Options Playbook Radio

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? Should it be limited to a number of names? Index versus equity options Nelly2 wants to know about assignment. Just so I am clear on the spread assignment thing. If I am in SPX, then I just get cash if the index closes inside my spread. But if I am in a stock, then I get the stock? Cash-settled Guidelines for cash-settled versus regular settled Sellers and buyers rights and obligations

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 your side Picking the expiration Picking the strikes What will this cost? What is the maximum risk? Reward? Do you have a question that you want featured on an upcoming episode of Options Playbook Radio? Send Brian an email at: theoptionsguy@invest.ally.com.

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 question that you want featured on an upcoming episode of Options Playbook Radio? Send Brian an email at: theoptionsguy@invest.ally.com.

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 strikes Picking expiration What's the maximum risk? What will this cost? Butterfly considerations What do we want to happen? Do you have a question that you want featured on an upcoming episode of Options Playbook Radio? Send Brian an email at: theoptionsguy@invest.ally.com.

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 featured on an upcoming episode of Options Playbook Radio? Send Brian an email at: theoptionsguy@invest.ally.com.

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 knowledge of options? Thanks. Do you have a question that you want featured on an upcoming episode of Options Playbook Radio? Send Brian an email at: theoptionsguy@invest.ally.com.

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 spread What did FCS do since putting on the trade? Re-introducing the fig leaf with AMD Using a LEAPS option Setting up the trade Picking strikes What will it cost? Why not just do a covered call? Do you have questions that you want to have answered on an episode of Options Playbook Radio? Send them to Brian at theoptionsguy@invest.ally.com.

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

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?

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, add them together and that is the expected move. Is that correct? If you have questions for Brian, send them to theoptionsguy@ally.com.

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 execute my first trade. What trade do you recommend? Question from Meats: Would you describe successful options trading as primarily singles and doubles or more swing-for-the-fences home runs? Question from Mary: What is the shortest expiry available for plain vanilla options?

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 earnings? Selecting the expriation Selecting the strikes What is the maximum risk? Reward? What is the ideal scenario? Do you have questions that you would like answered on the show? Send them to Brian at theoptionsguy@tradeking.com.

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 Looking at the implied volatility How to use time premium What is the net credit? What is the maximum risk?

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 the net credit? What is the maximum risk?

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?

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 Setting up the trade What is the expected move on the May 19 contracts? What is the cost? Do you have questions that you would like answered on the show? Send them to Brian at theoptionsguy@tradeking.com.

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 movement? What is the risk? Upside? Do you have questions that you would like answered on the show? Send them to Brian at theoptionsguy@tradeking.com.

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 cost? You get more delta when you have more time on OTM options What about the dividend? Do you have questions that you would like answered on the show? Send them to Brian at theoptionsguy@tradeking.com.

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 expirations What is the net cost for the spread? What do we want to happen? Plus, reviewing the GPS butterfly and the ABT straddle Do you have questions that you would like answered on the show? Send them to Brian at theoptionsguy@tradeking.com.

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? When does ABT announce earnings? Putting on a 35-day straddle Picking strikes What is the cost? What about a fig leaf? (aka leveraged covered call) Picking the strikes What is the cost? Do you have questions that you would like answered on the show? Send them to Brian at theoptionsguy@tradeking.com.