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Tackle Today: Delta or Theta?

December 18, 2020

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Which strategies do you use most often?


When choosing which product and strategy to trade, how do you determine if you are going to use options, stock, futures or forex? 

Delta trading allows you to trade directional setups based on technical analysis, trends, and price action.  You can use Stock, Options, Futures or Forex to play Delta trades.

Theta trading, on the other hand, allows you to build trades that benefit (positive theta) from time passing. Positive theta trading strategies include Covered Calls, Naked Puts, Credit Spreads (Bull Put or Bear Call) as well as Iron Condors. 

There are more theta strategies though, and you can review all of the theta strategies (as well as delta and/or vega strategies) in our playbook: https://tackletrading.com/store/tackle-trading-playbook/

Learning to trade different trading strategies so that you can take advantage of different market conditions is a valuable skill to have. In your own education, have you spent more time studying Delta, Theta or Vega strategies?  Whatever your focus has been, consider spending some time learning another style so that you have a well-rounded approach to the markets.


Chart of the Day

AAPL Daily Chart

Apple Inc. (Ticker: AAPL) is up +2.8% in early trade on Tuesday. There are reports the company will increase iPhone production by 30% on a year-on-year basis in the first half of 2021. 

Video of the Day

What is Theta?

Time passing will impact an Options contracts price.  Theta measures the impact of time passing on your options.  Watch this video tutorial from Coach Noah to better understand the concept of Theta.

Today’s line up

Traders Lounge 11 AM EST

Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.

The Coaches Show 8:30 PM EST

This is our weekly MasterMind group. Join the coaches tonight, 8:30pm EST to discuss the markets and help you prepare for the week.

Halftime Report 12:30 PM EST

The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day and fun in a way that only Matt and Tim can deliver.

Tackle Trading: Financial Freedom is a Journey. Sign up now for a 15-day free trial.

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