Options Playbook Radio

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 up the trade? What do we want to happen? What will it cost? What is the risk?

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 go here.

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 stupid award What do we want to happen? What is the market saying? So, what did happen? And more

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 worry about?

We are moving on to double diagonals, which can be found on page 128 of the Options Playbook. You can always find this on OptionsPlaybook.com. In this episode, Brian covers: Double diagonals overview Why are they called diagonals? Setting up the trade Risks and benefits And more

Options Playbook Radio 87: Listener Questions on the Short Squeeze & Brokers It's time to huddle up as Mark and Brian take on listener questions. Topics include: Does "hard to borrow" apply to options the way it does to stocks? Who is the best online broker for stocks, options, and futures?

Wait a minute, is that Mark Longo? Yes it is, and he joins Brian on this episode of Options Playbook Radio, in which they take on listener questions, which include: Inflated implied volatility skewing positions How to find stocks that have inflated options premium

As we are in the thick of earnings season, let's take a look at two different trades that one could employ to capitalize on movement around earnings. This week, Brian discusses: A review of skip-strike butterflies, bullish and bearish Looking at FB earnings What is the market expecting? How to set up the trade if you think there will be a lot of volatility? Only a little volatility? What is the downside? Upside? How about a ratio spread? And more

Huddle up, traders. Today's discussion addresses listener questions. They include: Nelson from NC: Exploring covered calls on dividend playing stocks. Remember rho You might not receive as much premium. Why? Dr. Ram: How to trade multi-leg option strategies in an IRA account You can't use anything that provides leverage You also have to avoid unlimited risk Remember that you have to be approved within the IRA account Depending on many factors, you will be assigned a level of options trading Brokers can decide what strategies are available to you

In this episode, we are discussing skip-strike butterflies with calls that we did last earnings season. This was in episode 77. For those of you with the hardcover version of the book, please turn to page 108. If you are following along online, this is always at OptionsPlaybook.com. Today Brian discusses: Setting up a skip-strike butterfly on AMZN around earnings. Where is the market right now? What do we want to happen in AMZN? What is the maximum reward? Risk? How to use the proceeds of one leg to buy the other. The good news and the bad news.

In this episode, we are discussing. If you have a copy of The Options Playbook, this information is available on page 68. You can always follow along online at OptionsPlaybook.com. Today, Brian discusses: The caveats of long straddles Why do long straddles work in this market climate? Looking at long straddles for GE, which announces earnings on Friday, October 16, before the open. What is the marketplace implying GE could do AFTER earnings? Setting up the trade What do you want to happen?

Dan Sheridan is back with Brian, and today they are discussing how to set up an iron butterfly on the RUT. You can find this on page 106 of the Options Playbook, or on OptionsPlaybook.com. They discuss: Looking at a two-week iron butterfly in RUT Where has RUT been for the last six months? Setting things up, and why might width be different? What is the risk? Why do this in a volatile market? How and why is this repeatable? What is the plan? And more

In this episode, Brian is joined by Dan Sheridan from Sheridan Options Mentoring. They continue the discussion of Iron Butterflies, which began last week. If you have a hardcover version of the book, this is on page 106. They discuss: What is the difference between an iron condor versus an iron butterfly? Why are iron butterflies popular? Receiving a credit versus paying a debit. What about risk? Advantages of iron butterflies Are iron butterflies better than other strategies? What underlyings do people like to do iron butterflies on? What about taxes and commissions?

Lately, we have been discussing inverse skip-strike butterflies. Today, we are discussing times when it is a good idea to use inverse skip strike butterflies.   Today, Brian discusses: What will the Fed do? (They kept rates steady) Setting up an inverse skip strike butterfly on the bearish side of the S&P 500 What will it cost? What do you want to happen? What is the risk? Don’t forget about margin What is the best-case scenario? What is the maximum reward? And more

Today we are continuing the discussion of Inverse Skip-Strike Butterflies, which began last week. If you are following along at home with the hardcover version of the book, you can find the information you need on page 112 (calls) and page 115 (puts).   Today, Brian discusses: A real-world example using NFLX You can find the discussion on NFLX here Where is the 30-day IV in NFLX? Why is the 30-day IV where it is? What about the market as a whole? Setting up the position What do we need to happen in NFLX? What is the risk? Reward? Considerations and caveats And more

In this episode, we are discussing an inverse skip-strike butterfly, which you can find on pages 112 (calls) and 115 (puts) of The Options Playbook. You can also find all of this information on OptionsPlaybook.com.   Today Brian discusses: The set-up of an inverse skip-strike butterfly What do we want to happen? How much will it cost? What is the maximum risk? What is the maximum gain? When does this make sense?