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How to Maximize a Trade's Potential - Mar 29, 2018 | Market Measures
Veteran trader Tom Sosnoff shows off his mechanics for making the most out of each options trade.
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Market Data provided by CME Group & powered by dxFeed Technology. Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.
Market Measures

How to Maximize a Trade's Potential

Mar 29, 2018

Here at tastylive, we have all these mechanics for options strategies (like the Strangle) that we’ve developed over time via historical backtests and day-to-day proof of concept. That is, we have developed mechanics like management of profits at 50% returns or waiting for Implied Volatility Rank over 50% to initiate trades.

And you might ask: Where do these mechanics come from? What’s the payoff? Well, my friend, today’s show answers exactly those questions. Tom and Pete walk through every step of how we make short Strangles as profitable as possible.

Study:

  • Sold ½ Standard Deviation (30 Delta) Strangle
  • Compared managing at 50%
  • Compared initiating when IV Rank over 50%
  • S&P 500 ETF (SPY) options – 45 DTE
  • 2005 to Present

Watch the segment above for a detailed portrayal of the results of this study concerning maximization of profits in short options trades.

This video and its content are provided solely by tastylive, Inc. (“tastylive”) and are for informational and educational purposes only. tastylive was previously known as tastytrade, Inc. (“tastytrade”). This video and its content were created prior to the legal name change of tastylive. As a result, this video may reference tastytrade, its prior legal name.

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