Options Boot Camp

Basic Training: Theta. A review of Theta and its impact on income trading. New Study: An analysis of index option writing with monthly and weekly rollover - First comprehensive study to examine strategy benchmark with traditional stock, bond indexes incorporating weeklys options.

Mail Call: Listener questions and comments.

• Question from KDDiddy - I want to protect a stock position with puts at a strike 2% below market but there is not a strike there. I thought of dividing my purchase between two different strikes to get an average of 2% but I do not want all the guys to call me stupid. Mom always said I was a genius but it is hard to feel like one when buying something called a Put Stupid. What should I do instead? Regards, Mr. Smart
• Question from LATom - Can the drill squad explain covered strangles vs. covered calls? What is the difference?

Basic Training: Theta. A review of Theta and its impact on income trading. New Study: An analysis of index option writing with monthly and weekly rollover - First comprehensive study to examine strategy benchmark with traditional stock, bond indexes incorporating weeklys options.

Mail Call: Listener questions and comments.

Basic Trading: Second Order Greeks

• Question from Brian F. - My question is for Dan. I listened to the Boot Camp shows, and recently had a question about gamma. Imagine my surprise when I learned there are other secondary greeks and even tertiary greeks. What this? Are you holding some greeks up your sleeve Mr. Black hat? So my question is what are these greeks, but more importantly, who uses them and why? Does a retail mope like me need to know about these greeks?
• Question from Charlie C. - Do second order greeks have any relevance for retail traders?

Mail Call: Listener questions and comments

• Question from AV56 - When is a good time to start trading options - is there any certain time of the week or year that options traders are focused on?
• Question from 777: How do you adjust your options trading for cheap stocks below $10
• Comment from Brian F. - I went through the Options Bootcamp shows twice, and read a few books, and now have the bug for options. Have you perused the options videos on Youtube? Is it me, or are most of these people idiots? Thanks for the education on options, I now have a way to screen the real trading educators from the BS artists.
• Question from Max S. -I have a lot of AAPL in my IRA but I am worried about the downside potential going forward. I do not want to liquidate that position for a variety of reasons. I have some free capital in my trading account with TD. Does it make sense to potentially pick up a few AAPL puts in that account and use them as a hedge against the position in my IRA account? If I switch that trading account from TD to my IRA custodian will the firm treat those as offsetting positions? Thx for the show.
• Question from TJD - What os the story on using options in my IRA? Is it still legal for 2016?
• Comment from Matt L. - Huge fan of your shows, I have been binge re-listening to options bootcamp as I prepare for a new year of options trading, thanks!

Register today for Dan's webinar, 7 Most Important Trading Tips for 2016.

Basic Trading: Second Order Greeks

• Question from Brian F. - My question is for Dan. I listened to the Boot Camp shows, and recently had a question about gamma. Imagine my surprise when I learned there are other secondary greeks and even tertiary greeks. What this? Are you holding some greeks up your sleeve Mr. Black hat? So my question is what are these greeks, but more importantly, who uses them and why? Does a retail mope like me need to know about these greeks?
• Question from Charlie C. - Do second order greeks have any relevance for retail traders?

Mail Call: Listener questions and comments

• Question from AV56 - When is a good time to start trading options - is there any certain time of the week or year that options traders are focused on?
• Question from 777: How do you adjust your options trading for cheap stocks below $10
• Comment from Brian F. - I went through the Options Bootcamp shows twice, and read a few books, and now have the bug for options. Have you perused the options videos on Youtube? Is it me, or are most of these people idiots? Thanks for the education on options, I now have a way to screen the real trading educators from the BS artists.
• Question from Max S. -I have a lot of AAPL in my IRA but I am worried about the downside potential going forward. I do not want to liquidate that position for a variety of reasons. I have some free capital in my trading account with TD. Does it make sense to potentially pick up a few AAPL puts in that account and use them as a hedge against the position in my IRA account? If I switch that trading account from TD to my IRA custodian will the firm treat those as offsetting positions? Thx for the show.
• Question from TJD - What os the story on using options in my IRA? Is it still legal for 2016?
• Comment from Matt L. - Huge fan of your shows, I have been binge re-listening to options bootcamp as I prepare for a new year of options trading, thanks!

Register today for Dan's webinar, 7 Most Important Trading Tips for 2016.

Options 101: Today we are joined by Dan Cook from Nadex. He walks us through the following:

• What is a binary option?
• How does the pricing work vs. standard options pricing?
• How do the ticks work?
• Is there a multiplier?
• Does the price represent the pure probability of an option expiring in-the-money?
• How does expiration work?
• What about the final minutes around expiration?
• What is the farthest out you can trade a binary on Nadex?
• The Greeks: Binaries vs. Standard options
• Which underlyings offer binaries?
• How can you trade binaries?
• What is a typical binary use case?

Mail Call: Get your questions answered by the team.

• Question from Jeb16 - I have seen a number of sports books online offering products that appear to be sports derivatives. Is it possible to trade actual products based on sports outcomes or other event-type derivatives in a legal exchange-traded form in the U.S.?
• Question from Amelia G. - Do you notice anything different in the options trading in higher volume products vs. lower volume products?

Options 101: Today we are joined by Dan Cook from Nadex. He walks us through the following:

• What is a binary option?
• How does the pricing work vs. standard options pricing?
• How do the ticks work?
• Is there a multiplier?
• Does the price represent the pure probability of an option expiring in-the-money?
• How does expiration work?
• What about the final minutes around expiration?
• What is the farthest out you can trade a binary on Nadex?
• The Greeks: Binaries vs. Standard options
• Which underlyings offer binaries?
• How can you trade binaries?
• What is a typical binary use case?

Mail Call: Get your questions answered by the team.

• Question from Jeb16 - I have seen a number of sports books online offering products that appear to be sports derivatives. Is it possible to trade actual products based on sports outcomes or other event-type derivatives in a legal exchange-traded form in the U.S.?
• Question from Amelia G. - Do you notice anything different in the options trading in higher volume products vs. lower volume products?

Mail Call: The drill instructors will take your questions now.

• Question from TennisGr8t - Can you give examples of managing positions using Greeks and is it a good strategy? Your show is awesome.
• Question from Pedro Indio - Discovered podcast within the last week and I am up to episode 8. I understand how overall market and industry direction might influence a stock direction. Is there something similar, regarding volatility that can be observed, where an overall sentiment might influence or work with an option's implied volatility? As a new recruit, wonderful educational basic training, SIR!
• Question from TopStep - Why would we use options in lieu of futures or other underlyings?
• Question from Steamboat Willie: What would you say is the best buy and hold strategy using options? I am interested in using some options in my retirement account but I do not have the time to manage them on a daily basis. I would like to put something on and only check on it every few weeks or months. I am mostly interested in large cap stocks although I am not averse to dipping my toes into alternative assets such as oil.
• Question from Beansie - Is there such a thing as a commitment of traders report for options? Something that shows bullish and bearish positions in the marketplace?
• Question from 999 - How do you spec on the market falling out of bed using options?

Mail Call: The drill instructors will take your questions now.

• Question from TennisGr8t - Can you give examples of managing positions using Greeks and is it a good strategy? Your show is awesome.
• Question from Pedro Indio - Discovered podcast within the last week and I am up to episode 8. I understand how overall market and industry direction might influence a stock direction. Is there something similar, regarding volatility that can be observed, where an overall sentiment might influence or work with an option's implied volatility? As a new recruit, wonderful educational basic training, SIR!
• Question from TopStep - Why would we use options in lieu of futures or other underlyings?
• Question from Steamboat Willie: What would you say is the best buy and hold strategy using options? I am interested in using some options in my retirement account but I do not have the time to manage them on a daily basis. I would like to put something on and only check on it every few weeks or months. I am mostly interested in large cap stocks although I am not averse to dipping my toes into alternative assets such as oil.
• Question from Beansie - Is there such a thing as a commitment of traders report for options? Something that shows bullish and bearish positions in the marketplace?
• Question from 999 - How do you spec on the market falling out of bed using options?

Options Bootcamp 56: Options Trade Tags Demystified

Basic Training: Today's guest is Andrew Giovinazzi, of Option Pit, Option Block, and Options Oddities fame.

Mark, Dan and Andrew discuss options trade tags, including:

• Regular
• Spread
• Block Trade
• Inter-market Sweep
• Combo
• Cancel
• SoldLast
• Price Variation
• Buy Write

Mail Call: Listener questions and comments

• Question from Vegan - What oil products do airlines use to hedge their crude exposure?
• Question from Alan - Why is rolling a position so prominent? Is that not just averaging into a losing trade?
• Question from Angus - Maybe this is a basic question, but where do the names call and put come from? What about straddle and strangle?

Options Bootcamp 56: Options Trade Tags Demystified

Basic Training: Today’s guest is Andrew Giovinazzi, of Option Pit, Option Block, and Options Oddities fame.

Mark, Dan and Andrew discuss options trade tags, including:

• Regular
• Spread
• Block Trade
• Inter-market Sweep
• Combo
• Cancel
• SoldLast
• Price Variation
• Buy Write

Mail Call: Listener questions and comments

• Question from Vegan - What oil products do airlines use to hedge their crude exposure?
• Question from Alan - Why is rolling a position so prominent? Is that not just averaging into a losing trade?
• Question from Angus - Maybe this is a basic question, but where do the names call and put come from? What about straddle and strangle?