The tastylive network

Johnny Trades - February 24, 2021

The Skinny On Options Math - February 24, 2021 - One-Sided Skew In Two-Sided Markets

It is tempting to use skew in the market to make directional assumptions. Today, we will look at what skew actually says about the future price movements of an underlying and how the efficient market hypothesis can contradict our intuitions.

The Skinny On Options Math - February 24, 2021 - One-Sided Skew In Two-Sided Markets

It is tempting to use skew in the market to make directional assumptions. Today, we will look at what skew actually says about the future price movements of an underlying and how the efficient market hypothesis can contradict our intuitions.

What's Your Assumption? - February 24, 2021 - CLOV, CRWD, AA

What's Your Assumption? - February 24, 2021 - CLOV, CRWD, AA

Options Jive - February 24, 2021 - Going Inverted

Going inverted is often a misunderstood step in the process of rolling an options trade. Join Tom and Tony today as they shed light on the final rolling step and clear up some of the most common questions we receive.

Options Jive - February 24, 2021 - Going Inverted

Going inverted is often a misunderstood step in the process of rolling an options trade. Join Tom and Tony today as they shed light on the final rolling step and clear up some of the most common questions we receive.

Research Specials LIVE - February 23, 2021 - Research Specials Live

Research Specials LIVE - February 23, 2021 - Research Specials Live

From Theory To Practice - February 23, 2021 - Preparing Positions for 21 DTE

With 21 DTE coming up on Friday in the March cycle, and the wild moves in the market today, we take some time to work through a few different positions in the portfolio. Specifically, we take a look at our Short Puts in PTON and IWM. With PTON being tested earlier in the morning, we roll that option out into the April cycle. But since IWM is still significantly OTM, as we talk about in our new Crash Course,] we opt to do nothing and wait until 21 DTE to make an adjustment.

From Theory To Practice - February 23, 2021 - Preparing Positions for 21 DTE

With 21 DTE coming up on Friday in the March cycle, and the wild moves in the market today, we take some time to work through a few different positions in the portfolio. Specifically, we take a look at our Short Puts in PTON and IWM. With PTON being tested earlier in the morning, we roll that option out into the April cycle. But since IWM is still significantly OTM, as we talk about in our new Crash Course,] we opt to do nothing and wait until 21 DTE to make an adjustment.

Futures Measures - February 23, 2021 - Active Trades for Volatile Markets

The recent volatility in stocks finds Pete in a good mood as he talks through his levels for trading bounces in everything from Nasdaq to silver. The futures dudes also put on some pairs trades using Small futures, and they formulate a plan of attack in interest rate markets that are showing great uncertainty and opportunity.Check out what Pete finds the most interesting out of all the markets that are on the move today.

Futures Measures - February 23, 2021 - Active Trades for Volatile Markets

The recent volatility in stocks finds Pete in a good mood as he talks through his levels for trading bounces in everything from Nasdaq to silver. The futures dudes also put on some pairs trades using Small futures, and they formulate a plan of attack in interest rate markets that are showing great uncertainty and opportunity.Check out what Pete finds the most interesting out of all the markets that are on the move today.

Small Stakes - February 23, 2021 - Betting Against the Fed

As members of the Fed continue to talk rates down, traders are battling them to lift yields higher. Frank and Pete show you how to trade Fed news with S2Y futures.  The guys give plenty of historical context for past movement in yields relative to past action by the Fed, and they look into the future of rates using Eurodollar prices. Find out how experienced rate traders are using comments by the Fed as opportunity in their platforms, and learn how the newest product from the Small Exchang...

Small Stakes - February 23, 2021 - Betting Against the Fed

As members of the Fed continue to talk rates down, traders are battling them to lift yields higher. Frank and Pete show you how to trade Fed news with S2Y futures.  The guys give plenty of historical context for past movement in yields relative to past action by the Fed, and they look into the future of rates using Eurodollar prices. Find out how experienced rate traders are using comments by the Fed as opportunity in their platforms, and learn how the newest product from the Small Exchang...

Options Trading Concepts Live - February 23, 2021 - Call Diagonal Spreads 101

A call diagonal spread is a bullish trade where we purchase an ITM long call with more time than the OTM short call we sell against it to reduce cost basis.  The tastytrade crew shows you how they set these trades up with a few examples, and talk through different tactics for the trade along the way. They also have a live Q&A session as well!

Market Measures - February 23, 2021 - How Strike Breaches Affect POPs

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 Tony as they discuss how breaches affect the POPs of different types of SPY strangles.

Market Measures - February 23, 2021 - How Strike Breaches Affect POPs

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 Tony as they discuss how breaches affect the POPs of different types of SPY strangles.

Best Practices - February 23, 2021 - Mechanics For Trade Exit

Exiting trades is just as important as trade entry. There are a few factors options traders should consider when looking to exit a position: Timing and Profits Made Execution at a Favorable Price How to Exit if Bid/Ask Get Wide Order Types Legging Join Tom and Tony in today’s discussion as they review some of the most important steps in this process and how to identify each one. 

Best Practices - February 23, 2021 - Mechanics For Trade Exit

Exiting trades is just as important as trade entry. There are a few factors options traders should consider when looking to exit a position: Timing and Profits Made Execution at a Favorable Price How to Exit if Bid/Ask Get Wide Order Types Legging Join Tom and Tony in today’s discussion as they review some of the most important steps in this process and how to identify each one. 

Options Jive - February 23, 2021 - Why Imply?

It can be tempting to try to use the standard deviation of returns, the “historical volatility,” in an underlying to think about future price movements. Today we go over some of the pitfalls with this approach and reiterate the advantages of implied volatility.

Options Jive - February 23, 2021 - Why Imply?

It can be tempting to try to use the standard deviation of returns, the “historical volatility,” in an underlying to think about future price movements. Today we go over some of the pitfalls with this approach and reiterate the advantages of implied volatility.

WDIS: Two Yutes - Beginner Options Trading - February 22, 2021 - Basics of Market Awareness

Now that Tom's two students have a few trades under their belt, they take a step back and talk through building habits of market awareness and how it can be utilized to approach options trades or portfolio management on a regular basis. Tune in as he explains benchmark products like E-Mini S&P and Nasdaq futures and how certain products help to plan a trader's outlook each day.  Plus, get a few more trade ideas in TWTR and SLV!

WDIS: Two Yutes - Beginner Options Trading - February 22, 2021 - Basics of Market Awareness

Now that Tom's two students have a few trades under their belt, they take a step back and talk through building habits of market awareness and how it can be utilized to approach options trades or portfolio management on a regular basis. Tune in as he explains benchmark products like E-Mini S&P and Nasdaq futures and how certain products help to plan a trader's outlook each day.  Plus, get a few more trade ideas in TWTR and SLV!

From Theory To Practice - February 22, 2021 - How to Trade $10 Wide Iron Condors

The Iron Condor is a great strategy that allows you to take a neutral bias in the market with a defined-risk trade. But interestingly, when you begin to widen out your Iron Condors, they start to act more like an undefined-risk position than they do a defined-risk position. This is certainly the case with $10 wide Iron Condors, as we see with our potential BIDU position today.

From Theory To Practice - February 22, 2021 - How to Trade $10 Wide Iron Condors

The Iron Condor is a great strategy that allows you to take a neutral bias in the market with a defined-risk trade. But interestingly, when you begin to widen out your Iron Condors, they start to act more like an undefined-risk position than they do a defined-risk position. This is certainly the case with $10 wide Iron Condors, as we see with our potential BIDU position today.

Bootstrapping In America - February 22, 2021 - Etienne Bernier of Kreezee Sports

Kreezee Sports is a complete management platform that helps sports organizations save time, increase revenue, and provide users with a unique interactive experience. The multilingual solution, available in America and Europe is innovative, constantly evolving, and developed according to its main mission. Within the next several years, their goal is to serve thousands of organizations and have 50 million users on the platform. Etienne Bernier is the Co-founder and CEO. Learn More

Bootstrapping In America - February 22, 2021 - Etienne Bernier of Kreezee Sports

Kreezee Sports is a complete management platform that helps sports organizations save time, increase revenue, and provide users with a unique interactive experience. The multilingual solution, available in America and Europe is innovative, constantly evolving, and developed according to its main mission. Within the next several years, their goal is to serve thousands of organizations and have 50 million users on the platform. Etienne Bernier is the Co-founder and CEO. Learn More

Futures Measures - February 22, 2021 - The 5-Way Pairs Trade

The guys kick the week off hot with a crude oil-GBP-USD-CAD-JPY pairs trade that they find might go well with a short metals play.  Pete wastes no time as he opens up option expirations and starts firing off strategies in everything from stocks and bonds to commodities and foreign exchange. Check out Pete's plan for another active week in futures markets.

Futures Measures - February 22, 2021 - The 5-Way Pairs Trade

The guys kick the week off hot with a crude oil-GBP-USD-CAD-JPY pairs trade that they find might go well with a short metals play.  Pete wastes no time as he opens up option expirations and starts firing off strategies in everything from stocks and bonds to commodities and foreign exchange. Check out Pete's plan for another active week in futures markets.

Small Stakes - February 22, 2021 - The Small Yield Curve is Here

Now you can access 2YR, 10YR, and 30YR interest rates in small, simple futures! Frank and Pete dive into the specs and opportunities around these new products.  The guys cover everything from margins to pricing convention in this introduction to S2Y and S30Y. Find out what the Small Exchange has in store for the future of interest rate trading, and see if these new products could provide you some new opportunities.

Small Stakes - February 22, 2021 - The Small Yield Curve is Here

Now you can access 2YR, 10YR, and 30YR interest rates in small, simple futures! Frank and Pete dive into the specs and opportunities around these new products.  The guys cover everything from margins to pricing convention in this introduction to S2Y and S30Y. Find out what the Small Exchange has in store for the future of interest rate trading, and see if these new products could provide you some new opportunities.

Options Trading Concepts Live - February 22, 2021 - Bullish Options Strategies

Learn about bullish options strategies like jade lizards, put ratio spreads and debit call spreads today with the tastytrade crew!  The market presents a unique opportunity where call skew is prevalent in a lot of popular stocks at the moment, and the crew breaks down what that means for these strategies today.  They also answer live questions from the YouTube chat feature as well.

Options Trading Concepts Live - February 22, 2021 - Bullish Options Strategies

Learn about bullish options strategies like jade lizards, put ratio spreads and debit call spreads today with the tastytrade crew!  The market presents a unique opportunity where call skew is prevalent in a lot of popular stocks at the moment, and the crew breaks down what that means for these strategies today.  They also answer live questions from the YouTube chat feature as well.

The Skinny on Options: Abstract Applications - February 22, 2021 - Chaos Theory in Trading

In high-level mathematics, Chaos Theory attempts to describe the level of erratic behavior in a system, where more unpredictable results from a given input change denote more chaos in the system. Well, as we say all the time at tastytrade, the markets are totally random and completely unpredictable, or in the world of mathematics, extremely chaotic. As a result, we must remember that we have no control over how a given trade or series of trades will perform, but instead we must focus on wha...

The Skinny on Options: Abstract Applications - February 22, 2021 - Chaos Theory in Trading

In high-level mathematics, Chaos Theory attempts to describe the level of erratic behavior in a system, where more unpredictable results from a given input change denote more chaos in the system. Well, as we say all the time at tastytrade, the markets are totally random and completely unpredictable, or in the world of mathematics, extremely chaotic. As a result, we must remember that we have no control over how a given trade or series of trades will perform, but instead we must focus on wha...

Market Measures - February 22, 2021 - Defining Risk in Low IV

What is the best way to reduce risk and outlier losses in periods of low Implied Volatility? By implementing a strategy where we trade defined risk in low IV and undefined risk in high IV, our average P/L was very similar to trading only undefined risk, however, we took on 25% less portfolio volatility and reduced our largest loss by 40%.  The reason stems from “having protection when you need it most” i.e. having long wing protection in low IV environments where short premium tends to be ...

Market Measures - February 22, 2021 - Defining Risk in Low IV

What is the best way to reduce risk and outlier losses in periods of low Implied Volatility? By implementing a strategy where we trade defined risk in low IV and undefined risk in high IV, our average P/L was very similar to trading only undefined risk, however, we took on 25% less portfolio volatility and reduced our largest loss by 40%.  The reason stems from “having protection when you need it most” i.e. having long wing protection in low IV environments where short premium tends to be ...

Options Jive - February 22, 2021 - Reaching Max Loss with Iron Condors

Iron condors have defined risk. More specifically, the maximum loss is capped by the BPR of the contract when opening the position. How likely is it for the P/L of an iron condor to reach this worst case loss? Join Tom and Tony as they look at SPY iron condors to answer this question.

Options Jive - February 22, 2021 - Reaching Max Loss with Iron Condors

Iron condors have defined risk. More specifically, the maximum loss is capped by the BPR of the contract when opening the position. How likely is it for the P/L of an iron condor to reach this worst case loss? Join Tom and Tony as they look at SPY iron condors to answer this question.

Options Crash Course: Strategy Management - February 21, 2021 - Strangle Management

Short Strangles are a neutral options trading strategy. Maximum profit and loss are undefined, and it's also known as a "naked" strategy. Dr. Jim Schultz walks through how to handle winning and losing positions when trading strangles.