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Banking Sector Prep, Learn This Options Greek, The Ray Dalio Thesis, (Zero) 0DTE Options vs. Blackjack / tastylive Weekly Roundup

By:Eric Villa

Our best stories on YouTube this week

  • If the banking sector collapses, here's what happens to your money.
  • How to manage this options greek to squeeze extra returns.
  • Americans are flocking to Ray Dalio because they fear a societal reset. Are they right?
  • 0DTE options vs. gambling: similar, but not the same.

What happens to your money if the banking sector collapses? 

Regional banks aren’t out of the woods. So, what can you do to protect yourself if more institutions go belly up? To understand banking regulations, the impact of a banking crash on markets and more, be sure to watch Frank Kaberna’s full analysis above. 

You’re automatically losing money if you don’t understand this option Greek

In options trading, "theta" represents the rate at which the value of an option erodes over time because of the passage of time alone. It measures the daily decay in an option's price, with options losing value as they approach their expiration date. Understanding theta is an easy way to for premium sellers to put an additional variable in their favor, but it can seem complex. Here are some key points for understanding and managing theta:

  1. Theta is an important indicator for premium sellers, enabling them to make accurate predictions about their daily profit and loss without taking directional risk.
  2. The tastylive research team suggests keeping about 25% of the theta created in a perfect world. 
  3. By collecting and keeping one-tenth of one percent of the theta of the total asset value per day, investors can achieve an estimated annualized return of 36.5%.
  4. Managing positions at 21 days can lead to better long-term results with less volatility in expected profit and loss.
  5. Allocating 25% of capital to options trading can yield a better return than a buy-and-hold strategy with the SPY, with a ratio of realized to expected returns of 1 to 4.

To understand how to manage your theta for maximized profits, be sure to watch the video above. 

The truth behind America's political turmoil

Americans are flocking to books by Ray Dalio and Howard Marks for help in understanding the increasingly puzzling economic and political landscape of 2023. In this video, Dylan Ratigan, Chris Vecchio and Ilya Spivak explore how the run-up to the 2024 election is more than just a risk to markets. It speaks to the fundamental need for economic reform.

The Surprising Truth About 0DTE Options

It’s easy to criticize zero days to expiration (0DTE) options. The instant gratification and low capital requirements needed to trade them can feel like a slot machine to outsiders looking in, but it’s not that simple. Although zero DT options have similarities with gambling, they differ significantly because traders can analyze and trade based on changing market conditions. We ran the numbers on options and gambling to understand where opportunity in the brave new world of 0DTE options. 

Eric Villa is a YouTube 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.

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

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