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From Theory To Practice

Dr. Schultz (an academic and trader) explains theoretical trading concepts and practical application to take your trading to the next level.

Mar 5, 2021
A wider Iron Condor behaves more like a Short Strangle than would a tighter Iron Condor, so a more aggressive adjustment strategy is strongly suggested.
Adjusting a $10 Wide Iron Condor
Mar 4, 2021
A wider Iron Condor behaves more like a Short Strangle than would a tighter Iron Condor, so a more aggressive adjustment strategy is strongly suggested. tastytrade explains.
Mar 3, 2021
When a position goes your way, and you have a profit on your hands, our research has shown over and over again that managing that winners is an effective strategy.
Mar 2, 2021

When a defined-risk position has moved against you, the extrinsic value in tastyworks will be shown as a negative number. Follow along as tastytrade explains what this means for options trade management.

Mar 1, 2021
While naked options positions do require more buying power than covered positions, we can adjust our naked positions to lessen the buying power impact. tastytrade explains.
Portfolio Adjustments at 21 DTE
Feb 26, 2021

With exactly 21 DTE left in the March cycle, we use the day to make all the necessary, tastytrade adjustments to our positions that need to be made.

Feb 25, 2021

Sometimes at 21 Days To Expiration, options trades may be small winners - here’s how to use IVR to decide what to do

Feb 24, 2021
By managing naked puts and naked calls at 21 Days to Expiration, traders are able to improve returns and reduce risk.
Preparing Positions for 21 DTE
Feb 23, 2021

When a Short Put option is still OTM, even if the stock is moving wildly, the best move is oftentimes to do nothing.

Feb 22, 2021
When you begin to widen out your Iron Condors, they start to act more like an undefined-risk position than a defined-risk position
Feb 19, 2021

On expiration day at tastytrade, it’s important to know the theoretical max value of your spreads before you try to close your positions.

Feb 18, 2021
At tastytrade, we are always balancing risk minimization with return maximization, and our TLT Call Diagonal Spread gives us a real-time example of how to do that.
Feb 17, 2021

Even in the event of being assigned on one leg of a defined-risk strategy, the total risk is unchanged, even though the position might look a lot different.

Low IVR Diagonal Spreads
Feb 16, 2021
While we much prefer to sell options in high Implied Volatility environments at tastytrade, we have strategies that are suited for low implied volatility conditions, too.
Spotting Upside Skew in Stocks
Feb 12, 2021

Sometimes the market for individual stocks will be pricing in more risk to the upside than to the downside, for an equidistant move higher or lower.

Feb 11, 2021

Using IBM, here’s a real-time example of how to assess the dividend risk on any position at tastytrade.

Feb 10, 2021
How have Short Puts and Short Calls performed over time? While the Short Put performance wasn’t a surprise, the Short Call performance was a bit of a shock
Feb 8, 2021
A classic way to interpret delta is as a measure of how an option’s price will move when the underlying stock moves, which can help us gauge delta’s relative strength on our trades.
Feb 5, 2021
One of the most versatile options strategies that we use at tastytrade is the Ratio Spread, but we want to make sure we collect enough credit on order entry.
Feb 4, 2021

With a “JEM” Earnings Trade, you wait until the day of earnings, you put on a trade in a normal, 45-DTE cycle, and then you manage that trade just as you would any other trade.

Feb 3, 2021

Both IV and duration, two non-directional elements can play a significant role at tastytrade in both Short Puts and Short Calls.

CMG, AMZN, and GOOG Earnings
Feb 2, 2021

As CMG, AMZN, and GOOG are all higher-price stocks, our directional biases and strategic setups have to be adjusted for earnings to fit our position sizing parameters.

Feb 1, 2021
Using the expected move at tastytrade to select your strikes for an Iron Condor can help give you a clear reference point where to begin.
Adjusting Our Positions at 21 DTE
Jan 29, 2021

Dr. Jim analyzes options positions to determine what needs to be closed, what needs to be rolled, and what needs to be held.

Jan 28, 2021

Let’s talk about exactly what has happened to GameStop stock the last few days, with a short squeeze reminder.

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