In this episode, Brian is joined by Mark to take on listener questions. They discuss: What indexes or products work best for synthetic covered calls? That brings up: Fig leaf Greeks How to roll
In this episode, Brian is joined by Bill Ryan , Managing Director at the NYSE. They discuss: What are ByRDs ? What about pricing? Is time on your side? Probabilities and their relative factors VWAP matters: find out more at nyse.com/byrds What products have ByRDs? What type of expirations are there? Can you sell ByRDs to bring in a credit? Can retail customers trade ByRDs?...
Mark and Brian are taking your questions. Question from Jim Duggan: FOMC and Brexit are approaching. What are some good ways to use options to play Brexit or FOMC? Question from Vegan: For an options newbie, how would I construct a trade with most possibilities to win? I understand that the potential profit might be small. What time frame is good as well?
This week, we are continuing the conversation about long butterfly spreads with puts that started last time. You can find this information on page 104 of the Options Playbook, or on OptionsPlaybook.com . In this episode, Brian discusses: A review of last week. What was the plan? Does the plan need to be revised? Can we still make a profit? How to manipulate the legs to create a new, profitable positions. What is the new plan? What is the maximum risk? Reward? What do we want to happen?...
Today we're looking at a strategy based on the overall market, a long butterfly with puts. You can find this on page 104 of the Options Playbook, or you can always find it on OptionsPlaybook.com Specifically: Looking at the overall market: where is the S&P 500? Will there be a new all-time high, or will there be a pullback? European verus American style options Weekly versus monthly options Setting up the trade Maximum risk & profit What will happen to implied volatilities? Contingency p...
Coming to you live (to tape) from the Options Industry Conference, Mark and Brian are back and they have more listener questions to address. This week, they are taking on: Do the remaining specialists/DPMs do a good job of making markets, or are there too few of them? Are there too many strikes? Expirations? Why have the more exotic stratgies become more popular?
Huddle up, listeners. We're taking listener questions. Vega: Do puts and calls become more expensive ahead of events due to risk premium? If so, how do I avoid that? When do you want implied volatility to increase? How to avoid swings around earnings Critter: Is selling premium less risky than buying premium? Build your strategy around your forecast Common misconceptions
Huddle Up: Listener questions and comments Bean bag: Could you discuss the put/call ratio, its use, and metrics as a tool? Reid: Do options stats or unusual activity predict stock movements accurately?
You can find information on iron condors in the Options Playbook on page 126. You can also always find all of this information on OptionsPlaybook.com . In this episode, Brian discusses The AMZN iron condor from last week General guidelines for earnings trades A review of the GOOG trade from a few weeks ago A deep look at TSLA What is the ATM straddle for the nearest expiration? Picking the strikes Determining the over/under so you can stay away from that What is the upside? Downside? Understandi...
With it being earnings season, let's take a look at a strategy around AMZN earnings. You can always find information on iron condors on OptionsPlaybook.com. Today Brian discusses: A review of the GOOG skip-strike butterfly from last week Taking a look at AMZN going into earnings Where is the long straddle of the nearest-term expiration? Why a skip-strike butterfly didn't work in this case. Why was this the case? How to make the most of the high implied volatility? How to get way out-of-the-money...
Today we are looking at a skip strike butterfly with calls on GOOG, which announces earnings after the close the day of this recording. You can find this information on page 104 of the Options Playbook, or on OptionsPlaybook.com . This includes: A quick review of the VZ paper trade we put on last week What's going on in GOOG Why are we setting up a skip strike butterfly? Setting up the trade How are we paying for the trade? What's the upside? Downside? The worst case scenario The best case scena...
Last week, we initiated a bull put spread paper trade in GPS, and reviewed a YHOO skip-strike butterfly. Now, we will review. Specifically: Reviewing strategies. What strategies work best and when? Looking at the long call, which is on page 40 of The Options Playbook , or on OptionsPlaybook.com What happened since GPS announced sales? What is going on with YHOO? Setting up a paper trade in VZ What is notable right now in VZ Looking at buying an out-of-the-money put in VZ The setup, the cost, the...
Last week, we discussed skip-strike butterflies on YHOO, and put on a paper trade. Today, we are looking at Gap Stores (GPS), and putting on a paper trade that is based on a neutral to bullish outlook. Specifically: A review of last week What did we want YHOO to do? What did YHOO do? Time decay and expiration Taking a look at GPS Where is the underlying? What is the trading range? What is the outlook? Setting up the trade What is the maximum risk? What is the maxiumum upside?...
Great thanks to everyone who participated in the Options Playbook Radio 100th episode extravaganza. Today, we are heading back to the playbook and looking at a YHOO skip-strike butterflies with an approximately 15-day expiration. Specifically: Avoiding the expiration that has the earnings Setting up the trade What is the maximum profit? What is the maximum risk? What do we want to happen in YHOO? When would you use a skip-strike butterfly? What's the worst-case scenario?...
Today, Brian and Mark take a look at back at episode 96 with Mark Sebastian from Option Pit . They discuss: What was the setup at the time for AMZN? What position did we create? What was the net cost? What was the outlook? What does Mark Sebastian think of the trade? What would Mark do?...
In the last few episodes, we have talked to other options experts. Today is no exception, as we are joined by "Uncle" Mike Tosaw from RCM Wealth Advisors. They discuss: Episode 93: Backspreads with Puts on NFLX recap Synthetic options The impact of volatility Directionality into earnings What will happen to volatility if your forecast is correct? And more
The 100th episode of Options Playbook Radio is the gift that keeps on giving. In this third part of the celebration, Mark and Brian are joined by Russell Rhoads, from the CBOE Options Institute. They discuss: What is the VIX? History of the VIX Other volatility products Where are these products traded? How does venue impact the cost of trading? How are people using volatility products? Is there a difference between ETFs and ETNs on volatility? A good candidate for a paper trade...
We are continuing with the 100th episode spectacular. Today, our featured guest is Dan Sheridan from Sheridan Options Mentoring. They discuss: A review of a TWTR iron condor paper trade What was the situation when the trade was put on? What does Dan think? Doing a spec trade What would Dan do? Should we have considered weekly options? What about gamma? Did we use the baseball bat for its intended purpose?...
For this special episode, Brian is joined by: Mark "the Voice of Options" Longo Andrew "the Rock Lobster" Giovinazzi They discuss: Iron condor on AMZN Setting up the trade What did they decide? What happened after the paper trade? Premium selling relative to earnings The zones, and when to avoid them Caveats, greeks, volatility, and other considerations And more
Today it is time to take a longer term view on oil. How will this happen: the fig leaf strategy. For those of you at home, you can find this on page 56. You can always find the information on OptionsPlaybook.com . Today, Brian discusses: Will OPEC work with oil producers to cut production? Taking a look at oil services companies, specifically XOM What is the fig leaf strategy? Setting up the trade Does the company pay a dividend? Taking a longer-term outlook for XOM Looking for a high-delta opti...
We're back from the listener question/congressional aide briefing break, and ready to move through the Playbook. Today we are looking at an iron condor going into earnings. This is on page 126 of The Options Playbook , or you can always find it on OptionsPlaybook.com . Specifically: Looking at a TWTR paper trade going into earnings (which, at the time of this recording, was going to be in 17 minutes) TWTR is at the highest IV it has ever been before earnings The long straddle is implying at leas...
In this episode, Brian beams in from Capitol Hill and is joined by Mark to answer listener questions. You wanted to know: Question from 777-Are there expectations for a Google stock split anytime soon? How would that impact the options trading? Question from Hot Emini-There is a big disconnect in retail that theta is the end-all greek. But isn't vega the king greek for pros? What about gamma? Where does that fall in the mix?
In this episode, Brian is looking at skip strike butterflies with call options. You can find this information in the hardcover and Kindle versions of The Options Playbook, and it's always available on OptionsPlaybook.com . He discusses: A review of last week's iron condor What happend to AMZN? Why do this around earnings? What is the marketplace expecting? Aka expected move or over/under How to set up the trade What do you want to happen? What is the risk? Reward?...
Today we are looking at putting on an iron condor on AMZN before earnings. Specifically: Why volatile markets are very interesting trading environments Where is AMZN? How to use volatility to create a position What is the rationale? What is the outlook until earnings? Setting up the trade What is the maximum risk? What is the maximum gain? What is the goal?
Today we are taking on listener questions, specifically about options pricing. You will be able to find information on options pricing in the Options Playbook. You can always find it on OptionsPlaybook.com. Today, we discuss: In a bull call spread, or even a bear put spread, (AKA long spreads), how to you manage time decay? Picking your strikes What is the outlook? Remember volatility What is the biggest benefit of a spread? And more...
In this episode, we are going to talk about a trade around earnings. One of Brian's go-to trades when he thinks that there will be more volatility than what the market is predicting, he turns to backspreads, in this case with puts. You can find this on page 87 of The Options Playbook, or, as always, on OptionsPlaybook.com. In this episode, Brian discusses: NFLX announces earnings on 1/19, so we will set up a paper trade to discuss that week What is the market saying? How will this inform setting...
In this episode, we are discussing how to adjust positions. You can find this information on page 104 of The Options Playbook. Brian goes into more detail with: How to adjust a put butterfly? How was the butterfly set up on Monday? What was the direction? What was the concept of this strategy? What has happened since the trade was put on? How, and when, to make adjustments What do we want to happen? Do you want to see a video of what was just discussed? Send Brian an email through Facebook , or ...
We have been talking about double diagonals for the last few weeks, which we are continuing in light of the Fed meeting yesterday. You can find this information on page 87 of the Options Playbook, or on OptionsPlaybook.com . Today, Brian discusses: The double diagonal strategy around GE It’s been almost 11 years since the Fed raised rates Where was GE trading? Setting up the double diagonal in GE Don’t forget commissions! What is the maximum reward? Risk? Don’t manage risk, and you’ll get the st...
You can find double diagonals on page 128 of The Options Playbook, or you can follow along online on OptionsPlaybook.com. Today, Brian discusses: A review of double diagonals Setting up a double diagonal on the S&P 500 index Yes, you can do this with options expiring tomorrow What will this cost? What do you want to happen? What is the risk? Reward? And more
You can find information about double diagonals on page 128 of the Options Playbook, or you can always find it on OptionsPlaybook.com. In this episode, Brian discusses: Will the Fed increase rates the next time they meet? How can using double diagonals take advantage of the probability of the Fed increasing rates? Structuring the double diagonal to wrap around the news from a timing point of view What about volatility? Setting up the trade What do we want to happen? What is the biggest thing to ...
