This video is just exceptional. PLEASE HAVE TONY DO MORE OF THESE VIDEOS!! I respect Mike and Dr. Jim, but the flow that tony has is just unbeatable. I am never bored for a second when listening to Tony except when its on the podcast lol
Fantastic video - can't thank you enough for posting this Tony! I've just started my Options trading education odyssey and I've been drinking from the fire hose everyone keeps talking about. This single video takes me from my shotgun approach to learning about options and brings together a solid foundation in my head where I can really start solidifying my mechanics. Excellent, just excellent! Now for you guys to bring Tastyworks up here to Canada! Hint hint! Lol.
For short strangle it’s 30 delta on each side !!! Till now my understanding was Tastytrade suggesting 16 delta or 1 SD!! Please correct and update me on this as this mechanic is very very important!! Thanks for a very concise and beautiful presentation 👍👍👍👍👍
If IVR is very high and premium is very good then you can do the delta 16 but in current environment when IV is not too high or too low the 30 delta gives you the sweet spot of enough premium without too much too much whiplash
Don't think of it as a suggestion of which delta to select. That's not what they are trying to do. Try to understand the risk reward trade off that each delta represents. We all have different risk tolerances. Tom and Tony have a difference risk tolerance based on their personal experiences. If they are suggesting anything it's to start low and go slow.
Blast here also......1st strategy was explained in gr8 details....same reduced as progressed.....e.g VIX & delta ... outstanding clarity was provided 👍👍
IMHO, not only is Tony one of the most knowledgeable traders but he is one of the worlds best dads. I know he isn’t my dad but to this day I’m still waiting for him to adopt me!
Thanks Tony! Awesome presentation with Tons of information. I'm going take a few days to digest. Being a relatively new trader, I appreciate you laying it all out there in an organized manner.
Nice crunch course. Will be looking for more of these. It needs to be said I got about 40% of this because learning to know directions on Calls and Puts and the Greeks takes time. DELTA understanding and how to shop them. It will take more videos to break these components down as many of those get tripped up as I attach these in theory. YTB Tony!
Good stuff Tony but I have a question...when you say to do the strangle at a 30 delta does that mean sell the 15 delta put and 15 delta call? I would think if I sold a 30 delta put plus 30 delta call that would only be 40% chance of success?
Thank you very much Tony. I sure did have a blast especially for a newbie like me. I just happen to catch your channel with Tom. Looking forward for more insights from you guys.
So In esscence we ar using the Delta amt. to determine if the stock will break above or below our stikes causing the short strangle to be ITM or worthless to us as being on the short side? For instance what if another indicator such as elliott wave or ADX is expecting a breakout ?
This was the most informative 17 minute video ever. I watched the video to try to fall asleep at 3am but am wide awake now and will not get any more sleep tonight. Thank you very much for the information. Invaluable
Good overview of the main strategies. About the iron condor "width of the strikes" : I think you can be a bit more clear that you mean the width of the put spread, which equals the width of the call spread.
Question, when you say "Roll the untested side" (strangle example) do you mean sell puts or calls? Example, trade breaches your call so defensively you'll sell higher puts?
High IV Rank very easy to find.....If you live in the USA. Tastyworks and or ToS not available here as far as I know and if Im wrong please enlighten. So if these are not available how about a 3rd "easy" place to find for us unfortunate Crazy Canadians following you guys....Love your work, all of you guys!
It is end April 2022 ..market is down for days and days ….can I sell a strangle in these times…ie ..does strangle work in all market scenarios….or should I just be selling puts as the market dives south day in day out ….or is strangle perfect as the call side makes money as we drop …and if we recover eventually ..the puts make money….thanks all.
30∆ for higher P/L with lower success rate. 16∆ for lower P/L with higher success rate. Take your pick, but always stay small, so your portfolio can tolerate a loser when they happen.
@nosynchro Keeping it small sounds like good advice to me. Can I ask you something pls...if you were in a vertical credit call spread (which is neutral to bearish) that moved against you in Lam Research what would you do? We missed our exit and the stock rallied. We could have bought some of the underlying shares, or another call but it may be too late. Both short & long call are deep in the money with 2 weeks for expiration. Would you roll back to a farther expiration with straddling the underlying trying to keep delta neutral? Thanks
