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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.

Nov 21, 2018

Huddle up, traders! For your listening pleasure, Mark and Brian answer your burning options trading questions, including:

  • Question from Barry Brown - Good morning. Have the show archives been withdrawn or are they still available? Question: If we put on a poor man's covered call position and the price moves up the short call, when do you recommend rolling, etc? Thank you. Your stuff is great. Really enjoy all you efforts. Thank you.
  • Question from Douglas Tilley - Hello! Regarding long stock substitution:
    1. With call options, are deltas additive? I.e. why are (2) 40-delta calls so much cheaper than (1) 80-delta call? This seems like buying equivalent total delta for about half the cost.
    2. For more accurate stock substitution, do you ever use the technique of buying an ATM call while selling an ATM put? (Vs. buying calls for a desired total delta).
    What are the pros and cons (or nuances) of the 2 methods? I do notice that the 2nd method definitely requires more buying power, due to the short put. Thanks for all the education - D Tilley, DDS
  • Question from Splitsville - Why is long put/covered call a "collar" while short put/long call is a "risk reversal." Never understood that one.