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The Option Alpha Podcast

Updated 13 days ago

Rank #41 in Investing category

Business
Education
Investing
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At Option Alpha we are devoted to empowering traders with simple, powerful tools supported by world-class research and education. For far too long the options industry has been fragmented, lagging, and unnecessarily complex. By developing industry-first automation technology, enhancing data and information accessibility, and nurturing our thriving community at every level, Option Alpha is changing the way people trade options forever. We’re more than just a software company; we’re leading a movement of traders at every level who are unlocking more freedom through improved and expanded options.

Read more

At Option Alpha we are devoted to empowering traders with simple, powerful tools supported by world-class research and education. For far too long the options industry has been fragmented, lagging, and unnecessarily complex. By developing industry-first automation technology, enhancing data and information accessibility, and nurturing our thriving community at every level, Option Alpha is changing the way people trade options forever. We’re more than just a software company; we’re leading a movement of traders at every level who are unlocking more freedom through improved and expanded options.

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829 Ratings
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Incredible contains

By ludovic19130 - Apr 27 2020
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Hey Kirk, Amazing job. Thank you thank you !!! 📈📈📈📈

Gooooood

By yeah buddy throwaway - Mar 29 2020
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Covered calls are my jaaamm!!

iTunes Ratings

829 Ratings
Average Ratings
759
31
10
13
16

Incredible contains

By ludovic19130 - Apr 27 2020
Read more
Hey Kirk, Amazing job. Thank you thank you !!! 📈📈📈📈

Gooooood

By yeah buddy throwaway - Mar 29 2020
Read more
Covered calls are my jaaamm!!
Cover image of The Option Alpha Podcast

The Option Alpha Podcast

Latest release on May 20, 2020

Read more

At Option Alpha we are devoted to empowering traders with simple, powerful tools supported by world-class research and education. For far too long the options industry has been fragmented, lagging, and unnecessarily complex. By developing industry-first automation technology, enhancing data and information accessibility, and nurturing our thriving community at every level, Option Alpha is changing the way people trade options forever. We’re more than just a software company; we’re leading a movement of traders at every level who are unlocking more freedom through improved and expanded options.

Rank #1: 101: The Ultimate Guide To Profitably Trading Options Full-Time

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Show notes: http://optionalpha.com/show101

I believe that on some level every new trader dreams of trading options full time and not working a regular job. The reality is however, that you're need a lot of capital before you make the leap to full time trading and that means you'll have to learn how to effectively trading options while working your day job. Hard as it may seem at first, working full time and trading options is not that complicated nor is it impossible if you're smart about your time and the strategies you focus on. In today's show I want to cover 10 questions that our community members asked with my answers as to how I suggest working options trading into your busy work schedule. Note also that I also work a full time job as a stay at home dad to two little girls while running our massive community of 60,000+ traders. I've also had to learn to be incredibly efficient with my time actually making trades just like you.

Aug 02 2017

35mins

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Rank #2: 159: How To Build An Options Portfolio With Just $3,000

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Show notes: http://optionalpha.com/show159

This podcast is a long-time coming but one that needed to be done because we get a lot of questions from newbie traders about how to build an options portfolio with a small amount of starting capital. And while we openly suggest that you really start trading with at least $5,000 or more, as you'll hear me say a bunch in this show, we realize that a good majority of new traders want to start with less. That's why in today's show we'll play "pretend" and assume you absolutely want to start trading with just $3,000.

Inside I'll walk through my though process on building out a portfolio that gives you the highest possible chance of success. We'll cover everything from position sizing, ticker selection, strategies to use, what ranges or targets for setting them up, profit taking and stop losses, and much more. The concepts we'll cover are applicable to any portfolio size so don't think or one second that this show is just for small account traders. If you trade a larger account size you can also pick up a lot of great nuggets of information.

Jun 24 2019

54mins

Play

Rank #3: 68: VIX Index - How To Trade Volatility w/ Mark Sebastian from OptionPit.com

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Show notes: http://optionalpha.com/show68

Naturally, if you’ve started trading options for any reasonable amount of time you’ll run across the VIX index. Or as it’s commonly referred to, the “Fear” Index. And while the concept of tracking and trading volatility with the VIX might sound intimidating at first, trust me, it’s not all that complicated and just requires a little common sense.

In today’s podcast, we’ve brought on a very special guest, Mark Sebastian, a former floor trader, hedge fund manager and the guy behind OptionPit.com. What’s great about Mark is that not only does he have a lot of experience as an options trader, but he’s also got a lot of specialized knowledge when it comes to the VIX and volatility products like VXX, UVXY, and VXZ that I know you’re going to love. 

During the show, we’ll talk about the history of the VIX, how the index is priced, how the VIX futures term structure accounts for mean reversion and some simple strategies you can use to trade volatility with a higher probability of success. So, don’t be afraid to dig into this podcast this Halloween - Mark and I have some yummy volatility treats waiting for you (okay I just had to throw that in there given the release date).

Oct 31 2016

50mins

Play

Rank #4: 165: Trading Options? Here Are The 11 "Golden Rules" To Follow

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Show notes: https://optionalpha.com/show165

Personally, I don't like rules. Mostly because I value freedom and flexibility so when someone says that I have to follow the rules I naturally push back. Things that confine me or tell me what to do don't fly well with me. But that only applies to things outside of trading and investing. In the world of investing, and specifically trading options, you need to live by certain rules. Rules that keep you safe and protected from the unknown of the market.

I imagine that the 11 "Golden Rules" I'm going to present in this podcast will cause many of you to push back and challenge their usefulness. Mostly because they'll cause you to trade different than you have in the past, and being different means being uncomfortable. I'm okay with that and I welcome the discussion around them. But don't misinterpret this level of understanding in adoption to also represent flexibility when it comes to these rules. These are "unbreakable" rules for me and should be for you as well.

Oct 07 2019

56mins

Play

Rank #5: 53: The 1 Hour Per Month Options Strategy That Beat The S&P 500 by 24%

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Show notes: http://optionalpha.com/show53

What if there was an options strategy that took just 1 hour per month to implement and actually beat the S&P 500 benchmark index both in performance and with less overall portfolio volatility? What if that one strategy was available to any trader, regardless of your account type or size? 

You see, I believe you work too dang hard for your money and it doesn’t take a fancy financial planner or sophisticated mobile app to help you generate higher returns with less risk. All it takes is less than 1 hour per month. Yes, less time that it takes you to aimlessly scroll through your Facebook or Twitter feed.

Well, you can stop day dreaming because it’s a reality and in today’s podcast episode I’ll walk through the exact strategy that beat the market. No fluff. No smoke or mirrors; just cold hard facts. I’m sick and tired of people trying to tell me that options trading doesn’t work because today’s episode crushes every one of these unsubstantiated myths about trading.

Listen in and if you think this episode would be helpful to someone else, please help us spread the word here at Option Alph by sharing it with them. I mean how often can you share something online that actually helps someone make more money, with less risk? You just might become their new best friend!

Jul 21 2016

24mins

Play

Rank #6: 61: Interview w/ Cameron Skinner - How He Earns 22% Annually Selling Options Every Day

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Show notes: http://optionalpha.com/show61

I’m just going to come right out and say it - today’s show is going to blow your mind. Not because we are talking about some crazy complicated strategy or options pricing model, but because we’re talking about a dead simple system for selling options every day that generates 22% per year since 2009. And what’s so fascinating for me, the host of the show, is how calm and cool our special guest is talking about his strategy. It’s just so mechanical and systematic it’s almost boring (well not for me but maybe some people might think so).

In today’s show I’ll be interviewing an incredible trader, real estate entrepreneur and patriot. You’ll hear how this former Army Officer who served in Iraq in 2003, subsequently awarded a Bronze Star, used his “options” experience in real estate to start selling covered calls. Eventually he transitioned into selling credit spreads on the major indexes and continues to generate consistent income with an annual average return of 22% per year. So yeah, you should listen to today’s show - and of course forward it to at least 3 other people you think need to hear it right now. 

Sep 12 2016

36mins

Play

Rank #7: 135: You Don't Need A Degree In Financial Engineering To Understand How Implied Volatility Works

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Show notes: http://optionalpha.com/show135

Today we'll condense potentially an entire semester of financial engineering into a single podcast episode. The goal being to help completely understand how implied volatility works, why we need it, where it comes from, and how we can profit from it as option sellers. This show is a little longer than normal but I think the time spent walking through the foundational elements of implied volatility and it's impact on option pricing are critical for anyone interested in generating long-term income as an option seller. I encourage you also to listen to this episode multiple times if needed. Enjoy!

Jun 20 2018

45mins

Play

Rank #8: 4: How To Hack The Options Trading Learning Curve In 3 Months

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In this session of The Option Alpha Podcast I'm going to give you a complete step-by-step guide to learning how trade options in 3 months. You'll learn to focus on 1 concept each week for 12 weeks.

Oct 25 2014

24mins

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Rank #9: 90: The Art & Options Strategy Behind Quick "Earnings Trades"

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Show notes: http://optionalpha.com/show90

We're now in the heart of earnings season for the current quarter and with hundreds of companies set to announce their performance, we're presented as options traders with tons of opportunities to profit from the volatility crush that occurs after an announcement. But these fast (and often violent) moves in the underlying stock in the session following the announcement can often scare and confuse investors trading options.

In today's show, I want to walk through my strategy for filtering and finding good stocks to trades, strategies we like to use and how to set them up, as well as my thoughts on exiting trades shortly after the market open. If you've ever wanted to jump in and make some earnings trades, you'll want to tune in and take lots of notes. Don't forget, we've also got a free course and PDF guide to earnings trades available for members inside our education platform.

Apr 24 2017

48mins

Play

Rank #10: 100: The Profit Matrix - The Game-Changing Report On The Best Option Strategies For Any Market

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Show notes: http://optionalpha.com/show100

Not only is today special because we're releasing our newest research report called The Profit Matrix but also because as soon as this show goes live we'll have crossed more than 1,000,000 downloads on the podcast. Crazy coincidence but it's true and very humbling, so thank you to all of you who have supported and listened over the last couple years. In this special show, we're going to talk in-depth about our new game-changing research report in which we analyzed and compiled results from more than 21 million backtested options strategies. Plus, I'll answer the biggest question that came out of this body of work on how we should (or shouldn't) change the way we trade options in the future.

Jun 16 2017

43mins

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Rank #11: 107: Interview w/ Option Alpha Member MACDDaddy & The "Wheel Selling" Options Strategy

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Show notes: http://optionalpha.com/show107

Today I've very excited to bring one of our very own Option Alpha family members on the show, MACDDaddy aka Robert. He's been a member for many years and someone I continue to seek advice from in many areas. During the show we'll dig deeper into the "Wheel Selling" option strategy which has created some fairly long and in-depth forum threads lately and warrants a little more attention from our weekly podcast.

Oct 10 2017

33mins

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Rank #12: 49: How To Profit From The Next Stock Market Crash - 15 Backtested Put Option Strategies

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Show notes: http://optionalpha.com/show49

Do you think that there will be a stock market crash soon? Maybe in the next six months to 1 year?

If you are looking for the ultimate strategy to profit from the next stock market crash, then today’s latest podcast is for you. We went to 2007 and backtested 15 different put option buying strategies to see which combination produced the most profitable results during the last market crash.

Honestly, we’re due now for a serious correction or recession soon, so this show might just come at the best possible time. Recall that we did the hard research into “How Often Markets Crash” in Show 15 and found that 21 times since 1928 stocks fell at least 20%. That’s essentially once every four years, and it’s been eight years since the last significant market correction.

Naturally, we know that the best way to play a stock market crash, if we knew one was coming, is by purchasing put options. But which put options do you buy? How far out to you go for the expiration day? What strike prices work best? Are there some general trading rules we should follow?

Today, we'll answer all of these questions and more during our first little sneak peek inside the backtesting research that we'll be launching later this year.

Jun 13 2016

23mins

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Rank #13: 138: The "Expected Probability Paradox" For Options Traders

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Show notes: http://optionalpha.com/show138

I'm going to go out on a limb and publicly declare that this podcast will be one of our top 3 to 5 shows we ever recorded. Aggressive and overly confident, maybe - but I have absolutely no doubt this podcast episode will be a game-changer for hundreds of thousands of options traders. The expected probability paradox for options traders, as I have coined this problem, is one of the most understood aspects of option selling and premium strategies. The root of this problem starts with the misunderstanding of initial strike price probabilities, perfect pricing of option spreads, and the impact of implied volatility on when rates and drawdowns. On today's show, we are going to dive deep into the three main areas of the expected probability paradox to help you understand why option selling, even in its purest form, even if you cannot find perfect pricing, still outperforms the market. We'll also talk about why laddering in some additional active management strategies such as profit-taking and making adjustments or rolling trades helps stabilize portfolios and increase returns. Put simply, skip this show at your own risk.

Aug 06 2018

53mins

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Rank #14: 74: How To Trade Straddles & Strangles In Small Brokerage Accounts

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Show notes: http://optionalpha.com/show74

Most newbie option investors start trading with small brokerage accounts. Whether by choice or necessity, the average investor opens up their account with approx $10,000 according to most brokers. And while this isn't a small amount of money by any means, it does limit your ability to trade more aggressive options strategies like straddles and strangles.

In today's podcast, I want to help you understand how you can still trade these more aggressive and profitable options strategies (synthetically with small tweaks) even if you've got a small account or are trading in and IRA. Specifically, I'll answer a bunch of common questions I get from new PRO members including; What if I can't trade straddles and strangles? How do I adjust the trading alerts to fit my portfolio? Should I scale position sizes down or up (# contracts)? What about spread width - go wider or more narrow? What if the commissions are eating too much into the profit after closing at 50%?

Sure, it might take a little more time to grow and mature an account but don't jump ahead or try to "game" the system. Eventually, the math and probabilities always play out the way they should, and you've got to learn how to build profitable strategies today if you plan on still being around in five or ten years from now.

Dec 17 2016

32mins

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Rank #15: 44: Do You Know Which Options Greeks Are The Most Important?

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Show Notes: http://www.optionalpha.com/show44

Options traders often reference the "Greeks" which include delta, gamma, vega and theta of their underlying positions as a way to measure the sensitivity of an option's price to market movements.

And while looking at option greeks can be helpful, there's also a big misconception about them... one that trips a lot of traders up early on in their career.

Most traders falsely assume that the "Greeks" are part of an options price - but they are NOT part of option pricing. Option greeks are used only to estimate what an option price might do reacting to specific market changes.

Seems like a simple error but the resulting consequences could be the difference between winning and losing on your next trade.

In today's show, I'll run through each for the four major options greeks and tell you which ones you should be focusing on as you plan your next trade and how checking the greeks can help with choosing the right options strategy.

May 11 2016

28mins

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Rank #16: 60: Warren Buffett's $5 Billion Dollar Options Trading Strategy That Everyone Ignores

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Show notes: http://optionalpha.com/show60

What if I told you that Warren Buffett, yes that one, is actually just an options trader in disguise? Actually, he’s not disguising anything since his entire strategy and philosophy is all publicly available and linked below. But, that the $5 billion dollar options trading strategy he is using right now has the exact same core methodologies that we use here at Option Alpha, i.e. option selling.

Unfortunately, this strategy and business setup is not commonly talked about in the media. Everyone ignores the 50,000 short put options he sold on KO or the 3-month short puts he sold before acquiring Burlington Northern Santa Fe. They are big trades that tell us a lot about the way he uses options but the media won’t cover those because it’s not “mainstream” enough to reach the masses. Lucky for you, we’re covering it today for you.

In today’s show, I’ll help you understand why his most profitable business, which grew from $41 billion to $88 billion, is the insurance business and how you can apply the same principles to your own investment portfolio. Plus, I’ll walk through his biggest option trade that occurred during the height of the 2008 market collapse in which he sold short put options on 4 major market indexes around the world. If this show is even remotely helpful today, please consider sharing or sending it to just one friend or colleague you think might benefit from listening.

Sep 05 2016

32mins

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Rank #17: 69: Is Your Options Strategy Scalable? 3 Tips for Growing A 6-Figure Trading Account

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Show notes: http://optionalpha.com/show69

Regardless of your current account size or trading experience level, you should be putting some serious thought into how you plan on scaling your options strategy over the next few years. Especially if you’re looking to generate a consistent monthly income from options trading, you probably realize that having $10,000 in your account won’t be enough to generate profits to replace your current job or salary - or if this was a shock to you, sorry for the reality check but it’s true. Still, you need to plan ahead for the changes that will accompany having more cash.

In today’s show I’ll walk through the 3 biggest tips I have for anyone who’s looking to grow their 6-figure account. As with any regular business, the products and strategy for trading are going to change and shift as you grow. The core principles remain the same (i.e. selling options, taking advantage of high volatility, etc.) but the way you could about capturing profits and utilizing capital will need to be tweaked so that you’re always trading options as efficiently as possible.

Nov 07 2016

19mins

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Rank #18: 79: How To Trade Calendar Spreads – The Complete Guide

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Show notes: http://optionalpha.com/show79

Today's podcast is all about learning how to trade calendar spreads. And while newbie traders might find them a little difficult to understand conceptually at first, I think you'll find our talk today to be incredibly helpful as we break down these time spreads from start to finish. During the show, I'll walk through setting up and building calendar spreads, the impact of implied volatility and time decay, how to adjust and exit as well as the best market setups for these low IV option strategies.

Jan 16 2017

43mins

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Rank #19: 38: Insider's Guide to Options Trading Taxes Part 1

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For years, I've had members ask me about options trading taxes, ways to reduce your taxes, the best legal structures, international trading taxes and hundreds of other questions on the subject.

Recently I decided to survey just our PRO and ELITE members to find out what questions they wanted specifically answered when it came to trading taxes. What were the hot-button issues they had and subsequently never found an answer to?

After hundreds of responses I compiled a long list of questions I would get answered for you...

Today we're releasing Part 1 of a three-part series all about options trading taxes. And to help facilitate the discussion we've invited CPA Brandon Hall on the show we specializes in securities taxation to get professional answers.

Once we are done with this mini-series we'll also be compiling and releasing a guide on trading taxes to our members. Plus, if you have any follow-up questions you'd like Brandon to answer or be included in our next show, please add them to the comment section below.

http://optionalpha.com/show38

Dec 11 2015

44mins

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Rank #20: 73: We Examined 8 Short Strangles For Returns & Margin Requirements

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Show notes: http://optionalpha.com/show73

What does great pricing look like when trading short strangles? Is it collecting a certain raw dollar amount? Or a certain percentage of the stock price? Without a doubt, these are tough questions to answer for newbie options traders and hard to answer without some context. And while comparing pricing on different risk defined option trades, like credit spreads and iron condors, is pretty straight-forward and easy, it can become difficult to recognize great pricing with undefined risk option strategies like short strangles.

In today's podcast, I examined eight different short strangles across a mix of ETFs and individual stocks. I recorded everything from the current stock price and implied volatility ranking to the premium collected and the margin required for each one lot strangle. My goal? Discover which option trades had the best pricing on a relative basis given that every short strangle we analyzed had the same 70% probability of success.

Dec 05 2016

19mins

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180: The Best Covered Call Management Techniques

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Show notes: http://optionalpha.com/show180

You've got your prized covered call setup and it's working in your account - now what? How do you manage or adjust the position in different market scenarios? Lucky for you, we are going to review the best-covered call management techniques on today's podcast. And if you think this show is just for stock traders, you'd be wrong, because proper covered call management could be a lifesaver for options traders who get assigned and are forced to deal with stock.

May 20 2020

35mins

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179: LEAPS Option Contracts - A Complete Guide For Traders

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Show notes: http://optionalpha.com/show179

You've got your prized covered call setup and it's working in your account - now what? How do you manage or adjust the position in different market scenarios? Lucky for you, we are going to review the best-covered call management techniques on today's podcast. And if you think this show is just for stock traders, you'd be wrong, because proper covered call management could be a lifesaver for options traders who get assigned and are forced to deal with stock.

May 15 2020

46mins

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178: Box Spread Basics for Options Traders

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Show notes: http://optionalpha.com/show178

Box spreads and arbitrage strategies are often synonymous with one another and referenced interchangeably in the options trading community. And after all, who doesn't want a risk-free way to earn money right? But like all things that seem too good to be true, box spreads carry some serious risks if you're not careful in how you set them up. Today's show then focuses exclusively on box spread basics for options traders.

May 09 2020

44mins

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177: The Trader's Guide to Index Options

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Show notes: http://optionalpha.com/show177

Index options have continued to grow in popularity. Potentially because they are easy to use, available in highly liquid markets, have favorable tax treatment in some cases, and offer a simple settlement process. Therefore, we've dedicated an entire show to help you understand what index options are, how they work, how they are different from equity options, and what you need to be aware of if you decide to start trading them in your portfolio.

Apr 22 2020

35mins

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176: Protective Put Strategy Researching Findings

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Show Notes: http://optionalpha.com/show176

Hedging stock positions can be tricky business. One of the most common schools of thought is to use a simple protective put strategy whereby a stock investor would simply purchase a long out-of-the-money put option to act as "insurance" in case the stock fell. Sounds logical but we're skeptics here at Option Alpha and so we went on a hunt to see what research and data say about the protective put strategy and it's effectiveness at protecting or hedging stock positions.

Apr 15 2020

38mins

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175: The Impact of Volatility On Options

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Show Notes: http://optionalpha.com/show175

Stock trading is easy to understand conceptually because it's one-dimensional. Either the stock goes up or it goes down. Clear and simple, at least from a trading and profit or loss perspective. Options trading, however, is multi-dimensional. Price, time, and volatility all impact the value and price of an options contract. On today's show we're selectively choosing to highlight the impact that volatility has on options because, as we've seen in the 2020 market collapse, if you're not managing volatility, it could become your worst nightmare.

Apr 08 2020

51mins

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174: We Stopped Trading Earnings After We Saw This New Research

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Show notes: http://optionalpha.com/show174

Earnings season comes around four times a year for stocks, and as traders, we've always loved the idea of trading these events for the crush in implied volatility and quick potential moves in option strategy positions. However, after analyzing 1,546 earnings events across 40 underlyings over 10 years we decided to stop trading earnings events completely. In today's podcast, I'm going to walk through the research on earnings moves, and how different options strategies performed under various setups and conditions.

Mar 31 2020

1hr 5mins

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173: The Misbehavior of Markets - Exclusive Interview w/ Co-Author Richard Hudson

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Show notes: http://optionalpha.com/show173

We're excited and honored to have a very special guest this week on the podcast, Richard Hudson, co-founder of the London and Brussels-based Science Business Publishing Ltd. He's the co-author of The (mis)Behavior of Markets: A fractal view of risk, ruin & reward which he wrote with famed Yale/IBM mathematician Mandelbrot. Our discussion frankly should be required listening for any investor and was recorded in January of 2020 immediately preceding the market crash that occurred just weeks later.

Mar 27 2020

1hr 19mins

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172: Mastering Covered Calls (Free Audiobook)

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Show Notes: http://optionalpha.com/show172

This week on the podcast we're doing something a little different and turning this podcast episode into a full-blown audiobook. Today I'm recording the newest book we released entitled "Mastering Covered Calls". I encourage you to pick up your copy now, did we mention it's 100% free, and follow along as you listen to this audiobook. We've included dozens of charts, tables, and graphs to help as part of this new book and we hope you enjoy listening or reading your copy.

Mar 21 2020

2hr 1min

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171: Covered Calls - Top 3 Performance Insights From New Research

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Show notes: http://optionalpha.com/show171

Today on the show we welcome special guest, Rob, who's the co-author on our recent research report on Covered Calls. On the show this week we go over the top three performance insights we learned from our massive study on Covered Call Performance. If you trade covered calls right now or plan on using them at any point when dealing with assigned stock, then this show should be required listening.

Mar 14 2020

29mins

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170: The 5 Critical Factors for ANY Trading Strategy

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Show notes: http://optionalpha.com/show170

Factor-based strategies and trading systems are all the rage these days. We've been promoting these for many years now but it seems that more and more investors are catching on. As a result, we wanted to cover the 5 critical factors that your trading strategy should have. To us, these serve as the foundational elements for choosing which investing vehicles, indicators, or systems most appropriately fit your portfolio.

Dec 31 2019

24mins

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169: Interview w/ Kevin Davitt - Former Market Maker & CBOE Senior Instructor

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Show notes: http://optionalpha.com/show169

This week we're very excited to share our exclusive interview with Kevin Davitt, a special guest with tons of experience not only as a former market maker, but as the Senior Instructor for The Options Institute at CBOE. As many long time listener's know, we are highly selective with people we choose to bring on as guests for interview and Kevin raises the bar yet again for us with an amazing discussion. During the show we'll touch on everything from his time as a market maker, transitioning to the retail side of trading, though processes on managing positions and controlling risk, and so much more. You're going to love this candid and wide-ranging discussion as much as we enjoyed the time with Kevin.

Nov 30 2019

1hr 3mins

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168: The 27 Biggest Options Trading Fears

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Show notes: https://optionalpha.com/show168

Did you know that fear has nothing to do with logical or cognitive reasoning? It's actually a completely physical response that originates in our body. We fear to be wrong because that might mean we will be alone and people will leave us, which means that we won't be part of a tribe or community, which means it'll be dangerous and we might die. Okay, that's extreme but taken to its logical conclusion we fear because of conditioning we've had as humans for thousands of years to survive on a physical level.

As options traders, we have fears about trading that manifest in dozens and dozens of ways. Today, as we circle the Halloween season, I wanted to tackle the 27 biggest options trading fears that we hear in our community. And, more importantly, how to overcome and conquer these fears. Just saying them out loud and talking through them together might just be what you need to set yourself free and on the right path as a trader. 

Nov 01 2019

47mins

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167: Options Trading Profit Targets - When Should You Break The Rules?

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Show notes: http://optionalpha.com/show167

Oh, profit targets. The double edge sword of confusion for many traders. Take profits too early and you feel like you left money on the table. Too late and you kick yourself because the trade could have moved against you. And because we've been getting so many questions on when and why we've let positions go beyond traditional profit targets, we wanted to record today's show to talk about the top 3 market setups that would lead us to break profit-taking rules. Yes, you heard me right, and longtime members have known this for years, but we don't always take profits at 25% and 50%. Shocking? Shouldn't be because our Profit Matrix research 2 years ago laid the foundation for holding positions generally longer towards expiration.

Oct 24 2019

22mins

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166: Understanding The Put Call Ratio The Right Way

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Show notes: https://optionalpha.com/show166

When it comes to market signals and timing indicators, the Put Call Ratio is one that naturally jumps to the top of many lists. Because the indicator looks at volume in both put and call options, the logical conclusion is that we can interpret the ratio to signal us from an impending top or possible market bottom. But, is that really the case, and if so, how should we use Put Call Ratios moving forward in our analysis. All this and more on this week's podcast episode.

Oct 18 2019

22mins

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165: Trading Options? Here Are The 11 "Golden Rules" To Follow

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Show notes: https://optionalpha.com/show165

Personally, I don't like rules. Mostly because I value freedom and flexibility so when someone says that I have to follow the rules I naturally push back. Things that confine me or tell me what to do don't fly well with me. But that only applies to things outside of trading and investing. In the world of investing, and specifically trading options, you need to live by certain rules. Rules that keep you safe and protected from the unknown of the market.

I imagine that the 11 "Golden Rules" I'm going to present in this podcast will cause many of you to push back and challenge their usefulness. Mostly because they'll cause you to trade different than you have in the past, and being different means being uncomfortable. I'm okay with that and I welcome the discussion around them. But don't misinterpret this level of understanding in adoption to also represent flexibility when it comes to these rules. These are "unbreakable" rules for me and should be for you as well.

Oct 07 2019

56mins

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164: The 2 Major Problems With Buying Options During Low IV Markets

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Show notes: http://optionalpha.com/show164

Since we are option sellers and our edge comes from selling overpriced options out into maturity it's natural to assume that if we want to sell options when IV is high that buying options during low IV markets is a way to make money in the other direction. We get it and understand the rationale argument. When IV is low, and option premiums are cheap, you can and should buy options because they are cheap right? Not so fast bargain-buyer.

This type of thought process and strategy, low IV option buying, has two major problems. And we don't use the word "major" lightly here. Each problem with option buying systems is so important that the probability of getting both problems right or solved is for all intensive purposes, impossible on a long timeline. Curious to know what these major issues are? Let's dive into today's show and find out.

Sep 30 2019

24mins

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163: The 5 Month "Grind" Following XLE Short Put Option Assignment

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Show notes: http://optionalpha.com/show163

This was a long trade. Maybe not the longest trade we've been involved in, but certainly one of the top ones as this short put option assignment lasted over 5 months. For most options traders looking to make a quick buck, this trade stretches their patience and conviction far beyond a reasonable level. Still, I think that today's case study is important to hear because it proves critical concepts to how we think about trading here at Option Alpha. And what better way to prove something than to show you how we managed the entire position, start to finish, with real money.

Sep 27 2019

41mins

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162: The Top 8 Investor Biases That Cloud Our Judgement When Trading

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Show notes: http://optionalpha.com/show162

It might seem that the markets are a game of price, and while that might be mostly true, what they are is really a game of emotions. With enough self-awareness, the "average" investor can do incredibly well. Better than many sophisticated investors.

There's so much to be said about controlling your emotions and recognizing biases that we could spend hours upon hours dissecting each one. I prefer a more optimized approach which is why I decided to do a podcast specifically on the top 8 biases that investors fall victim to. Once you learn to recognize them, you can then process the emotions behind the scenes so that it doesn't interfere with your trading.

Aug 29 2019

31mins

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161: Interview w/ Kevin Smith & Tavi Costa of Crescat Capital

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Show notes: http://optionalpha.com/show161

As many of our long-time listeners know, over the years I've become increasingly protective and selective with the guests that I invite to come on the show. Truth be told, we get pitched weekly for people looking to expand their reach. Somethings it's just so off the wall and disconnected to trading that I have to laugh. But this isn't the case with today's guests which I'm super excited to bring on for an interview.

Kevin Smith and Tavi Costa both generously gave their time to join me for an incredible look inside their philosophy and macro models at Crescat Capital, a hedge fund based in Denver Colorado. This is an episode you won't want to miss. In fact, I encourage you to listen to it at least twice to make sure you pick up on all the little details you might have skipped the first time around.

Jul 22 2019

44mins

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Incredible contains

By ludovic19130 - Apr 27 2020
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Hey Kirk, Amazing job. Thank you thank you !!! 📈📈📈📈

Gooooood

By yeah buddy throwaway - Mar 29 2020
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Covered calls are my jaaamm!!