Cost Basis Reduction Explained | Options Trading Concepts

Cost basis is the value or purchase price of an asset or investment for tax purposes. It is used to determine the capital gain, which is equal to the difference between the asset's cost basis and the current market value. Short options trades can be used to reduce cost basis on assets, and improve the probability of success in the trade. Learn more from Mike and tastytrade about cost basis reduction.

0:00 Introduction
0:48 Cost Basis Reduction: Key points
2:45 Cost Basis: Buying shares outright
10:36 Cost Basis with Implied Volatility
14:43 Takeaways: Notional Value
17:11 Questions/Contact info

Click the link below to learn more about cost basis reduction:
https://www.youtube.com/watch?v=bTnBo_AM_0s

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