Options Playbook Radio

It's all listener questions in this special edition of Options Playbook Radio

• Question from Ejh4isu - If I buy/sell a vertical on SPX (or any equity stock for that matter) and hold until expiration, and SPX settles between the strikes, what happens ? Example: sell 2395/2400 and SPX settles at 2397.
• Question from Kraken1975 - Which of the Greeks do you utilize the most and why?
• Question from ButcherBoyz - What options trading strategy would you say is best suited to people with absolutely zero knowledge of options? Thanks.

Do you have a question that you want featured on an upcoming episode of Options Playbook Radio? Send Brian an email at: [email protected].

In this episode, Brian reviews two paper trades from previous episodes and opens up a third. You can find the backspread with calls on page 84 of The Options Playbook, and the put debit spread is on page 62. Plus, this week we'll look at the fig leaf, which you can find on page 56. This is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Today, Brian discusses:

• A review of the AMD backspread
• What did AMD do since putting on the trade?
• A review of the FCX debit put spread
• What did FCS do since putting on the trade?
• Re-introducing the fig leaf with AMD
• Using a LEAPS option
• Setting up the trade
• Picking strikes
• What will it cost?
• Why not just do a covered call?

Do you have questions that you want to have answered on an episode of Options Playbook Radio? Send them to Brian at [email protected].

Last week's episode looked at a backspread with calls. That strategy is on page 83 of the Options Playbook. This week, we will cover a debit put spread, which is on page 62.

In this session, Brian covers:

• A review of last week's AMD backspread
• Why look at FCX?
• Why a long put spread?
• Erring on the side of being too short or too long
• Intrinsic value considerations
• Picking strikes and expiration dates
• Buying as much time premium as selling

Today, we will explore back spread with calls in AMD (page 84). This is always available on OptionsPlaybook.com, or on the Amazon Kindle edition.

In this episode, Brian covers:

• What are the benefits and risks of the back spread with calls?
• What has happened since we put the trade on?
• Setting up the trade.
• What is the maximum risk? Reward?
• What is the ideal scenario?

It's all listener questions in this special edition of Options Playbook Radio.

• Question from JDog - I just got an options pitch that says that options buyer lose money on 7 out of every 10 trades. Is that true?
• Question from Alan Shepard - Why would I ever buy an option when 90% of them expire worthless?
• Question from Lesnod - How do you get out of the straddles? One side of a straddle is always a loss correct?
• Question from Bob - Concerning options: I have been told to take an ATM call and put, add them together and that is the expected move. Is that correct?

If you have questions for Brian, send them to [email protected].

It's all listener questions in this episode of Options Playbook Radio. Do you have questions that you would like answered on the show? Send them to Brian at [email protected].

• Question from JLaws: My dad is coming over to the dark side slowly but surely/ He is thinking about dipping his toes in the options pool. What product do you recommend for an options newcomer making his first trade?
• Question from Sharkcake: I have been approved to trade options by my Brokerage but I have yet to execute my first trade. What trade do you recommend?
• Question from Meats: Would you describe successful options trading as primarily singles and doubles or more swing-for-the-fences home runs?
• Question from Mary: What is the shortest expiry available for plain vanilla options?

Last week we looked at an inverse, skip-strike butterfly on AAPL before earnings (page 112). Today, we will explore a FB iron condor (page 126). This is always available on OptionsPlaybook.com, or on the Amazon Kindle edition.

In this episode, Brian covers:

• A review of last week
• What are the benefits and risks of the skip-strike butterfly?
• What has happened since we put the trade on?
• What should you have done?
• What is going on with FB?
• Setting up the trade
• What is the expected move after earnings?
• Selecting the expriation
• Selecting the strikes
• What is the maximum risk? Reward?
• What is the ideal scenario?

Do you have questions that you would like answered on the show? Send them to Brian at [email protected].

It's earnings season again. As such, we're looking at an inverse skip-strike butterfly to capture some earnings move. You can find skip-strike butterflies with calls on page 108, and inverse skip-strike butterflies with calls on page 112 of The Options Playbook, on OptionsPlaybook.com, or on the Amazon Kindle edition.

In this episode, Brian covers:

• A review of last week's AMZN butterfly
• Lesson to learn: Time makes the trade cheaper
• Determining strike prices
• Making sure you do not get blown out
• Looking at the implied volatility
• How to use time premium
• What is the net credit?
• What is the maximum risk?

It's earnings season again. As such, we're looking at a skip-strike butterfly to capture some earnings move. You can find skip-strike butterfiles on page 108 of The Options Playbook, on OptionsPlaybook.com, or on the Amazon Kindle edition.

In this episode, Brian covers:

• A review of last week's UAL butterfly
• Lesson to learn: Don't try to hit a home run with a butterfly
• Putting on a skip-strike butterfly with calls
• Picking the expiration
• Looking at the implied volatility
• Picking strikes
• What is the net credit?
• What is the maximum risk?

For the last few episodes, we explored backspreads in SNAP. This week we shift gears to another name that is highly volatile right now, United Air Lines. Let's explore a long butterfly spread with UAL calls.

In this episode:

• A review of the SNAP backspreads
• Volatility in UAL skyrockted
• Why choose a butterfly spread?
• Choosing a one-day trade
• Selecting strikes
• Setting up the trade
• What is the cost?
• What do we want to happen?