For this segment of Options Jive, Tom and Tony take a look at some of tastytrade's favorite short strategies and how to defend them. We look to apply our shorting strategies to some of the stocks that have recently exhibited price extremes such as Apple, Caterpillar and Boeing.
Traders who sell premium often keep shortto hedge risk. When the underlying price falls and rises, short deltas help the price of the short options also to rise.
Toour undefined-risk , such as the Short Call, Short Call Ratio, and Skewed Strangle we:
- Roll up or down the untested (or add a short put)
- Roll out in time
- Go inverted
For defined risk strategies, our defenses are limited to delta-neutralizing the trade when our short call has been breached by adding a Short Put Spread.
Tune in as Tom and Tony break down these defensive tactics in-depth.