# @tastyliveshow on YouTube

- **Type:** Video
- **Original URL:** https://youtube.com/watch?v=eK5Zh_VPVHU
- **Gondola URL:** https://gondola.cc/posts/67235064-tastyliveshow-youtube
- **Thumbnail:** https://img.gondola.cc/tr:w-,h-,fo-auto/postThumbnails/1846655e52.jpg
- **Posted:** 2026-06-27T01:00:14.000+00:00
- **Account Owner:** tastylive (@tastyliveshow) — https://gondola.cc/tastyliveshow

## Caption

Most traders assume buying the dip is a contrarian edge. Julia Spina with tastylive research tested it systematically and the results are surprising. Trading small down days of less than one percent actually underperforms just trading on any given day. The edge only shows up when the market is down one to two percent or more. And the sweet spot that balances frequency and richness is that one to two percent range.

The reason matters as much as the result. The outperformance on bigger down days does not come from the directional assumption being more correct. The probability of a bounce 45 days after a two percent drop is no better than any other 45-day period. The edge comes entirely from higher premiums and elevated volatility. The dip buys itself. The volatility pays for the trade.

📊 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 Testing the contrarian dip buying assumption with data
0:45 Small down days of less than one percent underperform
1:34 One to two percent down days: where the edge lives
2:01 Pops stay the same across all dip thresholds
2:20 CVaR stays constant even as premiums get richer
3:08 The directional assumption is not what drives the edge
4:31 It is the volatility and premium increase not the bounce
5:45 The sweet spot: one to two percent down days explained

#DipBuying #OptionsResearch #OptionsTrading #JuliaSpina #tastylive #ShortPremium #PutSpread #OptionsData

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-elected.

## Stats

- **Views:** 2,060
- **Likes:** 65
- **Shares:** 0
- **Comments:** 9

## Tags

tastylive, optionstrading, shortpremium, optionsresearch, putspread, juliaspina, dipbuying, optionsdata

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