Options Playbook Radio

How can stock investors use options? You've come to the right place. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • A review of the AAPL collar from two weeks ago
  • What about capital gains?
  • Remember we had a small credit
  • Where are we now?
  • What about additional risk?
  • What's an alternative? Using an example with FB
  • Using a FB option as a surrogate for stock
  • Setting up the trade
  • Selecting expiration and strike
  • Remember, one option for every 100 shares of stock

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: OptionsPlaybookRadio236.mp3
Category:general -- posted at: 2:09pm CST

Huddle up, traders! For your listening pleasure, Mark and Brian answer your burning options trading questions, including:

  • Question from Barry Brown - Good morning. Have the show archives been withdrawn or are they still available? Question: If we put on a poor man's covered call position and the price moves up the short call, when do you recommend rolling, etc? Thank you. Your stuff is great. Really enjoy all you efforts. Thank you.
  • Question from Douglas Tilley - Hello! Regarding long stock substitution:
    1. With call options, are deltas additive? I.e. why are (2) 40-delta calls so much cheaper than (1) 80-delta call? This seems like buying equivalent total delta for about half the cost.
    2. For more accurate stock substitution, do you ever use the technique of buying an ATM call while selling an ATM put? (Vs. buying calls for a desired total delta).
    What are the pros and cons (or nuances) of the 2 methods? I do notice that the 2nd method definitely requires more buying power, due to the short put. Thanks for all the education - D Tilley, DDS
  • Question from Splitsville - Why is long put/covered call a "collar" while short put/long call is a "risk reversal." Never understood that one.
Direct download: OptionsPlaybookRadio235.mp3
Category:general -- posted at: 4:09pm CST

It's always a good idea to review basics. Today we're looking a covered calls, and it's cousin, collars. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • Lots a bad news around Apple
  • What to do approaching the new year?
  • Thinking about capital gains, taking losses
  • What is the scenario?
  • What will selling a covered call do?
  • What is the risk? Reward?
  • What would a collar look like?
  • What would it cost?
  • Risk and reward

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: OptionsPlaybookRadio234.mp3
Category:general -- posted at: 2:49pm CST

HD is announcing earnings soon. Let's look at how to set up a straddle to cap risk. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • What's happened since last week?
  • What did we learn from the NVDA backspread from last time?
  • What happened to the one without earnings?
  • What happened to the one that contained earnings?
  • Let's take a look at Home Depot
  • Earnings are coming up
  • Setting up the trade
  • We know the max risk and max upside
  • How many contracts should we do?
  • What is our rationale?
  • What's the goal?

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: OptionsPlaybookRadio233B.mp3
Category:general -- posted at: 11:14am CST

Nvidia is announcing earnings soon. Can we expect a dead cat bounce on the stock? You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • What has NVDA been up to lately?
  • NVDA has an earnings announcement on 11/15
  • Selecting expiration dates
  • Where is implied volatility for the expirations?
  • What are our expectations for IV?
  • Putting on a backspread with calls
  • Setting up the trade
  • What is the risk?
  • What do we want to happen?
  • Which to choose? Why?

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: OptionsPlaybookRadio232.mp3
Category:general -- posted at: 4:36pm CST

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