tastytrade is excited to announce a new segment on the network entitled Live From Research.
Having launched this summer, Live From Research expands on tastytrade's existing lineup by offering direct access to one of the most important creative engines in the company.
In concert with the tastytrade research team, Tom Sosnoff and Tony Battista guide viewers through examples of trading ideas, the trade selection process, and the practical application of many concepts previously featured on the network.
The show typically begins with each member of the research team presenting their favorite trading idea based on current market conditions. Tom and Tony then discuss each of the ideas and choose their favorite of the bunch. The ensuing discussion provides valuable insight into how trading ideas are developed, refined, and ultimately selected.
The research team at tastytrade is directly responsible for much of the trade ideas presented on Live From Research, and often link the data and concepts from other tastytrade programming with current market activity.
As most tastytraders already know, oil and commodity prices have dipped sharply in recent weeks, and consequently a good portion of the trades presented on the first two episodes of Live From Research revolve around trading opportunities in these dynamic sectors.
Each week, Live From Research will present a wide variety of trade structures and industries to ensure a broad-based view of what they see as the best opportunities in the current market.
On the most recent episode, Tom and Tony heard trade ideas for USO, GDXJ, WYNN, FCX, MON, AAPL, and XOP, as shown below:
USO: debit call spread
FCX: unbalanced strangle
XOP: jade lizard
The XOP jade lizard was ultimately selected by Tom and Tony as one of the most optimal strategies given current market conditions and their existing portfolio.
As outlined on the tastytrade website, a jade lizard is an undefined risk strategy established by combining a short call spread with the sale of a naked put. The jade lizard makes maximum profit if the stock expires between the short put and the short call of the call spread. Additionally, as long as we collect a credit greater than the width of the call spread, a large upside move will never result in a loss.
The slide below illustrates the exact strikes and prices of the jade lizard recommended by Mike "Beef" Hart in XOP:
We encourage you to watch the entire episode of Live From Research to gain the best understanding of all the ideas discussed.
If you would like to learn more about jade lizards, you can access the entire content library on this concept by following this link.
If you have any comments or suggestions regarding Live From Research, we encourage you to leave that feedback below or contact us on email or social media.
You can find the latest episodes and access the entire Live From Research series by following this link.
Your feedback is integral to future programming on the tastytrade network and we look forward to hearing from you!