Options Playbook Radio

Today we are looking at back spreads with puts. You can find this in the back spreads section of The Options Playbook, on OptionsPlaybook.com, or in the Amazon Kindle version.

Brian covers:

• A review of last week
• What happened since?
• What to do now?
• What is the risk? Reward?
• What to do now with earnings season?
• Let's look at Ford (F)
• How to avoid the crush of volatility
• Take a look at time value
• Where is the market right now?
• What is the upside? Downside?
• What do we want to happen?

As promised last time, we are looking at one off trades. You can find this in the back spreads section of The Options Playbook, on OptionsPlaybook.com, or in the Amazon Kindle version.

Specifically:

• How to protect ourselves around the election
• How do back spreads work?
• What are we likely to gain?
• What are we likely to lose?
• What if we ride until expiration?
• What is the likelihood of a net credit?

As promised last time, we are looking at how to manage positions, specifically rolling positions. You can find this in the appendix of The Options Playbook, on OptionsPlaybook.com, or in the Amazon Kindle version.

Specifically:

• What does rolling a covered call actually mean?
• When do you want to roll?
• When do you NOT want to roll?
• What are we doing if we roll up and out?
• What if we just go out, not up?
• What if we go up, not out?
• Doing things quickly is key
• What is the likelihood of assignment?

As promised last time, we are taking a deeper dive into covered call writing. You can find this in the beginning section of The Options Playbook, on OptionsPlaybook.com, or in the Amazon Kindleversion.

Specifically:

• Underlying. What stocks make the best candidates for covered call writing?
• Volatility: It's like Goldilocks...not too much, not too little.
• What can we do in AAPL? BAC?
• Earnings impications for timing
• How far out is the right amount?
• When to roll?

In this episode, Brian takes on listener questions, including:

• Question from Choas - Brian, as a beginner, I have done quite a bit of research on the subject of options. Now of course, I would start by doing the right thing - that is writing a covered call on one of my long positions. The problem I am having, believe it or not, is not knowing the direction of the stock or the expiration, the problem is more basic - not knowing which transaction to choose. As it appears, very little is said about buying to open, buying to close, selling to open and selling to close. These terms are essential in order to communicate the right information. I would therefore appreciate it if you took a few moments or your time and explain each step, and use examples to clarify. Your presentations are fabulous and I have learned a great deal of theory from you. Thank you
• Question from Goldmaker - I sold a put on a specific stock with a 115 strike price, that was going to expire next week. The stock a gone below, down to 113.48, and I am prepared to take the stock. It was my understanding that the stock would be put to me if a stock went below 115. Right now, the option has not been exercised and I have not been assigned. What action do I do to make them give me the stock at 115?

We dug through the archives to bring you the very best of Options Playbook Radio.

In this episode of Options Playbook Radio we are covering a long butterfly spread with puts. You can find this on page 104 of The Options Playbook, on OptionsPlaybook.com, or in the Amazon Kindle version.

Specifically:

• A review of last week's trade
• What was the sentiment?
• What was the set up?
• What was the cost?
• What happened since we put on the trade?
• Rolling this into a short put spread
• Don't forget about volatility!
• How do we roll this?
• What is the new position?
• What is the cost?
• Beware of over trading

In this episode of Options Playbook Radio we are covering a put butterfly spread. You can find this on page 104 of The Options Playbook, on OptionsPlaybook.com, or in the Amazon Kindle version.

Brian covers:

• A review of the last few weeks
• What happened at the OPEC meeting?
• What resulted in the market?
• Butterflies like time decay and decreases in volatility - IF you are correct on your forecast
• Where is MRO now?
• What does that mean for our positions?
• What could happen next?
• Don't discount volatility
• Setting up a new trade in the S&P 500 Index
• Picking strikes and expiration date (it's a Monday!)

In this episode of Options Playbook Radio we are covering a call butterfly spread. You can find this on page 102 of The Options Playbook, on OptionsPlaybook.com, or in the Amazon Kindle version.

Brian covers:

• A review of the last strategy
• Taking advantage of the OPEC meeting and the ensuing oil volatility
• Putting on a butterfly in MRO
• Picking the expiration and the strikes
• What will it cost? What is the upside? Breakeven?
• What is our outlook?

In this episode, recorded the day before Thanksgiving 2016, Brian is joined by Mark, and they take on listener questions and comments.

This includes:

Options#QuestionOfTheWeek:

Great traders need many weapons in their arsenals. But everyone has a favorite. What is yours?

• Vertical/Ratio Vertical
• Iron Condor/Iron Fly
• Straddle/Strangle
• Covered Call/Short Put

What is Brian's answer? Long Butterflies!

Listener questions include:

• When the market is rallying, what's wrong with just buying calls?
• Has anyone studied the effect of selling weekly options vs monthly options INCLUDING commissions? Seems like that would be a big factor when writing so many contracts.
• Are skip-strike butterflies the same thing as broken wing butterflies?
• Why trade volatility versus direction or income?
• Discuss the delta of VIX