Cardano, the sixth largest crypto asset by market cap, is now available to trade on tastyworks. Here’s what you should know.

Meet Vic - an options trading Rising Star

May 5, 2015

By: Jenna DiMaria

This week, tastytrade was lucky enough to have Vic Honnaya stop by our studio on the latest episode of Rising Stars on the tastytrade network.

The tastytrade blog crew was double lucky that Vic sat down with us after his interview with co-founder of tastytrade Tom Sosnoff and veteran trader Tony Battista. Here are some of our favorite excerpts from our talk with Vic:

TT: How do you allocate your capital per account? Do you look at a certain percentage?

Every Saturday, I go through my BP [buying power] and evaluate my current positions relative to my account. Generally I have somewhere between 30-40% of my account in the market, but it varies as I may look to scale during periods of higher implied volatility. I’m a heavy trader during earnings seasons.

I tend to look at the whole year in 4 quarters. Earnings last about 10 weeks, so that’s about 40 weeks a year. I look to allocate about 33% in my portfolio margin to just the earnings trades. My goal is to make 3%/week and to make over 10%/year.

TT: Do you have a particular strategy you like to use for your earnings trades? Do they tend to be more directional, neutral, or a combination?

My go-to strategies are straddles and strangles. I am more of a neutral trader; I generally don’t care what the direction or what the stock is. Occasionally though I do take directional bets, for example I may trade a Sunny Side Up or a Jade Lizard. I like to minimize the loss on one side. What’s really helped on my earnings is watching the tastytrade segment Anatomy of a Trade as well as taking mechanical exits on winners.

TT: When you extend your duration, are you willing to work with a trade rather than close it out?

Yes. I used to close trades when they would lose money and I would get frustrated. But then when I saw I could turn around a bad trade, that changed things for me. It helps in terms of creating a high number of occurrences.

TT: What is one of the biggest takeaways you have learned from tastytrade?

Managing winners early is key. I was able to apply that strategy and that really made a difference on my overall profitability.

TT: How much time do you spend per day/week learning about the market?

Since I work full-time, I’ll do a GTC order the night before. I get up in the morning and check, and look again when the market opens and again during lunch. I have alerts on my phone, and I manage my trades through mobile. And then I’ll check my trades again around 3:30-4. I’ll spend a little more time on this during earnings season.

Every Saturday morning, I download all my trades, and I look at the delta efficiency. I have multiple accounts, and the benefit of that is you are usually winning somewhere.

I catch up on Market Measures on weekends while I fold laundry.
— Vic Honnaya

TT: Do you trade futures? Indices?

A: Yes, definitely. I trade strangles on crude, bonds, sometimes I may do pairs trades between market indices such as /ES and /NQ. I always look to trade futures that also have active option markets, like crude oil.  Also, I am always short SPX premium (like Karen) 365 days a year.

TT: Do you try to make trades that have a certain range for probability of expiring?

I look about 5-8% ITM, that’s my go-to. But if the move is large, then I’ll be more aggressive. I trade a lot more strangles than straddles, and I generally prefer to take less money in exchange for higher probability.

This earnings season, I placed about 50 trades. I have my watchlist. I use my watchlist and my YTD, which is helpful. I use that to make a decision about whether or not I should spend my time [on that trade].

Vic's daughter Nisha, with co-founder of tastytrade Tom Sosnoff and veteran options trader Tony Battista.

Vic's daughter Nisha, with co-founder of tastytrade Tom Sosnoff and veteran options trader Tony Battista.

TT: Do you have any advice for people new to options trading?

I recommend the 5 P’s:

- Look at Probability

- Know your Products (start with a few ETF's in indices, currencies, bonds, metals, volatility) in addition to your couple favorites. Limit your universe to about 10 to 15 underlyings and get comfortable with those.

- Have a thorough understanding of your Platform

- Profits (take them early- they might not be there tomorrow)

- Pain is usually a direct result of your trade size. If it’s hurting you, then your size is not right. If you have the loser, but you can handle the pain, then you have the option to extend duration. This greatly increases your probability of turning a loser into a winner.

If you have more questions for Vic, leave a comment for him below or follow him on Twitter @OptionsVic

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

Related Posts

tastytrade content is provided solely by tastytrade, Inc. (“tastytrade”) and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, transaction or investment strategy is suitable for any person. Trading securities can involve high risk and the loss of any funds invested. tastytrade, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. Investment information provided may not be appropriate for all investors, and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. tastytrade is not in the business of transacting securities trades, nor does it direct client commodity accounts or give commodity trading advice tailored to any particular client’s situation or investment objectives. Supporting documentation for any claims (including claims made on behalf of options programs), comparison, statistics, or other technical data, if applicable, will be supplied upon request. tastytrade is not a licensed financial advisor, registered investment advisor, or a registered broker-dealer. Options, futures and futures options are not suitable for all investors. Prior to trading securities products, please read the Characteristics and Risks of Standardized Options and the Risk Disclosure for Futures and Options found on

tastyworks, Inc. ("tastyworks") is a registered broker-dealer and member of FINRA, NFA and SIPC. tastyworks offers self-directed brokerage accounts to its customers. tastyworks does not give financial or trading advice nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of tastyworks’ systems, services or products. tastyworks is a wholly owned subsidiary of tastytrade, Inc (“tastytrade”). tastytrade is a trademark/servicemark owned by tastytrade.

Quiet Foundation, Inc. (“Quiet Foundation”) is a wholly-owned subsidiary of tastytrade The information on is intended for U.S. residents only. All investing involves the risk of loss. Past performance is not a guarantee of future results. Quiet Foundation does not make suitability determinations, nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of Quiet Foundation’s systems, services or products.

Small Exchange, Inc. is a Designated Contract Market registered with the U.S. Commodity Futures Trading Commission. The information on this site should be considered general information and not in any case as a recommendation or advice concerning investment decisions. The reader itself is responsible for the risks associated with an investment decision based on the information stated in this material in light of his or her specific circumstances. The information on this website is for informational purposes only, and does not contend to address the financial objectives, situation, or specific needs of any individual investor. Trading in derivatives and other financial instruments involves risk, please read the Risk Disclosure Statement for Futures and Options. tastytrade is an investor in Small Exchange, Inc.

© copyright 2013 – 2021 tastytrade. All Rights Reserved. Applicable portions of the Terms of use on apply. Reproduction, adaptation, distribution, public display, exhibition for profit, or storage in any electronic storage media in whole or in part is prohibited under penalty of law, provided that you may download tastytrade’s podcasts as necessary to view for personal use.