Options Boot Camp 375: 0dte Options and the Dangers of Contra-Exercise

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Tasty Trade Incorporated is a registered broker dealer and member of FINRA, NFA, and CIPIC. Fall in boot. It's time to get into Peak Options trading shape. It's time for Options Boot Camp. All right, everybody. Happy Wednesday. Happy Education Wednesday. Yes, it is time once again. On the network to roll out a little bit of the old OBC. My name, of course, Mark Longo from the Options Insider Radio Network, upon which all

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It's weird that your middle name is that uh is that same area, but hey, you know who am I to judge such a thing, sir? Are you ready to do a little bit of options learning? I am always ready. All right, he's always ready. Let's see what he's ready for, listeners. It is time for a little bit of basic training. Alright boot, it's time to get in line. What you're going to do is learn. You're gonna learn how options work. Do you hear me?

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All right everybody, welcome to basic training and we have a very timely edition of basic training today. In fact, I see our chat is already talking about what is very much germane what we're gonna talk about today, Dan, which is the onset of the new zero DTE era, sir. So now people have been asking for a while when are we gonna get your zero day Nvidia's and your Teslas and all that fun, even iBit.

We were coming into this year, in fact, wondering, would we see them later this year? Would it even happen this year? Would it be next year with all the legal and regulatory rigor morole going on? Well, turns out, Dan, uh the answer is now. We are seeing these being listed as we speak, going out starting next Monday in names like iBit.

And your alphabets and all that fun. Uh, you can start slinging Monday, Wednesday, and Friday. Zero DTE contracts. Mr. P, what are your thoughts on this uh somewhat earth-shattering development in the world of options? Yeah, I I'll tell you, I did not expect it to happen quite this soon. Um, but here we are. So that's pretty exciting. That's ex that's pretty darn exciting.

our chat knows or something, Mr. Dan, because they were already talking about it before the show even started. Uh talking about trading'em. Some folks like the Queen says she's not ready to pull the trigger on him yet. Others like Mr. Unlimited saying he sold some iBit 48 cash secured put. For the second, fourth, and sixth already. So he's already in. He's done the full week already. Yeah. Ha ha.

I like this. When his grandkids ask him where he was when single names launched on Zero DTE, he's going to say he was in the middle of it selling premium. Ha ha ha. You know, that historic day. Grandpapa, where were you when zero day equity options were listed? And it's grandson, sit on my knee. Let me tell you a tale of selling premium.

In the old days on that historic event. You know what? I just came from doing that panel last week where we had the grand options timeline. We talked about all the historic and seismic events. Of the last fifty plus years, Dan, the eighty-seven crash, the two thousand with the ISC electronic listing, of course, the pandemic, all that fun. And I guess we have to add today now to that mix, Dan. What do you think?

Uh yeah, you know, um it might make the list. I mean presuming nothing eventful ever happens again, it might make the You're saying you're not gonna be putting your grandchildren on your knee many decades from now to regale them with tales of the listing of zero DTE single name equity options, sir. How dare you? What kind of grandfather are you? Uh I don't interact with children until they're old enough to talk. That's it.

Your wife told me that. She said you didn't even know you had kids until they were about fourteen, yeah. Yeah, yeah, yeah, yeah.

Well, why are we talking about all this listeners? On top of it being a pretty big event, I know for a lot of you this is the moment you were either looking forward to or dreading, depending on your viewpoint. On zero DTE options. As our chat mentioned, you can now go out and trade the Mondays, the Wednesdays, and the Fridays.

And a whole bunch of names, which surprising some people, including iBit, which I think for a lot of people was an interesting addition. But why are we talking about this today, Mr. Dan? It's because something has come up with the onset of these options. In fact, the first time they were even discussed. This was instantly brought up as a sticking point for us. One of the reasons we didn't have them soon after NASDAQ proposed this back in April or May of last year at the OIC conference.

Which was the contra exercise issue, Dan. There's one thing doing zero-day options for something like uh a cash-settled index like the SPX, because at the end of the day, all you have flying back and forth is cash. So it's not the not a big deal to reconcile those, and it's not really going to maybe cause some issues. But with single name equity options, guess what, listeners? They settle into stock.

So now you have a different scenario. You have a scenario where stock is flying fast and loose and changing hands in the after hours, and that is what gave a lot of people pause. In fact, there were many competing proposals. for these zero-day options on the equity side. Many of them were cash settled because they didn't want to deal with the nonsense of contra exercise. Of course, market makers love that.

Contra exercise option pun intended because it gives them more flexibility in how they manage their risk. It's something most retail options traders. Well a lot of them are unaware of it, but uh a lot of retail options traders really haven't really needed to know about because we had

Expiration once a week, or if you're trading monthlies, less than that. And it wasn't a scenario that came up very often. And most things are automatically exercised now. So you didn't really have to think about it. But nowadays, Dan, when we got

Expiration's popping off three times a week and probably sometime in the not too distant future, every day of the week. It's only a matter of time till they add the Tuesday and Thursday. Now we're gonna have expiration as a daily event. So that gets to this notion, Dan.

of the contra exercise. What are your thoughts in general on contra exercise? And can you remember, Dan, can you remember the last time you issued a contra exercise order? Oh my gosh. Uh I have not issued a contra exercise order in forever ago. Um But yeah, I mean, I guess like with any business uh with any human, right? Like change is something you have to deal with, you know? Yeah. Oh, I've got to change the way I do things. I'm gonna have to hire another person. Uh geez, you know.

And I I guess that's where it all comes from. I remember I mean, you probably remember this, Mark. Remember like originally when multiple listing was a thing and then weeklies and stuff, the the big excuse they used to use then Oh, well, you know, I mean, uh the connectivity, uh, the opraphy, we can't we can't fit all that data in the pipeline. It'll overwhelm the system. It could never work. Inconceivable.

But you know, they always seem to figure figure out a way to make it happen. I mean, we are dealing with some really super smart people. I mean, you can figure out take money out of the market every month. I think you can figure out how to how to Assignment uh three times a week. Yeah, so they ended up at the end of the day deciding not to change anything about contra exercise. Everything else is the same. The only concession they really made to the regulators with this.

I guess you can call it a pilot, is they are not listing them during the earnings week for that particular name. So you can't trade, let's say, you know, alphabet options during their earnings or things like that. Which Some folks might argue that's the reason you want to have these contracts, but for a lot of people that's also where a lot of wild things happen in the after hours. The potential for disastrous scenarios could

Could be large, so they decided to just avoid that altogether. So right now you can't sling your single name zero DTE options during your earnings for that name. By the way, if you're wondering what names can you trade them on, we have the full list. Right now, you got your Teslas, your NVIDIA's, your apples, uh i bit.

kind of an interesting one. But if you've been following the volume last year or listening to shows on our network like the Crypto Rundown, it makes a lot of sense. IBit was meeting or exceeding Vic's volume for most of the year last year. So IBIT Very much a player was putting up over a million contracts a day for a while there last year. So Maybe surprising to some, but when you crunch the numbers, uh seeing iBit in that list makes a lot of sense. Amazon Meta Broadcom, aka A V Go, Alphabet.

And good old softy. So those are the names you can trade Monday, Wednesday, and Friday, zero DTE options on right now.

So what are we talking about here? What is this contra exercise thing that has everybody all hot and bothered right now? Well Effectively, it is a window, listeners. Right now, you know, you buy a call. Let's say you buy a call on NVIDIA. You buy the 180 strike call expiring on Friday.

Friday, NVIDIA goes out at 180.01 or above. Guess what? You're automatically exercised. You don't have to do anything. You got some hot, sweet NVIDIA stock coming to you at the 180 price level. Everyone knows that. Everyone understands it. It's pretty straightforward. But in reality, the world of equity options is not quite as straightforward when it comes to expiration. Uh there is a window after the close in which you can issue what are called

Contra exercise orders. And that's when things get a little bit wild because it does vary a bit. By broker. We'll get to all that fun in a second. But what are we talking about? What is this contra exercise? Effectively, let's go back to that scenario. NVIDIA closes a 1800 one on expiration Friday. You have your 180 strike calls. And for whatever reason, maybe you don't have the capital in your account, maybe you just don't really want to deal with having stock.

In your account on Monday. We weren't that bullish on NVIDIA to begin with. Maybe you think something's gonna happen in the after hours. For whatever reason, you don't want the stock. Guess what? You have to issue one of these contra exercise orders to your broker. before a certain window passes. Otherwise, you will automatically have your call exercise and the stock will be hitting your account at that strike price. Now, how does this work? Again, it varies by broker.

The best thing to do in this scenario is contact your broker, go to your broker's website and see exactly what their windows are to issue these contra exercise orders. By the way, you can also do it the other way. You could have an option that is pretty far out of the money. Let's say NVIDIA closes 180 on the dot. You're along some 185 calls that are gonna go the way of the dodo, but maybe something happens in the after hours, whatever your reason is, you decide, you know what, these 185s.

Not quite as worthless as they seemed at the close. I might want to exercise those. Guess what? You also have to enter one of these contra exercise orders for that. So you need to use them to not exercise in the money options that would automatically be exercised and also to force the exercise. of out of the money options that would otherwise

go out worthless. And so again, looking at various brokers, we tried to do a little bit of an in-depth review for you, but again, it varies by broker and times. For the most part, you're going to see a lot of these brokers They want you to enter your contra exercise orders and they give you a window. Usually it's about an hour, maybe an hour and a half after the close to get those contra exercise orders in.

For example, Schwab, one of the biggest options brokers out there right now. They own all the platforms. pretty much right now. That deadline is usually between five and five thirty PM Eastern time. So four to four thirty here in the one true time zone. Again, it kind of fluctuates a little bit. So contact them to get the exact number.

Uh T D used to be earlier, 430. I think obviously now that they're part of Schwab, it's a different deal. Fidelity wants these orders in by five o'clock Eastern, four o'clock. A central, a Robin Hood weirdly early. They want them in four PM Eastern, which again is right on the close. So that's something you're gonna need to contact them. They say they give you a window of between four to five PM Eastern, which is obviously b one hour right after the close. So

Yeah, you might have a little bit more difficulty getting these done on Robin Hood. E trade looks like they have that five o'clock. Sometimes five thirty Eastern there as well. If it's a modified close, like if it's a good Friday or something like that where the market closes early, you're gonna have those just adjusted down for whatever hours the market actually closes.

So again, these are thresholds to be aware of, but depends on what broker you're using, what threshold, what window they give you. So make sure you're contacting them. To figure out the exact window. Cause sometimes it might change too. The broker might decide they maybe in this modern era where the lot of these are going to start coming up, they might change that window. They might tighten it in light of the fact that these are going to start popping off.

Many more times per week. Dan, what are your thoughts on this contra exercise window and the fluidity that exists from broker to broker? Yeah, you know, um I I do kind of feel like it should be standardized, but I mean I guess I understand why it's not, you know. Um it is Of course, standardized by the OCC. The OCC has to have it in by a certain time, but each broke you know the brokers can. require it to be a little earlier just because They wanna make sure they get it in on time.

staffing issues or that kind of thing, but um it it is it is weird that it's not standardized, you know, that the OCC doesn't require it to be Yeah, you're right. OCC has a standardized deadline for the firms. The firms have to have them all in by a certain time.

But it's up to the firms what deadline they put out to their customers. And again, as we've seen, those can vary widely. The other thing you have to be aware of with these is that if you want to put these in, most firms traditionally made these hard to do. They didn't want you doing them and if they you did do them They wanted to make sure you knew what you were doing and why you were doing it. So they usually made you contact them. You couldn't put the

the do not exercise or the forcing exercise order in on the website. You usually had to contact a broker and talk to them manually to do this, which is laborious. That was the intent. I do kind of wonder, Dan, in the onset of this now happening every Monday, Wednesday, and Friday, and soon every day of the week, if brokers are going to be forced to maybe reconsider that and start making this a little bit smoother process. What do you think, Dan?

Yeah, I mean, you would think it would be, but I mean, I guess this is kind of another thing that I would understand, you know, just being in an I g I I guess you call what I do an online business, you know. I mean I do all my teaching and stuff online, but When I'm creating the website to deliver our classes and that kind of thing, like I know you can only have so many buttons, everything's gotta be laid out pretty logically.

And with something so uncommon as contracts or size, I mean geez Louise, probably half of Schwab's customers don't even know that they can do that.

Um, you know, where where are you putting that button? Um, it it's gonna be buried somewhere anyway. I mean, you know, you can't just have one next to every option you have. That would be I kinda understand it and and I do kinda understand creating a little bit of of a barrier to entry, not really barrier to entry, but conceptually, just because they probably don't want people

Well, you know, there's a lot of people who look at P and L diagrams and they're like, Well, no, I wouldn't exercise it. Well, it's in the money. Yeah, but I lost money on it. Well, yeah, I mean, that doesn't matter. throw away money if you don't exercise it. And then you the brokerage firm ends up having all these converse you know, options one on one conversations with people. So yeah, they probably want to bear

And that's one of the reasons why we're talking about it today on the show, listeners. A lot of people are still ignorant that this option pun intended exists for them and it's something you should be aware of because It might come back to bite you in this new zero DTE single name era. Let's walk through again some scenarios here. Some of the most common reasons.

People want to use these. Again, you have you're long a call, let's say, and it's in the money. And for whatever reason, you just maybe don't have the money in your account that day to buy the stock. Or again, maybe you never were that bullish to begin with, never really wanted the stock. You wanted to stick a flyer on the options. For whatever reason, you decide you want to abandon it. You don't want to exercise. That's one scenario. Again, a common one.

Is there's some potential news in the after hours? We saw this with a recent listener of the show who rode in with his vertical spreads and there was some news potentially happening in the after hours and his vertical spread never got to the point. that he wanted it to because of the after hours news. If there's some, let's say an earnings announcement after the bell, you know, you might have your, you know, NVIDIA go out at one eighty. Next thing you know, immediately after the bell

Nvidia's trading, let's say 185. Well, now those 180s or maybe 182 halves, whatever you're whatever you're you're trading you thought were worthless. Maybe those have some value now in the after hour. So all of a sudden you might see some impetus to exercise options that were otherwise have been worthless.

And again, corporate actions, takeovers, mergers, those kind of things also. And we've seen dividends before. Dividend plays are another reason why people like to play a little fast and loose with uh exercise. Let's walk through a couple of scenarios.

Uh one thing people are pointing out, Dan, that people are worried about is uh the vertical spread, the common long call vertical spread, for example. Uh let's say you're going into a Wednesday option on iBit, you're long a vertical spread. And on Wednesday expiration IBIT goes out right in the middle of your strikes. You know, what do you do? We've always counseled on this show and indeed every show on the network, the best case scenario in all of these examples is to sell it.

And close out before you have to deal with any of this exercise nonsense. And that is still the best advice. If you don't want to deal with any of this, you don't want to get bit by any of this. Close out the position before the close. That is the best way to do it. Then you get to keep whatever intrinsic value is on that option. You get to live to fight another day. It's the best case scenario for everybody.

And now what you can also have happen, you're kind of in the middle, the stocks in the middle of your two strikes. You don't do anything. Your long leg is assigned and you assume your short leg is not going to be assigned, right? You're not you're not gonna have the stock change hands there. So you're gonna come in the next morning, Thursday morning, long a bunch of stock at that strike.

Or you can come in, as we've been talking about today, contact your broker in that very specific window of time, usually an hour to an hour and a half after the close and say, you know what? I don't want That stock after all. And so again, they're gonna probably make you jump through some hoops to do that. But that is another option you have. Dan, what are your thoughts about Trading verticals in uh this new modern zero DTE equity environment, sir.

Yeah, I mean uh it gets it gets a little tricky. I mean uh I bet we could probably even think of some other types of strategies besides verticals. Go for it. There are many, sir. Yeah, I mean time spreads, uh, right? Um well, I guess mostly your long time spreads, but if you happen to be short of time spread and get automatically signed. By your well, if you exercise excuse me, if you exercise your short term option is what I was trying to say. Uh exercise your short term option.

then you're left with a longer term short option. And, you know, that's problem. But I guess that's why they margin them up the wazoo anyway to begin with, to kind of avoid that from happening. Yeah, the other one people point to is anything that has some sort of, you know, short leg hanging out near or out of the money right around that time. Uh let's say you have a short let's do a covered call, for example, a very basic scenario.

And in most of these examples, you know, you're gonna sell that covered call. Let's say the stock closes one dollar below. where you sold that covered call. You might go out that day and think, okay, you know, my covered call goes out worthless. I keep all that premium and I have my stock. I'll come back in tomorrow or next week, whatever the case may be, and maybe look to reestablish

a new covered call position. But in this example, you're trading, let's say, one of those Wednesday weeklies again. And after the belt, there's a surprise takeover. Announcement. And next thing you know, your stocks popping twenty, twenty-five percent in the after hours. Guess what?

Those covered calls that you're short that you didn't close out, which we always say, close them out if you don't want this to happen to you. Those covered calls that you're short, guess what? They're gone. They're being uh they're being exercised. And guess what else is gone? You're stocked. Somebody is taking that away. So instead of coming in the next morning, pocketing all that juicy premium from the call that you sold and also pocketing a nice 20% upside in your stock.

Now your stock is gone and you're not participating in any of this upside because you didn't know maybe that this window existed or this event was happening. And so as a result, I think this is one of the scenarios, Dan, where people are envisioning Some, let's say, bad brokerage experiences. Your proverbial grandma from Iowa is calling up saying, wait a minute, I'm long.

Ass space mobiles is up twenty percent. Why am I not participating on all this juicy juicy upside? As your grandmother would normally say. And then the broker has to explain all this to them, Dan. What are your thoughts? I well my first thought is you do an excellent grandmother. Just like Grandma Pasarelli. It was kinda eerie. Yeah. Yeah.

So yeah, I mean overall, yeah, that is another one, like covered calls and cashiered foots for that matter, too. Um, you can get some pretty weird surprises with both of those. With after hours stuff and um I mean, that's always the case with monthlies and weeklies, but now there's just three times more chances for that to happen. I I I guess I I didn't really think about it that much, but Because it's three times a week in some of these names now.

It does really add more risk because this one Obscure risk. Happens more frequently. Three times more frequently.

Exactly. So there's more bites at the apple. It's not a question of if but when now something's gonna happen along those lines. You can also see why they would dial it back around earnings. Can you imagine, Dan, the scenarios where Let's say uh whatever, your Oracle comes out, it's three hundred bucks, and the next thing you know in the after hours, it's three fifty off some crazy AI news, and everyone's issuing exercise orders for the

305s and the 310s and 335, and then next thing you know, 20 minutes later, and it's back down to 265, and everyone's like, wait, I don't want. I don't want the stock. I want to contra my contra exercise order, but it's too late. It's already in. Orders are flying fast and furious.

I I think they probably want to avoid that scenario, at least maybe till they get some better systems in place to handle it. But it this is this is the future, Dan. It is a question not of if but when we're gonna see one of these wild scenarios unfold. What are your thoughts? Uh Yeah. Um it it it is an if a a not if but when. Um geez. Um wow.

We've been lucky now because people will say, Well, we've had this every Friday right now and your answer is that's correct. But also not a lot of big names popping off on Fridays, so you're usually pretty safe there.

And you know, you're not seeing, you know, your apples and and metas of the world popping off after the bell on Friday. That said, things still do happen, so it can happen. But in general it was a lower probability. Now it's every well, Monday, Wednesday and Friday and soon to be probably

Tuesday and Thursday. So again, that's why we wanted to record this episode today, listeners. It's something you should be aware of if you're going to start trading or even thinking about trading these things. There is a contra exercise window that exists. after the closing bell, it is up to you to research on your brokerage firm what exactly that window is that is available to you. Go to your broker, research it. What is you know exactly what your window is, and then

Ideally, close out your positions before the closing bell. That is the best way to avoid all of this. Otherwise. You are letting yourself be exposed to the whims and the vagaries of the after hours. And who knows what's going to happen to the stock? Who's going to issue a surprise exercise on one of your shorts that you didn't expect?

You have all kinds of stock positions flowing in and out of your account that maybe you didn't expect. And that's not usually a good thing. So you wanna know what's going on with your account at the end of the day. So just be cognizant of all this. That's why we're doing this episode today.

And if you have questions, contact your broker. They will walk you through exactly what your options are, pun intended. And speaking of you folks, let's spend a little time here at the end with a little bit of the old mail call. Mail call. Time to look at questions submitted by our listeners. Nothing better, Dan, than being in the throes of the polar vortex in January and hearing that nice, jaunty, summer themed music that we have here.

on the show, Dan. But our chat looks like for the most part, uh, they agree. A lot of them said they haven't used contra exercise orders. Uh most of them are aware of them because they're in our pro chat, so they're a little bit savvier than than the average options trader. And a lot of them agree too that if the brokers made them a little bit easier to use, they might actually take advantage of them more. So

That'll be interesting to see if we do see some evolution on that front, Mr. Dan. I have some questions of the week, but before we get there, do you have a burning MTM question of the week you want to get to, sir? Uh Uh yeah, I can do that, my friend. Before we do that, then let's make it official the market taker question of the week. And now. It's dumb. Cảm ơn các bạn đã theo dõi và hẹn gặp lại Time for the Market taker questi

Dan, I heard from a little birdie that your question of the week is all about contra exercise orders. How wild? What time? How did you know that? Oh, geez. Um, I do get questions about that every once in a while, but the question that I got this week. is about it's actually about something we talked about on the show. Um once, twice, I don't know. Uh it's been, how long has it been? Ten years, right? Been like ten years we've Oh, this show more than that, sir.

Yeah, yeah. Gee, it's been a long time. So uh so it's about stack repair. Is there an option strategy that you can use if you buy a stock and it goes against you? And that answer is yes. There's actually a couple and it depends on how much the stock goes against you. But the main one that I think I like to talk about a lot.

Is what people generally refer to as the stock repair strategy. And it's it's a simple strategy, but oh gosh, it's like a really, really cool one that's got some nuance to it. And here's, here's, first of all, here's when you can use it when a stock that you owned has declined anywhere from about 25 to 40%. And you think it'll retrace about halfway between now and the expiration date. So you'll choose your expiration date basically coinciding with

when you think the retracement might happen. And if you think it's a day or two or something like that, well, do nothing. But if you think it's anywhere between two and six months, you might be able to cobble this together. So what you do is you buy an at the money call. And then you sell two out of the money calls halfway between where the stock is now and where it was when you bought it. So like fifty percent retracement higher.

And um what happens here is basically you have a covered call where you're making money on the stock delta and then you're making money on the long call delta. And the short calls either expire or they end up getting assigned. And so the long stock that you had gets sold. The long call you had gets exercised and then consequently sold. And you're able to make all your money back if the stock only goes about halfway. And we did actually talk about this one time.

All the way back, holy crap, all the way back in 2012, if you can believe. Leave it. Holy moly, it seems like only Yeah. Three years ago. Sure. Yeah, I just dug it up. Our first episode, Dan, March twenty sixth. Of 2012. So we're coming up, Dan, on 14 years. Isn't that wild? Holy crap man. Yeah, it was a long time ago. Like just yesterday, you and I were sitting on that podium there in Las Vegas.

I believe it was at a money show and somehow the the concept for this show was born and my life has never been the same, mostly for the worst, sir. But hey, I d I don't blame you for that pandemic. Everyone says it was Dan's fault. He wasn't messing around with those monkeys in China. That wasn't him. Stop spreading that ugly rumor. I I refuse to hear it, Dan. What?

Let's see what let's see what we're hearing from our list. By the way, we'll have to do something fun in March. And I looked next year, I think the 15th will actually fall on the show day. This year we're one day away, but next year it'll be the 15th anniversary of the show on a Wednesday.

Might have to do something big for that. Of course, next January will also be our 20th anniversary of the network. So next year's gonna be next year's gonna be crazy cakes. However you cut it, Mr. Dan. Parties, balloons, maybe some cakes.

I don't know. We're going wild. We're going wild here. Contra exercise orders for everyone, Dan. What do you think? Sounds like a good time to me. Speaking of uh good time, really quickly, see what you folks had on the brain. Uh last week. We were talking to you folks about some VIX putting. Uh May eighteen puts y you wanted uh these are the Mays. You wanted ended up you wanted to buy those. Fifty seven percent of you wanted to buy'em for a buck seventy two.

Uh so interesting. Again, a meaty put be getting a lot of duration there. Uh this week, Dan, we were just talking about iBit earlier in the show with the Zero DTE. We had a flash poll just on Monday on our crypto rundown show because we saw a big print going up of the Feb 60s in iBit. So one month out at the time I bit was over ten handles below that. I think like fifteen handles below that. And we said they were going up for about twelve cents.

Seemed like it might have been closing flow, but we said to you folks at that price, you want to buy those bad boys, take a complete flyer to the upside on iBit for 12 cents. Are you selling them? And then nearly 90%, 89%. Wanted to pay 12 cents. Only eleven cent uh eleven percent, I should say, said sold to you. They want to pocket that twelve cents.

Not a bad covered call either. I'm sure if you have iBit right now, you'll let it go for sixty in Fab exploration. I think I think most folks would do that. And then Dan, fast forward to this week. It's a big earnings week, obviously.

A lot of big names popping off this week. Meta, Microsoft, Apple, Tesla. A lot of the names you folks like to watch out there. So he thought, you know, hey, earnings seasons on the docket, big names you folks like to trade. How are you approaching your options trading this week?

Are you gonna go short premium? You're gonna go long premium? Are you gonna trade zero-day index options? I put index, Dan, because the zero-day equity options for these names is earnings week. So they're not available yet for them. They'll be starting next week. Or are you just sitting on the sidelines? What do you think our audience is up to right now, Dan? Um I figure they are Trading zero DT index options, that's what I think.

That is a tie for second place, about twenty-five percent each. They're trading zero day equity options, and twenty-five percent are just sitting on the sidelines. It's too wild for them, Dan. About about a little thirty-seven and a half percent. Are going short premium. They're selling it all the way to the banks, sir. So maybe they haven't been listening to our shows where we've been saying for a while the trade has been buying earnings volume.

for the last few cycles because they've been ripping the cover off the ball. If you want to see the data that backs that up, listeners, check out our website, theoptionsinsider.com. Click on the options, news, and articles tab. We have it all there for you for free and you can see the the data for yourself. Uh it's been a wild couple of cycles to buy juice. Only twelve and a half percent, Dan, right now are buying that juice, so

Maybe they think we've finally reached that tipping point, that inflection point where Earnings Val maybe has to come crashing back to Earth. I guess we shall see listeners.

Unfortunate music means we won't see any more of the OBC this week. But don't worry, Dan and I will be back next week. Same bad time, same bad channel. If you want more in your lives right now, hang out. I'll be back in a few minutes talking all things futures on the futures run. I got a feeling this. insane move in silver is probably gonna feature on that. So if you like a little bit of

metals madness and hey who doesn't right now. Join us for that if you want to hear it live, of course, and check out that panel, all the other exclusives I was just talking about, as well as potentially win a pretty sweet pro trading crate, the options insider dot com slash pro. Is the place to go to check all that out. And Mr. Dan, where should they check out all the good goodies you got cooking, sir?

Yeah, of course. Uh you can check out my Substack. You should do that. It's Wealth Building with Options. dot substack dot com or just go to Substack and search for me Dan Passerelli or Wealth Building with Options. I just dropped a new article yesterday that's really uh I don't know, I I I I thought it was interesting, but I hope I thought it was interesting. I wrote it. Um, and it was sort of a breakdown on banking and inflation. Uh sort of um

An explainer because gosh, banking and the Fed and all that can be really complicated. So I tried to really break it down and make it simple. Dan going macro, a little banking and the Fed action. By the way, the Fed keeping things steady as we recorded the show here today, as expected. So.

Uh if you're listening live or immediately after the fact you probably already know that. But nonetheless, uh good stuff. And Dan, if folks are excited, they're giddy, they're looking forward to the hot new book Coming from the black hatted one, with what I'm hearing, is the mother of all blurbs on the cover. Where should they go? What should they do? Yeah. Yeah. So that mark your calendars April twenty eighth. is the release date and I'm super excited. I can't wait.

You know, Dan, couldn't they have gotten it to line up on the with our March twenty sixth fourteenth anniversary. Didn't we tell them that five times? Release the book on the 14th anniversary of the show. Oh well, I guess we'll do something in April as well. We gotta plan that big 14th anniversary party too, Dan. I hear your whiz at making some cake. Maybe some jello shots, all the hot things from the the Frankfurt land there. Yeah. Kira Mazoo, what ya think?

But you know what? Maybe I'll maybe I'll have some advanced copies of the book by then we can give them away. That'd be pretty cool. All right. Look forward to that, listeners. Again, that blurb killer. The rest of the book, I don't know. We'll see. But I hear good things about the blurb. Uh keep an eye on that. Maybe we'll have some copies to give away. And while you're keeping an eye on things, make sure you check out

our friends over there at Tasty Trade, Tasty Trade dot com slash podcast, the place to go to kick the tires and light the fires. Uh we literally could not have been doing this network and this show for the last fourteen years nearly uh without the support of our sponsors. So make sure you get over there

And you check out what they have to offer. Maybe you kick the tires and light the fires off there. New Year, maybe it's time for a new broker for it. And all the brokers, trust me, all the brokers love Our listeners. You folks are their ideal clients. So get over there. See what deals they've got in store for you. At the very least, tell them, hey, you heard about them on the network. It goes a long way towards doing this show for another 14 years until Dan is 172.

on the show. He is locked in. Cannot escape. Alright, listen, that's gonna do it for us on OBC. Back again in a little bit for the futures rundown. And then of course after that for the hot options report. Yet more reasons you'd be listening to the full network. And then back again with our usual array of content. Till we're back again next week. Another episode of OBC. Stay safe out there, everybody. Trading walks into a bar. New trading raises it. That's Tasty Trade.

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