In this week’s episode, sprocket888 looks deeply at option assignment. Option assignment is when the buyer chooses to exercise the option or when the option is in the money at expiration. Assignments do not happen often, but they do and will happen at some point. As with everything we discuss on this show, understanding is… Read More »Come on baby, don’t fear assignment.

In this week’s episode, sprocket888 goes over what is known as an Option Spread or an Option Vertical. This is a type of trade where both the gain and loss potential are fully defined and limited. In understanding this trade type, you can use the high probability strategy of selling out-of-the-money options while containing and… Read More »Defining the risk: Selling options safely.

In this week’s episode, trader sprocket888 is joined by viperxl007. The two traders take a look at different trading tools. There is more to trading than simply buying and selling shares. Many financial products out there will allow you to express your thesis in various ways. Each of these tools has different aspects that may… Read More »Kid, you got options: A look at different trading tools.

In this week’s episode, trader sprocket888 looks at “The Short Put.” For a trader who has not sold options before but is used to going long stock, the short put is one of the best entry points. It is similar to a limit order, except your order will not fill immediately once the strike is… Read More »The Short Put: Getting paid to wait.

In this week’s episode, trader sprocket888 takes a look at hedging. Hedging is trading something opposite your other holdings to help protect you in case you are wrong in your assumption. Lately, the markets have been going up and up and up. This has caused sprocket888 to remember legendary investor Warren Buffet’s advice: “Be fearful… Read More »Hedging: Fearful when others greedy, greedy when others fearful.

In this week’s episode, Trader Sprocket888 extends the back-to-the-basics series and discusses how he screens for the premium selling plays. Two main components drive the premium quantity: time and volatility. He targets a sweet spot when it comes to time and targets extended volatility in hopes of a mean reversion. The basics are covered first,… Read More »Back to the basics: Screening for premium

In this week’s episode, Trader Sprocket888 simplifies the complex world of options trading by returning to the basics. Selling options, Sprocket888’s favorite trade, is relatively straightforward. It’s like selling insurance- the seller hopes they don’t need to fulfill it, and the buyer participates for protection. Sprocket888 first covers the difference between a Put and a… Read More »Back to the basics: Selling option premium

In this week’s episode, traders sprocket888 and viperxl007 share their thoughts on the $GME craze. Rather than focus on the wild speculation, they take it and break down what it means in raw mechanical application. There are theories out there that allude to a share shortage based on the Call positions held by the famous… Read More »$GME Hype: Breaking it down.

In this week’s episode, sprocket888 covers his core strategy. This strategy focuses on just two metrics: Delta and Theta. He likes to keep his Theta high and his Delta low. Theta is a measure of time premium in options. This is a value that steadily declines as time passes. The strategy revolves around selling the… Read More »Theta up, Delta down.

In this week’s episode, sprocket888 will share some knowledge he recently got on ‘The Money Supply.’ This topic came up in a recent episode on the usdebtclock.org website. It was a topic that sprocket wanted to look deeper into. In this episode, we do just that. We cover what exactly money is, how it is… Read More »The Money Supply: What is it and how does it work?