Rank #1: Options Playbook Radio 205: GOOGL Skip Strike Butterfly
Welcome to Options Playbook Radio
On this episode we discuss:
- A review of our earnings trade in NFLX
- A complete breakdown of our new earnings skip-strike butterfly in GOOGL.
Apr 19 2018
Rank #2: Options Playbook Radio 167: Trading Options After Hours
It's huddle time again on Options Playbook Radio. This is when Mark and Brian answer listener questions. Do you have a question that you want answered on a future episode? Send them to Brian at firstname.lastname@example.org, or to the Options Insider at email@example.com.
The Bobster wants to know if options can be traded outside of U.S. trading hours.
- Short answer: yes and no
- Longer answer: liquidity issues, wider spreads, other nuances.
- Should there be regular after hours?
- Should it be limited to a number of names?
- Index versus equity options
Nelly2 wants to know about assignment. Just so I am clear on the spread assignment thing. If I am in SPX, then I just get cash if the index closes inside my spread. But if I am in a stock, then I get the stock?
- Guidelines for cash-settled versus regular settled
- Sellers and buyers rights and obligations
Jul 20 2017
Rank #3: Options Playbook Radio 175: When, and Which, Option to Buy?
In this episode, Brian covers:
- Using a pricing calculator to review different scenarios
- Buying an out-of-the-money option
- What happens to delta?
- Looking at probability
- When time is your ally
- When to buy an out-of-the-money option
- How to get low time premium
- Closer to expiration = higher delta
- What about at-the-money options?
- When to buy, and when not to
Sep 14 2017
Rank #4: Options Playbook Radio 184: AAPL Covered Call
The holiday season brings to mind covered calls.
In this episode, Brian covers:
- Last week's trade in DIS
- What did we want to happen?
- What DID happen?
- Avoidint the stupid award
- The holidays are coming, that means shortened trading weeks
- It might be a good time to trade covered calls
- Getting "free" time decay with holidays
- Where is AAPL?
- Selecting strikes
- And more...
Nov 16 2017
Rank #5: Options Playbook Radio 180: Huddling Up on Low VIX, Naked Puts and More
Mark and Brian are back to answer listener questions.
- 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 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 Andrew Lane - I tried searching for options on the major advisor news sources including Pensions & Investments and Financial Advisors magazine and came up blank. Why do these mainstream outlets ignore this space? Where should I go to learn more about options for advisors?
Oct 19 2017
Rank #6: Options Playbook Radio 173: Understanding the Greeks, Part One
Now that earnings season is over it's time to get back to basics: the Greeks. You can find an entire chapter on Greeks in The Options Playbook. This is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.
In this episode:
- A review of last time
- Using the Greeks
- What does a delta do?
- Meet the Greeks in The Options Playbook
- As expiration approaches, what happens to delta? For that, you need gamma
- What about theta?
- Delta when a contract is in-, at- or out-of-the-mooney
- Delta moves slower than other Greeks
- You can't have slow time decay on a fast moving option
Aug 31 2017
Rank #7: Options Playbook Radio 170: Getting out of Straddles
It's time for listener questions on Options Playbook Radio. Do you have a question that you want answered on a future episode? Send them to Brian at firstname.lastname@example.org, or to the Options Insider at email@example.com.
In this episode Mark and Brian discuss:
- Question from LesNod: How the heck do you actually get out of straddles? One side of a straddle is always a loss!
- Question from Jelly: Can I buy longer-term options than LEAPS?
- Question from Kim D.: How high to rates need to go before I need to worry about rho?
- Question from Axel D.: Why do they update open interest only once a day?
Aug 10 2017
Rank #8: Options Playbook Radio 176: Long Spreads
In this episode, Brian explores long spreads. Specifically, long call spreads and long put spreads. These can be found on pages 60 and 62, respectively, of The Options Playbook. This is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.
- The dynamics of spread trading
- Using AAPL as an example
- What to consider regarding forecasting and timing
- The value of the spread does not provide quick rewards
- Selecting strikes
- What is the maximum risk?
- What is the maximum reward?
- Always look at how much time premium you have
Sep 21 2017
Rank #9: Options Playbook Radio 48: Theta, Revisited
Options Playbook Radio 48: Theta, Revisited
In this episode, Mark and Brian are back and taking on your questions.
In this episode, they discuss:
- Theta data
- When decay flattens out
- Riding the road of premium decay
- What is the optimal ratio of theta versus gamma?
- And more…
Feb 19 2015
Rank #10: Options Playbook Radio 227: COST Backspread Capturing Earnings
Costco (COST) has earnings coming up next week. We're going to do a backspread with puts, or a ratio volatility spread. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.
- A review of last week
- COST will announce earnings on 10/4
- What does the chart say?
- Let's do a backspread with puts
- What's the expected move?
- What's our take?
- Selecting the expiration and strikes
- What if we're wrong?
- What if we're right?
- What is the maxium risk? Reward?
- What happens the farther you go out in time?
- Does it work for every underlying?
Sep 27 2018
Rank #11: Options Playbook Radio 44: Combinations
Options Playbook Radio 44: Combinations
Welcome back to Options Playbook Radio, where today we’re discussion combinations, or combos. If you have the book, we’re on page 76 (long) or 78 (short). For those of you following along online, you can find it on OptionsPlaybook.com
Today Brian discusses:
- Before we get to combos, let’s first discuss synthetic relationships
- What are synthetic positions?
- Why create them?
- How to create them?
- What do the pros do?
Jan 22 2015
Rank #12: Options Playbook Radio 15: Play #1 - The Long Call
Options Playbook Radio 15: Play #1 - The Long Call
We are on page 40 of the hardcover version. Otherwise, look for “The Long Call Strategy” on the Kindle or online version.
Today Brian discusses:
- How the long call strategy works.
- Basic examples of a long call.
- Time components and implied volatility.
- In the money vs. out of the money vs. at the money contracts
Jun 12 2014
Rank #13: Options Playbook 4: Volatility & Probability
Options Playbook 4: Volatility & Probability
Follow along at optionsplaybook.com, or go to page 14 of the book.
- The definition of implied volatility
- Pricing models and assumptions
- How to determine implied volatility
- Non-directionality of implied volatility
- Impact of time on implied volatility
- Impact of events on the price of an option
Options involve risk. Please refer to tradeking.com/ODD to review additional risks involved with trading options.
Mar 20 2014
Rank #14: Options Playbook Radio 187: Huddle Up
Mark and Brian are back to answer listener questions. In particular:
- 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 The Financial Grynch - Do you REALLY reckon long options is profitable?
- Question from Lonesome - Could you explain Theta and how it helps/hurts options traders? Should anyone ever buy OTM options?
- Question from Tom Matt - What happened to minis? Are they ever coming back?
Dec 14 2017
Rank #15: Options Playbook Radio 92: Adjusting Positions
In this episode, we are discussing how to adjust positions. You can find this information on page 104 of The Options Playbook.
Brian goes into more detail with:
- How to adjust a put butterfly?
- How was the butterfly set up on Monday?
- What was the direction?
- What was the concept of this strategy?
- What has happened since the trade was put on?
- How, and when, to make adjustments
- What do we want to happen?
- Do you want to see a video of what was just discussed? Send Brian an email through Facebook, or go here.
Dec 23 2015
Rank #16: Options Playbook Radio 53: Butterfly Spreads
Options Playbook Radio 53: Butterfly Spreads
Today in Options Playbook Radio, we’re discussing butterfly spreads. For those of you with the hardcover version of the book, this can be found on pages 103 and 104. You can always find it on OptionsPlaybook.com as well.
Today, Brian discusses:
- What do we mean by legs?
- How are butterfly spreads entered as a trade?
- Looking at an example using XYZ calls
- Where do you start?
- What is the net debit?
- What is the max risk?
- What is the max gain?
- What is the break-even?
- Look at this as two spreads
- And more…
Mar 26 2015
Rank #17: OPR 284: Boeing Review Plus Getting Bullish In SPY
OPR 284: BA Review Plus Getting Bullish In SPYToday we look back on the performance of our Boeing trade and then explore ways to get bullish in SPY using long calls.
Oct 31 2019
Rank #18: Options Playbook Radio 81: Iron Butterflies, Continued
Dan Sheridan is back with Brian, and today they are discussing how to set up an iron butterfly on the RUT. You can find this on page 106 of the Options Playbook, or on OptionsPlaybook.com.
- Looking at a two-week iron butterfly in RUT
- Where has RUT been for the last six months?
- Setting things up, and why might width be different?
- What is the risk?
- Why do this in a volatile market?
- How and why is this repeatable?
- What is the plan?
- And more
Oct 08 2015
Rank #19: Options Playbook Radio 190: FCX Long Calendar Spread
Welcome to 2018! Let's jump right into strategies, specifically around earnings. In this episode, we are looking at a long calendar spread with puts in FCX. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.
- Why are we picking FCX?
- When does FCX announce earnings?
- What is the implied volatility?
- Why are we expecting a major announcement?
- Why pick a calendar around earnings?
- Defining a calendar spread
- Remember, if you do this, you're long implied volatility
- Caveats and other considerations
- Setting up the trade
- What is the cost? Risk?
- What do we want to happen?
Jan 04 2018
Rank #20: OPR 274: Huddling Up About Risk-Free Credit Spreads, Young Trader Education and More
OPR 274: Huddling Up About Risk-Free Credit Spreads, Young Trader Education and More
On this episode, Brian and Mark huddle up to answer your questions about:
QUESTION Erik Norstedt: Just listened to the OPR 272 episode and had a question. When you say you want to "Do the entire trade at the midpoint for even" - what exactly do you mean? Thanks.
QUESTION FROM Welch Kwong: Huge fan of your weekly podcast. I've asked a question before and you guys were extremely helpful with your response and expertise. I have another question wondering if you can help. Let's say the infamous underlying XYZ is at $50 on a Monday, and I sell a 60/65 Call Spread @ 1.00 exp Friday (5 days). I get 1.00 credit and my risk is 4.00 potential max loss per spread. If I continue to roll position out for a credit, rolling up I dont think really matters for this question, but with enough rolling and credits to add up to 5.00, would that mean that the trade overall was at zero risk (not taking into account commissions)??
QUESTION FROM Bob Randall: Brian, I have a 12 year old niece with a very bright mathematical mind that I am trying to get into options. I'm looking for either beginning games or age appropriate books or videos to teach her about options. I also have two editions of the Playbook and thought I might reach out to you for any suggestions.
RELATED QUESTION FROM STEVEN PATEL: Do I need to be a math whiz to understand this options stuff?
QUESTION FROM CHARLIEC: Quick Q for the show - What’s the weirdest thing you’ve seen in the options market?
Do you have a question that you want answered on a future episode? Send it to Brian at firstname.lastname@example.org, or to the Options Insider at email@example.com.
Aug 22 2019