Options Playbook Radio

Huddle up, listeners! We're taking your questions, including:

• I've been lured in by the ongoing selloff in crude and have been thinking about a stock replacement in USO. Should I even bother? Is there a price where it's no longer worth it? What about timing? And more....
• Does Ally allow people to close short positions below 10 cents without a fee?
• Are there any types of trades that, without brokerage fees, would be great trades?

Do you have a question that you want answered on a future episode? Send them to Brian at [email protected], or to the Options Insider at [email protected].

Now that the Fed has spoken, the market is reacting. This is a good opportunity for a front spread. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

• The Fed has spoken
• What's a front spread?
• Using AAPL as an example
• Where is APPL now?
• Selecting strikes
• Selecting an expiration date
• Max risk and max gain

Do you have a question that you want answered on a future episode? Send them to Brian at [email protected], or to the Options Insider at [email protected].

When the market conditions are right, it can be a good time to trade a butterfly in the S&P 500. Now is the time. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

• As of this recording, the VIX is higher than last week, but down a bit on the day
• A review of last week
• Where is the market now?
• Let's do another 20-point wide butterfly
• Selecting strikes
• What does it cost?
• What's the maximum gain?
• What about the hedge?
• And more...

Do you have a question that you want answered on a future episode? Send them to Brian at [email protected], or to the Options Insider at [email protected].

When the market conditions are right, it can be a good time to trade a butterfly in the S&P 500. Now is the time. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

• Where is the S&P 500 index right now?
• Buying a December 7 butterfly
• Selecting strikes
• What is the total risk?
• What do we want to happen?
• What's the maximum upside?
• What is the market forecast?
• What to do if the market moves against us?
• Capital requirements
• And more...

Do you have a question that you want answered on a future episode? Send them to Brian at [email protected], or to the Options Insider at [email protected].

How can stock investors use options? You've come to the right place. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

• A review of the AAPL collar from two weeks ago
• What about capital gains?
• Remember we had a small credit
• Where are we now?
• What about additional risk?
• What's an alternative? Using an example with FB
• Using a FB option as a surrogate for stock
• Setting up the trade
• Selecting expiration and strike
• Remember, one option for every 100 shares of stock

Do you have a question that you want answered on a future episode? Send them to Brian at [email protected], or to the Options Insider at [email protected].

Huddle up, traders! For your listening pleasure, Mark and Brian answer your burning options trading questions, including:

• Question from Barry Brown - Good morning. Have the show archives been withdrawn or are they still available? Question: If we put on a poor man's covered call position and the price moves up the short call, when do you recommend rolling, etc? Thank you. Your stuff is great. Really enjoy all you efforts. Thank you.
• Question from Douglas Tilley - Hello! Regarding long stock substitution: 1. With call options, are deltas additive? I.e. why are (2) 40-delta calls so much cheaper than (1) 80-delta call? This seems like buying equivalent total delta for about half the cost. 2. For more accurate stock substitution, do you ever use the technique of buying an ATM call while selling an ATM put? (Vs. buying calls for a desired total delta). What are the pros and cons (or nuances) of the 2 methods? I do notice that the 2nd method definitely requires more buying power, due to the short put. Thanks for all the education - D Tilley, DDS
• Question from Splitsville - Why is long put/covered call a "collar" while short put/long call is a "risk reversal." Never understood that one.

It's always a good idea to review basics. Today we're looking a covered calls, and it's cousin, collars. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

• Lots a bad news around Apple
• What to do approaching the new year?
• Thinking about capital gains, taking losses
• What is the scenario?
• What will selling a covered call do?
• What is the risk? Reward?
• What would a collar look like?
• What would it cost?
• Risk and reward

Do you have a question that you want answered on a future episode? Send them to Brian at [email protected], or to the Options Insider at [email protected].

HD is announcing earnings soon. Let's look at how to set up a straddle to cap risk. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

• What's happened since last week?
• What did we learn from the NVDA backspread from last time?
• What happened to the one without earnings?
• What happened to the one that contained earnings?
• Let's take a look at Home Depot
• Earnings are coming up
• Setting up the trade
• We know the max risk and max upside
• How many contracts should we do?
• What is our rationale?
• What's the goal?

Do you have a question that you want answered on a future episode? Send them to Brian at [email protected], or to the Options Insider at [email protected].

Nvidia is announcing earnings soon. Can we expect a dead cat bounce on the stock? You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

• What has NVDA been up to lately?
• NVDA has an earnings announcement on 11/15
• Selecting expiration dates
• Where is implied volatility for the expirations?
• What are our expectations for IV?
• Putting on a backspread with calls
• Setting up the trade
• What is the risk?
• What do we want to happen?
• Which to choose? Why?

Do you have a question that you want answered on a future episode? Send them to Brian at [email protected], or to the Options Insider at [email protected].

Being in the heart of FAANG earnings season, let's look at GOOGL and AMZN. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

• What is happening in the markets right now?
• What about GOOGL and AMZN, specifically?
• What are the expected moves?
• What is our strategy?
• We're looking for positive theta, but negative vega
• Let's look at a GOOGL skip-strike butterfly
• Selecting strikes and expiration
• What is the cost? Maximum risk? Remember margin!
• Remember the risk of gap-up or gap-down
• What do we want to happen?
• What about AMZN?
• What is the expected move?
• Selecting strikes and expiration
• What is the maximum risk? Reward?
• What do we want to happen?

Do you have a question that you want answered on a future episode? Send them to Brian at [email protected], or to the Options Insider at [email protected].