Dr. Schultz (an academic and trader) explains theoretical trading concepts and practical application to take your trading to the next level.
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.
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.
Sometimes at 21 Days To Expiration, options trades may be small winners - here’s how to use IVR to decide what to do
On expiration day at tastytrade, it’s important to know the theoretical max value of your spreads before you try to close your positions.
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.
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.
Using IBM, here’s a real-time example of how to assess the dividend risk on any position at tastytrade.
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.
Both IV and duration, two non-directional elements can play a significant role at tastytrade in both Short Puts and Short Calls.
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.
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