Options Playbook Radio

Options Playbook Radio 51: Front Spreads

In this episode, we’re talking about the front spread. In the book, this is on page 80 (calls) and page 82 (puts). Or, just find it on OptionsPlaybook.com.

In this episode, Brian discusses:

  • What is a front spread?
  • What about unlimited risk?
  •  What is the goal of this spread?
  • Maximum risk, maximum gain, and breakeven
  • How to do a front spread combined with stock
  • And more…

 

 

Direct download: OptionsPlabyookRadio51.mp3
Category:financial podcast -- posted at: 11:48pm CDT

Options Playbook Radio 50: Listener Takeover

Today, Brian and Mark huddle up to discuss:

  • What is time premium? Why does it exist? Why can’t you trade an option for its intrinsic value?
  • Are there any tips to help a new trader process so much options-related information?
Direct download: OptionsPlabyookRadio50.mp3
Category:financial podcast -- posted at: 7:12pm CDT

Options Playbook Radio 49: Long Calendar Spreads into Earnings

In this episode, we are covering trading around earnings. For those of you with the hardcover book, you can find this on page 94. If you’re following along online, you can find it on OptionsPlaybook.com.

Today, Brian and Mark discuss:

  • If you put on a long calendar spread, what do you want to happen to volatility after the trade is put on?
  • Good places to review are episodes 36 and 37
  • At look at LULU pre-earnings
  • Setting up a LULU calendar spread
  • What do you want to happen?
  • What is a realistic profit outlook?

 

 

 

Direct download: OptionsPlaybookRadio49.mp3
Category:general -- posted at: 3:05pm CDT

Options Playbook Radio 48: Theta, Revisited

In this episode, Mark and Brian are back and taking on your questions.

In this episode, they discuss:

  • Theta data
  • When decay flattens out
  • Riding the road of premium decay
  • What is the optimal ratio of theta versus gamma?
  • And more…
Direct download: OptionsPlaybookRadio48.mp3
Category:financial podcast -- posted at: 2:57pm CDT

Options Playbook Radio 47: When to Roll Protective Puts

Today, Mark and Brian answer listener questions, including:

  • When to roll protective puts?
  • What to pay?
  • How far out should you look?
  • And more…
Direct download: Options_Playbook_47_finalV2.mp3
Category:financial podcast -- posted at: 10:58am CDT

Options Playbook Radio 46: Paper Trade for ABX Earnings

In this episode, we are covering a specific paper trade strategy around an earnings report.  It will be a long calendar spread with calls, which is on page 90. You can also find it on OptionsPlaybook.com.  You can also learn about long calendar spreads in Options Playbook Radio episode 37.

Today, Brian discusses:

  • The forecast based on the chart
  • The chains for selecting the paper trade
  • Volatility of ABX
  • 52-week history of ABX, and dividend
  • Selecting the right options, and don’t forget weekly options
  • What to keep in mind when trading around earnings
  • Looking at various scenarios
  • And more

 

 

Direct download: OptionsPlaybookRadio46.mp3
Category:financial podcast -- posted at: 11:19am CDT

Options Playbook Radio 45: Combinations, continued.

Continuing from last week, we are still discussing combinations. This information can be found on pages 76 and 78 of the hardcover book, or on OptionsPlaybook.com.

 

Today, Brian discusses:

  • Clarification on combinations using a real example: AAPL
  • Long combination, instead of outright stock purchase
  • Looking out to January 2016
  • Rights and obligations
  • How the combination works and its financial impact
  • Don’t forget about margin!
  • How does it work?
  • Who does it work for?
  • What about doing this in an IRA Account?
  • Let’s do the math
  • What about dividends?
  • Let’s take a look at GOOG.
  • Advantages/disadvantages
Direct download: OptionsPlaybookRadio45.mp3
Category:financial podcast -- posted at: 2:46pm CDT

Options Playbook Radio 44: Combinations

Welcome back to Options Playbook Radio, where today we’re discussion combinations, or combos. If you have the book, we’re on page 76 (long) or 78 (short). For those of you following along online, you can find it on OptionsPlaybook.com

Today Brian discusses:

  • Before we get to combos, let’s first discuss synthetic relationships
  • What are synthetic positions?
  • Why create them?
  • How to create them?
  • What do the pros do?

 

 

Direct download: OptionsPlaybook44.mp3
Category:financial podcast -- posted at: 3:05pm CDT

Options Playbook Radio 43: Listener Question Palooza, Continued

The Huddle:

 

 

  • Question from Anthony Enyo - Thank you for this wonderful program Brian. I am certainly learning a great deal. I have a few questions about dividends and options. I’ve heard there are some telltale signs in the options that reveal that a dividend is approaching. Is this true and if so what are they?
  • Question from Joseph G - ‏@Options Gamma? Are them those rays that turned Dr. Bruce Banner into the Hulk? lol...Seriously - can you sum up what I need to be concerned about with gamma when selling weekly put options? Mostly OTM with 4-7 days to expiration.

 

Direct download: OptionsPlaybookRadio43.mp3
Category:general -- posted at: 6:33pm CDT

Options Playbook Radio 42: Listener Questions Edition

The Huddle: Listener questions and comments

 

  • Question from Brian Collamer - Hi Brian! In this show you were describing selling OTM options. You mentioned that when selling options the fastest theta decay occurs in the 45-30 day range. I thought that was only true for ATM options? Do OTM options not decay the fastest at 60-70 days and then kind of flatten out?? Great show, wish it was longer! Thanks, Brian
  • Question Mukund Ambarge: Hi! I had question on theta decay. I understand that delta is in constant flux with every tick move in stock, the delta/gamma changes. IV is in constant flux with buying and selling of options and volume etc. So vega changes with option transactions. But theta decay is the only one which is always in a steady pace i.e. it’s not like it will decay quickly today and slowly tomorrow. The question is when is the theta decay really adjusted in the prices of options. Do the theta decay get adjusted at every tick move? Or every hour? If it is adjusted daily. Then when is the theta decay taken out of options. Early morning before start of trading? Or late in the day like last few minutes that whole days theta is taken out? Also I do not know when is weekend theta taken out of prices? Friday early morning or Friday ending or middle of the day? Basically when does market maker run the prices with the model and set the prices? Only once before trading starts or does he keep adjusting every minute/hour/tick based on demand/supply? Thanks, Mukund            
Direct download: OptionsPlaybook42.mp3
Category:financial podcast -- posted at: 2:56pm CDT