, Frank walks through a couple examples of futures options strategies in the new Small Metals (SPRE) futures options.
When implied volatility futures contracts are in backwardation, near-term cycles are more expensive than long-term cycles. The overall market typically has larger than normal moves when this happens, and backwardation affects products like UVXY & VXX in an interesting way.
Tune in to learn more with a live Q&A as well!
When implied volatility futures contracts are in backwardation, near-term cycles are more expensive than long-term cycles. The overall market typically has larger than normal moves when this happens, and backwardation affects products like UVXY & VXX in an interesting way.
Tune in to learn more with a live Q&A as well!
Today we have a special Bootstrapping in America. It's all about lessons learned from a lifetime of entrepreneurship. We have the Founder & CEO of United Scrap Metal, Marsha Serlin, which was founded in 1978 with $200 and a rental truck, and the Founder & Chairman Emeritus of Belgravia Group Ltd., a real estate company that has been in business since 1947. Marsha and Buzz share their wisdom about starting a business to challenges they've faced and conquered along the way.
unitedscrap.combelgraviagroup.com
Today we have a special Bootstrapping in America. It's all about lessons learned from a lifetime of entrepreneurship. We have the Founder & CEO of United Scrap Metal, Marsha Serlin, which was founded in 1978 with $200 and a rental truck, and the Founder & Chairman Emeritus of Belgravia Group Ltd., a real estate company that has been in business since 1947. Marsha and Buzz share their wisdom about starting a business to challenges they've faced and conquered along the way.
unitedscrap.combelgraviagroup.com
Traders and investors alike utilize the 200 day moving average to determine the direction of a long-term trend and identify key levels. The 200 day moving average has become so common that it can sometimes be seen as a self-fulfilling prophecy due to buyers and sellers setting orders at these levels.
With the Nasdaq having closed below the 200 day moving average for the first time since March 3rd, 2020, what comes next?
Based on the past two decades of market action, we will try to uncover this. Do we see a bounce? How long might it take to cross above the moving average? What are the most likely future returns based on the past.
Join Tom and Tony to find out!
Traders and investors alike utilize the 200 day moving average to determine the direction of a long-term trend and identify key levels. The 200 day moving average has become so common that it can sometimes be seen as a self-fulfilling prophecy due to buyers and sellers setting orders at these levels.
With the Nasdaq having closed below the 200 day moving average for the first time since March 3rd, 2020, what comes next?
Based on the past two decades of market action, we will try to uncover this. Do we see a bounce? How long might it take to cross above the moving average? What are the most likely future returns based on the past.
Join Tom and Tony to find out!
Well as tastytraders, a framework for conditional probability exists for us almost every single trading day, as we analyze the probability that a position will reverse back, given that one of our strikes has been tested. Interestingly, using a Market Measures from just a few months ago, we learned that while there is always a chance the market will indeed reverse, the stock price movement following a test is mostly random and unpredictable. As a result, sticking with the program of rolling the untested side is still the move to make.
Be sure to connect with Dr. Jim on Twitter!
Well as tastytraders, a framework for conditional probability exists for us almost every single trading day, as we analyze the probability that a position will reverse back, given that one of our strikes has been tested. Interestingly, using a Market Measures from just a few months ago, we learned that while there is always a chance the market will indeed reverse, the stock price movement following a test is mostly random and unpredictable. As a result, sticking with the program of rolling the untested side is still the move to make.
Be sure to connect with Dr. Jim on Twitter!
Some may find that trading their own account is a mixture of being rewarding, challenging, educational, and empowering. Trading however does not need to be a full time job. Join Tom and Tony today as they cover ways to stay on top of your account with time saving tips.
Some may find that trading their own account is a mixture of being rewarding, challenging, educational, and empowering. Trading however does not need to be a full time job. Join Tom and Tony today as they cover ways to stay on top of your account with time saving tips.
这是我们浅尝期权系列（初级）的最后一个章节。我们在之前的总结的基础上加上了希腊值的应用，以便于大家能够更深刻的体会曾经谈过的一些模糊的概念。比如如何区分买入和卖出隐含波动率的策略，或者为什么收取时间价值比其他参数更重要等等。Delta, Theta, Vega, Gamma这四种希腊值是在日常交易中应用最多的。希望大家能有所收获，预祝大家交易顺利！
This is the last chapter of this entry-level series. We summarize all the strategies by applying the greeks that we just learned. It becomes easier for options traders to understand many confusing concepts we mentioned before, such as how to differentiate the strategies to sell and buy IV or why collecting time value is by far the most important criterion regarding trade selection. Delta, Theta, Vega, and Gamma are the most used greeks in real-life trading. Good luck and safe trading!
Liz joins Engineering the Trade to talk about life as a former floor trader, her stint in improv comedy and to set the record straight about the real originators of the Jade Lizard.
Liz joins Engineering the Trade to talk about life as a former floor trader, her stint in improv comedy and to set the record straight about the real originators of the Jade Lizard.
With defined-risk positions that haven’t come back, you’ll oftentimes have to close them out at expiration. When doing so, it’s very helpful to remember that there is no extrinsic value left in the options (because you’re at expiration), and their price is purely intrinsic value. Understanding this can help you process through your closing orders, as the most any of your defined-risk strategies can sell for is their theoretical max value.
Be sure to connect with Dr. Jim on Twitter!
With defined-risk positions that haven’t come back, you’ll oftentimes have to close them out at expiration. When doing so, it’s very helpful to remember that there is no extrinsic value left in the options (because you’re at expiration), and their price is purely intrinsic value. Understanding this can help you process through your closing orders, as the most any of your defined-risk strategies can sell for is their theoretical max value.
Be sure to connect with Dr. Jim on Twitter!
The standard deviation is to futures what implied volatility is to options, so Mikey and Frank show you how to use the SD to enter and exit day trades. The guys divulge everything from calculations behind the measure to working it into your charts at home, and they conclude the show by giving you a real-world example of a market outside its standard deviation with mechanics on how they'd trade it.
The standard deviation is to futures what implied volatility is to options, so Mikey and Frank show you how to use the SD to enter and exit day trades. The guys divulge everything from calculations behind the measure to working it into your charts at home, and they conclude the show by giving you a real-world example of a market outside its standard deviation with mechanics on how they'd trade it.
The more time there is until the expiration of our contracts in a ratio spread or broken wing butterfly, the less value we can expect to extract from our embedded long spreads on an ITM move. The opposite is true for short-term spreads.
Tune in to learn more about this concept, with a live Q&A session as well!
The more time there is until the expiration of our contracts in a ratio spread or broken wing butterfly, the less value we can expect to extract from our embedded long spreads on an ITM move. The opposite is true for short-term spreads.
Tune in to learn more about this concept, with a live Q&A session as well!
In the month of January we have experienced an above average amount of intraday reversals. The number of occurrences and probability of seeing these reversals were identically symmetrical.Yesterday, we experienced one of the rarest “reversal”-type days where the S&P 500 rallied on the open to be up almost 1% intraday and then proceeded to sell off to the point where we closed down 1% on the day. Other indexes were hit harder. The Russell 2000 sold off around 90 points, or over 4%, in the matter of a few hours.
Join Tom and Tony, as they walk us through the rarity of such a reversal and when to expect them.
In the month of January we have experienced an above average amount of intraday reversals. The number of occurrences and probability of seeing these reversals were identically symmetrical.Yesterday, we experienced one of the rarest “reversal”-type days where the S&P 500 rallied on the open to be up almost 1% intraday and then proceeded to sell off to the point where we closed down 1% on the day. Other indexes were hit harder. The Russell 2000 sold off around 90 points, or over 4%, in the matter of a few hours.
Join Tom and Tony, as they walk us through the rarity of such a reversal and when to expect them.
Traders are watching homebuilder stocks as rising interest rates threaten to shake up a sector that surged to record highs in 2021. With the 10-year yield pushing above 1.85%, it’s possible that expensive borrowing costs may deter homebuyers and put a dent in these stocks.
Join Tom, Tony and Jermal as they discuss ways to play the homebuilding sector and the bond market.
Traders are watching homebuilder stocks as rising interest rates threaten to shake up a sector that surged to record highs in 2021. With the 10-year yield pushing above 1.85%, it’s possible that expensive borrowing costs may deter homebuyers and put a dent in these stocks.
Join Tom, Tony and Jermal as they discuss ways to play the homebuilding sector and the bond market.
Markets ($SPY, $QQQ) are attempting a rebound after a two-day selloff, but will it last? @jermalchandler takes a look at option flow in $STLD, $GM, $FXI and $AA. Also examining online sports bettors favorite sportsbook sites. Tune in!
Markets ($SPY, $QQQ) are attempting a rebound after a two-day selloff, but will it last? @jermalchandler takes a look at option flow in $STLD, $GM, $FXI and $AA. Also examining online sports bettors favorite sportsbook sites. Tune in!
With earnings, we typically treat these events as accelerated opportunities to get into our normal 45DTE trades, with defined-risk or undefined-risk strategies, using the earnings event itself as a catalyst to the trade. But using those general principles, you’ll then want to drill down into the specific details of what you want to do with a specific stock and strategy for your account. For NFLX earnings tonight, we walk through this process of analysis.
Here is another segment about Expected Move Butterflies.
Be sure to connect with Dr. Jim on Twitter!
Pete and James dive into a strategic checklist, setting up what they look for when trading futures options. The guys define probability of touch and probability of profit and how they play into understanding overlaying options strategies on futures products. To wrap up they look at a trade in Euro Futures options (/6E) and 2-Year Treasury futures options (/ZT), favoring the liquidity in Euro.
Pete and James dive into a strategic checklist, setting up what they look for when trading futures options. The guys define probability of touch and probability of profit and how they play into understanding overlaying options strategies on futures products. To wrap up they look at a trade in Euro Futures options (/6E) and 2-Year Treasury futures options (/ZT), favoring the liquidity in Euro.
Spread trades can offer a unique opportunity on the markets you already trade, but they require their own mechanics. Errol and Frank show you how to manage spreads. The futures dudes use interest rate markets to create an example trade that is long S30Y and short S2Y, and then they show you how they would manage the position for a profit or loss given the amount of movement in its underlying markets.
Spread trades can offer a unique opportunity on the markets you already trade, but they require their own mechanics. Errol and Frank show you how to manage spreads. The futures dudes use interest rate markets to create an example trade that is long S30Y and short S2Y, and then they show you how they would manage the position for a profit or loss given the amount of movement in its underlying markets.
The tastytrade crew shares their trade ideas for the day!
Mike sells an iron condor in NFLX for earnings
Katie opens a Euro-Sterling pairs trade
Nick opens a call broken wing butterfly in SPX
Tune in to learn more and a live Q&A as well!
The tastytrade crew shares their trade ideas for the day!
Mike sells an iron condor in NFLX for earnings
Katie opens a Euro-Sterling pairs trade
Nick opens a call broken wing butterfly in SPX
Tune in to learn more and a live Q&A as well!
It's Red Shirt Thursday, Frank joins the girls and brings on the TUB spread. They talk about interest rates, yield curves, and how to use small exchange products to play for the steepening or flattening of the curve./S2Y, /S30Y
It's Red Shirt Thursday, Frank joins the girls and brings on the TUB spread. They talk about interest rates, yield curves, and how to use small exchange products to play for the steepening or flattening of the curve./S2Y, /S30Y
At tasty, we champion managing trades at 21 DTE to decrease P/L volatility and increase occurrences. In a textbook tasty trade, we enter at 45 DTE and manage at 21 DTE, meaning the trade is held for 24 days at most. Since theta grows as options near expiration, do the profits tend to come in towards the end of the 24 days? Or is the timing of profits totally random? Join Tom and Tony to find out.
At tasty, we champion managing trades at 21 DTE to decrease P/L volatility and increase occurrences. In a textbook tasty trade, we enter at 45 DTE and manage at 21 DTE, meaning the trade is held for 24 days at most. Since theta grows as options near expiration, do the profits tend to come in towards the end of the 24 days? Or is the timing of profits totally random? Join Tom and Tony to find out.
Vertical spreads are small account appropriate, defined risk trades, used for directional assumptions. These strategies are also the building blocks for many other strategies like Iron Condors, Iron Flies, and Jade Lizards.
Join Tom and Tony today as they explain how Vertical Spreads work.
Vertical spreads are small account appropriate, defined risk trades, used for directional assumptions. These strategies are also the building blocks for many other strategies like Iron Condors, Iron Flies, and Jade Lizards.
Join Tom and Tony today as they explain how Vertical Spreads work.
The Nasdaq ($QQQ) hovers near correction levels as Oil and Gold lift off. $SOFI is one of many fintechs causing problems for traditional banks. Also, looking at option flow in $SLV, $DWAC, $CVNA and $CSX
The Nasdaq ($QQQ) hovers near correction levels as Oil and Gold lift off. $SOFI is one of many fintechs causing problems for traditional banks. Also, looking at option flow in $SLV, $DWAC, $CVNA and $CSX
GameStop was not a stock on anyone’s radar until about one year ago when it suddenly became the most popular stock. It was the birth of the meme stock. A year later, there’s still no clear answer what caused it or if it can happen again. This week, Tom and Dylan reflect on the events of a year ago and the likelihood of it happening again.
GameStop was not a stock on anyone’s radar until about one year ago when it suddenly became the most popular stock. It was the birth of the meme stock. A year later, there’s still no clear answer what caused it or if it can happen again. This week, Tom and Dylan reflect on the events of a year ago and the likelihood of it happening again.
The U.S. Government Debt market is $15 trillion and just keeps getting bigger. It is also one of the most liquid markets in the world trading roughly $550B a day in 2018.
Using the Yield Curve, we can see the interest rates of various duration debt securities.
In today's episode, Jermal and Pete discuss how to use interest rate futures products to gain exposure to changes in yields. Tune in as they list and explain the available futures, their respective contract specs, and things to keep in mind when trading them.
The U.S. Government Debt market is $15 trillion and just keeps getting bigger. It is also one of the most liquid markets in the world trading roughly $550B a day in 2018.
Using the Yield Curve, we can see the interest rates of various duration debt securities.
In today's episode, Jermal and Pete discuss how to use interest rate futures products to gain exposure to changes in yields. Tune in as they list and explain the available futures, their respective contract specs, and things to keep in mind when trading them.
Bonds can present great opportunity, but they're often too confusing to trade. Katie and Frank make trading rates easy with a clear convo on price vs yield. Katie relates her reluctance getting started in interest rates to those new traders out there before illuminating the relationship between a bond's price and its actual yield or interest rate. The duo concludes the segment with an easy takeaway helping you to simply buy or sell in accordance with an assumed rise or fall in rates.
Bonds can present great opportunity, but they're often too confusing to trade. Katie and Frank make trading rates easy with a clear convo on price vs yield. Katie relates her reluctance getting started in interest rates to those new traders out there before illuminating the relationship between a bond's price and its actual yield or interest rate. The duo concludes the segment with an easy takeaway helping you to simply buy or sell in accordance with an assumed rise or fall in rates.
When it comes to ratio spreads & calendarized trades, we can profit if the stock moves in any direction in most cases. Today the tastytrade crew walks through specific examples with some great visuals to explain how a ratio spread can be bullish or bearish, depending on the credit received upfront.
Tune in to learn more with a live Q&A as well!
When it comes to ratio spreads & calendarized trades, we can profit if the stock moves in any direction in most cases. Today the tastytrade crew walks through specific examples with some great visuals to explain how a ratio spread can be bullish or bearish, depending on the credit received upfront.
Tune in to learn more with a live Q&A as well!
The Better Choice Company is a rapidly growing animal health & wellness company committed to leading the industry shift toward pet products and services that help dogs and cats live healthier, happier and longer lives. They sell the majority of their dog and cat food and treats under the Halo and TruDog brands. They take an alternative, nutrition-based approach to animal health relative to conventional dog and cat food offerings and position their portfolio of brands to benefit from the mainstream trends of growing pet humanization and consumer focus on health and wellness.
The Better Choice Company is a rapidly growing animal health & wellness company committed to leading the industry shift toward pet products and services that help dogs and cats live healthier, happier and longer lives. They sell the majority of their dog and cat food and treats under the Halo and TruDog brands. They take an alternative, nutrition-based approach to animal health relative to conventional dog and cat food offerings and position their portfolio of brands to benefit from the mainstream trends of growing pet humanization and consumer focus on health and wellness.
The Black-Scholes model lies beneath all the probabilities that tastytraders rely on to make decisions. In this model, future asset prices follow log-normal distributions, with the distribution generally getting more disperse as volatility increases, but only up to a point.
Today, Jacob joins Tom and Tony to dive deep into the Black-Scholes model and explore this surprising result of very high volatility.
The Black-Scholes model lies beneath all the probabilities that tastytraders rely on to make decisions. In this model, future asset prices follow log-normal distributions, with the distribution generally getting more disperse as volatility increases, but only up to a point.
Today, Jacob joins Tom and Tony to dive deep into the Black-Scholes model and explore this surprising result of very high volatility.
Learn the importance of minimizing emotion while trading. Know the probabilities of independent trades going against you, and how to combat this with a set strategy and small positions.
As a new trader, keeping a short list of good practices can save from certain situations.
The following three guidelines/truths can help keep you on the right track:
- Keep position sizing small especially when IV is deflated.
- Tomorrow is always a mystery day in terms of price direction.
- If you are going to cap your risk, buy the long wing far out (15 delta or less) to make sure that you don’t cancel out the theta and IV contraction of the short option.
Join Tom and Tony as they explain.
Learn the importance of minimizing emotion while trading. Know the probabilities of independent trades going against you, and how to combat this with a set strategy and small positions.
As a new trader, keeping a short list of good practices can save from certain situations.
The following three guidelines/truths can help keep you on the right track:
- Keep position sizing small especially when IV is deflated.
- Tomorrow is always a mystery day in terms of price direction.
- If you are going to cap your risk, buy the long wing far out (15 delta or less) to make sure that you don’t cancel out the theta and IV contraction of the short option.
Join Tom and Tony as they explain.
Taking a look once again at the relationship between bond yields and stocks as the 10yr climbs above 1.85%. Did $MSFT make the right move in buying $ATVI? Also, breaking down at option flow in $MSFT, $ARKF, $VIX and $KBH
Taking a look once again at the relationship between bond yields and stocks as the 10yr climbs above 1.85%. Did $MSFT make the right move in buying $ATVI? Also, breaking down at option flow in $MSFT, $ARKF, $VIX and $KBH
Often you will find yourself in a situation where 45DTE isn’t available for trade entry, and instead you’re faced with around 30DTE in the front month and 60DTE in the back month. In this spot, how do you decide between the two different expiration cycles? Today, we offer up a few things to consider when deciding between the shorter front month and the longer back month for a new position, and it all begins with whether the trade in question is defined-risk or undefined-risk in nature.Be sure to connect with Dr. Jim on Twitter! Dr. James Schultz @jschultzf3
Often you will find yourself in a situation where 45DTE isn’t available for trade entry, and instead you’re faced with around 30DTE in the front month and 60DTE in the back month. In this spot, how do you decide between the two different expiration cycles? Today, we offer up a few things to consider when deciding between the shorter front month and the longer back month for a new position, and it all begins with whether the trade in question is defined-risk or undefined-risk in nature.Be sure to connect with Dr. Jim on Twitter! Dr. James Schultz @jschultzf3
Pete Mulmat and Chris Vecchio list off the biggest upcoming events and market movements.
- Events & Extremes to look out for:
- FOMC Rate Decision January 26th
- UK Core CPI & Aussie Unemployment
- US Dollar Rebounds
- US Treasury Selloff Accelerates
- Gold Rally Fizzles
Pete Mulmat and Chris Vecchio list off the biggest upcoming events and market movements.
- Events & Extremes to look out for:
- FOMC Rate Decision January 26th
- UK Core CPI & Aussie Unemployment
- US Dollar Rebounds
- US Treasury Selloff Accelerates
- Gold Rally Fizzles
All this interest rate talk got you wondering how to buy in? Jermal and Frank cover the recent action in yields, where you can buy them, and how you can add options to the mix. The guys give context from the Fed and their historical rate hikes as well as the last decade's worth of prices in the yield market. Finally, they decide how they want to strategize around the simple idea of buying interest rates.
All this interest rate talk got you wondering how to buy in? Jermal and Frank cover the recent action in yields, where you can buy them, and how you can add options to the mix. The guys give context from the Fed and their historical rate hikes as well as the last decade's worth of prices in the yield market. Finally, they decide how they want to strategize around the simple idea of buying interest rates.
When one equity buys another like the potential MSFT & ATVI buyout, you can see interesting things happen in the options market - the tastytrade crew takes a look at this today with a live Q&A session as well!
When one equity buys another like the potential MSFT & ATVI buyout, you can see interesting things happen in the options market - the tastytrade crew takes a look at this today with a live Q&A session as well!
Anton joins Liz and Jenny as they break down the 2008 markets and the real risk of selling premium in a down move.
Anton joins Liz and Jenny as they break down the 2008 markets and the real risk of selling premium in a down move.
In this Market Measure study the research team emulated a “stress-test” of an options portfolio in a worst-case scenario where we used 2008 market data that included a 50% drop in the S&P 500 as our entire data set. Within that reality, staying small was the only thing that drastically reduced your probability of a large drawdown even if drawdowns still happened. Tom and Tony explain this in depth in today’s Market Measure!
In this Market Measure study the research team emulated a “stress-test” of an options portfolio in a worst-case scenario where we used 2008 market data that included a 50% drop in the S&P 500 as our entire data set. Within that reality, staying small was the only thing that drastically reduced your probability of a large drawdown even if drawdowns still happened. Tom and Tony explain this in depth in today’s Market Measure!
Conditional value at risk, or CVaR, is an investment statistic that can be useful for understanding the risk associated with a trade. Typically it is calculated using historical data from similar trade, but in the Black-Scholes model it can also be derived from Implied Volatility. Today, Tom and Tony check the data to see how Implied CVaR does at anticipating risk.
Conditional value at risk, or CVaR, is an investment statistic that can be useful for understanding the risk associated with a trade. Typically it is calculated using historical data from similar trade, but in the Black-Scholes model it can also be derived from Implied Volatility. Today, Tom and Tony check the data to see how Implied CVaR does at anticipating risk.
How high can interest rates go? Tom, Tony and Victor discuss hypotheticals on what the FED is going to do next and what will happen to the US markets if interest rates go negative. Victor wonders if we are going to get back to the levels we were at pre-pandemic. Do we believe they will raise rates 4 or more times next year? What happens if the FED keeps lowering interest rates and what will that do to asset pricing and the value of stock. Stay tuned.
How high can interest rates go? Tom, Tony and Victor discuss hypotheticals on what the FED is going to do next and what will happen to the US markets if interest rates go negative. Victor wonders if we are going to get back to the levels we were at pre-pandemic. Do we believe they will raise rates 4 or more times next year? What happens if the FED keeps lowering interest rates and what will that do to asset pricing and the value of stock. Stay tuned.
As out-of-the-money premium sellers, extrinsic value is the name of the game. Specifically, the textbook end goal is for the extrinsic value of our positions to fall to zero, which they would do if they remained OTM, and we held them until expiration. But along the way, even if a position is OTM, its extrinsic value can increase, which would work against our profitability. As we look at our Broken-Wing Butterfly in QQQ, we see this exact phenomenon playing out in real-time.
Be sure to connect with Dr. Jim on Twitter!
As out-of-the-money premium sellers, extrinsic value is the name of the game. Specifically, the textbook end goal is for the extrinsic value of our positions to fall to zero, which they would do if they remained OTM, and we held them until expiration. But along the way, even if a position is OTM, its extrinsic value can increase, which would work against our profitability. As we look at our Broken-Wing Butterfly in QQQ, we see this exact phenomenon playing out in real-time.
Be sure to connect with Dr. Jim on Twitter!
When we enter calendar and diagonal spreads, we are selling an option against our long option to reduce cost basis - this short option remains mobile through the duration of the trade, and we can move it vertically or horizontally to continue to defend moves against us.
Tune in for a live Q&A session as well!
When we enter calendar and diagonal spreads, we are selling an option against our long option to reduce cost basis - this short option remains mobile through the duration of the trade, and we can move it vertically or horizontally to continue to defend moves against us.
Tune in for a live Q&A session as well!
We typically manage breached positions by either rolling, holding, or closing the trades.
However, as we have shown in previous studies, strike breaches won’t necessarily affect the profit potential of different strategies in the same way.
Join Tom and Thomas as they discuss how breaches affect the POPs of different types of SPY strangles.
We typically manage breached positions by either rolling, holding, or closing the trades.
However, as we have shown in previous studies, strike breaches won’t necessarily affect the profit potential of different strategies in the same way.
Join Tom and Thomas as they discuss how breaches affect the POPs of different types of SPY strangles.
Volatility expansion is dependent on the magnitude of price movements and not the direction of price movement. Join Tom, Thomas, and Jermal as they give you the ins and outs of volatility expansion and the relationship between price and implied volatility.
Volatility expansion is dependent on the magnitude of price movements and not the direction of price movement. Join Tom, Thomas, and Jermal as they give you the ins and outs of volatility expansion and the relationship between price and implied volatility.
PPI is high, the Dollar is weak, and Copper is on a roll. Meanwhile, more people are choosing spoken-word audio over music. Bring on earnings season!
PPI is high, the Dollar is weak, and Copper is on a roll. Meanwhile, more people are choosing spoken-word audio over music. Bring on earnings season!
Just the other day, we set up our first broken wing butterfly in quite some time. As effectively the defined-risk version of a ratio spread, the BWB is a flexible strategy that gives you profit potential in both directions. Today, we continue uncovering the inner workings of this strategy, by taking a closer look at the profits and losses of this strategy in the extreme examples where the stock rises significantly or falls significantly.
Be sure to connect with Dr. Jim on Twitter!
Just the other day, we set up our first broken wing butterfly in quite some time. As effectively the defined-risk version of a ratio spread, the BWB is a flexible strategy that gives you profit potential in both directions. Today, we continue uncovering the inner workings of this strategy, by taking a closer look at the profits and losses of this strategy in the extreme examples where the stock rises significantly or falls significantly.
Be sure to connect with Dr. Jim on Twitter!
The start of 2021 has seen the Nasdaq and its technology stocks fall, bounce back, and now fall again. Frank looks at a short-term trade using MNQ and STIX to try and catch the bounce. Then, the futures dude opens the options on futures page in wheat and interest rates to get some neutral, short premium strategies done.
The start of 2021 has seen the Nasdaq and its technology stocks fall, bounce back, and now fall again. Frank looks at a short-term trade using MNQ and STIX to try and catch the bounce. Then, the futures dude opens the options on futures page in wheat and interest rates to get some neutral, short premium strategies done.
Crude oil has rallied back to above $80, where it's traded just 5% of the time since 2020. Errol and Frank use futures and options to trade crude oil at the highs in a small-sized, approachable manner.
The guys talk about outlier moves and why they are looking to sell crude oil at these elevated levels, and then they bring up the Small Crude Oil futures and options on the big Crude Oil futures to get their strategy set.
Crude oil has rallied back to above $80, where it's traded just 5% of the time since 2020. Errol and Frank use futures and options to trade crude oil at the highs in a small-sized, approachable manner.
The guys talk about outlier moves and why they are looking to sell crude oil at these elevated levels, and then they bring up the Small Crude Oil futures and options on the big Crude Oil futures to get their strategy set.
The tastytrade crew shares their trade options ideas of the day!
Katie buys a call spread in TWTR near the lows, and sells a put spread in /ZW after the selloff.
Mike buys an OTM call calendar spread in JPM for earnings, with the long option in MAR and the short option with 1DTE.
Tune in for a live Q&A as well!
The tastytrade crew shares their trade options ideas of the day!
Katie buys a call spread in TWTR near the lows, and sells a put spread in /ZW after the selloff.
Mike buys an OTM call calendar spread in JPM for earnings, with the long option in MAR and the short option with 1DTE.
Tune in for a live Q&A as well!
Frank, our favorite redhead joins Liz and Jenny to discuss the current move in Oil AND periscopes! He brings a short /SMO trade paired with a small short put spread in /CL to add some theta to the positions.
Frank, our favorite redhead joins Liz and Jenny to discuss the current move in Oil AND periscopes! He brings a short /SMO trade paired with a small short put spread in /CL to add some theta to the positions.
While the yield on the U.S. 10-year Treasury is finally increasing, it is still historically low. However, when we compare it to yields in other countries, the U.S. 10-year yields are appealing. Higher yields draw more foreign investments, which in turn, increases the value of the dollar.
As the value of the dollar increases, the value of foreign currencies declines. How could this impact the markets?
Join Tom and Thomas to find out!
While the yield on the U.S. 10-year Treasury is finally increasing, it is still historically low. However, when we compare it to yields in other countries, the U.S. 10-year yields are appealing. Higher yields draw more foreign investments, which in turn, increases the value of the dollar.
As the value of the dollar increases, the value of foreign currencies declines. How could this impact the markets?
Join Tom and Thomas to find out!
With limited capital, it is especially important to be selective and mechanical when choosing what to trade. Join Tom and Thomas in today's episode as they cover six steps to help in the process.
With limited capital, it is especially important to be selective and mechanical when choosing what to trade. Join Tom and Thomas in today's episode as they cover six steps to help in the process.
The CPI report confirms what we already know: it's expensive to be a consumer in the United States. As a result, crude oil, lumber, copper and other commodities have run amuck! Do we short or get on board?
The CPI report confirms what we already know: it's expensive to be a consumer in the United States. As a result, crude oil, lumber, copper and other commodities have run amuck! Do we short or get on board?
You have multiple different markets when it comes to investing: equities, real estate, sports betting, etc. Where is the best place and how do you size appropriately for those different markets? Also, should college athletes be paid? If so, how much? If not, why not? On this week’s podcast, Tom and Dylan cover all this and more.
You have multiple different markets when it comes to investing: equities, real estate, sports betting, etc. Where is the best place and how do you size appropriately for those different markets? Also, should college athletes be paid? If so, how much? If not, why not? On this week’s podcast, Tom and Dylan cover all this and more.
Futures dude Frank dives deep into a natural gas market that's on the rise once again. The kid shows you some historical data before putting on a short strategy that defines the risk in case the market continues higher. Finally, Frank puts on some short-term strategies in futures on crude oil and US dollar.
Futures dude Frank dives deep into a natural gas market that's on the rise once again. The kid shows you some historical data before putting on a short strategy that defines the risk in case the market continues higher. Finally, Frank puts on some short-term strategies in futures on crude oil and US dollar.
Interest rates present as some of the most mean-reverting markets in the world, which can create great opportunity in their spread trading.
Katie and Frank walk you through three types of interest rate spreads so you can take action in a market full of price extremes. Find out from our experienced futures traders how you can get started in the wide world of yield curve spreads.
Interest rates present as some of the most mean-reverting markets in the world, which can create great opportunity in their spread trading.
Katie and Frank walk you through three types of interest rate spreads so you can take action in a market full of price extremes. Find out from our experienced futures traders how you can get started in the wide world of yield curve spreads.
SKEW refers to a market environment where equidistant OTM puts and calls are trading for different amounts. This SKEW tells you where the market perceives a high-velocity move to potentially be - on the more expensive option's side - this doesn't mean the market WILL move there though.
Tune in to learn more with a live Q&A as well!
SKEW refers to a market environment where equidistant OTM puts and calls are trading for different amounts. This SKEW tells you where the market perceives a high-velocity move to potentially be - on the more expensive option's side - this doesn't mean the market WILL move there though.
Tune in to learn more with a live Q&A as well!
The conditional value at risk (CVaR) can be a useful measure for traders evaluating potentially risky plays. Like all historical metric, however, it requires making decisions about how much past data to consider. Today, Jacob joins Tom and Thomas to explore the possibility of a future looking CVaR equivalent calculated using implied volatility.
The conditional value at risk (CVaR) can be a useful measure for traders evaluating potentially risky plays. Like all historical metric, however, it requires making decisions about how much past data to consider. Today, Jacob joins Tom and Thomas to explore the possibility of a future looking CVaR equivalent calculated using implied volatility.
The higher the POP of your trade, the higher probability of seeing a streak of winners using the same trade.
A POP that may seem high on its own (70% to 75%) may actually have a very low probability of seeing streaks of wins.
The higher the POP of your trade, the higher probability of seeing a streak of winners using the same trade.
A POP that may seem high on its own (70% to 75%) may actually have a very low probability of seeing streaks of wins.
After a five-day slide, the S&P ($SPY) is rising ahead of an all-important CPI number. @jermalchandler takes a look at Copper, Crude Oil, the U.S. Dollar ($DXY), two-year yields and Small Caps ($IWM).
After a five-day slide, the S&P ($SPY) is rising ahead of an all-important CPI number. @jermalchandler takes a look at Copper, Crude Oil, the U.S. Dollar ($DXY), two-year yields and Small Caps ($IWM).
The traditional butterfly spread is a great strategy to take advantage of high implied volatility with a neutral bias. But a broken-wing butterfly could be an even better strategy, as it allows us to move the strategy from a net debit to a net credit while introducing a directional bias into the market. Of course, there is a gotcha with breaking the wing, and this comes in the form of added risk to the strategy.
Be sure to connect with Dr. Jim on Twitter!
The traditional butterfly spread is a great strategy to take advantage of high implied volatility with a neutral bias. But a broken-wing butterfly could be an even better strategy, as it allows us to move the strategy from a net debit to a net credit while introducing a directional bias into the market. Of course, there is a gotcha with breaking the wing, and this comes in the form of added risk to the strategy.
Be sure to connect with Dr. Jim on Twitter!
As crude oil moves back to its highs on the year, Frank talks short futures, calendar spreads, and pairs trades all in the aim of selling the commodity. He also talks about mechanics around covering winning and losing trades, which he finds especially important in volatile markets like crude oil.
As crude oil moves back to its highs on the year, Frank talks short futures, calendar spreads, and pairs trades all in the aim of selling the commodity. He also talks about mechanics around covering winning and losing trades, which he finds especially important in volatile markets like crude oil.
The tradable tools at your disposal have never been greater, and Jermal and Frank show you how to trade long futures against short options in precious metals. The guys buy Small Metals futures as their base trade, and then they add a hedge by selling calls in the outperforming gold market. This gives their strategy a lower breakeven and higher probability of success.
The tradable tools at your disposal have never been greater, and Jermal and Frank show you how to trade long futures against short options in precious metals. The guys buy Small Metals futures as their base trade, and then they add a hedge by selling calls in the outperforming gold market. This gives their strategy a lower breakeven and higher probability of success.
It can be difficult to find the true market price for options trades when bid-ask spreads are wide. Tune in to learn about the "price discovery" exercise we can execute to find the true market price for spreads & single options so we avoid getting bad fills.
Live Q&A as well!
It can be difficult to find the true market price for options trades when bid-ask spreads are wide. Tune in to learn about the "price discovery" exercise we can execute to find the true market price for spreads & single options so we avoid getting bad fills.
Live Q&A as well!
Anton joins Liz and Jenny as they discuss the probabilities of intraday reversals after both up moves and down moves.
Anton joins Liz and Jenny as they discuss the probabilities of intraday reversals after both up moves and down moves.
Although intraday reversals usually imply a near-flat close on the day for underlying price, IV was affected.
It seems the IV change on the day of a reversal is more affected by the price action of the reversal by the close. In other words, if the market sold off and then rallied, IV tended to decline on the day (as it would if the market simply went up). The size of the IV change on reversal days seemed to be around 3% regardless of how big the market moved that day.
Although intraday reversals usually imply a near-flat close on the day for underlying price, IV was affected.
It seems the IV change on the day of a reversal is more affected by the price action of the reversal by the close. In other words, if the market sold off and then rallied, IV tended to decline on the day (as it would if the market simply went up). The size of the IV change on reversal days seemed to be around 3% regardless of how big the market moved that day.
Premium sellers look to Theta as the primary indicator of their portfolio’s profitability. But profitability comes at the cost of risk, primarily Gamma risk. Today, Tom and Tony look into historical data to see how different strategies and underlyings stack up when it comes to Theta per Gamma.
Premium sellers look to Theta as the primary indicator of their portfolio’s profitability. But profitability comes at the cost of risk, primarily Gamma risk. Today, Tom and Tony look into historical data to see how different strategies and underlyings stack up when it comes to Theta per Gamma.
Should politicians be allowed to trade in the market? What benefits are there to the retail trader for them to do so? In today's episode of Hear Me Out, Victor Jones (ready in his blazer), Tom Sosnoff, and Tony Battista unpack these questions.
In the case of Richard Clarida, was he being proactive due to nonpublic knowledge or coincidentally reactive? Both parties can agree that there are multiple benefits of congress and the senate participating in the market, but what underlying questions are going unanswered?
Should politicians be allowed to trade in the market? What benefits are there to the retail trader for them to do so? In today's episode of Hear Me Out, Victor Jones (ready in his blazer), Tom Sosnoff, and Tony Battista unpack these questions.
In the case of Richard Clarida, was he being proactive due to nonpublic knowledge or coincidentally reactive? Both parties can agree that there are multiple benefits of congress and the senate participating in the market, but what underlying questions are going unanswered?