Options Playbook Radio (financial podcast)

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

Last week we put on two long spreads to coincide with GPS earnings. We knew that one of them would not work, and planned on adjusting it into a butterfly. In this episode, Brian rolls the long put spread into a butterfly.

Specifically, Brian discusses:

  • A review of last week
  • What happened since GPS announced earnings?
  • Which trade didn't work?
  • Adjusting the long put spread
  • What do we want to happen?
  • Setting up the trade, picking strikes
  • What is the net risk? Reward?
  • What is the plan until expiration?

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

Direct download: OptionsPlaybookRadio148.mp3
Category:financial podcast -- posted at: 12:36pm CDT

Today we are looking at long call (aka bull call) spreads. You can find this in The Options Playbook, on OptionsPlaybook.com, or on the Amazon Kindle.

Brian discusses:

  • A review of last week's bull call spread in SJM
  • GPS announces earnings on 2/23
  • Setting up the trade
  • Picking expirations to capture earnings and beyond
  • Picking strikes based on the expected move
  • What is the cost?
Direct download: OptionsPlaybookRadio147.mp3
Category:financial podcast -- posted at: 8:32am CDT

Today we are looking at long calendar spreads. You can find this on pages 90 (calls) and 93 (puts) in The Options Playbook, on OptionsPlaybook.com, or on the Amazon Kindle.

Brian reviews:

  • Review of last week's TSLA calendar spreads with calls and puts.
  • Long calendar spreads, or bull calendar spreads.
Direct download: Options_Playbook_146_final.mp3
Category:financial podcast -- posted at: 11:15am CDT

Today we are looking at calendar spreads. You can find this on pages 90 (calls) and 93 (puts) in The Options Playbook, on OptionsPlaybook.com, or in the Amazon Kindle version.

Brian reviews:

  • Review of last week's AMZN iron condor
  • Long calendar spreads = net long volatility
  • That doesn't mean that you want a volatile market
  • When might this happen? Earnings!
  • Setting up the trade
  • Picking expirations
  • Picking strikes
  • What is the risk? Reward?
Direct download: OptionsPlaybookRadio145.mp3
Category:financial podcast -- posted at: 2:24pm CDT

Today we are looking at iron condors. You can find this in The Options Playbook, on OptionsPlaybook.com, or in the Amazon Kindle version.

Specifically:

  • A review of last week's F call purchase
  • What happened since we put on that trade?
  • Who announced earnings this week?
  • What can we do with AMZN?
  • Where is the AMZN straddle trading?
  • What is the over/under on the upside? Downside?
  • Rationale for picking expiration
  • Rationale for picking strikes
  • What is the maximum risk? Reward?

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

Direct download: OptionsPlaybookRadio144.mp3
Category:financial podcast -- posted at: 12:43pm CDT

As promised last time, we are looking at one off trades. You can find this in the back spreads section of The Options Playbook, on OptionsPlaybook.com, or in the Amazon Kindle version.

Specifically:

  • How to protect ourselves around the election
  • How do back spreads work?
  • What are we likely to gain?
  • What are we likely to lose?
  • What if we ride until expiration?
  • What is the likelihood of a net credit?
Direct download: Options_Playbook_142_final.mp3
Category:financial podcast -- posted at: 9:19am CDT

As promised last time, we are looking at how to manage positions, specifically rolling positions. You can find this in the appendix of The Options Playbook, on OptionsPlaybook.com, or in the Amazon Kindle version.

Specifically:

  • What does rolling a covered call actually mean?
  • When do you want to roll?
  • When do you NOT want to roll?
  • What are we doing if we roll up and out?
  • What if we just go out, not up?
  • What if we go up, not out?
  • Doing things quickly is key
  • What is the likelihood of assignment?
Direct download: OptionsPlaybookRadio141.mp3
Category:financial podcast -- posted at: 1:05pm CDT