Options Playbook Radio 58: Back to Butterflies In this episode, we’re discussing skip strike, or modified/broken wing butterflies. If you’re playing the home game, you can find this information on page 108 (skip strike butterflies with calls) or page 110 (skip strike butterflies with puts). Additionally, it’s always available on OptionsPlaybook.com . Today, Brian discusses: Understanding butterflies first How a skip strike butterfly is different than a regular butterfly Risk trade-offs versus a ...
Apr 30, 2015•17 min
Options Playbook Radio 57: Trading Diagonal Call Spreads around Earnings In this episode, Brian discusses trading around earnings, specifically using diagonal call spreads. You can find details on this at: tradeking.com/allstars Brian discusses: An example using Gilead Sell a call before earnings, buy a call after earnings Why is this called a diagonal? What is the maximum risk? Things to consider And more…
Apr 23, 2015•17 min
Options Playbook 56: Butterflies Around Earnings It is earnings season, and Brian discusses multiple butterfly strategies you can use around this time of season.
Apr 17, 2015•15 min
Options Playbook Radio 55: Huddle Up for Listener Questions. Today, we’re covering listener questions. Brian and Mark discuss: · Which OTM call strike performs best when the underlying rallies? · This covers: · Timing · Volatility · Volatility skew · Alternatives · And more…
Apr 09, 2015•19 min
Options Playbook Radio 54: Butterfly Spreads, continued In this episode we are continuing our coverage of butterfly spreads. For those of you with the hardcover book, you can find this information on pages 103 and 104. You can also follow along on OptionsPlaybook.com. Today, Brian discusses: Two real strategies: a butterfly around IBM earnings, and a SPX Let’s look at what is happening with IBM IBM going into earnings Butterfly using IBM weekly options Focusing on the midpoint Maximum risk, maxi...
Apr 02, 2015•21 min
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 br...
Mar 26, 2015•18 min
Options Playbook Radio 52: Front Spreads, Part Two In this episode, we’re covering front spreads. For those of you with the hardcover book, that information can be found on page 80 (calls) or page 82 (puts). You can also find everything on OptionsPlaybook.com. Today, Brian discusses: A review from last week, what is a front spread, what about risk, etc. Why do this instead of a cash-secured put? Let’s look at this using AAPL as an example Comparing a covered call and front spread What price does...
Mar 20, 2015•20 min
Options Playbook Radio 51: Front Spreads In this episode, we’re talking about the front spread. In the book, this is on page 80 (calls) and page 82 (puts). Or, just find it on OptionsPlaybook.com. In this episode, Brian discusses: What is a front spread? What about unlimited risk? What is the goal of this spread? Maximum risk, maximum gain, and breakeven How to do a front spread combined with stock And more…...
Mar 13, 2015•13 min
Options Playbook Radio 50: Listener Takeover Today, Brian and Mark huddle up to discuss: What is time premium? Why does it exist? Why can’t you trade an option for its intrinsic value? Are there any tips to help a new trader process so much options-related information?
Mar 06, 2015•19 min
Options Playbook Radio 49: Long Calendar Spreads into Earnings In this episode, we are covering trading around earnings. For those of you with the hardcover book, you can find this on page 94. If you’re following along online, you can find it on OptionsPlaybook.com. Today, Brian and Mark discuss: If you put on a long calendar spread, what do you want to happen to volatility after the trade is put on? Good places to review are episodes 36 and 37 At look at LULU pre-earnings Setting up a LULU cale...
Feb 26, 2015•16 min
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•18 min
Options Playbook Radio 47: When to Roll Protective Puts Today, Mark and Brian answer listener questions, including: When to roll protective puts? What to pay? How far out should you look? And more…
Feb 12, 2015•19 min
Options Playbook Radio 46: Paper Trade for ABX Earnings In this episode, we are covering a specific paper trade strategy around an earnings report. It will be a long calendar spread with calls, which is on page 90. You can also find it on OptionsPlaybook.com. You can also learn about long calendar spreads in Options Playbook Radio episode 37. Today, Brian discusses: The forecast based on the chart The chains for selecting the paper trade Volatility of ABX 52-week history of ABX, and dividend Sel...
Feb 05, 2015•18 min
Options Playbook Radio 45: Combinations, continued. Continuing from last week, we are still discussing combinations. This information can be found on pages 76 and 78 of the hardcover book, or on OptionsPlaybook.com. Today, Brian discusses: Clarification on combinations using a real example: AAPL Long combination, instead of outright stock purchase Looking out to January 2016 Rights and obligations How the combination works and its financial impact Don’t forget about margin! How does it work? Who...
Jan 30, 2015•24 min
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•15 min
Options Playbook Radio 43: Listener Question Palooza, Continued The Huddle: Question from Anthony Enyo - Thank you for this wonderful program Brian. I am certainly learning a great deal. I have a few questions about dividends and options. I’ve heard there are some telltale signs in the options that reveal that a dividend is approaching. Is this true and if so what are they? Question from Joseph G - @Options Gamma? Are them those rays that turned Dr. Bruce Banner into the Hulk? lol...Seriously -...
Jan 16, 2015•17 min
Options Playbook Radio 42: Listener Questions Edition The Huddle: Listener questions and comments Question from Brian Collamer - Hi Brian! In this show you were describing selling OTM options. 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 not decay the fastest at 60-70 days and then kind of flatten out?? Great show, wish it was longer! Thanks, Brian Question Mukund Ambarge: Hi! I had que...
Jan 08, 2015•20 min
Options Playbook Radio 41: Back to Backspreads In this episode, we cover backspreads. If you’re playing along at home with the hardcover book, this means we’re on pages 84 (calls) and 87 (puts). If you’re following along online, you can find all of this at OptionsPlaybook.com. Today Brian discusses: A review from last time Looking at an example with Chevron What do we need to happen? What is the risk? What to look for between backspreads and straddles? Why do a backspread? And more…...
Dec 30, 2014•16 min
Options Playbook Radio 40: Backspreads In this episode, we’re covering Backspreads. For those of you with the hardcover version of the Options Playbook, you can find this on page 84 (calls) and page 87 (puts). It’s also online at OptionsPlaybook.com . Today, Brian discusses: What are backspreads? An example using calls An example using puts Other names for a backspread Factors that matter, including time When to use backspreads And more…...
Dec 19, 2014•20 min
Options Playbook Radio 39: Diagonal Spreads, Continued This week’s edition of Options Playbook Radio is continuing our coverage of diagonal spreads. For those of you with the hardcover version of the book, we’re on page 96 (calls) and page 99 (puts). If you’re following along online, you can find what you need at OptionsPlaybook.com. Today Brian covers: Review from last week Tesla example, and why a diagonal spread works for this example Paying attention to delta What to watch for and when to ge...
Dec 04, 2014•18 min
Options Playbook Radio 38: Diagonal Spreads In this week’s edition of Option Playbook Radio, we’re covering diagonal spreads. You can find this on page 96 (call) and page 99 (put) of the hardback version, or at OptionsPlaybook.com. Today, Brian discusses: Calendar/horizontal spreads, and when you would use them What is a diagonal spread? Why is it called a diagonal spread? The history of some of the spread nomenclature Possible outcomes of diagonal spreads And more…...
Nov 20, 2014•23 min
Options Playbook Radio 37: Long Calendar Spreads, Continued In this episode of Options Playbook Radio, we’re continuing our discussion of long calendar spreads. For those of you with the hardcover version of the book, this is on page 90 (calls) or page 93 (puts). You can also find it on OptionsPlaybook.com. Today, Brian discusses: A review from last week’s introduction Using an example of FB around earnings What makes earnings season special for calendar spreads Why direction matters How earning...
Nov 13, 2014•24 min
Options Playbook Radio 36: Long Calendar Spreads In this episode, we’re talking about long calendar spreads, from the call side. If you have the Playbook, we’re on page 90. Or, you can find what we’re discussing on OptionsPlaybook.com. Today, Brian discusses: What is a calendar spread? Looking at accelerated time decay, and why does it happen? At-the-money strikes, and why they are used in calendar spreads Front and back month How to construct a calendar spread Why do a calendar spread? Time dec...
Nov 07, 2014•23 min
Options Playbook Radio 35: Straddles and Strangles, Continued. Options Playbook Radio is back and today we are on pages 68 and 70. For those of you playing along online, you can find these topics at OptionsPlaybook.com . Today Brian discusses: What does the math say about Facebook earnings Looking at the FB straddle Why do investors use it? How do weekly options impact it? Quick and dirty formula on p. 17 of the book What are volatility and probability telling us with the math? Using a real-life...
Oct 31, 2014•29 min
Options Playbook Radio 34: Buying Straddles & Strangles Welcome back to Options Playbook Radio. For those of you with the book, today we are on pages 48 and 52. You can also find this information on OptionsPlaybook.com. Today Brian discusses: A quick review of long spreads, including risk/reward A quick homework assignment: review sessions 4 and 5 A generic example of a long straddle A generic example of a long strangle What does the math say 70% of the time? And more...
Oct 23, 2014•18 min
Options Playbook 33: Selling Spreads, Continued For those of you playing the home game, today we are on pages 64 and66 . If you are following along online, you can access everything you need at OptionsPlaybook.com. Today Brian discusses: Overview of last week on timing and probability when selling spreads If you need a volatility review, please refer to episode 4 Real-life example using AAPL Impact of timeframes Premium relative to probability of success (and what is success?) And more......
Oct 16, 2014•23 min
Options Playbook Radio 32: Selling Spreads Welcome back to Options Playbook Radio! For those of you with the hardcover book, today we’re on pages 64 (short call spread) and 66 (short put spread). Or, you can find information on our discussion on OptionsPlaybook.com Today Brian discusses: They’re also known as bear call or bear put spreads Using out-of-the-money options Examples using calls What is the maximum profit? What is the maximum risk? Probability of success Don’t forget about commissions...
Oct 10, 2014•17 min
Options Playbook Radio 31: Buying Spreads, Continued For those of you with the book, today we’re on page 60. If you want to follow along online, please visit OptionsPlaybook.com. http://www.optionsplaybook.com/ , Today Brian discusses: How spread trading differs from single options trading Avoiding paying premium to close out a position A real world example using Intel How do earnings impact options prices? Time value and how you pay for it And more…...
Oct 03, 2014•22 min
Options Playbook Radio 30: Long Spreads For those of you with a copy of the Playbook, we’re on page 60. If you are following along on OptionsPlaybook.com, look for the Long Call/Put section. Today, Brian discusses: What does it mean to have a “long” spread? Bull call spread, bear put spread. Vertical spreads What does it all mean? Crafting a P/L graph without owning the stock Risks and rewards are limited and known Common misunderstandings...
Sep 25, 2014•20 min
Options Playbook Radio 29: Collar Strategy We’re on page 54 of the hardback version of the Playbook , or find it on OptionsPlaybook.com Today, Brian discusses: How collars go hand-in-hand with protective puts Timeframes, and their importance What is a collar? How does it work? What’s the cost? What’s the upside? How far out in time should you go? The impact of interest rates and dividends And more...
Sep 18, 2014•24 min
