The tastylive network

Options Trading Concepts Live - March 16, 2021 - Covered Call vs Poor Man's Covered Call

Covered Calls are bullish trades where we buy 100 shares of stock and sell an ATM or OTM call against it to reduce basis and improve our probability of success. A Call diagonal spread is similar but has some tradeoffs. The call diagonal spread has less risk and a higher return on capital, but that max loss is realized much sooner than a covered call. Tune in to hear the tastytrade crew's take on these strategies, and why they might use one over the other!

Market Measures - March 16, 2021 - Will Correlations Mean Revert

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.  Trading a pair with high correlation means a pair with less overall risk. With the Russell-NASDAQ pair at a historically moderate correlation, the risk of trading that pair now is much lower than it was three months ago. 

Market Measures - March 16, 2021 - Will Correlations Mean Revert

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.  Trading a pair with high correlation means a pair with less overall risk. With the Russell-NASDAQ pair at a historically moderate correlation, the risk of trading that pair now is much lower than it was three months ago. 

tasty BITES - March 16, 2021 - Choosing A Trade

Smaller account size means being selective in our trades and staying mechanical. Join Tom and Tony today as they walk through the 6 most important steps in this process.

tasty BITES - March 16, 2021 - Choosing A Trade

Smaller account size means being selective in our trades and staying mechanical. Join Tom and Tony today as they walk through the 6 most important steps in this process.

Opening Bell - March 16, 2021

Opening Bell - March 16, 2021

Options Jive - March 16, 2021 - What's in a Volatility Metric

As premium sellers, identifying periods of high volatility is key. IV rank and IV percentile give different ways to judge current volatility against past volatility. Today, Tom and Tony explore the relationship between the two and delve deep into the equivalence of the information contained.

Options Jive - March 16, 2021 - What's in a Volatility Metric

As premium sellers, identifying periods of high volatility is key. IV rank and IV percentile give different ways to judge current volatility against past volatility. Today, Tom and Tony explore the relationship between the two and delve deep into the equivalence of the information contained.

Daily Dose - March 16, 2021

Daily Dose - March 16, 2021

Last Call - March 15, 2021

Last Call - March 15, 2021

Trading the Close with Tim Knight - March 15, 2021

Trading the Close with Tim Knight - March 15, 2021

Bootstrapping In America - March 15, 2021 - Chris Byers of formstack

Bootstrapping In America - March 15, 2021 - Chris Byers of formstack

WDIS: Two Yutes - Beginner Options Trading - March 15, 2021 - Options on Futures, Yields, and Calendar Spreads (Oh my.)

After reviewing their existing position (something Tom says they should be doing daily), E dives into his first option on futures trade with /MNQ, the Nasdaq microfutures product. Tom explains that an option on futures contract is functionally the same as a regular old options contract, with the exception that there are often different “multipliers.” In this case, the /MNQ product has a multiplier of 2 which means that with a $50 strike width between the long and short contract, you’d actua...

WDIS: Two Yutes - Beginner Options Trading - March 15, 2021 - Options on Futures, Yields, and Calendar Spreads (Oh my.)

After reviewing their existing position (something Tom says they should be doing daily), E dives into his first option on futures trade with /MNQ, the Nasdaq microfutures product. Tom explains that an option on futures contract is functionally the same as a regular old options contract, with the exception that there are often different “multipliers.” In this case, the /MNQ product has a multiplier of 2 which means that with a $50 strike width between the long and short contract, you’d actua...

From Theory To Practice - March 15, 2021 - 30 DTE or 60 DTE?

Sometimes we’re kind of caught in the middle, where the 45 DTE time horizon isn’t available in the monthly cycle. In these situations, we effectively have to choose between the front month with around 30 DTE or the back month with around 60 DTE. So how do we choose between the two? As we see with our potential Short Put Spread in FB and Short Strangle in SLV, we let the risk category of the trade help us decide which cycle to select for the strategy.

From Theory To Practice - March 15, 2021 - 30 DTE or 60 DTE?

Sometimes we’re kind of caught in the middle, where the 45 DTE time horizon isn’t available in the monthly cycle. In these situations, we effectively have to choose between the front month with around 30 DTE or the back month with around 60 DTE. So how do we choose between the two? As we see with our potential Short Put Spread in FB and Short Strangle in SLV, we let the risk category of the trade help us decide which cycle to select for the strategy.

Bootstrapping In America - March 15, 2021 - Chris Byers of Formstack

Formstack is a secure workplace productivity platform built to produce ingenious solutions to the everyday work that slows organizations down. From eliminating paper forms to breaking digital silos, Formstack empowers anyone to quickly and easily build custom forms, create documents, and collect eSignatures—all without code.  Chris Byers is the CEO. He's taken the company from 6 employees to currently over 250 in the last 11 years since he took over the reins. Learn More

Bootstrapping In America - March 15, 2021 - Chris Byers of Formstack

Formstack is a secure workplace productivity platform built to produce ingenious solutions to the everyday work that slows organizations down. From eliminating paper forms to breaking digital silos, Formstack empowers anyone to quickly and easily build custom forms, create documents, and collect eSignatures—all without code.  Chris Byers is the CEO. He's taken the company from 6 employees to currently over 250 in the last 11 years since he took over the reins. Learn More

Futures Measures - March 15, 2021 - Butterflies, Oil, and Soybeans

The futures dudes are back on Ides of March to shoot the bull and provide new trading ideas in Small Yield futures and commodity futures options. Pete takes you through his process for entering pairs trades in the outrights as well as iron condors in options of crude oil and soybeans. Peek some new trading ideas on Monday afternoon to kickstart your week.

Futures Measures - March 15, 2021 - Butterflies, Oil, and Soybeans

The futures dudes are back on Ides of March to shoot the bull and provide new trading ideas in Small Yield futures and commodity futures options. Pete takes you through his process for entering pairs trades in the outrights as well as iron condors in options of crude oil and soybeans. Peek some new trading ideas on Monday afternoon to kickstart your week.

Small Stakes - March 15, 2021 - Picking the Right Futures for You

Tired of trading someone else's futures? Frank and Pete compare new products from the Small Exchange designed for you to institutional futures. The guys show several statistics that could make it uncomfortable for the everyday investor to try out the traditional futures of old. Get the lowdown on Small Technology futures, and find out if they fit your portfolio's goals.

Small Stakes - March 15, 2021 - Picking the Right Futures for You

Tired of trading someone else's futures? Frank and Pete compare new products from the Small Exchange designed for you to institutional futures. The guys show several statistics that could make it uncomfortable for the everyday investor to try out the traditional futures of old. Get the lowdown on Small Technology futures, and find out if they fit your portfolio's goals.

Lunch Money - March 15, 2021 - Anticipating the FOMC Meeting

What will happen to the market leading up to and following this week's FOMC meeting? Garrett Baldwin and Hitha Herzog weigh in. Topics covered: TSLA  AMC  Quantumscape and Volkswagon  Beyond Meat  Opko Health  COVID Relief Bill  Toys R Us  NCAA Tournament  Goldman Sachs  Stripe

Lunch Money - March 15, 2021 - Anticipating the FOMC Meeting

What will happen to the market leading up to and following this week's FOMC meeting? Garrett Baldwin and Hitha Herzog weigh in. Topics covered: TSLA  AMC  Quantumscape and Volkswagon  Beyond Meat  Opko Health  COVID Relief Bill  Toys R Us  NCAA Tournament  Goldman Sachs  Stripe

Options Trading Concepts Live - March 15, 2021 - Ratio Spread vs Short Naked Options

A put front-ratio spread can be compared to a short put, but neither is necessarily better. The short put offers a higher max profit of the option expires OTM, and the ratio spread offers a lower cost basis reduction in exchange for a lower credit. Tune in to hear how the tastytrade crew approaches this concept, as they answer questions from the chat as well!

Options Trading Concepts Live - March 15, 2021 - Ratio Spread vs Short Naked Options

A put front-ratio spread can be compared to a short put, but neither is necessarily better. The short put offers a higher max profit of the option expires OTM, and the ratio spread offers a lower cost basis reduction in exchange for a lower credit. Tune in to hear how the tastytrade crew approaches this concept, as they answer questions from the chat as well!

Market Measures - March 15, 2021 - All Time Highs and High IV

From first glance, it may seem strange that the VIX is staying elevated through recent all time highs, but was very low though the all time highs from 2013 and 2020.  However, we have seen this phenomenon before in the late 90s...and both times of high VIX/high S&P price can be attributed to the simple fact that price moves in these periods tend to be more volatile than average.  Since VIX measures the expectation of future price volatility, it makes sense that the VIX would stay high as l...

Market Measures - March 15, 2021 - All Time Highs and High IV

From first glance, it may seem strange that the VIX is staying elevated through recent all time highs, but was very low though the all time highs from 2013 and 2020.  However, we have seen this phenomenon before in the late 90s...and both times of high VIX/high S&P price can be attributed to the simple fact that price moves in these periods tend to be more volatile than average.  Since VIX measures the expectation of future price volatility, it makes sense that the VIX would stay high as l...

The Skinny on Options: Abstract Applications - March 15, 2021 - Unknown Factors to Volatility

As tastytraders, trading volatility in the form of IV or IVR is at the center of what we do every single day. But interestingly enough, the Black-Scholes Model might not be all there is to explaining implied volatility. As we first saw with ARCH Modeling, the previous level of volatility has a strong, positive effect on the current level of volatility. Furthermore, the fact that the intercept coefficient is statistically significant indicates that there are indeed unknown factors to volatili...

The Skinny on Options: Abstract Applications - March 15, 2021 - Unknown Factors to Volatility

As tastytraders, trading volatility in the form of IV or IVR is at the center of what we do every single day. But interestingly enough, the Black-Scholes Model might not be all there is to explaining implied volatility. As we first saw with ARCH Modeling, the previous level of volatility has a strong, positive effect on the current level of volatility. Furthermore, the fact that the intercept coefficient is statistically significant indicates that there are indeed unknown factors to volatili...

Best Practices - March 15, 2021 - Countdown To 21 Days

Research has shown that the ideal time to exit a trade is at 21 DTE. During this time, we need to be mechanically prepared to address anything that might happen. Join Tom and Tony today as they cover what you need to know!

Best Practices - March 15, 2021 - Countdown To 21 Days

Research has shown that the ideal time to exit a trade is at 21 DTE. During this time, we need to be mechanically prepared to address anything that might happen. Join Tom and Tony today as they cover what you need to know!

First Call - March 14, 2021 - March 14th Open

First Call - March 14, 2021 - March 14th Open

Research Specials LIVE - March 13, 2021

Research Specials LIVE - March 13, 2021

Last Call - March 12, 2021

Last Call - March 12, 2021

Trading the Close with Tim Knight - March 12, 2021

Trading the Close with Tim Knight - March 12, 2021

WDIS: Two Yutes - Beginner Options Trading - March 12, 2021 - The Skewed Iron Condor

Tom stresses that there are two reasons to take a position off--either the price moves your way, or the IV Rank drops really low. He reminds the influencers to continue to keep an eye towards high volume, liquidity, and relatively high IV Rank when looking for new trades. Errol decides he’s feeling just a little bit bullish towards BIDU so Kay suggests a bullish skewed iron condor, a neutral-to-bullish defined-risk play. Tom explains that there are actually TWO break even points with any I...

WDIS: Two Yutes - Beginner Options Trading - March 12, 2021 - The Skewed Iron Condor

Tom stresses that there are two reasons to take a position off--either the price moves your way, or the IV Rank drops really low. He reminds the influencers to continue to keep an eye towards high volume, liquidity, and relatively high IV Rank when looking for new trades. Errol decides he’s feeling just a little bit bullish towards BIDU so Kay suggests a bullish skewed iron condor, a neutral-to-bullish defined-risk play. Tom explains that there are actually TWO break even points with any I...

From Theory To Practice - March 12, 2021 - Why We Buy ATM Vertical Spreads

As premium sellers, we much prefer to be on the short side of the option contract. This allows us to take advantage of theta decay, IV contraction, and higher probabilities of profit. However, in market environments where IV is low, it can be challenging to find good opportunities to stay engaged with short premium. In these situations, one of our favorite low IV strategies is the Long Vertical Spread. Interestingly, with this strategy we typically set up our strikes around the at-the-money m...

From Theory To Practice - March 12, 2021 - Why We Buy ATM Vertical Spreads

As premium sellers, we much prefer to be on the short side of the option contract. This allows us to take advantage of theta decay, IV contraction, and higher probabilities of profit. However, in market environments where IV is low, it can be challenging to find good opportunities to stay engaged with short premium. In these situations, one of our favorite low IV strategies is the Long Vertical Spread. Interestingly, with this strategy we typically set up our strikes around the at-the-money m...

Futures Measures - March 12, 2021 - Weekend Cleanup

After another busy week in futures, Pete and Frank clean up some equity positions before diving into a brand-new butterfly in the yield curve. The guys talk stock futures options as well as foreign exchange trades, and they conclude the week by sizing up a cross-product iron condor between soybeans and corn. Learn how to put on futures butterflies and cross-product iron condors in a diversity of asset classes.