Market Measures

Monday – Friday | 9:00 – 9:20a CT

Losses Relative to Buying Power: Varying Deltas

Market Measures

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

Following up from last week’s study on strangle losses as a percentage of buying power, Tom and Tony discuss similar research the team conducted looking at different delta strikes.


The team analyzed:

  • 16 delta Stranglesmanaged at 50% where possible
  • 30 delta Strangles – managed at 50% where possible
  • 50 delta Straddles – managed at 25% where possible
  • Analyzed only losing trades

The team found that it is rare, historically, for an undefined risk trade to lose the full buying power requirement.

Tune in for Tom and Tony’s full run down of all the numbers!

Market Measures More installments

See All »

Latest tastytrade Videos As of April 24

Most Shared From the last 30 days