Find out how prop trading differs from retail trading and how certain trading mechanics are the same!

Best Practices hero image

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!

May 10, 2021

Discover three common ways to participate in futures trading. 

May 3, 2021

tastytrade lists and explains simple calculations that are useful when trading options. 

Apr 26, 2021

The cost of doing undefined risk trades can be challenging or impossible for many accounts. One solution is the use of defined risk trades.

Apr 19, 2021

Lower volatility indicates lower option pricing. Find out how this influences options trading strategy selection for a portfolio. 

Apr 12, 2021

tastytrade explains why it's important to be engaged and monitoring positions during the market open. 

Apr 5, 2021

A higher credit to BPR ratio is associated with higher profits along with greater risk for single stock underlyings.

Apr 1, 2021
tastytrade discusses probability distribution tails and kurtosis and how to apply these concepts when trading.
Mar 29, 2021

tastytrade explains ways to buy "insurance" when trading stock and options.

Mar 22, 2021

Managing exposure means managing the overall risk of a portfolio. This can be done with a solid set of mechanics. tastytrade explains.

Mar 15, 2021

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.

Mar 8, 2021

The ability to adjust trades is especially unique to options trading. When we make an adjustment, we do so by changing Price or Duration.

Mar 1, 2021

tastytrade lists three key trading metrics that all traders should utilizing when managing a portfolio. 

Feb 23, 2021

tastytrade highlights key considerations for exiting an options trade.

Feb 16, 2021

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.

Feb 9, 2021

tastytrade explains why traders should consider adding earnings trades to their portfolio.

Feb 1, 2021

Understanding in the money and out of the money options important in making decisions on what to do in a trade. tastytrade explains.

Jan 26, 2021

tastytrade explains why time value, IV Rank, and Delta help determine an option trade's viability.

Jan 20, 2021

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.

Jan 12, 2021

tastytrade explains how to profit from a stock's price sitting still.

Jan 4, 2021
Find out why long put options may not be the best protective strategy for downside market moves.
Dec 29, 2020
The ability to adjust trades is especially unique to options trading. The main reasons are the duration and price.
Dec 15, 2020
tastytrade explains why traders should aim to collect 1/3rd the width of the strikes for defined risk options strategies.
Dec 9, 2020
tastytrade discusses important characteristics of Return on Capital including its relationship to volatility and probability of maximum returns.
Dec 2, 2020
tastytrade shows an example of how trading portfolio diversification cannot completely eliminate risk.
Nov 30, 2020
The core of our mechanics is to sell option premium, ideally at high levels. In this guide, we will cover what you need to know.

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.