Options Playbook Radio (financial podcast)

It's all listener questions in this episode of Options Playbook Radio. Do you have questions that you would like answered on the show? Send them to Brian at theoptionsguy@tradeking.com.

  • Question from JLaws: My dad is coming over to the dark side slowly but surely/ He is thinking about dipping his toes in the options pool. What product do you recommend for an options newcomer making his first trade?
  • Question from Sharkcake: I have been approved to trade options by my Brokerage but I have yet to execute my first trade. What trade do you recommend?
  • Question from Meats: Would you describe successful options trading as primarily singles and doubles or more swing-for-the-fences home runs?
  • Question from Mary: What is the shortest expiry available for plain vanilla options?
Direct download: OptionsPlaybookRadio158.mp3
Category:financial podcast -- posted at: 12:54pm CDT

Last week we looked at an inverse, skip-strike butterfly on AAPL before earnings (page 112). Today, we will explore a FB iron condor (page 126). This is always available on OptionsPlaybook.com, or on the Amazon Kindle edition.

In this episode, Brian covers:

  • A review of last week
  • What are the benefits and risks of the skip-strike butterfly?
  • What has happened since we put the trade on?
  • What should you have done?
  • What is going on with FB?
  • Setting up the trade
  • What is the expected move after earnings?
  • Selecting the expriation
  • Selecting the strikes
  • What is the maximum risk? Reward?
  • What is the ideal scenario?

Do you have questions that you would like answered on the show? Send them to Brian at theoptionsguy@tradeking.com.

Direct download: OptionsPlaybookRadio157.mp3
Category:financial podcast -- posted at: 1:52pm CDT

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

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

In this episode, Brian covers:

  • A review of last week's UAL butterfly
  • Lesson to learn: Don't try to hit a home run with a butterfly
  • Putting on a skip-strike butterfly with calls
  • Picking the expiration
  • Looking at the implied volatility
  • Picking strikes
  • What is the net credit?
  • What is the maximum risk?
Direct download: OptionsPlaybookRadio155.mp3
Category:financial podcast -- posted at: 3:01pm CDT

For the last few episodes, we explored backspreads in SNAP. This week we shift gears to another name that is highly volatile right now, United Air Lines. Let's explore a long butterfly spread with UAL calls.

In this episode:

  • A review of the SNAP backspreads
  • Volatility in UAL skyrockted
  • Why choose a butterfly spread?
  • Choosing a one-day trade
  • Selecting strikes
  • Setting up the trade
  • What is the cost?
  • What do we want to happen?
Direct download: OptionsPlaybookRadio154.mp3
Category:financial podcast -- posted at: 12:25pm CDT

SNAP's recent IPO has had the name in the news quite a bit these days, so let's take a look at SNAP backspread with puts, which is on page 84 (calls) and page 87 (puts) of The Options Playbook, on OptionsPlaybook.com, or on the Amazon Kindle edition.

In this episode, Brian reviews:

  • The SNAP backspread with calls from last time
  • What has SNAP done since last time?
  • Where are the SNAP options now?
  • What about implied volatility?
  • When will earnings be announced?
  • Taking a bearish view this week
  • Setting up the trade
  • What is the expected move on the May 19 contracts?
  • What is the cost?

Do you have questions that you would like answered on the show? Send them to Brian at theoptionsguy@tradeking.com.

Direct download: OptionsPlaybookRadio153.mp3
Category:financial podcast -- posted at: 9:29am CDT

SNAP's recent IPO has had the name in the news quite a bit these days, so let's take a look at SNAP backspread with calls, which is on page 84 of The Options Playbook, on OptionsPlaybook.com, or on the Amazon Kindle edition.

In this episode, Brian covers:

  • A review of last week's long call on PFE
  • Still figuring out the SNAP valuation
  • Where is implied volatility?
  • Why a backspread instead of a straddle?
  • Selecting the expiration date
  • What about earnings?
  • Selecting strikes
  • What is the expected movement?
  • What is the risk? Upside?

Do you have questions that you would like answered on the show? Send them to Brian at theoptionsguy@tradeking.com.

Direct download: OptionsPlaybookRadio152.mp3
Category:financial podcast -- posted at: 1:38pm CDT

This week we will buy options in a stock that is at the low end of the implied volatility range. You can find long calls on page 40 of The Options Playbook, on OptionsPlaybook.com, or on the Amazon Kindle. To review the long calendar spread with calls, see page 90.

In this episode:

  • A review of last week's AAPL long calendar spread
  • Implied volatility of PFE is somewhat low
  • General rules of buying options contracts
  • What contract to buy and why?
  • Picking the strike and expiration
  • What will it cost?
  • You get more delta when you have more time on OTM options
  • What about the dividend?

Do you have questions that you would like answered on the show? Send them to Brian at theoptionsguy@tradeking.com.

Direct download: OptionsPlaybookRadio151.mp3
Category:financial podcast -- posted at: 11:30am CDT

Today we are going to take a look at long calendar spread with calls on a little known company called Apple. This is on page 90 of The Options Playbook, on OptionsPlaybook.com, or on the Amazon Kindle.

Specifically:

  • What can you do going into earnings?
  • How to "control" implied volatility around earnings
  • AAPL indicates that it will announce earnings on April 25
  • What are the implied volatilities for the at-the-money calls expiring around that date?
  • Setting up the trade: picking strikes and expirations
  • What is the net cost for the spread?
  • What do we want to happen?
  • Plus, reviewing the GPS butterfly and the ABT straddle

Do you have questions that you would like answered on the show? Send them to Brian at theoptionsguy@tradeking.com.

Direct download: OptionsPlaybookRadio150.mp3
Category:financial podcast -- posted at: 1:20pm CDT

Today we are looking at a long straddle. You can find this in The Options Playbook, on OptionsPlaybook.com, or on the Amazon Kindle.

In this episode, Brian discusses:

  • A review of the long GPS put spread that was adjusted into a butterfly
  • How was the butterfly constructed, and for what price?
  • What has happened since the adjustment?
  • What to do now?
  • Remember, butterflies love time decay
  • Moving into the healthcare sector, implied volatility is low in Abbot Labs
  • Where is 30-day IV in Abbott Labs?
  • When does ABT announce earnings?
  • Putting on a 35-day straddle
  • Picking strikes
  • What is the cost?
  • What about a fig leaf? (aka leveraged covered call)
  • Picking the strikes
  • What is the cost?

Do you have questions that you would like answered on the show? Send them to Brian at theoptionsguy@tradeking.com.

Direct download: OptionsPlaybookRadio149.mp3
Category:financial podcast -- posted at: 12:46pm CDT