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Options Boot Camp

Updated 9 days ago

Business
Investing
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Options Boot Camp is designed to help get you into peak options trading shape by teaching you options trading inside and out, basic to complex. Listeners can even submit their own options questions to be answered on the show.

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Options Boot Camp is designed to help get you into peak options trading shape by teaching you options trading inside and out, basic to complex. Listeners can even submit their own options questions to be answered on the show.

iTunes Ratings

45 Ratings
Average Ratings
34
4
3
2
2

Keep the boot camp alive!!

By ElkTrout77 - Apr 23 2019
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Excellent content guys! Thanks for all of your effort putting this together. But don’t quit on us now...keep the content coming!!

Very Educational

By Allen_tpa - Mar 31 2014
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Great show. Very educational and easy to understand. Keep up the good work!

iTunes Ratings

45 Ratings
Average Ratings
34
4
3
2
2

Keep the boot camp alive!!

By ElkTrout77 - Apr 23 2019
Read more
Excellent content guys! Thanks for all of your effort putting this together. But don’t quit on us now...keep the content coming!!

Very Educational

By Allen_tpa - Mar 31 2014
Read more
Great show. Very educational and easy to understand. Keep up the good work!
Cover image of Options Boot Camp

Options Boot Camp

Latest release on Jan 01, 2020

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Options Boot Camp is designed to help get you into peak options trading shape by teaching you options trading inside and out, basic to complex. Listeners can even submit their own options questions to be answered on the show.

Rank #1: Options Boot Camp Episode 3: Buying Options

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BASIC TRAINING - BUYING OPTIONS

  • Buying Options, with special guest Joe Burgoyne from the Options Industry Council.
  • Benefits & Downsides of buying options.
  • The Greeks most relevant to novice options buyers.
  • Bullish Example: Buying a call
  • Bearish/Defensive Example: Buying a put.
  • Common options buying mistakes: Buying OTM options vs ATM/ITM options, Intrinsic vs. Extrinsic value, Loading up before earnings.

ROLL CALL Mark and Dan sit down with this episode's guest Benny Joseph to discuss the Zecco mobile app. They cover a wide range of topics including:

  • Can it execute options orders?
  • Can you access the greeks of your position via the mobile app?
  • Can you execute complex, multi-leg spreads via the mobile app?
  • What features of the Zecco mobile app set it apart from the rest of the pack?
  • What has the feedback been since launching this new app?

MAIL CALL Mark and Dan answer questions from Zecco's Facebook community including:

  • From Arsalan: If I buy a call option and when it is time to exercise it, will that be done automatically (from the strike price or by the cost basis price, which would be the premium+strike?) or will I need to do something, as well as if I don't have the buying power to exercise the option, what happens, can I just have it buy and sell the stock right then and there and just have the profit.
  • From Mike: Is Delta a measure of how much the option moves in relation to the stock? Example. A delta of 0.7 would mean if the stock moves 10%, the option would move 7%?

Apr 19 2012

1hr 4mins

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Rank #2: Options Bootcamp 63: The Proper Way to Trade Covered Calls

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Options 101: Our topic today was inspired by a listener question.

  • Question from Mark Davis: Hello, I am a new listener to options bootcamp and am currently on Ep. 4. There was a mention of using covered calls to generate a "dividend." I am having trouble tracking down more information on this. Being still new to all of this I am hoping to get a clearer picture of how it works. How far out on expiration should I look and how do I figure the strike price? Thanks!

Mail Call: Even more listener questions and comments

  • Question from Robert Kornacki: I would like to use strategy regarding naked puts. If the naked put is far out of money what strategy could I use to protect myself. Could I use some type of order in case it was getting close to naked put strike price. Thanks
  • Question from Dmitry Shesterin: What happens to LEAPs for tickers that get delisted before expiration?
  • Question from Fred: I read Natenberg options volatility and pricing twice now and I have also set up paper trading accounts. But I am stuck going forward in my options progression. I do not want to trade using the greeks formula. But I want to spec on crude futures intraday using options. What should I do? Should I make more SIM trades until I figure it out? Or am I just too ignorant to trade options?
  • Question from Jack Rieger: Do you have any specific strategies near or on expiration to profit from theta decay?
  • Question from Bobby: How long did it take you to become comfortable trading credit spreads? Also what is my max loss when trading a credit spread?
  • Question from from Tor: Hello. I am (restarting) my options trading on a shoestring; any thoughts on mini-options? Thanks.
  • Question from Fred (#2): Is it my imagination or do options traders trade more markets than futures traders do? Is that a good practice? Is it good to look for multiple markets when trading options? Should I expand my horizons?

Jul 29 2016

58mins

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Rank #3: Options Bootcamp 62: Selling Puts Revisited

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Basic Training: Short Puts Revisited

  • Want a complete overview of selling puts? Check out Options Boot Camp episode 4 from May 7, 2012.
  • New study: "An Analysis of Index Option Writing with Monthly and Weekly Rollover," written by Oleg Bondarenko, professor of finance at the University of Illinois at Chicago, and sponsored by CBOE. It is.the first comprehensive study to examine strategy benchmark with traditional stock, bond indexes incorporating weeklys options.
  • CBOE Russell study "Analyzing Russell 2000 Index Options-Based Benchmark Indexes Designed to Provide Enhanced Yields and Risk-Adjusted Returns." CBOE announced the release of a new study that examines six benchmark indexes that invest in Russell 2000 Index (RUT) options and compares their performances with those of traditional benchmark stock and bond indexes. This is the first comprehensive study that examines the performance of multiple options-strategy benchmark indexes that incorporate Russell 2000 Index options. Written by Mark Shore, an adjunct professor at DePaul University's Kellstadt Graduate School of Business, and sponsored by CBOE.

Mail Call: Listener questions and comments

  • Question from QKT - If i sold a $1 strike put with a current trading price of $.50 and then the stock goes to $5-what happens and what is my risk? How do I look at expiration? Can my puts be exercised against me?
  • Question from Nick S. -I am thinking of a cool new strategy that I haven't seen listed online before. It effectively involves buying an iron butterfly (one of Marks favorite strategies) and then selling an extra put on the downside leg. You would select your strike at a price where you are comfortable buying the stock should it drop. This has the obvious benefit of reducing your initial outlay for the position. However, unlike a naked short, put you have the added cushion of the long straddle to help protect you on the downside and lower your effective break-even on the downside.
  • Question from AJ M. - I have a question for the drill instructors. I hope you guys can calm my frayed nerves over this DOL thing. What exactly is going on? Am I not going to be able to sell calls in my IRA anymore? Since the vast majority of my assets are in retirement accounts this would be a HUGE hit to my savings. Please tell me this is not the case. Is there anything I as a retail stock and options trader can do to help prevent this? What if I open an international trading account? Would that do the trick? Help - I need the drill instructors to talk me off the ledge.

Apr 19 2016

49mins

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Rank #4: Options Bootcamp 53: Income Trade Adjustments

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Options 101: Income Trade Adjustments

  • An overview of income trades: Covered call, short put, short straddle, etc.
  • What do we mean by adjustments? When to or not to adjust?
  • Previous episodes that will be helpful: Options Bootcamp 41: Advanced Adjustments & Options Bootcamp 40: Trade Adjustments.
  • Basic adjustments, partial adjustments and adjusting into spreads.

Mail Call: Listener questions and comments

  • Comment from Dmitry Shesterin - @Options There is no V in the Greek alphabet, so how come Vega is considered a "Greek"? Who started this madness?
  • Question from Brian Collamer - Do OTM options decay the fastest at 60-70 days and then kind of flatten out?? Great show, wish it was longer! Thanks, Brian
  • Question from Charles Patterson - Is it accurate to describe delta as the probability of an option expiring in the money?
  • Question from Rohan - Do you think it is viable for an active retail trader to become a professional retail trader using primarily the freely available tools from OX and other retail brokers? How viable is that in the current environment? Would I always be at a disadvantage from the pros picking me off? Is this just a pipe dream? How much would you say the average pro trader needs to make to be viable? Thanks again for all of the great programs you guys have put out for free.
  • Question from AVG - I heard Dan Passarelli talking about Goldman telling people it's not worth it to sell S&P puts anymore. Do you guys agree with that sentiment?

Feb 02 2015

51mins

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Rank #5: Options Bootcamp 4: Selling Options

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Options Bootcamp 4: Selling Options

Basic Training: Turning to the dark side! It's time to learn how to sell options. Why sell options? Time decay and theta. Collecting theta, instead of paying theta, turning an enemy into a powerful ally.Example: The Naked Call The Naked Short Put

Options Drills: The Covered Call

Roll Call: Mark and Dan sit down with this Zecco Trading's President Michael Feser, to discuss Zecco in 2012. Given the difficulty for new retail traders in the last year, what can we see now, a full quarter into the new year? What issues may investors need to be cognizant of before coming into the market this year? Explaining the success of Zecco Share.
Mail Call: Facebook questions from the Zecco community.From Chad: What is the difference between a married put and a covered call? From Austin: I have an IRA account which is approved for basic options strategies. My investment objective is to preserve capital and generate additional income while remaining risk adverse. What basic strategies can I use in this situation?

May 07 2012

58mins

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Rank #6: Options Bootcamp 74: Trading Options in a High Volatility Environment

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Basic Training: The Return of Volatility!

  • VIX is not dead.
  • VIX jumped from 13.99 on 2/2 to 38.30 on 2/5, and 46.34 on 2/6.
  • What are you thought on the recent resurgence of volatility in the marketplace?
  • Do you think this is a temporary aberration or have we transitioned into a new volatility regime?
  • What is the impact of higher volatility on options strategies? What is the impact of this change for options traders?

Mail Call: Options Flashpoll

The proposed third exchange from MIAX will raise the total number of U.S. Options Exchanges to 16. Is this a good thing for the options market? Is it the straw that finally breaks the camel's back? Or are you too busy getting great fills to care?

  • 44% - More Exchanges the Better
  • 22% - Please Make It Stop
  • 34% - Don't Care: I get filled

Listener questions and comments:

  • Question from Allan Tullman - There was a lot of research last year regarding selling put options to harvest risk premium. Now that volatility is back is this an ideal time to harvest premium via put selling or does the increased volatility increase the probability of getting whipsawed?
  • Question from Scott Somer - For Jill Malandrino: When CBOE does their floor reports there is an open outcry din from the SPX, VIX areas. Are there areas on the Nasdaq PHLX floor that also have that type of din, and if so, what names are getting this din?

May 30 2018

1hr 3mins

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Rank #7: Options Bootcamp 38: Triple Income Trading

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Basic Training: The Wheel Trade

A great trade for novice options traders. Our friends at RCM call this the "triple income trade" or "the wheel of fun."

What is it? Write a put to get long equity, then immediately write a call to sell equity. When should you use it? When should you not use it?

This is a great way to add some extra bang to your covered call trades.

Mail Call: Fabulous questions, insightful answers.

  • Question from Bit Tim: You recommend closing out your shorts when they go your way. Do you advise factoring the closing price of the trade in to your calculations when writing options? For example - write a put for $.30, but know at the onset that you will only collect $.25, because you will close it out for $.05. If more people did that at the outset, they might be less reluctant to close out their winner for a profit.
  • Question from Jack - I know you guys are not tax advisors, and so nothing you say can be taken as certain in any answer to this question. I am a small time trader, and at the moment cannot afford a CPA with trading expertise in options to do my taxes. So I am wondering if you can talk about the potential tax consequences of front spreads, especially when used as covered call replacements? I have had good success with this strategy, and I would like to move it into my margin account this year, instead of just using it in the IRA to avoid the tax headache.
  • Question from Alejandro Garcia, NYC - Given Wang's experience in the Chinese market, I would be interested to hear John's take on the impending launch of listed options in China in April. Does he think it will be a success? What will the popular strats will be with Chinese options traders?

Jan 24 2014

50mins

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Rank #8: Options Boot Camp 61: Earnings and Election Volatility, Day Trading Options and More

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Options Questions of the Week:

How do you prefer to trade options?

19% - Long premium

15% - Short premium

56% - I avoid earnings

10% - Other, explain below

How many U.S. options exchanges do we need?

5% - 14 is perfect!

29% - The more the merrier

62% - Make it stop!

4% - Other, explain below

Should options trade after hours?

53% - Heck Yes!

15% - Only in Major Names

15% - No, poor liquify

17% - No, other

  • Question from Alfy - Is it possible to be a day trader using options, or do you gave to take a longer term view?
  • Question from Alex - Insider Trading, What are your thoughts on Shorting 1Y 25 Delta Puts on LNKD midday today (LNKD is at 105 as I write this message). Puts are quite juicy right now with quite acceptable break even points. I am very interested in hearing your feedback. Cheers, Big Options Trading Podcast fan, Alex.
  • Question from Michael - $15 put Twitter drops off the map; yet the premium still has been declining. Can you explain?
  • Question from FuturesMD - Is there a directional options strategy that you'd suggest for someone who wants to play the 2016 election?
  • Question from TraderSon - Can a trader make a decent living buying straight call and puts, or do you have to get crazy with the complex stuff like iron condors?

Mar 03 2016

1hr 1min

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Rank #9: Options Bootcamp 51: Covered Strangles, Theta and Closing Spreads

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Basic Training: Covered Strangles/Covered Combo

  • What is it? Long stock, covered call, short put. Why do it? Collect more income than a standard covered call or short put. Why not to do it? Increased margin requirement, you will increase your stock position to the downside.
  • Example: XYZ trading at $50.
  • Option 1 - Sell covered front month 55 strike call for $1 - collect 2% income.
  • Option 2 - Sell both front month 55 call and 45 put for $1 each - collect $2 or 4% income. Rinse and repeat.

Note: Call and put should only be sold on strikes where you are comfortable buying/selling the stock.

Listener Mail: Listener questions and comments

  • Question from Tony - Mark, love boot camp. I was lucky enough to have a fairly significant weekly put spread position in DIA this week (long puts at 166-167 and short at 161-162.5). I was making good money on Wednesday and ran into a problem. The bid ask spread on my long puts were so wide, I could not close out, roll or adjust the trade. I thought about buying futures contracts to hedge my delta risk and suck out the theta. Is there any other strategy to adjust or hedge a successful trade without getting haircut on the executions? Should I just calculate the extrinsic value add a spread and put in a limit order for the long leg? Is it always harder to close out a spread trade in a volatile market… i.e. if I want to close a spread trade does one person have to want to enter the same trade? Or can the trade go to two counter parties?
  • Question from Mukund Ambarge - Hi Team, I had question on theta decay. I understand that delta is in constant flux with every tick move in stock, the delta / gamma changes. IV is in constant flux with buying and selling of options and volume etc. So vega changes with option transactions. But theta decay is the only one which is always in a steady pace i.e. it’s not like it will decay quickly today and slowly tomorrow. The question is when the theta decay is really adjusted in the prices of options. Do the theta decay get adjusted at every tick move? Or every hour? If it is adjusted daily. Then when is the theta decay taken out of options. Early morning before start of trading? Or late in the day like last few minutes that whole days theta is taken out? Also I do not know when is weekend theta taken out of prices? Friday early morning or Friday ending or middle of the day? Basically when does market maker run the prices with the model and set the prices? Only once before trading starts or does he keep adjusting every minute/hour/tick based on demand/supply?

Nov 19 2014

45mins

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Rank #10: Options Bootcamp 5: Spread Trading

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Options Bootcamp 5: Spread Trading Basic Training: Today we're going to dive into spreads. Spreads are really the defining characteristics of options. What is a spread? Why would you do a spread vs. trading an option outright? Max value of a spread is the differential between the two strike prices. Long call spread, aka vertical, examples with everyone's favorite stock XYZ. Spreads have components called legs - they are the individual parts of the spread.

Roll Call: Mark and Dan sit down with Christopher Newman, the Zecco Trading Vice President of Customer Service, and run him through a few questions:

  • A big part of the brokerage experience is support. What are some of the things Zecco does to ensure the customer has a great experience when they need support?
  • If I'm a Zecco customer, or a potential Zecco customer, how can I reach out to get support?What methods of communication does Zecco offer?
  • If I'm an options trader, will Zecco go the extra mile for me on the phone? Explain what options traders can expect in terms of phone support.

Mail Call:

  • Twitter question from DSCHWARTZ- You said buying options before earning was bad. What about spreads (verticals, etc)?
  • Email from Stephen Maxes, Des Moines, IA- I'm interested in trading options spread. Do I need a special options account to do this or does the regular option account work for spreads as well? Thanks and please keep doing the show. It has been very helpful for me.

May 17 2012

53mins

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Rank #11: Options Bootcamp 39: Options As Investment Vehicles

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Options Drills: Options as an investment tool.

Stock replacement strategy, Covered calls, Short puts, Collars, Covered strangles, Covered straddles and LEAPs

Mail Call:

Question from Charles Binder - Can you guys explain 60/40 tax treatment? What do I need to trade to qualify for this special consideration? Thanks for your help. Keep the show coming!

Jan 31 2014

57mins

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Rank #12: Options Bootcamp 48: The Great Open Interest Conspiracy

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Mail Call: Your questions directed this episode.

Question from Jason Kruse: Is there a Bootcamp episode that discusses OI and how it can affect expiration moves? I hear people talk about max pain and pinning like it’s a conspiracy. Would love to hear real info about how it works.

Open Interest

  • What is it?
  • Why is it important?
  • Why is it not important?

Pin Risk

  • What is it?
  • How prevalent is it?
  • When should you be concerned?
  • Is there really a conspiracy?

Question from Allen Manning:Hello everyone, I just started listening to the Options Bootcamp podcast, and I'm really enjoying it! I have a question about a strategy described in episode 20: Options in Lieu of Stocks. As a covered call alternative, I was interested in possibly buying a LEAPS with a 1 or 2 year expiration and selling monthly calls against it. When I looked up a few stocks and ran some preliminary numbers, I noticed that the cost to purchase a deep in the money LEAPS (about 80 Delta) option was usually higher than the total money I would make selling monthly calls for the duration of the LEAPS. What I did to get these rough numbers was to take the money earned from selling the initial 1-month call (after commission cost) and multiplying it by 12 or 24. I'm assuming one or more of these possibilities:

  1. The method I used to get these figures is wrong, even as a rough estimate.
  2. This strategy will only work with certain stocks/underlying that have optimal Greek numbers.
  3. This method only works when assuming the underlying LEAP also appreciates in value to offset its own cost.
  4. Commission costs make this strategy less successful (I have a TD Ameritrade account)

Any information you can provide about this strategy is greatly appreciated. Thank you, and keep up the good work on a great program!

Question from Ethan Kamen: My question may be a little basic for the esteemed Bootcamp drill instructors, but I would like to know about back spreads. It seems like the majority of the information online is devoted to ratio spreads. Is there a reason for this? Are back spreads not popular? Do you use them? If so, what scenarios are suitable for back spreads? Thanks for this show. I look forward to each new episode.

Back Spreads

  • What are they?
  • What is the use case for them?
  • When shouldn't you use them?

Back spreads vs ratio spreads

  • What is the difference?
  • When should you use each?
  • Are ratio spreads more common/popular than back spreads?

Question from Ilythian: What is the ideal time horizon for trading options? My typical stock trade lifespan is 3-6 months? I have heard many people describe options as short-term investments. Is my time horizon too long to be trading options?

Jul 30 2014

42mins

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Rank #13: Options Bootcamp 30: Back to School, Back to Basics

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Basic Training: It's that time of the year again. The kids are back to school, so let's go back to school as well, and refresh our listeners on the options basics.

  • What is an option? How do options work? What is a multiplier?
  • What are the greeks: Delta, Gamma, Theta, Vega.
  • Long premium vs short premium.

Option Drills: A review of the basic positions:

Long call - Short call - Covered call - Long put - Basic vertical spread - Collars. Others can be found in previous episodes.

Mail Call: Question from Dave S. - In the Options Boot Camp podcast #28 and #20 you discussed buying deep in the money LEAPS and selling shorter term calls against them. If the calls you sold expire worthless everything is great. What happens if the underlying goes up and the calls you sold are in the money at expiration? Is it better to just buy back the calls or let them get exercised? Can you discuss the process if they are exercised? Do I need to sell the LEAP to cover the call that was exercised?

Sep 17 2013

1hr

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Rank #14: Options Bootcamp 50: Futures Options vs. Equity Options

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Basic Training: Futures Options vs. Equity Options

We've talked about how to use options to mitigate your portfolio risk, but many traders also rely on commodities diversification as a way to mitigate portfolio risk.

Futures options strategies: All of the options strategies we've discussed on this program in the past are applicable to futures options as well with a few exceptions

Covered call & protective puts both require underlying futures positions - something most traders prefer to avoid.

Most traders looking for diversification typically want bullish exposure to the underlying. Some great options strategies for this include:

  • Stock/futures replacement strategy
  • Vertical call spread
  • Spreads with wings

Futures are useful for traders who want to establish sizable positions with a minimum of outlay

Options on futures can be useful for traders and asset managers who want exposure to alternative asset classes but can't or won't trade futures. You'll need a futures account to trade futures options - but if you use risk mitigated strategies such as spreads and don't get net short units and close out positions near expiration you don’t have to worry about dealing with the underlying.

Mail Call: Listener questions and comments

  • Question from Jim Horn: Hey boot campers! I keep hearing about a spread called a onebytwo. What the heck is that? Am I even saying it right? Great show. Thanks for educating poor slobs like me.
  • Question from Tom Evans, St. Louis, MO: What does more volume futures or options? Also does one do more electronically than the other? If I'm looking to dive into one am I better off going with the futures or the options? Lastly can you clarify the difference between CBOE and CME and CBOT? They all sound the same to me.
  • Question from Anon: On several of your programs you mention that it is important to understand the VIX cash level at a given SPX level. Can you please explain this further? As an example, what are the implications of a 12 VIX at 1800 vs. a 9 VIX at 1800? Likewise, how does a 15 VIX at 1800 compare?

Nov 26 2014

47mins

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Rank #15: Options Bootcamp 28: Pro Tips, or Learning from the Mistakes of Others

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Basic Training: Pro Tips

  • Swap LEAPS for stock when writing covered calls.
  • Everyone, even pros, have losing trades.
  • Never ever ever enter a market order in the options market place pre-market.
  • Swap in-the-money calls for stock whenever possible to utilize trading capital more efficiently.
  • Use implied volatility on all your option trades.
  • Don't base a sale or purchase of an option based purely on the implied volatility levels without understanding the context on the implied.
  • When looking at implied volatility, be very careful around expiration.
  • Don't be a lemming and blindly follow "unusual activity". Often it's better to sell the strike where the unusual buying activity took place.
  • Swap in-the-money calls for stock whenever possible to utilize trading capital more efficiently.
  • Fit the strategy to the situation.
  • When reverse skew flips, it's usual a big buy signal.

Mail Call:

  • Question from Ron Yuravich - I listened to the podcast on calendar spreads and would like to know what book do you recommend that is compressive on spread trading? I have never had much luck with spreads. I have done a few iron condors for credit and few credit spreads - I just let them expire. The concept of trading the spread and not the underline is new to me. I see that I still have a lot to learn, but I am determined to be a well-seasoned, successful option trader in the end. Keep up the good work - I respect your group for knowledge on options. Thanks, Ron
  • Question from Tom Simmons - Just to clarify -- If I write a time iron butterfly in DNDN ahead of earnings with Sogo - sell the Sep 5 straddle and buy the Aug 4/6 strangle - Sogo will margin me as if I sold the Sep 5 straddle naked because the Aug will expire before the Sep. Do I have that correct?
  • Question from Alan Dickerson, Provo, UT - Options are a derivative of stocks. Yet there are far more options exchanges than stock exchanges in the U.S. How is that possible? Why are there so many options exchanges? Do they all trade different products or serve different purposes?

Aug 16 2013

1hr 6mins

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Rank #16: Options Bootcamp 29: Diagonals

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Basic Training: Trading Diagonals

  • What is a diagonal?
  • Why would you put it on?
  • What adjustments need to be made?
  • How is it performed?
  • How does it differ from a typical horizontal calendar spread?
  • Why would you use a calendar vs. a horizontal spread?
  • How do the greeks differ?
  • How do you choose the strikes?

Mail Call: Fall in, recruits!

  • Question from Richard D: I think a whole boot camp show on skew could be very helpful! Thanks!
  • Question from Hawkeye6: Love the pair of calendar spread shows. Can you make it a hat trick and have a show on double diagonals and double calendars? I am especially interested in hearing about selection criteria -- what makes a good candidate, criteria for strike selection, when to pick DD/DC vs. Condor/Iron Condor, etc.

Sep 03 2013

55mins

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Rank #17: Options Bootcamp 70: Mistakes to Avoid When Trading Options

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In this episode, Mark, Dan Passarelli and Jill Malandrino take on listener questions.

Options Drills: Today's topic was inspired by this listener question:

Question from MarkLitwin: How do you lose money in options in the most effective way?

  • Don't by ATM straddles
  • Don't load up on far OTM options because they're cheap
  • Don't trade earnings
  • Be careful with trading weeklies
  • Watch out when selling options going into weekends or holidays

Mail Call: Listeners take over

  • Question from ejh4isu: IF I buy/sell a vertical on SPX (or any equity stock for that matter) and hold until expiration, and SPX settles between the strikes, what happens? Example: sell 2395/2400 and SPX settles at 2397.
  • Question from Darqane: Assigned on short SPX puts means getting long the underlying? But how does that work if it's cash settled?
  • Question from Lesnod: How do you get out of the straddles? One side of a straddle is always a loss correct?
  • Question from Bobster: Can you trade options outside of U.S. trading hours?
  • Question from ejh4isu: Let's say you're short naked a bunch of puts and the trade goes against you, and you don't have the money to pony up? What can your broker do?
  • Question from BULZEYE7: Are options worth it for day-traders? Or just for swing-traders?

Nov 28 2017

1hr

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Rank #18: Options Bootcamp 55: Going Naked in IRAs

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Options Bootcamp 55: Going Naked in IRAs

Basic Training: Using Options in an IRA Account. Can you trade options in a retirement account? What are the limitations? What strategies can you utilize? What are the benefits of writing covered straddle vs calls? What is a stock replacement strategy? When should someone consider this strategy? Using options as an investment tool. What are any other investment strategy?

Mail Call: Listener questions and comments

  • Question from Hector - Can I still trade mini options or are they no longer available?
  • Question from Neil Cerone - What are the most common mistakes you see from "stock guys" who try to become "options guys?"
  • Question from Steve: First off, I love ALL the shows. They fill my daily commute with wit AND wisdom. Thanks! Also, better late than never, it was great meeting you all at Benny’s Chophouse back in Sept. I am one of the Lobster and Meatballs trainees (thanks to your shows). I had the pleasure of sitting right next to you and across from Uncle Mike as we devoured steaks on The Greasy Meatballs tab. That would be Extra pleasure as Sebastian was paying for them! However, I gotta tell you that you blew it big time the other day when trying to describe why a Leap Call Diagonal is called the "Fig Leaf". Brian named it the "Fig Leaf" because you are "kinda covered but not exactly" due to the curves in the profit graph. I think that makes perfect sense and is pretty funny to boot. Finally, on a side note I would love to hear Uncle Mike explain what is and what is not considered holding in the NFL. It boggles my mind to see play after play of inconsistent enforcement. I understand if that’s out of scope, but what the hell I thought I would ask anyways. It is not too often you meet a Pro Lineman. Best regards - Steve aka "Hawkeye".

Mar 26 2015

55mins

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Rank #19: Options Boot Camp 75: Bringing Education Back With A Vengeance

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Options Boot Camp 75: Bringing Education Back With A Vengeance

  • HOST: Mark Longo, Founder and CEO - The Options Insider Media Group
  • Co-Host: Dan Passarelli, Founder - Market Taker Mentoring.

Mark and Dan are bringing options education back with a vengeance! In this episode, they kick things off by looking back at a tumultuous 2018. Then they follow up with a super-sized Mail Call segment answering all of your pent-up questions about Apple, skew trades, options exchanges, options education, USO verticals and much more.

It's time to get back in peak options trading shape. It's time for Options Boot Camp!

Jan 11 2019

59mins

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Rank #20: Options Bootcamp 40: Trade Adjustments

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Basic Training: The topic of the show today comes to us courtesy of a listener question.

Question from Dr. Toboggan: Love the podcasts. Would like to see an episode (maybe options bootcamp) that covers trade adjustments. This was been the most difficult aspect of learning to trade options for me, and would be useful now that you've covered most of the basics on this program. Specifically, would like to hear a discussion on how to adjust trades when the stock moves against you (i.e. price hits the short strike in a condor/credit spread, or the wings of a butterfly). Thanks

  • Adjustments are where the rubber meets the road from an options perspective.
  • What are adjustments?
  • Why have an adjustment strategy?
  • When do you make the adjustment?

Basic Adjustments:

  • Close positions and close portions the of trade.
  • Adjusting into spreads.
  • Good rolls vs bad rolls.
  • Long premium vs short premium.

Feb 21 2014

55mins

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Options Boot Camp 80: Holiday Options Mythbusting

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Options Boot Camp 80: Holiday Options Mythbusting   HOST: Mark Longo, The Options Insider Media Group CO-HOST: Dan Passarelli, Market Taker Mentoring  

On this episode of Options Boot Camp, Mark and Dan discuss:

  • Should you write ITM covered calls?
  • Covered calls versus naked short puts?
  • Busting the most common options myth.
  • And much more...

Jan 01 2020

23mins

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OBC 79: New Years Mail Call Palooza Part 2

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OBC 79: New Years Mail Call Palooza Part 2

On this special episode, Mark and Dan ring in the new year by answering your questions about:

  • The impact of spy dividends on options traders
  • Rules of thumb when buying options
  • When to buy a call outright vs a spread
  • and much more...

Brought to you by www.Tradier.com

Jan 01 2020

23mins

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OBC 78: New Years Mail Call Palooza

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OBC 78: New Years Mail Call Palooza

On this special episode, Mark and Dan ring in the new year by answering your questions about:

  • Funky Time Spreads
  • Crypto Options
  • Credit Spreads
  • Do Options Pros prefer to sell premium
  • and much more...

Brought to you by: www.Tradier.com

Dec 31 2019

26mins

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OBC 77: Hunting for Income in A Low Rate Environment

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OBC 77: Hunting for Income in A Low Rate Environment

  • Host: Mark Longo, The Options Insider Media Group
  • Co-Host: Dan Passarelli, Market Taker Mentoring

Basic Training Segment

Options Boot Camp is back! In this episode, Mark and Dan explore how to get aggressive with your income when rates are low. The topics discussed include:

  • Covered Calls
  • Short Puts/Put Spreads
  • Collars
  • Covered Combos/Strangles
  • ITM vs. OTM Covered Calls
  • and More

Dec 30 2019

38mins

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Options Bootcamp 76: Assignment Risk, Spread Deltas, Minis and More

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MAIL CALL

Question from Joe and Linda -  I have  been knee deep with you guys for the last 14 months and can’t Thank You enough for the wealth of information you provide. One of my favorite quotes: “ Your generosity is only exceeded by my gratitude.” I have a long commute to work in the morning and have managed to listen to all 240+ of the Options Playbook, all of the Bootcamp, 90% of the OIC stuff as well as in and out of the Options Advisor and Futures show. Also haven’t missed Options Block for the last few months.

 I purchased Dan’s Trading Options Greeks book and was wondering if he had an audio version. Could easily listen to it on my morning commute.

You so much for all your help, looking forward to the future with you guys. Going to be successful enough to be able to travel thank you guys in person! Thanks Again!

Question from Rayman5839 - Hi! Is the option premium counted toward exercising an option when in the money?. New to options, thanks...So it would only be profitable if the intrinsic value heavily outweighs extrinsic?

Question from Thomas Weber - If I am short a deep in the money call in SPY (delta near 1), what are the odds I will be assigned before Friday expiration?

Question from Alto - Which do you think has a better chance of happening - no more earnings calls or after hours options trading? And which do you think would be more impactful for options traders? Do you have a preference?

Question from 6654P - Why are options on CBOE and CME GROUP viewed differently?

Question from Paul Vasquez - When is the “official” close as far as options expiration is concerned?  I’ve had calls assigned and had stocks put to me when the strike was out of the money at market close but it moved in and out during after hours trading. Any light you can shed on how expirations work would be appreciated. Thanks Paul, Sacramento, CA

Question from LL6 - Why did mini options fail? Are they done for good?

Question from Neels - Why is the logo for this show blue?

Question from RadH0k - Is spread delta just diff of the deltas on the two options?

Question from JackTam - Is there another exchange educator out there other than Cboe institute?

Jun 25 2019

1hr 1min

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Options Boot Camp 75: Bringing Education Back With A Vengeance

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Options Boot Camp 75: Bringing Education Back With A Vengeance

  • HOST: Mark Longo, Founder and CEO - The Options Insider Media Group
  • Co-Host: Dan Passarelli, Founder - Market Taker Mentoring.

Mark and Dan are bringing options education back with a vengeance! In this episode, they kick things off by looking back at a tumultuous 2018. Then they follow up with a super-sized Mail Call segment answering all of your pent-up questions about Apple, skew trades, options exchanges, options education, USO verticals and much more.

It's time to get back in peak options trading shape. It's time for Options Boot Camp!

Jan 11 2019

59mins

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Options Bootcamp 74: Trading Options in a High Volatility Environment

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Basic Training: The Return of Volatility!

  • VIX is not dead.
  • VIX jumped from 13.99 on 2/2 to 38.30 on 2/5, and 46.34 on 2/6.
  • What are you thought on the recent resurgence of volatility in the marketplace?
  • Do you think this is a temporary aberration or have we transitioned into a new volatility regime?
  • What is the impact of higher volatility on options strategies? What is the impact of this change for options traders?

Mail Call: Options Flashpoll

The proposed third exchange from MIAX will raise the total number of U.S. Options Exchanges to 16. Is this a good thing for the options market? Is it the straw that finally breaks the camel's back? Or are you too busy getting great fills to care?

  • 44% - More Exchanges the Better
  • 22% - Please Make It Stop
  • 34% - Don't Care: I get filled

Listener questions and comments:

  • Question from Allan Tullman - There was a lot of research last year regarding selling put options to harvest risk premium. Now that volatility is back is this an ideal time to harvest premium via put selling or does the increased volatility increase the probability of getting whipsawed?
  • Question from Scott Somer - For Jill Malandrino: When CBOE does their floor reports there is an open outcry din from the SPX, VIX areas. Are there areas on the Nasdaq PHLX floor that also have that type of din, and if so, what names are getting this din?

May 30 2018

1hr 3mins

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Options Bootcamp 73: Options for Veterans

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Today's guest hosts are Dan Passarelli from Market Taker Mentoring, and Dave Russell, Vice President of Content Strategy at TradeStation.

Basic Training: Options Education for Veterans

  • Why is TradeStation pursuing veterans?
  • What is TradeStation doing specifically for veterans?
  • Which options strategies are most popular?

Mail Call: Options question of the week

Earnings season is upon us once again! It's time for #Tech to put its best foot forward. Which big #tech names are you looking to sling some #options on this week?

  • Amazon ($AMZN)
  • Microsoft ($MSFT)
  • Alphabet ($GOOGL)
  • Facebook ($FB)

Listener questions and comments:

  • Question from B. Fowl - What is the most common options question that you guys get?
  • Question from P. James Lamar - Can you guys recommend an options platform for an active option trader? I'll try to add a link to what I used to be able to do on my old platform but am no longer able to do. But I would like to find another platform that has single click entry and exit for options. If you know one please let me know. Thanks.
  • Question from Charlie C. - What's the weirdest thing you've seen in the options market?
  • Question from LTV$ - What is the cheapest way to buy an option?
  • Question from Tim T. - You guys slammed buying straddles on your last show. Are they really that dangerous? Or is it more a question of people not knowing what they were getting into?
  • Comment from Allen Van - My Favorite Greek - My options trading is mostly focused around theta. I really don't pay attention to the other Greeks. It's all about collecting the theta. Seems to be working so far. Am I nuts?

Feb 01 2018

1hr

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Options Bootcamp 72: Busting Options Expiration Myths

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Basic Training: Expiration Mythbusting

  • What is expiration? Why do options expire? What does Triple Witching mean? Quadruple Witching?
  • How does expiration impact the Greeks? How has expiration changed with the advent of the weeklys?
  • Myth: Is it true that options control the stock market on expiration Friday?
  • What happens when you exercise an option? American vs. European exercise? Can you exercise options early? Should you? How does auto-exercise work?

Mail Call: Fall in for listener questions

  • Question from Christina Rico - Will we ever have daily options?
  • Question from Ian Nichol - Love the show. What do you guys (and lady) think of this VXX debacle with FINRA and Wells Fargo? Seems like a few of the folks at Wells Fargo should have been listening to this show.
  • Question from TradeHer - How do we get more ladies into #options?

Dec 14 2017

58mins

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Options Bootcamp 71: Protecting Your Gains Using Options

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Basic Training: A Review of How to Protect Your Profits

  • Easiest method: Buy a 2-3 month put ATM or slightly an OTM put. Protect just those gains.
  • What do you do if you have a broad portfolio?
  • Hedging Rule of Thumb. Expect to spend about 2% of your portfolio for effective 3-6 month protection.
  • How do you reduce the cost of protection?
  • Buy a spread instead of an outright put, set up a collar, or set up a collar with a kicker.

Mail Call: It's time for listener questions

  • Question from Ariell - Why should I ever buy puts? I can use a stop order in the stock for free and then put that extra capital to work in my trading account. By my math using stops instead of puts can boost your account 5-10% per year. That's a lot of cheese.
  • Question from S_Warz - Do you trade options through dark pools
  • Question from Thankfulness - Do you have dark pool access?
  • Comment from H. Schwartz‏ - Who said option traders don't celebrate holidays!
  • Question from L. Penguin - I have a question for the Options Bootcamp. I'm a new options trader and I want to buy a LEAP call because 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.

Dec 07 2017

1hr

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Options Bootcamp 70: Mistakes to Avoid When Trading Options

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In this episode, Mark, Dan Passarelli and Jill Malandrino take on listener questions.

Options Drills: Today's topic was inspired by this listener question:

Question from MarkLitwin: How do you lose money in options in the most effective way?

  • Don't by ATM straddles
  • Don't load up on far OTM options because they're cheap
  • Don't trade earnings
  • Be careful with trading weeklies
  • Watch out when selling options going into weekends or holidays

Mail Call: Listeners take over

  • Question from ejh4isu: IF I buy/sell a vertical on SPX (or any equity stock for that matter) and hold until expiration, and SPX settles between the strikes, what happens? Example: sell 2395/2400 and SPX settles at 2397.
  • Question from Darqane: Assigned on short SPX puts means getting long the underlying? But how does that work if it's cash settled?
  • Question from Lesnod: How do you get out of the straddles? One side of a straddle is always a loss correct?
  • Question from Bobster: Can you trade options outside of U.S. trading hours?
  • Question from ejh4isu: Let's say you're short naked a bunch of puts and the trade goes against you, and you don't have the money to pony up? What can your broker do?
  • Question from BULZEYE7: Are options worth it for day-traders? Or just for swing-traders?

Nov 28 2017

1hr

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Options Bootcamp 69: Simple Options Tips for Stock Traders

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Mark, Dan, and Jill were all in the Options Insider studio to record this session. Education, and hilarity, ensued.

Options Drills: What are options trading ideas that an active stock trader can use in their portfolio?

  • Getting paid to take on risk, cash-secured put
  • The wheel trade
  • Stock replacement strategy; what about using LEAPS?
  • Using a diagonal spread to generate income

Mail Call: Fall in for listener questions and comments

  • Question from Tiim: Why isn't it standard or maybe required to let people close out shorts for free below $.10?
  • Question from USA Patriot: What is ADV??
  • Question from Richard D: Are there any trades that if you did not have to pay brokerage fees would be excellent types of trades? I recently have been given the opportunity to trade options and equities for a near zero trading costs for about a year. I had in the past found some multi-leg spreads or underlyings with a really low prices unworkable because the trading costs made the potential gains or expected value too low. Thank you for your time and for the great shows you consistently point out! Best, Richard
  • Question from Ascentaa: What can happen to the current options being held of KITE which is acquired by GILD and is being delisted?
  • Question from Yieldhawk: What is the biggest size one could buy in options? If one had a long position of $1B and want to hedge w $10 million worth is that ok?
  • Question from Lonesome: Could you explain Theta and how it helps/hurts options traders? Should anyone ever buy OTM options?
  • Question from Butcherboyz: What options trading strategy would you say is best suited to people with absolutely zero knowledge of options? Thanks.

Nov 20 2017

59mins

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Options Bootcamp 68: Mail Call Palooza

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Mail Call: Fall in while your drill instructors answer your questions.

  • Comment from Andrew McNichol - Big fan of your podcast. I appreciate how you start at square one and then walk listeners through every element of options and options trading. Thanks.
  • Question from Tim D. - How high do rates need to be before I need to worry about rho?
  • Question from Kraken1975 - Which of the Greeks do you utilize the most and why?
  • Question from Meatz - Would you describe successful options trading as primarily singles and doubles or more swing for the fences home runs?
  • Question from LCB - This is a challenging time to sell options due to low volatility. So does it stand that the opposite is true? Is it a good time to buy options? Particularly protective puts?
  • Question from Mary - What's the shortest expiry available for plain vanilla options?
  • Question from Ejh4isu - What qualifications do I need to work in the industry as a professional, i.e. as a trader? Is that a career path I'd even want to consider?
  • Question from Privateer - Permission to speak freely sirs! Hi guys, Love the show and the entertaining military themed education. I've recently been learning about an exciting strategy called writing call options with CFDs. The claim by the teacher is that CFDs can leverage the return on premium selling by ten times, and reduce your break even significantly. I'm very invested in how this could apply in selling both legs i.e. covered strangles or straddles. Can you discuss the downsides, upsides and hedging strategies used in this scenario,and how to mitigate risk especially on the put leg. Sirs yes sir!
  • Question from Axel D. - Why does open interest only update once a day?

Oct 31 2017

59mins

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Options Bootcamp 67: Getting Back to Basics

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Your hosts for this episode are:

  • Mark Longo, Founder, Options Insider Media Group
  • Andrew Giovinazzi, Chief Education Officer, Option Pit
  • Jill Malandrino, Global Markets Reporter, Nasdaq

Introduction Segment: What are Nasdaq's options education initiatives? Why are options and options education so important to Nasdaq going forward? Creating content for RIAs.

Options 101: Going back to the Basics

Basic Options Primer

  • What are options?
  • Basic options terms
  • Why trade options instead of stocks?
  • What are the Greeks?
  • Why should traders care about volatility?
  • Buying options versus selling options
  • Start with paper trading
  • Know where you are going to get out before you get in

Oct 18 2017

50mins

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Options Bootcamp 66: Trading Calendar Spreads During Earnings

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Options Drills: What is a calendar? How do we set them up for earnings? Strike/Month selection? Should we carry them through the event? When do we take off? Calendars vs. Diagonals?

Mail Call: Fall in recruits and get your questions asked.

With $VIX giving up the ghost - which products are you hoping will provide new sources of #Volatility for your #options trading?

  • 33% - Crude Oil (WTI, etc)
  • 20% - Metals ($GLD, $SLV, etc)
  • 20% - FX (GBP/USD, etc)
  • 27% - Indv. Equities-$TSLA, etc

VIX Limbo: Last Month 40+% of you said $VIX wouldn't break 9 in 2017. But recent events have us asking again: How low will $VIX get in 2017?

  • Still Won't Break 9
  • Won't Break 8.5
  • Won't Break 8.0
  • Lookout - 7 Handle in '17

Listner Questions and Comments: What is on your mind?

  • Question from Lesnod - How do you get out of the straddles? One side of a straddle is always a loss correct?
  • Question from Meatz - Would you describe successful options trading as primarily singles and doubles or more swing for the fences home runs?
  • Question from Bulzeye7 - Are options worth it for day-traders? Or just for swing-traders?
  • Question from Axel D - What does open interest only update once a day?
  • Question from Mary - What is the shortest expiry available for plain vanilla options?
  • Question from Lincan - My go to options strat is to sell covered puts on stocks that I want to buy then get paid to wait. If the stock comes my way I eventually trade out of it using a covered call. What do you think? Savvy or stupid?
  • Question from Steve: With the VIX so low, I am not selling a lot of options anymore, because I am afraid that I will not collect enough premium. Am I thinking of this incorrectly?

Jun 22 2017

1hr

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Options Bootcamp 65: Revisiting Delta, Butterfly Breakdown and Your Questions

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Basic Training: Delta Revisited

  • A basic overview of Delta
  • What is it?
  • How does it impact your trading?
  • Inspired by a Market Trader Mentoring newsletter article Delta Can Still be Your Friend

Mail Call/Options Options Question of the week

With $TSLA threatening $315 how are you leaning in your Options trades this month? Would you rather:

  • 18% - Buy 1-month $300 put
  • 25% - Buy 1-month $330 call
  • 25% - Sell 1-month $300 put
  • 32% - Staying far away from it

Listener Questions and Comments:

  • Question from Joshua Shealy: Thanks so much for all that you guys do! Sorry if this is a novice question. I know that Delta is not literally the % chance of expiring in the money, but more so the rate of change for a $1 movement in the underlying. I noticed today looking at VIX Calls that the strike closest to .5 Delta is the 20 strike, a long way from ATM. I usually associate near .50 Delta with being near ATM. Is this just a nuance of VIX, or am I missing something bigger?
  • Qustion from Brian Fortin: Options Boot Camp Dan is fond of saying, why trade options naked when you can spread off the risk and make the same money by doing it twice? I feel the same way about carrying a short position into expiration? Why try to carry 6 short contracts into expiration to capture that last 5 cents, when you can just trade 7 contracts and do the right thing?
  • Question from Gameday Dog: Aww man My vertical put spread has gone bad. I have +3 options at 61.5 and sold -3 at 62.5. Yesterday it gapped down to 50. I now have +200 shares of LULU in my account plus 3 put options at 61.5 and -1 put option at 62.5. I thought it was a $300 max risk spread. Do I have to do anything? Do I sell the shares? Everything expires in 7 days. Please help. Thanks. So, I learned about selling shares and back ratio spreads and even got an $19 credit.
  • Question from Elio: Confused. How did that guy end up with only two of his short puts getting assigned to him? If he was short 3 shouldn’t all of them have been assigned?
  • Question from JDog: I just got an options pitch that says that options buyers lose money seven out of 10 trades. Is that true?
  • Question from Allen: Why would I trade options when 90% expire worthless?
  • Question from AndersonIvesting: New to options. I use TD Ameritrade but currently I don't like it for options. I was looking at Charles Schwab. Any recommendations for an options newbie?
  • Question from Sharkcake: I've been approved to trade options by my Brokerage but I have yet to execute my first trade. What trade do you recommend?

May 05 2017

1hr

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Options Bootcamp 64: Settlement Myths and Misconceptions

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Basic Training: Today we are going into the depths of option settlement. A question that is often asked in Group Coaching is that of the various settlement issues.

Many option traders limit their universe of option trading to two broad categories:

  1. One group consists of individual equities and the similar group of exchange traded funds (ETFs).
  2. The other group is composed of a multitude of broad based index products.

Individual equities and ETFs trade until the close of market on the third Friday of each month for the monthly series contracts. These days there are more and more ETFs and equities that also have weekly settlements too. These contracts are of American type and as such can be exercised by the owner of the contracts for any reason whatsoever at any time until their expiration.

  • What is automatic exercise?
  • Equity settlement?
  • Cash settled indexes?
  • Determining settlement?

Mail Call: Listener questions and comments

  • Question from Mike: Hello, 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. Thanks for your help.
  • 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?
  • Comment from Ian Felder: I started off in crude futures, then moved to VIX futures, now VIX options. Each time I trade a new market, I feel like I see more panoramic moves because I am less familiar with the underlying in the first few days. It sounds scary, but it is actually refreshing. I guess looking at options has changed the way I look at futures. Has something similar happened to you? Have options changed your outlook on other products?

Sep 22 2016

59mins

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Options Bootcamp 63: The Proper Way to Trade Covered Calls

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Options 101: Our topic today was inspired by a listener question.

  • Question from Mark Davis: Hello, I am a new listener to options bootcamp and am currently on Ep. 4. There was a mention of using covered calls to generate a "dividend." I am having trouble tracking down more information on this. Being still new to all of this I am hoping to get a clearer picture of how it works. How far out on expiration should I look and how do I figure the strike price? Thanks!

Mail Call: Even more listener questions and comments

  • Question from Robert Kornacki: I would like to use strategy regarding naked puts. If the naked put is far out of money what strategy could I use to protect myself. Could I use some type of order in case it was getting close to naked put strike price. Thanks
  • Question from Dmitry Shesterin: What happens to LEAPs for tickers that get delisted before expiration?
  • Question from Fred: I read Natenberg options volatility and pricing twice now and I have also set up paper trading accounts. But I am stuck going forward in my options progression. I do not want to trade using the greeks formula. But I want to spec on crude futures intraday using options. What should I do? Should I make more SIM trades until I figure it out? Or am I just too ignorant to trade options?
  • Question from Jack Rieger: Do you have any specific strategies near or on expiration to profit from theta decay?
  • Question from Bobby: How long did it take you to become comfortable trading credit spreads? Also what is my max loss when trading a credit spread?
  • Question from from Tor: Hello. I am (restarting) my options trading on a shoestring; any thoughts on mini-options? Thanks.
  • Question from Fred (#2): Is it my imagination or do options traders trade more markets than futures traders do? Is that a good practice? Is it good to look for multiple markets when trading options? Should I expand my horizons?

Jul 29 2016

58mins

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Options Bootcamp 62: Selling Puts Revisited

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Basic Training: Short Puts Revisited

  • Want a complete overview of selling puts? Check out Options Boot Camp episode 4 from May 7, 2012.
  • New study: "An Analysis of Index Option Writing with Monthly and Weekly Rollover," written by Oleg Bondarenko, professor of finance at the University of Illinois at Chicago, and sponsored by CBOE. It is.the first comprehensive study to examine strategy benchmark with traditional stock, bond indexes incorporating weeklys options.
  • CBOE Russell study "Analyzing Russell 2000 Index Options-Based Benchmark Indexes Designed to Provide Enhanced Yields and Risk-Adjusted Returns." CBOE announced the release of a new study that examines six benchmark indexes that invest in Russell 2000 Index (RUT) options and compares their performances with those of traditional benchmark stock and bond indexes. This is the first comprehensive study that examines the performance of multiple options-strategy benchmark indexes that incorporate Russell 2000 Index options. Written by Mark Shore, an adjunct professor at DePaul University's Kellstadt Graduate School of Business, and sponsored by CBOE.

Mail Call: Listener questions and comments

  • Question from QKT - If i sold a $1 strike put with a current trading price of $.50 and then the stock goes to $5-what happens and what is my risk? How do I look at expiration? Can my puts be exercised against me?
  • Question from Nick S. -I am thinking of a cool new strategy that I haven't seen listed online before. It effectively involves buying an iron butterfly (one of Marks favorite strategies) and then selling an extra put on the downside leg. You would select your strike at a price where you are comfortable buying the stock should it drop. This has the obvious benefit of reducing your initial outlay for the position. However, unlike a naked short, put you have the added cushion of the long straddle to help protect you on the downside and lower your effective break-even on the downside.
  • Question from AJ M. - I have a question for the drill instructors. I hope you guys can calm my frayed nerves over this DOL thing. What exactly is going on? Am I not going to be able to sell calls in my IRA anymore? Since the vast majority of my assets are in retirement accounts this would be a HUGE hit to my savings. Please tell me this is not the case. Is there anything I as a retail stock and options trader can do to help prevent this? What if I open an international trading account? Would that do the trick? Help - I need the drill instructors to talk me off the ledge.

Apr 19 2016

49mins

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Options Boot Camp 61: Earnings and Election Volatility, Day Trading Options and More

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Options Questions of the Week:

How do you prefer to trade options?

19% - Long premium

15% - Short premium

56% - I avoid earnings

10% - Other, explain below

How many U.S. options exchanges do we need?

5% - 14 is perfect!

29% - The more the merrier

62% - Make it stop!

4% - Other, explain below

Should options trade after hours?

53% - Heck Yes!

15% - Only in Major Names

15% - No, poor liquify

17% - No, other

  • Question from Alfy - Is it possible to be a day trader using options, or do you gave to take a longer term view?
  • Question from Alex - Insider Trading, What are your thoughts on Shorting 1Y 25 Delta Puts on LNKD midday today (LNKD is at 105 as I write this message). Puts are quite juicy right now with quite acceptable break even points. I am very interested in hearing your feedback. Cheers, Big Options Trading Podcast fan, Alex.
  • Question from Michael - $15 put Twitter drops off the map; yet the premium still has been declining. Can you explain?
  • Question from FuturesMD - Is there a directional options strategy that you'd suggest for someone who wants to play the 2016 election?
  • Question from TraderSon - Can a trader make a decent living buying straight call and puts, or do you have to get crazy with the complex stuff like iron condors?

Mar 03 2016

1hr 1min

Play

iTunes Ratings

45 Ratings
Average Ratings
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Keep the boot camp alive!!

By ElkTrout77 - Apr 23 2019
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Excellent content guys! Thanks for all of your effort putting this together. But don’t quit on us now...keep the content coming!!

Very Educational

By Allen_tpa - Mar 31 2014
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Great show. Very educational and easy to understand. Keep up the good work!