Options Playbook Radio

We are taking a look at covered calls today. If you want to follow along, we are on page 50 in the Options Playbook. You can always follow along on OptionsPlaybook.com, or on the Amazon Kindle edition. Today, Brian covers: A long-term straddle that we looked at about four weeks ago on the S&P 500 A covered call in MRO What is the option chain in MRO? Figuring out the upside What is the cost? What is the outlook? Do you have questions that you would like answered on the show? Send them to Brian at theoptionsguy@tradeking.com

In this episode, Brian and Mark huddle up to answer listener questions. They take on: Question from Yukoner: Do you ever do spreads in LEAPS. Why and how? So I used to trade the LEAPS rather than buy the stock. Is that a good use case? Question from Tradecraft: Is there a correlation between high options OI and options price levels? Do you have questions that you would like answered on the show? Send them to Brian at theoptionsguy@tradeking.com

This week we are going to look at a cash-secured put, which you can find on page 48 of the Options Playbook. You can always find it online at OptionsPlabyook.com, or in an Amazon Kindle version. Today Brian discusses: OPEC decided to cut oil production, so oil prices and stocks spiked Looking at Marathon Oil, MRO Where is it trading today? How to put on a cash-secured put in MRO? Why is the timing right to do an oil play? Selecting the expiration Remember that you want to be put the stock Where are you willing to buy the stock? That's how you pick your strike Where is IV right now? What will it cost? What is the maximum cost if you're put the stock? What happens if you're wrong on the strike? How to get more upside? Sell a put to pay for a bull call spread Do you have a question that you would like to have answered on Options Playbook Radio? You can submit your feedback right on the Options Playbook Radio Facebook page. There, you will also find past episodes, and more from your host Brian Overby.

Last week we talked about diagonal spreads, which can be found on page 99 of the Options Playbook. You can always find this on the Options Playbook website. First up, a listener question: Question from Mike - Hello Brian, Love the show. I am curious as to why one would ever use a collar instead of a bull put spread. Am I incorrect in thinking these strategies are identical with respect to risk/reward? Since the put spread will cost less to put on, it seems like the better trade. As an additional advantage, there is no need to tie up the capitol to hold the underlying. If you want to read the blog post Brian mentions, you can find it here. Next, a review of last time: We were bearish going into earnings in LEN What happened after the paper trade? The gaggle of securities (it started out as a strangle) Do you have a question that you would like to have answered on Options Playbook Radio? You can submit your feedback right on the Options Playbook Radio Facebook page. There, you will also find past episodes,

We have recently been doing a lot of long spreads, and then adjusting based on market conditions. If you want to follow along with The Options Playbook, you can find long spreads on page 60, and long strangles on page 72. Today, Brian discusses: A review of last time News since the last episode Putting on a position because of the chart Looking at selling aput below the 2100 strike What will it cost? What is the current position? We now have a gaggle of securities Putting on a diagonal spread in LEN Do you have a question that you would like to have answered on Options Playbook Radio? You can submit your feedback right on the Options Playbook Radio Facebook page. There, you will also find past episodes, and more from your host Brian Overby.

For the last few weeks, we have been discussing long put spreads, which can be found on page 62 of The Options Playbook. You can always follow along online on OptionsPlaybook.com. This week Brian discusses: A reivew of the last two trades he covered What has the market done since? Where does it leave the spread? What do we do now? How will we reduce risk? Setting up the trade When do we close out? Setting up a new trade What is the outlook? Do you have a question that you would like to have answered on Options Playbook Radio? You can submit your feedback right on the Options Playbook Radio Facebook page. There, you will also find past episodes, and more from your host Brian Overby.

Continuing with the long SPX put spread that we put on last week, Brian looks at current market conditions and decides if and how to make any adjustments. If you want to follow along in the Options Playbook, this is on page 62. You can always find this information on OptionsPlaybook.com. This week Brian discusses: What happened after the Fed meeting last week? A recap of last week's strategy What did the market do? Based on how the market moved, how do we make an adjustment? Picking the strikes What is the risk? Cost basis? What are the possibilities within the strikes of the butterfly? Given where the market is, what should we do? What is the outlook? What is the adjustment Do you have a question that you would like to have answered on Options Playbook Radio? You can submit your feedback right on the Options Playbook Radio Facebook page. There, you will also find past episodes, and more from your host Brian Overby.

This week, we are moving past earnings to look a the overall market. To do this, we'll try a long put spread, which is on page 62 of The Options Playbook. You can always find the information online at OptionsPlaybook.com. Today, we discuss: A review of last week's bull call spread on FL What was our forecast? What happened? Now that earnings are mostly over, let's look at the general, overall market Setting up a long put spread in the S&P 500 Picking expriations: why weekly options over standard options? With these expriations, we are selling more time premium that we are buying Picking strikes: where is the SPX right now? Will Labor Day impact the spread? What was the net cost? Risk? Don't forget about commissions!

To follow along, you can find long call spreads on page 60 of the Options Playbook. You can also play along online at OptionsPlaybook.com In this episode, Brian discusses: A review of last week's episode featuring TIF What happened since putting on the TIF paper trade? Moving on to FL, which reports earnings tomorrow, August 19 Where is the long straddle trading on the options expiring on August 19? What is the outlook on FL? Setting up the trade What is the risk? Reward?

This week Brian takes a look back at his previous earnings trade on PCLN. What went right? What went wrong? Tune in to this episode of Options Playbook Radio to find out. Have a question for Brian? He's happy to answer them directly via the TradeKing Facebook Page - https://www.facebook.com/tradeking.

We're still in earnings season, so let's take a look at Priceline. Sticking with butterflies, this week we are looking at put butterflies. You can find this on page 104 in The Options Playbook, but you can always find this online at OptionsPlaybook.com. This week we cover: Review of last week's GOOG butterfly What a difference choosing expirations can make Upcoming Priceline earnings (before the open on Aug. 4) What is the at-the-money long straddle? What is the outlook? Setting up the butterfly What kind of move is the market expecting? What is our maximum risk? Reward? And more

'Tis the season...earnings season. Instead of avoiding earnings, we are jumping right in, and are going to do so with a long butterfly with calls on GOOG. If you want to follow along with the book, you can find this on page 102. Today, Brian covers: A review of last time, including a mistake we made with the math GOOG announces earnings after the close on July 28 Setting up a butterfly to capture earnings numbers What is the most at-the-money straddle in the nearest-term expiration? Why do we look at this straddle number? What is the outlook? Setting up the butterfly What kind of move is the market expecting? What is our maximum risk? Reward? Choosing the 9-day versus the 2-day expiration

Brian is back to discuss how things went with the the long call that he discussed last week. Specifically, he discusses: The AMZN long call spread from last week Turning that into a standard butterfly with calls What happened after we placed the paper trade? What was the adjustment? Where do things stand now? How would we close the position? What is the risk? Reward?

We are back to strategies this week and are looking at long call spreads...with a twist. If you're following along at home, this is on page 60 of the Options Playbook, but you can always find it on OptionsPlaybook.com. Jumping in: AMZN is announcing earnings in two weeks, but we are looking to avoid those earnings We're taking a traditional long call spread, and trying to make it time/premium positive What does that mean? What is the break-even? Setting up the trade What adjustment would we make to it?

Mark and Brian are diving in to listener questions, including: Question from skeball: Where do you see the VIX going, and how will impact stock picking in this market? Which leads to: Who does the volatility swings benefit? Day traders? Swing traders? Long-term traders? Summer doldrums No more earnings What will the Fed do? When/how does VIX revert to the mean?

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 plans