tastytrade LIVE - September 23, 2020 - Balancing Profit and Tail Risk


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Sep 23 2020 8 mins   7
Short premium trades become more profitable, on average, as they approach expiration due to theta decay; however this comes with the tradeoff of higher P/L tail risk. We generally balance these risk-reward factors by managing contracts roughly halfway to expiration. Join Tom and Tony today as they see this in action with 45 DTE 16 Delta SPY strangles.