Options Playbook Radio

As we enter the end of earnings season, there are still a few big names left to report, including Priceline, PCLN. This is an interesting opportunity for a skip-strike butterfly. You can find more on page 108 of The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • Earnings + expiration + implied volatility = interesting situation
  • Goal: do the trade for a net credit
  • PLCN announces earnings on 2/27
  • What is the expected move?
  • What is the implied volatility?
  • Selecting the strikes
  • Remember commissions!
  • What's the risk? Reward?
  • When to get out?

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.

Direct download: OptionsPlaybookRadio197.mp3
Category:general -- posted at: 5:07pm CDT

We are back to the playbook this week and taking a close look at Wynn Resorts. There is a lot of volatility in the stock these days with the CEO in the news quite a bit these days. We are looking at a very short-term butterfly. You can find more on page 104 of The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • Why a very short-term trade?
  • What is the desired outcome?
  • What about the stock going ex-dividend?
  • Setting up the trade
  • Why use puts?
  • Selecting strikes
  • What is the cost?
  • When to get out?
  • Looking at net theta versus net delta

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.

Direct download: OptionsPlaybookRadio196.mp3
Category:general -- posted at: 1:46pm CDT

It's time to huddle up and take on listener questions in this episode of Options Playbook Radio.

  • Question from Janice: Hi Brian! I have a question about the way you talk about the alternatives available for managing the LEAPS option put spread if the market goes down. Can you please explain?
  • Question from Matt: What's up with the FB $5 calls?
  • Question from Johnny Bananas: If you buy a put option and the strike price is $5 and the stock drops to $3, is it still worth money?
Direct download: OptionsPlaybookRadio195.mp3
Category:general -- posted at: 2:38pm CDT

Continuing with the idea of FAANG stock earnings, today we're looking at an AAPL protective put. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • A review of last week
  • How do you protect yourself against a big move in AAPL after earnings?
  • Where is AAPL now?
  • What is the outlook?
  • Selecting a strike and expiration
  • What is the cost? Upside?
  • Meeting the "deductible"
  • What about a protective put spread?
  • What is the cost?
  • Why do it?
  • How do weeklys impact the ability to buy insurance around earnings?

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.

Direct download: OptionsPlaybookRadio194.mp3
Category:financial podcast -- posted at: 2:03pm CDT

In this episode, we are looking at a calendar trade around earnings in TSLA. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • Where is TSLA trading as of this recording?
  • When are they expected to announce earnings?
  • Where is the at-the-money straddle right now?
  • Setting up a trade into earnings
  • Selecting a strike
  • The volatility caveat
  • What is the desired outcome?

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.

Direct download: OptionsPlaybookRadio193.mp3
Category:financial podcast -- posted at: 3:53pm CDT

In this episode, we are looking beyond the Options Playbook and are selling a put credit spread to pay for a long call. You can find more on p. 76 of The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • Looking at Intuitive Surgical, Inc. (ISRG), which has been on a tear lately
  • Earnings pushed the stock even higher
  • Expensive underlying = expensive options
  • Taking a long view using LEAPS
  • Selecting strikes for the put spread
  • Buying the at-the-money call
  • How does the trade work?
  • What is the cost?
  • What is the risk?
  • How to close it out?
  • Alternatives to the trade as described

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.

Direct download: OptionsPlaybookRadio192.mp3
Category:financial podcast -- posted at: 3:28pm CDT

In this episode, we are looking beyond the Options Playbook and are using a long combination to create a synthetic stock and buy protection. You can find more on p. 76 of The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • A review of last week's episode
  • What is a synthetic long stock?
  • Where is Facebook now?
  • How to create a synthetic long position
  • Adding a twist...using a put spread
  • Selecting expirations and strikes
  • What is the cost? Risk?

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.

Direct download: OptionsPlaybookRadio191.mp3
Category:financial podcast -- posted at: 2:55pm CDT

Welcome to 2018! Let's jump right into strategies, specifically around earnings. In this episode, we are looking at a long calendar spread with puts in FCX. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • Why are we picking FCX?
  • When does FCX announce earnings?
  • What is the implied volatility?
  • Why are we expecting a major announcement?
  • Why pick a calendar around earnings?
  • Defining a calendar spread
  • Remember, if you do this, you're long implied volatility
  • Caveats and other considerations
  • Setting up the trade
  • What is the cost? Risk?
  • What do we want to happen?

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.

Direct download: OptionsPlaybookRadio190.mp3
Category:financial podcast -- posted at: 12:26pm CDT

Mark and Brian are back to answer listener questions. In particular:

  • Question from Taj Penaso - Hi, will there be options for bitcoin once the futures are traded?? or just the futures until there are tradeable ETFs available? Thanks.
  • #Options #QOTW - Now it's a party! #Bitcoin futures are live on both @CMEGroup & @CBOE. But everyone's asking us the $1M question - "When will we get #Bitcoin #Options?" So we thought we'd ask you - When will we be able to trade #options on these futures? 52% - Q1 2018, 19% - Q2 2018, 14% - Q3 2018, 5% - Q4 2018
  • Question from L Penguin - I have a question for the option playbook. I'm a new options trader and I want to buy a LEAP call bc it looks like the stock is going to go to up in the next 12 months, but I don't want to commit yet. I also want to generate income while I hold that position. What are your thoughts on selling the call while I have the leap? Also, this stock has an attractive dividend that I'd like to capture. Is this even possible? Interested in your thoughts, thanks!...I was thinking about buying a deep in the money call for the LEAP, and then depending on where the stock is trading at the time, sell closer to the money.
  • Question from VLL98 - What happens to my options if the company declares bankruptcy? Can I still exercise my calls and buy the stock at the strike price?

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.

Direct download: Options_Playbook_189_final.mp3
Category:financial podcast -- posted at: 10:25am CDT

In this episode, we are looking at a covered call, but with a twist: a credit spread around stock you already own. You can find more on page 80 of The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • FedEx announced earnings on 12/20, was up 3.5% after the announcement
  • It hit the all-time high on 12/20
  • What are the benefits of doing a credit spread instead of just a covered call?
  • Setting up the trade: picking expiration (and why that date)
  • Selecting strikes
  • What is the approach?
  • What is the risk?

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.

Direct download: OptionsPlaybookRadio188.mp3
Category:financial podcast -- posted at: 2:33pm CDT