Options Playbook Radio

We are back in earnings season. Given the possibility for big moves, we will look at the skip strike butterfly with calls, which you can find on page 108 of The Options Playbook. This is always available onoptionsPlaybook.com, in on the Amazon Kindle edition.

In this episode:

  • What happens to implied volatiilty around earnings?
  • The dynamics of the trade
  • The more costly the underlying, the more costly the option
  • AMZN announces earnings on 7/27 after the close
  • What is the "expected move"?
  • Picking a close expiration
  • Selecting strikes
  • What is the maximum risk?
  • What is the break-even point?
  • What if we are completely wrong?
  • What is the best-case scenario?

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

Direct download: OptionsPlaybookRadio168.mp3
Category:financial podcast -- posted at: 3:23pm CDT

It's huddle time again on Options Playbook Radio. This is when Mark and Brian answer listener questions. Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

The Bobster wants to know if options can be traded outside of U.S. trading hours.

  • Short answer: yes and no
  • Longer answer: liquidity issues, wider spreads, other nuances.
  • Should there be regular after hours?
  • Should it be limited to a number of names?
  • Index versus equity options

Nelly2 wants to know about assignment. Just so I am clear on the spread assignment thing. If I am in SPX, then I just get cash if the index closes inside my spread. But if I am in a stock, then I get the stock?

  • Cash-settled
  • Guidelines for cash-settled versus regular settled
  • Sellers and buyers rights and obligations
Direct download: OptionsPlaybookRadio167.mp3
Category:financial podcast -- posted at: 11:43am CDT

For the last few episodes, we were reviewing skip-strike butterflies in GOOGL. You can find this on page 87 of The Options Playbook. This is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

In this episode:

  • A review of the last few weeks of strategies in GOOGL
  • Looking at IBM, which will announce earnings on July 18
  • Remember: earnings add a bit of volatility to the underlying
  • Where is the IV?
  • Having a neutral to bullish outlook
  • Going out further in time. Why?
  • Time is on your side
  • Picking the expiration
  • Picking the strikes
  • What will this cost?
  • What is the maximum risk? Reward?

Do you have a question that you want featured on an upcoming episode of Options Playbook Radio? Send Brian an email at: theoptionsguy@invest.ally.com.

Direct download: OptionsPlaybookRadio166.mp3
Category:financial podcast -- posted at: 8:51am CDT

Last week we looked at a GOOGL skip-strike butterfly. Staying on the same page, we will put on a new paper trade as a follow up for that one. You can find this on page 108 of The Options Playbook. This is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

In this episode:

  • A review of last week
  • What was the trade?
  • What did it cost?
  • What happened since?
  • What are we doing now?
  • Setting up the trade
  • Selecting strikes
  • What about expirations?
  • Max loss and gain?

Do you have a question that you want featured on an upcoming episode of Options Playbook Radio? Send Brian an email at: theoptionsguy@invest.ally.com.

Direct download: OptionsPlaybookRadio165.mp3
Category:financial podcast -- posted at: 3:59pm CDT

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