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Options Boot Camp

Updated 7 days ago

Rank #159 in Investing category

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

The Best Episodes Ranked Using User Listens

Updated by OwlTail 7 days ago

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 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 #3: 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 #4: 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 #5: 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 #6: 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 #7: Options Bootcamp 32: Volatility and Skew

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Basic Training: Let's talk fundamentals

  • What is Implied Volatility and how it is derived? Why is understanding implied volatility is so important?
  • Historical volatility versus implied volatility.
  • What is skew? Why does skew exist?
  • What is the put wing? What is the call wing?
  • What is investment skew? What are other types of skew?
  • #1 Options question from newcomers - I bought a call option then the stock rallied and my call lost value. Why?
  • How do you evaluate skew? How is skew measured?
  • What is reverse skew? What does reverse skew sometimes indicate?
  • What is term structure?

Mail Call: You have questions. We have answers.

  • Question from Nick D. - I am a covered call seller. I have some people recommend that I should sell in-the-money covered calls instead of my usual 5%-10% out-of-the-money calls because of volatility. But why would I want to sell a call that is going to inevitably be called away? What is your thought on this strategy?
  • Question from Charles Midler, Santa Fe, NM - I am thinking about hedging my short stock positions with short put positions. How do the drill instructors view this strategy? Am I on the right track? Can John discuss the margin requirements of such a strategy?
  • Question from Nomad 6 - What are flex options?

Oct 24 2013

1hr 3mins

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Rank #8: Options Bootcamp 47: Protecting Profits

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Basic Training: How to protect your profits.

  • Easiest method: 1st buy a 2-3- month put ATM or slightly OTM put.
  • Purchase an ATM put spread with the short leg at your break-even point. Easiest to do in a single stock or underlying.
  • What to do if you have a broad equity portfolio? Its a little more complicated. Determine the effective beta of your portfolio an how many effective shares of that index you own.
  • Rule of thumb - Expect to spend about 2% of your portfolio for effective 3-6 month protectionHow to reduce the cost of protection. Buy a spread instead of an outright put. Set up a collar. Set up a collar with a kicker.

Mail Call: Listener Questions and Comments

  • Question from Big Charlie - Hey guys. What is your take on the OH/Monster merger? What does this mean for the options landscape going forward?
  • Question from Brian Collamer - Hi Mark, If I have a short call in $SPY on the ex-dividend date that is OTM, I will not owe the dividend correct? Thanks, Brian
  • Comment from Justin - Hi Mark, Just heard my question on the podcast! Awesome! Thanks so much. Keep doing what you do. And I will keep listening. -Jay
  • Question from Niles F. - How much of my portfolio should I allocate to defensive strategies such as protective puts? Thank you for answering my question and for producing this fine program.
  • Story and Question from KAISERDOG76: Funny story- I was trading on my IPad. It is the Summer 2013. CNBC is on but I am not paying attention to it. I had some cash to play with and there was some electricity in the air that day. I settled in on Apple options. This was the first and last time I used mini options. In total I spent $2,800 in capitol for options. !,400 I spent on 3 or 4 regular Apple options. Then I spent equal amount on Apple "Mini" options. This was when Apple was trading below $400 if memory serves true. Well no sooner that 10 minutes after I had completed my order and was filled on those calls? Some guy named Carl Ichan came out and made his first "Famous Apple Tweet" LMAO. I got an instant $20 plus move on the stock. My Calls I had just bought? Exploded as they were now deep in the money. On the regular Apple options I instantly made several thousand dollars? You know what I made on those Mini's? After Commissions and such it was a few hundred bucks. I was so pissed and felt just ripped off. So I have never touched a "Mini" again. Why would I right? With that kind of move and you still cannot make any real money? Forget about it. Minis are Dead to me...The VIX flirting with $11? I wish I bought some calls today too. LOL...So If I do not have a futures account. What is best way for me to hedge using Volatility? Please help a hopeless Bull who wants to get into insurance.:) Thanks for all the insight and education!

Jul 11 2014

51mins

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Rank #9: 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 #10: Options Bootcamp 43: Options & Dividends

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Basic Training: Options & Dividends

  • How do option holders collect dividends?
  • How do derivatives impact options?
  • What happens to call and put prices when dividends enter the equation?
  • If you are an options holder what must you do to collect a dividend?
  • What are dividend plays and how do they work?

Mail Call: International trades, closing positions, and more

  • Question from Glenn Baker - Question for Options Boot Camp I've been listening to Options Boot Camp since the first episode & have been listening to the Option Block for about 2.5 years. I currently have a Schwab account where I primarily buy mining stocks. I would be interested in possibly switching to Sogotrade for the lower commissions. Does Sogotrade allow you to buy stocks on Canadian exchanges? Thanks and I really enjoy the show."
  • Question from Nick Snow - Hello. First, thanks for all the shows. I used to listen to options insider years ago. Somehow lost the podcast and recently found it again. Good news there is I have been listening nonstop for the last 2 weeks. Second, for the real reason. I have been trading for a while (retail only) and in listening into your shows, particularly Boot Camp. I have heard "close your credit positions, if I had a nickel for every time a person came to me and said this crazy event happened and it wiped me out". I do close my credit positions at $0.20-0.05 every time. But I have wondered if outside of the commission, has anyone ever done a risk reversal? Or roll down to a lottery ticket? E.g. I sell bull put or bear call spread. I go to close the position at 80% of my profit and there's a day or two left. If I just closed my short leg and left the long on, or even just swapped my short leg for a lower short now making my spread a debit albeit a supper cheap debit spread lottery ticket. I could capture those freak events that you always talk about. By my count in options boot camp I would have 128 nickels for those freak events mentioned. :) Any thoughts? Am I missing something? Sincerely yours.
  • Question from Abe - Can you make an episode on how to repair losing options trades? I enjoy listening to your show, it keeps me going while I am slaving the night shift at work. Thank you!
  • Question from Greg S. - I am looking for some advice from an experienced options professional regarding stock replacement using American-style calls. Really the question comes down to- for a higher dividend yielding stock, should I be buying a LEAP or rolling out approximately every three months after exercising very close to expiration and capturing each dividend? I get that the dividend lowers the price I pay the longer dated the options are, but does not reflect as much as if the options were available as European-style. It seems that if the dividend yield is high enough, the American style can't fully compensate the option holder for the missed dividends as the value can't drop below intrinsic value. Does this call for the shorter term options to capture each dividend? The caveat seems to be that the roll out should cost more extrinsic value on ex-dividend. Since I have a buy-and-hold objective, euro-style or warrants would be ideal to avoid transaction costs, but again, not available. So far, I have been rolling an ITM call option position on a relatively high dividend yielding (5-7%) stock I have wanted concentrated exposure in as part of my overall portfolio but limited risk. It makes regular scheduled quarterly dividend payments and the timing of the annual increases is known to occur in Q1 each year. Well just yesterday (day before ex-div for my stock), I figured I would skip the dividend capture and roll out the May contract to the August one cheaper than I could today because today it trades ex-dividend. I confirmed this using the CBOE calculator, holding price constant. It showed the time value paid to roll should have been more today due to trading without the dividend vs. yesterday. Though just eyeing the bid x ask spread it didn't appear to do so by much and implied volatility looked to be the same.

Apr 28 2014

57mins

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Rank #11: 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 #12: Options Bootcamp 26: Calendar Spreads

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Options Bootcamp 26: Calendar Spreads

Basic Training: Calendar Spreads

This builds on the knowledge from episode 13 "Basic Spreads" and episode 14 "Advanced Spreads" from December.

  • What is a calendar spread?
  • Why would you want to use a calendar?
  • Calendars are much more complex that basic textbooks tell you.
  • The delicate balance between gamma and volatility in a calendar trade.
  • Can't use P&L diagrams
  • How do you manage a calendar?

Jul 19 2013

1hr 1min

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Rank #13: 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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Rank #14: Options Bootcamp 54: The Great Theta Debate and More Listener Questions

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Mail Call: Listener questions and comments

  • Comment from Max_p24 - One of the best podcast for option trading. They have amazing Bootcamp for option beginners.
  • Question from Brian Collamer - Back in October I sent this question and I see you ran with it in a couple of other shows: “You mentioned that when selling options the fastest theta decay occurs in the 45-30 day range. I thought that was only true for ATM options? Do OTM options decay the fastest at 60-70 days and then kind of flatten out?” In each show you had asked where I had seen/heard this. LiveVol blog and forum. Thanks for the great content! PS: Futures Roundtable needs to be twice a month IMHO.
  • Question from Imbroglio - If I exercise a call option what happens - do I just hit a button and the stock hits my account? Or does it take some time? When do I actually get the stock? If I want to collect a dividend do I need to exercise a few days early in order to get the stock in time to collect the dividend?
  • Question from Angry Bunny - What the hell is a front spread? How does it differ from a back spread? Who the hell comes up with these names? They seem to make no sense.
  • Question from Neal Tompkins - How do I know when an option is going to be less liquid? What are some good suggestions for dealing with less liquid options?
  • Question from Jason Dague - I am long AAPL from about $99, and have a protective put on right now at $105 for July. When do you know whether to roll your put up? I am obviously down on the put by ~%70% from where I bought it in November.
  • Question from Jay - If the market is really falling out of bed what are some good strategies to take advantage of that movement while also minimizing option decay?
  • Question from Matt Dilks - Hi, I have just listened to Mark on Topstep trader, and missed the questions. But could you recommend which company/broker to get a sim/demo account to get to grips with trading options? Any advice would be greatly appreciated.
  • Question from John D. - Hi, Love your show. You guys do a great job. Keep up the good work. My question...If I am looking at a pair trade (e.g. long Facebook, short Twitter), obviously I can do it by buying/shorting the stocks. I was trying to figure out if there is any way to effective do the same thing with options what the advantages might be, if any. I thought of doing a synthetic long/short, but did not see any advantage since I will be naked short an option for both names... but maybe margin treatment is different? Long call on one and log put on the other does not seem to make sense since I am pretty much guaranteed to lose the premium on both those positions. Is there another or better way to structure this type of trade using options? Thanks.

Feb 27 2015

57mins

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Rank #15: Options Bootcamp 60: Adding Weeklys to Your Income Strategy

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Basic Training: Theta. A review of Theta and its impact on income trading. New Study: An analysis of index option writing with monthly and weekly rollover - First comprehensive study to examine strategy benchmark with traditional stock, bond indexes incorporating weeklys options.

Mail Call: Listener questions and comments.

  • Question from KDDiddy - I want to protect a stock position with puts at a strike 2% below market but there is not a strike there. I thought of dividing my purchase between two different strikes to get an average of 2% but I do not want all the guys to call me stupid. Mom always said I was a genius but it is hard to feel like one when buying something called a Put Stupid. What should I do instead? Regards, Mr. Smart
  • Question from LATom - Can the drill squad explain covered strangles vs. covered calls? What is the difference?

Feb 16 2016

55mins

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Rank #16: 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 #17: 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 #18: Options Bootcamp 42: Legging & Protecting Gains

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Basic Training: Legging and Protecting Gains

  • What is legging?
  • How do you leg into a vertical call spread?
  • When should you leg a spread? When should you not leg a spread?
  • How do you protect you gains?
  • How do you lock in a gain? Buy a protective put, but watch out for the cost.
  • Do I write a call ITM, OTM, or ATM? Remember, a covered call is no a defensive play.
  • How do you leg into a collar? How do you create a collar plus?
  • How does your strategy change during a crisis?

Mail Call: Hey Recruits, it seems you have some questions!

  • Question from TelStorm: This question is for Options Boot Camp. Please do discuss when to adjust long protective put with stock. When to sell put vs. just close the position? Do you roll to a lower strike or to a put spread? Thx.
  • Question from Alexander Samuels, Chicago - You would never know you guys are Chicagoans from the way you complain about the weather! But seriously, can you discuss which options tools you guys prefer for analytics and trading? Do you have certain products you use every day? Are they in the price range of a basic options trader? I trade maybe 20 times a month, mostly income trades -short puts, wheels, covered calls, etc. What should a guy like me be using?

Mar 27 2014

59mins

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Rank #19: 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 #20: Options Bootcamp 41: Advanced Adjustments

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Basic Training: Advanced Adjustments

  • Spread adjustments
  • When should you adjust a spread?
  • Vertical spreads. Long and short straddles.
  • Long and short butterfly adjustments
  • When should you adjust your flies?
  • Iron butterflies and iron condors.
  • Calendar spread adjustments
  • When should you adjust basic horizontal one-month calendars?

Mail Call: The drill instructors will now take your questions

  • Question from Dr. Anthony - I enjoyed you episode on the wheel trade. I would like to know more about your typical use case for wheel trades, particularly when it comes to the second leg. Do you write an ITM or ATM call, hoping for the stock to be called away quickly, thereby allowing you to begin the process again? Or do you prefer to write an OTM call and attempt to capture some appreciation in the underlying, while risking losses in the stock?
  • Question from Nik_Miner - How much money should I keep in my account for adjustments? Does 10-15% seem reasonable in case I need to roll or trade stock against my options?

Mar 06 2014

1hr

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