When A Fifty Percent Target Actually Gets Hit

tastytrade4 hours ago16:04

If you sell premium and manage at fifty percent, this Cboe backed study has a number for you. Across ten years of SPY strangles, that target was hit on more than eighty percent of trades, but only after holding for roughly sixty percent of the contract's life. Elevated volatility did not change the odds of getting there, only the speed. The longest dated contracts gained the most, reaching the target nearly twenty percent faster when the VIX was above thirty, though those conditions were rare. Study results are historical, not predictive. πŸ“Š tastylive: https://www.tastylive.com/ πŸ“° Get Tom's pre-market analysis every morning: https://www.tastylive.com/newsletters πŸ“˜ FREE Options Strategy Guide: https://tinyurl.com/bp9ms763 πŸ“± Follow tastylive on X: https://x.com/tastyliveshow Chapters 00:00 What this study is about 00:31 Why volatility matters to sellers 01:16 How the study was built 02:17 Past the halfway point 03:12 Average days held by duration 04:24 Why shorter trades use smaller targets 05:14 Bringing the VIX into it 06:19 Where the profit actually comes from 07:07 Raw VIX versus relative signals 07:52 A real volatility collapse 09:20 The same thing in a single name 10:07 Which duration benefits most 11:50 What they are studying next 12:57 The takeaways #tastylive #strangle #optionstrading #thetadecay #impliedvolatility #premiumselling #optionsresearch #spy #optionseducation #trading 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.