We are moving on to double diagonals, which can be found on page 128 of the Options Playbook. You can always find this on OptionsPlaybook.com. In this episode, Brian covers: Double diagonals overview Why are they called diagonals? Setting up the trade Risks and benefits And more
Options Playbook Radio 87: Listener Questions on the Short Squeeze & Brokers It's time to huddle up as Mark and Brian take on listener questions. Topics include: Does "hard to borrow" apply to options the way it does to stocks? Who is the best online broker for stocks, options, and futures?
Wait a minute, is that Mark Longo? Yes it is, and he joins Brian on this episode of Options Playbook Radio, in which they take on listener questions, which include: Inflated implied volatility skewing positions How to find stocks that have inflated options premium
As we are in the thick of earnings season, let's take a look at two different trades that one could employ to capitalize on movement around earnings. This week, Brian discusses: A review of skip-strike butterflies, bullish and bearish Looking at FB earnings What is the market expecting? How to set up the trade if you think there will be a lot of volatility? Only a little volatility? What is the downside? Upside? How about a ratio spread? And more...
Huddle up, traders. Today's discussion addresses listener questions. They include: Nelson from NC: Exploring covered calls on dividend playing stocks. Remember rho You might not receive as much premium. Why? Dr. Ram: How to trade multi-leg option strategies in an IRA account You can't use anything that provides leverage You also have to avoid unlimited risk Remember that you have to be approved within the IRA account Depending on many factors, you will be assigned a level of options trading Brok...
In this episode, we are discussing skip-strike butterflies with calls that we did last earnings season. This was in episode 77 . For those of you with the hardcover version of the book, please turn to page 108. If you are following along online, this is always at OptionsPlaybook.com . Today Brian discusses: Setting up a skip-strike butterfly on AMZN around earnings. Where is the market right now? What do we want to happen in AMZN? What is the maximum reward? Risk? How to use the proceeds of one ...
In this episode, we are discussing. If you have a copy of The Options Playbook, this information is available on page 68. You can always follow along online at OptionsPlaybook.com. Today, Brian discusses: The caveats of long straddles Why do long straddles work in this market climate? Looking at long straddles for GE, which announces earnings on Friday, October 16, before the open. What is the marketplace implying GE could do AFTER earnings? Setting up the trade What do you want to happen?...
Dan Sheridan is back with Brian, and today they are discussing how to set up an iron butterfly on the RUT. You can find this on page 106 of the Options Playbook, or on OptionsPlaybook.com. They discuss: Looking at a two-week iron butterfly in RUT Where has RUT been for the last six months? Setting things up, and why might width be different? What is the risk? Why do this in a volatile market? How and why is this repeatable? What is the plan? And more...
In this episode, Brian is joined by Dan Sheridan from Sheridan Options Mentoring. They continue the discussion of Iron Butterflies, which began last week. If you have a hardcover version of the book, this is on page 106. They discuss: What is the difference between an iron condor versus an iron butterfly? Why are iron butterflies popular? Receiving a credit versus paying a debit. What about risk? Advantages of iron butterflies Are iron butterflies better than other strategies? What underlyings d...
Lately, we have been discussing inverse skip-strike butterflies. Today, we are discussing times when it is a good idea to use inverse skip strike butterflies. Today, Brian discusses: What will the Fed do? (They kept rates steady) Setting up an inverse skip strike butterfly on the bearish side of the S&P 500 What will it cost? What do you want to happen? What is the risk? Don’t forget about margin What is the best-case scenario? What is the maximum reward? And more...
Today we are continuing the discussion of Inverse Skip-Strike Butterflies, which began last week. If you are following along at home with the hardcover version of the book, you can find the information you need on page 112 (calls) and page 115 (puts). Today, Brian discusses: A real-world example using NFLX You can find the discussion on NFLX here Where is the 30-day IV in NFLX? Why is the 30-day IV where it is? What about the market as a whole? Setting up the position What do we need to happen i...
In this episode, we are discussing an inverse skip-strike butterfly, which you can find on pages 112 (calls) and 115 (puts) of The Options Playbook. You can also find all of this information on OptionsPlaybook.com. Today Brian discusses: The set-up of an inverse skip-strike butterfly What do we want to happen? How much will it cost? What is the maximum risk? What is the maximum gain? When does this make sense?...
You can review volatility on page 14 of the Options Playbook. You can also find it online at OptionsPlaybook.com in the “basics” section. Today, Brian discusses: A review of looking at stocks near earnings, which creates volatility What happens when the entire market is volatile? How do you adjust your trading as a result of volatile markets? Buying options Spreading options Butterflies
In this episode, Brian takes on listener questions about: Profit and loss calculators Remember: slippage, commissions, and other variables Calendar spreads And more
In this episode, we are going to look at how to insure a long USO position using backspreads with puts. If you have the hardcover version of the book, you can follow along on page 87. If you want to follow along online, you can do so at OptionsPlaybook.com. In this episode, Brian discusses: How the price of oil is reflected in USO Where are things priced now? How to ensure a USO stock position How to tie backspreads to a stock position This is AKA a pay-later put How to set it up What are we hop...
In this episode Brian is discussing the fig leaf strategy for the oil sector. For those of you with the hardcover version of the book, this can be found on page 56. If you are following along online, it is always at OptionsPlaybook.com. Today Brian discusses: A review of the fig leaf strategy Setting up an USO fig leaf Using options to create a larger position instead of “double up to catch up” Constructing the fig leaf What will it cost? What is the risk?...
Today, we are still discussing Christmas Tree Butterflies. For those of you with the hardcover version of the Options Playbook, you can find this on page 118. If you are following along online, it is all at OptionsPlaybook.com. Today, Brian discusses: Why are we talking about Christmas Tree Butterflies around earnings? Using a real-world example with FB The normal Christmas Tree Butterfly pattern Customizing the Christmas Tree Butterfly to minimize risk Maximum risk, maximum reward What is the f...
In this episode, we are continuing our coverage of Christmas Tree Butterflies. For those of you with the hardcover version of the book, this is on pages 118 (calls) and 120 (puts). If you are following along online, you can find everything you need on OptionsPlaybook.com. Today Brian discusses: Back to earnings season equals good scenarios for butterflies Why? Creating a paper trade with Amazon, using puts Setting up the trade What strikes we are using What will this cost? Where do you want the ...
In this episode, we are looking at the Christmas Tree Butterfly. If you are following along with the hard cover version of the book, it is on page 118 (calls) and page 120 (puts). If you are online, this information is always available on OptionsPlaybook.com. Today Brian discusses: What is a Christmas Tree Butterfly? Setting it up How does a Christmas Tree Butterfly differ from a standard butterfly? Where is the sweet spot? Why do a Christmas Tree Butterfly instead of a standard butterfly? And m...
In this episode, we are reviewing some of the paper trades discussed in the past few Iron Condor episodes. If you are following along with the hardcover book, we are on page 126. You can always find this on OptionsPlaybook.com. Today, Brian discusses: What was going on when we put on a short SPX paper trade last week? A review of the set up and the cost What do things look like now? Are we up? Down? What about time decay? What about the VIX? Should we roll? Going back two weeks, reviewing the AA...
In this episode, we are continuing our coverage of Iron Condors. If you have the hardcover version of the book, this is available on page 126. If you are following along online, you can always find this on OptionsPlaybook.com. Today Brian discusses: A review from the previous episodes, including what happened in AAPL since last time What do to now that AAPL has moved close to the bottom strike? Setting up a short-term iron condor using an index Beware of the holiday and volatility Setting it all...
This week we are continuing our discussion of iron condors. For those of you playing the home game, you can find this information on page 126. If you're following along online, all of this information is always at OptionsPlaybook.com. Today Brian discusses: A review of last time, which discussed indexes Looking at an iron condor on AAPL, going out 23 days What about earnings? Dividends? Quick and dirty formula for probability How does the math play out? Brian assembles an iron condor on AAPL Wha...
In this episode, Brian is talking about iron condors. If you have the hardcover version of the Options Playbook, you can find this information on page 126. If you are following along online, all of this information is always available at OptionsPlaybook.com. Today, Brian discusses: How iron condors differ from regular condors Looking at iron condors with index options Why iron condors work well with index options Looking at an example with the S&P 500 Index...
In this episode, we are discussing iron condors. For those of you with the hardcover version of the book, you can find this information on page 126. If you want to follow along online, it is all on OptionsPlaybook.com. Today Brian discusses: The set-up of an iron condor Why is it called a condor? What is an iron condor? What is the next risk? What is the potential reward? When to get out? What do you want to happen?...
Over the last few weeks, we have been talking about butterflies, and last week, we covered inverse skip strike butterfly. This week, we are hitting that, but with calls. You can find this on page 112 of The Options Playbook, or look for it on OptionsPlaybook.com Today Brian discusses: A review of last time, which was centered on DECK earnings Looking at an inverse skip strike butterflies with calls What is the outlook? What is the expected move? What is the risk? Reward?...
In this episode, we're discussing the inverse of skip strike butterflies. This can be found on pages 112 and 115 of the hardback version of the book, or you can always go to OptionsPlaybook.com. Today, Brian discusses: When you would want to use an inverse skip strike butterfly A live example using Deckers Outdoor What might happen to the underlying, and how to structure a position around it? What is the risk? What is the reward potential? And more...
Options Playbook Radio 61: The Golden Rule In this episode, we are taking on more listener questions, including: In- versus out-of-the-money golden rules The top 10 mistakes made by options traders Ways to offset decay Getting what you pay for Volatility Moneyness and time value
Options Playbook Radio 60: Listener Question Palooza In this episode, Brian and Mark take on listener questions as they attend the Options Industry Conference. They take on topics including: Skip strike butterflies around AAPL earnings Regular butterflies versus iron butterflies Has expiration Friday changed in significance in recent years? What about triple and quadrupole witching? The idea of daily expiration options When is Rho a factor? Why is rolling a position so prominent?...
Options Playbook Radio 59: Skip Strike Butterflies, Continued In this episode, Brian continues his discussion of Skip Strike Butterflies. If you have the hard copy version of The Options Playbook, turn to page 108 for calls, or page 110 for puts. Today, Brian discusses: A review of last episode A real-world example using Priceline, which posts earnings on 5/7 before the open Let’s look at the ATM straddle for the options expiring on 5/8. What has happened previously to Priceline around earnings?...
