Jim Schultz Found the One Mistake Costing Options Traders Money on Every Spread

Most options traders build vertical spreads without looking at volatility skew first. That is leaving money on the table every single trade. Jim Schultz shows it live on SPY, AMD, and Tesla. On SPY a put spread has you selling low IV and buying high IV which works against your credit. The same spread on the call side has you selling high IV and buying low IV which puts almost a full dollar more in your pocket for the same distance out of the money. AMD shows the same pattern. Tesla shows flat skew where puts and calls pay roughly the same. Three different scenarios all showing you exactly where the market is pricing the risk before you enter a single trade. 📊 tastylive: https://www.tastylive.com/ 📰 Get Tom Preston's pre-market analysis every morning: https://www.tastylive.com/newsletters 📘 FREE Options Strategy Guide: https://tinyurl.com/bp9ms763 📱 Follow tastylive on X: https://x.com/tastyliveshow Chapters 0:00 What volatility skew actually is 1:00 Why OTM puts on indexes have higher IV 1:36 Individual stocks with call skew: AMD and SpaceX 2:31 Skew as a map of where the market prices risk 3:10 Live on SPY: put spread vs call spread comparison 4:22 Selling low buying high: why put spreads pay less on SPY 5:13 Call spread on SPY: selling high buying low 5:35 Why the call spread pays almost a dollar more 6:03 AMD: same put skew pattern 6:40 Tesla: flat skew and what that means 8:22 Three types of skew and how to spot each one #VolatilitySkew #OptionsTrading #JimSchultz #tastylive #CalculatedRisk #VerticalSpread #CallSkew #OptionsEducation 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.