Options Playbook Radio

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? Understanding the odds. Remember that you CAN lose. Rationale for the expiration date

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? Setting up the iron condor What is the maximum risk? Gain?

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 scenario

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 delta, and IV Under what circumstances would you buy an out-of-the-money option?

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 option contract Picking the right contracts What's the maximum risk? Reward? What is the outlook? And more...

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 least an 18% move in TWTR after earnings (non-directional) Setting up the trade Picking strikes Selecting the right expiration What is the net cost? What is the risk? Reward? What do we want to happen?

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