@@OptionsPlay Tony, do you not think we are close to a bottom yet? As I recall, Options Play stated we should be near a bottom 2 weeks ago. Yesterday’s show was a very different tone though. Does this mean we are getting close to a market panic sell-off in your opinion? Thanks!
@@ricardoschossland7356 Thank you for your feedback. Calling a bottom is always best accomplished in hind sight. However, we can look at technical analysis and data to help us understand surrounding factors. Right now there are various factors effecting the market. Such as, (but certainly not limited to) interest rates, a hot labor market, and supply chain constraints - all contributing to extremely high inflation. In order to call a bottom, the market needs to digest all information as it is consumed. We are looking for inflation to normalize, the labor market to cool off, and supply/ demand to find equilibrium. Make sure you check out Prakash’s Friday outlook and Ricks Monday Market view for more information on the market overall.
Around the 14 minute mark Tom said, "You are buying a debit spread and collecting premium at the same time." I am confused by this. I know you collect premium on the short leg, but can you clarify this statement.
It’s only in that specific example, where the premium paid for the option is less than the intrinsic value. Meaning the debit spread actually had positive theta. It doesn’t happen often but in the extreme volatility environment in the example that we used it is theoretically possible.
@@OptionsPlay The intrinsic value was 5 and the premium was 2.40, correct? So it was less than half the intrinsic value. Was that his objective? What are the theta’s in this example to give it a net positive theta? I can’t see from his screen.
Hello About credit spread How do you choose how wide to do?the distance between the strikes Second question do you have some trades with pair trade strategy Thank you
We use a delta to choose our strike prices, which adjusts for the volatility of the stock. The higher the volatility, the wider the spread. We do offer pairs trading, but you can only do it with the underlying stock, not an options trade.
Hope you all enjoyed this session with Tom! Make sure to ask your questions below!
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Thanks for this interview with Tony. It consolidates a lot of things that he says off the cuff on Tasty.
INCREDIBLE. THIS WAS AN AWESOME GIFT. I HAVE TAKEN COPIOUS NOTES. TREMENDOUS THANKS.
Thanks for watching!
Great video!
Thanks!
@@OptionsPlay Tony, do you not think we are close to a bottom yet? As I recall, Options Play stated we should be near a bottom 2 weeks ago. Yesterday’s show was a very different tone though.
Does this mean we are getting close to a market panic sell-off in your opinion?
Thanks!
@@ricardoschossland7356 Thank you for your feedback. Calling a bottom is always best accomplished in hind sight. However, we can look at technical analysis and data to help us understand surrounding factors. Right now there are various factors effecting the market. Such as, (but certainly not limited to) interest rates, a hot labor market, and supply chain constraints - all contributing to extremely high inflation. In order to call a bottom, the market needs to digest all information as it is consumed. We are looking for inflation to normalize, the labor market to cool off, and supply/ demand to find equilibrium. Make sure you check out Prakash’s Friday outlook and Ricks Monday Market view for more information on the market overall.
Great session with Tom as usual. Hope there is another coming soon.
Thanks for your insight!
So the Tastyworks is not yet in Canada?
My pleasure!
Awesome!
Thanks!
Does the tastytrade's new account offer apply to people in Australia or just in the U.S?
Tastyworks does offer an Australian entity.
Areyou also trading spreads playing the slope of the vix term structure?
Around the 14 minute mark Tom said, "You are buying a debit spread and collecting premium at the same time." I am confused by this. I know you collect premium on the short leg, but can you clarify this statement.
It’s only in that specific example, where the premium paid for the option is less than the intrinsic value. Meaning the debit spread actually had positive theta. It doesn’t happen often but in the extreme volatility environment in the example that we used it is theoretically possible.
@@OptionsPlay The intrinsic value was 5 and the premium was 2.40, correct? So it was less than half the intrinsic value. Was that his objective? What are the theta’s in this example to give it a net positive theta? I can’t see from his screen.
Hello
About credit spread
How do you choose how wide to do?the distance between the strikes
Second question do you have some trades with pair trade strategy
Thank you
We use a delta to choose our strike prices, which adjusts for the volatility of the stock. The higher the volatility, the wider the spread.
We do offer pairs trading, but you can only do it with the underlying stock, not an options trade.