Are Your Options Trades Actually Profitable? (The 20% Benchmark)

In this Options in Action, Mike Butler reduces return on capital to a single filter: credit collected against the buying power you actually put up, not the theoretical max risk. His rule of thumb is 20 percent or better, and he shows why a high implied volatility product tends to clear that bar while a low volatility one usually cannot, using two names at very different prices to make it concrete. 📊 tastylive: https://www.tastylive.com/ 📰 Get Tom's pre-market analysis every morning: https://www.tastylive.com/newsletters 📘 FREE Options Strategy Guide: https://tinyurl.com/bp9ms763 📱 Follow tastylive on X: https://x.com/tastyliveshow Chapters 00:00 What this series is 00:36 Return on capital, defined 01:33 Why max risk is the wrong lens 02:07 Buying power is what matters 02:44 Selling premium in a high vol name 03:29 The strangle version 03:54 The debit side alternative 04:13 Manipulating reward versus risk 05:23 The low vol name to avoid 06:44 Why cheap options suit debits 07:41 Building a zebra instead 09:32 The 20 percent benchmark recap #tastylive #optionsinaction #returnoncapital #buyingpower #impliedvolatility #premiumselling #debitspreads #optionsstrategy #optionstrading #stockmarket tastylive is a real financial network, producing hours of live programming every day. Follow along as our experts navigate the markets, provide actionable trading insights, and teach you how to trade. With over 120 original segments, and over 25 personalities, we'll help you take your trading to the next level, whether you are new to trading or a seasoned veteran. 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 and the Futures and Exchange Traded Options Risk Disclosure Statement found at https://tastytrade.com/disclosures/. 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.