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Strategy Guide

Iron Condor

An iron condor is very similar to a strangle in the sense that it is delta neutral, but an Iron Condor is a defined risk trade. An iron condor is constructed by selling an out of the money (OTM) call and an OTM...

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A strangle can be bought or sold, but here at tastytrade, we always sell strangles. A strangle is a high probability naked option trade that combines selling an OTM put with an OTM call. This eliminates a di...

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A straddle is a neutral strategy formed by selling a put and an call at the same strike price, typically at the money (ATM). Because the strike prices of the short put and short call are the same in a straddle...

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Jade Lizards and Big Lizards

A Jade lizard is a neutral to bullish strategy that is typically traded when the IVR of the underlying high. A Jade Lizard is a short strangle combined with a long OTM call. This strategy is similar to a strang...

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Butterfly Spread

Check out our butterfly spread posts on the blog! Here is a snippet of what the blog post contains: A butterfly spread is simply the combination of a long and short spread of the same option type. In a lo...

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Vertical Spread

A vertical spread is a basic defined risk strategy that’s made up of a short option at one strike and a long option at a different strike in the same expiration cycle. Vertical spreads can be placed by using tw...

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