Options Playbook Radio (general)

In this episode, Brian looks at a NFLX butterfly before earnings, including:

  • Selecting strikes & expiration
  • Watch out for skew
  • Plan the trade, trade the plan
  • And more...
Direct download: OptionsPlaybookRadio204.mp3
Category:general -- posted at: 1:04pm CDT

We are back in the saddle discussing options strategies. As we are a few days away from earnings, let's look at something that is not driven by earnings. While we're waiting for volatility to slow down, let's look at a short-term butterfly in UNH. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, or on the Amazon Kindle edition.

Specifically:

  • UNH announces earnings on 4/16
  • Doing a very short-term butterfly to not contain earnings
  • What are we hoping to happen?
  • What is the implied volatility?
  • Selecting strikes
  • Setting up the trade
  • What is the maximum risk? Reward?
  • What about time decay?

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: OptionsPlaybookRadio203.mp3
Category:general -- posted at: 2:45pm CDT

It's time to huddle up, in which Brian and Mark address listener questions and comments.

In this episode:

  • Question from Ed Bankert: Debating on using covered calls or short puts. Which is better for a less experienced options trader who wants to make money?
  • Question from Duffy: How do you handle the fixed-time aspect of trading options?
  • Comment from Charlie T.: Not really an options guy. I don't need the headache of yet another unknown element aka time. It’s hard enough just picking my stocks, deciding price points, exit points, etc.

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: OptionsPlaybookRadio202.mp3
Category:general -- posted at: 1:18pm CDT

As we approach the end of earnings season, there are still a few names left to announce. Last week we talked about a FedEx butterfly. Let's revisit what has happened since. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, or on the Amazon Kindle edition.

Specifically:

  • A review of last week's FDX butterfly
  • What has happened to FDX since the paper trade?
  • What is happening in Nike?
  • How about a back spread?
  • Looking for volatility
  • Hoping the stock will move more than the expected move
  • Selecting expiration
  • Selecting strikes
  • What is the maximum gain? Loss?

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: OptionsPlaybookRadio201.mp3
Category:general -- posted at: 12:45pm CDT

Last week we talked about a Costco butterfly. Let's revisit what has happened since. You can find more on page 102 (butterfly) and page 126 (iron condor) of The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • A review of last week's comparison of the butterfly vs. iron condor in COST
  • Breaking down the butterfly
  • What about the iron condor?
  • What happened after COST announced earnings?
  • Implied volatility and time decay as factors
  • Moving on to FedEx, which reports earnings on 3/20
  • How to set up a trade to contain the earnings
  • Selecting strikes
  • What is the cost?
  • What is the maximum risk?

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: OptionsPlaybookRadio200.mp3
Category:general -- posted at: 9:23am CDT

Let's review the skip-strike butterfly in PCLN from last week. You can find more on page 108 of The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition. The long butterfly (used on the Costco paper trade) is on page 102.

Specifically:

  • A review of last week
  • A change of name
  • Did you adjust?
  • Was time on your side?
  • Who is up next? Costco Holdings!
  • What are we looking for?
  • Putting on an at-the-money butterfly
  • Selecting strikes
  • What is the break even?
  • Avoiding the "stupid award"

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: OptionsPlaybookRadio198.mp3
Category:general -- posted at: 2:16pm CDT

As we enter the end of earnings season, there are still a few big names left to report, including Priceline, PCLN. This is an interesting opportunity for a skip-strike butterfly. You can find more on page 108 of The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • Earnings + expiration + implied volatility = interesting situation
  • Goal: do the trade for a net credit
  • PLCN announces earnings on 2/27
  • What is the expected move?
  • What is the implied volatility?
  • Selecting the strikes
  • Remember commissions!
  • What's the risk? Reward?
  • When to get out?

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: OptionsPlaybookRadio197.mp3
Category:general -- posted at: 5:07pm CDT

We are back to the playbook this week and taking a close look at Wynn Resorts. There is a lot of volatility in the stock these days with the CEO in the news quite a bit these days. We are looking at a very short-term butterfly. You can find more on page 104 of The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • Why a very short-term trade?
  • What is the desired outcome?
  • What about the stock going ex-dividend?
  • Setting up the trade
  • Why use puts?
  • Selecting strikes
  • What is the cost?
  • When to get out?
  • Looking at net theta versus net delta

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: OptionsPlaybookRadio196.mp3
Category:general -- posted at: 1:46pm CDT

It's time to huddle up and take on listener questions in this episode of Options Playbook Radio.

  • Question from Janice: Hi Brian! I have a question about the way you talk about the alternatives available for managing the LEAPS option put spread if the market goes down. Can you please explain?
  • Question from Matt: What's up with the FB $5 calls?
  • Question from Johnny Bananas: If you buy a put option and the strike price is $5 and the stock drops to $3, is it still worth money?
Direct download: OptionsPlaybookRadio195.mp3
Category:general -- posted at: 2:38pm CDT

In this episode, Brian covers:

  • Using a pricing calculator to review different scenarios
  • Buying an out-of-the-money option
  • What happens to delta?
  • Looking at probability
  • When time is your ally
  • When to buy an out-of-the-money option
  • How to get low time premium
  • Closer to expiration = higher delta
  • What about at-the-money options?
  • When to buy, and when not to
Direct download: OptionsPlaybookRadio175.mp3
Category:general -- posted at: 4:03pm CDT