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How Many Days to Expiration When You Buy a Spread

NowPress play to follow along0:00 / 8:24
Chapters4 segments · tap to seek
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Breakdown

0:00lesson

DTE for buying vs selling spreads

  • Buying spread vs selling spread directional trade
  • DTE affects spread price response
  • Shorter DTE = faster price response
  • Longer DTE = less sensitive to stock price changes
  • Choose DTE based on confidence in directional bias
2:15lesson

Earnings premium and straddle performance

  • Micron beat implied in 9/16 reports
  • Straddle paid in 7/15 cases
  • Earnings premium not mispriced in liquid stocks
  • Volatility not mispriced in active stocks
  • Straddles/strangles risky around earnings
4:00lesson

Straddle vs stock movement

  • Straddle requires stock to beat implied
  • Market says stock will move X, trader says it will move more
  • Straddle is betting stock will move beyond implied
  • Straddle is losing if stock doesn't move beyond implied
  • Straddle is not a reliable strategy
6:17lesson

Strangle cost and strategy

  • Strangles expensive at $1,000 stock levels
  • Retail accounts find strangles costly
  • Avoid selling naked puts in high-priced stocks
  • Buy defined risk strategies like butterflies
  • Don't assume you know more than the market

Informational only — this is tastylive’s content, decoded by Plutus. Not Paid Daily’s advice or a recommendation. The outline, timestamps, and claims are extracted from what the creator said; verify before acting.