tastytrade Review. tastytrade / tastyworks Options Trading DANGER

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TastyTrade - why I'm not a fan of tastytrade.com David Jaffee with BestStockStrategy.com
I make around a million dollars a year by trading stock options you can go to
BestStockStrategy.com enter in your email address and receive over $400 worth of free
trading materials and those free training materials are worth more than
almost everybody else's paid materials so I know that I recently did a video
about why I believe that Kirk Du Plessis from option alpha doesn't really make
any money and why I think it's like borderline fraudulent and scam.
I mentioned that he trades ETFs, he trades iron flies I just don't think
that he makes money or if he does it's like a really small amount I think that
most of his students especially those who have account sizes of
under like $20,000 or $30,000 dollars I think that none of them are
profitable or an extremely small percentage. Tastytrade is a little bit
different. I've spoken to both Tom Sosnoff and Tony Battista
and I respect them tremendously. Tom Sosnoff is probably worth, I don't know $200 MILLION
million dollars which you know I respect that and I'm really happy and proud for
him because he's built up businesses and he's probably around like sixty
years of age and he built up businesses when he was like in his 40s so I have a
lot of respect for him. And Tony as well. You know when I emailed them they email
me back within like 24 hours they're fantastic. The only thing is, and I
definitely do not think that tastytrade in any way is a scam, so for the people
who are putting out information, besides myself (and obviously you guys are gonna
think that I'm like a little bit biased) but besides myself there is only one in
a half other good resources for you tastytrade is that one and the half is
option alpha where I think that the production value on his videos are
pretty good I think that his strategy is kind of like shitty I don't think you're
gonna make money because I don't think he makes any
money but tastytrade is really good they have they have incredible videos that
you can learn I I definitely think that if you follow tastytrade and you don't
follow me then your 100% certainty you're not maximizing your gains and
you're also increasing the probability of losses so I think that if you try to
save money and not subscribe to the alerts or take my education course I can
almost guarantee you that you're gonna end up costing yourself around ten or
twenty times as much money as those programs cost you but I definitely think
that you know if you watch my videos and you watch someone tastytrade then you
have a really good understanding of the overall strategy but remember you have
to make really good decisions and the read my problems would taste your hair
the following one you're taking way too much risk primarily because they
encourage people to trade small and trade off and trade often my problem
with that is it often leads to you having a lot of small positions on in a
numerous amount of underlyings but all the underlyings aren't the same so what
Tom and Tony doing what they encourage is that they tell you to look for
underlyings that have very high IV rank so when you scan for IV rank you're not
necessarily discerning between a Tesla which like two weeks ago was at 4:20 and
then like a week later who's down to like 260 and then it jumped back up to
320 and now it's back to around 260 again or like you know or another stock
like all they're telling you to do is not make any discernment between the
underlying that you trade whether it's snap or Twitter etc and all they care
about is hi implied volatility and maximize the amount of premium that you
receive but I'm telling you with absolute certainty that you should care
about the underlying that you're trading right there's a huge difference between
snap and Facebook right there's a reason why Snap is losing the the number of
people or the average you know an average user per month the amount of
time that they spend on it whereas Facebook with the instant Instagram
platform is gaining users and gaining market share if you're trading a Twitter
it's almost like trading I wouldn't necessarily
say it's like MySpace but those are those aren't the best examples but the
point is you should care about the underlyings that you're trading and I
can tell you on numerous occasions where I've listened to their podcast where Tom
has actually lost track of some of his underlyings I know that you can say well
yeah like he's producing a show he's producing hours of content he's running
a company okay that's great but for you you care about maximizing your gains in
making money if you have a ten thousand dollar account a new scam based upon Ivy
and you're trading something like a win resorts which is trading it like 180 I
bet you that when when was trading at 150 it had really high ivy so what would
you do you would then sell a 140-foot as tastytrade would tell you or 145 Twitter
actually tastytrade they tell you to trade straddle so you would sell a 150
put now win is out like 123 what are you gonna do like why would you even trade
something like that when it's not a leading sector it's not a market leader
in its space I mean they just make no discernment or they do not distinguish
between market leaders and the quality of the underlying and with your money
you should definitely care about only being involved in the most liquid the
largest and the best underlyings all right I know that they that they
definitely discern upon based upon liquidity I get that but they trade way
too many underlines and there have been numerous occasions where Tom has even
admitted on his show that he has lost track of his underlines and he just
simply wasn't paying attention to it and the reason is because he treats wait too
many securities it probably has positions on like 50 or 70 securities at
a time I don't care if his account size is 200 million a - 5 million I have
positions on five or six securities at one time he has positions on 70 the
other thing is they're very biased towards having a negative Delta so a
negative Delta means that if you're that you would be short calls at all time you
would automatically hedge your position against the market falling very
precipitously like it did in February of 2018 and I completely disagree with the
strategy because I definitely think that it you you are sacrificing
around 20% of your gains every single year
and look I get it all right there the market is definitely going to correct
and even if I make in extra twenty percent a year for ten years and then we
have a crash like happened in you know the Great Recession in 2008 if I end up
losing 30 percent of my entire portfolio yeah and that's not gonna happen but if
I do end up losing 30 percent of my portfolio during that crash then I would
be much better off making an incremental twenty percent a year for ten years then
I would have by breaking even with that by having that negative Delta and not
not losing that thirty percent of my total account size because effectively
when you earn like 20 percent a year extra you're effectively doubling your
account size every single three three and a half years so if at the end of ten
years I lose thirty percent on the total my total principal in my total look
total account size is so much larger because I do not have that negative
Delta bias which is acting as an anchor that is dragging and holding me back
from maximizing my returns so like I said I definitely think that they have
way too much risk because they're telling you that you have to trade a lot
more underlyings they're also they have short Delta the other thing is they
encourage you to trade straddles and strangles and I can't tell you how bad
of an idea this is right now one good thing about tastytrade is they don't
really encourage you to trade verticals which i think is great because verticals
take away your premium and Tom I think he says that about sixty to seventy
percent of his positions tend to be naked positions which I agree with I
definitely don't believe that vertical credit spreads are the way to go I think
that encourages people to increase their size it decreases the amount of premium
and it also takes away a lot of your flexibility because you can't roll and
manage that position but at the same time they do encourage you to trade
straddles and strangles and from my experience the probability that the call
side of those Strauss's triangles tested is about two or three times more
than the put side and also when you trade a straddle you are selling of at
the money call which you have a very high likelihood of that getting getting
tested and conveniently they own tasty work so they just say hey no problem
just roll up the untested side but who has time for that a lot of you guys are
working full time you're working on your side hustle you don't want to sell and
at the money straddle and then even if you close it out for 25% we're only
collecting 25% of the max of the total amount of premium you don't want to have
to make endless amount of adjustments and chase that security I mean tom has
numerous positions which are substantially underwater and I can
guarantee you that most of those are because he sold straddles right and most
of those are because he's trading securities that at that moment have high
implied volatility and he was looking for a volatility contraction and he just
decided to make a trade and collect premium and now he's paying the price
for it do I think that Tom makes money in the stock market 100% do I think that
Kirk du Plessis is from option alpha comm makes money in the stock market I'm not sure
about that but do I think that the tastytrade strategy is the best strategy
that people should have I definitely do not believe that and it's funny because
I often times get emails from people and they're like oh they'll talk about like
theta and Vega and high implied volatility like I don't know if they're
trying to impress me or I don't I just don't get it but the fact is that show
me your returns like I think that you're focusing on shit that is just completely
not important right like the fact is that you should care about the amount of
premium that you're receiving for doing a trade and for making good decisions so
the high ivy and the days to expiration and all of that other extraneous
information is factored into the price that you are receiving and the price
that you're collecting and the amount of premium that you're collecting at that
specific moment from making the trade right so you can look at high Ivy you
look at everything else you can factor everything else into the equation but
you don't even have to look at it because you simply have to make a
decision when you make that trade and ask yourself am I being compensated for
the risk I'm taking if I sell this put in Facebook with an expiration of six
weeks out do I feel comfortable receiving two and a half dollars worth
of premium for selling that 145 put for the amount of risk that I'm taking
that's the only question that you should ask yourself not oh well the implied
volatility in Facebook right now is seventy and the implied volatility and
micron and Intel is 76 so even though I think that I would be better off by
going with Facebook you know this has higher ivy so I'm gonna trade this
security that's not the way that you should trade it if you really want to
make money right you definitely straighten sell straddles and you
definitely especially in a bull market should not sell calls I don't care if
it's maximizing your if it's gonna maximize your capital efficiency because
those calls are gonna end up getting testing they're gonna have to make
adjustments and you might actually have to end up increasing the number of puts
that you have in order to increase the strike price of the call that you sold
in order to make sure that that call does not become even more in the money
so if you really want to make money you should follow tastytrade but if you want
to maximize your profits you should go to BestStockStrategy.com and enter in your email
and also become an alerts member and you can also subscribe to our education
course it's the best education course available it doesn't overwhelm you with
extraneous information it doesn't require you to log into your account and
scan underlyings four or five times a day it doesn't require you to do this
bullshit where you're selling like kirk Du Plessis from option alpha tells you I
am butterflies and selling straddles that are spreads and you have to log in
and make like tons of adjustments and the same thing with tastytrade they
encourage you to make a ton of adjustments because when you're selling
straddles you will have to make adjustments alright and that's
annoying that's gonna increase your commissions which is great for tasty
works but you don't want to log into your account multiple times and incur
that stress because when you have a losing position you think about it on
the weekends when you have a big losing position it stops you from being able to
get a good night's sleep you do not want to get into the habit of selling premium
only to have to make adjustments later on let me repeat that
you do not want to get in the habit of selling premium only to have an
expectation that you will have to make an adjustment at a later date it's not a
good strategy it's gonna increase your stress and do decrease your
profitability all right let me just make sure that I hit everything that I wrote
down so too much risk I definitely agree with that because they're encouraging
you to sell straddles and strangles and I do not like selling call so though
thankfully with tastyworks and tasty trade they don't encourage you to sell
on ETS that much they do encourage more so on specific underlyings which is
great which is one of the big knocks that I have on Kirk du Plessis from option alpha
where I did I think all right I'm not gonna say it's a scam I just think that
he doesn't make any money and that people following option alpha don't
make any money. He has short delta for for tasty trade which decreases the
returns by about 20% a year which I definitely don't agree with I think that
you're way better off just trading the long side is when you're in a bull
market and then if you want to switch to the short side that's totally cool. Hey I
need over a hundred thousand dollars in February of 2018 by
selling calls on Amazon in February March I made a lot of money because I
sold calls on Amazon why because the market shifted and the market was bare
I'm not trying to predict future price movements if the market is bare I'm
gonna sell calls no problem but I don't want to consistently sell calls and how
that act is a drag against my returns too many underlines I've mentioned on
numerous occasions that Tom himself has lost track of the underlyings and that's
led to some problems and when you have a small account you can't afford to take
those losses another thing we tastyworks is there
are exchange fees that they pass through to people are like six
higher than I pay with a trade so I don't know what's going on like they
tell you hey it's only like ten dollars of leg maximum but then I think they
also charge you like 20 cents per contract in exchange fees I mean to me
that's just crazy like I spent 10 cents per contract with each tree and my
exchange fees I think are like one cent per contract so even if even if I sold a
hundred contracts with tastyworks it would actually cost me a lot more even
though it capped it at ten dollars I would pay an incremental twenty
dollars in exchange fees whereas with whereas with each trade I would actually
pay a lot less how to end up paying around so I so let's say if I sold
twenty twenty-five hold one hundred contracts but AC works there will be ten
dollars plus like twenty dollars an exchange piece that's like thirty
dollars and with each trade I spend around 8.50 cents on a base and then one
and then ten cents in particular meant to contract with one cent per exchange
fee so right there you're looking at eighteen dollars and fifty cents plus an
incremental $1 for you know for the exchange fees so it's a difference of
like thirty dollars for tastyworks in nineteen dollars and fifty cents for
each trade so even though they tell you that there are a really low cost broker
they nail you with the exchange fees and they're just way more expensive than
what I pay with each rate the other thing is they trade they encourage me to
make way too many adjustments their Commission's like I said when you factor
in the exchange fees are way too much and also as I said Thomas lost track of
positions which I believe is a little bit negligent but I do want to tell you
that I highly recommend that you follow tastytrade and tastyworks a lot of my
students use tastyworks and I'm not really a fan of it because I think that
the visual ui/ux and the visual interface is like very annoying it's
extremely slow for me to enter in trades but I a lot of my students they use
tastytrade and tastyworks and I have hundred times think that it's better
than RobinHood right like it's not a good comparison alright I definitely
think that tastyworks is infinitely better than RobinHood so I highly
recommend tastyworks as a platform if you have anywhere
from like five or ten thousand dollars and I can link you to the blog post that
I made about how to choose the best the best online brokerage but um you know
those are the problems that I have with tastytrade and Casey works and I
definitely think that you're costing yourself money by just watching these
videos and watching tastytrade videos or watch or listening to tastytrade and not
being an alerts member and an alert subscriber or purchasing the education
course and hey look I don't want to spend five hundred ninety nine dollars
for education either I'd rather get everything for free I don't want to
follow someone and pay them $349 I can do it myself
hey if you want to think like that if you think that you're a better trader
than me and you make better decisions then God blessed you and more power to
you but I can guarantee you that you are not the better trader and you are in
your substantially hampering and hindering your returns by not being an
alerts subscriber because you are trying to be penny wise and pound foolish
you're sacrificing and not maximizing your returns and you're also increasing
your risk because you're trading in ways that are not the best strategy in order
to maximize your profits David Jaffee from BestStockStrategy.com you can go to
BestStockStrategy.com enter in your email and receive over $400 worth of free trading
materials. Please like share comment and subscribe to this video like I said I'm
a big fan of Tom Sosnoff and Tony Battista I definitely believe that tastytrade is comparable to
myself and that is your only legitimate education platform out there I don't
think that option alpha is legitimate I definitely think that like Sky View
trading is a complete scam and complete fraud and everyone else I mean but
they're just not even like in the question but yeah if you want to like
watch tastytrade videos then do it option alpha they do have some high
production value and I don't think that that sky view trading actually makes
trades you know I look like I just don't think that they trade at all I think
they have great marketing but I don't think that they trade but yeah you know
there is a ton of and a wealth of information out there but my main point
is that I don't believe that the tastytrade methodology and
tastytrade strategy is in your best interest if you want to
maximize your profits and minimize your mistakes and I definitely think
especially for what my students tell me and the reason why they pay me every
single month is if you want to maximize your returns and minimize your mistakes
and you should sign up and become a member of BestStockStrategy.com
thank you for watching and if you have any questions let me know

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tastytrade Review. tastytrade / tastyworks Options Trading DANGER

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