Stock Splits, Elon Musk, 0DTEs and so much more in this week's recap
Stock Splits, Elon Musk, 0DTEs and so much more in this week's recap
By:Ryan Gaynor
A weekly roundup of tastylive videos offers the best trading tips from the network’s wealth of financial shows
.webp?format=pjpg&auto=webp&quality=50&width=1000&disable=upscale)
We have been Trading 0DTEs Wrong All Along ... This is Why | Options Backtest
In this week’s Market Measures, Tom Sosnoff and Tony Battista explore the intriguing dynamics of market behavior, focusing on disparities between morning and afternoon movements in the S&P 500 index (SPX). Analysis of past-year data reveals a notable trend: The SPX often dips in the morning, only to rebound just before close.
Surprisingly, the opening VIX level doesn't dictate market direction but offers insights into the magnitude of moves. For traders, especially those in zero DT options, staying vigilant post-noon is crucial because of potential rapid shifts. These insights challenge norms, emphasizing the importance of data-driven strategies for navigating intraday fluctuations.
This is the Only Metric Needed to Evaluate Risk | Options Backtest
_(1).jpg?format=pjpg&auto=webp&quality=50&width=1000&disable=upscale)
Sosnoff and Battista embark on a deep dive into the intricacies of option trading strategies, specifically examining the evolution of theta (premium decay) in short option positions over time. Using data from SPY options over ten years, they compare delta-neutral strangles (undefined risk) and iron condors (defined risk) with 45 days to expiration. The analysis reveals that while undefined risk trades start with more theta per credit, they also exhibit greater volatility and require vigilant monitoring. Defined risk trades offer less initial theta but involve slower risk progression. Managing positions early is crucial, especially as expiration nears.
Elon Musk Just Changed Business Forever
.jpg?format=pjpg&auto=webp&quality=50&width=1000&disable=upscale)
In a lively discussion on tastylive, Victor Jones and the hosts delve into the contentious topic of Elon Musk's compensation package, which is up for a proxy vote. They explore the implications for Tesla shareholders, the role of precedent in CEO compensation, and the market's reaction to the impending decision. Despite differing views on Musk's commitments and the fairness of the package, they agree that the outcome will impact both Tesla's trajectory and future corporate governance debates. The conversation highlights the complexity of aligning incentives with shareholder interests and the challenges of regulating visionary founders.
Ryan Gaynor is a video content specialist at tastylive.
For live daily programming, market news and commentary, visit tastylive or the YouTube channels tastylive (for options traders), and tastyliveTrending for stocks, futures, forex & macro.
Trade with a better broker, open a tastytrade account today. tastylive, Inc. and tastytrade, Inc. are separate but affiliated companies.
Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.
tastylive content is created, produced, and provided solely by tastylive, Inc. (“tastylive”) and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. tastylive is not in the business of transacting securities trades, nor does it direct client commodity accounts or give commodity trading advice tailored to any particular client’s situation or investment objectives. Supporting documentation for any claims (including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer. Options, futures, and futures options are not suitable for all investors. Prior to trading securities, options, futures, or futures options, please read the applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange-Traded Options Risk Disclosure found on tastytrade.com/disclosures.
tastytrade, Inc. ("tastytrade”) is a registered broker-dealer and member of FINRA, NFA, and SIPC. tastytrade was previously known as tastyworks, Inc. (“tastyworks”). tastytrade offers self-directed brokerage accounts to its customers. tastytrade does not give financial or trading advice, nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of tastytrade’s systems, services or products. tastytrade is a wholly-owned subsidiary of tastylive, Inc.
tastytrade has entered into a Marketing Agreement with tastylive (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade. tastytrade and Marketing Agent are separate entities with their own products and services. tastylive is the parent company of tastytrade.
tastycrypto is provided solely by tasty Software Solutions, LLC. tasty Software Solutions, LLC is a separate but affiliate company of tastylive, Inc. Neither tastylive nor any of its affiliates are responsible for the products or services provided by tasty Software Solutions, LLC. Cryptocurrency trading is not suitable for all investors due to the number of risks involved. The value of any cryptocurrency, including digital assets pegged to fiat currency, commodities, or any other asset, may go to zero.
© copyright 2013 - 2024 tastylive, Inc. All Rights Reserved. Applicable portions of the Terms of Use on tastylive.com apply. Reproduction, adaptation, distribution, public display, exhibition for profit, or storage in any electronic storage media in whole or in part is prohibited under penalty of law, provided that you may download tastylive’s podcasts as necessary to view for personal use. tastylive was previously known as tastytrade, Inc. tastylive is a trademark/servicemark owned by tastylive, Inc.