Do Not Start Selling Naked Puts on Micron. Tom Preston Says Do This Instead

Options trading education: you understand verticals, iron condors, and defined risk. So why would anyone sell naked puts or strangles instead? Tom Preston explains the two real reasons: higher probability of profit and faster profit. On an SPX example, turning a strangle into an iron condor dropped the probability from 48% to 15%. But undefined risk is as much a psychological step as a strategy one. His advice for making the jump: do not start on Micron or SPX. Start on low priced stocks under 20 dollars where the buying power requirement is small. 📊 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 You know the strategies, why go undefined risk? 00:53 The psychological step of undefined loss 01:40 Two reasons: higher probability and faster profit 02:46 SPX example: strangle at 48% vs condor at 15% 04:17 Micron: a $16,000 buying power, $75,000 max loss 05:24 Turning it into a put spread drops everything 05:51 Why the vertical takes longer to make the same profit 06:39 The real question is the psychology of the loss 07:02 Do not start on a $944 stock or SPX 07:15 Start on stocks under $20 for smaller buying power 08:36 Paramount example: selling the 9 put 10:19 VTRS example: naked put vs vertical 11:53 Build the psychology on lower risk products first #tastylive #nakedputs #undefinedrisk #optionstrading #premiumselling #tompreston #cherrybomb #optionseducation #probability #tastytrade 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.