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...
Oct 31, 2017•59 min
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 a...
Oct 18, 2017•50 min
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 M...
Jun 22, 2017•1 hr 1 min
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 ...
May 05, 2017•1 hr
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: One group consists of individual equities and the similar group of exchange traded funds (ETFs). 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 ...
Sep 22, 2016•59 min
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 ques...
Jul 29, 2016•58 min
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 Russ...
Apr 19, 2016•49 min
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...
Mar 03, 2016•1 hr 2 min
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...
Feb 16, 2016•55 min
Basic Trading: Second Order Greeks Question from Brian F. - My question is for Dan. I listened to the Boot Camp shows, and recently had a question about gamma. Imagine my surprise when I learned there are other secondary greeks and even tertiary greeks. What this? Are you holding some greeks up your sleeve Mr. Black hat? So my question is what are these greeks, but more importantly, who uses them and why? Does a retail mope like me need to know about these greeks? Question from Charlie C. - Do s...
Jan 14, 2016•57 min
Options 101: Today we are joined by Dan Cook from Nadex. He walks us through the following: What is a binary option? How does the pricing work vs. standard options pricing? How do the ticks work? Is there a multiplier? Does the price represent the pure probability of an option expiring in-the-money? How does expiration work? What about the final minutes around expiration? What is the farthest out you can trade a binary on Nadex? The Greeks: Binaries vs. Standard options Which underlyings offer b...
Oct 30, 2015•59 min
Mail Call: The drill instructors will take your questions now. Question from TennisGr8t - Can you give examples of managing positions using Greeks and is it a good strategy? Your show is awesome. Question from Pedro Indio - Discovered podcast within the last week and I am up to episode 8. I understand how overall market and industry direction might influence a stock direction. Is there something similar, regarding volatility that can be observed, where an overall sentiment might influence or wor...
Aug 31, 2015•43 min
Options Bootcamp 56: Options Trade Tags Demystified Basic Training: Today's guest is Andrew Giovinazzi, of Option Pit, Option Block, and Options Oddities fame. Mark, Dan and Andrew discuss options trade tags, including: Regular Spread Block Trade Inter-market Sweep Combo Cancel SoldLast Price Variation Buy Write Mail Call: Listener questions and comments Question from Vegan - What oil products do airlines use to hedge their crude exposure? Question from Alan - Why is rolling a position so promin...
Apr 30, 2015•59 min
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 m...
Mar 26, 2015•56 min
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?"...
Feb 27, 2015•57 min
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 ...
Feb 02, 2015•52 min
Basic Training: 2014 Year-in-Review/2015 Preview What option strategies worked in 2014: put credit spreads, IV overpriced throughout the year, "Wheel of fun." Things to learn from 2014 - Do not get married to a single strategy. Misperceptions of 2014 - VOL/VIX was cheap. Despite "low volatility" options volume was still very strong in 2014. Tempting to believe that OTM call buyer did well in this extended market. Fed tapering - When is it likely to happen? What is likely to happen in the market ...
Dec 31, 2014•52 min
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...
Nov 26, 2014•48 min
Mail Call: This episode is dedicated to our listeners. Question from Neil Filasco - What sets do you recommend to hedge my retirement accounts, in clouding my defined contribution plans? The pickings in these accounts are relatively slim and there are no options to speak of. As one of the newly enlightened options masses, I thank you for bringing me into the fold. Question from Chandra Bajpai - Hey Mark, I love the Radio show...I find myself wanting the next show because I something new every ep...
Nov 25, 2014•50 min
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: Cal...
Nov 19, 2014•46 min
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...
Jul 30, 2014•42 min
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 protecti...
Jul 11, 2014•52 min
Roll Call: Bringing in the Big Guns Our guest today is Jim Bittman, Senior Instructor at The Options Institute. He discusses: What sort of content/classes our listeners can access at The Options Institute What the number one options question is that he receives from students What is the number one options mistake and/or misperception students may have about the options market? What changes did he make in your recent renovation at The Options Institute, and what can our listeners expect from your...
Jun 16, 2014•54 min
Basic Training: The world of mini options What are Mini Options? (Just celebrated first birthday last month) Where do they trade? Which underlying names trade? What is the use case? When should you use them? When should you not use them? Pros vs. Cons: Unfortunately we cannot give many pros for mini options as of now. Mail Call: Listener questions and comments. Question from Maximus - Hi Mark, Hope you have been doing well. Following up in connection with my question in the email below, since I ...
May 12, 2014•54 min
Mail Call: All mail. All day Question from David Medley - I have listened to about half of the 40+ episodes. I do not recall hearing anything about how to get started professionally. I am a 38 year old software developer looking to change industries. The positions that seem to be open to me are commission-only and require a significant cash "Capital Contribution". I am actually OK with this. Some positions have hefty training and/or desk fees, which seems a bit scammy to me. Either way, it's not...
May 05, 2014•54 min
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 be...
Apr 28, 2014•57 min
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 ...
Mar 27, 2014•59 min
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 ty...
Mar 06, 2014•1 hr 1 min
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 th...
Feb 21, 2014•56 min
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•58 min
