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.
- 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.
- What are your thoughts on the crypto boom? No options yet but they are coming. Is Ally planning to jump on the train?
- Do you ever use short calendars - so selling longer term and buying the near term?
- 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.