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Option Trading: Build a Portfolio that creates ~ 1% Theta Decay per day
Рет қаралды 136,066
11 жыл бұрынSubscribe to our Second Channel: @tastylivetrending
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tastylive content is created, produced, and provided solely by tastylive, Inc. (“tastylive”) and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. Options, futures, and futures options are not suitable for all investors. Prior to trading securities, options, futures, or futures options, please read all applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure(www.theocc.com/company-inform...) and the Futures and Exchange Traded Options Risk Disclosure Statement(assets.tastyworks.com/product....
Past performance is not indicative of future results. Performance is not presented net of all commissions, fees, and expenses. Multi-leg option strategies incur higher transaction costs than single leg trades as they involve multiple commission charges. Examples provided are for illustrative, informational, and educational purposes only and are not intended to be reflective of results you can expect to achieve. Supporting documentation for any claims (including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request.
tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer.
tastytrade, Inc. (“tastytrade”) has entered into a Marketing Agreement with tastylive whereby tastytrade pays compensation to tastylive to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of tastylive by tastytrade. tastytrade and tastylive are separate, but affiliated, entities with their own products and services. tastylive is the direct parent company of tastytrade.
@timothyjoe5343 9 жыл бұрын
ACTUAL DISCUSSION begins at: 7:21. They rant way too much.
@lookingatthemarkets 8 жыл бұрын
Agreed. First 7 minutes are a waste of everybody's time
@osirustwits 7 жыл бұрын
I actually enjoy it it is nice to have someone else's opinion on the history of the market.
@adas19581024 6 жыл бұрын
Timothy Joe To me it is equally interesting, though my market and culture language all are so different!
@RellybeThebest 5 жыл бұрын
Thank you
@musama8771 5 жыл бұрын
It's because it's a live show and they need to kill time, but I hope they only uploaded the important parts.
@zwiftfaster 4 жыл бұрын
"Hey, nobody cares about Tesla." I love that Tom said that. 7 years later and they both drive Teslas and it's the most valuable car company in the world. This goes to show how dynamic our world is.
@gzarza 4 жыл бұрын
as soon as I heard that I came to the comments. lol
@zwiftfaster 4 жыл бұрын
@@gzarza hahah I love it
@carllu5827 3 жыл бұрын
@@gzarza lol same
@MrChonkers 3 жыл бұрын
but they still don't care
@iCodeForBananas 3 жыл бұрын
You missed what they said about Tesla.
@ButterNutter37 4 жыл бұрын
TSLA @ $82, such a throwback!
@serbanalex3228 3 жыл бұрын
Hello, from the future, it's like 800 bucks now 😂😂
@serbanalex3228 3 жыл бұрын
Like, after split
@billstevens5277 3 жыл бұрын
It would be overpriced now at 82.
@Khimera66 Жыл бұрын
@@serbanalex3228 Hello from the future future it is now at 330 Pre-split ^^; Still not bad considering the shooting of the video though.
@yuselbionovas8108 4 ай бұрын
It's at 168 now
@craiggarrett34 3 жыл бұрын
The title of the video should be updated to say 0.1% of Theta per day.
@skyviewtrading 8 жыл бұрын
Awesome video. We also like to make sure we are long theta. Keep that money rolling in every day.
@kyleparrish8745 4 ай бұрын
Great convo 👍🏻 been trading options for 6 months now. Watched hundreds of videos. This channel and tastytrade have the best options content by far.
@Thecasualmarketer 10 жыл бұрын
$2,500 x .01( 1%) clearly equals $25... what am I missing here? Love TastyTrades stuff but maybe there math isn't the greatest haha.
@cruisemates 5 жыл бұрын
@run2daylite73 - I think the mistake was the slide said the $25k figure was the portfolio value, when the test recommended Theta at 1% of net liquidity (which should be closer to 75k)
@jonathanatmycampbell 4 жыл бұрын
At the very end like last 20 seconds they say “1% should be 0.01%.” But I’m still not sure if they meant .01% or .1%.
@SereneSoundTracksTV 3 жыл бұрын
Yeah it was a mistake. Goal is 0.1%
@crftr-com 3 жыл бұрын
15:50 is where they mention the correction
@ipbyrne 3 жыл бұрын
It's return on capital. So the account is $2500 but only deploys 10% of capital at a time, and makes 1% per day on that.
@spanishwithrobyn 11 жыл бұрын
YOU GUYS ARE GREAT
@btaylor9661 7 жыл бұрын
I have a ira account so ould not do this trade but can I do this if I own shares in a stock and is it still a strangle. is the return on capital similiar if I sell the call and put against it? I have a decent sized account.
@wid3908 3 жыл бұрын
So trade higher Iv rank stocks in iron condor basically?
@serenax.3622 2 жыл бұрын
Best financial content ever!!!
@DaveArrkain 6 жыл бұрын
It's not 1% OR 0.01%. 2.50 is 0.1% of 2,500. Come on guys. Don't confuse everyone please.
@SK-qj3oj 3 жыл бұрын
Agreed, they failed basic math
@michaelf7093 3 жыл бұрын
10 basis points per day
@JonValtandtheEvilRobots 2 жыл бұрын
Haha yeah I came to the comments for the same reason. So the title of the video should be how to earn 0.1% a day?
@arnaudhamida5360 Жыл бұрын
I have à question when the decay is applied ? At the end of the during when the market close or at each variation like other component of the formula
@fungdark8270 Жыл бұрын
It just comes off over the course of the day basically
@tastyliveshow 11 жыл бұрын
the tastytrade network!
@dwayneprimeau Ай бұрын
This is great advice to apply to life
@kreed1004 6 жыл бұрын
Tom is hard as hell to follow.
@vsaldanas 11 жыл бұрын
what are the best online trading classes, that can teach me how to buy and sell options, for beginners?
@averagejoey2000 4 жыл бұрын
this
@ChaplainDaveSparks Жыл бұрын
I think you’ve *FINALLY* decided that you’re right - the market *IS* fair. Previously, I would have argued that it was an UNfair, *3-sided* market, with the _”house”_ being the *MARKET MAKERS.*
@robspecht9550 4 жыл бұрын
“I live in a Paperless World”...Shuffles around dozens of papers.
@sedul2006 4 жыл бұрын
1% theta decay seems like a lot. IS that 1% of the Margin Used or 1% of Net Liq (i.e. $100k Net Liq Portfolio, $50k Margin for Options). 1% of Margin used would be $500 / per day. seems more reasonable, or 0.5% of Net Liq. This being a general target
@federosso90 Жыл бұрын
In the first page they talk about 1% decay but in the example they say 2.5 out of 2500 which is 0.1%. Which one is correct?
@jRoy7 Жыл бұрын
0.1%, look for a reply by @johnmeeker9752
@ryne16 Жыл бұрын
0.1%, but they never updated the video title.
@Dawgenson 11 жыл бұрын
I don't get it.... 25 is 1 % of 2500, why did they change it to 2.50 ?
@averagejoey2000 4 жыл бұрын
the option multiplier is 100 shares. 2.50 premium is 250 in cash
@2011blueman 11 жыл бұрын
I favorited the shit out of this video. Great stuff.
@NotUpdated005 Жыл бұрын
@tastylive ~ this surely has to be .2% not a full 1% per day Theta Decay target... please revisit this topic.
@Kevinschart 10 жыл бұрын
when he says 1% theta decay per day is he talking about gross profits (cash in hand) after closing all trades?
@orvillecaval 9 жыл бұрын
Market price, so gross UNREALIZED profits/losses depending on whether you are long or short.
@pennystocktitan6355 10 жыл бұрын
Well, you could, bet/buy the Blackhawks to lose, r did I not understand correctly?
@HBStone 6 жыл бұрын
The options equivalent of their sports book example would be if you could buy calls or buy puts, but NOT sell calls or puts. So yes you can buy the Blackhawks to lose, but you're still paying the bookmaker's price, not (necessarily) a fair market price.
@shinbaek7186 4 жыл бұрын
TSLA in 80s? what decade is this?
@Bondanalloy 4 жыл бұрын
watching this in 2020 and seeing tesla under 100 lol
@roroguapo3 3 жыл бұрын
7:30
@stevenjustice8258 3 жыл бұрын
9:52 Why gme buy stoppage was a crime. It is only fair if you can play both sides. Apex clearly execs should be in jail.
@stevenjustice8258 3 жыл бұрын
16:50 1% is 25
@videosuperhighway7655 9 жыл бұрын
BUT! dont forget delta/gamma :)
@ChaceBonanno 6 жыл бұрын
Neutral
@cmhvacr1010 5 жыл бұрын
VIDEOSUPERHIGHWAY gamma yawn
@EugeneHaroldKrab 4 жыл бұрын
beta weight it and adjust when delta crosses 50.
@Doctor_C_ 4 жыл бұрын
@@EugeneHaroldKrab Please explain this more, thanks
@koinkap 2 жыл бұрын
I generally don't touch >20∆
@iCodeForBananas 3 жыл бұрын
These guys are hilarious
@carlfeathers808 11 жыл бұрын
You use only 10% of Portfolio Cash to trade to protect yourself. $2500 x 10% = $250. So $250 x 1% = $2.50
@KayP1 3 жыл бұрын
But that's not a realistic approach. With margin or cash secured, u don't get that 1% return on the portfolio, unless u play extremely high IV. With futures options possible but not stock options.
@ShortStuff0000 4 жыл бұрын
Straighten papers...straighten some more...not straight enough...oops once more...there that's perfect.
@johnstein4516 Жыл бұрын
1% or .1%
@markmiller3256 3 жыл бұрын
Kill a tree every day? Should wood futures be up? HAHA
@don7138 3 жыл бұрын
LOL
@jerseycornboy 5 жыл бұрын
I'm new in options but have been trying to get the lingo down. Listening to any of these tasty guys they talk a mile a minute and seem to be all over the place talking about alpha dog upside with equal quasi downside coupled with theta copulation taking upside downside theta decay on price action of weeklies of percent decay times actual cost conference times 65. What the hell is all that shit!!! Spell the shit out talk a little slower and know that you have people that aren't experts listening trying to learn something new.
@cruisemates 5 жыл бұрын
Tom is hard to follow when he explains things - and sometimes I don't know if I am missing something or if he is saying something the wrong way (I could point out the most confusing videos but I won't). Tony usually catches it when that happens but not always. Anyway - you really have to go through all of the learning and also start trading these options to get a handle. It does get easier. It is also important to remember that this is an evolving process even for these giys. I have only been here a month or so, but I have already figured out some of the things they said 5 years ago (about managing, etc) have changed over time.
@ButterNutter37 4 жыл бұрын
I realize your comment was about a year ago, but if you are still at a novice level for options trading, I'd suggest starting with videos from many of the other professionals on KZfaq. Once you have a more solid understanding, coming back here will be extremely helpful. These videos are for new traders, but I'd say they are for upper level new traders at best.
@user-vq4mt4zd4e 3 жыл бұрын
the same issue for me in that tom talks very fast. my solution is to slow down the playback speed until i am comfortable with the rate that tom is speaking and i can comprehend it better.
@BenDover-ku1yj 11 жыл бұрын
are u serious..u think ur system is better than this?
@Wabu1 7 жыл бұрын
karen!
@johnreynolds982 2 жыл бұрын
1% would be .0001, not .01
@carsonc1272 Жыл бұрын
The title says 1% (.01) per day, they talk about making 1% (.01) per day, but the math that they use works out to .1% (.001) per day... $2500 x .001 = $2.50. Do you really want to take advice on this kind of a topic from two guys that can't do math???
@sigmayacht 11 жыл бұрын
How can you only focus on Theta alone? You're going to get shitted on when your gamma moves against you. Anyone who's trading options that hasn't read something by Taleb is wasting their time.
@bakerdow9884 4 жыл бұрын
You are not very open minded my friend, when there's a will, there's a way....
@andrewlarspatterson 2 жыл бұрын
Taleb is not famous. Tasty Trade is Infamous. That means more than famous.
@IanBuell 4 жыл бұрын
Are you telling me you can earn 1% on your trading account PER DAY this way???!!!
@ByGraceThroughFaith777 11 жыл бұрын
its a scam :)
@hiatuz3512 5 жыл бұрын
Bet you still an idiot 5years later.
@cmhvacr1010 5 жыл бұрын
@@hiatuz3512 yes he is he cant help it hes spanish
@mtor9452 5 жыл бұрын
@@hiatuz3512 lol 100% 😂
@bakerdow9884 4 жыл бұрын
@@cmhvacr1010 I am what would be considered a "minority" aka black (british), but I have to agree. When I lived in Barcelona Spain, I found them too emotionally unstable to consider enterprise with. Moved to Poland and they handle the coronavirus situation pretty well being less spoilt vs the West, and easier at doing business with.
tastylive
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