This 8-Minute Video Will Explain Why Your Call Spread Pays More Than Your Put Spread. Every Time.

Options trading gets sharper the moment you understand volatility skew. Every strike on the chain carries its own implied volatility, and that difference is not random -- it tells you exactly what is cheap and what is expensive before you ever place a trade. This episode of Calculated Risk walks through put skew on the Dow Jones and call skew on AMD, and shows a live side-by-side comparison of a put spread versus a call spread at similar probabilities. The call spread pays significantly more. That is skew working in your favor, and it changes how you build every strategy going forward. Helpful links: tastylive: https://www.tastylive.com/ FREE tasytlive Newsletters: https://info.tastylive.com/newsletters FREE Options Strategy Guide: https://tinyurl.com/bp9ms763 Follow tastylive on X (Twitter): https://x.com/tastyliveshow CHAPTERS: 00:00 What is volatility skew and why every strike is different 01:07 Why out of the money puts carry higher IV than calls 01:39 The persistent demand for crash protection drives put skew 02:15 Live example on DIA - comparing the 470 put vs the 510 call 03:40 Put spread vs call spread at similar probabilities - the comparison 05:22 Why the call spread collects more than the put spread 06:27 AMD and upside call skew - when individual stocks flip the script 07:52 How to use skew to always sell expensive and buy cheap #calculatedrisk #optionstrading #volatilityskew #impliedvolatility #creditspread #bearCallSpread #optionsforbeginners #verticalspread #optionsstrategy #tastylive 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.