Options Playbook Radio

As we approach the end of earnings season, there are still a few names left to announce. Last week we talked about a FedEx butterfly. Let's revisit what has happened since. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, or on the Amazon Kindle edition.

Specifically:

• A review of last week's FDX butterfly
• What has happened to FDX since the paper trade?
• What is happening in Nike?
• How about a back spread?
• Looking for volatility
• Hoping the stock will move more than the expected move
• Selecting expiration
• Selecting strikes
• What is the maximum gain? Loss?

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].

Last week we talked about a Costco butterfly. Let's revisit what has happened since. You can find more on page 102 (butterfly) and page 126 (iron condor) of The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

• A review of last week's comparison of the butterfly vs. iron condor in COST
• Breaking down the butterfly
• What about the iron condor?
• What happened after COST announced earnings?
• Implied volatility and time decay as factors
• Moving on to FedEx, which reports earnings on 3/20
• How to set up a trade to contain the earnings
• Selecting strikes
• What is the cost?
• What is the maximum risk?

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].

Last week we talked about a Costco butterfly. Let's revisit what has happened since. You can find more on page 102 of The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

• A review of last week
• Where is Costco trading now?
• Setting up the trade
• Why timing matters
• Comparing this to an iron condor
• Why timing matters, part two
• More risk, more reward?
• Selecting strikes
• What is the desired outcome

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].

Let's review the skip-strike butterfly in PCLN from last week. You can find more on page 108 of The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition. The long butterfly (used on the Costco paper trade) is on page 102.

Specifically:

• A review of last week
• A change of name
• Did you adjust?
• Was time on your side?
• Who is up next? Costco Holdings!
• What are we looking for?
• Putting on an at-the-money butterfly
• Selecting strikes
• What is the break even?
• Avoiding the "stupid award"

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].

As we enter the end of earnings season, there are still a few big names left to report, including Priceline, PCLN. This is an interesting opportunity for a skip-strike butterfly. You can find more on page 108 of The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

• Earnings + expiration + implied volatility = interesting situation
• Goal: do the trade for a net credit
• PLCN announces earnings on 2/27
• What is the expected move?
• What is the implied volatility?
• Selecting the strikes
• Remember commissions!
• What's the risk? Reward?
• When to get out?

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].

We are back to the playbook this week and taking a close look at Wynn Resorts. There is a lot of volatility in the stock these days with the CEO in the news quite a bit these days. We are looking at a very short-term butterfly. You can find more on page 104 of The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

• Why a very short-term trade?
• What is the desired outcome?
• What about the stock going ex-dividend?
• Setting up the trade
• Why use puts?
• Selecting strikes
• What is the cost?
• When to get out?
• Looking at net theta versus net delta

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].

It's time to huddle up and take on listener questions in this episode of Options Playbook Radio.

• Question from Janice: Hi Brian! I have a question about the way you talk about the alternatives available for managing the LEAPS option put spread if the market goes down. Can you please explain?
• Question from Matt: What's up with the FB $5 calls?
• Question from Johnny Bananas: If you buy a put option and the strike price is $5 and the stock drops to $3, is it still worth money?

Continuing with the idea of FAANG stock earnings, today we're looking at an AAPL protective put. 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 last week
• How do you protect yourself against a big move in AAPL after earnings?
• Where is AAPL now?
• What is the outlook?
• Selecting a strike and expiration
• What is the cost? Upside?
• Meeting the "deductible"
• What about a protective put spread?
• What is the cost?
• Why do it?
• How do weeklys impact the ability to buy insurance around earnings?

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].

In this episode, we are looking at a calendar trade around earnings in TSLA. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

• Where is TSLA trading as of this recording?
• When are they expected to announce earnings?
• Where is the at-the-money straddle right now?
• Setting up a trade into earnings
• Selecting a strike
• The volatility caveat
• What is the desired outcome?

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].

In this episode, we are looking beyond the Options Playbook and are selling a put credit spread to pay for a long call. You can find more on p. 76 of The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

• Looking at Intuitive Surgical, Inc. (ISRG), which has been on a tear lately
• Earnings pushed the stock even higher
• Expensive underlying = expensive options
• Taking a long view using LEAPS
• Selecting strikes for the put spread
• Buying the at-the-money call
• How does the trade work?
• What is the cost?
• What is the risk?
• How to close it out?
• Alternatives to the trade as described

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].