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Rank #107 in Investing category

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Investing

The Option Alpha Podcast

Updated about 1 month ago

Rank #107 in Investing category

Business
Investing
Read more

We are on a mission to help you make smarter investments and trades – it’s just that simple. So if that means pulling back the curtain on everything you know (or thought you knew) about options trading and the stock market then so be it.

Read more

We are on a mission to help you make smarter investments and trades – it’s just that simple. So if that means pulling back the curtain on everything you know (or thought you knew) about options trading and the stock market then so be it.

iTunes Ratings

621 Ratings
Average Ratings
577
20
6
8
10

Option alpha is a great resource!

By Ben1234567 - Apr 21 2019
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Kirk does a great job simplifying a difficult subject. His free resources are one of the best.

Thank you for all your hard work.

By Traderjoha - Apr 17 2019
Read more
Amazing information. Bless you.

iTunes Ratings

621 Ratings
Average Ratings
577
20
6
8
10

Option alpha is a great resource!

By Ben1234567 - Apr 21 2019
Read more
Kirk does a great job simplifying a difficult subject. His free resources are one of the best.

Thank you for all your hard work.

By Traderjoha - Apr 17 2019
Read more
Amazing information. Bless you.
Cover image of The Option Alpha Podcast

The Option Alpha Podcast

Updated about 1 month ago

Rank #107 in Investing category

Read more

We are on a mission to help you make smarter investments and trades – it’s just that simple. So if that means pulling back the curtain on everything you know (or thought you knew) about options trading and the stock market then so be it.

Rank #1: OAP 090 : The Art & Options Strategy Behind Quick "Earnings Trades"

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Show notes: http://optionalpha.com/show90   We're now in the heart of earnings season for the current quarter and with hundreds of companies set to announce their performance, we're presented as options traders with tons of opportunities to profit from the volatility crush that occurs after an announcement. But these fast (and often violent) moves in the underlying stock in the session following the announcement can often scare and confuse investors trading options.   In today's show, I want to walk through my strategy for filtering and finding good stocks to trades, strategies we like to use and how to set them up, as well as my thoughts on exiting trades shortly after the market open. If you've ever wanted to jump in and make some earnings trades, you'll want to tune in and take lots of notes. Don't forget, we've also got a free course and PDF guide to earnings trades available for members inside our education platform.
Apr 24 2017
48 mins
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Rank #2: OAP 004 : How To Hack The Options Trading Learning Curve In 3 Months

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

Oct 25 2014
24 mins
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Rank #3: OAP 087 : The 3 Option Adjustment Principles You Must Know Now

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Show notes: http://optionalpha.com/show87

Losing trades are part of the game - they are going to happen and it’s a reality we must all face. And I believe what sets really great traders apart from those who are average at best is the ability to cut a loss by making smart adjustments. Adjustments that reduce risk and extend the trading timeline.   In today’s show, I’ll cover the 3 option adjustment principles you should follow if you’re considering adjusting a short premium, option selling strategy like an iron condor, iron butterfly, strangle, straddle, etc. These guidelines will help make sure you’re always focusing on the most important aspect of trades adjustments which isn’t to make money, it’s to cut the size and magnitude of the loss down as much as possible.
Mar 20 2017
14 mins
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Rank #4: OAP 135 : You Don't Need A Degree In Financial Engineering To Understand How Implied Volatility Works

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

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

Jun 20 2018
45 mins
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Rank #5: OAP 061 : Interview w/ Cameron Skinner - How He Earns 22% Annually Selling Options Every Day

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Show notes: http://optionalpha.com/show61   I’m just going to come right out and say it - today’s show is going to blow your mind. Not because we are talking about some crazy complicated strategy or options pricing model, but because we’re talking about a dead simple system for selling options every day that generates 22% per year since 2009. And what’s so fascinating for me, the host of the show, is how calm and cool our special guest is talking about his strategy. It’s just so mechanical and systematic it’s almost boring (well not for me but maybe some people might think so).   In today’s show I’ll be interviewing an incredible trader, real estate entrepreneur and patriot. You’ll hear how this former Army Officer who served in Iraq in 2003, subsequently awarded a Bronze Star, used his “options” experience in real estate to start selling covered calls. Eventually he transitioned into selling credit spreads on the major indexes and continues to generate consistent income with an annual average return of 22% per year. So yeah, you should listen to today’s show - and of course forward it to at least 3 other people you think need to hear it right now.
Sep 12 2016
36 mins
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Rank #6: OAP 101 : The Ultimate Guide To Profitably Trading Options Full-Time

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

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

Aug 02 2017
35 mins
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Rank #7: OAP 083 : The Casinos Edge & Why They Spent $45 Every Hour To Keep You In Your Seat

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Show notes: http://optionalpha.com/show83

A casino's edge ranges from 0.5% for blackjack to as high as 17% for some slot machine games. Now, of course, this edge may or may not play out on the first, second, or tenth roll of the dice. But they are not in it for the short-term game. You see, the casino doesn't have to beat every player every time. They just know that they'll win their mathematical edge so long as enough bets are placed each year.   It's precisely why casinos offer huge incentives to get you to come back with free show tickets, free meals or even free hotel rooms. It's why the force table limits on how much you can bet on each hand and why they give you free drinks for playing. While you might think it's just them being nice, it's not. It's an investment they know pays huge dividends. In fact, on average casinos spend up to $45 each hour to keep you sitting in your seat and betting money.   Now, I frankly don't care if you like or hate casinos because the reality is that it's an insanely profitable business model based on simple math and expected outcomes. As options traders, we can learn a lot about how we should run our own trading business from casinos. In today's show, I want to walk through some of the most important takeaways that you can apply right now to your trading system and invite you to open your mind and try to see the big picture strategy.
Feb 13 2017
29 mins
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Rank #8: OAP 127 : What Contract Month & Option Strike Price Should I Buy Or Sell?

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Show notes: http://optionalpha.com/show127

You're ready to place an option trade and you're confident the stock is a good candidate. Now what? With dozens of contract months and hundreds of option strike prices to choose from - which ones do you select? In today's podcast, we'll help bring some more light to the "dynamic approach" we now use at Option Alpha for each and every trade we place. The framework and concepts around dynamic contract month and option strike price selection can help dramatically improve your long-term performance and reduce portfolio volatility.

Apr 23 2018
24 mins
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Rank #9: OAP 079 : How To Trade Calendar Spreads – The Complete Guide

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

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

Jan 16 2017
43 mins
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Rank #10: OAP 084 : Why We Ladder Or Stack Option Trades Over Time & Price

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Show notes: http://optionalpha.com/show84

For years we’ve talked about the need for increasing your trading frequency. In today’s podcast, we want to re-introduce the concept of stacking or laddering option trades over time and price. More importantly, we’ll talk about why our extensive backtesting (and current experience) proves that when you break down your trade entry into smaller and smaller chunks, the overall performance of the trading system increases dramatically.

Feb 25 2017
23 mins
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Rank #11: OAP 138: The "Expected Probability Paradox" For Options Traders

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

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

Aug 06 2018
53 mins
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Rank #12: OAP 003 : Learning How Options Work With Simulated Real Estate Deals

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In this session of The Option Alpha Podcast I'll cover some key foundational concepts about Call and Put options contracts by highlighting a classic simulated real estate deal.

Oct 24 2014
22 mins
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Rank #13: OAP 150 : How To Manage Your Money & Generate Wealth The Right Way

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Show notes: http://optionalpha.com/show150

As much as I love options trading and following the financial markets, I enjoy the challenge and process of building wealth. I think about wealth building as a 3-step process in broad terms, possibly in the shape of a pyramid even. And since it's our 150th show, I figured I would take a slightly new angle in today's podcast and discuss what I believe are the most valuable insights I can offer from my own experiences and research on how to manage your money and generate wealth. Plus, we'll use this 3-step or 3-part approach to help frame the conversation as best we can.

Dec 21 2018
30 mins
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Rank #14: OAP 060 : Warren Buffett's $5 Billion Dollar Options Trading Strategy That Everyone Ignores

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Show notes: http://optionalpha.com/show60     What if I told you that Warren Buffett, yes that one, is actually just an options trader in disguise? Actually, he’s not disguising anything since his entire strategy and philosophy is all publicly available and linked below. But, that the $5 billion dollar options trading strategy he is using right now has the exact same core methodologies that we use here at Option Alpha, i.e. option selling.   Unfortunately, this strategy and business setup is not commonly talked about in the media. Everyone ignores the 50,000 short put options he sold on KO or the 3-month short puts he sold before acquiring Burlington Northern Santa Fe. They are big trades that tell us a lot about the way he uses options but the media won’t cover those because it’s not “mainstream” enough to reach the masses. Lucky for you, we’re covering it today for you.   In today’s show, I’ll help you understand why his most profitable business, which grew from $41 billion to $88 billion, is the insurance business and how you can apply the same principles to your own investment portfolio. Plus, I’ll walk through his biggest option trade that occurred during the height of the 2008 market collapse in which he sold short put options on 4 major market indexes around the world. If this show is even remotely helpful today, please consider sharing or sending it to just one friend or colleague you think might benefit from listening.
Sep 05 2016
32 mins
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Rank #15: OAP 117 : Let's Talk About "Deltas" For Options Trading

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Show notes: http://optionalpha.com/show117

One of the most popular and widely used options greek is Delta. And while I believe that you can't necessarily learn about option pricing and option greeks in a vacuum as they all work together to represent potential price action for changing market conditions, having a solid understanding of how Delta works is important both in entering new positions and managing your basket of trades in a portfolio. Today's show dives a little deeper into the lead greek and covers both a basic understanding of what Delta is and how it works, plus some more high level insights into how I used Delta to enter our recent trade in XLE.

Jan 22 2018
29 mins
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Rank #16: OAP 100 : The Profit Matrix - The Game-Changing Report On The Best Option Strategies For Any Market

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Show notes: http://optionalpha.com/show100   Not only is today special because we're releasing our newest research report called The Profit Matrix but also because as soon as this show goes live we'll have crossed more than 1,000,000 downloads on the podcast. Crazy coincidence but it's true and very humbling, so thank you to all of you who have supported and listened over the last couple years. In this special show, we're going to talk in-depth about our new game-changing research report in which we analyzed and compiled results from more than 21 million backtested options strategies. Plus, I'll answer the biggest question that came out of this body of work on how we should (or shouldn't) change the way we trade options in the future.
Jun 16 2017
43 mins
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Rank #17: OAP 053 : The 1 Hour Per Month Options Strategy That Beat The S&P 500 by 24%

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

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

You see, I believe you work too dang hard for your money and it doesn’t take a fancy financial planner or sophisticated mobile app to help you generate higher returns with less risk. All it takes is less than 1 hour per month. Yes, less time that it takes you to aimlessly scroll through your Facebook or Twitter feed.   Well, you can stop day dreaming because it’s a reality and in today’s podcast episode I’ll walk through the exact strategy that beat the market. No fluff. No smoke or mirrors; just cold hard facts. I’m sick and tired of people trying to tell me that options trading doesn’t work because today’s episode crushes every one of these unsubstantiated myths about trading.   Listen in and if you think this episode would be helpful to someone else, please help us spread the word here at Option Alph by sharing it with them. I mean how often can you share something online that actually helps someone make more money, with less risk? You just might become their new best friend!
Jul 21 2016
24 mins
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Rank #18: OAP 068 : VIX Index - How To Trade Volatility w/ Mark Sebastian from OptionPit.com

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Show notes: http://optionalpha.com/show68   Naturally, if you’ve started trading options for any reasonable amount of time you’ll run across the VIX index. Or as it’s commonly referred to, the “Fear” Index. And while the concept of tracking and trading volatility with the VIX might sound intimidating at first, trust me, it’s not all that complicated and just requires a little common sense.   In today’s podcast, we’ve brought on a very special guest, Mark Sebastian, a former floor trader, hedge fund manager and the guy behind OptionPit.com. What’s great about Mark is that not only does he have a lot of experience as an options trader, but he’s also got a lot of specialized knowledge when it comes to the VIX and volatility products like VXX, UVXY, and VXZ that I know you’re going to love.   During the show, we’ll talk about the history of the VIX, how the index is priced, how the VIX futures term structure accounts for mean reversion and some simple strategies you can use to trade volatility with a higher probability of success. So, don’t be afraid to dig into this podcast this Halloween - Mark and I have some yummy volatility treats waiting for you (okay I just had to throw that in there given the release date).
Oct 31 2016
50 mins
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Rank #19: OAP 034: The Shocking Truth About Becoming A Consistently Profitable Options Trader

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Being a consistent, profitable options trader doesn't take much.

In fact, I'd even go as far to say it takes very little time and effort on a weekly basis. Yet, we've been told in the media (and through other publications and websites) that you have to have lots of money, trade fast or day trade to make it in this business.

It couldn't be further from the truth.

In today's episode, I want to help show you what it really takes and how you can start to implement simple tweaks to your daily routine to become more consistent and profitable.

Plus, we'll cover a recent trade we made in APC with a 70% chance of success selling options far away from the current stock price.

Sep 09 2015
25 mins
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Rank #20: OAP 007 : Why Implied Volatility Is The Key To Your "Edge" Trading Options

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In this session of The Option Alpha Podcast we're going to have a very advanced conversation about implied volatility (IV) and why understanding IV is critical to gaining and edge in the market. Plus we'll use a very specific example with YHOO and HAL both that have IV of 32% but when we apply IV percentiles we find out that you should be trading these stocks completely different. Buckle up - this one is intense! 

Nov 13 2014
32 mins
Play

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