Wider Spreads or More Contracts? Nick Battista has the answer.

Watch Now

From Theory To Practice

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

Why IV Expansion Losses Are Temporary

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.

Today, we dig into the three factors of profitability on an option’s position: direction, time, and volatility. Or even more specifically, delta, theta, and vega. And it’s important to remember that in the end, the only driver of a position’s profitability will be its moneyness. As a result, any spikes in IV that cause losses to a short premium position are temporary by nature.

From Theory To Practice More installments

See All »

Latest tastytrade Videos As of September 24

Most Shared From the last 30 days