The Ten Pillars
Best of tastytrade
My PC Workstation
Group Classes
Class Handouts
Coaching & Mentoring
tastytrade Link
Site Map
e-mail me

Best of tastytrade

This section highlights some of my favorite tastytrade segments. The title is listed first as a clickable link, followed by the show, the air date and a brief synopsis of why it is notable. I have tried to put them in order from basic concepts to more advanced topics.  At the bottom are four special segments that aired in 2012-2014 about one of the most famous and most inspirational tastytraders, Karen the Supertrader.   These segments are a must-see.
Title  Show  Air Date Synopsis
Trade Small Trade Often  Market Measures  1/8/13 Trade small and trade often is one of the core ideas that you will hear over and over at tastytrade.  By keeping your positions small and putting on lots of trades, you significantly reduce your chances of blowing out your trading account and if your trades have a high probability of profit, you should, over time, see increasing trading profits.  This segment explains the math behind why we need to put on lots of trades and keep them small.
  Reducing Cost Basis  Strategies for Your IRA  6/18/13 Reducing cost basis is central to the tastytrade themes.  This segment gives examples using DOW stocks as to how selling covered calls (especially with high IV) reduces cost basis and improves probability of profit.  It can be applied to almost any underlying.
IV Rank  Best Practices 3/12/19  IV (implied volatility) and IV Rank are probably the most important concepts in understanding whether option are priced relatively cheap or relatively expensive.  This segment explains IV rank and how it is calculated. 
Standard Deviation Options Jive 6/03/15  This is a review of the statistical concept of standard deviation.  We look at graphs of price charts with various standard deviations and we apply the concept to selling short strangles.
Types of Risk  Options Jive   12/18/19 This is a great segment that covers the types of risks you will encounter while trading options.  The biggest risk is position size. 
 Why Selling Premium Works Market Measures  10/23/14 Why do we sell options rather than buy options?  This segment shows a stark contrast in profitability between selling strangles and buying strangles.   At both high and low volatility, selling premium far outperforms buying premium.  We see that in the majority of cases, the actual move of the option at expiration is less than implied by the option pricing.   
Managing Winners  Best Practices 9/23/19  Why do tastytraders concentrate on managing winners?   When do you close for a profit?  This goes against conventional ways of thinking in the investment industry.  This segment  gives some perspective. 
Overview of Theta Best Practices 2/20/19 Theta Decay, or time decay is the engine that drives our return on capital, and it is the reason that we are premium sellers, not buyers.  This segment explains theta, and shows graphs on how theta changes over time and for ITM, OTM and ATM.
A Reason to Manage  Market Measures 2/04/15 Managing winners early has always been a backbone of the tastytrade method.  This study shows the benefits of managing at 50% of max profit over managing at a fixed time (15 days) to expiration and over holding to expiration. 
Low Vol | VX Covered Calls
 Market Measures  10/29/15  This is a very interesting segment on how to get long volatility when the VIX is low (below 15).  We buy the futures contract (/VX) and sell 10x the number of VIX calls in the same expiry in the nearest OOM strike relative to price of /VX contract.
 Difference Between IV Rank And IV Percentile Options Jive 2/29/16 This is a great segment on the differences between IV Rank and IV Percentile.   CAUTION: THEY ARE NOT THE SAME!  We can provide you with free thinkscripts to display IV Rank and true IV Percentile on your charts.  Email if you need these.
 Active Trading vs Passive Market Measures  1/22/15  This segment really hits home on why active trading beats passive investing hands down. 
    Interviews with Karen the Supertrader:
First Interview Special 5/30/12 Click on "First Interview" to watch this interview with Karen the Supertrader, runtime 25 Minutes

Second Interview

Special 10/16/12 Click on "Second Interview" to watch this interview with Karen the Supertrader, runtime 51 Minutes
Third Interview Special 2/12/14 Click on "Third Interview" to watch this interview with Karen the Supertrader, runtime 22 Minutes
Fourth Interview Special 8/21/14 Click on "Fourth Interview" to watch this interview with Karen the Supertrader, runtime 64 Minutes