Best Practices Podcast
https://www.tastytrade.com
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℗ & © 2011 tastytrade, Inc.
The tastytrade network teaches investors innovative, simple ways to trade stocks, options, and futures, take advantage of market volatility and build a successful portfolio. Tom Sosnoff leads an irreverent and playful band of floor traders who are show...
tastytrade, Inc.
The tastytrade network teaches investors innovative, simple ways to trade stocks, options, and futures, take advantage of market volatility and build a successful portfolio. Tom Sosnoff leads an irreverent and playful band of floor traders who are showing America a new way to quickly find low risk, high return strategies in bullish, bearish and sideways markets.
The tastytrade network teaches investors innovative, simple ways to trade stocks, options, and futures, take advantage of market volatility and build a successful portfolio. Tom Sosnoff leads an irreverent and playful band of floor traders who are showing America a new way to quickly find low risk, high return strategies in bullish, bearish and sideways markets.
tastytrade, Inc.
support@tastytrade.com

Best Practices  July 24, 2017  Effective Ways to Understand Delta
For today’s segment of Best Practices, Tom and Tony discuss effective ways to understand delta. As one of the most prominent [Greeks](https://www.tastytrade.com/tt/learn/anintrotothegreeks), Delta is a metric often used and reviewed when placing an...
For today’s segment of Best Practices, Tom and Tony discuss effective ways to understand delta. As one of the most prominent [Greeks](https://www.tastytrade.com/tt/learn/anintrotothegreeks), Delta is a metric often used and reviewed when placing and managing trades.
[Delta](https://www.tastytrade.com/tt/learn/delta) can be interpreted in 4 ways:
* Directional Bias
* Share equivalency
* Options needed to deltahedge a stock position
* Probabilities of market moves
###Directional Bias:
A positive delta shows a bullish position, and a negative delta shows a bearish position.
###Share Equivalency:
The delta value corresponds to the number of shares the position represents (helps gauge risk).
###Delta Hedging:
We can use delta to determine the number of options needed to delta hedge a stock position.
###Market Moves:
We can use delta to approximate probabilities.
http://feeds.tastytrade.com/media/69733/TTL_BP_170724_POD.m4a
Mon, 24 Jul 2017 08:26:00 0500
937.807
Option Delta

Best Practices  July 24, 2017  Effective Ways to Understand Delta
For today’s segment of Best Practices, Tom and Tony discuss effective ways to understand delta. As one of the most prominent [Greeks](https://www.tastytrade.com/tt/learn/anintrotothegreeks), Delta is a metric often used and reviewed when placing an...
For today’s segment of Best Practices, Tom and Tony discuss effective ways to understand delta. As one of the most prominent [Greeks](https://www.tastytrade.com/tt/learn/anintrotothegreeks), Delta is a metric often used and reviewed when placing and managing trades.
[Delta](https://www.tastytrade.com/tt/learn/delta) can be interpreted in 4 ways:
* Directional Bias
* Share equivalency
* Options needed to deltahedge a stock position
* Probabilities of market moves
###Directional Bias:
A positive delta shows a bullish position, and a negative delta shows a bearish position.
###Share Equivalency:
The delta value corresponds to the number of shares the position represents (helps gauge risk).
###Delta Hedging:
We can use delta to determine the number of options needed to delta hedge a stock position.
###Market Moves:
We can use delta to approximate probabilities.
http://feeds.tastytrade.com/media/69732/TTL_BP_170724_SEG.mp4
Mon, 24 Jul 2017 08:26:00 0500
868.802
Option Delta

Best Practices  July 17, 2017  Earning's Season
For this Best Practices, Tom and Tony discuss how we should trade the upcoming [earnings](https://www.tastytrade.com/tt/learn/earnings). What do we need to know to trade earnings?
There are four main topics to consider [when placing](https://www.ta...
For this Best Practices, Tom and Tony discuss how we should trade the upcoming [earnings](https://www.tastytrade.com/tt/learn/earnings). What do we need to know to trade earnings?
There are four main topics to consider [when placing](https://www.tastytrade.com/tt/learn/orderentrychecklist) earnings trades:
• Expected Move
• When to place the trade
• Which cycle to use (weekly or monthly)
• Possible strategies based on market conditions
Earnings allow for an increase in a number of occurrences while taking advantage of [High IV](https://www.tastytrade.com/tt/learn/measuringimpliedvolatility). We select strategies depending on risk preferences and assumptions of the underlying.
http://feeds.tastytrade.com/media/69483/TTL_BP_170717_POD.m4a
Mon, 17 Jul 2017 08:26:00 0500
952.227

Best Practices  July 17, 2017  Earning's Season
For this Best Practices, Tom and Tony discuss how we should trade the upcoming [earnings](https://www.tastytrade.com/tt/learn/earnings). What do we need to know to trade earnings?
There are four main topics to consider [when placing](https://www.ta...
For this Best Practices, Tom and Tony discuss how we should trade the upcoming [earnings](https://www.tastytrade.com/tt/learn/earnings). What do we need to know to trade earnings?
There are four main topics to consider [when placing](https://www.tastytrade.com/tt/learn/orderentrychecklist) earnings trades:
• Expected Move
• When to place the trade
• Which cycle to use (weekly or monthly)
• Possible strategies based on market conditions
Earnings allow for an increase in a number of occurrences while taking advantage of [High IV](https://www.tastytrade.com/tt/learn/measuringimpliedvolatility). We select strategies depending on risk preferences and assumptions of the underlying.
http://feeds.tastytrade.com/media/69482/TTL_BP_170717_SEG.mp4
Mon, 17 Jul 2017 08:26:00 0500
883.216

Best Practices  July 10, 2017  Trade Mechanics for Entry & Management
When [entering a trade](https://www.tastytrade.com/tt/learn/orderentrychecklist) there are four things that we consider:
* Liquidity
* [Implied Volatility](https://www.tastytrade.com/tt/learn/impliedvolatility)
* Price
* Strategy
### Liq...
When [entering a trade](https://www.tastytrade.com/tt/learn/orderentrychecklist) there are four things that we consider:
* Liquidity
* [Implied Volatility](https://www.tastytrade.com/tt/learn/impliedvolatility)
* Price
* Strategy
### Liquidity:
* Liquidity is important because if we can't get filled, we can't paid.
* Liquid: Bidask spread between .$0.01$0.05
* Semiliquid: Bidask spread between $0.06$0.50
* Illiquid: Bidask spread> $0.50
### Implied Volatility:
* We use [IVR](https://www.tastytrade.com/tt/learn/measuringimpliedvolatility) to measure if IV is high or low
* IV helps to determine strategy
### Price:
* BPR is effected by price, BPR also has influence on strategy chosen
* We can use price to determine if we want to make a directional trade
### Strategy:
* We can choose our strategy based on many things, some include:
* IV level
* Directional bias
* BPR
Tune in as Tom and Tony discuss this checklist in depth!
http://feeds.tastytrade.com/media/69268/TTL_BP_170710_POD.m4a
Mon, 10 Jul 2017 08:25:00 0500
1011.438

Best Practices  July 10, 2017  Trade Mechanics for Entry & Management
When [entering a trade](https://www.tastytrade.com/tt/learn/orderentrychecklist) there are four things that we consider:
* Liquidity
* [Implied Volatility](https://www.tastytrade.com/tt/learn/impliedvolatility)
* Price
* Strategy
### Liq...
When [entering a trade](https://www.tastytrade.com/tt/learn/orderentrychecklist) there are four things that we consider:
* Liquidity
* [Implied Volatility](https://www.tastytrade.com/tt/learn/impliedvolatility)
* Price
* Strategy
### Liquidity:
* Liquidity is important because if we can't get filled, we can't paid.
* Liquid: Bidask spread between .$0.01$0.05
* Semiliquid: Bidask spread between $0.06$0.50
* Illiquid: Bidask spread> $0.50
### Implied Volatility:
* We use [IVR](https://www.tastytrade.com/tt/learn/measuringimpliedvolatility) to measure if IV is high or low
* IV helps to determine strategy
### Price:
* BPR is effected by price, BPR also has influence on strategy chosen
* We can use price to determine if we want to make a directional trade
### Strategy:
* We can choose our strategy based on many things, some include:
* IV level
* Directional bias
* BPR
Tune in as Tom and Tony discuss this checklist in depth!
http://feeds.tastytrade.com/media/69267/TTL_BP_170710_SEG.mp4
Mon, 10 Jul 2017 08:25:00 0500
942.5

Best Practices  July 5, 2017  Volatility Insights
For today’s Best Practices, Pete and Tony discuss Volatility insights. Understanding Implied volatility is important for any trade and essential for traders who primarily sell premium.
We can take away six main points on volatility.
1. Inverse Re...
For today’s Best Practices, Pete and Tony discuss Volatility insights. Understanding Implied volatility is important for any trade and essential for traders who primarily sell premium.
We can take away six main points on volatility.
1. Inverse Relationship – Volatility and price have a negative [correlation](https://www.tastytrade.com/tt/learn/correlation)
2. Volatility is mean reverting – Volatility contracts back toward the average after expansions
3. Volatility Clusters – Volatility tens to cluster at its highs and lows.
4. Volatility varies for different time frames – Nearterm maturities trade at a higher [implied volatility](https://www.tastytrade.com/tt/learn/impliedvolatility)
5. Volatility Skew – Volatility skews to the downside in equities
6. Implied Volatility is Tradable – Volatility has multiple products available to trade (e.g. VIX and /VX)
Find out how Brick from the tastytrade Research Team uses volatility in his [order entry](https://www.tastytrade.com/tt/learn/orderentrychecklist)
and [management](https://www.tastytrade.com/tt/learn/managingwinners). Watch the segment!
http://feeds.tastytrade.com/media/69132/TTL_BP_170705_POD.m4a
Wed, 05 Jul 2017 08:27:00 0500
1002.776

Best Practices  July 5, 2017  Volatility Insights
For today’s Best Practices, Pete and Tony discuss Volatility insights. Understanding Implied volatility is important for any trade and essential for traders who primarily sell premium.
We can take away six main points on volatility.
1. Inverse Re...
For today’s Best Practices, Pete and Tony discuss Volatility insights. Understanding Implied volatility is important for any trade and essential for traders who primarily sell premium.
We can take away six main points on volatility.
1. Inverse Relationship – Volatility and price have a negative [correlation](https://www.tastytrade.com/tt/learn/correlation)
2. Volatility is mean reverting – Volatility contracts back toward the average after expansions
3. Volatility Clusters – Volatility tens to cluster at its highs and lows.
4. Volatility varies for different time frames – Nearterm maturities trade at a higher [implied volatility](https://www.tastytrade.com/tt/learn/impliedvolatility)
5. Volatility Skew – Volatility skews to the downside in equities
6. Implied Volatility is Tradable – Volatility has multiple products available to trade (e.g. VIX and /VX)
Find out how Brick from the tastytrade Research Team uses volatility in his [order entry](https://www.tastytrade.com/tt/learn/orderentrychecklist)
and [management](https://www.tastytrade.com/tt/learn/managingwinners). Watch the segment!
http://feeds.tastytrade.com/media/69131/TTL_BP_170705_SEG.mp4
Wed, 05 Jul 2017 08:27:00 0500
933.833