The tastytrade network
Summary: The tastytrade network teaches investors innovative, simple ways to trade stocks, options, and futures, take advantage of market volatility and build a successful portfolio. Tom Sosnoff leads an irreverent and playful band of floor traders who are showing America a new way to quickly find low risk, high return strategies in bullish, bearish and sideways markets.
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Podcasts:
Talkin' With Tom and Tony - July 6, 2017
Good Trade Bad Trade - July 6, 2017
Good Trade Bad Trade - July 6, 2017
We can sell a Put against a short stock position, which will enhance our basis but will also weaken the [Delta](https://www.tastytrade.com/tt/learn/delta) exposure. Selling a [Strangle](https://www.tastytrade.com/tt/learn/strangle) against short stock will allow us to keep our delta exposure while collecting a larger credit. Still, is there an optimal environment to short a Strangle when coupled with long stock? tastytrade's Research Team ran a study to uncover the answer. ### Study * 2005 - 2016, SPY * 45 DTE * Simulated 30 Delta Covered Strangles * Sold 100 Shares of Stock * Sold 30 Delta Call * Sold 30 Delta Put * Managed at 50 % ### Results * If we look at every trade, this strategy was a net loss, due to bullish market * If we filter for higher IV environment, this strategy was a winning strategy due to higher credit * Extremely low IV also produced profitable results, likely due to selling short at market tops.
We can sell a Put against a short stock position, which will enhance our basis but will also weaken the [Delta](https://www.tastytrade.com/tt/learn/delta) exposure. Selling a [Strangle](https://www.tastytrade.com/tt/learn/strangle) against short stock will allow us to keep our delta exposure while collecting a larger credit. Still, is there an optimal environment to short a Strangle when coupled with long stock? tastytrade's Research Team ran a study to uncover the answer. ### Study * 2005 - 2016, SPY * 45 DTE * Simulated 30 Delta Covered Strangles * Sold 100 Shares of Stock * Sold 30 Delta Call * Sold 30 Delta Put * Managed at 50 % ### Results * If we look at every trade, this strategy was a net loss, due to bullish market * If we filter for higher IV environment, this strategy was a winning strategy due to higher credit * Extremely low IV also produced profitable results, likely due to selling short at market tops.
Straddles always have one strike [in-the-money](https://www.tastytrade.com/tt/learn/strike-price). Is there a point when these trades should be adjusted? For [Straddle](https://www.tastytrade.com/tt/learn/straddle), we may look at the breakeven points on the trade. The probability of touching the breakevens will vary with the differing credits of each Straddle. ###STUDY: * Russell 2000 and S&P 500 ETFS (IWM & SPY) * 2005- Present * 45 DTE * Simulated selling the Straddle (50 [delta](https://www.tastytrade.com/tt/learn/delta) Call and Put) * [Managed](https://www.tastytrade.com/tt/learn/managing-winners) trades at 25% (or held to [expiration](https://www.tastytrade.com/tt/learn/expiration)) * Observed occurrences where trades touched upside & downside breakeven prices. ###RESULTS: In SPY and IWM, over 60% of Straddles saw a touch to at least one breakeven from trade execution to expiration. Trades that are not managed before touching the breakeven are net losing trades going forward. Some action should be taken, such as extending duration. Tune in as Pete, Bat and Brick interpret the results and further explain why we manage this neutral strategy aggressively.
Straddles always have one strike [in-the-money](https://www.tastytrade.com/tt/learn/strike-price). Is there a point when these trades should be adjusted? For [Straddle](https://www.tastytrade.com/tt/learn/straddle), we may look at the breakeven points on the trade. The probability of touching the breakevens will vary with the differing credits of each Straddle. ###STUDY: * Russell 2000 and S&P 500 ETFS (IWM & SPY) * 2005- Present * 45 DTE * Simulated selling the Straddle (50 [delta](https://www.tastytrade.com/tt/learn/delta) Call and Put) * [Managed](https://www.tastytrade.com/tt/learn/managing-winners) trades at 25% (or held to [expiration](https://www.tastytrade.com/tt/learn/expiration)) * Observed occurrences where trades touched upside & downside breakeven prices. ###RESULTS: In SPY and IWM, over 60% of Straddles saw a touch to at least one breakeven from trade execution to expiration. Trades that are not managed before touching the breakeven are net losing trades going forward. Some action should be taken, such as extending duration. Tune in as Pete, Bat and Brick interpret the results and further explain why we manage this neutral strategy aggressively.
Opening Bell - July 6, 2017
Opening Bell - July 6, 2017
Trades From the Research Team LIVE - July 6, 2017
Trades From the Research Team LIVE - July 6, 2017
Daily Dose - July 6, 2017 - ETFs Distort the Market
Forward Slash - July 6, 2017 - VIX Settlement
Forward Slash - July 6, 2017 - VIX Settlement
Confirm and Send - July 6, 2017 - Placing Trades in Stocks with Upcoming Earnings
