Options Playbook Radio

We're back from the listener question/congressional aide briefing break, and ready to move through the Playbook. Today we are looking at an iron condor going into earnings. This is on page 126 of The Options Playbook, or you can always find it on OptionsPlaybook.com.

Specifically:

• Looking at a TWTR paper trade going into earnings (which, at the time of this recording, was going to be in 17 minutes)
• TWTR is at the highest IV it has ever been before earnings
• The long straddle is implying at least an 18% move in TWTR after earnings (non-directional)
• Setting up the trade
• Picking strikes
• Selecting the right expiration
• What is the net cost?
• What is the risk? Reward?
• What do we want to happen?

In this episode, Brian beams in from Capitol Hill and is joined by Mark to answer listener questions. You wanted to know:

• Question from 777-Are there expectations for a Google stock split anytime soon? How would that impact the options trading?
• Question from Hot Emini-There is a big disconnect in retail that theta is the end-all greek. But isn't vega the king greek for pros? What about gamma? Where does that fall in the mix?

In this episode, Brian is looking at skip strike butterflies with call options. You can find this information in the hardcover and Kindle versions of The Options Playbook, and it's always available on OptionsPlaybook.com.

He discusses:

• A review of last week's iron condor
• What happend to AMZN?
• Why do this around earnings?
• What is the marketplace expecting? Aka expected move or over/under
• How to set up the trade
• What do you want to happen?
• What is the risk? Reward?

Today we are looking at putting on an iron condor on AMZN before earnings.

Specifically:

• Why volatile markets are very interesting trading environments
• Where is AMZN?
• How to use volatility to create a position
• What is the rationale?
• What is the outlook until earnings?
• Setting up the trade
• What is the maximum risk?
• What is the maximum gain?
• What is the goal?

Today we are taking on listener questions, specifically about options pricing. You will be able to find information on options pricing in the Options Playbook. You can always find it on OptionsPlaybook.com.

Today, we discuss:

• In a bull call spread, or even a bear put spread, (AKA long spreads), how to you manage time decay?
• Picking your strikes
• What is the outlook?
• Remember volatility
• What is the biggest benefit of a spread?
• And more

In this episode, we are going to talk about a trade around earnings. One of Brian's go-to trades when he thinks that there will be more volatility than what the market is predicting, he turns to backspreads, in this case with puts. You can find this on page 87 of The Options Playbook, or, as always, on OptionsPlaybook.com.

In this episode, Brian discusses:

• NFLX announces earnings on 1/19, so we will set up a paper trade to discuss that week
• What is the market saying?
• How will this inform setting up the trade?
• What do we want to happen?
• What will it cost?
• What is the risk?

In this episode, we are discussing how to adjust positions. You can find this information on page 104 of The Options Playbook.

Brian goes into more detail with:

• How to adjust a put butterfly?
• How was the butterfly set up on Monday?
• What was the direction?
• What was the concept of this strategy?
• What has happened since the trade was put on?
• How, and when, to make adjustments
• What do we want to happen?
• Do you want to see a video of what was just discussed? Send Brian an email through Facebook, or go here.

We have been talking about double diagonals for the last few weeks, which we are continuing in light of the Fed meeting yesterday. You can find this information on page 87 of the Options Playbook, or on OptionsPlaybook.com.

Today, Brian discusses:

• The double diagonal strategy around GE
• It’s been almost 11 years since the Fed raised rates
• Where was GE trading?
• Setting up the double diagonal in GE
• Don’t forget commissions!
• What is the maximum reward? Risk?
• Don’t manage risk, and you’ll get the stupid award
• What do we want to happen?
• What is the market saying?
• So, what did happen?
• And more

You can find double diagonals on page 128 of The Options Playbook, or you can follow along online on OptionsPlaybook.com.

Today, Brian discusses:

• A review of double diagonals
• Setting up a double diagonal on the S&P 500 index
• Yes, you can do this with options expiring tomorrow
• What will this cost?
• What do you want to happen?
• What is the risk? Reward?
• And more

You can find information about double diagonals on page 128 of the Options Playbook, or you can always find it on OptionsPlaybook.com.

In this episode, Brian discusses:

• Will the Fed increase rates the next time they meet?
• How can using double diagonals take advantage of the probability of the Fed increasing rates?
• Structuring the double diagonal to wrap around the news from a timing point of view
• What about volatility?
• Setting up the trade
• What do we want to happen?
• What is the biggest thing to worry about?