Options Playbook Radio

Options Playbook Radio 53: Butterfly Spreads Today in Options Playbook Radio, we’re discussing butterfly spreads. For those of you with the hardcover version of the book, this can be found on pages 103 and 104. You can always find it on OptionsPlaybook.com as well. Today, Brian discusses: What do we mean by legs? How are butterfly spreads entered as a trade? Looking at an example using XYZ calls Where do you start? What is the net debit? What is the max risk? What is the max gain? What is the break-even? Look at this as two spreads And more…

Options Playbook Radio 52: Front Spreads, Part Two In this episode, we’re covering front spreads. For those of you with the hardcover book, that information can be found on page 80 (calls) or page 82 (puts). You can also find everything on OptionsPlaybook.com. Today, Brian discusses: A review from last week, what is a front spread, what about risk, etc. Why do this instead of a cash-secured put? Let’s look at this using AAPL as an example Comparing a covered call and front spread What price does the underlying need to hit to get a benefit? Ways in which the front spread works better The tradeoffs between a covered call and front spread When does a front spread make more sense? Now again with puts      

Options Playbook Radio 51: Front Spreads In this episode, we’re talking about the front spread. In the book, this is on page 80 (calls) and page 82 (puts). Or, just find it on OptionsPlaybook.com. In this episode, Brian discusses: What is a front spread? What about unlimited risk?  What is the goal of this spread? Maximum risk, maximum gain, and breakeven How to do a front spread combined with stock And more…    

Options Playbook Radio 50: Listener Takeover Today, Brian and Mark huddle up to discuss: What is time premium? Why does it exist? Why can’t you trade an option for its intrinsic value? Are there any tips to help a new trader process so much options-related information?

Options Playbook Radio 49: Long Calendar Spreads into Earnings In this episode, we are covering trading around earnings. For those of you with the hardcover book, you can find this on page 94. If you’re following along online, you can find it on OptionsPlaybook.com. Today, Brian and Mark discuss: If you put on a long calendar spread, what do you want to happen to volatility after the trade is put on? Good places to review are episodes 36 and 37 At look at LULU pre-earnings Setting up a LULU calendar spread What do you want to happen? What is a realistic profit outlook?      

Options Playbook Radio 48: Theta, Revisited In this episode, Mark and Brian are back and taking on your questions. In this episode, they discuss: Theta data When decay flattens out Riding the road of premium decay What is the optimal ratio of theta versus gamma? And more…

Options Playbook Radio 47: When to Roll Protective Puts Today, Mark and Brian answer listener questions, including: When to roll protective puts? What to pay? How far out should you look? And more…

Options Playbook Radio 46: Paper Trade for ABX Earnings In this episode, we are covering a specific paper trade strategy around an earnings report.  It will be a long calendar spread with calls, which is on page 90. You can also find it on OptionsPlaybook.com.  You can also learn about long calendar spreads in Options Playbook Radio episode 37. Today, Brian discusses: The forecast based on the chart The chains for selecting the paper trade Volatility of ABX 52-week history of ABX, and dividend Selecting the right options, and don’t forget weekly options What to keep in mind when trading around earnings Looking at various scenarios And more    

Options Playbook Radio 45: Combinations, continued. Continuing from last week, we are still discussing combinations. This information can be found on pages 76 and 78 of the hardcover book, or on OptionsPlaybook.com.   Today, Brian discusses: Clarification on combinations using a real example: AAPL Long combination, instead of outright stock purchase Looking out to January 2016 Rights and obligations How the combination works and its financial impact Don’t forget about margin! How does it work? Who does it work for? What about doing this in an IRA Account? Let’s do the math What about dividends? Let’s take a look at GOOG. Advantages/disadvantages

Options Playbook Radio 44: Combinations Welcome back to Options Playbook Radio, where today we’re discussion combinations, or combos. If you have the book, we’re on page 76 (long) or 78 (short). For those of you following along online, you can find it on OptionsPlaybook.com Today Brian discusses: Before we get to combos, let’s first discuss synthetic relationships What are synthetic positions? Why create them? How to create them? What do the pros do?    

Options Playbook Radio 43: Listener Question Palooza, Continued The Huddle:     Question from Anthony Enyo - Thank you for this wonderful program Brian. I am certainly learning a great deal. I have a few questions about dividends and options. I’ve heard there are some telltale signs in the options that reveal that a dividend is approaching. Is this true and if so what are they? Question from Joseph G - ‏@Options Gamma? Are them those rays that turned Dr. Bruce Banner into the Hulk? lol...Seriously - can you sum up what I need to be concerned about with gamma when selling weekly put options? Mostly OTM with 4-7 days to expiration.  

Options Playbook Radio 42: Listener Questions Edition The Huddle: Listener questions and comments   Question from Brian Collamer - Hi Brian! In this show you were describing selling OTM options. You mentioned that when selling options the fastest theta decay occurs in the 45-30 day range. I thought that was only true for ATM options? Do OTM options not decay the fastest at 60-70 days and then kind of flatten out?? Great show, wish it was longer! Thanks, Brian Question Mukund Ambarge: Hi! I had question on theta decay. I understand that delta is in constant flux with every tick move in stock, the delta/gamma changes. IV is in constant flux with buying and selling of options and volume etc. So vega changes with option transactions. But theta decay is the only one which is always in a steady pace i.e. it’s not like it will decay quickly today and slowly tomorrow. The question is when is the theta decay really adjusted in the prices of options. Do the theta decay get adjusted at every tick move? Or every hour? I

Options Playbook Radio 41: Back to Backspreads In this episode, we cover backspreads. If you’re playing along at home with the hardcover book, this means we’re on pages 84 (calls) and 87 (puts). If you’re following along online, you can find all of this at OptionsPlaybook.com. Today Brian discusses: A review from last time Looking at an example with Chevron What do we need to happen? What is the risk? What to look for between backspreads and straddles? Why do a backspread? And more…

Options Playbook Radio 40: Backspreads In this episode, we’re covering Backspreads. For those of you with the hardcover version of the Options Playbook, you can find this on page 84 (calls) and page 87 (puts). It’s also online at OptionsPlaybook.com. Today, Brian discusses: What are backspreads? An example using calls An example using puts Other names for a backspread Factors that matter, including time  When to use backspreads And more…

Options Playbook Radio 39: Diagonal Spreads, Continued This week’s edition of Options Playbook Radio is continuing our coverage of diagonal spreads. For those of you with the hardcover version of the book, we’re on page 96 (calls) and page 99 (puts). If you’re following along online, you can find what you need at OptionsPlaybook.com. Today Brian covers: Review from last week Tesla example, and why a diagonal spread works for this example Paying attention to delta What to watch for and when to get out of the trade    

Options Playbook Radio 38: Diagonal Spreads In this week’s edition of Option Playbook Radio, we’re covering diagonal spreads. You can find this on page 96 (call) and page 99 (put) of the hardback version, or at OptionsPlaybook.com. Today, Brian discusses: Calendar/horizontal spreads, and when you would use them What is a diagonal spread? Why is it called a diagonal spread? The history of some of the spread nomenclature Possible outcomes of diagonal spreads And more…

Options Playbook Radio 37: Long Calendar Spreads, Continued In this episode of Options Playbook Radio, we’re continuing our discussion of long calendar spreads. For those of you with the hardcover version of the book, this is on page 90 (calls) or page 93 (puts). You can also find it on OptionsPlaybook.com. Today, Brian discusses: A review from last week’s introduction Using an example of FB around earnings What makes earnings season special for calendar spreads Why direction matters How earnings impact implied volatility Implementing a calendar after a major event Using indexes instead of stocks And more    

Options Playbook Radio 36: Long Calendar Spreads In this episode, we’re talking about long calendar spreads, from the call side. If you have the Playbook, we’re on page 90. Or, you can find what we’re discussing on OptionsPlaybook.com. Today, Brian discusses: What is a calendar spread? Looking at accelerated time decay, and why does it happen? At-the-money strikes, and why they are used in calendar spreads Front and back month How to construct a calendar spread Why do a calendar spread? Time decay review, and how it impacts the value of your option Maximum profit and loss Time value review, and what happens when it goes away? And more…

Options Playbook Radio 35: Straddles and Strangles, Continued. Options Playbook Radio is back and today we are on pages 68 and 70. For those of you playing along online, you can find these topics at OptionsPlaybook.com. Today Brian discusses: What does the math say about Facebook earnings Looking at the FB straddle Why do investors use it? How do weekly options impact it? Quick and dirty formula on p. 17 of the book What are volatility and probability telling us with the math? Using a real-life example with FB  Real world versus what is “supposed” to happen And more…

Options Playbook Radio 34: Buying Straddles & Strangles Welcome back to Options Playbook Radio. For those of you with the book, today we are on pages 48 and 52. You can also find this information on OptionsPlaybook.com. Today Brian discusses: A quick review of long spreads, including risk/reward A quick homework assignment: review sessions 4 and 5 A generic example of a long straddle A generic example of a long strangle What does the math say 70% of the time? And more