Don't Start 2026 Without This Year-End Review

End-of-Year Trading Review – Options Jive Segment

Key Concepts:

• Year-to-Date (YTD) Data Review: Analyzing trading performance over the past 12 months to identify strengths, weaknesses, and areas for improvement.
• Mental Attitude: The importance of a positive and detached mindset in trading, accepting losses as part of the process.
• Win Rate vs. Profitability: Understanding that a high win rate doesn’t guarantee profitability; average win size must outweigh average loss size.
• Strategy-Specific Performance: Evaluating the performance of different trading strategies (credit spreads, naked puts, etc.) to determine which are most effective.
• Process Goals vs. Outcome Goals: Focusing on controllable aspects of trading (e.g., IV rank) rather than uncontrollable outcomes (e.g., specific profit targets).
• Position Sizing: Adjusting trade size based on account balance and performance.
• Tax Implications: Awareness of how trading activity impacts tax reporting.

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I. Introduction & Mindset (0:00 – 2:30)

The segment focuses on the importance of reviewing trading performance at the end of the year to improve results in the following year. The hosts emphasize that January 1st is a psychological reset, but the real value lies in analyzing past data. While broker platforms reset YTD displays, open positions and account balances remain unchanged. A crucial point is the need for a strong mental attitude; traders must avoid dwelling on past losses and maintain a detached perspective. As stated, “In order to be a happy trader, you have to have a good mental attitude or you’re going to be miserable.” The hosts illustrate this with their own experiences, acknowledging the necessity of laughing at each other’s losses and celebrating wins. They highlight a key principle: “It’s not the amount of times you fall down, it’s the amount of times you get back up.”

II. Data Access & Analysis – Tastytrade Platform (2:30 – 5:30)

The discussion shifts to accessing and analyzing trading data within the Tastytrade platform. The hosts point out that most traders neglect to review their data. Accessing monthly position and P&L statements via “My Account” is recommended. The “History” feature allows for symbol-by-symbol performance analysis, including year-to-date summaries. One host prefers reviewing YTD history to identify best and worst performing symbols. For more advanced analysis, exporting data to a CSV file (Comma Separated Values) is possible, though acknowledged as time-consuming. The action item is to screenshot the YTD summary page before midnight on December 31st.

III. Key Metrics for Evaluation (5:30 – 9:30)

Beyond total P&L, the segment stresses the importance of deeper metrics. Win rate is discussed, but cautioned against relying on it solely. A 70% win rate is meaningless if average losses are significantly larger than average wins. Calculating average win size versus average loss size is crucial. The hosts acknowledge difficulty in readily finding win rate data within Tastytrade. The discussion highlights the importance of identifying which strategies performed well – credit spreads, naked puts, iron condors – and focusing on those. The principle of trading what works for you, not what works for others, is emphasized.

IV. Position Management & Tax Considerations (9:30 – 12:30)

The segment addresses how positions are treated across year-ends. Gains and losses are reported when positions are closed, not when they are opened. A trade opened in December 2025 and closed in January 2026 is a 2026 tax event. Open positions represent unrealized gains or losses and are not included on the 2025 tax form. Loss harvesting – closing losing positions before December 31st to offset gains – is mentioned, with the caveat that immediate repurchase is not permitted. A disclaimer is given: “Tax rules are complex…This is general information not advice. Your situation is unique. Talk to a qualified tax professional.” The hosts share their approaches to tax preparation, with both relying on professional accountants due to account complexity.

V. Goal Setting & Strategy Refinement for 2026 (12:30 – 16:30)

The discussion turns to setting goals for the upcoming year. Setting return targets based solely on past data is discouraged, as it can negatively impact mental state. The hosts debate the value of specific profit targets, with one preferring to focus on a broader, more ambitious goal. The importance of identifying and replicating successful strategies is highlighted. The hosts share examples of their own successes and failures, with one noting Intel as their biggest winner and the other acknowledging a loss on Hood. The concept of process goals versus outcome goals is introduced. A good process goal is trading options with an IV Rank above 50, while a bad outcome goal is making a specific dollar amount.

VI. Position Sizing, Journaling & Conclusion (16:30 – 19:30)

The segment concludes with advice on position sizing – increasing size with account growth and decreasing size with account shrinkage. The importance of journaling trades is mentioned, though one host expresses disinterest. The key takeaway is that 2024’s results cannot be changed, but lessons learned can inform future trading decisions. The hosts emphasize that successful traders view each year as a continuous learning process, with improvement stemming from consistently refining their trading process. The final statement encapsulates this: “Your edge comes from consistently improving your process.” The segment promotes the Tastytrade network for real-time market analysis and encourages viewers to “Trade with probability.”

Technical Terms:

• IV Rank (Implied Volatility Rank): A measure of an option's implied volatility relative to its historical range.
• Credit Spread: An options strategy involving the simultaneous purchase and sale of options with different strike prices.
• Iron Condor: An options strategy involving the simultaneous sale of an out-of-the-money call spread and an out-of-the-money put spread.
• Naked Put: Selling a put option without owning the underlying asset.
• CSV (Comma Separated Values): A plain text file format used to store tabular data.
• SPX: S&P 500 Index.
• DTE (Days to Expiration): The number of calendar days remaining until an option contract expires.
• P&L (Profit and Loss): A financial statement that summarizes revenues, costs, and expenses over a period of time.
• YTD (Year-to-Date): The period starting from the beginning of the current calendar year to the present date.