This Video Will Change How You Pick Strikes Forever

Options trading education: extrinsic value is your widget as a premium seller. Dr. Jim Schultz builds extrinsic value awareness by walking through the exact tradeoff at every delta. A 5-delta put has a 95% probability of profit but pays almost nothing for unlimited risk. A 44-delta put collects a fat credit but drops the probability to 63%. Between them is the sweet spot. Jim likes the 25 to 35 delta range because it balances probability and credit, gives meaningful compensation for the undefined risk, and leaves room for management if the trade moves against you. Plus why the probability of profit on a short option is always above 50% no matter the strike, because extrinsic value acts as a shield. 📊 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 Extrinsic value is your widget as a premium seller 00:50 You are never picking a strike in isolation 01:49 Close to the money: juicy credits but lower probability 02:42 Is there a right answer? 02:59 Tesla chain: delta as an approximate pop 03:48 Selling a 44-delta put: 63% pop, way more credit 04:21 Short option POP is always north of 50% 05:46 The same principle on the call side 06:14 Selling right on top of the stock and still 67% pop 07:04 So what strikes should you actually select? 08:02 An at the money put: much more credit, 63% pop 09:04 A 23-delta Tesla put: 75% pop, $8.70 credit 09:53 Just understand what you are signing up for #tastylive #extrinsicvalue #strikeselection #delta #probabilityofprofit #premiumselling #jimschultz #calculatedrisk #optionseducation #tastytrade 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.