Options Playbook Radio

Options Playbook Radio 61: The Golden Rule

In this episode, we are taking on more listener questions, including:

  • In- versus out-of-the-money golden rules
  • The top 10 mistakes made by options traders
  • Ways to offset decay
  • Getting what you pay for
  • Volatility
  • Moneyness and time value

 

 

Direct download: OptionsPlaybookRadio61.mp3
Category:financial podcast -- posted at: 2:52pm CDT

Options Playbook Radio 60:  Listener Question Palooza

In this episode, Brian and Mark take on listener questions as they attend the Options Industry Conference. They take on topics including:

  • Skip strike butterflies around AAPL earnings
  • Regular butterflies versus iron butterflies
  • Has expiration Friday changed in significance in recent years? What about triple and quadrupole witching?
  • The idea of daily expiration options
  • When is Rho a factor?
  • Why is rolling a position so prominent?

 

 

 

 

Direct download: OptionsPlaybook60.mp3
Category:financial podcast -- posted at: 3:45pm CDT

Options Playbook Radio 59: Skip Strike Butterflies, Continued

In this episode, Brian continues his discussion of Skip Strike Butterflies. If you have the hard copy version of The Options Playbook, turn to page 108 for calls, or page 110 for puts.

Today, Brian discusses:

  • A review of last episode
  • A real-world example using Priceline, which posts earnings on 5/7 before the open
  • Let’s look at the ATM straddle for the options expiring on 5/8.
  • What has happened previously to Priceline around earnings?
  • What to do about that?
  • What is the upside?
  • What is the downside?

 

 

 

Direct download: OptionsPlaybookRadio59.mp3
Category:financial podcast -- posted at: 2:38pm CDT

Options Playbook Radio 58: Back to Butterflies

In this episode, we’re discussing skip strike, or modified/broken wing butterflies. If you’re playing the home game, you can find this information on page 108 (skip strike butterflies with calls) or page 110 (skip strike butterflies with puts). Additionally, it’s always available on OptionsPlaybook.com.

Today, Brian discusses:

  • Understanding butterflies first
  • How a skip strike butterfly is different than a regular butterfly
  • Risk trade-offs versus a standard butterfly
  • Benefit: doing it for a credit
  • Why you want to be directional in your forecast
  • And more…
Direct download: OptionsPlaybook58.mp3
Category:financial podcast -- posted at: 11:20am CDT

Options Playbook Radio 57: Trading Diagonal Call Spreads around Earnings

In this episode, Brian discusses trading around earnings, specifically using diagonal call spreads. You can find details on this at: tradeking.com/allstars

Brian discusses:

  • An example using Gilead
  • Sell a call before earnings, buy a call after earnings
  • Why is this called a diagonal?
  • What is the maximum risk?
  • Things to consider
  • And more…
Direct download: OptionsPlaybookRadio57.mp3
Category:financial podcast -- posted at: 1:23pm CDT

Options Playbook 56: Butterflies Around Earnings

It is earnings season, and Brian discusses multiple butterfly strategies you can use around this time of season.

Direct download: Options_Playbook_56_final.mp3
Category:financial podcast -- posted at: 9:35pm CDT

Options Playbook Radio 55: Huddle Up for Listener Questions.

Today, we’re covering listener questions. Brian and Mark discuss:

·         Which OTM call strike performs best when the underlying rallies?

·         This covers:

·         Timing

·         Volatility

·         Volatility skew

·         Alternatives

·         And more…

 

 

Direct download: OptionsPlaybook55.mp3
Category:financial podcast -- posted at: 12:08pm CDT

Options Playbook Radio 54: Butterfly Spreads, continued

In this episode we are continuing our coverage of butterfly spreads. For those of you with the hardcover book, you can find this information on pages 103 and 104. You can also follow along on OptionsPlaybook.com.

Today, Brian discusses:

  • Two real strategies: a butterfly around IBM earnings, and a SPX
  • Let’s look at what is happening with IBM
  • IBM going into earnings
  • Butterfly using IBM weekly options
  • Focusing on the midpoint
  • Maximum risk, maximum upside
  • Remember not to go for a home run
  • What might happen after earnings?
  • Why do you want implied volatilities to decrease?
  • Doing butterflies on indexes, using puts
  • Maximum risk, maximum upside
  • Differences between weekly options and standard options to keep in mind
  • Adjusting your legs
  • Don’t forget that index options are cash-settled, and have 60/40 tax treatment

 

 

Direct download: OptionsPlaybookRadio54.mp3
Category:financial podcast -- posted at: 3:02pm CDT

Options Playbook Radio 53: Butterfly Spreads

Today in Options Playbook Radio, we’re discussing butterfly spreads. For those of you with the hardcover version of the book, this can be found on pages 103 and 104. You can always find it on OptionsPlaybook.com as well.

Today, Brian discusses:

  • What do we mean by legs?
  • How are butterfly spreads entered as a trade?
  • Looking at an example using XYZ calls
  • Where do you start?
  • What is the net debit?
  • What is the max risk?
  • What is the max gain?
  • What is the break-even?
  • Look at this as two spreads
  • And more…
Direct download: OptionsPlaybookRadio53.mp3
Category:financial podcast -- posted at: 12:35pm CDT

Options Playbook Radio 52: Front Spreads, Part Two

In this episode, we’re covering front spreads. For those of you with the hardcover book, that information can be found on page 80 (calls) or page 82 (puts). You can also find everything on OptionsPlaybook.com.

Today, Brian discusses:

  • A review from last week, what is a front spread, what about risk, etc.
  • Why do this instead of a cash-secured put?
  • Let’s look at this using AAPL as an example
  • Comparing a covered call and front spread
  • What price does the underlying need to hit to get a benefit?
  • Ways in which the front spread works better
  • The tradeoffs between a covered call and front spread
  • When does a front spread make more sense?
  • Now again with puts

 

 

 

Direct download: OptionsPlaybookRadio52.mp3
Category:financial podcast -- posted at: 10:45am CDT