Options Playbook Radio

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

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

Options Playbook Radio 41: Back to Backspreads

In this episode, we cover backspreads. If you’re playing along at home with the hardcover book, this means we’re on pages 84 (calls) and 87 (puts). If you’re following along online, you can find all of this at OptionsPlaybook.com.

Today Brian discusses:

  • A review from last time
  • Looking at an example with Chevron
  • What do we need to happen?
  • What is the risk?
  • What to look for between backspreads and straddles?
  • Why do a backspread?
  • And more…
Direct download: OptionsPlaybookRadio41.mp3
Category:financial podcast -- posted at: 7:22pm CDT

Options Playbook Radio 40: Backspreads

In this episode, we’re covering Backspreads. For those of you with the hardcover version of the Options Playbook, you can find this on page 84 (calls) and page 87 (puts). It’s also online at OptionsPlaybook.com.

Today, Brian discusses:

  • What are backspreads?
  • An example using calls
  • An example using puts
  • Other names for a backspread
  • Factors that matter, including time 
  • When to use backspreads
  • And more…
Direct download: Options_Playbook_Radio_40__Backspreads.mp3
Category:financial podcast -- posted at: 10:04pm CDT

Options Playbook Radio 39: Diagonal Spreads, Continued

This week’s edition of Options Playbook Radio is continuing our coverage of diagonal spreads. For those of you with the hardcover version of the book, we’re on page 96 (calls) and page 99 (puts). If you’re following along online, you can find what you need at OptionsPlaybook.com.

Today Brian covers:

  • Review from last week
  • Tesla example, and why a diagonal spread works for this example
  • Paying attention to delta
  • What to watch for and when to get out of the trade

 

 

Direct download: OptionsPlaybookRadio39.mp3
Category:general -- posted at: 12:57pm CDT

Options Playbook Radio 38: Diagonal Spreads

In this week’s edition of Option Playbook Radio, we’re covering diagonal spreads. You can find this on page 96 (call) and page 99 (put) of the hardback version, or at OptionsPlaybook.com.

Today, Brian discusses:

  • Calendar/horizontal spreads, and when you would use them
  • What is a diagonal spread?
  • Why is it called a diagonal spread?
  • The history of some of the spread nomenclature
  • Possible outcomes of diagonal spreads
  • And more…
Direct download: OptionsPlaybookRadio38.mp3
Category:financial podcast -- posted at: 12:12pm CDT

Options Playbook Radio 37: Long Calendar Spreads, Continued

In this episode of Options Playbook Radio, we’re continuing our discussion of long calendar spreads. For those of you with the hardcover version of the book, this is on page 90 (calls) or page 93 (puts). You can also find it on OptionsPlaybook.com.

Today, Brian discusses:

  • A review from last week’s introduction
  • Using an example of FB around earnings
  • What makes earnings season special for calendar spreads
  • Why direction matters
  • How earnings impact implied volatility
  • Implementing a calendar after a major event
  • Using indexes instead of stocks
  • And more

 

 

Direct download: OptionsPlaybookRadio37.mp3
Category:financial podcast -- posted at: 1:25pm CDT

Options Playbook Radio 36: Long Calendar Spreads

In this episode, we’re talking about long calendar spreads, from the call side. If you have the Playbook, we’re on page 90. Or, you can find what we’re discussing on OptionsPlaybook.com.

Today, Brian discusses:

  • What is a calendar spread?
  • Looking at accelerated time decay, and why does it happen?
  • At-the-money strikes, and why they are used in calendar spreads
  • Front and back month
  • How to construct a calendar spread
  • Why do a calendar spread?
  • Time decay review, and how it impacts the value of your option
  • Maximum profit and loss
  • Time value review, and what happens when it goes away?
  • And more…
Direct download: OptionsPlaybookRadio36.mp3
Category:financial podcast -- posted at: 7:13pm CDT

Options Playbook Radio 35: Straddles and Strangles, Continued.

Options Playbook Radio 35: Straddles and Strangles, Continued.

Options Playbook Radio is back and today we are on pages 68 and 70. For those of you playing along online, you can find these topics at OptionsPlaybook.com.

Today Brian discusses:

  • What does the math say about Facebook earnings
  • Looking at the FB straddle
  • Why do investors use it?
  • How do weekly options impact it?
  • Quick and dirty formula on p. 17 of the book
  • What are volatility and probability telling us with the math?
  • Using a real-life example with FB 
  • Real world versus what is “supposed” to happen
  • And more…
Direct download: Options_Playbook_35__Straddles__Strangles_Cont.mp3
Category:financial podcast -- posted at: 11:10am CDT

Options Playbook Radio 34: Buying Straddles & Strangles

Welcome back to Options Playbook Radio. For those of you with the book, today we are on pages 48 and 52. You can also find this information on OptionsPlaybook.com.

Today Brian discusses:

  • A quick review of long spreads, including risk/reward
  • A quick homework assignment: review sessions 4 and 5
  • A generic example of a long straddle
  • A generic example of a long strangle
  • What does the math say 70% of the time?
  • And more

 

 

Direct download: OptionsPlaybook34.mp3
Category:financial podcast -- posted at: 1:54pm CDT

Options Playbook 33: Selling Spreads, Continued

For those of you playing the home game, today we are on pages 64 and66 . If you are following along online, you can access everything you need at OptionsPlaybook.com.

Today Brian discusses:

  • Overview of last week on timing and probability when selling spreads
  • If you need a volatility review, please refer to episode 4
  • Real-life example using AAPL
  • Impact of timeframes
  • Premium relative to probability of success (and what is success?)
  • And more...
Direct download: Options_Playbook_33__Selling_Spreads_Continued_.mp3
Category:financial podcast -- posted at: 6:37pm CDT

Options Playbook Radio 32: Selling Spreads

Welcome back to Options Playbook Radio! For those of you with the hardcover book, today we’re on pages 64 (short call spread) and 66 (short put spread). Or, you can find information on our discussion on OptionsPlaybook.com

Today Brian discusses:

  • They’re also known as bear call or bear put spreads
  • Using out-of-the-money options
  • Examples using calls
  • What is the maximum profit?
  • What is the maximum risk?
  • Probability of success
  • Don’t forget about commissions
  • Timeframe implications
  • And more

 

 

Direct download: OptionsPlaybook32.mp3
Category:financial podcast -- posted at: 11:41am CDT

Options Playbook Radio 31: Buying Spreads, Continued

For those of you with the book, today we’re on page 60. If you want to follow along online, please visit OptionsPlaybook.com.  http://www.optionsplaybook.com/,

Today Brian discusses:

  • How spread trading differs from single options trading
  • Avoiding paying premium to close out a position
  • A real world example using Intel
  • How do earnings impact options prices?
  • Time value and how you pay for it
  • And more…
Direct download: OptionsPlaybookRadio31.mp3
Category:financial podcast -- posted at: 4:43pm CDT

Options Playbook Radio 30: Long Spreads

For those of you with a copy of the Playbook, we’re on page 60. If you are following along on OptionsPlaybook.com, look for the Long Call/Put section.

Today, Brian discusses:

  • What does it mean to have a “long” spread?
  • Bull call spread, bear put spread.
  • Vertical spreads
  • What does it all mean?
  • Crafting a P/L graph without owning the stock
  • Risks and rewards are limited and known
  • Common misunderstandings

 

 

Direct download: OptionsPlaybookRadio30.mp3
Category:financial podcast -- posted at: 4:55pm CDT

Options Playbook Radio 29: Collar Strategy

We’re on page 54 of the hardback version of the Playbook, or find it on OptionsPlaybook.com

Today, Brian discusses:

  • How collars go hand-in-hand with protective puts
  • Timeframes, and their importance
  • What is a collar? How does it work? What’s the cost? What’s the upside? How far out in time should you go?
  • The impact of interest rates and dividends
  • And more

 

 

Direct download: OptionsPlaybookRadio29.mp3
Category:financial podcast -- posted at: 12:11pm CDT

Options Playbook Radio 28: Protective Puts

For those of you with a copy of the Playbook, we are on page 152, If you are looking at the Options Playbook website, just look for "Protective Puts" in the Strategy Tab 

Today Brian discusses:

  • Using a protective put when selling stock.
  • Risk taken on by writing a protective put.
  • What is a "married" put
  • How known events can affect the cost of writing a protective put.
  • Using an index option as protection for a portfolio of stocks. 
Direct download: Options_Playbook_28_final.mp3
Category:financial podcast -- posted at: 2:07pm CDT

Options Playbook Radio 27: Index Options

For those of you with a copy of the Playbook, we're on page 145 "So what is an index option anyhow?" If you are looking at the Options Playbook website, just look for "Index Options" in the Options Basics Tab 

Today Brian discusses:

  • American-style expiration vs. European-style expiration.
  • The very first listed index option.
  • S&P 500 Index and the DOW 30.
  • Capitalization weighted vs. Equal dollar weighted vs. Price weighted.
  • AM Settlement vs PM Settlement.
  • Broad-based vs. Narrow-based.
Direct download: Options_Playbook_27_final.mp3
Category:financial podcast -- posted at: 2:06pm CDT

Options Playbook Radio 26: Early Exercise & Assignment

For those of you with a copy of the Playbook, we’re on page 140.  If you are looking at the Options Playbook website, just look for “What is Early Exercise and Assignment.”

Today Brian discusses:

  • A review of rolling option contracts
  • Why will you not necessarily be assigned on a contract that is in-the-money?
  • American-style options versus European-style options
  • Exercise versus assignment
  • Why don’t option buyers exercise instantly?
  • Don’t forget about time value
  • And more…
Direct download: Options_Playbook_Radio_26__Early_Exercise__Assignment.mp3
Category:financial podcast -- posted at: 6:47pm CDT

Options Playbook Radio 25: How We Roll

We’re on page 134 in the book, or look for “How We Roll” in the Options Playbook website.

In this episode, Brian discusses:

  • Position management: what does it mean?
  • How the covered call rules apply
  • A deep dive with an example
  • Looking for an option that will cover the cost of rolling
  • And more...

 

 

 

 

Direct download: OptionsPlaybook25.mp3
Category:financial podcast -- posted at: 2:49pm CDT

Options Playbook Radio 24: The Fig Leaf Strategy

In this episode, we’re on page 56 of the Playbook. Or, look for the fig leaf in the strategies tab online, or look for the plays in the Kindle version.

Today, Brian discusses:

  • Where did the name originate?
  • What is it? What is it NOT?
  • How is it composed?
  • Determining goals and finding appropriate options.
  • Key considerations and nuances
  • Max loss and max gain
  • How to avoid assignment, or rolling
  • And more

 

 

 

Direct download: OptionsPlaybookRadio24.mp3
Category:financial podcast -- posted at: 1:24pm CDT

Options Playbook Radio 23: Combining Cash-Secured Put Selling with Covered Call Writing

For those of you with the hardback version of the Playbook, today we’re on pages 48 and 44, respectively.

Brian discusses:

  • A review of what makes for a decent covered call underlying
  • How to approach a stock that you like
  • What is dollar-cost averaging?
  • What happens when your stock doesn’t go up?
  • The dividend question
  • How to carry on with this strategy
  • And more…

 

 

Direct download: OptionsPlaybook23.mp3
Category:financial podcast -- posted at: 2:43pm CDT

Options Playbook Radio 22: Cash-Secured Puts

For those of you playing the home game, we’re on page 48. Or, just look for cash-secured puts in the rookies section, or the plays section.

This time, Brian covers:

  • What it means to be cash-secured
  • What it means to sell a put
  • Scenarios with different stock prices
  • Considerations and catches
Direct download: OptionsPlaybookRadio22.mp3
Category:financial podcast -- posted at: 10:42am CDT

Options Playbook Radio 21: Continuing with the Covered Call

For those of you with the book, we’re on page 50, or on OptionsPlaybook.com, go to the strategies tab, and go to “Covered Calls.”

This time, Brian covers:

  • What criteria a stock needs to be a good candidate for a covered call
  • If it looks too good to be true, it probably is
  • Implied volatility
  • Factors effecting premium
  • And more…
Direct download: OptionsPlaybook21.mp3
Category:financial podcast -- posted at: 2:52pm CDT

Options Playbook 20: Covered Call Writing

For those of you with the book, we’re on page 50. Or, you can find it on OptionsPlaybook.com in the “Rookies” tab  and look for “Covered Calls Strategies.”

Today Brian discusses:

 

  • What are covered calls? (Sometimes called a buy / write)
  • When to run a covered call.
  • Strike price and expiration.
  • Unwinding a covered call. 
  • Caveats, including right to dividends.
Direct download: Options_Playbook_20_final.mp3
Category:financial podcast -- posted at: 7:00pm CDT

Options Playbook Radio 19: Listener Q/A, Part Three – Long Puts

In this episode, Mark and Brian continue to take on listener questions.

They discuss long puts:

  • When would you use them?
  • When can you not use them?
  • Choosing money-ness
  • What about volatility?
  • Forecasting and risk

 

 

Direct download: OptionsPlaybookRadio19.mp3
Category:financial podcast -- posted at: 3:31pm CDT

Options Playbook Radio 18: Listener Q/A Part 2

In this episode, Mark and Brian take on more listener questions, including:

Put/call ratio

  • What is it?
  • What does it mean?
  • What do Brian and Mark think about it?

Call/put ratio in the VIX

  • Selling a put instead of buying a stock
  • Why does no one talk about this?
  • Hidden risk or downside
  • Gap risk
Direct download: OptionsPlaybook18.mp3
Category:financial podcast -- posted at: 9:46am CDT

Options Playbook Radio 17: Listeners Ask about Open Interest

In this episode, Mark and Brian take on listener questions.

Open interest:

  • What is it?
  • How is it calculated?
  • What’s the difference between open interest and volume?
  • How does it affect pricing?
  • How important is it?

 

 

Direct download: OptionsPlaybookRadio17.mp3
Category:financial podcast -- posted at: 9:58am CDT

Options Playbook 16: Buying LEAPS Calls as a Stock Substitute

For those of you with the book, we’re on page 32. Or, you can find it on OptionsPlaybook.com in the “Rookies” tab  and look for “Buying LEAPS Calls as a Stock Substitute.”

Today Brian discusses:

  • A review of buying calls, in-, at-, and out-of-the-money
  • How LEAPS can be an alternative to buying a short-term, out-of-the-money call
  • What are LEAPS?
  • What impact does delta have on long-term options?
  • Using a real IBM option as an example
  • Caveats, including dividends and bid/ask spreads

 

 


Options Playbook Radio 15: Play #1 - The Long Call

We are on page 40 of the hardcover version. Otherwise, look for “The Long Call Strategy” on the Kindle or online version.

Today Brian discusses:

 

  • How the long call strategy works.
  • Basic examples of a long call.
  • Time components and implied volatility.
  • In the money vs. out of the money vs. at the money contracts
Direct download: Options_Playbook_15_final.mp3
Category:financial podcast -- posted at: 2:54pm CDT

Options Playbook Radio 14: AAPL Stock Split 

We are on page 72 of the hardcover version. Otherwise, look for “the Long Strangle” on the Kindle or online version.

Today Brian discusses:

  • AAPL is splitting their stock 7-for-1
  • What does that mean?
  • How does it work?
  • Will it become a part of the Dow 30?
  • AAPL 30-day implied volatitliy
  • Employing the long strangle strategy
  • What will happen to option contracts after the split
Direct download: OptionsPlaybook14.mp3
Category:financial podcast -- posted at: 10:00am CDT

Options Playbook 13: Finishing the Greeks - Vega and Rho

If you’re playing the home game, we’re on page 22 today.

In this episode, Brian discusses:

  • Vega tracks implied volatility
  • Rho tracks interest rate changes
  • When to expect changes in vega based on the life of the option
  • Determining where your concerns should be
  • How dividends are tied into Rho
  • And more....
Direct download: Options_Playbook_13__Finishing_the_Greeks_-_Vega_and_Rho.mp3
Category:financial podcast -- posted at: 9:37am CDT

Options Playbook Radio 12: More Listener Questions

In this episode, Mark and Brian take on more listener questions.

They discuss:

  • What does it mean to be short gamma?
  • More about Brian

 

 

Direct download: OptionsPlaybook12.mp3
Category:financial podcast -- posted at: 11:10am CDT

Options Playbook 11: Listener Questions, Part 1

In this episode Brian and Mark discuss:

  • Trading off Greeks rather than price
  • The difference between historical, implied, and realized volatility
  • And more...

 

 

Direct download: OptionsPlaybook11.mp3
Category:financial podcast -- posted at: 11:13am CDT

Options Playbook Radio 10: Meet the Greeks: Interrelatedness

For those of you with the book, we're on page 18, or look for "Meet the Greeks."

Today, Brian discusses:

  • The interrelatedness of the Greeks
  • The long straddle
  • Volatility skew
  • Looking at Delta first
  • Analyzing Gamma
  • Considering Theta
  • And more…
Direct download: OptionsPlaybook10.mp3
Category:financial podcast -- posted at: 9:53am CDT

Options Playbook Radio 9: Getting to Know Theta

We’re looking at page 18 of the book, or check out OptionsPlaybook.com, and look for “Meet the Greeks.”

This week, Brian discusses:

  • Theta definition
  • Movement of options in time, and how it impacts price
  • When does decay accelerate?
  • And more…
Direct download: OptionsPlaybook9.mp3
Category:financial podcast -- posted at: 2:37pm CDT

Options Playbook 8: Meet the Greeks, Part Three: Position Delta

For those of you with the book at home, we’re looking at page 18, or “Meet the Greeks.”

Do you have questions that you want to have answered on the Options Playbook next week, put your questions on Trade King’s Facebook page (https://www.facebook.com/tradeking) or send them to questions@theoptionsinsider.com.

In this episode, Brian discusses:
Gamma review

Position delta definition

Terms that go along with delta

And more…

 

Options involve risk. Please refer to tradeking.com/ODD to review additional risks involved with trading options.

 

 

Direct download: OptionsPlaybook8.mp3
Category:financial podcast -- posted at: 3:58pm CDT

Options Playbook Radio 7: Meet the Greeks, Part Two: Gamma

We’re covering page 18 in the hardcover version of the book. It’s now available in Kindle, too!

In this episode, Brian covers:

  • Delta review
  • Gamma introduction: a derivative of delta
  • Nuances of gamma
  • When is gamma the highest? Lowest?
  • And more…

Options involve risk. Please refer to tradeking.com/ODD to review additional risks involved with trading options.

Direct download: OptionsPlaybook7.mp3
Category:financial podcast -- posted at: 12:53pm CDT

Options Playbook Radio 6: Meet the Greeks Volume 1: Delta

If you have the hardcover version of the book, we’re covering pages 18-20, Meet the Greeks.

Brian discusses:

  • Delta: the measurement of the theoretical movement of the price of an option relative to a one-unit move in the price of underling stock.
  • The pace that delta moves as stock prices moves
  • Probability and delta
  • And more

Options involve risk. Please refer to tradeking.com/ODD to review additional risks involved with trading options.

Direct download: OptionsPlaybook6.mp3
Category:financial podcast -- posted at: 1:05pm CDT

Options Playbook 5:  Volatility and Probability, Continued             

For those of you playing the home game, we’re on pages 14-17 today.  Or, for the online version, check out, “What Is Volatility?”

 

 

In this episode, Brian continues the discussion of volatility and probability.  In this episode, he covers different timeframes beyond one-year options.  How does a one standard deviation move affect prices for short-term options (30, 60, and 90-day options)? There’s a formula for that!  Options move at the square root of time.

Options involve risk. Please refer to tradeking.com/ODD to review additional risks involved with trading options.

Direct download: OptionsPlaybook5.mp3
Category:financial podcast -- posted at: 3:48pm CDT

Options Playbook 4: Volatility & Probability

Follow along at optionsplaybook.com, or go to page 14 of the book.

Brian discusses:

  • The definition of implied volatility
  • Pricing models and assumptions
  • How to determine implied volatility
  • Non-directionality of implied volatility
  • Impact of time on implied volatility
  • Impact of events on the price of an option

Options involve risk. Please refer to tradeking.com/ODD to review additional risks involved with trading options.

Direct download: OptionsPlaybook4.mp3
Category:financial podcast -- posted at: 12:30pm CDT

Options Playbook 3: Volatility, Part 1

Options prices are based partly on volatility.  Brian discusses:

  • Implied volatility
  • The interconnectedness of probability and volatility
  • Factors beyond price that help determine whether to trade an option

Send your questions to questions@theoptionsinsider.com and maybe we will answer them on the air.

Options involve risk. Please refer to tradeking.com/ODD to review additional risks involved with trading options.

Direct download: OptionsPlaybook3.mp3
Category:financial podcast -- posted at: 1:38pm CDT

In this episode, Options Insider Founder Mark Longo and TradeKing Senior Options Analyst Brian Overby explain how options are similar to home or auto insurance contracts. They also provide an overview of options pricing and define some basic options terms including:

  • Premium
  • Implied Volatility
Direct download: Options_Playbook_2_-_Options_Basics.mp3
Category:financial podcast -- posted at: 8:00am CDT

In this inaugural episode Options Insider Founder Mark S. Longo is joined by TradeKing's Senior Options Analyst, and the author of the Options Playbook, Brian Overby. Brian and Mark discuss the origins of the Playbook and explain how this book can help you improve your understanding of options. They also tease some of the popular options plays listeners can look forward to in the coming episodes of The Options Playbook. 

Direct download: Options_Playbook_Episode_1.mp3
Category: -- posted at: 3:53pm CDT