Options Playbook Radio

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 CST

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 CST

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 CST

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 CST

We have recently been doing a lot of long spreads, and then adjusting based on market conditions. If you want to follow along with The Options Playbook, you can find long spreads on page 60, and long strangles on page 72.

Today, Brian discusses:

  • A review of last time
  • News since the last episode
  • Putting on a position because of the chart
  • Looking at selling aput below the 2100 strike
  • What will it cost?
  • What is the current position?
  • We now have a gaggle of securities
  • Putting on a diagonal spread in LEN

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: OptionsPlaybookRadio125.mp3
Category:financial podcast -- posted at: 12:11pm CST

For the last few weeks, we have been discussing long put spreads, which can be found on page 62 of The Options Playbook. You can always follow along online on OptionsPlaybook.com.

This week Brian discusses:

  • A reivew of the last two trades he covered
  • What has the market done since?
  • Where does it leave the spread?
  • What do we do now?
  • How will we reduce risk?
  • Setting up the trade
  • When do we close out?
  • Setting up a new trade
  • What is the outlook?

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: OptionsPlaybookRadio124.mp3
Category:financial podcast -- posted at: 11:49am CST

Continuing with the long SPX put spread that we put on last week, Brian looks at current market conditions and decides if and how to make any adjustments. If you want to follow along in the Options Playbook, this is on page 62. You can always find this information on OptionsPlaybook.com.

This week Brian discusses:

  • What happened after the Fed meeting last week?
  • A recap of last week's strategy
  • What did the market do?
  • Based on how the market moved, how do we make an adjustment?
  • Picking the strikes
  • What is the risk? Cost basis?
  • What are the possibilities within the strikes of the butterfly?
  • Given where the market is, what should we do?
  • What is the outlook?
  • What is the adjustment

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: OptionsPlaybookRadio123.mp3
Category:financial podcast -- posted at: 12:21pm CST

This week, we are moving past earnings to look a the overall market. To do this, we'll try a long put spread, which is on page 62 of The Options Playbook. You can always find the information online at OptionsPlaybook.com.

Today, we discuss:

  • A review of last week's bull call spread on FL
  • What was our forecast?
  • What happened?
  • Now that earnings are mostly over, let's look at the general, overall market
  • Setting up a long put spread in the S&P 500
  • Picking expriations: why weekly options over standard options?
  • With these expriations, we are selling more time premium that we are buying
  • Picking strikes: where is the SPX right now?
  • Will Labor Day impact the spread?
  • What was the net cost? Risk?
  • Don't forget about commissions!
Direct download: OptionsPlaybookRadio122.mp3
Category:financial podcast -- posted at: 11:17am CST

To follow along, you can find long call spreads on page 60 of the Options Playbook. You can also play along online at OptionsPlaybook.com In this episode, Brian discusses:

  • A review of last week's episode featuring TIF
  • What happened since putting on the TIF paper trade?
  • Moving on to FL, which reports earnings tomorrow, August 19
  • Where is the long straddle trading on the options expiring on August 19?
  • What is the outlook on FL?
  • Setting up the trade
  • What is the risk? Reward?
Direct download: OptionsPlaybookRadio121.mp3
Category:financial podcast -- posted at: 4:39pm CST

This week Brian takes a look back at his previous earnings trade on PCLN. What went right? What went wrong? Tune in to this episode of Options Playbook Radio to find out.

Have a question for Brian? He's happy to answer them directly via the TradeKing Facebook Page - https://www.facebook.com/tradeking.

Direct download: Options_Playbook_120_final.mp3
Category:financial podcast -- posted at: 11:34am CST