Options 101: The Wheel Trade revisited

• Why: Get paid to enter the orders that you're already entering in the stock market.
• How: Substitute cash secured puts for your limit stock buy orders and covered calls for your stock sell orders.
• Benefit: Increase income revenue from your existing trade.

The Buzz: What's the word?

• The Collapse of Lehman Brothers: A decade later. Takeaways, lessons and memories.
• OCC cleared contract volume up 10% in August. Overall exchange-listed options volume reached 426,237,903 contracts in August, up 12 percent from August 2017.
• FIA releases half-year report on futures and options volume. The total number of futures and options traded worldwide in the first half of the year reached 14.9 billion contracts, up 19.7% compared to the first half of 2017. Open interest, which measures the number of outstanding contracts, was 850.7 million contracts at the end of June, roughly unchanged from a year ago.

Office Hours: Listeners weigh in

Options question of the week: Some people look to analysts for their market outlook. We prefer to analyze actual #options positions. This week we're letting you join the fun. What do you think is the largest #options position in $SPY right now? No cheating! What does your gut tell you?

• SPY Mar 255.0 P
• SPY Oct 272.0 P
• SPY Dec 31st 320.0 C
• SPY Sep 300.0 C

Listener questions and comments:

• Question from LaRocha - My client fund are primarily in SMAs in the 20k-50k range. What is the best option strategy for these types of accounts? The time horizon for most of these accounts is at least 20 years with a long equity bias and fairly high risk tolerance. Thanks again. Just discovered the show and I'm learning a lot.
• Question from Liznder - If you had to start over with learning about and trading options what would you do differently?