Options Playbook Radio

Today we will be using a skip strike butterfly in Amazon.  You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.    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. 

TESLA SKIP STRIKE CALL FLY Host: Brian Overby, Senior Options Analyst - AKA The Options Guy - at Ally Invest If you like to trade volatile stocks then TSLA has you covered. Today we're going to trade a Skip Strike Call Butterfly using Tesla options. This is an advanced play so make sure you've reviewed the Options Playbook before proceeding. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, and on the Amazon Kindle edition. 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.

Options Playbook Radio 243: Huddling Up About Premium Harvesting and Covered Calls Today Mark and Brian  answer questions about How to safely harvest premium in a volatile environment by selling puts What criteria should you evaluate when constructing a covered call portfolio?

Options Playbook Radio 242: Huddling Up About Expiration, Calls vs. Spreads and More Host: Mark Longo, Founder and CEO - The Options Insider Media Group Co-Host: Brian Overby, Senior Options Analyst - Ally Invest In this episode Brian and Mark huddle up to answer the following questions: QUESTION FROM Paul Vasquez: When is the “official” close as far as options expiration is concerned? I’ve had calls assigned and had stocks put to me when the strike was out of the money at market close but it moved in and out during after hours trading. Any light you can shed on how expirations work would be appreciated. Thanks Paul, Sacramento, CA QUESTION FROM B0R1NG: When do you just buy a call vs a spread? Is that ever the preferable option? QUESTION FROM COS7MNT: What’s the ideal time frame for trading options? Mostly short-term?    

Huddle up, listeners! We're taking your questions, including: The options question of the week: What is the largest open options position in AAPL right now? Given the skew set up in equities, why would you ever buy a collar? Why are there no options on VXAPL? Will we ever have a VIX index product that you can actually buy/sell? 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.

Huddle up, listeners! We're taking your questions, including: I've been lured in by the ongoing selloff in crude and have been thinking about a stock replacement in USO. Should I even bother? Is there a price where it's no longer worth it? What about timing? And more.... Does Ally allow people to close short positions below 10 cents without a fee? Are there any types of trades that, without brokerage fees, would be great trades? 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.

Now that the Fed has spoken, the market is reacting. This is a good opportunity for a front spread. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition. Specifically: The Fed has spoken What's a front spread? Using AAPL as an example Where is APPL now? Selecting strikes Selecting an expiration date Max risk and max gain 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.

When the market conditions are right, it can be a good time to trade a butterfly in the S&P 500. Now is the time. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition. Specifically: As of this recording, the VIX is higher than last week, but down a bit on the day A review of last week Where is the market now? Let's do another 20-point wide butterfly Selecting strikes What does it cost? What's the maximum gain? What about the hedge? And more... 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.

When the market conditions are right, it can be a good time to trade a butterfly in the S&P 500. Now is the time. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition. Specifically: Where is the S&P 500 index right now? Buying a December 7 butterfly Selecting strikes What is the total risk? What do we want to happen? What's the maximum upside? What is the market forecast? What to do if the market moves against us? Capital requirements And more... 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.

How can stock investors use options? You've come to the right place. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition. Specifically: A review of the AAPL collar from two weeks ago What about capital gains? Remember we had a small credit Where are we now? What about additional risk? What's an alternative? Using an example with FB Using a FB option as a surrogate for stock Setting up the trade Selecting expiration and strike Remember, one option for every 100 shares of stock 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.

Huddle up, traders! For your listening pleasure, Mark and Brian answer your burning options trading questions, including: Question from Barry Brown - Good morning. Have the show archives been withdrawn or are they still available? Question: If we put on a poor man's covered call position and the price moves up the short call, when do you recommend rolling, etc? Thank you. Your stuff is great. Really enjoy all you efforts. Thank you. Question from Douglas Tilley - Hello! Regarding long stock substitution: 1. With call options, are deltas additive? I.e. why are (2) 40-delta calls so much cheaper than (1) 80-delta call? This seems like buying equivalent total delta for about half the cost. 2. For more accurate stock substitution, do you ever use the technique of buying an ATM call while selling an ATM put? (Vs. buying calls for a desired total delta). What are the pros and cons (or nuances) of the 2 methods? I do notice that the 2nd method definitely requires more buying power, due to the short put. Thanks for

It's always a good idea to review basics. Today we're looking a covered calls, and it's cousin, collars. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition. Specifically: Lots a bad news around Apple What to do approaching the new year? Thinking about capital gains, taking losses What is the scenario? What will selling a covered call do? What is the risk? Reward? What would a collar look like? What would it cost? Risk and reward 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.

HD is announcing earnings soon. Let's look at how to set up a straddle to cap risk. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition. Specifically: What's happened since last week? What did we learn from the NVDA backspread from last time? What happened to the one without earnings? What happened to the one that contained earnings? Let's take a look at Home Depot Earnings are coming up Setting up the trade We know the max risk and max upside How many contracts should we do? What is our rationale? What's the goal? 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.

Nvidia is announcing earnings soon. Can we expect a dead cat bounce on the stock? You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition. Specifically: What has NVDA been up to lately? NVDA has an earnings announcement on 11/15 Selecting expiration dates Where is implied volatility for the expirations? What are our expectations for IV? Putting on a backspread with calls Setting up the trade What is the risk? What do we want to happen? Which to choose? Why? 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.

Being in the heart of FAANG earnings season, let's look at GOOGL and AMZN. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition. Specifically: What is happening in the markets right now? What about GOOGL and AMZN, specifically? What are the expected moves? What is our strategy? We're looking for positive theta, but negative vega Let's look at a GOOGL skip-strike butterfly Selecting strikes and expiration What is the cost? Maximum risk? Remember margin! Remember the risk of gap-up or gap-down What do we want to happen? What about AMZN? What is the expected move? Selecting strikes and expiration What is the maximum risk? Reward? What do we want to happen? 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.

Huddle up, listeners. It's time for Mark and Brian to answer your questions. Question from BuseKrus D - New to options, and working with a small account size. Looked to put on a trade with a strategy from the playbook (Christmas tree butterfly I think) with a 57-60-66 2x3x1 call fly for a total debit of 1.30. I've always heard that for a defined risk debit trade the max risk is the amount paid. However, the brokerage was saying I needed around 740 in my account to be able to put on the trade. Is there an explanation? Is the capital required to put on a trade greater than the possible max loss on defined risk debit spreads? Thanks. Question from Ron S6 - What's your suggested minimum account size to start trading options? Question from Lance Everett: Hello again Brian. Still enjoying the options playbook radio program. It's my quick options education fix for the week. I listen on my commute to work every Thursday. I have a few questions for your next Huddle episode if don't mind. If you can only answer one th

Let's go back in time and review the last two weeks' worth of trades, including: Bearish COST backspread What was the trade? What did we want to happen? How did it turn out? What did we learn? Then there was a NFLX calendar What was the trade? What did we want to happen? What did happen? Let's look at the VIX What about a TSLA fly? Setting up the trade What is the cost? What is the upside? 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.

Earnings in FAANG stocks are coming up, with NFLX leading the way on 10/16. We're going to do a long calendar spread with calls. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition. Specifically: A review of last week Why a calendar spread? Where is NFLX now? Earnings are released on 10/16 What is the expected earnings? Selecting a strike Setting up the trade What is the maximum risk? Reward? What do we want to happen? What is the net delta? And more 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.

Costco (COST) has earnings coming up next week. We're going to do a backspread with puts, or a ratio volatility spread. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition. Specifically: A review of last week COST will announce earnings on 10/4 What does the chart say? Let's do a backspread with puts What's the expected move? What's our take? Selecting the expiration and strikes What if we're wrong? What if we're right? What is the maxium risk? Reward? What happens the farther you go out in time? Does it work for every underlying? 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.

Tilray Inc. (TLRY) has gone up over 100% in two days. With stocks that move like this, it's a great learning experience. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition. Specifically: A review of last week's NKE diagonal spread What did we want to happen? What actually happened? What does that mean for the contract we bought? What do to now? Let's roll! Crazy moves in TLRY Why are the puts so pricey? What would Brian do? (WWBD?) Super high implied volatility And more.... 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.