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barn32
05-23-2015, 02:03 PM
I finally got around to watching some live episodes of TastyTrade, and I believe I can sum up that program in two words...implied volatility.

That seems to be all they talk about.

Basically, the majority of their trades are based around selling premium. Straddles, strangles, verticals, condors, etc. And when they sell premium they're looking for high volatility stocks and derivatives. All well and good, but doesn't high volatility mean higher risk? And they do seem to do an awful lot of rolling, which implies to me that they got into some bad trades to begin with.

They also do a lot of in depth geeky math type segments that are almost impossible to understand, at least for me anyway.

I'm not saying there isn't something to be learned here... There is. I also do these types of trades. But I also do low volatility trades, weekly options, and other things as well.

I might be reading this wrong, but I think this is the general gist of things on TastyTrade.

FiveWide
05-24-2015, 08:28 PM
I finally got around to watching some live episodes of TastyTrade, and I believe I can sum up that program in two words...implied volatility.

That seems to be all they talk about.

Basically, the majority of their trades are based around selling premium. Straddles, strangles, verticals, condors, etc. And when they sell premium they're looking for high volatility stocks and derivatives. All well and good, but doesn't high volatility mean higher risk? And they do seem to do an awful lot of rolling, which implies to me that they got into some bad trades to begin with.

They also do a lot of in depth geeky math type segments that are almost impossible to understand, at least for me anyway.

I'm not saying there isn't something to be learned here... There is. I also do these types of trades. But I also do low volatility trades, weekly options, and other things as well.

I might be reading this wrong, but I think this is the general gist of things on TastyTrade.


I can add a few things since I've basically learned all I know about Options from TT. You are correct in that they are premium sellers. It's best to sell premium in high IV since you get paid more and can get further OTM. They look at IV but more importantly IVR which is IV Rank. IVR is simply a measure of IV against itself. So they like selling when IVR is high. With high volatility you don't have to be so spot on direction because you're counting on vol to collapse. And since they're premium sellers they count on theta decay as well.

Unfortunately, high IV is pretty scarce atm in this bull market but you can still find them. Earnings plays are a good way to play the vol crush. They do play low vol strategies as well just not as much as high vol strats. When playing low vol strategies you're counting on vol to expand.

I've learned so much from them. I mean I absolutely knew nothing about investing but feel that I could try investing my own money now. I don't know of any other place that offers so much free content. I'm still currently paper trading but do plan on switching over soon.

-Five