Options Playbook Radio

In this episode, recorded the day before Thanksgiving 2016, Brian is joined by Mark, and they take on listener questions and comments.

This includes:

Options#QuestionOfTheWeek:

Great traders need many weapons in their arsenals. But everyone has a favorite. What is yours?

  • Vertical/Ratio Vertical
  • Iron Condor/Iron Fly
  • Straddle/Strangle
  • Covered Call/Short Put

What is Brian's answer? Long Butterflies!

Listener questions include:

  • When the market is rallying, what's wrong with just buying calls?
  • Has anyone studied the effect of selling weekly options vs monthly options INCLUDING commissions? Seems like that would be a big factor when writing so many contracts.
  • Are skip-strike butterflies the same thing as broken wing butterflies?
  • Why trade volatility versus direction or income?
  • Discuss the delta of VIX
Direct download: OptionsPlaybookRadio135.mp3
Category:financial podcast -- posted at: 11:39am CDT

What situations might be a good time for covered call writing? There is also the long put spread from last week to discuss. You can follow on pages 50 and 62, respectively, of The Options Playbook, on OptionsPlaybook.com, or in the Amazon Kindle version.

This week, Brian discusses:

  • What has happened to the market since the election?
  • Why is the VIX going up when the market is going up?
  • How did we do from the long put spread from last week?
  • What were the risk parameters?
  • Covered call writing
  • Don't forget about the Thanksgiving holiday
  • What is the timeframe?
  • Looking for the Goldilocks of volatility
  • Avoid earnings
  • Setting up the trade

Do you have questions that you would like answered on the show? Send them to Brian at theoptionsguy@tradeking.com.

Direct download: OptionsPlaybookRadio134.mp3
Category:financial podcast -- posted at: 12:18pm CDT

For the last few weeks, we have been looking at earnings plays, including a short call spread (page 64), and today we're looking at a long put spread (page 62) of The Options Playbook, on OptionsPlaybook.com, or in the Amazon Kindle version.

On tap for today:

  • Pushing all-time highs post-election
  • Reviewing last week's FB trade
  • Where is the market right now?
  • Putting on a long put spread in SPY
  • What is the timeframe?
  • Setting up the trade
  • What is the maximum risk? Reward? Break-even?

Do you have questions that you would like answered on the show? Send them to Brian at theoptionsguy@tradeking.com.

Direct download: OptionsPlaybookRadio133.mp3
Category:financial podcast -- posted at: 10:59am CDT

'Tis the season. Earnings season, that is. Let's take a look at another earnings play, specifically a short call spread. You can find this on page 80 of The Options Playbook, on OptionsPlaybook.com, or in the Amazon Kindle version.

Today Brian discusses:

  • A review of last week's CVX front spread
  • Facebook (FB) announced earnings just after this recording
  • What is the expected move post-earnings?
  • Do we agree with that prediction?
  • Selecting an expiration
  • Setting up the trade
  • What's the risk? Reward?

Do you have questions that you would like answered on the show? Send them to Brian at theoptionsguy@tradeking.com.

Direct download: OptionsPlaybookRadio132.mp3
Category:financial podcast -- posted at: 1:25pm CDT

In this episode of Options Playbook Radio, we are talking about a front spread with calls.You can find this on page 80 of The Options Playbook, on OptionsPlaybook.com, or in the Amazon Kindle version.

In this episode, Brian discusses:

  • A review of last week
  • Chevron (CVX) will announce earnings before the open on 10/28
  • What kind of move can we expect?
  • Setting up the trade
  • Picking the expiration
  • What strikes to use?
  • What is the maximum upside? Risk?
  • What about margin?

Do you have questions that you would like answered on the show? Send them to Brian at theoptionsguy@tradeking.com

Direct download: OptionsPlaybookRadio131.mp3
Category:financial podcast -- posted at: 12:50pm CDT

We are going to look at a backspread with puts this week. You can find that on page 87 of The Options Playbook, on OptionsPlaybook.com, or in the Amazon Kindle version.

Today, Brian discusses:

  • A review of the MRO covered call from last week
  • Making an adjustment based on new outlook
  • Walgreens, which is merging with Rite-Aid, has earnings coming up
  • What can we do with that? A backspread with puts
  • What is the outlook?
  • Setting up the trade
  • What is the risk? Reward?
  • How to stay out of the valley of death

Do you have questions that you would like answered on the show? Send them to Brian at theoptionsguy@tradeking.com

Direct download: OptionsPlaybookRadio130.mp3
Category:financial podcast -- posted at: 11:27am CDT

We are taking a look at covered calls today. If you want to follow along, we are on page 50 in the Options Playbook. You can always follow along on OptionsPlaybook.com, or on the Amazon Kindle edition.

Today, Brian covers:

  • A long-term straddle that we looked at about four weeks ago on the S&P 500
  • A covered call in MRO
  • What is the option chain in MRO?
  • Figuring out the upside
  • What is the cost?
  • What is the outlook?

Do you have questions that you would like answered on the show? Send them to Brian at theoptionsguy@tradeking.com

Direct download: OptionsPlaybookRadio129.mp3
Category:financial podcast -- posted at: 12:22pm CDT

In this episode, Brian and Mark huddle up to answer listener questions. They take on:

  • Question from Yukoner: Do you ever do spreads in LEAPS. Why and how? So I used to trade the LEAPS rather than buy the stock. Is that a good use case?
  • Question from Tradecraft: Is there a correlation between high options OI and options price levels?

Do you have questions that you would like answered on the show? Send them to Brian at theoptionsguy@tradeking.com

Direct download: OptionsPlaybookRadio128.mp3
Category:financial podcast -- posted at: 9:24am CDT

This week we are going to look at a cash-secured put, which you can find on page 48 of the Options Playbook. You can always find it online at OptionsPlabyook.com, or in an Amazon Kindle version. Today Brian discusses:

  • OPEC decided to cut oil production, so oil prices and stocks spiked
  • Looking at Marathon Oil, MRO
  • Where is it trading today?
  • How to put on a cash-secured put in MRO?
  • Why is the timing right to do an oil play?
  • Selecting the expiration
  • Remember that you want to be put the stock
  • Where are you willing to buy the stock? That's how you pick your strike
  • Where is IV right now?
  • What will it cost?
  • What is the maximum cost if you're put the stock?
  • What happens if you're wrong on the strike?
  • How to get more upside? Sell a put to pay for a bull call spread

Do you have a question that you would like to have answered on Options Playbook Radio? You can submit your feedback right on the Options Playbook Radio Facebook page. There, you will also find past episodes, and more from your host Brian Overby.

Direct download: OptionsPlaybookRadio127.mp3
Category:financial podcast -- posted at: 9:30am CDT

Last week we talked about diagonal spreads, which can be found on page 99 of the Options Playbook. You can always find this on the Options Playbook website.

First up, a listener question:

  • Question from Mike - Hello Brian, Love the show. I am curious as to why one would ever use a collar instead of a bull put spread. Am I incorrect in thinking these strategies are identical with respect to risk/reward? Since the put spread will cost less to put on, it seems like the better trade. As an additional advantage, there is no need to tie up the capitol to hold the underlying.
  • If you want to read the blog post Brian mentions, you can find it here.

Next, a review of last time:

  • We were bearish going into earnings in LEN
  • What happened after the paper trade?
  • The gaggle of securities (it started out as a strangle)

Do you have a question that you would like to have answered on Options Playbook Radio? You can submit your feedback right on the Options Playbook Radio Facebook page. There, you will also find past episodes, and more from your host Brian Overby.

Direct download: OptionsPlaybookRadio126.mp3
Category:financial podcast -- posted at: 12:11pm CDT