March 30, 2015

Advisors Option 29: Paying For Your Put

1 hour 1 minute

Options 101:Paying for Protection

The most common strategies we will outline are: basic put spreads, ratio put spreads, collars and a collar with a kicker (Swan-style).

Listener Mail: Listener questions and comments

Question from Rose Sparza - This question is for the advisors option program. I came across this article recently (http://www.valuewalk.com/2015/03/hedge-fund-jacob-whol/) and immediately thought of this program. This young manager utilizes options and overlays, two topics frequently discussed on advisors option. Of course the story has a negative bent because the manager appears to have run afoul of the law. Does the negative perception and coverage of options-oriented managers drive you crazy? Even if some of these guys seem to deserve it.

Question from JacksonHole - Am I correct when I say that I can use any options strategy in my IRA account as long as it does not require leverage?

Comment from Mark Brant - Started first Wheel of Fun selling AAPL April 125.71 Puts $2.17. Hope 2B put to and sell $2 covered Calls with a $1 long put hedge...@Options Front-week AAPL weeklys Wheel of Fun is looking sweet once you crunch the numbers. Collecting premium 52X a year really adds up! Quite the move toward my strike in the last hour! Nice start and a good omen!

Question from George S - Is it true that a lot of the stock movement we see on expiration day comes from the options traders defending their positions? So does that mean options traders tend to move stocks toward specific prices on expiration days? What should I as an equity advisor and aspiring options trader do to profit from this?

...more