Options Playbook Radio

In this episode, we are going to look at how to insure a long USO position using backspreads with puts. If you have the hardcover version of the book, you can follow along on page 87. If you want to follow along online, you can do so at OptionsPlaybook.com.   In this episode, Brian discusses: How the price of oil is reflected in USO Where are things priced now? How to ensure a USO stock position How to tie backspreads to a stock position This is AKA a pay-later put How to set it up What are we hoping will happen? Potential gains and losses Caveats and considerations

In this episode Brian is discussing the fig leaf strategy for the oil sector. For those of you with the hardcover version of the book, this can be found on page 56. If you are following along online, it is always at OptionsPlaybook.com.   Today Brian discusses: A review of the fig leaf strategy Setting up an USO fig leaf Using options to create a larger position instead of “double up to catch up” Constructing the fig leaf What will it cost? What is the risk?

Today, we are still discussing Christmas Tree Butterflies. For those of you with the hardcover version of the Options Playbook, you can find this on page 118. If you are following along online, it is all at OptionsPlaybook.com. Today, Brian discusses: Why are we talking about Christmas Tree Butterflies around earnings? Using a real-world example with FB The normal Christmas Tree Butterfly pattern Customizing the Christmas Tree Butterfly to minimize risk Maximum risk, maximum reward What is the forecast on the underlying?

In this episode, we are continuing our coverage of Christmas Tree Butterflies. For those of you with the hardcover version of the book, this is on pages 118 (calls) and 120 (puts). If you are following along online, you can find everything you need on OptionsPlaybook.com.   Today Brian discusses: Back to earnings season equals good scenarios for butterflies Why? Creating a paper trade with Amazon, using puts Setting up the trade What strikes we are using What will this cost? Where do you want the stock to go? Having realistic expectations What is the upside? And more

In this episode, we are looking at the Christmas Tree Butterfly. If you are following along with the hard cover version of the book, it is on page 118 (calls) and page 120 (puts). If you are online, this information is always available on OptionsPlaybook.com.   Today Brian discusses: What is a Christmas Tree Butterfly? Setting it up How does a Christmas Tree Butterfly differ from a standard butterfly? Where is the sweet spot? Why do a Christmas Tree Butterfly instead of a standard butterfly? And more...

In this episode, we are reviewing some of the paper trades discussed in the past few Iron Condor episodes. If you are following along with the hardcover book, we are on page 126. You can always find this on OptionsPlaybook.com.   Today, Brian discusses: What was going on when we put on a short SPX paper trade last week? A review of the set up and the cost What do things look like now? Are we up? Down? What about time decay? What about the VIX? Should we roll? Going back two weeks, reviewing the AAPL condor. Moving forward with an AAPL roll Adjust when you can, do not wait What will it cost to roll? How to set it up?

In this episode, we are continuing our coverage of Iron Condors. If you have the hardcover version of the book, this is available on page 126. If you are following along online, you can always find this on OptionsPlaybook.com.   Today Brian discusses: A review from the previous episodes, including what happened in AAPL since last time What do to now that AAPL has moved close to the bottom strike? Setting up a short-term iron condor using an index Beware of the holiday and volatility Setting it all up Things to consider

This week we are continuing our discussion of iron condors. For those of you playing the home game, you can find this information on page 126. If you're following along online, all of this information is always at OptionsPlaybook.com.   Today Brian discusses: A review of last time, which discussed indexes Looking at an iron condor on AAPL, going out 23 days What about earnings? Dividends? Quick and dirty formula for probability How does the math play out? Brian assembles an iron condor on AAPL What's the maximum risk? Reward? Getting out before expiration Caveats And more

In this episode, Brian is talking about iron condors. If you have the hardcover version of the Options Playbook, you can find this information on page 126. If you are following along online, all of this information is always available at OptionsPlaybook.com.   Today, Brian discusses: How iron condors differ from regular condors Looking at iron condors with index options Why iron condors work well with index options Looking at an example with the S&P 500 Index

In this episode, we are discussing iron condors. For those of you with the hardcover version of the book, you can find this information on page 126. If you want to follow along online, it is all on OptionsPlaybook.com.   Today Brian discusses: The set-up of an iron condor Why is it called a condor? What is an iron condor? What is the next risk? What is the potential reward? When to get out? What do you want to happen?

Over the last few weeks, we have been talking about butterflies, and last week, we covered inverse skip strike butterfly. This week, we are hitting that, but with calls. You can find this on page 112 of The Options Playbook, or look for it on OptionsPlaybook.com   Today Brian discusses: A review of last time, which was centered on DECK earnings Looking at an inverse skip strike butterflies with calls What is the outlook? What is the expected move? What is the risk? Reward?

In this episode, we're discussing the inverse of skip strike butterflies. This can be found on pages 112 and 115 of the hardback version of the book, or you can always go to OptionsPlaybook.com. Today, Brian discusses: When you would want to use an inverse skip strike butterfly A live example using Deckers Outdoor What might happen to the underlying, and how to structure a position around it? What is the risk? What is the reward potential? And more

Options Playbook Radio 61: The Golden Rule In this episode, we are taking on more listener questions, including: In- versus out-of-the-money golden rules The top 10 mistakes made by options traders Ways to offset decay Getting what you pay for Volatility Moneyness and time value    

Options Playbook Radio 60:  Listener Question Palooza In this episode, Brian and Mark take on listener questions as they attend the Options Industry Conference. They take on topics including: Skip strike butterflies around AAPL earnings Regular butterflies versus iron butterflies Has expiration Friday changed in significance in recent years? What about triple and quadrupole witching? The idea of daily expiration options When is Rho a factor? Why is rolling a position so prominent?        

Options Playbook Radio 59: Skip Strike Butterflies, Continued In this episode, Brian continues his discussion of Skip Strike Butterflies. If you have the hard copy version of The Options Playbook, turn to page 108 for calls, or page 110 for puts. Today, Brian discusses: A review of last episode A real-world example using Priceline, which posts earnings on 5/7 before the open Let’s look at the ATM straddle for the options expiring on 5/8. What has happened previously to Priceline around earnings? What to do about that? What is the upside? What is the downside?      

Options Playbook Radio 58: Back to Butterflies In this episode, we’re discussing skip strike, or modified/broken wing butterflies. If you’re playing the home game, you can find this information on page 108 (skip strike butterflies with calls) or page 110 (skip strike butterflies with puts). Additionally, it’s always available on OptionsPlaybook.com. Today, Brian discusses: Understanding butterflies first How a skip strike butterfly is different than a regular butterfly Risk trade-offs versus a standard butterfly Benefit: doing it for a credit Why you want to be directional in your forecast And more…

Options Playbook Radio 57: Trading Diagonal Call Spreads around Earnings In this episode, Brian discusses trading around earnings, specifically using diagonal call spreads. You can find details on this at: tradeking.com/allstars Brian discusses: An example using Gilead Sell a call before earnings, buy a call after earnings Why is this called a diagonal? What is the maximum risk? Things to consider And more…

Options Playbook 56: Butterflies Around Earnings It is earnings season, and Brian discusses multiple butterfly strategies you can use around this time of season.

Options Playbook Radio 55: Huddle Up for Listener Questions. Today, we’re covering listener questions. Brian and Mark discuss: ·         Which OTM call strike performs best when the underlying rallies? ·         This covers: ·         Timing ·         Volatility ·         Volatility skew ·         Alternatives ·         And more…    

Options Playbook Radio 54: Butterfly Spreads, continued In this episode we are continuing our coverage of butterfly spreads. For those of you with the hardcover book, you can find this information on pages 103 and 104. You can also follow along on OptionsPlaybook.com. Today, Brian discusses: Two real strategies: a butterfly around IBM earnings, and a SPX Let’s look at what is happening with IBM IBM going into earnings Butterfly using IBM weekly options Focusing on the midpoint Maximum risk, maximum upside Remember not to go for a home run What might happen after earnings? Why do you want implied volatilities to decrease? Doing butterflies on indexes, using puts Maximum risk, maximum upside Differences between weekly options and standard options to keep in mind Adjusting your legs Don’t forget that index options are cash-settled, and have 60/40 tax treatment