Options Playbook Radio

Today we are discussing a fig leaf or leveraged covered call in CSX after earnings.  You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition. 

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: Options_Playbook_256_final.mp3
Category:general -- posted at: 9:57am CDT

With it being in the news a lot lately, let's take a look at a diagonal call spread in Boeing before their earnings reported on April 24.  You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition. 

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: Options_Playbook_255_final.mp3
Category:general -- posted at: 9:12am CDT

THE HUDDLE

Question from Harold Dsouza -  Hi Brian. Let me start off by saying I am a big fan of your options playbook radio podcasts. I think you are an excellent teacher. I have been meaning to reach out to you for a long time now. I am 41 yrs old and have been very intrigued by the stock market since I was a kid. I have also had an innate fear of losing my hard earned money which has kept me away from venturing into the market all these years. I have finally overcome my fear and have decided to slowly wade towards the deep end. I have been educating myself for about 4 months now, getting comfortable with the market terminology and its workings. I've been reading books on stocks & options trading and listening to podcasts. Absorbing as much as I can. I have had a financial advisor  who has been handling my portfolio for the past 6 yrs and honestly I have seen very little gain in my accounts over these years. After listening to your podcasts I am motivated and I believe with the right guidance and education everything is achievable. I have decided to take control of my finances. I have been listening to your podcasts starting from day 1 and listened to them over and over again until i understand the concept. Some of them i'm struggling with, but i am determined to get there. I like the way you break it down into bite sized digestible chunks. My money has been sitting in my trading account for over 3 weeks now. I am a little anxious to take the first step which is picking the right stock. I am still conservative with my money. Hence I am looking primarily at DJI & S&P500 stocks. My focus at this point is to pick right stock that is on it's way up and sell covered calls on those stocks taking advantage of the current market rally while as the same time getting some residual income. Once I am comfortable I will be looking at handling my finances in its entirety.

I need some guidance on how to pick those stocks. I am reaching out with the hope that you could provide some guidance or point me in the right direction to help me get started and achieve my goal. I am currently on podcast # 32, I don't know if you have covered this in your later podcasts. I don't know if my approach is right. I am just going with my understanding of what I have been reading and observing and listening. Much like a well read frog in a well..lol. Look forward to hearing from you. Best Regards, Harold

Question from Joe and Linda - I have  been knee deep with you guys for the last 14 months and can’t thank you enough for the wealth of information you provide. One of my favorite quotes: “ Your generosity is only exceeded by my gratitude.” I have a long commute to work in the morning and have managed to listen to all 240+ of the Options Playbook, all of the Bootcamp, 90% of the OIC stuff as well as in and out of the Options Advisor and Futures show. Also haven’t missed Options Block for the last few months… I have a few questions:
- I purchased Dan’s Trading Options Greeks book and was wondering if he had an audio version. Could easily listen to it on my morning commute.
- I seem comfortable with Bollinger Bands, ADX Charts and Volatility Charts, but I am having trouble nailing down a consistent time frame. Should I set the chart for the time I am interested trading or is the 6 month better, 1 year, 2 year....?
- Should support and resistance lines reflect 100 lines for better accuracy? 250? Thank You so much for all your help, looking forward to the future with you guys. Going to be successful enough to be able to travel Thank You guys in person! Thanks Again!
Question from Jarryd Smith - I have a question for the podcast. What is meant by 'the tent'? For example, stop the trade when it exits 'the tent'. Let's use an ATM Butterfly. Is it the ending 'tent', when at the end of the trade it would a max-loss? Or the end of the trade that would still be a profit? Or something else? For example, if I had a 100/150/200 ATM Butterfly on for $25, would I exit if it hit 100 or 200? Or 125/175? Or something else? Thanks!

Question from Thomas Weber - If I am short a deep in the money call in SPY (delta near 1), what are the odds I will be assigned the Thursday night before Friday expiration?

 

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: Options_Playbook_254_final.mp3
Category:general -- posted at: 7:44am CDT

Let's take a look at our Nexstar fig leaf trade from last week. Then let's discuss an out of the money long call spread on Boeing.  You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition. 

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: Options_Playbook_253_final.mp3
Category:general -- posted at: 8:17am CDT

On today's episode, we use a figure leaf or leveraged covered call in Nexstar Media (NXST).  You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition. 

 

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: Options_Playbook_252_final.mp3
Category:general -- posted at: 8:21am CDT

Comment from Analog K71 - Hi Brian! I know that you are not making recommendations, but your diagonal spread on Pepsi was a perfect call! The short call expires almost perfectly with the underlying stock at 1.16, now my long calls are entirely risk free and possibly worth something! Just wanted to give you a tip of the hat! Thank you
Question from Da Poet - What does it mean when an options is delta skewed?
Question from Holscreen -
Is it safe to say that a large amount of the options business is devoted to paying for puts?
Question from Duffy - How do you handle the fixed-time aspect of trading options?
Question from Stipe 3 - Is it safe to say that most professional option traders are short premium and long theta?
Question from Merrick - Can I have a copy of the playbook? Also does Brian do any live events?

Direct download: Options_Playbook_251_final.mp3
Category:general -- posted at: 7:07am CDT

Direct download: Options_Playbook_250_final.mp3
Category:general -- posted at: 9:20am CDT

 
First we look at recent trades in Pepsi and Nvidia.  Then on today's episode, we use a diagonal spread in Costco.  You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition. 
 
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: Options_Playbook_249_final.mp3
Category:general -- posted at: 9:03am CDT

THE HUDDLE

Comment from Georgi - Hi Brian, Thanks a lot for taking the time and elaborate on my question about OTM Calls, on Jan 17 on Options Playbook Radio! You guys are doing a great job! I have been listening to you for a while and I am very pleased with the content and the way you present it. I enjoyed how you tried to pronounce my Yahoo nickname "joro joro ". My name, in fact, it is Georgi or George in English. Cheers,Georgi G.

Question from Dave B. - Hi, I have a question about what is the best strategy to use for my trading system. I typically am only right on about three or four trades out of every 10 with long stock. The trades that I am wrong on, I take a small loss - somewhere between 5 to 10% but only 1-2% of the total capital as I typically take 10% positions. The trades that I am right on, I typically make 50% up to 200% over a 3 to 12 month period. I want to find an options strategy to increase returns via leverage, but keep total portfolio risk per trade about the same. Would DITM calls or spreads make sense to you?  Or is there another strategy I could (should) consider. Thank you! Dave B.

Question from T Whitaker - I like all of Brian’s earnings strategy episodes of options playbook. It seems like Brian prefers to use skip strike butterflies whenever trading around earnings. But are there ever times when he will utilize other strategies around earnings - maybe straight long/short calls or puts when he feels there is an edge? Good show and loving the playbook website as an addendum.

Question from Leg77 - MIAX making it official with 16 exchanges. What do you guys think about more players entering the options game?

Question from LaCrute2 - Funded my Ally options account and I’m enjoying the options playbook program. Thinking about picking up the book as well. We need to have Brian and Mark do a regular show for the Ally options folks that we can listen to while we’re trading.

Direct download: Options_Playbook_248_final.mp3
Category:general -- posted at: 8:27am CDT

We start the show by reviewing the performance of our Pepsico Earnings diagonal spread from last show. This week we breakdown a bullish Christmas Tree Butterfly in NVDA going into earnings. With NVDA at $152.88 Brian wants to buy 1 Feb15 165 Call, Sell 3 Feb15 167.50 Calls and then Buy 2 Feb15 170 Calls for a net credit of $.20
Direct download: Options_Playbook_247_final.mp3
Category:general -- posted at: 10:21am CDT

Today Brian breaks down a diagonal spread around PepsiCo (PEP) earnings. Tune in to learn how you can implement a similar strategy into your own options trading.  As always, if you have any questions or suggestions for future episodes of Options Playbook Radio please send them to TheOptionsGuy@AllyInvest.com
Direct download: Options_Playbook_246_final.mp3
Category:general -- posted at: 9:35am CDT

Today we will be using a skip strike butterfly in Amazon.  You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition. 
 
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: Options_Playbook_245_final.mp3
Category:general -- posted at: 10:23am CDT

TESLA SKIP STRIKE CALL FLY

  • Host: Brian Overby, Senior Options Analyst - AKA The Options Guy - at Ally Invest

If you like to trade volatile stocks then TSLA has you covered. Today we're going to trade a Skip Strike Call Butterfly using Tesla options. This is an advanced play so make sure you've reviewed the Options Playbook before proceeding. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, and on the Amazon Kindle edition.

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: OPR_244_-_TSLA_Skip_Strike_Fly.mp3
Category:business -- posted at: 7:50pm CDT

Options Playbook Radio 243: Huddling Up About Premium Harvesting and Covered Calls

Today Mark and Brian  answer questions about

  • How to safely harvest premium in a volatile environment by selling puts
  • What criteria should you evaluate when constructing a covered call portfolio?
Direct download: OPR_HUDDLE_2_1-9-19_FINAL.mp3
Category:business -- posted at: 11:10pm CDT

Options Playbook Radio 242: Huddling Up About Expiration, Calls vs. Spreads and More

  • Host: Mark Longo, Founder and CEO - The Options Insider Media Group
  • Co-Host: Brian Overby, Senior Options Analyst - Ally Invest

In this episode Brian and Mark huddle up to answer the following questions:

  • QUESTION FROM Paul Vasquez: When is the “official” close as far as options expiration is concerned? I’ve had calls assigned and had stocks put to me when the strike was out of the money at market close but it moved in and out during after hours trading. Any light you can shed on how expirations work would be appreciated. Thanks Paul, Sacramento, CA

  • QUESTION FROM B0R1NG: When do you just buy a call vs a spread? Is that ever the preferable option?

  • QUESTION FROM COS7MNT: What’s the ideal time frame for trading options? Mostly short-term?

 

 

Direct download: OPR_HUDDLE_1-9-19_FINAL.mp3
Category:financial podcast -- posted at: 8:26pm CDT

Huddle up, listeners! We're taking your questions, including:

  • The options question of the week: What is the largest open options position in AAPL right now?
  • Given the skew set up in equities, why would you ever buy a collar?
  • Why are there no options on VXAPL?
  • Will we ever have a VIX index product that you can actually buy/sell?

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: OptionsPlaybookRadio241.mp3
Category:general -- posted at: 9:00am CDT

1