The Skinny on Options: Abstract Applications

Gamma Risk? DTE > Duration

The Skinny on Options: Abstract Applications

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

Our research has shown us over and over again that managing our undefined-risk trades at 21 DTE is a prudent strategy. This allows us to take advantage of theta’s reliability in the first half of the expiration cycle, while simultaneously avoiding the increased Gamma Risk in the second half of the expiration cycle. But this difference naturally begs the question: is it the DTE in the cycle or the duration in the trade that we should be more concerned with?

So in today’s Skinny, we address that exact question.

The Skinny on Options: Abstract Applications More installments

See All »

Latest tastytrade Videos As of February 25

Most Shared From the last 30 days