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!
Legging a trade is not part of the normal trade process. That said, occasionally it is a necessary solution to low liquidity.
Expected move can be calculated based on options prices. tastytrade explains the formula and how expected move can help traders choose an options strategy.
Adjusting a trade means changing the risk profile of an existing trade. tastytrade explains the major rules of altering an options position.
We have many rules about the entry and exit of trade. Some depends on trader’s risk tolerances such as delta and BPR used.
Discover three common ways to participate in futures trading.
tastytrade lists and explains simple calculations that are useful when trading options.
The cost of doing undefined risk trades can be challenging or impossible for many accounts. One solution is the use of defined risk trades.
Lower volatility indicates lower option pricing. Find out how this influences options trading strategy selection for a portfolio.
tastytrade explains why it's important to be engaged and monitoring positions during the market open.
A higher credit to BPR ratio is associated with higher profits along with greater risk for single stock underlyings.
tastytrade explains ways to buy "insurance" when trading stock and options.
Managing exposure means managing the overall risk of a portfolio. This can be done with a solid set of mechanics. tastytrade explains.
Research has shown that the ideal time to exit a trade is at 21 DTE (days until expiration). During this time, we need to be mechanically prepared to address anything that might happen.
The ability to adjust trades is especially unique to options trading. When we make an adjustment, we do so by changing Price or Duration.
tastytrade lists three key trading metrics that all traders should utilizing when managing a portfolio.
tastytrade highlights key considerations for exiting an options trade.
Out of the money (OTM) options expire worthless, In the Money (ITM) options do not. Find out why this matters when trading various options strategies.
tastytrade explains why traders should consider adding earnings trades to their portfolio.
Understanding in the money and out of the money options important in making decisions on what to do in a trade. tastytrade explains.
tastytrade explains why time value, IV Rank, and Delta help determine an option trade's viability.
A covered call adds a time and volatility component to a long stock position. Implementing this strategy transforms a passive investment into an active trade.
tastytrade explains how to profit from a stock's price sitting still.
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