Options Playbook Radio

In this episode, we are discussing how to adjust positions. You can find this information on page 104 of The Options Playbook.

Brian goes into more detail with:

  • How to adjust a put butterfly?
  • How was the butterfly set up on Monday?
  • What was the direction?
  • What was the concept of this strategy?
  • What has happened since the trade was put on?
  • How, and when, to make adjustments
  • What do we want to happen?
  • Do you want to see a video of what was just discussed? Send Brian an email through Facebook, or go here.
Direct download: OptionsPlaybookRadio92.mp3
Category:financial podcast -- posted at: 2:27pm CST

We have been talking about double diagonals for the last few weeks, which we are continuing in light of the Fed meeting yesterday. You can find this information on page 87 of the Options Playbook, or on OptionsPlaybook.com.

Today, Brian discusses:

  • The double diagonal strategy around GE
  • It’s been almost 11 years since the Fed raised rates
  • Where was GE trading?
  • Setting up the double diagonal in GE
  • Don’t forget commissions!
  • What is the maximum reward? Risk?
  • Don’t manage risk, and you’ll get the stupid award
  • What do we want to happen?
  • What is the market saying?
  • So, what did happen?
  • And more
Direct download: OptionsPlaybookRadio91.mp3
Category:financial podcast -- posted at: 2:45pm CST

You can find double diagonals on page 128 of The Options Playbook, or you can follow along online on OptionsPlaybook.com.

Today, Brian discusses:

  • A review of double diagonals
  • Setting up a double diagonal on the S&P 500 index
  • Yes, you can do this with options expiring tomorrow
  • What will this cost?
  • What do you want to happen?
  • What is the risk? Reward?
  • And more
Direct download: OptionsPlaybookRadio90.mp3
Category:financial podcast -- posted at: 12:44pm CST

You can find information about double diagonals on page 128 of the Options Playbook, or you can always find it on OptionsPlaybook.com.

In this episode, Brian discusses:

  • Will the Fed increase rates the next time they meet?
  • How can using double diagonals take advantage of the probability of the Fed increasing rates?
  • Structuring the double diagonal to wrap around the news from a timing point of view
  • What about volatility?
  • Setting up the trade
  • What do we want to happen?
  • What is the biggest thing to worry about?
Direct download: OptionsPlaybookRadio89.mp3
Category:financial podcast -- posted at: 3:22pm CST

We are moving on to double diagonals, which can be found on page 128 of the Options Playbook. You can always find this on OptionsPlaybook.com.

In this episode, Brian covers:

  • Double diagonals overview
  • Why are they called diagonals?
  • Setting up the trade
  • Risks and benefits
  • And more
Direct download: OptionsPlaybookRadio88.mp3
Category:financial podcast -- posted at: 12:45pm CST

Options Playbook Radio 87: Listener Questions on the Short Squeeze & Brokers

It's time to huddle up as Mark and Brian take on listener questions. Topics include:

  • Does "hard to borrow" apply to options the way it does to stocks?
  • Who is the best online broker for stocks, options, and futures?
Direct download: OptionsPlaybookRadio87.mp3
Category:financial podcast -- posted at: 3:03pm CST

Wait a minute, is that Mark Longo? Yes it is, and he joins Brian on this episode of Options Playbook Radio, in which they take on listener questions, which include:

  • Inflated implied volatility skewing positions
  • How to find stocks that have inflated options premium
Direct download: OptionsPlaybookRadio86.mp3
Category:financial podcast -- posted at: 3:18pm CST

As we are in the thick of earnings season, let's take a look at two different trades that one could employ to capitalize on movement around earnings.

This week, Brian discusses:

  • A review of skip-strike butterflies, bullish and bearish
  • Looking at FB earnings
  • What is the market expecting?
  • How to set up the trade if you think there will be a lot of volatility? Only a little volatility?
  • What is the downside? Upside?
  • How about a ratio spread?
  • And more
Direct download: OptionsPlaybookRadio85.mp3
Category:financial podcast -- posted at: 1:03pm CST

Huddle up, traders. Today's discussion addresses listener questions. They include:

  • Nelson from NC: Exploring covered calls on dividend playing stocks.
    • Remember rho
    • You might not receive as much premium. Why?
  • Dr. Ram: How to trade multi-leg option strategies in an IRA account
    • You can't use anything that provides leverage
    • You also have to avoid unlimited risk
    • Remember that you have to be approved within the IRA account
    • Depending on many factors, you will be assigned a level of options trading
    • Brokers can decide what strategies are available to you
Direct download: OptionsPlaybookRadio84.mp3
Category:financial podcast -- posted at: 12:29pm CST

In this episode, we are discussing skip-strike butterflies with calls that we did last earnings season. This was in episode 77. For those of you with the hardcover version of the book, please turn to page 108. If you are following along online, this is always at OptionsPlaybook.com.

Today Brian discusses:

  • Setting up a skip-strike butterfly on AMZN around earnings.
  • Where is the market right now?
  • What do we want to happen in AMZN?
  • What is the maximum reward? Risk?
  • How to use the proceeds of one leg to buy the other.
  • The good news and the bad news.
Direct download: OptionsPlaybookRadio83.mp3
Category:financial podcast -- posted at: 11:28am CST

In this episode, we are discussing. If you have a copy of The Options Playbook, this information is available on page 68. You can always follow along online at OptionsPlaybook.com.

Today, Brian discusses:

  • The caveats of long straddles
  • Why do long straddles work in this market climate?
  • Looking at long straddles for GE, which announces earnings on Friday, October 16, before the open.
  • What is the marketplace implying GE could do AFTER earnings?
  • Setting up the trade
  • What do you want to happen?
Direct download: OptionsPlaybookRadio82.mp3
Category:financial podcast -- posted at: 7:28pm CST

Dan Sheridan is back with Brian, and today they are discussing how to set up an iron butterfly on the RUT. You can find this on page 106 of the Options Playbook, or on OptionsPlaybook.com.

They discuss:

  • Looking at a two-week iron butterfly in RUT
  • Where has RUT been for the last six months?
  • Setting things up, and why might width be different?
  • What is the risk?
  • Why do this in a volatile market?
  • How and why is this repeatable?
  • What is the plan?
  • And more
Direct download: OptionsPlaybook81.mp3
Category:financial podcast -- posted at: 6:06pm CST

In this episode, Brian is joined by Dan Sheridan from Sheridan Options Mentoring. They continue the discussion of Iron Butterflies, which began last week. If you have a hardcover version of the book, this is on page 106.

They discuss:

  • What is the difference between an iron condor versus an iron butterfly?
  • Why are iron butterflies popular?
  • Receiving a credit versus paying a debit.
  • What about risk?
  • Advantages of iron butterflies
  • Are iron butterflies better than other strategies?
  • What underlyings do people like to do iron butterflies on?
  • What about taxes and commissions?
Direct download: OptionsPlaybookRadio80.mp3
Category:financial podcast -- posted at: 7:05pm CST

Direct download: Options_Playbook_79_final.mp3
Category:financial podcast -- posted at: 1:16pm CST

Lately, we have been discussing inverse skip-strike butterflies. Today, we are discussing times when it is a good idea to use inverse skip strike butterflies.

 

Today, Brian discusses:

  • What will the Fed do? (They kept rates steady)
  • Setting up an inverse skip strike butterfly on the bearish side of the S&P 500
  • What will it cost?
  • What do you want to happen?
  • What is the risk?
  • Don’t forget about margin
  • What is the best-case scenario?
  • What is the maximum reward?
  • And more
Direct download: OptionsPlaybookRadio78.mp3
Category:financial podcast -- posted at: 6:53pm CST

Today we are continuing the discussion of Inverse Skip-Strike Butterflies, which began last week. If you are following along at home with the hardcover version of the book, you can find the information you need on page 112 (calls) and page 115 (puts).

 

Today, Brian discusses:

  • A real-world example using NFLX
  • You can find the discussion on NFLX here
  • Where is the 30-day IV in NFLX?
  • Why is the 30-day IV where it is?
  • What about the market as a whole?
  • Setting up the position
  • What do we need to happen in NFLX?
  • What is the risk? Reward?
  • Considerations and caveats
  • And more
Direct download: OptionsPlaybookRadio77.mp3
Category:financial podcast -- posted at: 3:58pm CST

In this episode, we are discussing an inverse skip-strike butterfly, which you can find on pages 112 (calls) and 115 (puts) of The Options Playbook. You can also find all of this information on OptionsPlaybook.com.

 

Today Brian discusses:

  • The set-up of an inverse skip-strike butterfly
  • What do we want to happen?
  • How much will it cost?
  • What is the maximum risk?
  • What is the maximum gain?
  • When does this make sense?
Direct download: OptionsPlaybookRadio76.mp3
Category:financial podcast -- posted at: 6:33pm CST

You can review volatility on page 14 of the Options Playbook. You can also find it online at OptionsPlaybook.com in the “basics” section.

Today, Brian discusses:

 

  • A review of looking at stocks near earnings, which creates volatility
  • What happens when the entire market is volatile?
  • How do you adjust your trading as a result of volatile markets?
  • Buying options
  • Spreading options
  • Butterflies
Direct download: OptionsPlaybookRadio75.mp3
Category:financial podcast -- posted at: 3:55pm CST

In this episode, Brian takes on listener questions about:

 

  • Profit and loss calculators
  • Remember: slippage, commissions, and other variables
  • Calendar spreads
  • And more
Direct download: OptionsPlaybookRadio74.mp3
Category:financial podcast -- posted at: 5:00pm CST

In this episode, we are going to look at how to insure a long USO position using backspreads with puts. If you have the hardcover version of the book, you can follow along on page 87. If you want to follow along online, you can do so at OptionsPlaybook.com.

 

In this episode, Brian discusses:

  • How the price of oil is reflected in USO
  • Where are things priced now?
  • How to ensure a USO stock position
  • How to tie backspreads to a stock position
  • This is AKA a pay-later put
  • How to set it up
  • What are we hoping will happen?
  • Potential gains and losses
  • Caveats and considerations
Direct download: OptionsPlaybookRadio73.mp3
Category:financial podcast -- posted at: 1:19pm CST

In this episode Brian is discussing the fig leaf strategy for the oil sector. For those of you with the hardcover version of the book, this can be found on page 56. If you are following along online, it is always at OptionsPlaybook.com.

 

Today Brian discusses:

  • A review of the fig leaf strategy
  • Setting up an USO fig leaf
  • Using options to create a larger position instead of “double up to catch up”
  • Constructing the fig leaf
  • What will it cost?
  • What is the risk?
Direct download: OptionsPlaybookRadio72.mp3
Category:financial podcast -- posted at: 3:28pm CST

Today, we are still discussing Christmas Tree Butterflies. For those of you with the hardcover version of the Options Playbook, you can find this on page 118. If you are following along online, it is all at OptionsPlaybook.com.

Today, Brian discusses:

  • Why are we talking about Christmas Tree Butterflies around earnings?
  • Using a real-world example with FB
  • The normal Christmas Tree Butterfly pattern
  • Customizing the Christmas Tree Butterfly to minimize risk
  • Maximum risk, maximum reward
  • What is the forecast on the underlying?
Direct download: OptionsPlaybookRadio71.mp3
Category:financial podcast -- posted at: 12:38pm CST

In this episode, we are continuing our coverage of Christmas Tree Butterflies. For those of you with the hardcover version of the book, this is on pages 118 (calls) and 120 (puts). If you are following along online, you can find everything you need on OptionsPlaybook.com.

 

Today Brian discusses:

  • Back to earnings season equals good scenarios for butterflies
  • Why?
  • Creating a paper trade with Amazon, using puts
  • Setting up the trade
  • What strikes we are using
  • What will this cost?
  • Where do you want the stock to go?
  • Having realistic expectations
  • What is the upside?
  • And more
Direct download: OptionsPlaybookRadio70.mp3
Category:financial podcast -- posted at: 2:33pm CST

In this episode, we are looking at the Christmas Tree Butterfly. If you are following along with the hard cover version of the book, it is on page 118 (calls) and page 120 (puts). If you are online, this information is always available on OptionsPlaybook.com.

 

Today Brian discusses:

  • What is a Christmas Tree Butterfly?
  • Setting it up
  • How does a Christmas Tree Butterfly differ from a standard butterfly?
  • Where is the sweet spot?
  • Why do a Christmas Tree Butterfly instead of a standard butterfly?
  • And more...
Direct download: OptionsPlaybookRadio69.mp3
Category:financial podcast -- posted at: 3:22pm CST

In this episode, we are reviewing some of the paper trades discussed in the past few Iron Condor episodes. If you are following along with the hardcover book, we are on page 126. You can always find this on OptionsPlaybook.com.

 

Today, Brian discusses:

  • What was going on when we put on a short SPX paper trade last week?
  • A review of the set up and the cost
  • What do things look like now?
  • Are we up? Down? What about time decay? What about the VIX?
  • Should we roll?
  • Going back two weeks, reviewing the AAPL condor.
  • Moving forward with an AAPL roll
  • Adjust when you can, do not wait
  • What will it cost to roll? How to set it up?
Direct download: OptionsPlaybookRadio68.mp3
Category:financial podcast -- posted at: 6:36pm CST

In this episode, we are continuing our coverage of Iron Condors. If you have the hardcover version of the book, this is available on page 126. If you are following along online, you can always find this on OptionsPlaybook.com.

 

Today Brian discusses:

  • A review from the previous episodes, including what happened in AAPL since last time
  • What do to now that AAPL has moved close to the bottom strike?
  • Setting up a short-term iron condor using an index
  • Beware of the holiday and volatility
  • Setting it all up
  • Things to consider
Direct download: OptionsPlaybookRadio67.mp3
Category:financial podcast -- posted at: 1:58pm CST

This week we are continuing our discussion of iron condors. For those of you playing the home game, you can find this information on page 126. If you're following along online, all of this information is always at OptionsPlaybook.com.

 

Today Brian discusses:

  • A review of last time, which discussed indexes
  • Looking at an iron condor on AAPL, going out 23 days
  • What about earnings? Dividends?
  • Quick and dirty formula for probability
  • How does the math play out?
  • Brian assembles an iron condor on AAPL
  • What's the maximum risk? Reward?
  • Getting out before expiration
  • Caveats
  • And more
Direct download: OptionsPlaybookRadio66.mp3
Category:financial podcast -- posted at: 11:12am CST

In this episode, Brian is talking about iron condors. If you have the hardcover version of the Options Playbook, you can find this information on page 126. If you are following along online, all of this information is always available at OptionsPlaybook.com.

 

Today, Brian discusses:

  • How iron condors differ from regular condors
  • Looking at iron condors with index options
  • Why iron condors work well with index options
  • Looking at an example with the S&P 500 Index
Direct download: OptionsPlaybookRadio65.mp3
Category:financial podcast -- posted at: 4:58pm CST

In this episode, we are discussing iron condors. For those of you with the hardcover version of the book, you can find this information on page 126. If you want to follow along online, it is all on OptionsPlaybook.com.

 

Today Brian discusses:

  • The set-up of an iron condor
  • Why is it called a condor?
  • What is an iron condor?
  • What is the next risk?
  • What is the potential reward?
  • When to get out?
  • What do you want to happen?
Direct download: OptionsPlaybookRadio64.mp3
Category:financial podcast -- posted at: 2:40pm CST

Over the last few weeks, we have been talking about butterflies, and last week, we covered inverse skip strike butterfly. This week, we are hitting that, but with calls. You can find this on page 112 of The Options Playbook, or look for it on OptionsPlaybook.com

 

Today Brian discusses:

  • A review of last time, which was centered on DECK earnings
  • Looking at an inverse skip strike butterflies with calls
  • What is the outlook?
  • What is the expected move?
  • What is the risk? Reward?
Direct download: OptionsPlaybookRadio63.mp3
Category:financial podcast -- posted at: 2:34pm CST

In this episode, we're discussing the inverse of skip strike butterflies. This can be found on pages 112 and 115 of the hardback version of the book, or you can always go to OptionsPlaybook.com.

Today, Brian discusses:

  • When you would want to use an inverse skip strike butterfly
  • A live example using Deckers Outdoor
  • What might happen to the underlying, and how to structure a position around it?
  • What is the risk?
  • What is the reward potential?
  • And more
Direct download: OptionsPlaybookRadio62.mp3
Category:financial podcast -- posted at: 1:22pm CST

Options Playbook Radio 61: The Golden Rule

In this episode, we are taking on more listener questions, including:

  • In- versus out-of-the-money golden rules
  • The top 10 mistakes made by options traders
  • Ways to offset decay
  • Getting what you pay for
  • Volatility
  • Moneyness and time value

 

 

Direct download: OptionsPlaybookRadio61.mp3
Category:financial podcast -- posted at: 2:52pm CST

Options Playbook Radio 60:  Listener Question Palooza

In this episode, Brian and Mark take on listener questions as they attend the Options Industry Conference. They take on topics including:

  • Skip strike butterflies around AAPL earnings
  • Regular butterflies versus iron butterflies
  • Has expiration Friday changed in significance in recent years? What about triple and quadrupole witching?
  • The idea of daily expiration options
  • When is Rho a factor?
  • Why is rolling a position so prominent?

 

 

 

 

Direct download: OptionsPlaybook60.mp3
Category:financial podcast -- posted at: 3:45pm CST

Options Playbook Radio 59: Skip Strike Butterflies, Continued

In this episode, Brian continues his discussion of Skip Strike Butterflies. If you have the hard copy version of The Options Playbook, turn to page 108 for calls, or page 110 for puts.

Today, Brian discusses:

  • A review of last episode
  • A real-world example using Priceline, which posts earnings on 5/7 before the open
  • Let’s look at the ATM straddle for the options expiring on 5/8.
  • What has happened previously to Priceline around earnings?
  • What to do about that?
  • What is the upside?
  • What is the downside?

 

 

 

Direct download: OptionsPlaybookRadio59.mp3
Category:financial podcast -- posted at: 2:38pm CST

Options Playbook Radio 58: Back to Butterflies

In this episode, we’re discussing skip strike, or modified/broken wing butterflies. If you’re playing the home game, you can find this information on page 108 (skip strike butterflies with calls) or page 110 (skip strike butterflies with puts). Additionally, it’s always available on OptionsPlaybook.com.

Today, Brian discusses:

  • Understanding butterflies first
  • How a skip strike butterfly is different than a regular butterfly
  • Risk trade-offs versus a standard butterfly
  • Benefit: doing it for a credit
  • Why you want to be directional in your forecast
  • And more…
Direct download: OptionsPlaybook58.mp3
Category:financial podcast -- posted at: 11:20am CST

Options Playbook Radio 57: Trading Diagonal Call Spreads around Earnings

In this episode, Brian discusses trading around earnings, specifically using diagonal call spreads. You can find details on this at: tradeking.com/allstars

Brian discusses:

  • An example using Gilead
  • Sell a call before earnings, buy a call after earnings
  • Why is this called a diagonal?
  • What is the maximum risk?
  • Things to consider
  • And more…
Direct download: OptionsPlaybookRadio57.mp3
Category:financial podcast -- posted at: 1:23pm CST

Options Playbook 56: Butterflies Around Earnings

It is earnings season, and Brian discusses multiple butterfly strategies you can use around this time of season.

Direct download: Options_Playbook_56_final.mp3
Category:financial podcast -- posted at: 9:35pm CST

Options Playbook Radio 55: Huddle Up for Listener Questions.

Today, we’re covering listener questions. Brian and Mark discuss:

·         Which OTM call strike performs best when the underlying rallies?

·         This covers:

·         Timing

·         Volatility

·         Volatility skew

·         Alternatives

·         And more…

 

 

Direct download: OptionsPlaybook55.mp3
Category:financial podcast -- posted at: 12:08pm CST

Options Playbook Radio 54: Butterfly Spreads, continued

In this episode we are continuing our coverage of butterfly spreads. For those of you with the hardcover book, you can find this information on pages 103 and 104. You can also follow along on OptionsPlaybook.com.

Today, Brian discusses:

  • Two real strategies: a butterfly around IBM earnings, and a SPX
  • Let’s look at what is happening with IBM
  • IBM going into earnings
  • Butterfly using IBM weekly options
  • Focusing on the midpoint
  • Maximum risk, maximum upside
  • Remember not to go for a home run
  • What might happen after earnings?
  • Why do you want implied volatilities to decrease?
  • Doing butterflies on indexes, using puts
  • Maximum risk, maximum upside
  • Differences between weekly options and standard options to keep in mind
  • Adjusting your legs
  • Don’t forget that index options are cash-settled, and have 60/40 tax treatment

 

 

Direct download: OptionsPlaybookRadio54.mp3
Category:financial podcast -- posted at: 3:02pm CST

Options Playbook Radio 53: Butterfly Spreads

Today in Options Playbook Radio, we’re discussing butterfly spreads. For those of you with the hardcover version of the book, this can be found on pages 103 and 104. You can always find it on OptionsPlaybook.com as well.

Today, Brian discusses:

  • What do we mean by legs?
  • How are butterfly spreads entered as a trade?
  • Looking at an example using XYZ calls
  • Where do you start?
  • What is the net debit?
  • What is the max risk?
  • What is the max gain?
  • What is the break-even?
  • Look at this as two spreads
  • And more…
Direct download: OptionsPlaybookRadio53.mp3
Category:financial podcast -- posted at: 12:35pm CST

Options Playbook Radio 52: Front Spreads, Part Two

In this episode, we’re covering front spreads. For those of you with the hardcover book, that information can be found on page 80 (calls) or page 82 (puts). You can also find everything on OptionsPlaybook.com.

Today, Brian discusses:

  • A review from last week, what is a front spread, what about risk, etc.
  • Why do this instead of a cash-secured put?
  • Let’s look at this using AAPL as an example
  • Comparing a covered call and front spread
  • What price does the underlying need to hit to get a benefit?
  • Ways in which the front spread works better
  • The tradeoffs between a covered call and front spread
  • When does a front spread make more sense?
  • Now again with puts

 

 

 

Direct download: OptionsPlaybookRadio52.mp3
Category:financial podcast -- posted at: 10:45am CST

Options Playbook Radio 51: Front Spreads

In this episode, we’re talking about the front spread. In the book, this is on page 80 (calls) and page 82 (puts). Or, just find it on OptionsPlaybook.com.

In this episode, Brian discusses:

  • What is a front spread?
  • What about unlimited risk?
  •  What is the goal of this spread?
  • Maximum risk, maximum gain, and breakeven
  • How to do a front spread combined with stock
  • And more…

 

 

Direct download: OptionsPlabyookRadio51.mp3
Category:financial podcast -- posted at: 11:48pm CST

Options Playbook Radio 50: Listener Takeover

Today, Brian and Mark huddle up to discuss:

  • What is time premium? Why does it exist? Why can’t you trade an option for its intrinsic value?
  • Are there any tips to help a new trader process so much options-related information?
Direct download: OptionsPlabyookRadio50.mp3
Category:financial podcast -- posted at: 7:12pm CST

Options Playbook Radio 49: Long Calendar Spreads into Earnings

In this episode, we are covering trading around earnings. For those of you with the hardcover book, you can find this on page 94. If you’re following along online, you can find it on OptionsPlaybook.com.

Today, Brian and Mark discuss:

  • If you put on a long calendar spread, what do you want to happen to volatility after the trade is put on?
  • Good places to review are episodes 36 and 37
  • At look at LULU pre-earnings
  • Setting up a LULU calendar spread
  • What do you want to happen?
  • What is a realistic profit outlook?

 

 

 

Direct download: OptionsPlaybookRadio49.mp3
Category:general -- posted at: 3:05pm CST

Options Playbook Radio 48: Theta, Revisited

In this episode, Mark and Brian are back and taking on your questions.

In this episode, they discuss:

  • Theta data
  • When decay flattens out
  • Riding the road of premium decay
  • What is the optimal ratio of theta versus gamma?
  • And more…
Direct download: OptionsPlaybookRadio48.mp3
Category:financial podcast -- posted at: 2:57pm CST

Options Playbook Radio 47: When to Roll Protective Puts

Today, Mark and Brian answer listener questions, including:

  • When to roll protective puts?
  • What to pay?
  • How far out should you look?
  • And more…
Direct download: Options_Playbook_47_finalV2.mp3
Category:financial podcast -- posted at: 10:58am CST

Options Playbook Radio 46: Paper Trade for ABX Earnings

In this episode, we are covering a specific paper trade strategy around an earnings report.  It will be a long calendar spread with calls, which is on page 90. You can also find it on OptionsPlaybook.com.  You can also learn about long calendar spreads in Options Playbook Radio episode 37.

Today, Brian discusses:

  • The forecast based on the chart
  • The chains for selecting the paper trade
  • Volatility of ABX
  • 52-week history of ABX, and dividend
  • Selecting the right options, and don’t forget weekly options
  • What to keep in mind when trading around earnings
  • Looking at various scenarios
  • And more

 

 

Direct download: OptionsPlaybookRadio46.mp3
Category:financial podcast -- posted at: 11:19am CST

Options Playbook Radio 45: Combinations, continued.

Continuing from last week, we are still discussing combinations. This information can be found on pages 76 and 78 of the hardcover book, or on OptionsPlaybook.com.

 

Today, Brian discusses:

  • Clarification on combinations using a real example: AAPL
  • Long combination, instead of outright stock purchase
  • Looking out to January 2016
  • Rights and obligations
  • How the combination works and its financial impact
  • Don’t forget about margin!
  • How does it work?
  • Who does it work for?
  • What about doing this in an IRA Account?
  • Let’s do the math
  • What about dividends?
  • Let’s take a look at GOOG.
  • Advantages/disadvantages
Direct download: OptionsPlaybookRadio45.mp3
Category:financial podcast -- posted at: 2:46pm CST

Options Playbook Radio 44: Combinations

Welcome back to Options Playbook Radio, where today we’re discussion combinations, or combos. If you have the book, we’re on page 76 (long) or 78 (short). For those of you following along online, you can find it on OptionsPlaybook.com

Today Brian discusses:

  • Before we get to combos, let’s first discuss synthetic relationships
  • What are synthetic positions?
  • Why create them?
  • How to create them?
  • What do the pros do?

 

 

Direct download: OptionsPlaybook44.mp3
Category:financial podcast -- posted at: 3:05pm CST

Options Playbook Radio 43: Listener Question Palooza, Continued

The Huddle:

 

 

  • Question from Anthony Enyo - Thank you for this wonderful program Brian. I am certainly learning a great deal. I have a few questions about dividends and options. I’ve heard there are some telltale signs in the options that reveal that a dividend is approaching. Is this true and if so what are they?
  • Question from Joseph G - ‏@Options Gamma? Are them those rays that turned Dr. Bruce Banner into the Hulk? lol...Seriously - can you sum up what I need to be concerned about with gamma when selling weekly put options? Mostly OTM with 4-7 days to expiration.

 

Direct download: OptionsPlaybookRadio43.mp3
Category:general -- posted at: 6:33pm CST

Options Playbook Radio 42: Listener Questions Edition

The Huddle: Listener questions and comments

 

  • Question from Brian Collamer - Hi Brian! In this show you were describing selling OTM options. You mentioned that when selling options the fastest theta decay occurs in the 45-30 day range. I thought that was only true for ATM options? Do OTM options not decay the fastest at 60-70 days and then kind of flatten out?? Great show, wish it was longer! Thanks, Brian
  • Question Mukund Ambarge: Hi! I had question on theta decay. I understand that delta is in constant flux with every tick move in stock, the delta/gamma changes. IV is in constant flux with buying and selling of options and volume etc. So vega changes with option transactions. But theta decay is the only one which is always in a steady pace i.e. it’s not like it will decay quickly today and slowly tomorrow. The question is when is the theta decay really adjusted in the prices of options. Do the theta decay get adjusted at every tick move? Or every hour? If it is adjusted daily. Then when is the theta decay taken out of options. Early morning before start of trading? Or late in the day like last few minutes that whole days theta is taken out? Also I do not know when is weekend theta taken out of prices? Friday early morning or Friday ending or middle of the day? Basically when does market maker run the prices with the model and set the prices? Only once before trading starts or does he keep adjusting every minute/hour/tick based on demand/supply? Thanks, Mukund            
Direct download: OptionsPlaybook42.mp3
Category:financial podcast -- posted at: 2:56pm CST

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