Market Measures

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Delta Diversification

Market Measures

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

Short Naked Puts work in a bull market - how should we choose the combinations of delta in a short Naked Puts portfolio?

The tastytrade Research Team conducted a test to compare these two portfolios:

  • 2 contracts of 30 delta puts
  • Combination of 1 contract of a 10 delta put and 1 contract of a 50 delta put (average 30 delta)

The results of both hold-to-expiration and managing winners are presented in the study. Watch this segment with Tom and Tony for the takeaways.