Best Practices

Weekdays 8:00 – 8:20a CT

Strategies When VIX is Under 10

Best Practices

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

Tom and Tony discuss tastytrade strategies when the VIX is below 10. They cover a range of strategies from conservative to aggressive for Low IV environments.

Long Time Spread (Calendar Spread or Diagonal Spread):
  • Vega is higher in the longer expiration cycle; thus this strategy benefits from increasing IV
  • Time Spreads can be constructed with a directional Bias
Long Debit Spread Long Volatility Product
  • Highest potential reward along with greatest potential risk (aggressive strategy)
  • The mean-reverting nature of IV means long IV strategies require quicker management
  • Some VIX products include: VIX, VXX, UVXY

Best Practices More installments

See All »

Latest tastytrade Videos As of December 14

Most Shared From the last 30 days