With MRVL still to announce earnings, it might be interesting to look at a long call spread in the name. You can find this on page 60 of The Options Playbook . This is always available on OptionsPlaybook.com , in on the Amazon Kindle edition. In this episode: A review of last time MRVL announces earnings on 8/24 after the close What is the outlook for MRVL Selecting the expiration What is the most at-the-money strike? Buying as much time premium as selling What is maximum risk? Reward? Selecting...
Aug 24, 2017•16 min
Since it's still earnings, season we are going to continue to look at expensive stocks. Today's subject is Alibaba (BABA), and we are exploring a backspread. You can find backspreads in The Options Playbook . This is always available on OptionsPlaybook.com , in on the Amazon Kindle edition. The details: The difference bewteen a skip-strike butterfly and a backspread What do we want to happen? Why a backspread over a skip-strike butterfly? Earnings-related considerations What is the marketplace e...
Aug 17, 2017•15 min
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 theoptionsguy@invest.ally.com , or to the Options Insider at questions@theoptionsinsider.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...
Aug 10, 2017•23 min
Since we are still in the middle of earnings season, it makes sense to continue with stocks that are about to release earnings, in this case Tesla, which announces earnings after the recording of this show. You can find skip strike butterflies on page 108 of The Options Playbook . This is always available on OptionsPlaybook.com , in on the Amazon Kindle edition. In this episode, Brian covers: A review of last time Where did the AMZN skip strike butterfly end up? Where is TSLA? What is the outloo...
Aug 03, 2017•18 min
We are back in earnings season. Given the possibility for big moves, we will look at the skip strike butterfly with calls, which you can find on page 108 of The Options Playbook. This is always available on optionsPlaybook.com , in on the Amazon Kindle edition. In this episode: What happens to implied volatiilty around earnings? The dynamics of the trade The more costly the underlying, the more costly the option AMZN announces earnings on 7/27 after the close What is the "expected move"? Picking...
Jul 27, 2017•19 min
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 theoptionsguy@invest.ally.com , or to the Options Insider at questions@theoptionsinsider.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? Shou...
Jul 20, 2017•17 min
For the last few episodes, we were reviewing skip-strike butterflies in GOOGL. You can find this on page 87 of The Options Playbook. This is always available on OptionsPlaybook.com , in on the Amazon Kindle edition. In this episode: A review of the last few weeks of strategies in GOOGL Looking at IBM, which will announce earnings on July 18 Remember: earnings add a bit of volatility to the underlying Where is the IV? Having a neutral to bullish outlook Going out further in time. Why? Time is on ...
Jul 13, 2017•17 min
Last week we looked at a GOOGL skip-strike butterfly. Staying on the same page, we will put on a new paper trade as a follow up for that one. You can find this on page 108 of The Options Playbook. This is always available on OptionsPlaybook.com , in on the Amazon Kindle edition. In this episode: A review of last week What was the trade? What did it cost? What happened since? What are we doing now? Setting up the trade Selecting strikes What about expirations? Max loss and gain? Do you have a que...
Jul 06, 2017•17 min
Today Brian covers a skip-strike butterfly, which you can find on page 109 of The Options Playbook . This is always available on OptionsPlaybook.com , in on the Amazon Kindle edition. Specifically: What are the right circumstances for trading a skip-strike butterfly? A bad news event in GOOGL creates an interesting situation for options traders Where is GOOGL right now? What exactly is a skip-strike butterfly? What's our forecast? Where is the at-the-money straddle? Setting up the trade Picking ...
Jun 29, 2017•19 min
The Huddle: Listeners weigh in with questions Question from Steve - With the VIX so low, I am not selling a lot of options anymore, because I am afraid that I will not collect enough premium. Am I thinking of this incorrectly? Question from Lincan -My go-to options strat is to sell covered puts on stocks that I want to buy then get paid to wait. If the stock comes my way I eventually trade out of it using a covered call. What do you think? Savvy or stupid? Do you have a question that you want fe...
Jun 22, 2017•17 min
It's all listener questions in this special edition of Options Playbook Radio Question from Ejh4isu - If I buy/sell a vertical on SPX (or any equity stock for that matter) and hold until expiration, and SPX settles between the strikes, what happens ? Example: sell 2395/2400 and SPX settles at 2397. Question from Kraken1975 - Which of the Greeks do you utilize the most and why? Question from ButcherBoyz - What options trading strategy would you say is best suited to people with absolutely zero kn...
Jun 15, 2017•27 min
In this episode, Brian reviews two paper trades from previous episodes and opens up a third. You can find the backspread with calls on page 84 of The Options Playbook , and the put debit spread is on page 62. Plus, this week we'll look at the fig leaf, which you can find on page 56. This is always available on OptionsPlaybook.com , in on the Amazon Kindle edition. Today, Brian discusses: A review of the AMD backspread What did AMD do since putting on the trade? A review of the FCX debit put spre...
Jun 08, 2017•21 min
Last week's episode looked at a backspread with calls. That strategy is on page 83 of the Options Playbook. This week, we will cover a debit put spread, which is on page 62. In this session, Brian covers: A review of last week's AMD backspread Why look at FCX? Why a long put spread? Erring on the side of being too short or too long Intrinsic value considerations Picking strikes and expiration dates Buying as much time premium as selling...
Jun 01, 2017•15 min
Today, we will explore back spread with calls in AMD (page 84). This is always available on OptionsPlaybook.com , or on the Amazon Kindle edition. In this episode, Brian covers: What are the benefits and risks of the back spread with calls? What has happened since we put the trade on? Setting up the trade. What is the maximum risk? Reward? What is the ideal scenario?...
May 25, 2017•17 min
It's all listener questions in this special edition of Options Playbook Radio. Question from JDog - I just got an options pitch that says that options buyer lose money on 7 out of every 10 trades. Is that true? Question from Alan Shepard - Why would I ever buy an option when 90% of them expire worthless? Question from Lesnod - How do you get out of the straddles? One side of a straddle is always a loss correct? Question from Bob - Concerning options: I have been told to take an ATM call and put,...
May 18, 2017•21 min
It's all listener questions in this episode of Options Playbook Radio. Do you have questions that you would like answered on the show? Send them to Brian at theoptionsguy@tradeking.com . Question from JLaws: My dad is coming over to the dark side slowly but surely/ He is thinking about dipping his toes in the options pool. What product do you recommend for an options newcomer making his first trade? Question from Sharkcake: I have been approved to trade options by my Brokerage but I have yet to ...
May 11, 2017•21 min
Last week we looked at an inverse, skip-strike butterfly on AAPL before earnings (page 112). Today, we will explore a FB iron condor (page 126). This is always available on OptionsPlaybook.com , or on the Amazon Kindle edition. In this episode, Brian covers: A review of last week What are the benefits and risks of the skip-strike butterfly? What has happened since we put the trade on? What should you have done? What is going on with FB? Setting up the trade What is the expected move after earnin...
May 04, 2017•16 min
It's earnings season again. As such, we're looking at an inverse skip-strike butterfly to capture some earnings move. You can find skip-strike butterflies with calls on page 108, and inverse skip-strike butterflies with calls on page 112 of The Options Playbook , on OptionsPlaybook.com , or on the Amazon Kindle edition. In this episode, Brian covers: A review of last week's AMZN butterfly Lesson to learn: Time makes the trade cheaper Determining strike prices Making sure you do not get blown out...
Apr 27, 2017•17 min
It's earnings season again. As such, we're looking at a skip-strike butterfly to capture some earnings move. You can find skip-strike butterfiles on page 108 of The Options Playbook , on OptionsPlaybook.com , or on the Amazon Kindle edition. In this episode, Brian covers: A review of last week's UAL butterfly Lesson to learn: Don't try to hit a home run with a butterfly Putting on a skip-strike butterfly with calls Picking the expiration Looking at the implied volatility Picking strikes What is ...
Apr 20, 2017•22 min
For the last few episodes, we explored backspreads in SNAP. This week we shift gears to another name that is highly volatile right now, United Air Lines. Let's explore a long butterfly spread with UAL calls. In this episode: A review of the SNAP backspreads Volatility in UAL skyrockted Why choose a butterfly spread? Choosing a one-day trade Selecting strikes Setting up the trade What is the cost? What do we want to happen?...
Apr 13, 2017•17 min
SNAP's recent IPO has had the name in the news quite a bit these days, so let's take a look at SNAP backspread with puts, which is on page 84 (calls) and page 87 (puts) of The Options Playbook , on OptionsPlaybook.com , or on the Amazon Kindle edition. In this episode, Brian reviews: The SNAP backspread with calls from last time What has SNAP done since last time? Where are the SNAP options now? What about implied volatility? When will earnings be announced? Taking a bearish view this week Setti...
Apr 06, 2017•18 min
SNAP's recent IPO has had the name in the news quite a bit these days, so let's take a look at SNAP backspread with calls, which is on page 84 of The Options Playbook, on OptionsPlaybook.com , or on the Amazon Kindle edition. In this episode, Brian covers: A review of last week's long call on PFE Still figuring out the SNAP valuation Where is implied volatility? Why a backspread instead of a straddle? Selecting the expiration date What about earnings? Selecting strikes What is the expected movem...
Mar 30, 2017•19 min
This week we will buy options in a stock that is at the low end of the implied volatility range. You can find long calls on page 40 of The Options Playbook , on OptionsPlaybook.com , or on the Amazon Kindle . To review the long calendar spread with calls, see page 90. In this episode: A review of last week's AAPL long calendar spread Implied volatility of PFE is somewhat low General rules of buying options contracts What contract to buy and why? Picking the strike and expiration What will it cos...
Mar 23, 2017•21 min
Today we are going to take a look at long calendar spread with calls on a little known company called Apple. This is on page 90 of The Options Playbook , on OptionsPlaybook.com , or on the Amazon Kindle . Specifically: What can you do going into earnings? How to "control" implied volatility around earnings AAPL indicates that it will announce earnings on April 25 What are the implied volatilities for the at-the-money calls expiring around that date? Setting up the trade: picking strikes and expi...
Mar 16, 2017•18 min
Today we are looking at a long straddle. You can find this in The Options Playbook, on OptionsPlaybook.com , or on the Amazon Kindle . In this episode, Brian discusses: A review of the long GPS put spread that was adjusted into a butterfly How was the butterfly constructed, and for what price? What has happened since the adjustment? What to do now? Remember, butterflies love time decay Moving into the healthcare sector, implied volatility is low in Abbot Labs Where is 30-day IV in Abbott Labs? W...
Mar 09, 2017•22 min
Last week we put on two long spreads to coincide with GPS earnings. We knew that one of them would not work, and planned on adjusting it into a butterfly. In this episode, Brian rolls the long put spread into a butterfly. Specifically, Brian discusses: A review of last week What happened since GPS announced earnings? Which trade didn't work? Adjusting the long put spread What do we want to happen? Setting up the trade, picking strikes What is the net risk? Reward? What is the plan until expirati...
Mar 02, 2017•17 min
Today we are looking at long call (aka bull call) spreads. You can find this in The Options Playbook, on OptionsPlaybook.com , or on the Amazon Kindle . Brian discusses: A review of last week's bull call spread in SJM GPS announces earnings on 2/23 Setting up the trade Picking expirations to capture earnings and beyond Picking strikes based on the expected move What is the cost?...
Feb 23, 2017•17 min
Today we are looking at long calendar spreads. You can find this on pages 90 (calls) and 93 (puts) in The Options Playbook, on OptionsPlaybook.com , or on the Amazon Kindle . Brian reviews: Review of last week's TSLA calendar spreads with calls and puts. Long calendar spreads, or bull calendar spreads....
Feb 16, 2017•18 min
Today we are looking at calendar spreads. You can find this on pages 90 (calls) and 93 (puts) in The Options Playbook, on OptionsPlaybook.com , or in the Amazon Kindle version. Brian reviews: Review of last week's AMZN iron condor Long calendar spreads = net long volatility That doesn't mean that you want a volatile market When might this happen? Earnings! Setting up the trade Picking expirations Picking strikes What is the risk? Reward?...
Feb 09, 2017•18 min
Today we are looking at iron condors. You can find this in The Options Playbook, on OptionsPlaybook.com , or in the Amazon Kindle version. Specifically: A review of last week's F call purchase What happened since we put on that trade? Who announced earnings this week? What can we do with AMZN? Where is the AMZN straddle trading? What is the over/under on the upside? Downside? Rationale for picking expiration Rationale for picking strikes What is the maximum risk? Reward? Do you have questions th...
Feb 02, 2017•20 min
