Options Playbook Radio

As promised last time, we are looking at one off trades. You can find this in the back spreads section of The Options Playbook, on OptionsPlaybook.com, or in the Amazon Kindle version.

Specifically:

  • How to protect ourselves around the election
  • How do back spreads work?
  • What are we likely to gain?
  • What are we likely to lose?
  • What if we ride until expiration?
  • What is the likelihood of a net credit?
Direct download: Options_Playbook_142_final.mp3
Category:financial podcast -- posted at: 9:19am CDT

As promised last time, we are looking at how to manage positions, specifically rolling positions. You can find this in the appendix of The Options Playbook, on OptionsPlaybook.com, or in the Amazon Kindle version.

Specifically:

  • What does rolling a covered call actually mean?
  • When do you want to roll?
  • When do you NOT want to roll?
  • What are we doing if we roll up and out?
  • What if we just go out, not up?
  • What if we go up, not out?
  • Doing things quickly is key
  • What is the likelihood of assignment?
Direct download: OptionsPlaybookRadio141.mp3
Category:financial podcast -- posted at: 1:05pm CDT

As promised last time, we are taking a deeper dive into covered call writing. You can find this in the beginning section of The Options Playbook, on OptionsPlaybook.com, or in the Amazon Kindleversion.

Specifically:

  • Underlying. What stocks make the best candidates for covered call writing?
  • Volatility: It's like Goldilocks...not too much, not too little.
  • What can we do in AAPL? BAC?
  • Earnings impications for timing
  • How far out is the right amount?
  • When to roll?
Direct download: OptionPlaybookRadio140.mp3
Category:financial podcast -- posted at: 12:10pm CDT

In this episode, Brian takes on listener questions, including:

  • Question from Choas - Brian, as a beginner, I have done quite a bit of research on the subject of options. Now of course, I would start by doing the right thing - that is writing a covered call on one of my long positions. The problem I am having, believe it or not, is not knowing the direction of the stock or the expiration, the problem is more basic - not knowing which transaction to choose. As it appears, very little is said about buying to open, buying to close, selling to open and selling to close. These terms are essential in order to communicate the right information. I would therefore appreciate it if you took a few moments or your time and explain each step, and use examples to clarify. Your presentations are fabulous and I have learned a great deal of theory from you. Thank you
  • Question from Goldmaker - I sold a put on a specific stock with a 115 strike price, that was going to expire next week. The stock a gone below, down to 113.48, and I am prepared to take the stock. It was my understanding that the stock would be put to me if a stock went below 115. Right now, the option has not been exercised and I have not been assigned. What action do I do to make them give me the stock at 115?
Direct download: OptionsPlaybookRadio139.mp3
Category:financial podcast -- posted at: 1:44pm CDT

We dug through the archives to bring you the very best of Options Playbook Radio.

Direct download: BestOfOPR122216.mp3
Category:general -- posted at: 11:05am CDT

In this episode of Options Playbook Radio we are covering a long butterfly spread with puts. You can find this on page 104 of The Options Playbook, on OptionsPlaybook.com, or in the Amazon Kindle version.

Specifically:

  • A review of last week's trade
  • What was the sentiment?
  • What was the set up?
  • What was the cost?
  • What happened since we put on the trade?
  • Rolling this into a short put spread
  • Don't forget about volatility!
  • How do we roll this?
  • What is the new position?
  • What is the cost?
  • Beware of over trading
Direct download: OptionsPlaybookRadio138.mp3
Category:financial podcast -- posted at: 10:02am CDT

In this episode of Options Playbook Radio we are covering a put butterfly spread. You can find this on page 104 of The Options Playbook, on OptionsPlaybook.com, or in the Amazon Kindle version.

Brian covers:

  • A review of the last few weeks
  • What happened at the OPEC meeting?
  • What resulted in the market?
  • Butterflies like time decay and decreases in volatility - IF you are correct on your forecast
  • Where is MRO now?
  • What does that mean for our positions?
  • What could happen next?
  • Don't discount volatility
  • Setting up a new trade in the S&P 500 Index
  • Picking strikes and expiration date (it's a Monday!)
Direct download: OptionsPlaybookRadio137.mp3
Category:financial podcast -- posted at: 2:49pm CDT

In this episode of Options Playbook Radio we are covering a call butterfly spread. You can find this on page 102 of The Options Playbook, on OptionsPlaybook.com, or in the Amazon Kindle version.

Brian covers:

  • A review of the last strategy
  • Taking advantage of the OPEC meeting and the ensuing oil volatility
  • Putting on a butterfly in MRO
  • Picking the expiration and the strikes
  • What will it cost? What is the upside? Breakeven?
  • What is our outlook?
Direct download: OptionsPlaybookRadio136.mp3
Category:financial podcast -- posted at: 12:30pm CDT

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