You Won't Believe What Happens Next!

Selling puts has been one of the most rewarding strategies of this bull market, which is exactly why this Tasty Research segment asks what happens to them when the market drops fast. Sahil and his co-host compare naked short puts against defined risk put spreads across every selloff since 2021, and the pattern is consistent: the naked side gives back far more in each crash, because the tail risk it carries has no floor. 📊 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 happens when it crashes fast 01:15 The study setup 02:53 Cumulative P&L since 2021 04:08 Naked gives back twice as much 04:55 The three reasons losses cluster 05:37 The Vega spike 05:52 Spreads widen when you exit 07:09 Comparing loss by loss 07:34 Why a long selloff hurts most 09:48 Capital allocation and the wings 11:20 Per dollar of capital 12:26 How to avoid the big losses 13:08 The takeaways 13:32 Why the win rate misleads 14:10 Risk is convex 14:26 Duration beats the spike #tastylive #tastyresearch #shortputs #putspreads #tailrisk #definedrisk #optionsstrategy #riskmanagement #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.