You're Selling Premium When You Should Be Buying It. Jim Schultz Explains When to Flip

Jim Schultz is a premium seller. But there are three specific scenarios where he flips to the long side and buys premium instead. Most traders never learn when those moments are. Scenario one: VIX at 11 to 14. You are not getting paid to sell. Options are cheap and volatility tends to mean revert back toward its long-run average. Scenario two: earnings. Binary events with massive moves can justify buying verticals, butterflies, or diagonals rather than selling into them. Scenario three: strategic diversification. When your whole book is short premium, adding a few long positions smooths out your directional exposure. Just do not expect them to carry the portfolio. That is still the job of short premium. 📊 tastylive: https://www.tastylive.com/ 📰 Get Tom'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 Why we sell premium and what we are giving up 1:37 Scenario one: VIX at 13 means stop selling 2:42 Scenario two: earnings and when to go long 3:49 Vertical spreads butterflies and diagonals around earnings 4:05 Scenario three: strategic diversification 5:23 What you give up when you buy premium 5:54 Long premium will not move the needle. Here is what will #BuyingPremium #SellingPremium #OptionsTrading #JimSchultz #tastylive #CalculatedRisk #VIX #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.