Calling All Fans!

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

Submit

From Theory To Practice

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

Understanding Skew: BWBs and Ratios

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.

In this week’s viewer-driven segment, we lay exactly how volatility skew factors into how we trade Broken-Winged Butterflies and Ratio Spreads. What we see is that the skew in the market leads us to preferring Short Puts over Short Calls and Short Call Spreads over Short Put Spreads.Thus, we tend to do Put Ratio Spreads and Call Broken-Winged Butterflies.

From Theory To Practice More installments

See All »

Latest tastytrade Videos As of August 23

Most Shared From the last 30 days