Dr. Schultz (an academic and trader) explains theoretical trading concepts and practical application to take your trading to the next level.
Rolling the untested side at tastytrade offers widened break-even points and reduced overall risk, but how do we interpret a roll to the tested side?
As premium sellers at tastytrade, we want extrinsic value to decrease, but there are times when it seems to unexpectedly increase...
Here’s how to calculate the extrinsic value differences between the current cycle and the next cycle for an unbalanced Ratio Spread at tastytrade.
By applying "manage winners" or "manage early" to Iron Condors, we see exactly what we would expect at tastytrade - better returns across the board.
If you’re sized appropriately, your directional bias hasn’t changed, and IVR remains elevated, scaling into a defined-risk position is something to consider.
Adjustments fall into two camps - rolling the untested side or rolling out in time. Sometimes at tastytrade, one makes more sense than the other.
With X having earnings in seven days, we have a unique opportunity to isolate the impact that IV expansion will have on our position.
Wider Iron Condors might have more risk on a per contract basis, but over time they tend to have lower volatility than more narrow Iron Condors.
With ATM Verticals that are usually 50-50 shots, the price doesn’t tend to line up with 50% of the width of the spread - here’s why.
Diagonal Spreads rarely set up for high-priced stocks, as the cost of the strategy is often far too great relative to its profit potential.
Volatility isn’t just for finding opportunities on order entry. If you’re not careful, it can drag down your returns over time.
While certainly no match for their undefined-risk counterparts (Short Strangles), Iron Condors have performed reasonably well over the years at tastytrade.
A tested Iron Condor will always have a debit side and a credit side with any forward roll. Here’s how to best position yourself to roll for a net credit.
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