YouTube Roundup: Sosnoff's Shorts, Recession Prep, and 0DTE Options Trading
Jun 22, 2023
YouTube Roundup: Sosnoff's Shorts, Recession Prep, and 0DTE Options Trading
By:Eric Villa
Our weekly roundup of tastylive's best segments on YouTube.
- Options trading can provide flexibility and leverage when shorting, but traders should consider implied volatility and choose the right strategy for their account size and risk tolerance.
- Interest rates and yield curve inversions are historically strong predictors of recessions.
- Trading 1 day-to-expiration options versus 0 day-to-expiration options requires managing risk and being mindful of tail risk, but higher volatility can make these trades more appealing due to inflated premiums.
This week on tastylive’s YouTube channels, we’re bringing you the latest insights and strategies to help you succeed in the trading world. From shorting stocks to preparing for a potential recession and exploring the nuances of 1 versus 0 DTE options, our experts have you covered.
Tom Sosnoff’s secrets to shorting
Shorting a stock is not just about buying a put. In this video, Errol Coleman and Mike Butler break down tastylive’s shorting strategies, providing the knowledge you need to make informed decisions.
Three takeaways:
- Options trading offers flexibility and leverage, but smaller accounts should start with small defined-risk options spreads.
- Traders must consider implied volatility when deciding whether to buy a put or sell a call and may prefer calendar or diagonal spreads when volatility is high.
- Static delta refers to static exposure in a product, while dynamic delta applies to options trading and includes multiple factors that affect the underlying value of a contract.
If you want to learn more about futures contracts for shorting, other options strategies for shorting and more, watch the video above!
How to prepare for a recession
Recessions can be difficult to predict, but Frank Kaberna has created a crash course to help you prepare for a potential economic downturn. Learn about common recession predictors, the nuances of a potential 2023 recession and how to hedge against it.
Takeaways include:
- Interest rates are a strong predictor of recessions and stock market crashes, but there is more nuance in 2023.
- The current yield curve inversion is the most drastic since the 1980s, indicating a higher likelihood of a significant economic downturn.
- Diversification and cash reserves can hedge against a recession and take advantage of buying opportunities.
1 DTE versus 0 DTE Options: three months of data to find a leg up
Our research team has been hard at work finding ways to put time on traders' side in hours instead of days. In this video, we explore the differences between holding one day to expiration options overnight versus opening a trade in a zero DTE option in the morning.
Takeaways include:
- The wider wings perform better in terms of win percentage and average P/L but also come with higher risk.
- Higher volatility makes these trades more appealing as they are less expensive to buy back the next day and have more potential reward because of inflated premiums.
Probabilistic analysis versus technical analysis versus fundamental analysis
At tastylive, we believe in choosing high-probability strategies regardless of market opinion. In this video, Tom Preston breaks down the process he used to develop indicators at the core of the tastylive mechanics: probability of profit and probability of making 50% of profit.
Takeaways include:
- Probability calculations are based on past data and simulation models.
- Strike selection should consider both probability and capital efficiency.
- Stay engaged and constantly push to improve trading strategies.
Join us on tastylive’s YouTube channels for more informative and motivational content to help you succeed on your trading journey.
Eric Villalobos is a YouTube programming 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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