Sell Options as a Business

The idea of trading for a living – or having your own trading business – is appealing to many people: you get to be your own boss, set your own schedule and work from home while enjoying virtually unlimited income potential. In addition to these factors, anyone with a computer, Internet connection and a small trading account can give it […]

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Diversification for small portfolios

When we talk about selling options in the form of strategies like the short Strangle, we often start with the profitability of the trade. When was it particularly profitable? When should we maybe reduce trade size? How does buying protection affect that profitability? And while these questions are all important, they are nothing without an underlying diversification in a portfolio of […]

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Price Action Trading System?

What is a Price Action Trading System?  Price Action trading is a method that is commonly used by many traders. Most professional traders use a very logical system that is not complicated, whereas most amateur traders are hung up looking for the “Holy Grail” system and indicators that will bring them all their riches overnight. Price Action is a system […]

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Trade small and trade often

At tastytrade they consider themselves as statistical traders. As statistical traders, a fundamental aspect of our trading strategy revolves around selling options with high probability of profit. Another aspect is the number of occurrences This means that the number of trades we enter is using the buying power in the trading account. We want to have the highest number of occurrences […]

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Are options risky?

Whatever you do there is a risk. In some decisions there are more risk involved than others. This counts also for trading, whether you trade stocks or options. When you buy stocks all your money you bought the stock for is on the line. However when you buy an option it is in essence like an insurance.  Would you consider […]

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