Options Playbook Radio

It's huddle time again on Options Playbook Radio. This is when Mark and Brian answer listener questions. Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

The Bobster wants to know if options can be traded outside of U.S. trading hours.

  • Short answer: yes and no
  • Longer answer: liquidity issues, wider spreads, other nuances.
  • Should there be regular after hours?
  • Should it be limited to a number of names?
  • Index versus equity options

Nelly2 wants to know about assignment. Just so I am clear on the spread assignment thing. If I am in SPX, then I just get cash if the index closes inside my spread. But if I am in a stock, then I get the stock?

  • Cash-settled
  • Guidelines for cash-settled versus regular settled
  • Sellers and buyers rights and obligations
Direct download: OptionsPlaybookRadio167.mp3
Category:financial podcast -- posted at: 11:43am CST

For the last few episodes, we were reviewing skip-strike butterflies in GOOGL. You can find this on page 87 of The Options Playbook. This is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

In this episode:

  • A review of the last few weeks of strategies in GOOGL
  • Looking at IBM, which will announce earnings on July 18
  • Remember: earnings add a bit of volatility to the underlying
  • Where is the IV?
  • Having a neutral to bullish outlook
  • Going out further in time. Why?
  • Time is on your side
  • Picking the expiration
  • Picking the strikes
  • What will this cost?
  • What is the maximum risk? Reward?

Do you have a question that you want featured on an upcoming episode of Options Playbook Radio? Send Brian an email at: theoptionsguy@invest.ally.com.

Direct download: OptionsPlaybookRadio166.mp3
Category:financial podcast -- posted at: 8:51am CST

Last week we looked at a GOOGL skip-strike butterfly. Staying on the same page, we will put on a new paper trade as a follow up for that one. You can find this on page 108 of The Options Playbook. This is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

In this episode:

  • A review of last week
  • What was the trade?
  • What did it cost?
  • What happened since?
  • What are we doing now?
  • Setting up the trade
  • Selecting strikes
  • What about expirations?
  • Max loss and gain?

Do you have a question that you want featured on an upcoming episode of Options Playbook Radio? Send Brian an email at: theoptionsguy@invest.ally.com.

Direct download: OptionsPlaybookRadio165.mp3
Category:financial podcast -- posted at: 3:59pm CST

Today Brian covers a skip-strike butterfly, which you can find on page 109 of The Options Playbook. This is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • What are the right circumstances for trading a skip-strike butterfly?
  • A bad news event in GOOGL creates an interesting situation for options traders
  • Where is GOOGL right now?
  • What exactly is a skip-strike butterfly?
  • What's our forecast?
  • Where is the at-the-money straddle?
  • Setting up the trade
  • Picking strikes
  • Picking expiration
  • What's the maximum risk?
  • What will this cost?
  • Butterfly considerations
  • What do we want to happen?

Do you have a question that you want featured on an upcoming episode of Options Playbook Radio? Send Brian an email at: theoptionsguy@invest.ally.com.

Direct download: OptionsPlaybookRadio164.mp3
Category:financial podcast -- posted at: 12:37pm CST

The Huddle: Listeners weigh in with questions

  • Question from Steve - With the VIX so low, I am not selling a lot of options anymore, because I am afraid that I will not collect enough premium. Am I thinking of this incorrectly?
  • Question from Lincan -My go-to options strat is to sell covered puts on stocks that I want to buy then get paid to wait. If the stock comes my way I eventually trade out of it using a covered call. What do you think? Savvy or stupid?

Do you have a question that you want featured on an upcoming episode of Options Playbook Radio? Send Brian an email at: theoptionsguy@invest.ally.com.

Direct download: OptionsPlaybookRadio163.mp3
Category:financial podcast -- posted at: 12:21pm CST

It's all listener questions in this special edition of Options Playbook Radio

  • Question from Ejh4isu - If I buy/sell a vertical on SPX (or any equity stock for that matter) and hold until expiration, and SPX settles between the strikes, what happens ? Example: sell 2395/2400 and SPX settles at 2397.
  • Question from Kraken1975 - Which of the Greeks do you utilize the most and why?
  • Question from ButcherBoyz - What options trading strategy would you say is best suited to people with absolutely zero knowledge of options? Thanks.

Do you have a question that you want featured on an upcoming episode of Options Playbook Radio? Send Brian an email at: theoptionsguy@invest.ally.com.

Direct download: OptionsPlaybookRadio162.mp3
Category:financial podcast -- posted at: 2:26pm CST

In this episode, Brian reviews two paper trades from previous episodes and opens up a third. You can find the backspread with calls on page 84 of The Options Playbook, and the put debit spread is on page 62. Plus, this week we'll look at the fig leaf, which you can find on page 56. This is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Today, Brian discusses:

  • A review of the AMD backspread
  • What did AMD do since putting on the trade?
  • A review of the FCX debit put spread
  • What did FCS do since putting on the trade?
  • Re-introducing the fig leaf with AMD
  • Using a LEAPS option
  • Setting up the trade
  • Picking strikes
  • What will it cost?
  • Why not just do a covered call?

Do you have questions that you want to have answered on an episode of Options Playbook Radio? Send them to Brian at theoptionsguy@invest.ally.com.

Direct download: OptionsPlaybookRadio161.mp3
Category:financial podcast -- posted at: 9:12am CST

Last week's episode looked at a backspread with calls. That strategy is on page 83 of the Options Playbook. This week, we will cover a debit put spread, which is on page 62.

In this session, Brian covers:

  • A review of last week's AMD backspread
  • Why look at FCX?
  • Why a long put spread?
  • Erring on the side of being too short or too long
  • Intrinsic value considerations
  • Picking strikes and expiration dates
  • Buying as much time premium as selling
Direct download: OptionsPlaybookRadio160.mp3
Category:financial podcast -- posted at: 2:22pm CST

Today, we will explore back spread with calls in AMD (page 84). This is always available on OptionsPlaybook.com, or on the Amazon Kindle edition.

In this episode, Brian covers:

  • What are the benefits and risks of the back spread with calls?
  • What has happened since we put the trade on?
  • Setting up the trade.
  • What is the maximum risk? Reward?
  • What is the ideal scenario?
Direct download: Options_Playbook_159_final.mp3
Category:financial podcast -- posted at: 7:22am CST

It's all listener questions in this special edition of Options Playbook Radio.

  • Question from JDog - I just got an options pitch that says that options buyer lose money on 7 out of every 10 trades. Is that true?
  • Question from Alan Shepard - Why would I ever buy an option when 90% of them expire worthless?
  • Question from Lesnod - How do you get out of the straddles? One side of a straddle is always a loss correct?
  • Question from Bob - Concerning options: I have been told to take an ATM call and put, add them together and that is the expected move. Is that correct?

If you have questions for Brian, send them to theoptionsguy@ally.com.

Direct download: OptionsPlaybookRadio158-2.mp3
Category:financial podcast -- posted at: 11:14am CST