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Monday – Friday | 9:00 – 9:20a CT

Market Measures

It's not always easy to take the measure of a market, whether you've been trading for a day or a decade. On this segment we look under the hood—options probabilities, volatility, trading strategies, futures, you name it—so your trading mechanics are built to manage more winners.

Rich Premium's Tradeoff
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Apr 29, 2021

Find out how to mitigate low POP and high volatility when trading Iron Flies.

Contract Duration and P/L Swings
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Apr 27, 2021

What contract duration gives a reasonable number of occurrences but still has manageable P/L swings?

The Cost of Defining Risk
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Apr 26, 2021

tastytrade calculates the cost of buying wings for the short strangle options strategy.

The Efficiency of BPR
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Apr 23, 2021

tastytrade examines how often losses have exceeded Buying power requirements for strangles with different underlyings when held to expiration (the worst-case scenario).

0% IV Rank
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Apr 22, 2021

Since April, SPX’s IV Rank has constantly been reaching 0% due to the decreasing Implied Volatility. Does this mean the option premium is too cheap to sell?

Managing Exposure in Low IV
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Apr 20, 2021

tastytrade compares the low-IV performance of a strangle and a wide iron condor (which statistically similar to a strangle but has defined risk).

Should We Sell Premium in Low IV?
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Apr 19, 2021

tastytrade looks at profitability metrics for short strangles when implied volatility was low.

The Great IV Deflation
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Apr 16, 2021

tastytrade talks about the five extreme outlier volatility moves we saw in the past 31 years and analyzes them to see if there were any similarities between them and 2020.

Ironfly and Its Performance
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Apr 15, 2021

How does the Iron Fly perform historically compared to the iron Condor trading strategy? tastytrade investigates. 

Defining Outlier Risk
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Apr 13, 2021

Quantifying the outlier risk for an option is tricky, but one method is to relate it to the total amount of capital at risk when placing a trade.

Average Outliers in Varying IV
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Apr 12, 2021

tastytrade reviews how severe outliers are in varying IV environments.

Average P/Ls and Median P/Ls
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Apr 9, 2021

Join Tom and Tony as they compare average P/Ls and median P/Ls across assets.

Premium Decay for Risk Defined Strategies
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Apr 8, 2021

tastytrade's research team analyzes the Theta decay for the Iron Condor options trading strategy.

Mean, Median, and Mode
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Apr 6, 2021

There are many different ways to measure the central tendency of a distribution. tastytrade lists and explains three and how to use this information when trading. 

The Efficiency of Delta and IV
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Apr 5, 2021

tastytrade reveals the hyper efficiency of implied volatility when pricing options.

Jade Lizard: Managing at 21 DTE
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Apr 1, 2021

tastytrade analyzes the performance of the Jade Lizard by applying managing at 21 DTE strategy.

Comparing Strategies with Credit-to-BPR
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Mar 30, 2021

tastytrade explains when you can use the credit-to-BPR ratio and when you can’t when trading options.

What is an Average IV Crush?
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Mar 29, 2021

How quickly can we expect IV to contract following an expansion? Tastytrade answers this question in detail in today’s Market Measures!

Jade Lizard Trade Performance
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Mar 25, 2021

Today, the research team analyzes the performances between 30 delta Jade Lizard and naked Put.

How to Diversify Using Bitcoin
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Mar 23, 2021

tastytrade looks at how to diversify a portfolio with bitcoin even though it seems like a super risky asset.

How Efficient Is Bitcoin Volatility?
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Mar 22, 2021

tastytrade looks at the implied volatility of bitcoin through the limited options products that are available, and then compares it to its realized volatility to determine its “volatility efficiency”.

Current Risk of Common Pairs
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Mar 19, 2021
tastytrade breaks ground on a new way to quantify risk for pairs trades.
Strangles Largest Losses 21 DTE
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Mar 18, 2021

tastytrade re-evaluates the major market corrections in the past 16 years, and the largest losses from 1 Standard Deviation strangles.

Will Correlations Mean Revert
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Mar 16, 2021

tastytrade discusses what mean-reverting correlations are and how they do not signal price reversion when trading.

All Time Highs and High IV
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Mar 15, 2021

tastytrade provides a possible explanation as to why we’re seeing all time market highs coupled with high volatility.

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