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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!

High Priced Trades
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.

Strategies For Low IV
Apr 19, 2021

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

The Morning Trade
Apr 12, 2021

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

The Credit To BPR Ratio
Apr 5, 2021

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

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

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

Managing Exposure
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.

Countdown To 21 Days
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.

Adjusting A Trade
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.

Measuring Profit Potential
Mar 1, 2021

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

Mechanics For Trade Exit
Feb 23, 2021

tastytrade highlights key considerations for exiting an options trade.

In The Money And POT
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.

Why Trade Earnings
Feb 9, 2021

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

In The Money
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.

Speaking TT Technicals
Jan 26, 2021

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

The Basics Of A Covered Call
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.

Range Bound Profitability
Jan 12, 2021

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

Long Puts
Jan 4, 2021
Find out why long put options may not be the best protective strategy for downside market moves.
Reasons To Adjust
Dec 29, 2020
The ability to adjust trades is especially unique to options trading. The main reasons are the duration and price.
Delta Efficiency
Dec 15, 2020
tastytrade explains why traders should aim to collect 1/3rd the width of the strikes for defined risk options strategies.
Breaking Down ROC
Dec 9, 2020
tastytrade discusses important characteristics of Return on Capital including its relationship to volatility and probability of maximum returns.
Unavoidable Risks
Dec 2, 2020
tastytrade shows an example of how trading portfolio diversification cannot completely eliminate risk.
A Seller's Guide To Premium
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.
A Guide To Being Market Savvy
Nov 23, 2020
tastytrade explains how to develop a sense of market awareness.
The Opening Bell
Nov 16, 2020
tastytrade walks through how to prepare for the market open every day.

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