Option Trading: Managing Deltas is Essential when Trading with Limited Capital..

Understanding the basics of delta helps us decide what strike prices to trade and what strategies to implement. Subscribe to tastytrade: https://www.tastytrade.com/tt/users/sign_in and get complete archive access. Learn proper strategies, when Trading Brokerage Account with limited capital, live every Wednesday at https://tastytrade.com/tt/live

Comments

1. when we take off 20 delta, are we're not long 6 AAPL total? why did Tom say we remove only 50% of the risk by selling one put spread?
2. Can this be revisited with an example? I think people get the idea of using credit spreads, and can appreciate the possibility of lowering delta risk. However, an example of how this is actual done might help to clarify the mechanics of the additional trades!
   
   Thanks!
3. I have watched a ton of TT videos but this one really turned the light bulb on in my head.So if you sell a vertical and it's going against you be a contrarian to your own trade. It's impossible to lose both ways and you're also reducing cost basis. The best of both worlds would be if the underlying price parked right in the middle...then you win twice. I have been studying options for about a year and I'm getting so much better managing my small portfolio...thanks TT.
4. Dude comiccon kicks ass xD
5. Either a tastytrade viewer or they've had their vehicle stolen.
6. Guys where can I get one of those stickers????