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Options Playbook Radio

Welcome to Options Playbook Radio - the program where we break down cutting edge options strategies and explain how you can incorporate them into your own portfolio.

Oct 18, 2018

Huddle up, listeners. It's time for Mark and Brian to answer your questions.

  • Question from BuseKrus D - New to options, and working with a small account size. Looked to put on a trade with a strategy from the playbook (Christmas tree butterfly I think) with a 57-60-66 2x3x1 call fly for a total debit of 1.30. I've always heard that for a defined risk debit trade the max risk is the amount paid. However, the brokerage was saying I needed around 740 in my account to be able to put on the trade. Is there an explanation? Is the capital required to put on a trade greater than the possible max loss on defined risk debit spreads? Thanks.
  • Question from Ron S6 - What's your suggested minimum account size to start trading options?
  • Question from Lance Everett: Hello again Brian. Still enjoying the options playbook radio program. It's my quick options education fix for the week. I listen on my commute to work every Thursday. I have a few questions for your next Huddle episode if don't mind. If you can only answer one then that's fine too.
    1. You talked front spreads on episode 227. Do you ever use more traditional ratio spreads- outside of repair scenarios, of course? Bonus points if you know where the term front spread came from.
    2. What are your thoughts on the crypto boom? No options yet but they are coming. Is Ally planning to jump on the train?
    3. Do you ever use short calendars - so selling longer term and buying the near term?
    4. Is there a sequel to the playbook in the works? Although the show is kind of like an ongoing live update/ sequel so that's probably better. Thanks again for making my Thursdays fun and informative.