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Monday - Friday | 1:00 - 1:30p CT

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.

Managing Positions at 21 DTE
Sep 24, 2021
With 21 DTE in the October cycle, we use our time today to manage all of our positions.
Expectations on an Inverted Strangle
Sep 23, 2021

With an Inverted Strangle at tastytrade, you have to understand the best-case scenario in order to make the right adjustment.

Core Strategies: Covered Calls (Standard vs. Laddered)
Sep 22, 2021

Should you ladder your strikes on a Covered Call at tastytrade? Here’s what to consider.

Should you roll when IV Spikes
Sep 21, 2021

Should you roll at tastytrade when IV spikes? Short answer: yes - here’s why.

Short Delta, Short Vega Positions
Sep 20, 2021

Short Delta, Short Vega positions can be difficult to make profitable, even when the market is falling - tastytrade explains why.

Why Assignments are Rare
Sep 17, 2021
Assignments will always be a rare occurrence at tastytrade because options continue to hold some amount of extrinsic value prior to expiration.
Got Assigned? Here's What to Do
Sep 16, 2021

Got assigned on one leg of a Vertical Spread and not sure what to do? Here’s how to clean up that position at tastytrade.

Should You Ever Widen Out an Inversion?
Sep 15, 2021

When the stock moves significantly outside of our short strikes on an Inverted Strangle, do we ever consider widening out the inversion at tastytrade?

Nothing Left to Lose
Sep 13, 2021

When a defined-risk position is marking near max loss, there’s no reason to exit early at tastytrade - you have nothing left to lose...

Baby Inverted Strangles
Sep 10, 2021

Usually with Inverted Strangles we roll to the stock price to maximize extrinsic value, but you could intentionally sandbag the stock price to lessen the width of inversion..

How to Play a Strong Bullish Bias
Sep 9, 2021

With no Long Put Vertical Spread added to your strategy, the Short Put yields more credit and more delta than the Put Ratio Spread at tastytrade.

Core Strategies: Covered Call - Cost Basis Reduction
Sep 8, 2021

No strategy better illustrates the power of Cost Basis Reduction at tastytrade than the standard Covered Call.

Forecasting Short-Term Option Prices
Sep 7, 2021

Using Delta, Theta, and Vega at tastytrade, we can forecast where option prices are likely to go - should a stock move to a certain level in the coming days.

Sizing Defined-Risk Positions Correctly
Sep 3, 2021

Defined-Risk position sizing tends to scale inversely with account size - the smaller your account, the larger your defined-risk positions, and vice versa.

Volatility Skew with Spreads
Sep 2, 2021

Volatility skew shows us that Puts normally sell for more than Calls, but it also shows us that Call Spreads sell for more than Put Spreads.

Core Strategies: Covered Call Basics
Sep 1, 2021

The Covered Call strategy connects the familiarity of a stock portfolio with the opportunity of an options portfolio.

The Benefit of 45 DTE at Trade Entry
Aug 31, 2021

The extrinsic value within out-of-the-money options starts to decrease more quickly right around 45 DTE in the cycle - making it the perfect time for new trades.

Finding the Minimum Value of an Inverted Strangle
Aug 30, 2021

With an Inverted Strangle, the width of the inversion effectively sets the minimum price for the Inverted Strangle - here’s why.

Building a Big Credit Bank
Aug 20, 2021

Stocks with higher IVRs and higher IVs allow us to establish our positions with higher overall credits - something that ultimately gives us more flexibility at tastytrade.

The Best Way to Adjust a Short Put
Aug 19, 2021

The Short Put strategy is without question one of the most effective strategies you can use, but it will still get tested at times. Here’s how to navigate those situations.

Core Strategies: Iron Fly Volatility
Aug 18, 2021

The volatility of the Iron Fly strategy at tastytrade can be reduced by either widening out our strikes or managing our positions early.

Aggregating Credits With More Than One Lots
Aug 17, 2021

When you have a position on with a mixture of one lots and two lots, convert each adjustment into its aggregate impact on total credits to arrive at your true basis.

Reducing the Debit on an ITM Roll
Aug 16, 2021

While we don’t like rolling for debits at tastytrade, there are times when your strike isn’t available in the future cycle, and you don’t have a choice.

Making Sense of POP and P50
Aug 13, 2021

As high probability traders at tastytrade, we lean heavily on POP and P50, but it’s important to understand the differences between these two metrics.

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