Calling All Fans!

We're letting tastynation call the shots! Give us your trade idea or let us solve your problems.


From Theory To Practice

Monday - Friday | 1:00 - 1:20p CT

Strategy Session: Sunny Side Up

From Theory To Practice

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

A Sunny Side Up strategy is a bullish strategy that entails a long ATM call spread with an upside naked short call to finance it. Essentially, you are able to pay for your upside directional play with the premium from selling the OTM call. Your hypothesis is bullish, but you want a mild upward move in the stock because you do not want your short call strike to be breeched. The optimal scenario is for the underlying to stay above the short strike on your long call spread but below the strike on your naked short call.

If you are able to put this trade on for a credit, or even money, then you’ll have no risk to the downside. Here, all of your risk is to the upside, if the underlying moves above the strike on your naked short call. As we see in the segment, however, it can be challenging to collect enough credit from the naked short call to eliminate all downside risk.

From Theory To Practice More installments

See All »

Latest tastytrade Videos As of July 22

Most Shared From the last 30 days