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Weekdays 8:00 – 8:20a CT

Best Practices

This segment is designed to show every investor the best ways to execute their trading strategy. We deliver the practical side of options trading. It's tastytrade's research broken down to a more beginner level!

Nov 22, 2021

Though our philosophy is trade small, trade often, it's important to avoid overtrading too much Buying Power (BP), or over managing traes. Join Tom and Tony as they explain in detail!

Nov 15, 2021

While short stocks and future positions are bearish and have 50% shot, options can have varying probabilities of success, and short doesn't necessarily mean bearish. Join Tom and Tony as they break down short options in detail.

Nov 8, 2021
There are many different kinds of "spreads" in trading. The Bid/Ask Spread, Vertical Spread, Time/Horizontal Spread, and the Product Spread. Join Tom and Tony as they explore each kind. 
Nov 1, 2021

Join Tom and Tony as they look more closely at the metric Probablity of Touch, and consider how it can be useful in our everyday trades.

Oct 25, 2021

Options give the ability to estimate probability of success and return potential. Join Tom and Tony as they review three of the ways we do this!

Oct 18, 2021

The expected move metric calculates the market’s expectation of dollar move with 68% certainty. Join Tom and Tony as they dig into this most important calculation in detail.

Oct 11, 2021

When a trade is constructed with the same risk profile as another, it is called a synthetic. Find out when to use synthetic positions.

Oct 4, 2021

Much like a technical blueprint, the option trades we place follows a mechanical process. To streamline our statistical level of success we look maximize number of occurrences.

Sep 27, 2021

Join Tom and Tony as they discuss the main components of a trade plan worth considering.

Sep 20, 2021

tastytrade looks at ways to improve market awareness.

Sep 13, 2021

Join Tom and Tony as they review how we use IVR in our everyday trading.

Sep 9, 2021

Join Tom and Tony as they take a look at the underlying factors and scenarios that often lead to changes in volatility.

Aug 30, 2021
Join Tom and Tony as they explain the rules of after hours trading.
Aug 23, 2021

With options we are able to estimate the probability and profitability of a single trade or an entire portfolio. Join Tom and Tony today as they review the key metrics you need to know.

Aug 16, 2021

Join Tom and Tony as they look at the rules of when to cash in winning trades.

Aug 9, 2021

Improving cost basis is the ability to enhance the effective price that an investment is purchased or sold at, using option strategies. Join Tom and Tony today as they explain in detail.

Aug 2, 2021

Sector ETFs focus on a single sector of the economy and present opportunities to add diversification to our portfolios. Learn how to avoid single stock risk and earnings risk with ETFs.

Jul 26, 2021

Join Tom and Tony as they walk through the steps in choosing a directional assumption.

Jul 21, 2021
Pairs trading opportunities can be found in all asset classes where correlations exist. Understanding these correlations and how to trade the pair can add uncorrelated positions to an active portfolio.
Jul 19, 2021

Tom and Tony dig into why--unlike stocks and futures--options have the ability to profit from non-movement and neutral strategies.

Jul 12, 2021

In today’s Best Practices, Tom and Tony review essential mechanics on trading earnings events.

Jul 8, 2021

Join Tom and Tony today as they cover the opening and management of the ratio spread-- a high probability, directional trade.

Jun 28, 2021

Probability of Profit and Probability of 50% profit are two metrics we use to guide our options trading strategy decisions. tastytrade explains.

Jun 21, 2021

Unlike Stock, Option contracts expire. This means that risk is naturally reset as the next cycle takes over as the front month. tastytrade explains.

Jun 14, 2021

If you are short options, a strike breach may occur. Having an effective approach to risk is essential in these circumstances.

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