Options Playbook Radio

It's earnings season again. As such, we're looking at an inverse skip-strike butterfly to capture some earnings move. You can find skip-strike butterflies with calls on page 108, and inverse skip-strike butterflies with calls on page 112 of The Options Playbook, on OptionsPlaybook.com, or on the Amazon Kindle edition.

In this episode, Brian covers:

  • A review of last week's AMZN butterfly
  • Lesson to learn: Time makes the trade cheaper
  • Determining strike prices
  • Making sure you do not get blown out
  • Looking at the implied volatility
  • How to use time premium
  • What is the net credit?
  • What is the maximum risk?
Direct download: Options_Playbook_156_final.mp3
Category:financial podcast -- posted at: 9:21am CDT