Options Boot Camp: Recent Episodes
The Options Insider Radio Network
Options Boot Camp is designed to help get you into peak options trading shape by teaching you options trading inside and out, basic to complex. Listeners can even submit their own options questions to be answered on the show.
In this episode of Options Bootcamp, hosts Mark Longo and Dan Passarelli delve into various lesser-known and forgotten options trading terms. They start by reminiscing about their experiences on the trading floor, sharing definitions and history behind terms like Delta Neutral, Leaning on Orders, Squawk Box, and ARB Clerk. They also discuss the significance and evolution of these terms and how they're viewed and used in modern-day trading. The episode further explores the influence of current events on market volatility and polls listeners on related topics. Throughout, they encourage listeners to share their own forgotten options terms to potentially include in future episodes. 01:05 Welcome to Options Bootcamp 03:10 Options Drills: Strategies and Techniques 04:30 Forgotten Options Terminology: Part 2 05:01 Exploring Section 1256 Contracts 10:19 The Concept of Delta Neutral 16:23 Leaning on Orders and Other Trading Floor Terms 23:45 More Lost Trading Terms 23:59 The Antiquated Language of Trading Pits 25:53 The Guts Trade Explained 28:49 The Squawk Box and Its Obsolescence 31:30 The Forgotten Greek: Rho 33:41 The Role of ARB Clerks 36:39 The National Best Bid and Offer (NBBO) 38:33 Listener Mail Call 40:10 Apocalypse Assets and Market Volatility 45:02 Conclusion and Future Episodes
In this episode of Options Bootcamp, host Mark Longo and co-host Dan Passarelli (Market Taker Mentoring) dive into forgotten and lesser-known options terminologies. The duo explores terms such as horizontal and vertical spreads, legging into trades, volatility smiles, realized vs. implied volatility, and risk premium harvesting. They touch upon trading floor lingo, including the roles of 'locals,' the use of 'raise' in retail automated execution systems, and the concept of 'out trades.' As they discuss each term, they highlight their relevance and usage in today's trading landscape. Listeners are also engaged with polls, letting them voice their opinions on these old-school trading terms. 01:04 Welcome to Options Bootcamp 01:38 Education Wednesday: Volatility Death Match Recap 02:59 Introducing the Black Hatted One: Dan Passarelli 03:59 Options Drills: Forgotten Terminology 05:42 Exploring Horizontal Spreads 07:23 Legging into Trades: Risks and Strategies 11:02 Volatility Smile and Skew 13:31 Implied vs. Realized Volatility 17:16 Back Spreads and Front Spreads 20:56 Under and Over: Pricing Complex Trades 23:49 The Renaissance of the Local Trading Crowd 25:05 The Evolution of Trading Roles 25:40 The Trading Crowd and Market Makers 27:43 Out Trades and Manual Entry 29:03 The Antiquated Practices of Trading 32:28 The Concept of Paper in Trading 34:02 Cabinet Trades and Penny Pricing 37:50 The Rise of Electronic Trading 41:41 Listener Polls and Apocalypse Assets 44:44 Concluding Remarks and Upcoming Shows
In this episode of Options Bootcamp, Mark Longo and Dan Passarelli discuss the latest developments in the options market, including a significant increase in options trading volume and the role of retail traders. They address recent volume statistics from the Options Clearing Corporation, showcasing substantial growth in April and May. The episode delves into the upcoming potential of zero-DTE options on the 'Mag 7' stocks, with listener opinions divided on their enthusiasm. Dan shares his insights on trading strategies like calendars and verticals, and the hosts also address listener questions on inverse volatility products and fundamental analysis in trading. A special highlight includes the recognition of listener loyalty by rewarding Madam Gigi in their monthly giveaway. 01:03 Welcome to Options Bootcamp 01:53 Meet the Hosts: Mark Longo and Dan Passarelli 03:28 Listener Engagement and Pro Membership Perks 05:36 Options Market Performance Insights 16:02 Mail Call: Listener Questions and Poll Results 19:27 Exploring VIX Calls and Market Sentiments 21:26 Crypto Preferences and Apocalyptic Scenarios 23:36 Revisiting Nvidia vs. Palantir Debate 26:55 Fundamental Analysis in Options Trading 28:35 The Popularity of Options Trading 29:44 Inverse VIX Products and Calendar Trades 32:25 Listener Engagement and Community Love
In this episode of Options Boot Camp, Mark Longo from the Options Insider and Dan Passarelli from Market Taker Mentoring dive into key topics surrounding options trading. They discuss concerns related to Zero DTE options, VIX call trading strategies, and evaluating gamma's importance. Additionally, the episode explores the future of the binary events market, potential expansions of trading products, and the intriguing idea of trading call options on sports teams. The segment wraps with listener questions addressing unexpected moments in trading careers and practical strategies when dealing with gamma and earning seasons, providing a comprehensive outlook on the current and future state of options trading. 01:02 Welcome to Options Boot Camp 02:57 Listener Mail Call 08:48 Market Taker Question of the Week 15:33 Understanding Gamma in Options Trading 18:04 Hilarious Handle: Concerned Breakfast 19:07 Unexpected Moments in Trading 23:30 The Notion of a 'Get Out of Jail Free' Card in Options Trading 26:49 Future of Binary and Event Markets 31:24 Wrapping Up and Final Thoughts
In this episode of Options Bootcamp, Mark Longo and Dan Passarelli discuss NASDAQ's proposal for zero days-to-expiration (DTE) options on the Mag 7 and Broadcom, delving into the implications and controversies surrounding the contra exercise window. Mark provides an overview of the Options Insider Radio Network and apologizes for a brief hiatus due to illness. They address a listener's question about the pilot program and conduct a poll to gauge audience sentiment regarding the initiative. The episode also tackles the role of education in navigating the options market and features a lively discussion on potential advantages and pitfalls of the proposed changes. 01:05 Welcome to Options Bootcamp 02:40 Special Guest and Upcoming Events 03:30 Basic Training: Understanding Options 05:46 Discussion on Contra Exercise Window 13:40 Listener Questions and Poll Results 14:44 Zero DTE Options Pilot Proposal 26:20 Final Thoughts
In this episode of Options Boot Camp, hosts Mark Longo and Dan Passarelli (from Market Taker Mentoring) discuss a variety of topics related to options trading. They begin by discussing the resurgence of trading floors, specifically a new one in Miami by MIAX, and the potential for more 24-hour trading sessions in options markets. The hosts also delve into recent developments from the Options Industry Conference, including NASDAQ’s pilot program for zero-day options on certain high-volume stocks. Also, they tap into current market dynamics, including a 25% rise in trading volumes driven by trade war uncertainties, and cover the administrative challenges of contra exercise orders, especially in light of potential new zero-day options. Listener questions about VIX versus VXX and opinions on the current market rally are also addressed. 01:04 Welcome to Options Bootcamp 01:34 Education Wednesday and Market Updates 02:42 Live Video Component and Studio Updates 03:55 Options Drills and Strategies 04:53 Insights from the Options Industry Conference 06:38 Discussion on Zero-Day Options Pilot Program 12:15 24-Hour Trading and Market Making 14:56 New Trading Floor in Miami 17:07 April Trading Volume Highlights 18:50 Market Volatility and Trading Strategies 19:25 Index Options and Equity Options Trends 20:30 Listener Mail Call 21:25 Market Taker Question of the Week 21:34 Understanding VIX and VXX 23:28 Listener Questions on VIX and Market Trends 29:18 Contra Exercise and Broker Practices 34:24 Remembering Alex 'The Viceroy' Jacobson 36:27 Closing Remarks and Upcoming Content
This episode of Options Boot Camp focuses on various aspects of options trading, including liquidity, specific stock options like Funko, Intel, and Nvidia, and different trading strategies like covered calls and cash-secured puts. Hosted by Mark Longo and Dan Passarelli, the show answers listener questions about how to determine the liquidity of options, the role of dark pools in the options market, and examining specific trading opportunities. The hosts also discuss the current active trading environment and highlight some listener feedback on various trading platforms. 01:04 Welcome to Options Bootcamp 02:30 Listener Mail Call 03:30 Funko and VIX Trade Discussions 08:25 Market Taker Question of the Week 18:17 Dark Pools in Options Trading 21:05 Listener Feedback and Closing Remarks
In this episode of Options Bootcamp, host Mark Longo and co-host Dan Passarelli delve into the differences and similarities between institutional and retail options trading. They discuss the growing accessibility and sophistication of retail traders, the challenges and advantages faced by institutional traders, and the surprising overlap in strategies used by both groups. Topics covered include the prevalent use of flex options, the application of exotic options like knockouts and barriers, and real-world examples of massive trades and their outcomes. This episode provides valuable insights for traders looking to understand the broader options market landscape. 01:04 Welcome to Options Bootcamp 05:32 Institutional vs. Retail Options Trading 15:44 Flex Options and Exotic Strategies 21:40 Unusual Activity and Institutional Insights 26:02 Conclusion and Final Thoughts
In this episode of Options Bootcamp, hosts Mark Longo and Dan Passarelli explore a variety of order types and their strategic uses within options trading. They discuss basic duration orders like 'Good Till Cancel,' immediate orders such as 'Immediate or Cancel' (IOC) and 'Fill or Kill' (FOK), and more complex conditional orders including 'One Cancels the Other' (OCO) and 'Trailing Stop Orders.' The episode also features a vibrant discussion on the potential advantages and risks associated with each order type. Additionally, they delve into the seldom-used but intricate 'Market on Close' (MOC) and 'Limit on Close' (LOC) orders, offering insights into specific use cases. The episode concludes with responses to listener questions and polls revealing current market sentiments and trading behaviors. 01:03 Welcome to Options Bootcamp 01:35 Market Overview and Listener Tips 04:03 Options Drills: Advanced Order Types 06:33 Duration Orders: GTC and Day Orders 10:58 Immediate Orders: IOC and Fill or Kill 15:15 Conditional Orders: One Cancels the Other (OCO) 20:05 Exploring Similar Product Trades 21:28 Understanding Trailing Stop Orders 24:16 Market on Close (MOC) Orders Explained 31:00 Listener Mailbag and Poll Results 38:58 Final Thoughts and Upcoming Content
Mark and Dan Passarelli from Market Taker Mentoring discuss a variety of listener questions and market scenarios. They cover the recent market activities, including a specific query about the unusual options trading in Apache Corp stock before a major market movement. The duo also delve into the intricacies of trading iron condors and the unique challenges and differences when trading futures options compared to equity options. This episode aims at enhancing listeners' understanding and trading strategies in the volatile and complex options market. 01:04 Welcome to Options Bootcamp 01:37 Special Early Edition and Pro Q&A Highlights 03:41 Listener Mail Call and Market Analysis 04:06 NVIDIA and Apple Options Discussion 08:59 Zero-Day Options and VIX Predictions 12:54 Listener Questions and Market Insights 17:12 Market Chaos and Insider Information 18:25 Trading Pit Anecdotes 23:02 Iron Condors: Strategies and Use Cases 27:14 Futures Options: Key Differences and Challenges 33:06 Conclusion and Resources
This episode hosted by Mark Longo and Dan Passarelli of Market Taker Mentoring, addresses the unprecedented market volatility driven by major market moves and how traders can navigate these challenging conditions. The hosts discuss various strategies, including selling puts, trading volatility products like VXX, UVXY, and SVXY, and how to avoid missing out on upside moves during tumultuous times. They also delve into topics such as historical market movements, the effectiveness of skip-strike vs. traditional butterflies, and listener questions on trading strategies and recent IPO craziness with Newsmax. Key insights on managing risk and leveraging volatility products are shared, emphasizing the importance of adaptability and calculated approaches in trading. 01:03 Welcome to Options Bootcamp 01:54 Historic Market Movements 05:02 Options Trading Strategies 10:36 Volatility Products and Strategies 22:05 Listener Questions and Market Insights 23:53 Analyzing the Latest Market News 24:07 Understanding Reciprocal Tariffs 25:36 Audience Reactions and Strategies 27:34 Options Trading Insights 32:58 Exploring Butterfly Strategies 37:47 Newsmax IPO and Market Trends 41:39 Upcoming Webinars and Final Thoughts
In this episode of Options Bootcamp on the Options Insider Radio Network, hosts Mark Longo and Dan Passarelli discuss various topics related to options trading. They start by talking about the Options Insider platform and their mobile app, accessible via iTunes and Google Play. They go on to discuss the importance of understanding the role of gamma in options trading and dispelling common myths around covered calls. Additionally, they touch upon the recent chaos in car buying due to tariff concerns and share insights from listener questions about tax implications and retail trading strategies. The episode is rich in practical advice for both novice and experienced options traders. 00:00 Introduction to Options Insider Radio Network 01:10 Welcome to Options Bootcamp 02:54 Early Edition of Options Bootcamp 04:42 Liberation Day Car Buying Madness 08:40 Options Drills: Covered Calls Myths 14:35 Mail Call: Listener Questions and Polls 19:22 Strategies and No Limits 20:09 VIX April Trades Recap 22:24 Listener Questions: Gamma Explained 31:53 Tax Implications of Options Trading 35:38 Podcast and Show Wrap-Up
Welcome back to Options Boot Camp with Mark Longo and Dan Passarelli. In this Education Wednesday episode, the hosts dive into various topics on options trading. They discuss listener questions about time spreads, ratio vertical spreads, and advanced strategies for trading options. You'll also hear personal stories and trading insights as Mark and Dan combine education with entertainment in this engaging session. Stay tuned for expert tips and strategies to elevate your trading game and learn more about trading options effectively. 00:00 Introduction to Options Insider Radio Network 01:09 Welcome to Options Bootcamp 01:39 Tasty Trade: Advanced Trading Tools 04:36 Listener Mailbag: Answering Your Questions 05:22 Market Analysis and Trading Strategies 09:26 Exploring Wine Futures and Tokenization 13:37 Market Taker Question of the Week 14:07 Dan's Side Project: Wealth Building with Options 18:46 Live Listener Questions and Market Outlook 22:27 Understanding the Mental Leap in Options Trading 23:28 Exploring Time Spreads: Episodes and Insights 24:59 Coaching and Mentoring in Options Trading 27:39 Practical Examples of Time Spreads 30:47 Listener Questions: Ratio Vertical Spreads 35:39 Success Stories and Advanced Strategies 39:28 Conclusion and Upcoming Content
In this episode of Options Bootcamp, host Mark Longo, alongside Dan Passarelli from Market Taker Mentoring and Katie McGarrigle from TastyTrade, dive deep into the world of futures options trading. They discuss the nuances of futures versus equity options, identifying key differences such as expirations and unique skews. Various starter strategies and products are outlined, emphasizing defined-risk approaches for newcomers. The episode also highlights listener insights on the BTFD strategy and the interest in 24-hour trading. Additionally, Katie and Dan provide updates on their platforms and new endeavors, including Dan's upcoming book and podcast. 00:00 Welcome to Options Insider Radio Network 03:40 Meet the Hosts: Mark Longo, Dan Passarelli, and Katie McGarrigle 05:52 Diving into Futures Options 07:55 Challenges and Strategies in Futures Options 14:41 The Evolution of Trading Platforms 19:06 Exploring Skew in Futures Options 21:48 Nuances of Trading: Research and Preparation 22:03 Starter Products for New Traders 22:34 Equity Index Futures and Beyond 25:52 Starter Strategies for Futures Options 29:42 Listener Mail Call: Your Questions Answered 31:30 Market Taker Question of the Week 31:48 New Book Announcement and Podcast 33:26 Poll Results and Audience Insights 37:55 Final Thoughts and Upcoming Shows
In this episode of Options Bootcamp, hosts Mark Longo and Dan Passarelli address various listener questions related to options trading. The episode covers the differences between institutional and retail portfolio hedging strategies, the relevance of liquidity when choosing options contracts, and the complexities of gamma scalping for retail traders. They also discuss the significance of advanced order types like OCO orders and the challenges of trading in less liquid markets. The show features special segments on rolling options positions and the interaction with listeners via chat and email. 02:38 Getting into Peak Options Trading Shape 03:56 Listener Mail Call 04:46 Institutional vs. Retail Hedging Strategies 10:00 Rolling Strategies and Managing Losers 19:09 Importance of Liquidity in Options Trading 25:02 Advanced Options Order Types
In this episode, hosts Mark Longo and Dan Passarelli discuss the explosive growth in options trading, particularly single name equity options, which have seen a significant rise. They delve into the role of retail traders, the impact of the pandemic, and the rise of zero-day options. The episode features insights into options trading metrics, strategies like covered calls, cash-secured puts, and market volatility influenced by economic events such as tariffs. Also discussed are listener questions and opinions on market trends, 24-hour trading, and the concept of a strategic crypto reserve. 01:09 Welcome to Options Bootcamp 01:38 TastyTrade: Tools for Traders 02:53 Options Bootcamp: Education and Resources 05:49 Options Market Trends and Analysis 14:39 Mail Call: Listener Questions 16:03 Market Taker Question of the Week 19:53 Market Volatility and Predictions 23:08 Crypto Market Insights 30:18 Final Thoughts and Substack Promotion
Host: Mark Longo, The Options Insider Media Group Co-Host: Dan Passarelli, Market Taker Mentoring tastytrade Hot Seat: Jermal Chandler, tastylive
On this episode, Mark, Dan and Jermal discuss:
- Stock substitution strategies including the fig leaf and the zebra
- Stocks and options trading going 24/7
- Intel covered call strategy
- And much more.
This episode of Options Boot Camp is brought to you by tastytrade.
01:08 Welcome to Options Bootcamp
01:38 Tastytrade Tools and Features
02:53 Education Wednesday Triple Header
04:17 Meet the Hosts and Guests
06:11 Options Drills: Stock Substitution Basics
17:51 Advanced Stock Substitution Strategies
26:35 Diving into the Zebra Strategy
27:19 Explaining the Zebra in Detail
31:00 Listener Questions and Mail Call
32:24 Debating 24-Hour Options Trading
36:16 Intel Covered Call Strategy
42:55 Wrapping Up and Final Thoughts
Host: Mark Longo, The Options Insider Media Group Co-Host: Dan Passarelli, Market Taker Mentoring tastytrade Hot Seat: Mike Butler, tastylive
On this episode, Mark, Dan and Mike discuss:
- AI vs. PE in the modern market
- Stocks and options trading going 24/7
- Stock substitution strategy as go to strategy for 2025
- Learning more about trading options
- And much more.
This episode of Options Boot Camp is brought to you by tastytrade.
It's an options snow day as Mark and Dan tackle your mailbag questions about:
- How often do you adjust covered calls
- Selling a put when you don't want to buy a stock
- Strategies that they anticipate using more in 2025
- What to do with calendars if the underlying moves too soon
- Trading iron condors
- and much more.
Brought to you by tastytrade.
On this episode, Mark and Dan talk about:
- Options volume for January from Options Clearing
- Tariffs impact on markets
- Whether the 0DTE explosion is just a fad
- If DeepSeek is the canary in the coal mine for the end of the AI boom
- Whether the age of the options trader is getting younger
- and much more.
Brought to you by tastytrade.
On this episode, Mark and Dan talk about:
- DeepSeek and its impact on the markets,
- What strategies Dan uses the most to trade,
- The fake ticker XYZ becoming an actual ticker for Block,
- Dan's typical holding period for straddles,
- Whether Dan will short straddles,
- and much more.
Brought to you by tastytrade.
On this episode, Mark and Dan answer your questions about:
- VIX closing price for 2025
- Any new books from Dan
- The rule of 16
and much more.
On this episode, Mark and Dan take a deep dive into skew:
- What do we mean by skew
- Origins of skew
- The skew graph
- Different types of skew
- Why is it important to understand skew
- Different trades to take advantage of different types of skew
- And, much more!
Brought to you by tastytrade.
On this episode, Mark and Dan look back at the options markets in 2024.
- What trades/trends stood out in 2024
- Options volume year in review
- VIX highs/lows for 2024
They also answer your questions including:
- Should I ever hedge my long-term holdings?
- Shouldn't the IV be the same when looking at the call and put for the same expiry/strike?
- How do you get what percent move the market is pricing for the underlying?
And, much more!
Brought to you by tastytrade.
On this episode, Mark and Dan take a deep dive into binary options
Brought to you by Public.com
Options are not suitable for all investors and carry significant risk. Option investors can rapidly lose the value of their investment in a short period of time and incur permanent loss by expiration date. Certain complex options strategies carry additional risk. There are additional costs associated with option strategies that call for multiple purchases and sales of options, such as spreads, straddles, among others, as compared with a single option trade.
Prior to buying or selling an option, investors must read and understand the “Characteristics and Risks of Standardized Options”, also known as the options disclosure document (ODD) which can be found at: www.theocc.com/company-information/documents-and-archives/options-disclosure-document
Supporting documentation for any claims will be furnished upon request.
If you are enrolled in our Options Order Flow Rebate Program, The exact rebate will depend on the specifics of each transaction and will be previewed for you prior to submitting each trade. This rebate will be deducted from your cost to place the trade and will be reflected on your trade confirmation. Order flow rebates are not available for non-options transactions. To learn more, see our Fee Schedule, Order Flow Rebate FAQ, and Order Flow Rebate Program Terms & Conditions.
Options can be risky and are not suitable for all investors. See the Characteristics and Risks of Standardized Options to learn more.
All investing involves the risk of loss, including loss of principal. Brokerage services for US-listed, registered securities, options and bonds in a self-directed account are offered by Open to the Public Investing, Inc., member FINRA & SIPC. See public.com/#disclosures-main for more information.
On this episode, Mark and Dan discuss AI options education. We look at what our AI overlords think we should be talking about.
Brought to you by Public.com
Options are not suitable for all investors and carry significant risk. Option investors can rapidly lose the value of their investment in a short period of time and incur permanent loss by expiration date. Certain complex options strategies carry additional risk. There are additional costs associated with option strategies that call for multiple purchases and sales of options, such as spreads, straddles, among others, as compared with a single option trade.
Prior to buying or selling an option, investors must read and understand the “Characteristics and Risks of Standardized Options”, also known as the options disclosure document (ODD) which can be found at: www.theocc.com/company-information/documents-and-archives/options-disclosure-document
Supporting documentation for any claims will be furnished upon request.
If you are enrolled in our Options Order Flow Rebate Program, The exact rebate will depend on the specifics of each transaction and will be previewed for you prior to submitting each trade. This rebate will be deducted from your cost to place the trade and will be reflected on your trade confirmation. Order flow rebates are not available for non-options transactions. To learn more, see our Fee Schedule, Order Flow Rebate FAQ, and Order Flow Rebate Program Terms & Conditions.
Options can be risky and are not suitable for all investors. See the Characteristics and Risks of Standardized Options to learn more.
All investing involves the risk of loss, including loss of principal. Brokerage services for US-listed, registered securities, options and bonds in a self-directed account are offered by Open to the Public Investing, Inc., member FINRA & SIPC. See public.com/#disclosures-main for more information.
On this episode, Mark and Dan answer your questions about:
- AMC options
- How early they typically start seeing volatility coming out of the options prior to a holiday
- Using stop losses on spreads
- The sticky delta / sticky strike model
and much more.
Brought to you by Public.com
Options are not suitable for all investors and carry significant risk. Option investors can rapidly lose the value of their investment in a short period of time and incur permanent loss by expiration date. Certain complex options strategies carry additional risk. There are additional costs associated with option strategies that call for multiple purchases and sales of options, such as spreads, straddles, among others, as compared with a single option trade.
Prior to buying or selling an option, investors must read and understand the “Characteristics and Risks of Standardized Options”, also known as the options disclosure document (ODD) which can be found at: www.theocc.com/company-information/documents-and-archives/options-disclosure-document
Supporting documentation for any claims will be furnished upon request.
If you are enrolled in our Options Order Flow Rebate Program, The exact rebate will depend on the specifics of each transaction and will be previewed for you prior to submitting each trade. This rebate will be deducted from your cost to place the trade and will be reflected on your trade confirmation. Order flow rebates are not available for non-options transactions. To learn more, see our Fee Schedule, Order Flow Rebate FAQ, and Order Flow Rebate Program Terms & Conditions.
Options can be risky and are not suitable for all investors. See the Characteristics and Risks of Standardized Options to learn more.
All investing involves the risk of loss, including loss of principal. Brokerage services for US-listed, registered securities, options and bonds in a self-directed account are offered by Open to the Public Investing, Inc., member FINRA & SIPC. See public.com/#disclosures-main for more information.
On this episode, Mark and Dan take a deep dive into IBIT options. They also talk about what new options product they are most thankful for, how we handle our trades while on vacation, and much more.
Brought to you by Public.com
Options are not suitable for all investors and carry significant risk. Option investors can rapidly lose the value of their investment in a short period of time and incur permanent loss by expiration date. Certain complex options strategies carry additional risk. There are additional costs associated with option strategies that call for multiple purchases and sales of options, such as spreads, straddles, among others, as compared with a single option trade.
Prior to buying or selling an option, investors must read and understand the “Characteristics and Risks of Standardized Options”, also known as the options disclosure document (ODD) which can be found at: www.theocc.com/company-information/documents-and-archives/options-disclosure-document
Supporting documentation for any claims will be furnished upon request.
If you are enrolled in our Options Order Flow Rebate Program, The exact rebate will depend on the specifics of each transaction and will be previewed for you prior to submitting each trade. This rebate will be deducted from your cost to place the trade and will be reflected on your trade confirmation. Order flow rebates are not available for non-options transactions. To learn more, see our Fee Schedule, Order Flow Rebate FAQ, and Order Flow Rebate Program Terms & Conditions.
Options can be risky and are not suitable for all investors. See the Characteristics and Risks of Standardized Options to learn more.
All investing involves the risk of loss, including loss of principal. Brokerage services for US-listed, registered securities, options and bonds in a self-directed account are offered by Open to the Public Investing, Inc., member FINRA & SIPC. See public.com/#disclosures-main for more information.
On this episode, Mark and Dan take a deep dive into the various volatility products available. They also answer a question asking what a typical options trader makes, and much more.
Brought to you by Public.com
Options are not suitable for all investors and carry significant risk. Option investors can rapidly lose the value of their investment in a short period of time and incur permanent loss by expiration date. Certain complex options strategies carry additional risk. There are additional costs associated with option strategies that call for multiple purchases and sales of options, such as spreads, straddles, among others, as compared with a single option trade.
Prior to buying or selling an option, investors must read and understand the “Characteristics and Risks of Standardized Options”, also known as the options disclosure document (ODD) which can be found at: www.theocc.com/company-information/documents-and-archives/options-disclosure-document
Supporting documentation for any claims will be furnished upon request.
If you are enrolled in our Options Order Flow Rebate Program, The exact rebate will depend on the specifics of each transaction and will be previewed for you prior to submitting each trade. This rebate will be deducted from your cost to place the trade and will be reflected on your trade confirmation. Order flow rebates are not available for non-options transactions. To learn more, see our Fee Schedule, Order Flow Rebate FAQ, and Order Flow Rebate Program Terms & Conditions.
Options can be risky and are not suitable for all investors. See the Characteristics and Risks of Standardized Options to learn more.
All investing involves the risk of loss, including loss of principal. Brokerage services for US-listed, registered securities, options and bonds in a self-directed account are offered by Open to the Public Investing, Inc., member FINRA & SIPC. See public.com/#disclosures-main for more information.
On this episode, Mark and Dan discuss low volatility strategies for the rest of the year. :
- Long Equities
- Income Trades
- Long Straddles
- Long Calendars
- And much more
Brought to you by Public.com
Options are not suitable for all investors and carry significant risk. Option investors can rapidly lose the value of their investment in a short period of time and incur permanent loss by expiration date. Certain complex options strategies carry additional risk. There are additional costs associated with option strategies that call for multiple purchases and sales of options, such as spreads, straddles, among others, as compared with a single option trade.
Prior to buying or selling an option, investors must read and understand the “Characteristics and Risks of Standardized Options”, also known as the options disclosure document (ODD) which can be found at: www.theocc.com/company-information/documents-and-archives/options-disclosure-document
Supporting documentation for any claims will be furnished upon request.
If you are enrolled in our Options Order Flow Rebate Program, The exact rebate will depend on the specifics of each transaction and will be previewed for you prior to submitting each trade. This rebate will be deducted from your cost to place the trade and will be reflected on your trade confirmation. Order flow rebates are not available for non-options transactions. To learn more, see our Fee Schedule, Order Flow Rebate FAQ, and Order Flow Rebate Program Terms & Conditions.
Options can be risky and are not suitable for all investors. See the Characteristics and Risks of Standardized Options to learn more.
All investing involves the risk of loss, including loss of principal. Brokerage services for US-listed, registered securities, options and bonds in a self-directed account are offered by Open to the Public Investing, Inc., member FINRA & SIPC. See public.com/#disclosures-main for more information.
On this episode, Mark and Dan discuss:
- Takeaways from the Election
- Whether you should just fade VIX going into all of these major events
- And much more
Brought to you by Public.com
Options are not suitable for all investors and carry significant risk. Option investors can rapidly lose the value of their investment in a short period of time and incur permanent loss by expiration date. Certain complex options strategies carry additional risk. There are additional costs associated with option strategies that call for multiple purchases and sales of options, such as spreads, straddles, among others, as compared with a single option trade.
Prior to buying or selling an option, investors must read and understand the “Characteristics and Risks of Standardized Options”, also known as the options disclosure document (ODD) which can be found at: www.theocc.com/company-information/documents-and-archives/options-disclosure-document
Supporting documentation for any claims will be furnished upon request.
If you are enrolled in our Options Order Flow Rebate Program, The exact rebate will depend on the specifics of each transaction and will be previewed for you prior to submitting each trade. This rebate will be deducted from your cost to place the trade and will be reflected on your trade confirmation. Order flow rebates are not available for non-options transactions. To learn more, see our Fee Schedule, Order Flow Rebate FAQ, and Order Flow Rebate Program Terms & Conditions.
Options can be risky and are not suitable for all investors. See the Characteristics and Risks of Standardized Options to learn more.
All investing involves the risk of loss, including loss of principal. Brokerage services for US-listed, registered securities, options and bonds in a self-directed account are offered by Open to the Public Investing, Inc., member FINRA & SIPC. See public.com/#disclosures-main for more information.
On this episode, Mark and Dan discuss:
- 5 most terrifying trades from last year
- Which options strategy terrifies our listeners the most
- What options strategy they don't like or never use
- Time spreads
- A live episode of Options Boot Camp
- And much more
Brought to you by Public.com
Options are not suitable for all investors and carry significant risk. Option investors can rapidly lose the value of their investment in a short period of time and incur permanent loss by expiration date. Certain complex options strategies carry additional risk. There are additional costs associated with option strategies that call for multiple purchases and sales of options, such as spreads, straddles, among others, as compared with a single option trade.
Prior to buying or selling an option, investors must read and understand the “Characteristics and Risks of Standardized Options”, also known as the options disclosure document (ODD) which can be found at: www.theocc.com/company-information/documents-and-archives/options-disclosure-document
Supporting documentation for any claims will be furnished upon request.
If you are enrolled in our Options Order Flow Rebate Program, The exact rebate will depend on the specifics of each transaction and will be previewed for you prior to submitting each trade. This rebate will be deducted from your cost to place the trade and will be reflected on your trade confirmation. Order flow rebates are not available for non-options transactions. To learn more, see our Fee Schedule, Order Flow Rebate FAQ, and Order Flow Rebate Program Terms & Conditions.
Options can be risky and are not suitable for all investors. See the Characteristics and Risks of Standardized Options to learn more.
All investing involves the risk of loss, including loss of principal. Brokerage services for US-listed, registered securities, options and bonds in a self-directed account are offered by Open to the Public Investing, Inc., member FINRA & SIPC. See public.com/#disclosures-main for more information.
On this episode, Mark and Dan take a deep dive into long strangles.
- Examples
- Do we like them
- Long strangles vs. long straddles
They also talk about how you can hedge when IV is so high.
Brought to you by Public.com
Options are not suitable for all investors and carry significant risk. Option investors can rapidly lose the value of their investment in a short period of time and incur permanent loss by expiration date. Certain complex options strategies carry additional risk. There are additional costs associated with option strategies that call for multiple purchases and sales of options, such as spreads, straddles, among others, as compared with a single option trade.
Prior to buying or selling an option, investors must read and understand the “Characteristics and Risks of Standardized Options”, also known as the options disclosure document (ODD) which can be found at: www.theocc.com/company-information/documents-and-archives/options-disclosure-document
Supporting documentation for any claims will be furnished upon request.
If you are enrolled in our Options Order Flow Rebate Program, The exact rebate will depend on the specifics of each transaction and will be previewed for you prior to submitting each trade. This rebate will be deducted from your cost to place the trade and will be reflected on your trade confirmation. Order flow rebates are not available for non-options transactions. To learn more, see our Fee Schedule, Order Flow Rebate FAQ, and Order Flow Rebate Program Terms & Conditions.
Options can be risky and are not suitable for all investors. See the Characteristics and Risks of Standardized Options to learn more.
All investing involves the risk of loss, including loss of principal. Brokerage services for US-listed, registered securities, options and bonds in a self-directed account are offered by Open to the Public Investing, Inc., member FINRA & SIPC. See public.com/#disclosures-main for more information.
On this episode, Mark and Dan discuss:
- Whether our listeners are a buyer or seller for November SOUN calls
- Whether we think that we will see an October surprise that impacts the election
- What happens to the options when a stock gets delisted?
- Backtesting going long monthly straddles on the SPX
- Buying ATM verticals in momentum stocks
- American vs European options exercised on/after expiration day
- And much more
Brought to you by Public.com
Options are not suitable for all investors and carry significant risk. Option investors can rapidly lose the value of their investment in a short period of time and incur permanent loss by expiration date. Certain complex options strategies carry additional risk. There are additional costs associated with option strategies that call for multiple purchases and sales of options, such as spreads, straddles, among others, as compared with a single option trade.
Prior to buying or selling an option, investors must read and understand the “Characteristics and Risks of Standardized Options”, also known as the options disclosure document (ODD) which can be found at: www.theocc.com/company-information/documents-and-archives/options-disclosure-document
Supporting documentation for any claims will be furnished upon request.
If you are enrolled in our Options Order Flow Rebate Program, The exact rebate will depend on the specifics of each transaction and will be previewed for you prior to submitting each trade. This rebate will be deducted from your cost to place the trade and will be reflected on your trade confirmation. Order flow rebates are not available for non-options transactions. To learn more, see our Fee Schedule, Order Flow Rebate FAQ, and Order Flow Rebate Program Terms & Conditions.
Options can be risky and are not suitable for all investors. See the Characteristics and Risks of Standardized Options to learn more.
All investing involves the risk of loss, including loss of principal. Brokerage services for US-listed, registered securities, options and bonds in a self-directed account are offered by Open to the Public Investing, Inc., member FINRA & SIPC. See public.com/#disclosures-main for more information.
On this episode, Mark and Dan discuss:
- Tools to evaluate skew in the S&P 500
- Why we have been finding better earnings trades
- Pattern Day Trading rules recently changed by FINRA
- Legging into a butterfly
- Short Straddles
- And much more
Brought to you by Public.com
Options are not suitable for all investors and carry significant risk. Option investors can rapidly lose the value of their investment in a short period of time and incur permanent loss by expiration date. Certain complex options strategies carry additional risk. There are additional costs associated with option strategies that call for multiple purchases and sales of options, such as spreads, straddles, among others, as compared with a single option trade.
Prior to buying or selling an option, investors must read and understand the “Characteristics and Risks of Standardized Options”, also known as the options disclosure document (ODD) which can be found at: www.theocc.com/company-information/documents-and-archives/options-disclosure-document
Supporting documentation for any claims will be furnished upon request.
If you are enrolled in our Options Order Flow Rebate Program, The exact rebate will depend on the specifics of each transaction and will be previewed for you prior to submitting each trade. This rebate will be deducted from your cost to place the trade and will be reflected on your trade confirmation. Order flow rebates are not available for non-options transactions. To learn more, see our Fee Schedule, Order Flow Rebate FAQ, and Order Flow Rebate Program Terms & Conditions.
Options can be risky and are not suitable for all investors. See the Characteristics and Risks of Standardized Options to learn more.
All investing involves the risk of loss, including loss of principal. Brokerage services for US-listed, registered securities, options and bonds in a self-directed account are offered by Open to the Public Investing, Inc., member FINRA & SIPC. See public.com/#disclosures-main for more information.
On this episode, Mark and Dan discuss:
- Where you can find cheap volatility these days
- What is your trading plan through the election
- Trading IBIT options once they are listed
- Broker who offers free trading
- Best ways to protect portfolio w/ latest conflict in Middle East
- How long it takes to get good at options
- And much more
Brought to you by Public.com
Options are not suitable for all investors and carry significant risk. Option investors can rapidly lose the value of their investment in a short period of time and incur permanent loss by expiration date. Certain complex options strategies carry additional risk. There are additional costs associated with option strategies that call for multiple purchases and sales of options, such as spreads, straddles, among others, as compared with a single option trade.
Prior to buying or selling an option, investors must read and understand the “Characteristics and Risks of Standardized Options”, also known as the options disclosure document (ODD) which can be found at: www.theocc.com/company-information/documents-and-archives/options-disclosure-document
Supporting documentation for any claims will be furnished upon request.
If you are enrolled in our Options Order Flow Rebate Program, The exact rebate will depend on the specifics of each transaction and will be previewed for you prior to submitting each trade. This rebate will be deducted from your cost to place the trade and will be reflected on your trade confirmation. Order flow rebates are not available for non-options transactions. To learn more, see our Fee Schedule, Order Flow Rebate FAQ, and Order Flow Rebate Program Terms & Conditions.
Options can be risky and are not suitable for all investors. See the Characteristics and Risks of Standardized Options to learn more.
All investing involves the risk of loss, including loss of principal. Brokerage services for US-listed, registered securities, options and bonds in a self-directed account are offered by Open to the Public Investing, Inc., member FINRA & SIPC. See public.com/#disclosures-main for more information.
On this episode, Mark and Dan explain what they mean by the guts of spreads. They also talk about what they consider to be the most important thing in trading, and they discuss what was the best part of market making from a training or preparation standpoint.
Brought to you by Public.com
Options are not suitable for all investors and carry significant risk. Option investors can rapidly lose the value of their investment in a short period of time and incur permanent loss by expiration date. Certain complex options strategies carry additional risk. There are additional costs associated with option strategies that call for multiple purchases and sales of options, such as spreads, straddles, among others, as compared with a single option trade.
Prior to buying or selling an option, investors must read and understand the “Characteristics and Risks of Standardized Options”, also known as the options disclosure document (ODD) which can be found at: www.theocc.com/company-information/documents-and-archives/options-disclosure-document
Supporting documentation for any claims will be furnished upon request.
If you are enrolled in our Options Order Flow Rebate Program, The exact rebate will depend on the specifics of each transaction and will be previewed for you prior to submitting each trade. This rebate will be deducted from your cost to place the trade and will be reflected on your trade confirmation. Order flow rebates are not available for non-options transactions. To learn more, see our Fee Schedule, Order Flow Rebate FAQ, and Order Flow Rebate Program Terms & Conditions.
Options can be risky and are not suitable for all investors. See the Characteristics and Risks of Standardized Options to learn more.
All investing involves the risk of loss, including loss of principal. Brokerage services for US-listed, registered securities, options and bonds in a self-directed account are offered by Open to the Public Investing, Inc., member FINRA & SIPC. See public.com/#disclosures-main for more information.
On this episode, Mark and Dan discuss why trade size/allocation is so important, pattern day trading rules, an options market for XRP, and historic vs. implied volatility in an ETF.
Brought to you by Public.com
Options are not suitable for all investors and carry significant risk. Option investors can rapidly lose the value of their investment in a short period of time and incur permanent loss by expiration date. Certain complex options strategies carry additional risk. There are additional costs associated with option strategies that call for multiple purchases and sales of options, such as spreads, straddles, among others, as compared with a single option trade.
Prior to buying or selling an option, investors must read and understand the “Characteristics and Risks of Standardized Options”, also known as the options disclosure document (ODD) which can be found at: www.theocc.com/company-information/documents-and-archives/options-disclosure-document
Supporting documentation for any claims will be furnished upon request.
If you are enrolled in our Options Order Flow Rebate Program, The exact rebate will depend on the specifics of each transaction and will be previewed for you prior to submitting each trade. This rebate will be deducted from your cost to place the trade and will be reflected on your trade confirmation. Order flow rebates are not available for non-options transactions. To learn more, see our Fee Schedule, Order Flow Rebate FAQ, and Order Flow Rebate Program Terms & Conditions.
Options can be risky and are not suitable for all investors. See the Characteristics and Risks of Standardized Options to learn more.
All investing involves the risk of loss, including loss of principal. Brokerage services for US-listed, registered securities, options and bonds in a self-directed account are offered by Open to the Public Investing, Inc., member FINRA & SIPC. See public.com/#disclosures-main for more information.
On this episode, Mark and Dan discuss the best options strategies within IRAs to grow wealth in bull/neutral/bear markets with consistency and reliability.
Brought to you by Public.com
Options are not suitable for all investors and carry significant risk. Option investors can rapidly lose the value of their investment in a short period of time and incur permanent loss by expiration date. Certain complex options strategies carry additional risk. There are additional costs associated with option strategies that call for multiple purchases and sales of options, such as spreads, straddles, among others, as compared with a single option trade.
Prior to buying or selling an option, investors must read and understand the “Characteristics and Risks of Standardized Options”, also known as the options disclosure document (ODD) which can be found at: www.theocc.com/company-information/documents-and-archives/options-disclosure-document
Supporting documentation for any claims will be furnished upon request.
If you are enrolled in our Options Order Flow Rebate Program, The exact rebate will depend on the specifics of each transaction and will be previewed for you prior to submitting each trade. This rebate will be deducted from your cost to place the trade and will be reflected on your trade confirmation. Order flow rebates are not available for non-options transactions. To learn more, see our Fee Schedule, Order Flow Rebate FAQ, and Order Flow Rebate Program Terms & Conditions.
Options can be risky and are not suitable for all investors. See the Characteristics and Risks of Standardized Options to learn more.
All investing involves the risk of loss, including loss of principal. Brokerage services for US-listed, registered securities, options and bonds in a self-directed account are offered by Open to the Public Investing, Inc., member FINRA & SIPC. See public.com/#disclosures-main for more information.
On this episode, Mark and Dan discuss:
- How you deal with trades when you are traveling
- Spreading delta, gamma and theta
- Determining skew levels in the S&P500
- Short straddles vs. long straddles
- Strangles as a hedge
- And much more
Brought to you by Public.com
Options are not suitable for all investors and carry significant risk. Option investors can rapidly lose the value of their investment in a short period of time and incur permanent loss by expiration date. Certain complex options strategies carry additional risk. There are additional costs associated with option strategies that call for multiple purchases and sales of options, such as spreads, straddles, among others, as compared with a single option trade.
Prior to buying or selling an option, investors must read and understand the “Characteristics and Risks of Standardized Options”, also known as the options disclosure document (ODD) which can be found at: www.theocc.com/company-information/documents-and-archives/options-disclosure-document
Supporting documentation for any claims will be furnished upon request.
If you are enrolled in our Options Order Flow Rebate Program, The exact rebate will depend on the specifics of each transaction and will be previewed for you prior to submitting each trade. This rebate will be deducted from your cost to place the trade and will be reflected on your trade confirmation. Order flow rebates are not available for non-options transactions. To learn more, see our Fee Schedule, Order Flow Rebate FAQ, and Order Flow Rebate Program Terms & Conditions.
Options can be risky and are not suitable for all investors. See the Characteristics and Risks of Standardized Options to learn more.
All investing involves the risk of loss, including loss of principal. Brokerage services for US-listed, registered securities, options and bonds in a self-directed account are offered by Open to the Public Investing, Inc., member FINRA & SIPC. See public.com/#disclosures-main for more information.
On this episode, Mark and Dan discuss:
- Nvidia straddles and earnings this week
- Dan's favorite indicators
- Dan's straddle trade
- Short straddles in the short time frame
- An OTM VIX call stupid mentioned on Volatility Views
- SAnd much more
Brought to you by Public.com
Options are not suitable for all investors and carry significant risk. Option investors can rapidly lose the value of their investment in a short period of time and incur permanent loss by expiration date. Certain complex options strategies carry additional risk. There are additional costs associated with option strategies that call for multiple purchases and sales of options, such as spreads, straddles, among others, as compared with a single option trade.
Prior to buying or selling an option, investors must read and understand the “Characteristics and Risks of Standardized Options”, also known as the options disclosure document (ODD) which can be found at: www.theocc.com/company-information/documents-and-archives/options-disclosure-document
Supporting documentation for any claims will be furnished upon request.
If you are enrolled in our Options Order Flow Rebate Program, The exact rebate will depend on the specifics of each transaction and will be previewed for you prior to submitting each trade. This rebate will be deducted from your cost to place the trade and will be reflected on your trade confirmation. Order flow rebates are not available for non-options transactions. To learn more, see our Fee Schedule, Order Flow Rebate FAQ, and Order Flow Rebate Program Terms & Conditions.
Options can be risky and are not suitable for all investors. See the Characteristics and Risks of Standardized Options to learn more.
All investing involves the risk of loss, including loss of principal. Brokerage services for US-listed, registered securities, options and bonds in a self-directed account are offered by Open to the Public Investing, Inc., member FINRA & SIPC. See public.com/#disclosures-main for more information.
On this episode, Mark and Dan discuss:
- Taking the odds for a bear call spread
- What trading metrics you should look at
- Should you trade straddles right now
- And much more
Brought to you by Public.com
Options are not suitable for all investors and carry significant risk. Option investors can rapidly lose the value of their investment in a short period of time and incur permanent loss by expiration date. Certain complex options strategies carry additional risk. There are additional costs associated with option strategies that call for multiple purchases and sales of options, such as spreads, straddles, among others, as compared with a single option trade.
Prior to buying or selling an option, investors must read and understand the “Characteristics and Risks of Standardized Options”, also known as the options disclosure document (ODD) which can be found at: www.theocc.com/company-information/documents-and-archives/options-disclosure-document
Supporting documentation for any claims will be furnished upon request.
If you are enrolled in our Options Order Flow Rebate Program, The exact rebate will depend on the specifics of each transaction and will be previewed for you prior to submitting each trade. This rebate will be deducted from your cost to place the trade and will be reflected on your trade confirmation. Order flow rebates are not available for non-options transactions. To learn more, see our Fee Schedule, Order Flow Rebate FAQ, and Order Flow Rebate Program Terms & Conditions.
Options can be risky and are not suitable for all investors. See the Characteristics and Risks of Standardized Options to learn more.
All investing involves the risk of loss, including loss of principal. Brokerage services for US-listed, registered securities, options and bonds in a self-directed account are offered by Open to the Public Investing, Inc., member FINRA & SIPC. See public.com/#disclosures-main for more information.
On this episode, Mark and Dan answer your questions about:
- Number of options exchanges needed
- How high VIX will stay this year
- Do we need an emergency rate cut
- A poor man's covered call
- Hedging weekend risk
- BITO as an options trading candidate
- What calls bid in the Russell 2000 right now means and why it is unprecedented
- and much more...
Brought to you by Public.com
Options are not suitable for all investors and carry significant risk. Option investors can rapidly lose the value of their investment in a short period of time and incur permanent loss by expiration date. Certain complex options strategies carry additional risk. There are additional costs associated with option strategies that call for multiple purchases and sales of options, such as spreads, straddles, among others, as compared with a single option trade.
Prior to buying or selling an option, investors must read and understand the “Characteristics and Risks of Standardized Options”, also known as the options disclosure document (ODD) which can be found at: www.theocc.com/company-information/documents-and-archives/options-disclosure-document
Supporting documentation for any claims will be furnished upon request.
If you are enrolled in our Options Order Flow Rebate Program, The exact rebate will depend on the specifics of each transaction and will be previewed for you prior to submitting each trade. This rebate will be deducted from your cost to place the trade and will be reflected on your trade confirmation. Order flow rebates are not available for non-options transactions. To learn more, see our Fee Schedule, Order Flow Rebate FAQ, and Order Flow Rebate Program Terms & Conditions.
Options can be risky and are not suitable for all investors. See the Characteristics and Risks of Standardized Options to learn more.
All investing involves the risk of loss, including loss of principal. Brokerage services for US-listed, registered securities, options and bonds in a self-directed account are offered by Open to the Public Investing, Inc., member FINRA & SIPC. See public.com/#disclosures-main for more information.
On this episode, Mark and Dan take you down a dangerous road to the world of...
COVERED STRANGLES!!!!
- What the heck are they?
- Should you use them or should you run screaming for the door?
- Let's find out together on this episode of Options Boot Camp.
Brought to you by Public.com
Options are not suitable for all investors and carry significant risk. Option investors can rapidly lose the value of their investment in a short period of time and incur permanent loss by expiration date. Certain complex options strategies carry additional risk. There are additional costs associated with option strategies that call for multiple purchases and sales of options, such as spreads, straddles, among others, as compared with a single option trade.
Prior to buying or selling an option, investors must read and understand the “Characteristics and Risks of Standardized Options”, also known as the options disclosure document (ODD) which can be found at: www.theocc.com/company-information/documents-and-archives/options-disclosure-document
Supporting documentation for any claims will be furnished upon request.
If you are enrolled in our Options Order Flow Rebate Program, The exact rebate will depend on the specifics of each transaction and will be previewed for you prior to submitting each trade. This rebate will be deducted from your cost to place the trade and will be reflected on your trade confirmation. Order flow rebates are not available for non-options transactions. To learn more, see our Fee Schedule, Order Flow Rebate FAQ, and Order Flow Rebate Program Terms & Conditions.
Options can be risky and are not suitable for all investors. See the Characteristics and Risks of Standardized Options to learn more.
All investing involves the risk of loss, including loss of principal. Brokerage services for US-listed, registered securities, options and bonds in a self-directed account are offered by Open to the Public Investing, Inc., member FINRA & SIPC. See public.com/#disclosures-main for more information.
On this episode, Mark and Dan discuss how to set up a broken-wing butterfly and much more.
Brought to you by Public.com
Options are not suitable for all investors and carry significant risk. Option investors can rapidly lose the value of their investment in a short period of time and incur permanent loss by expiration date. Certain complex options strategies carry additional risk. There are additional costs associated with option strategies that call for multiple purchases and sales of options, such as spreads, straddles, among others, as compared with a single option trade.
Prior to buying or selling an option, investors must read and understand the “Characteristics and Risks of Standardized Options”, also known as the options disclosure document (ODD) which can be found at: www.theocc.com/company-information/documents-and-archives/options-disclosure-document
Supporting documentation for any claims will be furnished upon request.
If you are enrolled in our Options Order Flow Rebate Program, The exact rebate will depend on the specifics of each transaction and will be previewed for you prior to submitting each trade. This rebate will be deducted from your cost to place the trade and will be reflected on your trade confirmation. Order flow rebates are not available for non-options transactions. To learn more, see our Fee Schedule, Order Flow Rebate FAQ, and Order Flow Rebate Program Terms & Conditions.
Options can be risky and are not suitable for all investors. See the Characteristics and Risks of Standardized Options to learn more.
All investing involves the risk of loss, including loss of principal. Brokerage services for US-listed, registered securities, options and bonds in a self-directed account are offered by Open to the Public Investing, Inc., member FINRA & SIPC. See public.com/#disclosures-main for more information.
On this episode, Mark and Dan explain what weekend risk is and how traders should deal with it. They also discuss when you use a broken wing butterfly and much more.
Brought to you by Public.com
Options are not suitable for all investors and carry significant risk. Option investors can rapidly lose the value of their investment in a short period of time and incur permanent loss by expiration date. Certain complex options strategies carry additional risk. There are additional costs associated with option strategies that call for multiple purchases and sales of options, such as spreads, straddles, among others, as compared with a single option trade.
Prior to buying or selling an option, investors must read and understand the “Characteristics and Risks of Standardized Options”, also known as the options disclosure document (ODD) which can be found at: www.theocc.com/company-information/documents-and-archives/options-disclosure-document
Supporting documentation for any claims will be furnished upon request.
If you are enrolled in our Options Order Flow Rebate Program, The exact rebate will depend on the specifics of each transaction and will be previewed for you prior to submitting each trade. This rebate will be deducted from your cost to place the trade and will be reflected on your trade confirmation. Order flow rebates are not available for non-options transactions. To learn more, see our Fee Schedule, Order Flow Rebate FAQ, and Order Flow Rebate Program Terms & Conditions.
Options can be risky and are not suitable for all investors. See the Characteristics and Risks of Standardized Options to learn more.
All investing involves the risk of loss, including loss of principal. Brokerage services for US-listed, registered securities, options and bonds in a self-directed account are offered by Open to the Public Investing, Inc., member FINRA & SIPC. See public.com/#disclosures-main for more information.
On this episode, Mark and Dan answer your questions about:
- Long-Term Average of VIX
- Earnings volatility in Q3
- Hedging NVDA and TSLA
- When to roll your puts
- and much more...
Brought to you by Public.com
Options are not suitable for all investors and carry significant risk. Option investors can rapidly lose the value of their investment in a short period of time and incur permanent loss by expiration date. Certain complex options strategies carry additional risk. There are additional costs associated with option strategies that call for multiple purchases and sales of options, such as spreads, straddles, among others, as compared with a single option trade.
Prior to buying or selling an option, investors must read and understand the “Characteristics and Risks of Standardized Options”, also known as the options disclosure document (ODD) which can be found at: www.theocc.com/company-information/documents-and-archives/options-disclosure-document
Supporting documentation for any claims will be furnished upon request.
If you are enrolled in our Options Order Flow Rebate Program, The exact rebate will depend on the specifics of each transaction and will be previewed for you prior to submitting each trade. This rebate will be deducted from your cost to place the trade and will be reflected on your trade confirmation. Order flow rebates are not available for non-options transactions. To learn more, see our Fee Schedule, Order Flow Rebate FAQ, and Order Flow Rebate Program Terms & Conditions.
Options can be risky and are not suitable for all investors. See the Characteristics and Risks of Standardized Options to learn more.
All investing involves the risk of loss, including loss of principal. Brokerage services for US-listed, registered securities, options and bonds in a self-directed account are offered by Open to the Public Investing, Inc., member FINRA & SIPC. See public.com/#disclosures-main for more information.
On this episode, Mark and Dan provide examples on how to hedge a downturn in the market.
Brought to you by Public.com
Options are not suitable for all investors and carry significant risk. Option investors can rapidly lose the value of their investment in a short period of time and incur permanent loss by expiration date. Certain complex options strategies carry additional risk. There are additional costs associated with option strategies that call for multiple purchases and sales of options, such as spreads, straddles, among others, as compared with a single option trade.
Prior to buying or selling an option, investors must read and understand the “Characteristics and Risks of Standardized Options”, also known as the options disclosure document (ODD) which can be found at: www.theocc.com/company-information/documents-and-archives/options-disclosure-document
Supporting documentation for any claims will be furnished upon request.
If you are enrolled in our Options Order Flow Rebate Program, The exact rebate will depend on the specifics of each transaction and will be previewed for you prior to submitting each trade. This rebate will be deducted from your cost to place the trade and will be reflected on your trade confirmation. Order flow rebates are not available for non-options transactions. To learn more, see our Fee Schedule, Order Flow Rebate FAQ, and Order Flow Rebate Program Terms & Conditions.
Options can be risky and are not suitable for all investors. See the Characteristics and Risks of Standardized Options to learn more.
All investing involves the risk of loss, including loss of principal. Brokerage services for US-listed, registered securities, options and bonds in a self-directed account are offered by Open to the Public Investing, Inc., member FINRA & SIPC. See public.com/#disclosures-main for more information.
On this episode, Mark and Dan answer your questions about:
- Trading strategies
- Gamma and Delta
- Selling puts to get into stocks at lower prices
- Trading VIX
- and much more...
Brought to you by Public.com
Options are not suitable for all investors and carry significant risk. Option investors can rapidly lose the value of their investment in a short period of time and incur permanent loss by expiration date. Certain complex options strategies carry additional risk. There are additional costs associated with option strategies that call for multiple purchases and sales of options, such as spreads, straddles, among others, as compared with a single option trade.
Prior to buying or selling an option, investors must read and understand the “Characteristics and Risks of Standardized Options”, also known as the options disclosure document (ODD) which can be found at: www.theocc.com/company-information/documents-and-archives/options-disclosure-document
Supporting documentation for any claims will be furnished upon request.
If you are enrolled in our Options Order Flow Rebate Program, The exact rebate will depend on the specifics of each transaction and will be previewed for you prior to submitting each trade. This rebate will be deducted from your cost to place the trade and will be reflected on your trade confirmation. Order flow rebates are not available for non-options transactions. To learn more, see our Fee Schedule, Order Flow Rebate FAQ, and Order Flow Rebate Program Terms & Conditions.
Options can be risky and are not suitable for all investors. See the Characteristics and Risks of Standardized Options to learn more.
All investing involves the risk of loss, including loss of principal. Brokerage services for US-listed, registered securities, options and bonds in a self-directed account are offered by Open to the Public Investing, Inc., member FINRA & SIPC. See public.com/#disclosures-main for more information.
On this episode, Mark and Dan discuss breaking into a trading crowd, RAEs, and much more...
Brought to you by Public.com
Options are not suitable for all investors and carry significant risk. Option investors can rapidly lose the value of their investment in a short period of time and incur permanent loss by expiration date. Certain complex options strategies carry additional risk. There are additional costs associated with option strategies that call for multiple purchases and sales of options, such as spreads, straddles, among others, as compared with a single option trade.
Prior to buying or selling an option, investors must read and understand the “Characteristics and Risks of Standardized Options”, also known as the options disclosure document (ODD) which can be found at: www.theocc.com/company-information/documents-and-archives/options-disclosure-document
Supporting documentation for any claims will be furnished upon request.
If you are enrolled in our Options Order Flow Rebate Program, The exact rebate will depend on the specifics of each transaction and will be previewed for you prior to submitting each trade. This rebate will be deducted from your cost to place the trade and will be reflected on your trade confirmation. Order flow rebates are not available for non-options transactions. To learn more, see our Fee Schedule, Order Flow Rebate FAQ, and Order Flow Rebate Program Terms & Conditions.
Options can be risky and are not suitable for all investors. See the Characteristics and Risks of Standardized Options to learn more.
All investing involves the risk of loss, including loss of principal. Brokerage services for US-listed, registered securities, options and bonds in a self-directed account are offered by Open to the Public Investing, Inc., member FINRA & SIPC. See public.com/#disclosures-main for more information.
On this episode, Mark and Dan answer your questions about:
- Trading flex options
- Trading earnings volatility
- Trading options without trading stock or any underlying
- Options education
- and much more...
Brought to you by Public.com
Options are not suitable for all investors and carry significant risk. Option investors can rapidly lose the value of their investment in a short period of time and incur permanent loss by expiration date. Certain complex options strategies carry additional risk. There are additional costs associated with option strategies that call for multiple purchases and sales of options, such as spreads, straddles, among others, as compared with a single option trade.
Prior to buying or selling an option, investors must read and understand the “Characteristics and Risks of Standardized Options”, also known as the options disclosure document (ODD) which can be found at: www.theocc.com/company-information/documents-and-archives/options-disclosure-document
Supporting documentation for any claims will be furnished upon request.
If you are enrolled in our Options Order Flow Rebate Program, The exact rebate will depend on the specifics of each transaction and will be previewed for you prior to submitting each trade. This rebate will be deducted from your cost to place the trade and will be reflected on your trade confirmation. Order flow rebates are not available for non-options transactions. To learn more, see our Fee Schedule, Order Flow Rebate FAQ, and Order Flow Rebate Program Terms & Conditions.
Options can be risky and are not suitable for all investors. See the Characteristics and Risks of Standardized Options to learn more.
All investing involves the risk of loss, including loss of principal. Brokerage services for US-listed, registered securities, options and bonds in a self-directed account are offered by Open to the Public Investing, Inc., member FINRA & SIPC. See public.com/#disclosures-main for more information.
On this episode, Mark and Dan discuss capturing dividends using options.
- What does that mean?
- What are the ways to approach this?
- and much more...
Brought to you by Public.com
Options are not suitable for all investors and carry significant risk. Option investors can rapidly lose the value of their investment in a short period of time and incur permanent loss by expiration date. Certain complex options strategies carry additional risk. There are additional costs associated with option strategies that call for multiple purchases and sales of options, such as spreads, straddles, among others, as compared with a single option trade.
Prior to buying or selling an option, investors must read and understand the “Characteristics and Risks of Standardized Options”, also known as the options disclosure document (ODD) which can be found at: www.theocc.com/company-information/documents-and-archives/options-disclosure-document
Supporting documentation for any claims will be furnished upon request.
If you are enrolled in our Options Order Flow Rebate Program, The exact rebate will depend on the specifics of each transaction and will be previewed for you prior to submitting each trade. This rebate will be deducted from your cost to place the trade and will be reflected on your trade confirmation. Order flow rebates are not available for non-options transactions. To learn more, see our Fee Schedule, Order Flow Rebate FAQ, and Order Flow Rebate Program Terms & Conditions.
Options can be risky and are not suitable for all investors. See the Characteristics and Risks of Standardized Options to learn more.
All investing involves the risk of loss, including loss of principal. Brokerage services for US-listed, registered securities, options and bonds in a self-directed account are offered by Open to the Public Investing, Inc., member FINRA & SIPC. See public.com/#disclosures-main for more information.
On this episode, Mark and Dan revisit one of their "favorite" topics ...Gamma Scalping!
- What is it?
- How do you do it?
- Why you should never do it!
They also explore:
- What happens to your options when they are delisted
- What happens to your premium when you write a call
- and much more...
Brought to you by Public.com
Options are not suitable for all investors and carry significant risk. Option investors can rapidly lose the value of their investment in a short period of time and incur permanent loss by expiration date. Certain complex options strategies carry additional risk. There are additional costs associated with option strategies that call for multiple purchases and sales of options, such as spreads, straddles, among others, as compared with a single option trade.
Prior to buying or selling an option, investors must read and understand the “Characteristics and Risks of Standardized Options”, also known as the options disclosure document (ODD) which can be found at: www.theocc.com/company-information/documents-and-archives/options-disclosure-document
Supporting documentation for any claims will be furnished upon request.
If you are enrolled in our Options Order Flow Rebate Program, The exact rebate will depend on the specifics of each transaction and will be previewed for you prior to submitting each trade. This rebate will be deducted from your cost to place the trade and will be reflected on your trade confirmation. Order flow rebates are not available for non-options transactions. To learn more, see our Fee Schedule, Order Flow Rebate FAQ, and Order Flow Rebate Program Terms & Conditions.
Options can be risky and are not suitable for all investors. See the Characteristics and Risks of Standardized Options to learn more.
All investing involves the risk of loss, including loss of principal. Brokerage services for US-listed, registered securities, options and bonds in a self-directed account are offered by Open to the Public Investing, Inc., member FINRA & SIPC. See public.com/#disclosures-main for more information.
On this episode, Mark and Dan discuss trading options within IRAs.
- What is an IRA and what can't you do with one?
- What options strategies can/can't you do with an IRA?
Mark and Dan also discuss ETFs vs. Index Options and much more.
Brought to you by Public.com
Options are not suitable for all investors and carry significant risk. Option investors can rapidly lose the value of their investment in a short period of time and incur permanent loss by expiration date. Certain complex options strategies carry additional risk. There are additional costs associated with option strategies that call for multiple purchases and sales of options, such as spreads, straddles, among others, as compared with a single option trade.
Prior to buying or selling an option, investors must read and understand the “Characteristics and Risks of Standardized Options”, also known as the options disclosure document (ODD) which can be found at: www.theocc.com/company-information/documents-and-archives/options-disclosure-document
Supporting documentation for any claims will be furnished upon request.
If you are enrolled in our Options Order Flow Rebate Program, The exact rebate will depend on the specifics of each transaction and will be previewed for you prior to submitting each trade. This rebate will be deducted from your cost to place the trade and will be reflected on your trade confirmation. Order flow rebates are not available for non-options transactions. To learn more, see our Fee Schedule, Order Flow Rebate FAQ, and Order Flow Rebate Program Terms & Conditions.
Options can be risky and are not suitable for all investors. See the Characteristics and Risks of Standardized Options to learn more.
All investing involves the risk of loss, including loss of principal. Brokerage services for US-listed, registered securities, options and bonds in a self-directed account are offered by Open to the Public Investing, Inc., member FINRA & SIPC. See public.com/#disclosures-main for more information.
On this episode, Mark and Dan discuss the pariah of the options markets - Rho.
- What is Rho?
- What are the strategies where Rho makes an impact?
- Where is Rho irrelevant?
- And much more.
Brought to you by Public.com
Options are not suitable for all investors and carry significant risk. Option investors can rapidly lose the value of their investment in a short period of time and incur permanent loss by expiration date. Certain complex options strategies carry additional risk. There are additional costs associated with option strategies that call for multiple purchases and sales of options, such as spreads, straddles, among others, as compared with a single option trade.
Prior to buying or selling an option, investors must read and understand the “Characteristics and Risks of Standardized Options”, also known as the options disclosure document (ODD) which can be found at: www.theocc.com/company-information/documents-and-archives/options-disclosure-document
Supporting documentation for any claims will be furnished upon request.
If you are enrolled in our Options Order Flow Rebate Program, The exact rebate will depend on the specifics of each transaction and will be previewed for you prior to submitting each trade. This rebate will be deducted from your cost to place the trade and will be reflected on your trade confirmation. Order flow rebates are not available for non-options transactions. To learn more, see our Fee Schedule, Order Flow Rebate FAQ, and Order Flow Rebate Program Terms & Conditions.
Options can be risky and are not suitable for all investors. See the Characteristics and Risks of Standardized Options to learn more.
All investing involves the risk of loss, including loss of principal. Brokerage services for US-listed, registered securities, options and bonds in a self-directed account are offered by Open to the Public Investing, Inc., member FINRA & SIPC. See public.com/#disclosures-main for more information.
On this episode, Mark and Dan discuss takeaways from last week's Options Industry Conference. Flex Options were one of the hottest things there. They discuss what Flex Options are and when to use them. They also discuss whether we will have 0dte options in single stocks before the end of the year and so much more.
Brought to you by Public.com
Options are not suitable for all investors and carry significant risk. Option investors can rapidly lose the value of their investment in a short period of time and incur permanent loss by expiration date. Certain complex options strategies carry additional risk. There are additional costs associated with option strategies that call for multiple purchases and sales of options, such as spreads, straddles, among others, as compared with a single option trade.
Prior to buying or selling an option, investors must read and understand the “Characteristics and Risks of Standardized Options”, also known as the options disclosure document (ODD) which can be found at: www.theocc.com/company-information/documents-and-archives/options-disclosure-document
Supporting documentation for any claims will be furnished upon request.
If you are enrolled in our Options Order Flow Rebate Program, The exact rebate will depend on the specifics of each transaction and will be previewed for you prior to submitting each trade. This rebate will be deducted from your cost to place the trade and will be reflected on your trade confirmation. Order flow rebates are not available for non-options transactions. To learn more, see our Fee Schedule, Order Flow Rebate FAQ, and Order Flow Rebate Program Terms & Conditions.
Options can be risky and are not suitable for all investors. See the Characteristics and Risks of Standardized Options to learn more.
All investing involves the risk of loss, including loss of principal. Brokerage services for US-listed, registered securities, options and bonds in a self-directed account are offered by Open to the Public Investing, Inc., member FINRA & SIPC. See public.com/#disclosures-main for more information.
On this episode, Mark and Dan answer a listener question about retail traders who want to convert to full time for a prop shop. Pros/Cons, signs of a good firm, etc. They also talk about gamma scalping and whether you should be doing it.
Brought to you by Public.com
Options are not suitable for all investors and carry significant risk. Option investors can rapidly lose the value of their investment in a short period of time and incur permanent loss by expiration date. Certain complex options strategies carry additional risk. There are additional costs associated with option strategies that call for multiple purchases and sales of options, such as spreads, straddles, among others, as compared with a single option trade.
Prior to buying or selling an option, investors must read and understand the “Characteristics and Risks of Standardized Options”, also known as the options disclosure document (ODD) which can be found at: www.theocc.com/company-information/documents-and-archives/options-disclosure-document
Supporting documentation for any claims will be furnished upon request.
If you are enrolled in our Options Order Flow Rebate Program, The exact rebate will depend on the specifics of each transaction and will be previewed for you prior to submitting each trade. This rebate will be deducted from your cost to place the trade and will be reflected on your trade confirmation. Order flow rebates are not available for non-options transactions. To learn more, see our Fee Schedule, Order Flow Rebate FAQ, and Order Flow Rebate Program Terms & Conditions.
Options can be risky and are not suitable for all investors. See the Characteristics and Risks of Standardized Options to learn more.
All investing involves the risk of loss, including loss of principal. Brokerage services for US-listed, registered securities, options and bonds in a self-directed account are offered by Open to the Public Investing, Inc., member FINRA & SIPC. See public.com/#disclosures-main for more information.
On this episode, Mark and Dan discuss whether or not stock (and options) trade 24 hours. They also talk about why we don't hear more about Rho and much more.
Brought to you by Public.com
Options are not suitable for all investors and carry significant risk. Option investors can rapidly lose the value of their investment in a short period of time and incur permanent loss by expiration date. Certain complex options strategies carry additional risk. There are additional costs associated with option strategies that call for multiple purchases and sales of options, such as spreads, straddles, among others, as compared with a single option trade.
Prior to buying or selling an option, investors must read and understand the “Characteristics and Risks of Standardized Options”, also known as the options disclosure document (ODD) which can be found at: www.theocc.com/company-information/documents-and-archives/options-disclosure-document
Supporting documentation for any claims will be furnished upon request.
If you are enrolled in our Options Order Flow Rebate Program, The exact rebate will depend on the specifics of each transaction and will be previewed for you prior to submitting each trade. This rebate will be deducted from your cost to place the trade and will be reflected on your trade confirmation. Order flow rebates are not available for non-options transactions. To learn more, see our Fee Schedule, Order Flow Rebate FAQ, and Order Flow Rebate Program Terms & Conditions.
Options can be risky and are not suitable for all investors. See the Characteristics and Risks of Standardized Options to learn more.
All investing involves the risk of loss, including loss of principal. Brokerage services for US-listed, registered securities, options and bonds in a self-directed account are offered by Open to the Public Investing, Inc., member FINRA & SIPC. See public.com/#disclosures-main for more information.
On this episode, Mark and Dan continue last week's discussion of whether or not options are a zero-sum game and much more.
Brought to you by Public.com
Options are not suitable for all investors and carry significant risk. Option investors can rapidly lose the value of their investment in a short period of time and incur permanent loss by expiration date. Certain complex options strategies carry additional risk. There are additional costs associated with option strategies that call for multiple purchases and sales of options, such as spreads, straddles, among others, as compared with a single option trade.
Prior to buying or selling an option, investors must read and understand the “Characteristics and Risks of Standardized Options”, also known as the options disclosure document (ODD) which can be found at: www.theocc.com/company-information/documents-and-archives/options-disclosure-document
Supporting documentation for any claims will be furnished upon request.
If you are enrolled in our Options Order Flow Rebate Program, The exact rebate will depend on the specifics of each transaction and will be previewed for you prior to submitting each trade. This rebate will be deducted from your cost to place the trade and will be reflected on your trade confirmation. Order flow rebates are not available for non-options transactions. To learn more, see our Fee Schedule, Order Flow Rebate FAQ, and Order Flow Rebate Program Terms & Conditions.
Options can be risky and are not suitable for all investors. See the Characteristics and Risks of Standardized Options to learn more.
All investing involves the risk of loss, including loss of principal. Brokerage services for US-listed, registered securities, options and bonds in a self-directed account are offered by Open to the Public Investing, Inc., member FINRA & SIPC. See public.com/#disclosures-main for more information.
On this episode, Mark and Dan discuss:
- Basic Training: Are options a zero-sum game?
- How are you approaching SPX/SPY in your portfolio right now?
- And much more
Brought to you by Public.com
Options are not suitable for all investors and carry significant risk. Option investors can rapidly lose the value of their investment in a short period of time and incur permanent loss by expiration date. Certain complex options strategies carry additional risk. There are additional costs associated with option strategies that call for multiple purchases and sales of options, such as spreads, straddles, among others, as compared with a single option trade.
Prior to buying or selling an option, investors must read and understand the “Characteristics and Risks of Standardized Options”, also known as the options disclosure document (ODD) which can be found at: www.theocc.com/company-information/documents-and-archives/options-disclosure-document
Supporting documentation for any claims will be furnished upon request.
If you are enrolled in our Options Order Flow Rebate Program, The exact rebate will depend on the specifics of each transaction and will be previewed for you prior to submitting each trade. This rebate will be deducted from your cost to place the trade and will be reflected on your trade confirmation. Order flow rebates are not available for non-options transactions. To learn more, see our Fee Schedule, Order Flow Rebate FAQ, and Order Flow Rebate Program Terms & Conditions.
Options can be risky and are not suitable for all investors. See the Characteristics and Risks of Standardized Options to learn more.
All investing involves the risk of loss, including loss of principal. Brokerage services for US-listed, registered securities, options and bonds in a self-directed account are offered by Open to the Public Investing, Inc., member FINRA & SIPC. See public.com/#disclosures-main for more information.
On this episode, Mark and Dan discuss:
- Calendars vs. Diagonals
- Put Calendars vs. Time Spreads
- And much more
On this episode Mark and Dan discuss the great vol debate. What is keeping volatility so low? They also discuss which market segment our listeners are most excited about for the rest of the year and more.
On this episode Mark and Dan discuss diagonals. Why is Dan so excited about diagonals right now? They also respond to a listener question about stupids and more.
On this episode Mark and Dan take another look at stock substitution. You could argue that it's more relevant than ever now with the market at new all-time highs.
Later, they respond to listener questions about an OTM cash-secured put approach, the number of option positions held on a regular basis and much more.
On this episode Mark and Dan respond to listener questions about last week's episode regarding stupids. They also discuss trading 0dte options, the next big event driving trading, using leaps in your options trading, and much more.
On this episode Mark and Dan discuss stupids. What are they and when would you use them? They also answer a listener question about cash settled options and much more.
On this episode, Mark and Dan discuss:
- Another strategy to make money on the LYFT after hours moves,
- How important NVDA earnings are to the market and your portfolio,
- Kalshi binaries,
- The overall level of skew across all equities,
- And much more
On this episode, Mark and Dan discuss:
- What can be done by an options trader when a stock makes a massive move after the close like Lyft did last night? Can you make any options trades?
- What is a realistic annual profit expectation for an option trader?
- Both TSLA and AAPL are trading around $188. Which would you rather buy right now?
- And much more
Host: Mark Longo, The Options Insider Media Group Co-Host: Dan Passarelli, Market Taker Mentoring Guest: Jenny Andrews, tastylive
On this episode, Mark, Dan and Jenny discuss:
- Strategies that take advantage of a high call skew environment,
- WTH is a zebra spread,
- How important earnings season is to your options trading,
- Should you apply the lesson about not selling covered calls to short puts,
- And much more.
On this episode, Mark and Dan discuss:
- How it will impact your options trading if this low volatility regime persists for an extended period
- How you can tell if the market is over priced
- Potential of more same day options coming this year
- Being a covered call proponent
- Thoughts on the call skew we're seeing right now in many stocks
- Interest in learning more about garbage options
- WWE's Royal Rumble last weekend
- And much more
On this episode, Mark and Dan discuss:
- Which options strategy they anticipate using the most in 2024
- Will bitcoin close positive on the year
- Does SVIX adding VIX options into its holdings make them more or less likely to trade it
- What are our thoughts on playing the BTC ETF approval using options
- Is the massive volume in 0dte index options just a fad or does this mark a long-term change for the options market going forward
- And much more
On this episode Mark and Dan discuss tail risk. What is it? What are tail events and tail options?
On this episode, Mark and Dan discuss:
- What are the best market conditions for options trading
- Should we be strapping in for another 2021 meme stock run in 2024
- Why does no one talk about bi-directional butterfly trades
- And much more
On this episode, Mark and Dan discuss:
-
- Big trades/trends that stood out in 2023
- End of year options volume numbers from OCC
- Was 2023 the death of volatility
- VIX pick for 2024
- How will 2024 election impact volatility
- Will 0dte trend continue in 2024
- What will be the contagion fear of 2024
- And much more
Join Mark as he takes a look back at your surprising poll results on the hottest issues facing the options market in 2023.
On this episode, Mark, Dan and Matt Amberson have the great covered call debate. Does it make sense to keep selling calls in this environment? Does this environment make the wheel strategy less attractive right now too?
On this episode, Mark, Dan and Matt Amberson discuss what is dispersion trading and the launch of the new DSPX Index from Cboe Global Markets. They also talk about the new 17th options exchange in the US - the Member's Exchange. And, they suggest how to approach earnings season when trading options.
On this episode, Mark and Dan's discuss having too many low risk/high reward trades and having too many low reward/high risk trades. They also discuss how to approach earnings season when trading options and much more.
On this episode, Mark and Dan's share an alternative to selling option premium - buying verticals. They also discuss where VIX will close at the end of the year, and much more.
Host: Mark Longo, The Options Insider Media Group Co-Host: Dan Passarelli, Market Taker Mentoring tastytrade Hot Seat: Katie McGarrigle, tastylive
On this episode, Mark, Dan and Katie discuss:
- Should you trade futures options or equity options,
- Some basic differences between futures options and equity options,
- And much more.
This episode of Options Boot Camp is brought to you by tastytrade.
As Thanksgiving is celebrated in the US tomorrow, Mark and Dan discuss the options strategies that they are most thankful for on this episode and much more.
This episode of Options Boot Camp is brought to you by tastytrade.
Host: Mark Longo, The Options Insider Media Group Co-Host: Dan Passarelli, Market Taker Mentoring tastytrade Hot Seat: Liz Dierking, tastylive
On this episode, Mark, Dan and Liz discuss:
- What is a jade lizard trade,
- What trading strategy you would recommend for new options traders,
- Does the pattern day trading rule apply to options or just stocks,
- Are put spreads in SPY really useless as a hedge,
- And much more.
This episode of Options Boot Camp is brought to you by tastytrade.
Host: Mark Longo, The Options Insider Media Group Co-Host: Dan Passarelli, Market Taker Mentoring tastytrade Hot Seat: Jermal Chandler, tastylive
On this episode, Mark, Dan and Jermal discuss:
- How are people using 0dte options in their trading?
- When is the right time frame to buy an option in META or AAPL?
- How to decide whether to wheel out or just keep the stock?
- And much more.
This episode of Options Boot Camp is brought to you by tastytrade.
On this episode, Mark and Dan discuss:
- The top 5 most terrifying options trades of all time;
- The scariest "sounding" options strategy name of all time;
- Trading commodity options compared with stock options;
- Whether 0DTE options increase intra-day volatility;
- And much more.
This episode of Options Boot Camp is brought to you by tastytrade.
On this episode, Mark and Dan's discuss cheap options. When is an option too cheap to bother trading the options, what are some things to consider when trading options on cheap stocks, and much more.
This episode of Options Boot Camp is brought to you by tastytrade.
On this episode Mark and Dan discuss:
- The MarketTaker Mentoring Question of the Week
- Our listeners preferred volatility ETP
- The Wheel Strategy
- Buying back ITM options before expiration
- How cash-settled options work
- Using adjusted butterflies
- And much more...
This episode of Options Boot Camp is brought to you by tastytrade.
On this episode Mark gets Dan's thoughts on the wheel trading strategy: when he uses it, how he sets it up and when not to use it. They also discuss ETPs, OTLY and much more.
This episode of Options Boot Camp is brought to you by tastytrade.
ON THIS EPISODE, MARK AND DAN DISCUSS:
- DAN'S VISIT WITH A LISTENER AT OKTOBERFEST IN GERMANY
- WHICH UPCOMING IPO ARE YOU MOST EXCITED ABOUT
- EXPLAINING THE RELATIONSHIP BTWN A SPREAD AND SAYING WHICH STRIKE LEG PREMIUM IS OVER
- THOUGHTS ON THE PPUT INDEX
- DIFFERENCE BTWN 0DTE AND PREVIOUS EXPIRATION DAY TRADING
- A LITTLE LISTENER LOVE FROM MACCHIAVELLI
- AND MUCH MORE
On this episode, Mark and guest host Matt Amberson, from Option Research & Technology Services, take a deep dive into the wheel strategy.
- What is the wheel of death?
- What makes it so attractive?
- Why do people use it?
- Examples of this strategy.
- And much more...
On this episode, Mark and Dan create the world's first (and probably only) options game show - Exercise or Die! Will Dan learn how to exercise his options correctly or die trying? You'll have to tune in to find out...
On this episode, Mark and Dan hold court on:
- The behind-the-scenes plumbing of the options market.
- They also tackle an intriguing approach to fading volatility using put calendar spreads.
- and more...
Mark and Dan answer your options questions live from the Mastermind Conference by Market Taker Mentoring at Cboe Global Markets.
On this episode Mark and Dan discuss:
- Which product has had the largest overall impact on the options market - VIX, 0DTE, Weeklys?
- Where are you allocating the majority of their portfolio?
- Does the pattern day trading rule apply to options as well or just stocks?
- Cash secured put trades
- What's an investor to do with account balances greater than 500k? Is one bank more secure than another? Divide up the account into multiple brokers/banks?
- And much more...
On this episode Mark and Dan discuss:
- Call Ladders - what are they and when should you use them?
- Can you get options certificates the way you used to get stock certificates?
- Forgotten options strategies that you should know about
- What happens when you issue contra-exercise orders on your options?
- and much more...
ON THIS EPISODE, MARK AND DAN DISCUSS:
- JULY PRO MEMBER CRATE WINNER ANNOUNCEMENT
- IS THE MEME STOCK FRENZY BACK
- WOULD YOU RATHER BUY RIVN, NKLA, OR KDP
- YOUR WEAPON OF CHOICE FOR CRYPTO OPTIONS EXPOSURE
- IS IT WORTH IT TO TRY TO CAPTURE THE BITO DIVIDEND
- HOW TO DECIDE WHETHER TO SELL A PUT VS BUY A RATIO PUT SPREAD
- AND MUCH MORE
On this episode Mark and Dan discuss outright strike selection.
- How do you choose your strike?
- Does your approach change if long vs. short premium?
- And much more...
ON THIS EPISODE, MARK AND DAN DISCUSS:
- ARE THERE ANY DRAW BACKS TO CASH-SECURED PUTS
- USING STOCK SUBSTITUTION OVER THE LONG TERM
- TYPICAL USE CASE FOR KNOCKOUT COLLARS
- ANY TIME YOU WANT TO TRADE A CALENDAR SPREAD WHEN YOU DON'T THINK THE UNDERLYING IS GOING TO SIT STILL
- WHETHER VOLATILITY DOWN ACROSS ALL ASSET CLASSES
- AND MUCH MORE
On this episode, Mark and Dan discuss good options strategies for busy traders who can't be at their screens all day (aka set-it-and-forget-it options trades).
- time frame
- particular products to use or avoid
- and much more...
ON THIS EPISODE, MARK AND DAN DISCUSS:
- FAVORITE FOOD TO EAT ON FOURTH OF JULY
- DO YOU PUT KETCHUP ON YOUR HOT DOG
- ANOTHER CRAZY OPTIONS VOLUME MONTH FOR JUNE
- HOW THE HOLIDAY WEEK IMPACTED TRADING ESPECIALLY NOW THAT PEOPLE ARE TRADING 0 DTE
- USING A STOCK'S MOMENTUM TO LEG INTO IRON CONDORS WHEN BUYING ATM STRADDLES
- IS IT WORTH SELLING PUTS RIGHT NOW WITH VIX SO LOW
- AND MUCH MORE
On this episode - Mark and Dan answer the questions:
- Have they ever made a stupid options trade that ended up working out?
- Are they "front mothers" in their options trading?
- What would it take to lure them to the dark side of 0 DTE trading?
- and much more...
On this episode - Mark and Dan answer the questions:
- WTH are binary options?
- How do they work?
- Where can you trade them?
- Are they really as shady as people think?
- and much more...
On this episode, Mark and Dan explore how to use options to ride the AI wave that is carrying the stock market to new heights.
On this episode, Mark and Dan tackle the question:
- Is it even worth it to sell covered calls anymore?
- They also explore your thoughts on 0 DTE trading and much more...
- Host: Mark Longo, Options Insider Media Group
- Co-Host: Dan Passarelli, Market Taker Mentoring
On this episode, Mark and Dan discuss your questions and comments including:
- Should you trade SPY or SPX
- Has launch of 0DTE trading changed the way you trade options
- How can a broker put up prints inside the NBBO without exposing it to market makers and traders
- Example of an upside call backspread
- Best way to trade collars
- And much more
- Host: Mark Longo, Options Insider Media Group
- Co-Host: Dan Passarelli, Market Taker Mentoring
On this episode, Mark and Dan discuss:
- How to get started as a professional trader.
- What is the best way to hedge a broad-based portfolio using options.
- And much more.
- Host: Mark Longo, Options Insider Media Group
- Co-Host: Dan Passarelli, Market Taker Mentoring
On this episode, Mark and Dan discuss your questions and comments including:
- How to hedge your full portfolio.
- How can the SEC allow QCCs to continue?
- Is there a program for visualizing options pricing changes in real time that can be used for market sentiment?
- Can long only leveraged ETFs fall apart the way SVXY did?
- Where do we get our options data for our shows.
- Couldn't someone at a bank have purchased a few puts to protect against a financial disaster?
- And much more.
On this episode, Mark and Dan tackle your questions about:
- BITO and other crypto ETFs for options traders
- How we trade straddles
- The best mobile brokerage apps for options traders
- and more...
On this episode Mark and Dan explore the mysterious world of straddles.
- What are they?
- When should you trade them?
- What are the dangers of trading straddles?
- and much more...
- Host: Mark Longo, Options Insider Media Group
- Co-Host: Dan Passarelli, Market Taker Mentoring
On this episode, Mark and Dan discuss your questions and comments including:
- What Should You Look At When You Open An Options Chain?
- Importance Of A Broker's Mobile App When Choosing A Platform
- Could You See The Number Of Options Exchanges Reducing?
- Should Exchanges Be For Profit Companies Or Member-Owned Utilities?
- And much more
- Host: Mark Longo, Options Insider Media Group
- Co-Host: Dan Passarelli, Market Taker Mentoring
On this episode, Mark and Dan discuss what features you should look for in an options broker.
- Host: Mark Longo, Options Insider Media Group
- Co-Host: Dan Passarelli, Market Taker Mentoring
- Guest Co-Host: Brian Overby, The Options Playbook
On this episode, Mark, Dan and Brian discuss your questions and comments including:
- How do you prefer to trade your butterflies;
- Why are there so many options exchanges;
- Is it time to buy and hold bank stocks or step into some long dated calls;
- And much more.
- Host: Mark Longo, Options Insider Media Group
- Co-Host: Dan Passarelli, Market Taker Mentoring
- Guest Co-Host: Brian Overby, The Options Playbook
On this episode, Mark, Dan and Brian take a deep dive into broken wing butterflies.
- Host: Mark Longo, Options Insider Media Group
- Co-Host: Dan Passarelli, Market Taker Mentoring
On this episode, Mark and Dan discuss your questions and comments including:
- How the banking sectors latest issues affect investors;
- How are puts exercised or closed when the underlying disappears;
- Using options to leg into a long stock position;
- And much more
On this episode, Mark and Dan tackle the thorny question:
- Are there any good options events left for retail traders?
- Host: Mark Longo, Options Insider Media Group
- Co-Host: Dan Passarelli, Market Taker Mentoring
On this episode, Mark and Dan discuss your questions and comments including:
- Any AI automated bot stock trading programs easily installed into a brokerage account,
- Whether cash held by a trading firm earns interest,
- Trading and options conferences in 2023,
- A large sell-off of SPY puts in Q2/Q3,
- And much more
- Host: Mark Longo, Options Insider Media Group
- Co-Host: Dan Passarelli, Market Taker Mentoring
On this episode, Mark and Dan take a deep dive into ratio put spread. They also compare short put spreads to ratio put spreads and much more.
- Host: Mark Longo, Options Insider Media Group
- Co-Host: Dan Passarelli, Market Taker Mentoring
On this episode, Mark and Dan discuss:
- The monthly pro trading crate winner,
- Earning yield on the cash used as collateral for cash secured puts,
- How you typically go about trading 1x2 put spreads,
- What is the lowest amount of premium they require to sell covered calls,
- How often someone should realistically be trading options to be profitable over the long-term,
- And much more
- Host: Mark Longo, Options Insider Media Group
- Co-Host: Dan Passarelli, Market Taker Mentoring
On this episode, Mark and Dan discuss:
- Strategies for German options traders
- Cash secured puts
- Pump and Dump schemes by social media influencers
- Stock Repair Strategy
- and much more...
- Host: Mark Longo, Options Insider Media Group
- Co-Host: Dan Passarelli, Market Taker Mentoring
On this episode, Mark and Dan take a deep dive into covered strangles/straddles.
- Host: Mark Longo, Options Insider Media Group
- Co-Host: Dan Passarelli, Market Taker Mentoring
On this episode, Mark and Dan discuss:
- Buying OTM calls in crypto assets
- The recent Fed announcement
- Why TVIX was delisted
- Same day trading in SPX
- Is SVXY a neutered volatility product
- When you should buy VXX
- Buying VIX puts during backwardation
- Does Dan still raid stocks
- and much more...
- Host: Mark Longo, Options Insider Media Group
- Co-Host: Dan Passarelli, Market Taker Mentoring
On this episode, Mark and Dan take a deep dive into exploring the universe of volatility products.
- Host: Mark Longo, Options Insider Media Group
- Co-Host: Dan Passarelli, Market Taker Mentoring
On this episode, Mark and Dan discuss:
- Why was it hard to make money owning puts in 2022?
- Would it have been a down volume year without the explosion of 0 DTE SPX options?
- Thoughts on selling straight ATM same-day straddles in SPX.
- Thoughts on eventual options on sports games.
- Being on the OTLY train.
- and much more...
On this episode, Mark and Dan dive into the exploding world of 0 DTE options. What are they? Should you be trading them and how should you approach them?
- Host: Mark Longo, Options Insider Media Group
- Co-Host: Dan Passarelli, Market Taker Mentoring
On this episode of 2023, Mark and Dan discuss:
- The trends data for selling puts,
- Their interest in VXX,
- Buying a call on margin,
- Hot options trading strategy for 2023
- and much more...
- Host: Mark Longo, Options Insider Media Group
- Co-Host: Dan Passarelli, Market Taker Mentoring
On this first episode of 2023, Mark and Dan discuss:
- Their prediction of where VIX will close at end of 2023,
- The record setting year for options volume,
- Google options trends,
- Top episodes last year,
- and much more...
We break down the Top 10 episode of Options Boot Camp from the insane year that was 2022.
- Host: Mark Longo, Options Insider Media Group
- Co-Host: Dan Passarelli, Market Taker Mentoring
On this episode, Mark and Dan discuss:
- Should you trade covered calls in a bear market?
- Plus they give you a refresher on the hottest trend in the options market right now - 0 DTE trading!
- and much more...
- Host: Mark Longo, Options Insider Media Group
- Co-Host: Dan Passarelli, Market Taker Mentoring
On this episode, Mark and Dan discuss:
- The options strategy of the year.
- Good international options brokers.
- Buying VIX puts in contango vs. backwardation.
- and much more...
Options Drills
- Mark and Dan explore the concept of "directional time spreads.
Mail Call
- More surprising details on options volume
- Are Nanos good for beginner options traders
- and much more...
On this episode, Mark and Dan answer your questions about:
- ITM Call Verticals vs. OTM Calls vs. Verticals
- Options volume for 2022
- Difficulty making money with long puts as a hedge
- Lessons from being a floor trader that are no longer relevant
- And much more
On this special holiday episode, Mark and Dan head to the Ivy League to discuss options strategies with Harvard Business School Alumni. They are joined along the way by:
- Moderator: Gary Kreissman - Group PRM
- JJ Kinahan: CEO - IG Group North America
For more information on this and other great sessions please visit:
- https://www.hbscny.org/
On this episode, Mark and Dan answer your questions about:
- Long butterflies vs. short butterflies
- Best tools for covered calls and put writing
- And much more
On this episode, Mark and Dan answer your questions about:
- The FTX - Binance crypto deal
- Trading short butterflies
- Trading a jade lizard
- OTM SPY puts
Plus, we announce our pro trading crate winner for October.
On this episode, Mark and Dan answer your questions including:
- Is there an effective way for retail traders to execute dividend arbitrage in their accounts?
- How can I make a more profitable investment in crypto as crypto is being dormant now?
- Should retail investors hedge against tail risk for their overall portfolios?
- Are there any great Fed Week trades that you remember from over the years?
- And much more...
On this episode, Mark and Dan answer your questions including:
- What's our outlook for this earnings season?
- Is our economy in a recession right now?
- Where are Dan's longer term investments? Are they in cash or is he fully invested in this market?
- How to recoup money over time on put option assignments?
- And much more...
On this episode of Options Boot Camp, Mark and Dan take a deep dive into the options trader survey results.
We also answer your question about delta neutral and much more.
On this episode of Options Boot Camp, Mark and Dan take a deep dive into the options trader survey results.
We also answer your question about delta neutral and much more.
On this episode of Options Boot Camp, Mark, Dan and special guest Matt Amberson, Owner - Option Research & Technology Services, take a deep dive into how to trade options during earnings.
We also answer your questions about straddles, adjusting puts and more.
On this episode of Options Boot Camp, Mark, Dan and special guest Matt Amberson, Owner - Option Research & Technology Services, take a deep dive into how to trade options during earnings.
We also answer your questions about straddles, adjusting puts and more.
On this episode of Options Boot Camp, Mark and Dan debate long vs. short butterflies plus they answer the age-old question of:
- How far out should you actually trade your butterflies?
On this episode of Options Boot Camp, Mark and Dan debate long vs. short butterflies plus they answer the age-old question of:
- How far out should you actually trade your butterflies?
On this episode, Mark and Dan take a deep dive into iron butterflies (what are they, examples, pros/cons).
Mark and Dan take a deep dive into iron condors live from the Mastermind Conference by Market Taker Mentoring at Cboe Global Markets.
On this episode, Mark and Dan answer your questions about:
- Credit Spreads,
- After Hours Trading,
- Iron Condors,
- Hedging Against Tail Risk,
- And much more...
On this episode of Options Boot Camp, Mark and Dan discuss:
- Tips for Finding Credit Spreads
- Covered Calls vs. Short Puts
- Favorite Technical Indicator
- And Much More
Mark and Dan debunk whether the Wall Street Journal is right to claim that the options market is accentuating the latest swings in stocks. They also share the one key understanding that you should take away from the study of the Greeks.
Mark and Dan look back at the past 199 episodes and answer your options questions. Plus, they give out prizes to the best questions asked on this celebratory show.
Mark and Dan answer your options questions live from the Mastermind Conference by Market Taker Mentoring at Cboe Global Markets.
On this episode, Mark and Dan answer your questions including:
- Should you only trade time spreads when the term structure is backward?
What distinguishes Gamma as a second order Greek but not Delta or the rest?
When I sell a poor standard deviation of a spread, what are the market makers doing with the long spread portion? - And much more...
In this episode, Mark and Dan discuss how to not f-up your credit spread trades. They answer a listener question about how the layoffs and mergers in the trading industry will affect traders and much more.
On this episode, Mark and Dan answer your questions about:
- Selling puts and put premium
- Similarities between short puts and covered calls
- Second order greeks
- Raiding during earnings season
- The golden age of the trading floor
- and much more...
In this episode, Mark and Dan discuss the pros and cons of cash as a position in a high rate high inflation environment. They also talk about our latest polls including whether or not traders are getting back into equities and crypto yet and which spread with wings is the most popular right now. And, they answer our listener questions about rho, nanos, SPY, and the number of options trades you should make in a week.
On this episode, Mark and Dan answer your questions about:
- Spreading your options wings.
- Dan writing another book.
- How options trading and commissions will be affected if the SEC dials back PFOF the way that they are talking about.
- Is it hard to find names to raid in this down market?
- Selling puts in SPY at around 3400.
- The biggest mistake people make in this market.
- and much more...
On this episode Mark and Dan explore more ways to manage your theta and answer your pressing questions about trading during blackouts.
In this episode, Mark and Dan do a deep dive into managing theta especially during a three day holiday weekend.
On this episode, Mark and Dan answer your questions about:
- The impact of new options trading floors on the marketplace.
- Are short squeezes dead.
- Why is put margin so confusing?
- Is the options party over?
- and much more...
In this episode, Mark and Dan do a deep dive into stock repair inspired by a member question. They also discuss the new Cboe trading floor, the volatility of volatility itself (VVIX), and much more.
Mark and Dan discuss the super sexy world of cash secured puts. They also discuss crypto, intra-week time spreads and much more.
Mark and Dan discuss the role of luck in options trading. Luck will always play a role in your options trading. Find out how to make luck work for you.
On this second episode of our OBC Double Header - Mark and Dan answer your questions about:
- The right level to start buying stocks in this selloff.
- Dan's thoughts on the crypto market.
- Why do people call options trades "paper?"
- The best platform for consuming Options Boot Camp
- The requirements for a good "raiding" stock.
- The right way to trade butterflies
- and much more.
Don't want to wait to hear Options Boot Camp? Do you want to ask Mark and Dan live questions during the show? Then visit www.TheOptionsInsider.com/Pro to learn more about joining the "Secret Club." You'll be glad that you did...
It's time for Mark and Dan's semi-annual refresher on Time Spreads.
- What are they?
- When should you use them?
- What is the ideal setup for a time spread?
- What about diagonals?
- Mark and Dan cover all this and more...
On this episode, Mark and Dan answer your Mail Call questions about:
- Harvesting the Risk Premium
- Avoiding options scams on twitter
- When to trade a Calendar spread vs. a Diagonal spread
- When will we see daily expirations in more options
- Rho -the Forgotten Greek
- and much more...
Ask and you shall receive! On this very-special episode of OBC, Mark and Dan regale your ears with epic tales of wonder and woe from a time long past. "Accidentally" moving the DOW, fighting hockey goons at The Horse, dealing with the meltdown of the Dot.com bubble and so much more. You'll laugh, you'll cry, you'll wonder how grown men ever did this as a profession? It's time for....Tales From the Trading Floor
Host: Mark Longo, The Options Insider Radio Network
Co-Host: Dan Passarelli, Market Taker Mentoring
In this episode, Mark and Dan discuss the current volatile markets. They also answer your questions about:
- First Options Trades
- Stories from the Trading Floor
- Exercising Call Options
- Trading Options Below $5
- Swimming Delta/Skew Delta
- Complex Options Trading W/O A Margin Account
- And Much More...
You asked for it! Nearly a decade later, you can now listen to the first episode of Options Boot Camp in a completely remastered format. Enjoy!
Options Bootcamp: Premiere Episode
- Host: Mark Longo, The Options Insider
- Co-Host: Dan Passarelli, Market Taker Mentoring
- Basic Training: Dan and Mark make the case for trading options, shattering myths and resetting expectations. The evolution of options: eliminating barriers to entry, increasing the flow of information, commissions. What is an option? The impact of timeframe on options. What are calls and puts? The leverage, safety, and risk management components to options. How options can be income-generating. Long call and long put examples.
Host: Mark Longo, The Options Insider Radio Network
Co-Host: Dan Passarelli, Market Taker Mentoring
In this episode, Mark and Dan discuss the current volatile markets. They also answer your questions about Nanos, put spreads, Reddit, volatility products, FOMO on options trading and much more...
Host: Mark Longo, The Options Insider Radio Network
Co-Host: Dan Passarelli, Market Taker Mentoring
In this episode, Mark and Dan take a deep dive into all-things cyrpto options including:
- An update on BITO
- Using longer-term ITM options on BITO
- Doing a bullish risk reversal to getting long BITO
- Favorite crypto broker for bitcoin options
- Where can you trade ETH options
- and much more.
Host: Mark Longo, The Options Insider Radio Network
Co-Host: Dan Passarelli, Market Taker Mentoring
In this episode, Mark and Dan answer your listener questions and discuss:
- More VXX Drama
- Cboe Nanos and broker fees
- Thoughts on VSTOXX
- What to focus on with delta and expiration
- And much more.
Host: Mark Longo, The Options Insider Radio Network
Co-Host: Dan Passarelli, Market Taker Mentoring
In this episode, Mark and Dan answer a listener question of what it means when volatility products go crazy. They discuss:
- Barclays recently suspending creation of new shares of VXX
- Credit Suisse stopped creating new shares in TVIX and later delisted it in 2012
- Volmageddon occurred in 2018 when VIX had a massive surge which impacted XIV and SVXY
- A new version of XIV was approved October 2021 but has yet to hit the market
- And much more.
Host: Mark Longo, The Options Insider Radio Network
Co-Host: Dan Passarelli, Market Taker Mentoring
In this episode, Mark and Dan take a deep dive into all-things volatility including:
- What is VXX?
- Why you shouldn't buy and hold VXX.
- Why would anyone buy VXX?
- What is UVXY?
- What would be a case for buying UVXY?
- and much more.
Host: Mark Longo, The Options Insider Radio Network
Co-Host: Dan Passarelli, Market Taker Mentoring
In this episode, Mark and Dan take a deep dive into all-things VIX and volatility including:
- What is VIX?
- Why is it called the Fear Gauge?
- Can you trade the VIX directly?
- VIX cash vs. VIX futures
- How the VIX futures work.
- How VIX options work.
- Contango vs Backwardation
- Is VIX a good hedge for your portfolio?
- Can VIX be manipulated?
- and much more.
Host: Mark Longo, The Options Insider Radio Network
Co-Host: Dan Passarelli, Market Taker Mentoring
In this episode, Mark and Dan answer your questions including:
- how to get started with options
- finding European exposure to the volatility space
- pro tips on trading energy names in these markets
- taxation rules for options trades
- magical put windfalls
- and much more.
Host: Mark Longo, The Options Insider Radio Network
Co-Host: Dan Passarelli, Market Taker Mentoring
In this episode, Mark and Dan take a deep dive into delta as probability. They also discuss covered calls on long equity/ETF positions, and much more.
Host: Mark Longo, The Options Insider Radio Network
Co-Host: Dan Passarelli, Market Taker Mentoring
In this episode, Mark and Dan discuss:
- The current volatile markets
- The impact on options traders of the SEC proposed rule changes to reduce risks in clearance and settlement of securities
- Tradable financial instruments on sports teams (ie. buying a straddle on super bowl score)
- No-multiplier options
- And much more...
Host: Mark Longo, The Options Insider Radio Network
Co-Host: Dan Passarelli, Market Taker Mentoring
In this episode, Mark and Dan discuss the current volatile markets. They also answer your questions about 10 year notes, gamma exposure, portfolio hedges, the Greeks, and much more...
Host: Mark Longo, The Options Insider Radio Network
Co-Host: Dan Passarelli, Market Taker Mentoring
In this episode, Mark and Dan discuss the current volatile markets. They also discuss gamma squeezes (what are they, when do they occur, are there certain names that are more susceptible to them, why are they important to understand). They also answer your questions regarding stock substitution in SPY, the most confusing options strategy, BITO options, and much more...
Host: Mark Longo, The Options Insider Radio Network
Co-Host: Dan Passarelli, Market Taker Mentoring
In this episode, Mark and Dan discuss the current volatile markets. They also answer your questions regarding buying puts, the meaning of long skew, crypto as a diversified asset to hedge risk, updates to the options book club, and much more...
Host: Mark Longo, The Options Insider Radio Network
Co-Host: Dan Passarelli, Market Taker Mentoring
In this episode, Mark and Dan discuss the current MEME stocks being traded right now. They also take a deep dive into earnings trading and earnings volatility. They answer a listener question regarding last week's episode on dividends, and much more...
Host: Mark Longo, The Options Insider Radio Network
Co-Host: Dan Passarelli, Market Taker Mentoring
In this episode, Mark and Dan discuss the current MEME stocks being traded right now. They also talk about options and dividends: a refresher on what they are, options and special dividends, should you early exercise, examples, watching out for other contract adjustments, and much more...
On this special first episode of 2022, Mark and Dan look at the top 10 episodes of Options Boot Camp in 2021. They also answer a listener question about whether a tender offer for a stock affects the options pricing model.
On this special New Year's episode, Mark and Dan answer your questions tackling everything from:
- When to us a spread vs. an outright option
- EOD option quotes
- Rolling your positions
- Selling a call against a long ITM call/stock substitution position
- Covered calls called away early
- Craziest trade in the meme stock 2.0 frenzy
- and much more...
On this episode, Mark and Dan do a year in review. They discuss the top five lessons learned in the options markets this year. They also talk about the market environment and what meme stocks are trading right now, and much more.
On this episode, Mark and Dan discuss where they think VIX will close at the end of the year. Dan looks at what meme stocks are trading right now and they continue the discussion on what options books every new trader should have on their shelf. Additionally, they answer your questions about Leaps, hedging, call options, butterflies, new options brokers, and much more.
On this episode, Mark and Dan continue the discussion on what options books every new trader should have on their shelf. Dan also looks at what meme stocks are trading right now. Additionally, they answer your questions about protective puts for long term buy and hold, why it's not worth it to exercise your options early, trading BITO, why you use the terms long or short premium when buying or selling options, and much more.
On this episode, Mark and Dan discuss what options books every new trader should have on their shelf. Dan also looks at what meme stocks are trading right now.
On this special Thanksgiving episode, Mark and Dan take on all comers - tackling everything from:
- Thanksgiving delights
- Their biggest trading regrets
- How the heck do options get listed anyway? Who chooses and what are the criteria?
- Where do these crazy options volume numbers come from?
- Book club invites
- and much more..
Happy Thanksgiving!
It's time to fight FOMO the smart way! On this episode, Mark and Dan break down the three most popular ways to express a bullish opinion in a stock - calls, verticals and butterflies. They also explore the best, and worst, ways to use these strategies along with some pro tips to help you fight FOMO without losing all of your money in the process.
In this episode, Mark and Dan discuss the current MEME stocks being traded right now. They also talk about normal volatility skew for calls, options strategies for sports betting, Nanos by Cboe, BITO, and much more.
In this episode, Mark and Dan discuss the current MEME stocks being traded right now. They also talk about the new Nanos by Cboe and they answer your questions about $BITO options and much more...
In this episode, Mark and Dan discuss the current market environment and the things to think about before trading the new ProShares bitcoin ETF.
In this episode, Mark and Dan discuss the current MEME stocks being traded right now, cash secured put writing, taxes , leaps contracts, leveraged ETFs, hedging and much more.
On this episode of Options Boot Camp, Mark and Dan break down the Top 5 Misperceptions of New Options Traders.
Bottom line....THIS IS NOT NORMAL!
On this episode, Mark and Dan answer your burning questions about:
- The most confusing options strategies
- How to trade options on metals ETFs like GLD and SLV
- The best way to trade "superflies"
- Pandemic volatility surprises
- and much more
In this episode, Mark and Dan discuss the current meme stocks being traded right now, the SEC charges against wash trades in meme stock options, misunderstood options strategies, tips on trading options on metals, trading butterflies, and much more.
In this episode, Mark and Dan discuss the current MEME stocks being traded right now, options assignment, calendar spreads, the Greeks, and much more.
In this episode, Mark and Dan discuss the current market environment. They also talk about options assignments, options expiration, gamma exposure, and much more.
In this episode, Mark and Dan discuss the current market environment. They also talk about the rise of weeklies (the history, what prompted them, examples, etc.) and much more.
In this episode, Mark and Dan discuss the current market environment. They also answer your questions about gamma pinning, meme stock trading, and much more.
HOST: Mark Longo, The Options Insider Media Group
CO-HOST: Dan Passarelli, Market Taker Mentoring
In this episode, Mark and Dan answer your questions about what is the main driver of this latest round of volatility, how expected move informs trading decisions, limit orders, why media reports options in notional terms, and much more.
In this episode, Mark answers your questions about ITM puts, how expected move informs your trading decisions, what the actual Options Playbook is, suggestions on becoming a better trader, and much more.
In this episode, Mark and Dan host an epic trader psychology spectacular with practical tips and tricks for how to deal with the psychological aspect of trading including what is the endowment effect; FOMO vs. FOGS; how rules and scaling can help you evolve your psychology and much more.
In this episode, Mark and Dan answer your questions about how to become a professional trader; if you can direct open interest; additional thoughts about Robinhood; and much more.
In this episode, Mark and Dan:
- Talk about skew (what is it, how is it measured, what is it used for, skew vs. term structure, how do you trade it using options, etc.)
- Discuss whether the skew index is a good measure of future tail risk in the S&P 500
- Look at a put credit spread strategy vs. an iron condor
- And much more
In this episode, Mark and Dan answer your questions about:
- AMC 145 calls
- Your feedback on the Robinhood scandal
- The best/worst brokers for new options traders
- Brokers using automation to approve options accounts
- Will the real Options Playbook please stand up?
- F-bomb Passarelli
- and much more...
In this episode, Mark and Dan:
- Discuss trading options during earnings season
- Look at earnings volatility
- Talk about the development of an earnings trading system
- Discuss trading Apple options during earnings
- Explain what happens to time decay during earnings week
- And much more
In this episode, Mark and Dan:
- Discuss why calendar spreads are so befuddling to so many
- Explain why portfolio margins are so dangerous to new traders
- Look into the recent Robinhood FINRA ruling and explain the violations
- And much more
In this episode, Mark and Dan:
- Discuss the hot stocks right now with MTM customers
- Unravel the mysteries of option margin on meme stocks
- Implement high net worth strategies for smaller retail accounts
- Talk about whether or not it is preferable to take off trades in pieces
- And much more
On this episode, Mark and Dan answer your deluge of questions about:
- Using Options Boot Camp to become a professional trader
- Making your first "real money" options trade
- The mysteries of selling ITM put spreads
- The dangers of selling zero DTE credit spreads
- Legging into positions vs. trading them outright
- What we're trading in MEME stocks right now
- And much more...
On this episode, Mark and Dan discuss how to avoid margin calls when trading meme stocks. Plus they answer your questions about meme stock put strategies, bullish Facebook strategies and more...
On this episode, Mark and Dan discuss:
- Trading options during the current wave of MEME stock madness
- The perils and pitfalls you may encounter when applying your Boot Camp knowledge to the world of crypto options
- Plus updates from the options front lines and much more...
Options Boot Camp listeners get a special sneak preview of the latest addition to the Options Insider Pro platform - the much-anticipated return of Options Oddities.
Interested in the latest crazy options activity in AMC, Ford, DLTR and much more? Listen to Options Oddities then check out www.TheOptionsInsider.com/shop.
In this episode, Mark and Dan revisit the dark side of theta:
- What is it?
- How does theta evolve over time and as you move across the options chain?
- Which trades/strategies benefit from theta?
- Which trades/strategies are hurt by theta?
- and more..
Mark and Dan also answer your questions about:
- Rolling covered calls
- Trading options on SPACs
- Laddering into short straddles
It's finally here! The first ever Options Insider Pro Q and A Session. This is where our Pro members have the chance to pick the brains of leading options and derivatives experts. We kicked things off with the "Oracle of New Hampshire" himself:
- Matt Amberson, Founder: Options Research and Technology Services.
Matt answers your questions about:
- The proper way to structure your options trades
- When to close/roll your covered calls
- The most effective, and cheapest, ways to protect your gains using options.
- How to incorporate skew data into your options trading.
- The best ways to trade options on MEME stocks.
- The optimal way to trade options on VIX.
- When to trade calendar spreads.
- Iron Condors vs. Iron Butterflies vs. Diagonals.
- And much more...
Want to participate in future Pro Q and A Sessions? Then check out www.TheOptionsInsider.com/shop today.
In this episode, Mark and Dan provide insight on gamma scalping and answer your (many) questions about covered calls.
In this episode, Mark and Dan provide basic training on when to close/roll your covered calls, and answer your questions about prop trading firms, options screening platforms and more...
OBC 134: Leverage, Diagonals and the Wrong Way To Start Trading Options
On this episode, Mark and Dan answer your questions about:
- Option leverage vs. Stock Leverage
- Diagonal vs. vertical put spread follow up
- The right vs. the wrong way to start trading options
- Selling covered calls to avoid margin calls
- and more...
Mark and Dan also field your Options Boot Camp reviews - both good, bad and...confusing?
In this episode, Mark and Dan revisit the covered call strategy:
- Pros/Cons
- Examples
- Potential Outcomes
- Collars, Covered Call Verticals, Covered Call with Put Kicker
- And Much More...
On this special mail call palooza, Mark and Dan answer your options questions from across the globe including:
- Applying traditional options strategies to crypto
- What to do when a short put spread goes against you?
- Why sell a covered call when you can sell a short put?
- Can a diagonal credit spread save your bacon when a stock moves against you?
- Dan prepares a haiku about love
- and much more...
On this special mail call palooza, Mark and Dan answer your options questions from across the globe including:
- Applying traditional options strategies to crypto
- What to do when a short put spread goes against you
- Why sell a covered call when you can sell a short put?
- Can a diagonal credit spread save your bacon when a stock moves against you?
- Dan prepares a haiku about love
- and much more...
In this episode, Mark and Dan discuss:
- How options volume shaped up in March
- Credit Spreads vs. Debit Spreads
- Cash-Settled Options
- If you can lose more than your investment in options
- and much more...
On this episode, Mark and Dan discuss:
- How many options positions should a new trader have
- What is the optimal starter position for new options traders
- Is short selling immoral
- Surprise results in our broker madness tournament
- Backlash against RobinHood
- Is payment for order flow bad for options traders
- and much more...
On this episode, Mark and Dan finally debunk the great "Debit Spread vs. Credit Spread" mystery. Does it really matter which strategy you use? You'll have to listen to find out.
Mark and Dan also discuss:
- Using P/E Ratios in your options trading
- Covered Calls in Rocket Companies ($RKT)
- Should we replace regular options with mini options?
- and more...
In this episode, Mark and Dan tackle all-things option delta including:
- What is option delta?
- What are the benefits of option delta?
- An example of option delta.
- Plus - your questions about mini options, deep ITM option spreads, credit vs. debit spreads and more.
Ask and you shall receive! On this episode, Mark and Dan tackle all-things mini options including:
- WTF are mini options anyway?
- Weren't they delisted a few years back? Why?
- Don't we already have mini options on futures?
- Would a fractional option be better than a mini option?
- How the heck would a fractional option work anyway?
- Plus - your questions about call volatility and portfolio margin.
So many questions! On this episode, Mark and Dan dive into your deluge of questions about:
- Cash-settled options
- Mini/Fractional options
- Surprise dividend adjustments
- Options strategies for hot stocks
- Amazing options visualizers
- and much more...
On this episode, Mark and Dan answer your questions about:
- Risk reversals vs. strangles
- How to combine The Greeks
- The origins of volatility skew
- The "proper" day to trade risk reversals
- and much more...
HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
CO-HOST: DAN PASSARELLI, MARKET TAKER MENTORING
- BASIC TRAINING SEGMENT: TO PUT OR NOT TO PUT
- WHAT IS A PUT
- WHAT HAPPENS AT EXPIRATION
- PROS/CONS TO PUT TRADES
- PUTS VS. STOP ORDERS
- HOW TO IMPROVE YOUR PUTS
- AND MUCH MORE
HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
CO-HOST: DAN PASSARELLI, MARKET TAKER MENTORING
TODAY WE ANSWER YOUR QUESTIONS ABOUT:
- ATOS MARCH CALLS
- HEDGING AND MARKET MAKING
- WHAT HAPPENS TO OPTIONS OVERNIGHT
- YOUR CONTINUED THOUGHTS ABOUT GME
- AND MUCH MORE
On this episode Mark and Dan answer your questions about:
- When does Theta REALLY come out of options prices?
- What happens to option premiums when it is delisted?
- Is this a good time for a stock replacement strategy?
- Audience poll results for 2021 outlook
- Our thoughts on the bitcoin options market
- Tesla vs. Bitcoin on the race to $1T market cap...
On this episode, Mark and Dan share their thoughts on the GameStop aftermath including how Dan's trade worked out, what his students having been saying about the situation, thoughts on how broker dealers handled the situation, thoughts on the attempts at a silver squeeze and much more.
This episode is brought to you by DEMAND DERIVATIVES. Learn more about their innovative new crowdfunding campaign at www.DemandDerivatives.com
HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
CO-HOST: DAN PASSARELLI, MARKET TAKER MENTORING
TODAY WE ANSWER YOUR QUESTIONS ABOUT:
- WHAT IS A SHORT SQUEEZE
- WHAT IS GOING ON WITH GME
- WHAT IS WALL STREET BETS
- WHAT IS A GAMMA SQUEEZE
- WHAT TRADING OPPORTUNITIES ARE THERE IN THIS ENVIRONMENT
- WHAT HAS BEEN THE BROKERS RESPONSE
- AND MUCH MORE
This episode is brought to you by DEMAND DERIVATIVES. Learn more about their innovative new crowdfunding campaign at www.DemandDerivatives.com
It's time to break down the most-popular, most-downloaded and most-streamed episodes of Options Boot Camp from the insane year that was 2020. Did your favorite make the list? You'll have to tune in to find out...
On this episode, Mark and Dan explore what options trading lessons they learned in 2020 that they can apply to 2021.
This episode is brought to you by DEMAND DERIVATIVES. Learn more about their innovative new crowdfunding campaign at www.DemandDerivatives.com.
On this episode, Mark and Dan answer your questions about:
- Gamma
- Dangers of After Hours Trading
- Earnings options trading
- TSLA Calls
- Leaving TSLA Money on the Table
- Longo For President and much more...
- HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
- CO-HOST: DAN PASSARELLI, MARKET TAKER MENTORING
MAIL CALL SEGMENT
TODAY WE ANSWER YOUR QUESTIONS ABOUT:
- STRADDLES
- THE MANDALORIAN
- VIX OPTIONS
- ABNB AND DASH
- BTC OPTIONS
- AND MORE
This episode is brought to you by DEMAND DERIVATIVES. Learn more about their innovative new crowdfunding campaign at www.DemandDerivatives.com
On this episode, Mark and Dan explore how options traders can take advantage of elevated volatility skew in popular names like Tesla, Apple and NIO.
This episode is brought to you by DEMAND DERIVATIVES. Learn more about their innovative new crowdfunding campaign at www.DemandDerivatives.com
On this episode Mark and Dan answer your questions about:
- When to close the legs of the Wheel trade
- Impact of Robin Hood options traders
- Options exchanges abandoning the education business
- Exactly how awesome IS The Mandalorian?
- And much more...
- HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
- CO-HOST: DAN PASSARELLI, MARKET TAKER MENTORING
OPTIONS DRILLS SEGMENT
- EXPLORING OPTIONS STRATEGIES TO TAKE ADVANTAGE OF "THE GREAT ROTATION"
MAIL CALL SEGMENT
- EXPLORING HOW CHICAGO BECAME THE OPTIONS MECCA
-
- HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
-
CO-HOST: DAN PASSARELLI, MARKET TAKER MENTORINGOPTIONS DRILLS SEGMENT
-
What strategy should you employ for your first options trade?MAIL CALL SEGMENTTODAY WE ANSWER YOUR QS ABOUT:
-
WHY YOU CAN'T GET FILLED ON YOUR OPTIONS TRADE
- THE MYSTERIES OF PUTS
- DAN'S CRAZY NEIGHBOR
- AND MUCH MORE...Happy Thanksgiving!
- HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
- CO-HOST: DAN PASSARELLI, MARKET TAKER MENTORING
BASIC TRAINING: SECOND ORDER GREEKS REVISITED
- WTF ARE SECOND ORDER GREEKS?
- WHAT ARE THE PRIMARY ONES?
- WHY DO WE NEED TO KNOW THIS?
- HOW USEFUL ARE THESE SECOND ORDER GREEKS?
MAIL CALL
- ANSWERING YOUR QUESTIONS ABOUT GAMMA, EARNINGS TRADES AND OTM TRADES.
The election is over...or is it? Either way Mark and Dan answer your questions about:
- Deep ITM Call Spreads
- After-Hours Options Trading
- VIX
- Post-election hedging
- Options and diversification
- Your quiz questions
- and more..
- HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
- CO-HOST: DAN PASSARELLI, MARKET TAKER MENTORING
BASIC TRAINING: TOP 5 THINGS TO KNOW/UNDERSTAND BEFORE TRADING OPTIONS
MARK’S LIST
- THE GREEKS
- SYNTHETICS/PUT CALL PARITY (AKA COV. CALL VS. SHORT PUT)
- EVENT RISK/SKEW (AKA - BUYING OPTIONS BEFORE EARNINGS)
- LONG PREMIUM IS RISKY AS WELL -DEATH BY 1000 CUTS
- HOW EXERCISE/ASSIGNMENT WORKS (AVOID TRAGIC CONSEQUENCES)
DAN’S LIST
- KNOW YOUR RISK PROFILE
- KNOW YOUR GREEKS
- KNOW YOUR BROKERAGE PLATFORM
- KNOW WHERE TO GET HELP
- HOW EXERCISE/ASSIGNMENT WORKS (AVOID TRAGIC CONSEQUENCES)
- HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
- CO-HOST: MIKE TOSAW, ST. CHARLES WEALTH MANAGEMENT
BASIC TRAINING: ROLLING SHORT PUTS
- EXPLORING WHEN TO ROLL YOUR SHORT PUTS
- PREFERRED METHODOLOGY TO ROLL SHORT PUTS
- USING SHORT PUTS VS SHORT SPREADS
MAIL CALL
- ANSWERING YOUR QUESTIONS ABOUT OPTIONS VOLUME VERSUS THE STOCK, RHO, ROBIN HOOD TRADERS, CHOOSING TO LEG OUT OF A SPREAD AND MORE.
MAIL CALL SEGMENT
TODAY WE ANSWER YOUR QS ABOUT:
- THE OPTIONS MARKET AND THE ELECTION
- COVERED CALLS
- ROBINHOOD TRADERS
- USING OPTIONS TO FORECAST DIVIDENDS ON OB
- CALLS VS. PUTS
- MARKET MAKER CAREER
- SELLING OPTIONS
- AND MUCH MORE
- HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
- CO-HOST: DAN PASSARELLI, MARKET TAKER MENTORING
BASIC TRAINING: ROLLING COVERED CALLS
- BASIC COVERED CALL EXAMPLE
- SHOULD YOU ROLL? WHAT IF YOU CAN’T ROLL
- WHAT IS THE PREFERRED ROLL CRITERIA
- HOW DOES TIME TO EXPIRATION IMPACT THE ROLL CRITERIA
MAIL CALL
- ANSWERING YOUR QUESTIONS ABOUT THE SOFTBANK WHALE, MINI OPTIONS AND DAN’S BOOKS
OPTIONS BOOT CAMP 106: OPTIONS ROCK GODS
- HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
- CO-HOST: DAN PASSARELLI, MARKET TAKER MENTORING
MAIL CALL SEGMENT
TODAY WE ANSWER YOUR QS ABOUT:
- THE VALUE OF COT REPORTS
- TIME SPREAD MT. VESUVIUS
- THE PRICING OF DEEP ITM OPTIONS
- FAMA-FRENCH MODELS & OPTIONS
- ANCHOR LEGS FOR RISK REVERSALS
- DAN'S ROCK CAREER
- AND MORE..
Options Boot Camp 105: Hedging Crazy Markets Revisited
Back by listener demand, Mark and Dan once again explore potential ways to hedge your portfolio during crazy markets. They explore the pandemic pros & cons of the following four strategies:
- Protective Puts
- Put Spreads
- Ratio Put Spreads
- Stock Substitution
Options Boot Camp 104: Selling vs. Buying Puts and Why You Can't Trade VIX
On this episode, Mark and Dan answer you questions about:
- What is the best skew shape for an options collar?]
- Are we better off selling puts rather than buying them?
- Why can't we update OI more often than once per day?
- Is there any way to trade the VIX directly rather than the futures?
- and much more...
Options Boot Camp 103: In-A-Gadda-Da-Vida of Iron Butterflies
On this episode, Mark and Dan explore the crazy (but definitely not cowardly) world of Iron Butterflies. What are they? Why would you want to trade them (or not trade them)? Plus they explore your $VIX outlook and answer your questions about Gamma Scalping.
OPTIONS BOOT CAMP 102: GAMMA SCALPING FOR BEGINNERS
HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
CO-HOST: DAN PASSARELLI, MARKET TAKER MENTORING
- WHAT THE HECK IS GAMMA SCALPING?
- LONG GAMMA = LONG THETA.
- WHY SHOULD I CARE ABOUT IT?
- WHEN SHOULD I USE IT?
- GAMMA SCALPING EXAMPLE
MAIL CALL
ANSWERING YOUR QUESTION ABOUT SKEW DATA AND EDUCATIONAL PROGRAMS.
OBC 101: WHY ARE PUTS SO $%S! EXPENSIVE!?!
- HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
- CO-HOST: DAN PASSARELLI, MARKET TAKER MENTORING
BASIC TRAINING: WHY ARE PUTS SO EXPENSIVE
- VOLATILITY COMPONENT OF AN OPTIONS PRICE
- INVESTMENT SKEW
- S&P 500 VOLATILITY SKEW
- COMMODITIES SKEW
MAIL CALL
- ANSWERING YOUR QUESTION ABOUT VOLUME CONTRACTS FOR VARIOUS STOCKS AND CHICAGO BEING THE HOME OF THE DERIVATIVES MARKET.
OPTIONS BOOT CAMP THE 100TH EPISODE SPECTACULAR
- HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
- CO-HOST: DAN PASSARELLI, MARKET TAKER MENTORING
MAIL CALL SEGMENT
TODAY WE ANSWER YOUR QUESTIONS ABOUT:
- FORECASTING MARKET DIRECTION
- COMPANY PR AND OPTIONS EXPIRATION
- IMPLIED VOLATILITY VS. ANALYZING THE NET COST OF THE TRADE
- DELTA AS A TRUE MATHEMATICAL PROBABILITY
- OPEN INTEREST IN THE OPTIONS MARKET
- HEDGING STRATEGIES
- BROKER REQUIREMENTS FOR OPTIONS TRADING
- FULL TIME OPTIONS TRADING
- AND MUCH MORE
OBC 99: Hedging Lofty Markets, Technicals vs. Fundamentals & More
- HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
- CO-HOST: RUSSELL RHOADS, EQ DERIVATIVES
On this episode, Mark and Russell answer your questions about:
- Hedging These Crazy Markets.
- Technical vs. Fundamental Analysis.
- Too Many Options Exchanges?
- Can VIX Revisit its 2017 Lows?
- Is Mark the Michael Jordan of Options Podcasting?
- and much more..
OBC 98: THE MYSTERIOUS VIX
- HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
- CO-HOST: RUSSELL RHOADS, EQ DERIVATIVES
TOPIC
- THE MYSTERIOUS VIX
-
- VIX HISTORY
- MODERN VIX: SWITCHED TO S&P500 (AKA SPX)
- RECENT TWEAKS
- COMMON MISPERCEPTION
- OTHER DURATIONS OF VIX
- COMMODITY FLAVORS OF VIX
MAIL CALL
- ANSWERING YOUR QUESTION ABOUT HEDGING STRATEGIES
OBC 97: YOUR Q'S ABOUT ASSIGNMENT RISK, FIRST OPTIONS TRADES AND MORE
- HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
- CO-HOST: DAN PASSARELLI, MARKET TAKER MENTORING
MAIL CALL SEGMENT
TODAY WE ANSWER YOUR QUESTIONS ABOUT:
- ASSIGNMENT RISK
- FIRST OPTIONS TRADES
- THE ROBIN HOOD PLATFORM
- AND MORE
OBC 96: TRADING OPTIONS AROUND EARNINGS
- HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
- CO-HOST: DAN PASSARELLI, MARKET TAKER MENTORING.
TOPIC
- PUT VOLATILITY TO WORK WHEN TRADING EARNINGS
- STRADDLES
- EXPECTED EARNINGS
- IMPLIED VOLATILITY AND OPTION VEGA
- TRADE OFFS
OBC 95: Your Q’s About Going Pro, Pandemic Options Trading and More
- HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
- CO-HOST: DAN PASSARELLI, MARKET TAKER MENTORING
MAIL CALL SEGMENT
TODAY WE ANSWER YOUR QUESTIONS ABOUT:
- EARLY EXERCISE RISK ON SHORT PUTS
- MAKING A LIVING TRADING OPTIONS FULL TIME
- BLACK SWAN PUT SPREADS
- IMPACT OF THE PANDEMIC ON THE OPTIONS MARKET
- AND MORE...
OBC 94: Let's Get Psychological
- HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
- CO-HOST: DAN PASSARELLI, MARKET TAKER MENTORING.
TOPICS:
TIPS TO HELP IMPROVE YOUR PSYCHOLOGICAL APPROACH TO TRADING
- "YOUR 1ST LOSS IS YOUR BEST LOSS"
- CONFIDENCE VS STATISTICS
- ATTITUDE IS EVERYTHING
- OVERCOMING FEAR AND GREED
- and much more...
OBC 93: YOUR Q’S ABOUT COVERED CALLS, WORTHLESS GREEKS AND THE DEATH OF TVIX
- HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
- CO-HOST: DAN PASSARELLI, MARKET TAKER MENTORING
- NASDAQ HOT SEAT: ERIC METZ, SPIDERROCK ADVISORS
MAIL CALL SEGMENT
TODAY WE ANSWER YOUR QUESTIONS ABOUT:
- COVERED CALLS
- GREEKS
- TVIX
OBC 92: THE TRAGIC CONSEQUENCES OF A LACK OF OPTIONS EDUCATION
- HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
- CO-HOST: DAN PASSARELLI, MARKET TAKER MENTORING
- NASDAQ HOT SEAT: ERIC METZ, SPIDERROCK ADVISORS
BASIC TRAINING SEGMENT - EARLY ASSIGNMENT TRAGEDY
- THOUGHTS ON EARLY ASSIGNMENT OF SHORT PUTS. RISKS/REWARDS/TIPS/TRICKS?
- EXAMPLE OF AN UNPLANNED DEBIT AFTER SELLING A PUT SPREAD
OBC 91: YOUR QUESTIONS ABOUT DIAGONALS, NEGATIVE RATES, USO AND MORE
- HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
- CO-HOST: DAN PASSARELLI, MARKET TAKER MENTORING
- NASDAQ HOT SEAT: BRIAN OVERBY, ALLY INVEST
MAIL CALL SEGMENT
Today we answer your Qs about:
- Diagonals / Strike Price Placement
- Option Prices and Negative Interest Rates
- The USO Adjustment
- and more..
OBC 90: Let’s Talk Iron Condors
- HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
- CO-HOST: DAN PASSARELLI, MARKET TAKER MENTORING
- NASDAQ HOT SEAT: BRIAN OVERBY, ALLY INVEST
BASIC TRAINING SEGMENT - IRON CONDORS
- WHAT IS AN IRON CONDOR?
- EXAMPLES OF IRON CONDORS.
- WHEN DO YOU WANT TO USE AN IRON CONDOR?
- WHEN DO YOU NOT WANT TO USE AN IRON CONDOR?
- WHAT ARE SOME MISTAKES THAT PEOPLE MAKE WHEN TRADING AN IRON CONDOR?
MAIL CALL
- WE ANSWER YOUR ADDITIONAL QUESTIONS ABOUT TIME SPREADS/CALENDAR SPREADS.
OBC 89: Mail Call - Even More Questions About Time Spreads
- HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
- CO-HOST: DAN PASSARELLI, MARKET TAKER MENTORING
- NASDAQ HOT SEAT: MATT AMBERSON, FOUNDER, ORATS
MAIL CALL
- QUESTION FROM SCOTT SOMER: IF YOU CHOOSE TO DIAGONALIZE YOUR TIME (CALENDAR SPREAD) DO YOU PREFER TO MOVE ONE OPTION TO CREATE "CREDIT SPREAD DIAGONAL" OR "DEBIT SPREAD DIAGONAL?"
- QUESTION FROM INDELIA: WHAT IS THE RIGHT ENVIRONMENT FOR A TIME SPREAD?
- QUESTION FROM B6: I’VE MOSTLY HEARD IT SAID THAT THE MOST YOU CAN LOSE ON A TIME SPREAD IS THE AMOUNT YOU PAY FOR IT. BUT SINCE YOU’RE SHORT MORE GAMMA THAN YOU ARE LONG CAN’T YOU POTENTIALLY GET HIT IN AN EXTREME MARKET DOWNTURN WHERE YOU ARE LOSING MORE ON FRONT CONTRACT THAN MAKING ON SECOND CONTRACT.
- QUESTION FROM CARMELA: WE’RE ALL LIVING IN A POST-WTI WORLD RIGHT NOW. DO YOU THINK WE’LL SEE MORE COMMODITY PRODUCTS TRADE NEGATIVE IN THE NEAR FUTURE? IF SO, DOES THAT CHANGE HOW WE THINK ABOUT RISK FOR SUPPOSEDLY “LIMITED RISK” TRADES LIKE TIME SPREADS?
OBC 88: Time Spread Mt. Vesuvius
- HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
- CO-HOST: DAN PASSARELLI, MARKET TAKER MENTORING
- NASDAQ HOT SEAT: MATT AMBERSON, FOUNDER, ORATS
BASIC TRAINING SEGMENT - TIME SPREADS
- WHAT IS A TIME SPREAD/CALENDAR SPREAD?
- EXAMPLES OF TIME SPREADS
- WHY TRADE TIME SPREADS?
- WHAT IS THE OPTIMAL SCENARIO FOR A TIME SPREAD?
- WHAT IS A DIAGONAL?
- EXAMPLES OF A DIAGONAL
MAIL CALL
WE ANSWER YOUR QUESTIONS ABOUT TIME SPREADS/CALENDAR SPREADS.
OBC 87: Your Qs About Time Spreads, Closing Calls and More
- HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
- CO-HOST: DAN PASSARELLI, MARKET TAKER MENTORING.
- NASDAQ HOT SEAT: LUKE RAHBARI, EQUITY ARMOR INVESTMENTS
MAIL CALL SEGMENT
Today we answer your Qs about:
- Closing long calls
- When to trade time spreads
- Weekly gamma vs. vega - round 2
- and more..
OBC 86: Beware of Box Spreads
-
HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
-
CO-HOST: DAN PASSARELLI, MARKET TAKER MENTORING
- NASDAQ HOT SEAT: LUKE RAHBARI, CEO, EQUITY ARMOR INVESTMENTS
BASIC TRAINING SEGMENT - BOX SPREADS
- WHAT IS A BOX SPREAD?
- WHO USES THESE?
- WHAT IS THE USE CASE? IS THERE EVER A GOOD REASON FOR TRADERS TO USE THEM?
- WHY DO SOME BROKERS & TRADERS GET INTO TROUBLE WITH THESE SEEMINGLY SIMPLE SPREADS?
MAIL CALL
WE ANSWER ALL OF YOUR QUESTIONS ABOUT USO
OBC 85: Your Qs About Options Mistakes, Earnings Volatility and More
- HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
- NASDAQ HOT SEAT: RUSSELL RHOADS, EQ DERIVATIVES
MAIL CALL
- QUESTION FROM Daniel P Kuczero: What are your thoughts on financially engineering an options strategy to get consistent 8% returns? This is listed on Swan’s marketing - I wonder if it is pointed toward them???
- QUESTION FROM THEGRATE: Does anyone offer a pre-earnings straddle basket that you can buy to trade a large number of events at once?
- QUESTION FROM Stockpicker320: If the stock market was closed during the expiration date and I owned “In the money” Call options I would assume that there would be a mechanism in place and my broker, TD Ameritrade, would still allow me to execute them before the Expiration Date on their website or by calling them. At the Expiration Date “In the Money” options get exercised automatically by TD Ameritrade as long as they are in the money by 0.01. It could be very dangerous if the Call options were only in the money by a few cents because the stock price could gap down when the stock market finally opened which could result in a big loss if I had a lot of options which controlled many shares of a stock. If my Call options were only in the money by a few cents I would call TD Ameritrade before the expiration date and ask them “Do Not Exercise” the options. Unfortunately this can’t be done on their website and must be done by a phone call.
- RELATED QUESTION FROM Mike Wienick: If the markets are shut down due to The extraordinary circumstances and I have expiring in the money puts that I bought - what happens? Are the expiring options automatically exercised or do they just expire worthless because the market was shut down?
- RELATED QUESTION FROM NNJ66: What happens if the stock is halted or exchanges are shut down when I own puts?
- COMMENT FROM Michael Pledgure: Lets see if the S&P 500 will break to new highs and continue this time?
- COMMENT FROM Malibu Invest: Two words; long tankers. RE: MASSIVE SELLOFF IN CRUDE OIL
- QUESTION FROM JAY JONES: I generally trade for credit; either vertical spreads or iron condors. My question for you today is: what is the benefit to trading a pure call or put condor, vs an iron condor? The risk/reward profiles at expiration are identical, but it seems like theta decay doesn't help the call condor or the put condor as much as it helps the iron condor. Can you give an example or discuss when the call condor or the put condor makes more sense than the iron condor? Thanks so much, and keep up the great work!
OBC 84: CRUDE OIL MYTHBUSTING, RATIO PUT SPREADS AND MORE
- HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
- CO-HOST: DAN PASSARELLI, MARKET TAKER MENTORING.
- NASDAQ HOT SEAT: RUSSELL RHOADS, EQ DERIVATIVES
TOPICS:
THOUGHTS ON THE INSANITY IN THE CRUDE OIL MARKET?
SHORT PUTS/PUT SPREADS VS. RATIO PUT SPREADS
MAIL CALL
QUESTION FROM BUCKEYE: WHAT IS THE ONE MISTAKE THAT YOU SEE THE MOST OFTEN WITH NEW OPTIONS TRADERS?
OBC 83: Pandemic Mail Call Palooza
- HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
- CO-HOST: DAN PASSARELLI, MARKET TAKER MENTORING.
- NASDAQ HOT SEAT: TONY ZHANG, OPTIONSPLAY
MAIL CALL
- QUESTION FROM ELLE76: WHAT MATTERS MORE WHEN TRADING WEEKLY OPTIONS - GAMMA OR VEGA?
- QUESTION FROM DRAKE: I'M CONFUSED. WHAT IS THE DIFF BTWN NDX AND NDXP?
- QUESTION FROM THOM: THANK YOU FOR YOUR GREAT OPTIONS BOOT CAMP PROGRAM. I’VE BEEN DEVOURING ALL THE EPISODES. I REALLY WANT TO TRADE OPTIONS NOW BUT I’M SCARED BY THESE MARKETS. I WAS LOOKING AT SOME PUTS YESTERDAY AND THEY NEARLY $2 WIDE FOR A TWO-WEEK, 5% OTM PUT. I DIDN’T REALLY KNOW WHAT TO DO WITH THAT MARKET. TRADING ON EITHER THE BID OR THE OFFER LOOKED LIKE A SURE LOSER. DO YOU GUYS HAVE ANY TIPS FOR TRADING IN THESE ESPECIALLY VOLATILE, AND WIDE, MARKETS? THANKS AGAIN FOR THE SHOW AND THE WHOLE NETWORK. KEEPING ME SANE IN MY HOUSE RIGHT NOW.
- QUESTION FROM VANDANGO: IS IT TRUE THAT MOST PRO TRADERS SHORT VOLATILITY?
OBC 82: Talking Time Spreads, Short Puts and Micromarkets
- HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
- CO-HOST: DAN PASSARELLI, MARKET TAKER MENTORING.
- NASDAQ HOT SEAT: TONY ZHANG, OPTIONSPLAY
Mark, Tony and Dan discuss whether long straddles still work, the proper way to structure time spreads in this environment, short puts vs. credit call spreads, selling puts in USO and much more.
Options Boot Camp 81: Pandemic Special
You asked for it -you got it! Mark and Dan put the drill instructor hats back on for a special pandemic-themed episode.
Options Drills Segment
They start by breaking down their preferred options trades for this volatile environment.
Mail Call
Mark and Dan wade into the mail bag to answer your questions about theta decay, levered ETPs vs. options, the Schwab/TD merger and much more.
Options Boot Camp 80: Holiday Options Mythbusting HOST: Mark Longo, The Options Insider Media Group CO-HOST: Dan Passarelli, Market Taker Mentoring On this episode of Options Boot Camp, Mark and Dan discuss:
- Should you write ITM covered calls?
- Covered calls versus naked short puts?
- Busting the most common options myth.
-
And much more...
OBC 79: New Years Mail Call Palooza Part 2
On this special episode, Mark and Dan ring in the new year by answering your questions about:
- The impact of spy dividends on options traders
- Rules of thumb when buying options
- When to buy a call outright vs a spread
- and much more...
Brought to you by www.Tradier.com
OBC 78: New Years Mail Call Palooza
On this special episode, Mark and Dan ring in the new year by answering your questions about:
- Funky Time Spreads
- Crypto Options
- Credit Spreads
- Do Options Pros prefer to sell premium
- and much more...
Brought to you by: www.Tradier.com
OBC 77: Hunting for Income in A Low Rate Environment
- Host: Mark Longo, The Options Insider Media Group
- Co-Host: Dan Passarelli, Market Taker Mentoring
Basic Training Segment
Options Boot Camp is back! In this episode, Mark and Dan explore how to get aggressive with your income when rates are low. The topics discussed include:
- Covered Calls
- Short Puts/Put Spreads
- Collars
- Covered Combos/Strangles
- ITM vs. OTM Covered Calls
- and More
MAIL CALL
Question from Joe and Linda - I have been knee deep with you guys for the last 14 months and can’t Thank You enough for the wealth of information you provide. One of my favorite quotes: “ Your generosity is only exceeded by my gratitude.” I have a long commute to work in the morning and have managed to listen to all 240+ of the Options Playbook, all of the Bootcamp, 90% of the OIC stuff as well as in and out of the Options Advisor and Futures show. Also haven’t missed Options Block for the last few months.
I purchased Dan’s Trading Options Greeks book and was wondering if he had an audio version. Could easily listen to it on my morning commute.
You so much for all your help, looking forward to the future with you guys. Going to be successful enough to be able to travel thank you guys in person! Thanks Again!
Question from Rayman5839 - Hi! Is the option premium counted toward exercising an option when in the money?. New to options, thanks...So it would only be profitable if the intrinsic value heavily outweighs extrinsic?
Question from Thomas Weber - If I am short a deep in the money call in SPY (delta near 1), what are the odds I will be assigned before Friday expiration?
Question from Alto - Which do you think has a better chance of happening - no more earnings calls or after hours options trading? And which do you think would be more impactful for options traders? Do you have a preference?
Question from 6654P - Why are options on CBOE and CME GROUP viewed differently?
Question from Paul Vasquez - When is the “official” close as far as options expiration is concerned? I’ve had calls assigned and had stocks put to me when the strike was out of the money at market close but it moved in and out during after hours trading. Any light you can shed on how expirations work would be appreciated. Thanks Paul, Sacramento, CA
Question from LL6 - Why did mini options fail? Are they done for good?
Question from Neels - Why is the logo for this show blue?
Question from RadH0k - Is spread delta just diff of the deltas on the two options?
Question from JackTam - Is there another exchange educator out there other than Cboe institute?
Options Boot Camp 75: Bringing Education Back With A Vengeance
- HOST: Mark Longo, Founder and CEO - The Options Insider Media Group
- Co-Host: Dan Passarelli, Founder - Market Taker Mentoring.
Mark and Dan are bringing options education back with a vengeance! In this episode, they kick things off by looking back at a tumultuous 2018. Then they follow up with a super-sized Mail Call segment answering all of your pent-up questions about Apple, skew trades, options exchanges, options education, USO verticals and much more.
It's time to get back in peak options trading shape. It's time for Options Boot Camp!
Basic Training: The Return of Volatility!
- VIX is not dead.
- VIX jumped from 13.99 on 2/2 to 38.30 on 2/5, and 46.34 on 2/6.
- What are you thought on the recent resurgence of volatility in the marketplace?
- Do you think this is a temporary aberration or have we transitioned into a new volatility regime?
- What is the impact of higher volatility on options strategies? What is the impact of this change for options traders?
Mail Call: Options Flashpoll
The proposed third exchange from MIAX will raise the total number of U.S. Options Exchanges to 16. Is this a good thing for the options market? Is it the straw that finally breaks the camel's back? Or are you too busy getting great fills to care?
- 44% - More Exchanges the Better
- 22% - Please Make It Stop
- 34% - Don't Care: I get filled
Listener questions and comments:
- Question from Allan Tullman - There was a lot of research last year regarding selling put options to harvest risk premium. Now that volatility is back is this an ideal time to harvest premium via put selling or does the increased volatility increase the probability of getting whipsawed?
- Question from Scott Somer - For Jill Malandrino: When CBOE does their floor reports there is an open outcry din from the SPX, VIX areas. Are there areas on the Nasdaq PHLX floor that also have that type of din, and if so, what names are getting this din?
Today's guest hosts are Dan Passarelli from Market Taker Mentoring, and Dave Russell, Vice President of Content Strategy at TradeStation.
Basic Training: Options Education for Veterans
- Why is TradeStation pursuing veterans?
- What is TradeStation doing specifically for veterans?
- Which options strategies are most popular?
Mail Call: Options question of the week
Earnings season is upon us once again! It's time for #Tech to put its best foot forward. Which big #tech names are you looking to sling some #options on this week?
- Amazon ($AMZN)
- Microsoft ($MSFT)
- Alphabet ($GOOGL)
- Facebook ($FB)
Listener questions and comments:
- Question from B. Fowl - What is the most common options question that you guys get?
- Question from P. James Lamar - Can you guys recommend an options platform for an active option trader? I'll try to add a link to what I used to be able to do on my old platform but am no longer able to do. But I would like to find another platform that has single click entry and exit for options. If you know one please let me know. Thanks.
- Question from Charlie C. - What's the weirdest thing you've seen in the options market?
- Question from LTV$ - What is the cheapest way to buy an option?
- Question from Tim T. - You guys slammed buying straddles on your last show. Are they really that dangerous? Or is it more a question of people not knowing what they were getting into?
- Comment from Allen Van - My Favorite Greek - My options trading is mostly focused around theta. I really don't pay attention to the other Greeks. It's all about collecting the theta. Seems to be working so far. Am I nuts?
Basic Training: Expiration Mythbusting
- What is expiration? Why do options expire? What does Triple Witching mean? Quadruple Witching?
- How does expiration impact the Greeks? How has expiration changed with the advent of the weeklys?
- Myth: Is it true that options control the stock market on expiration Friday?
- What happens when you exercise an option? American vs. European exercise? Can you exercise options early? Should you? How does auto-exercise work?
Mail Call: Fall in for listener questions
- Question from Christina Rico - Will we ever have daily options?
- Question from Ian Nichol - Love the show. What do you guys (and lady) think of this VXX debacle with FINRA and Wells Fargo? Seems like a few of the folks at Wells Fargo should have been listening to this show.
- Question from TradeHer - How do we get more ladies into #options?
Basic Training: A Review of How to Protect Your Profits
- Easiest method: Buy a 2-3 month put ATM or slightly an OTM put. Protect just those gains.
- What do you do if you have a broad portfolio?
- Hedging Rule of Thumb. Expect to spend about 2% of your portfolio for effective 3-6 month protection.
- How do you reduce the cost of protection?
- Buy a spread instead of an outright put, set up a collar, or set up a collar with a kicker.
Mail Call: It's time for listener questions
- Question from Ariell - Why should I ever buy puts? I can use a stop order in the stock for free and then put that extra capital to work in my trading account. By my math using stops instead of puts can boost your account 5-10% per year. That's a lot of cheese.
- Question from S_Warz - Do you trade options through dark pools
- Question from Thankfulness - Do you have dark pool access?
- Comment from H. Schwartz - Who said option traders don't celebrate holidays!
- Question from L. Penguin - I have a question for the Options Bootcamp. I'm a new options trader and I want to buy a LEAP call because it looks like the stock is going to go to up in the next 12 months, but I don't want to commit yet. I also want to generate income while I hold that position. What are your thoughts on selling the call while I have the leap? Also, this stock has an attractive dividend that I'd like to capture. Is this even possible? Interested in your thoughts, thanks!...I was thinking about buying a deep in the money call for the LEAP, and then depending on where the stock is trading at the time, sell closer to the money.
In this episode, Mark, Dan Passarelli and Jill Malandrino take on listener questions.
Options Drills: Today's topic was inspired by this listener question:
Question from MarkLitwin: How do you lose money in options in the most effective way?
- Don't by ATM straddles
- Don't load up on far OTM options because they're cheap
- Don't trade earnings
- Be careful with trading weeklies
- Watch out when selling options going into weekends or holidays
Mail Call: Listeners take over
- 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 Darqane: Assigned on short SPX puts means getting long the underlying? But how does that work if it's cash settled?
- Question from Lesnod: How do you get out of the straddles? One side of a straddle is always a loss correct?
- Question from Bobster: Can you trade options outside of U.S. trading hours?
- Question from ejh4isu: Let's say you're short naked a bunch of puts and the trade goes against you, and you don't have the money to pony up? What can your broker do?
- Question from BULZEYE7: Are options worth it for day-traders? Or just for swing-traders?
Mark, Dan, and Jill were all in the Options Insider studio to record this session. Education, and hilarity, ensued.
Options Drills: What are options trading ideas that an active stock trader can use in their portfolio?
- Getting paid to take on risk, cash-secured put
- The wheel trade
- Stock replacement strategy; what about using LEAPS?
- Using a diagonal spread to generate income
Mail Call: Fall in for listener questions and comments
- Question from Tiim: Why isn't it standard or maybe required to let people close out shorts for free below $.10?
- Question from USA Patriot: What is ADV??
- Question from Richard D: Are there any trades that if you did not have to pay brokerage fees would be excellent types of trades? I recently have been given the opportunity to trade options and equities for a near zero trading costs for about a year. I had in the past found some multi-leg spreads or underlyings with a really low prices unworkable because the trading costs made the potential gains or expected value too low. Thank you for your time and for the great shows you consistently point out! Best, Richard
- Question from Ascentaa: What can happen to the current options being held of KITE which is acquired by GILD and is being delisted?
- Question from Yieldhawk: What is the biggest size one could buy in options? If one had a long position of $1B and want to hedge w $10 million worth is that ok?
- Question from Lonesome: Could you explain Theta and how it helps/hurts options traders? Should anyone ever buy OTM options?
- Question from Butcherboyz: What options trading strategy would you say is best suited to people with absolutely zero knowledge of options? Thanks.
Mail Call: Fall in while your drill instructors answer your questions.
- Comment from Andrew McNichol - Big fan of your podcast. I appreciate how you start at square one and then walk listeners through every element of options and options trading. Thanks.
- Question from Tim D. - How high do rates need to be before I need to worry about rho?
- Question from Kraken1975 - Which of the Greeks do you utilize the most and why?
- Question from Meatz - Would you describe successful options trading as primarily singles and doubles or more swing for the fences home runs?
- Question from LCB - This is a challenging time to sell options due to low volatility. So does it stand that the opposite is true? Is it a good time to buy options? Particularly protective puts?
- Question from Mary - What's the shortest expiry available for plain vanilla options?
- Question from Ejh4isu - What qualifications do I need to work in the industry as a professional, i.e. as a trader? Is that a career path I'd even want to consider?
- Question from Privateer - Permission to speak freely sirs! Hi guys, Love the show and the entertaining military themed education. I've recently been learning about an exciting strategy called writing call options with CFDs. The claim by the teacher is that CFDs can leverage the return on premium selling by ten times, and reduce your break even significantly. I'm very invested in how this could apply in selling both legs i.e. covered strangles or straddles. Can you discuss the downsides, upsides and hedging strategies used in this scenario,and how to mitigate risk especially on the put leg. Sirs yes sir!
- Question from Axel D. - Why does open interest only update once a day?
Your hosts for this episode are:
- Mark Longo, Founder, Options Insider Media Group
- Andrew Giovinazzi, Chief Education Officer, Option Pit
- Jill Malandrino, Global Markets Reporter, Nasdaq
Introduction Segment: What are Nasdaq's options education initiatives? Why are options and options education so important to Nasdaq going forward? Creating content for RIAs.
Options 101: Going back to the Basics
Basic Options Primer
- What are options?
- Basic options terms
- Why trade options instead of stocks?
- What are the Greeks?
- Why should traders care about volatility?
- Buying options versus selling options
- Start with paper trading
- Know where you are going to get out before you get in
Options Drills: What is a calendar? How do we set them up for earnings? Strike/Month selection? Should we carry them through the event? When do we take off?
Calendars vs. Diagonals?
Mail Call: Fall in recruits and get your questions asked.
With $VIX giving up the ghost - which products are you hoping will provide new sources of #Volatility for your #options trading?
- 33% - Crude Oil (WTI, etc)
- 20% - Metals ($GLD, $SLV, etc)
- 20% - FX (GBP/USD, etc)
- 27% - Indv. Equities-$TSLA, etc
VIX Limbo: Last Month 40+% of you said $VIX wouldn't break 9 in 2017. But recent events have us asking again: How low will $VIX get in 2017?
- Still Won't Break 9
- Won't Break 8.5
- Won't Break 8.0
- Lookout - 7 Handle in '17
Listner Questions and Comments: What is on your mind?
- Question from Lesnod - How do you get out of the straddles? One side of a straddle is always a loss correct?
- Question from Meatz - Would you describe successful options trading as primarily singles and doubles or more swing for the fences home runs?
- Question from Bulzeye7 - Are options worth it for day-traders? Or just for swing-traders?
- Question from Axel D - What does open interest only update once a day?
- Question from Mary - What is the shortest expiry available for plain vanilla options?
- Question from Lincan - My go to options strat is to sell covered puts on stocks that I want to buy then get paid to wait. If the stock comes my way I eventually trade out of it using a covered call. What do you think? Savvy or stupid?
- Question from Steve: With the VIX so low, I am not selling a lot of options anymore, because I am afraid that I will not collect enough premium. Am I thinking of this incorrectly?
Basic Training: Delta Revisited
- A basic overview of Delta
- What is it?
- How does it impact your trading?
- Inspired by a Market Trader Mentoring newsletter article Delta Can Still be Your Friend
Mail Call/Options Options Question of the week
With $TSLA threatening $315 how are you leaning in your Options trades this month? Would you rather:
- 18% - Buy 1-month $300 put
- 25% - Buy 1-month $330 call
- 25% - Sell 1-month $300 put
- 32% - Staying far away from it
Listener Questions and Comments:
- Question from Joshua Shealy: Thanks so much for all that you guys do! Sorry if this is a novice question. I know that Delta is not literally the % chance of expiring in the money, but more so the rate of change for a $1 movement in the underlying. I noticed today looking at VIX Calls that the strike closest to .5 Delta is the 20 strike, a long way from ATM. I usually associate near .50 Delta with being near ATM. Is this just a nuance of VIX, or am I missing something bigger?
- Qustion from Brian Fortin: Options Boot Camp Dan is fond of saying, why trade options naked when you can spread off the risk and make the same money by doing it twice? I feel the same way about carrying a short position into expiration? Why try to carry 6 short contracts into expiration to capture that last 5 cents, when you can just trade 7 contracts and do the right thing?
- Question from Gameday Dog: Aww man My vertical put spread has gone bad. I have +3 options at 61.5 and sold -3 at 62.5. Yesterday it gapped down to 50. I now have +200 shares of LULU in my account plus 3 put options at 61.5 and -1 put option at 62.5. I thought it was a $300 max risk spread. Do I have to do anything? Do I sell the shares? Everything expires in 7 days. Please help. Thanks. So, I learned about selling shares and back ratio spreads and even got an $19 credit.
- Question from Elio: Confused. How did that guy end up with only two of his short puts getting assigned to him? If he was short 3 shouldn’t all of them have been assigned?
- Question from JDog: I just got an options pitch that says that options buyers lose money seven out of 10 trades. Is that true?
- Question from Allen: Why would I trade options when 90% expire worthless?
- Question from AndersonIvesting: New to options. I use TD Ameritrade but currently I don't like it for options. I was looking at Charles Schwab. Any recommendations for an options newbie?
- Question from Sharkcake: I've been approved to trade options by my Brokerage but I have yet to execute my first trade. What trade do you recommend?
Basic Training: Today we are going into the depths of option settlement. A question that is often asked in Group Coaching is that of the various settlement issues.
Many option traders limit their universe of option trading to two broad categories:
- One group consists of individual equities and the similar group of exchange traded funds (ETFs).
- The other group is composed of a multitude of broad based index products.
Individual equities and ETFs trade until the close of market on the third Friday of each month for the monthly series contracts. These days there are more and more ETFs and equities that also have weekly settlements too. These contracts are of American type and as such can be exercised by the owner of the contracts for any reason whatsoever at any time until their expiration.
- What is automatic exercise?
- Equity settlement?
- Cash settled indexes?
- Determining settlement?
Mail Call: Listener questions and comments
- Question from Mike: Hello, Love the show. I am curious as to why one would ever use a collar instead of a bull put spread. Am I incorrect in thinking these strategies are identical with respect to risk/reward? Since the put spread will cost less to put on, it seems like the better trade. As an additional advantage, there is no need to tie up the capitol to hold the underlying. Thanks for your help.
- Question from Yukoner: Do you ever do spreads in LEAPS? Why and how? So I used to trade the LEAPS rather than buy the stock. Is that a good use case?
- Question from TradeCraft: Is there a correlation between high options OI and options price levels?
- Comment from Ian Felder: I started off in crude futures, then moved to VIX futures, now VIX options. Each time I trade a new market, I feel like I see more panoramic moves because I am less familiar with the underlying in the first few days. It sounds scary, but it is actually refreshing. I guess looking at options has changed the way I look at futures. Has something similar happened to you? Have options changed your outlook on other products?
Options 101: Our topic today was inspired by a listener question.
- Question from Mark Davis: Hello, I am a new listener to options bootcamp and am currently on Ep. 4. There was a mention of using covered calls to generate a "dividend." I am having trouble tracking down more information on this. Being still new to all of this I am hoping to get a clearer picture of how it works. How far out on expiration should I look and how do I figure the strike price? Thanks!
Mail Call: Even more listener questions and comments
- Question from Robert Kornacki: I would like to use strategy regarding naked puts. If the naked put is far out of money what strategy could I use to protect myself. Could I use some type of order in case it was getting close to naked put strike price. Thanks
- Question from Dmitry Shesterin: What happens to LEAPs for tickers that get delisted before expiration?
- Question from Fred: I read Natenberg options volatility and pricing twice now and I have also set up paper trading accounts. But I am stuck going forward in my options progression. I do not want to trade using the greeks formula. But I want to spec on crude futures intraday using options. What should I do? Should I make more SIM trades until I figure it out? Or am I just too ignorant to trade options?
- Question from Jack Rieger: Do you have any specific strategies near or on expiration to profit from theta decay?
- Question from Bobby: How long did it take you to become comfortable trading credit spreads? Also what is my max loss when trading a credit spread?
- Question from from Tor: Hello. I am (restarting) my options trading on a shoestring; any thoughts on mini-options? Thanks.
- Question from Fred (#2): Is it my imagination or do options traders trade more markets than futures traders do? Is that a good practice? Is it good to look for multiple markets when trading options? Should I expand my horizons?
Basic Training: Short Puts Revisited
- Want a complete overview of selling puts? Check out Options Boot Camp episode 4 from May 7, 2012.
- New study: "An Analysis of Index Option Writing with Monthly and Weekly Rollover," written by Oleg Bondarenko, professor of finance at the University of Illinois at Chicago, and sponsored by CBOE. It is.the first comprehensive study to examine strategy benchmark with traditional stock, bond indexes incorporating weeklys options.
- CBOE Russell study "Analyzing Russell 2000 Index Options-Based Benchmark Indexes Designed to Provide Enhanced Yields and Risk-Adjusted Returns." CBOE announced the release of a new study that examines six benchmark indexes that invest in Russell 2000 Index (RUT) options and compares their performances with those of traditional benchmark stock and bond indexes. This is the first comprehensive study that examines the performance of multiple options-strategy benchmark indexes that incorporate Russell 2000 Index options. Written by Mark Shore, an adjunct professor at DePaul University's Kellstadt Graduate School of Business, and sponsored by CBOE.
Mail Call: Listener questions and comments
- Question from QKT - If i sold a $1 strike put with a current trading price of $.50 and then the stock goes to $5-what happens and what is my risk? How do I look at expiration? Can my puts be exercised against me?
- Question from Nick S. -I am thinking of a cool new strategy that I haven't seen listed online before. It effectively involves buying an iron butterfly (one of Marks favorite strategies) and then selling an extra put on the downside leg. You would select your strike at a price where you are comfortable buying the stock should it drop. This has the obvious benefit of reducing your initial outlay for the position. However, unlike a naked short, put you have the added cushion of the long straddle to help protect you on the downside and lower your effective break-even on the downside.
- Question from AJ M. - I have a question for the drill instructors. I hope you guys can calm my frayed nerves over this DOL thing. What exactly is going on? Am I not going to be able to sell calls in my IRA anymore? Since the vast majority of my assets are in retirement accounts this would be a HUGE hit to my savings. Please tell me this is not the case. Is there anything I as a retail stock and options trader can do to help prevent this? What if I open an international trading account? Would that do the trick? Help - I need the drill instructors to talk me off the ledge.
Options Questions of the Week:
How do you prefer to trade options?
19% - Long premium
15% - Short premium
56% - I avoid earnings
10% - Other, explain below
How many U.S. options exchanges do we need?
5% - 14 is perfect!
29% - The more the merrier
62% - Make it stop!
4% - Other, explain below
Should options trade after hours?
53% - Heck Yes!
15% - Only in Major Names
15% - No, poor liquify
17% - No, other
- Question from Alfy - Is it possible to be a day trader using options, or do you gave to take a longer term view?
- Question from Alex - Insider Trading, What are your thoughts on Shorting 1Y 25 Delta Puts on LNKD midday today (LNKD is at 105 as I write this message). Puts are quite juicy right now with quite acceptable break even points. I am very interested in hearing your feedback. Cheers, Big Options Trading Podcast fan, Alex.
- Question from Michael - $15 put Twitter drops off the map; yet the premium still has been declining. Can you explain?
- Question from FuturesMD - Is there a directional options strategy that you'd suggest for someone who wants to play the 2016 election?
- Question from TraderSon - Can a trader make a decent living buying straight call and puts, or do you have to get crazy with the complex stuff like iron condors?
Basic Training: Theta. A review of Theta and its impact on income trading. New Study: An analysis of index option writing with monthly and weekly rollover - First comprehensive study to examine strategy benchmark with traditional stock, bond indexes incorporating weeklys options.
Mail Call: Listener questions and comments.
- Question from KDDiddy - I want to protect a stock position with puts at a strike 2% below market but there is not a strike there. I thought of dividing my purchase between two different strikes to get an average of 2% but I do not want all the guys to call me stupid. Mom always said I was a genius but it is hard to feel like one when buying something called a Put Stupid. What should I do instead? Regards, Mr. Smart
- Question from LATom - Can the drill squad explain covered strangles vs. covered calls? What is the difference?
Basic Trading: Second Order Greeks
- Question from Brian F. - My question is for Dan. I listened to the Boot Camp shows, and recently had a question about gamma. Imagine my surprise when I learned there are other secondary greeks and even tertiary greeks. What this? Are you holding some greeks up your sleeve Mr. Black hat? So my question is what are these greeks, but more importantly, who uses them and why? Does a retail mope like me need to know about these greeks?
- Question from Charlie C. - Do second order greeks have any relevance for retail traders?
Mail Call: Listener questions and comments
- Question from AV56 - When is a good time to start trading options - is there any certain time of the week or year that options traders are focused on?
- Question from 777: How do you adjust your options trading for cheap stocks below $10
- Comment from Brian F. - I went through the Options Bootcamp shows twice, and read a few books, and now have the bug for options. Have you perused the options videos on Youtube? Is it me, or are most of these people idiots? Thanks for the education on options, I now have a way to screen the real trading educators from the BS artists.
- Question from Max S. -I have a lot of AAPL in my IRA but I am worried about the downside potential going forward. I do not want to liquidate that position for a variety of reasons. I have some free capital in my trading account with TD. Does it make sense to potentially pick up a few AAPL puts in that account and use them as a hedge against the position in my IRA account? If I switch that trading account from TD to my IRA custodian will the firm treat those as offsetting positions? Thx for the show.
- Question from TJD - What os the story on using options in my IRA? Is it still legal for 2016?
- Comment from Matt L. - Huge fan of your shows, I have been binge re-listening to options bootcamp as I prepare for a new year of options trading, thanks!
Register today for Dan's webinar, 7 Most Important Trading Tips for 2016.
Options 101: Today we are joined by Dan Cook from Nadex. He walks us through the following:
- What is a binary option?
- How does the pricing work vs. standard options pricing?
- How do the ticks work?
- Is there a multiplier?
- Does the price represent the pure probability of an option expiring in-the-money?
- How does expiration work?
- What about the final minutes around expiration?
- What is the farthest out you can trade a binary on Nadex?
- The Greeks: Binaries vs. Standard options
- Which underlyings offer binaries?
- How can you trade binaries?
- What is a typical binary use case?
Mail Call: Get your questions answered by the team.
- Question from Jeb16 - I have seen a number of sports books online offering products that appear to be sports derivatives. Is it possible to trade actual products based on sports outcomes or other event-type derivatives in a legal exchange-traded form in the U.S.?
- Question from Amelia G. - Do you notice anything different in the options trading in higher volume products vs. lower volume products?
Mail Call: The drill instructors will take your questions now.
- Question from TennisGr8t - Can you give examples of managing positions using Greeks and is it a good strategy? Your show is awesome.
- Question from Pedro Indio - Discovered podcast within the last week and I am up to episode 8. I understand how overall market and industry direction might influence a stock direction. Is there something similar, regarding volatility that can be observed, where an overall sentiment might influence or work with an option's implied volatility? As a new recruit, wonderful educational basic training, SIR!
- Question from TopStep - Why would we use options in lieu of futures or other underlyings?
- Question from Steamboat Willie: What would you say is the best buy and hold strategy using options? I am interested in using some options in my retirement account but I do not have the time to manage them on a daily basis. I would like to put something on and only check on it every few weeks or months. I am mostly interested in large cap stocks although I am not averse to dipping my toes into alternative assets such as oil.
- Question from Beansie - Is there such a thing as a commitment of traders report for options? Something that shows bullish and bearish positions in the marketplace?
- Question from 999 - How do you spec on the market falling out of bed using options?
Options Bootcamp 56: Options Trade Tags Demystified
Basic Training: Today’s guest is Andrew Giovinazzi, of Option Pit, Option Block, and Options Oddities fame.
Mark, Dan and Andrew discuss options trade tags, including:
- Regular
- Spread
- Block Trade
- Inter-market Sweep
- Combo
- Cancel
- SoldLast
- Price Variation
- Buy Write
Mail Call: Listener questions and comments
- Question from Vegan - What oil products do airlines use to hedge their crude exposure?
- Question from Alan - Why is rolling a position so prominent? Is that not just averaging into a losing trade?
- Question from Angus - Maybe this is a basic question, but where do the names call and put come from? What about straddle and strangle?
Options Bootcamp 55: Going Naked in IRAs
Basic Training: Using Options in an IRA Account. Can you trade options in a retirement account? What are the limitations? What strategies can you utilize? What are the benefits of writing covered straddle vs calls? What is a stock replacement strategy? When should someone consider this strategy? Using options as an investment tool. What are any other investment strategy?
Mail Call: Listener questions and comments
- Question from Hector - Can I still trade mini options or are they no longer available?
- Question from Neil Cerone - What are the most common mistakes you see from "stock guys" who try to become "options guys?"
- Question from Steve: First off, I love ALL the shows. They fill my daily commute with wit AND wisdom. Thanks! Also, better late than never, it was great meeting you all at Benny’s Chophouse back in Sept. I am one of the Lobster and Meatballs trainees (thanks to your shows). I had the pleasure of sitting right next to you and across from Uncle Mike as we devoured steaks on The Greasy Meatballs tab. That would be Extra pleasure as Sebastian was paying for them! However, I gotta tell you that you blew it big time the other day when trying to describe why a Leap Call Diagonal is called the "Fig Leaf". Brian named it the "Fig Leaf" because you are "kinda covered but not exactly" due to the curves in the profit graph. I think that makes perfect sense and is pretty funny to boot. Finally, on a side note I would love to hear Uncle Mike explain what is and what is not considered holding in the NFL. It boggles my mind to see play after play of inconsistent enforcement. I understand if that’s out of scope, but what the hell I thought I would ask anyways. It is not too often you meet a Pro Lineman. Best regards - Steve aka "Hawkeye".
Mail Call: Listener questions and comments
- Comment from Max_p24 - One of the best podcast for option trading. They have amazing Bootcamp for option beginners.
- Question from Brian Collamer - Back in October I sent this question and I see you ran with it in a couple of other shows: “You mentioned that when selling options the fastest theta decay occurs in the 45-30 day range. I thought that was only true for ATM options? Do OTM options decay the fastest at 60-70 days and then kind of flatten out?” In each show you had asked where I had seen/heard this. LiveVol blog and forum. Thanks for the great content! PS: Futures Roundtable needs to be twice a month IMHO.
- Question from Imbroglio - If I exercise a call option what happens - do I just hit a button and the stock hits my account? Or does it take some time? When do I actually get the stock? If I want to collect a dividend do I need to exercise a few days early in order to get the stock in time to collect the dividend?
- Question from Angry Bunny - What the hell is a front spread? How does it differ from a back spread? Who the hell comes up with these names? They seem to make no sense.
- Question from Neal Tompkins - How do I know when an option is going to be less liquid? What are some good suggestions for dealing with less liquid options?
- Question from Jason Dague - I am long AAPL from about $99, and have a protective put on right now at $105 for July. When do you know whether to roll your put up? I am obviously down on the put by ~%70% from where I bought it in November.
- Question from Jay - If the market is really falling out of bed what are some good strategies to take advantage of that movement while also minimizing option decay?
- Question from Matt Dilks - Hi, I have just listened to Mark on Topstep trader, and missed the questions. But could you recommend which company/broker to get a sim/demo account to get to grips with trading options? Any advice would be greatly appreciated.
- Question from John D. - Hi, Love your show. You guys do a great job. Keep up the good work. My question...If I am looking at a pair trade (e.g. long Facebook, short Twitter), obviously I can do it by buying/shorting the stocks. I was trying to figure out if there is any way to effective do the same thing with options what the advantages might be, if any. I thought of doing a synthetic long/short, but did not see any advantage since I will be naked short an option for both names... but maybe margin treatment is different? Long call on one and log put on the other does not seem to make sense since I am pretty much guaranteed to lose the premium on both those positions. Is there another or better way to structure this type of trade using options? Thanks.
Options 101: Income Trade Adjustments
- An overview of income trades: Covered call, short put, short straddle, etc.
- What do we mean by adjustments? When to or not to adjust?
- Previous episodes that will be helpful: Options Bootcamp 41: Advanced Adjustments & Options Bootcamp 40: Trade Adjustments.
- Basic adjustments, partial adjustments and adjusting into spreads.
Mail Call: Listener questions and comments
- Comment from Dmitry Shesterin - @Options There is no V in the Greek alphabet, so how come Vega is considered a "Greek"? Who started this madness?
- Question from Brian Collamer - Do OTM options decay the fastest at 60-70 days and then kind of flatten out?? Great show, wish it was longer! Thanks, Brian
- Question from Charles Patterson - Is it accurate to describe delta as the probability of an option expiring in the money?
- Question from Rohan - Do you think it is viable for an active retail trader to become a professional retail trader using primarily the freely available tools from OX and other retail brokers? How viable is that in the current environment? Would I always be at a disadvantage from the pros picking me off? Is this just a pipe dream? How much would you say the average pro trader needs to make to be viable? Thanks again for all of the great programs you guys have put out for free.
- Question from AVG - I heard Dan Passarelli talking about Goldman telling people it's not worth it to sell S&P puts anymore. Do you guys agree with that sentiment?
Basic Training: 2014 Year-in-Review/2015 Preview
- What option strategies worked in 2014: put credit spreads, IV overpriced throughout the year, "Wheel of fun."
- Things to learn from 2014 - Do not get married to a single strategy.
- Misperceptions of 2014 - VOL/VIX was cheap. Despite "low volatility" options volume was still very strong in 2014. Tempting to believe that OTM call buyer did well in this extended market.
- Fed tapering - When is it likely to happen? What is likely to happen in the market when the Fed tapers?
- Things to keep in mind for 2015 - It might be time for a smart hedge. The return of Rho. Volatility has a volatility. Exchange fragmentation will continue. Expand your horizons.
Basic Training: Futures Options vs. Equity Options
We've talked about how to use options to mitigate your portfolio risk, but many traders also rely on commodities diversification as a way to mitigate portfolio risk.
Futures options strategies: All of the options strategies we've discussed on this program in the past are applicable to futures options as well with a few exceptions
Covered call & protective puts both require underlying futures positions - something most traders prefer to avoid.
Most traders looking for diversification typically want bullish exposure to the underlying. Some great options strategies for this include:
- Stock/futures replacement strategy
- Vertical call spread
- Spreads with wings
Futures are useful for traders who want to establish sizable positions with a minimum of outlay
Options on futures can be useful for traders and asset managers who want exposure to alternative asset classes but can't or won't trade futures. You'll need a futures account to trade futures options - but if you use risk mitigated strategies such as spreads and don't get net short units and close out positions near expiration you don’t have to worry about dealing with the underlying.
Mail Call: Listener questions and comments
- Question from Jim Horn: Hey boot campers! I keep hearing about a spread called a onebytwo. What the heck is that? Am I even saying it right? Great show. Thanks for educating poor slobs like me.
- Question from Tom Evans, St. Louis, MO: What does more volume futures or options? Also does one do more electronically than the other? If I'm looking to dive into one am I better off going with the futures or the options? Lastly can you clarify the difference between CBOE and CME and CBOT? They all sound the same to me.
- Question from Anon: On several of your programs you mention that it is important to understand the VIX cash level at a given SPX level. Can you please explain this further? As an example, what are the implications of a 12 VIX at 1800 vs. a 9 VIX at 1800? Likewise, how does a 15 VIX at 1800 compare?
Mail Call: This episode is dedicated to our listeners.
- Question from Neil Filasco - What sets do you recommend to hedge my retirement accounts, in clouding my defined contribution plans? The pickings in these accounts are relatively slim and there are no options to speak of. As one of the newly enlightened options masses, I thank you for bringing me into the fold.
- Question from Chandra Bajpai - Hey Mark, I love the Radio show...I find myself wanting the next show because I something new every episode. My question is: How should a trader handle stop losses on a naked call/put and/or a vertical spread. When should you call it quits? IBD mentions 8% for stocks, but what is the level for options. Thanks.
- Question from Hedger - I am a bit flummoxed when it comes to spreads. I listen to a show like this, that tells me to use spreads. I read a few articles about spreads, and I think I have the gist of it. Lets say ABB is trading for $50, if its going to $55, I can buy the 50-55 spread for $1, if the underlying moves to $55, that spread should be worth the maximum profit of $5. However, in the real world, my experience has been much different. In the real world, that spread would be trading around $2.50 or $3 forever! If I hold the spread, to expiration and all other things hold constant, I "may" get my five bucks, but thats hardly a given. I goes I am asking - What give with spreads?
- Question from ToothFish - Hey Mark and the Black Hat One. Loving the Boot Camp show. Why is it back to once a month? Should be daily! Anyway I have hear you guys bicker back and forth on dark side vs light side trading, but I don't think you have ever actually committed to one or the other. So gun to your head. Which way are you going - premium selling or premium buying?
- Question from Ing86 - Cool show. Learning a lot from all the options talk about XYZ and Apple. But what are some of the crazier things I can trade with options? Can I trade options on a big hollywood premiere for instance? I would have loved to be long calls on the Ninja Turtles or Guardians of the Galaxy. What about sporting events or elections? I would think this would be fertile trading ground for these products. Can I do something like this or is this too outlandish?
- Question from Chilly Palmer - Hey Drill Squad. Lets say I bought calls on Firm A, and then Firm B buts them out (something I am dealing with now). What happens to my calls on Firm A? That firm is doing away and the stock will no longer trade. Will my calls be automatically exercised for me on the day the merger is put through? Should I just sell them now rather than wait for the issue to be settled
- Question from Civas - What is the best way to handle a ratio vertical spread that has moved to my short strike? Close it out as soon as it hits the short strike, even though that means buying back two options on the short strike for every one I sell?Play the wait and see game to see if the underlying retreats and those short options go out worthless? Or add a long premium third leg to my trade to cap my risk - essentially legging into a short iron butterfly? I know Mark is partial to those. Enjoying the app. Thanks for all the shows and the mad knowledge.
Basic Training: Covered Strangles/Covered Combo
- What is it? Long stock, covered call, short put. Why do it? Collect more income than a standard covered call or short put. Why not to do it? Increased margin requirement, you will increase your stock position to the downside.
-
Example: XYZ trading at $50.
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Option 1 - Sell covered front month 55 strike call for $1 - collect 2% income.
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Option 2 - Sell both front month 55 call and 45 put for $1 each - collect $2 or 4% income. Rinse and repeat.
Note: Call and put should only be sold on strikes where you are comfortable buying/selling the stock.
Listener Mail: Listener questions and comments
- Question from Tony - Mark, love boot camp. I was lucky enough to have a fairly significant weekly put spread position in DIA this week (long puts at 166-167 and short at 161-162.5). I was making good money on Wednesday and ran into a problem. The bid ask spread on my long puts were so wide, I could not close out, roll or adjust the trade. I thought about buying futures contracts to hedge my delta risk and suck out the theta. Is there any other strategy to adjust or hedge a successful trade without getting haircut on the executions? Should I just calculate the extrinsic value add a spread and put in a limit order for the long leg? Is it always harder to close out a spread trade in a volatile market… i.e. if I want to close a spread trade does one person have to want to enter the same trade? Or can the trade go to two counter parties?
- Question from Mukund Ambarge - Hi Team, I had question on theta decay. I understand that delta is in constant flux with every tick move in stock, the delta / gamma changes. IV is in constant flux with buying and selling of options and volume etc. So vega changes with option transactions. But theta decay is the only one which is always in a steady pace i.e. it’s not like it will decay quickly today and slowly tomorrow. The question is when the theta decay is really adjusted in the prices of options. Do the theta decay get adjusted at every tick move? Or every hour? If it is adjusted daily. Then when is the theta decay taken out of options. Early morning before start of trading? Or late in the day like last few minutes that whole days theta is taken out? Also I do not know when is weekend theta taken out of prices? Friday early morning or Friday ending or middle of the day? Basically when does market maker run the prices with the model and set the prices? Only once before trading starts or does he keep adjusting every minute/hour/tick based on demand/supply?
Mail Call: Your questions directed this episode.
Question from Jason Kruse: Is there a Bootcamp episode that discusses OI and how it can affect expiration moves? I hear people talk about max pain and pinning like it’s a conspiracy. Would love to hear real info about how it works.
Open Interest
- What is it?
- Why is it important?
- Why is it not important?
Pin Risk
- What is it?
- How prevalent is it?
- When should you be concerned?
- Is there really a conspiracy?
Question from Allen Manning:Hello everyone, I just started listening to the Options Bootcamp podcast, and I'm really enjoying it! I have a question about a strategy described in episode 20: Options in Lieu of Stocks. As a covered call alternative, I was interested in possibly buying a LEAPS with a 1 or 2 year expiration and selling monthly calls against it. When I looked up a few stocks and ran some preliminary numbers, I noticed that the cost to purchase a deep in the money LEAPS (about 80 Delta) option was usually higher than the total money I would make selling monthly calls for the duration of the LEAPS. What I did to get these rough numbers was to take the money earned from selling the initial 1-month call (after commission cost) and multiplying it by 12 or 24. I'm assuming one or more of these possibilities:
- The method I used to get these figures is wrong, even as a rough estimate.
- This strategy will only work with certain stocks/underlying that have optimal Greek numbers.
- This method only works when assuming the underlying LEAP also appreciates in value to offset its own cost.
- Commission costs make this strategy less successful (I have a TD Ameritrade account)
Any information you can provide about this strategy is greatly appreciated. Thank you, and keep up the good work on a great program!
Question from Ethan Kamen: My question may be a little basic for the esteemed Bootcamp drill instructors, but I would like to know about back spreads. It seems like the majority of the information online is devoted to ratio spreads. Is there a reason for this? Are back spreads not popular? Do you use them? If so, what scenarios are suitable for back spreads? Thanks for this show. I look forward to each new episode.
Back Spreads
- What are they?
- What is the use case for them?
- When shouldn't you use them?
Back spreads vs ratio spreads
- What is the difference?
- When should you use each?
- Are ratio spreads more common/popular than back spreads?
Question from Ilythian: What is the ideal time horizon for trading options? My typical stock trade lifespan is 3-6 months? I have heard many people describe options as short-term investments. Is my time horizon too long to be trading options?
Basic Training: How to protect your profits.
- Easiest method: 1st buy a 2-3- month put ATM or slightly OTM put.
- Purchase an ATM put spread with the short leg at your break-even point. Easiest to do in a single stock or underlying.
- What to do if you have a broad equity portfolio? Its a little more complicated. Determine the effective beta of your portfolio an how many effective shares of that index you own.
- Rule of thumb - Expect to spend about 2% of your portfolio for effective 3-6 month protectionHow to reduce the cost of protection. Buy a spread instead of an outright put. Set up a collar. Set up a collar with a kicker.
Mail Call: Listener Questions and Comments
- Question from Big Charlie - Hey guys. What is your take on the OH/Monster merger? What does this mean for the options landscape going forward?
- Question from Brian Collamer - Hi Mark, If I have a short call in $SPY on the ex-dividend date that is OTM, I will not owe the dividend correct? Thanks, Brian
- Comment from Justin - Hi Mark, Just heard my question on the podcast! Awesome! Thanks so much. Keep doing what you do. And I will keep listening. -Jay
- Question from Niles F. - How much of my portfolio should I allocate to defensive strategies such as protective puts? Thank you for answering my question and for producing this fine program.
- Story and Question from KAISERDOG76: Funny story- I was trading on my IPad. It is the Summer 2013. CNBC is on but I am not paying attention to it. I had some cash to play with and there was some electricity in the air that day. I settled in on Apple options. This was the first and last time I used mini options. In total I spent $2,800 in capitol for options. !,400 I spent on 3 or 4 regular Apple options. Then I spent equal amount on Apple "Mini" options. This was when Apple was trading below $400 if memory serves true. Well no sooner that 10 minutes after I had completed my order and was filled on those calls? Some guy named Carl Ichan came out and made his first "Famous Apple Tweet" LMAO. I got an instant $20 plus move on the stock. My Calls I had just bought? Exploded as they were now deep in the money. On the regular Apple options I instantly made several thousand dollars? You know what I made on those Mini's? After Commissions and such it was a few hundred bucks. I was so pissed and felt just ripped off. So I have never touched a "Mini" again. Why would I right? With that kind of move and you still cannot make any real money? Forget about it. Minis are Dead to me...The VIX flirting with $11? I wish I bought some calls today too. LOL...So If I do not have a futures account. What is best way for me to hedge using Volatility? Please help a hopeless Bull who wants to get into insurance.:) Thanks for all the insight and education!
Roll Call: Bringing in the Big Guns
Our guest today is Jim Bittman, Senior Instructor at The Options Institute.
He discusses:
- What sort of content/classes our listeners can access at The Options Institute
- What the number one options question is that he receives from students
- What is the number one options mistake and/or misperception students may have about the options market?
- What changes did he make in your recent renovation at The Options Institute, and what can our listeners expect from your new facilities?
Mail Call: Listener questions and comments
- Question from Kevin Duggan - Hi Mark, Great show! I have been listening to episodes for months but it was only recently that I saw Dan’s picture- shocking! In my mind I have always pictured Walter White, as they sound exactly alike and, you always refer to his black hat. You can imagine my surprise when I saw Dan’s pretty face and those curly brown locks. Shave that bean, Heisenberg! Re: short puts (I'm already long calls) If I am certain the stock will move higher fairly quickly, wouldn't it be best to sell the big, meaty, long term puts? If I sell a weekly for .45 and then close it at .20, where's the fun? How do you balance term and premium in naked shorts? Thanks, Kev
- Question from Josh Norell - Hello everyone, enjoy the show, I am trying to work out the details with a diagonal collar, and its adjustments. I want to buy a stock, buy an OTM put several months out, and sell weekly OTM calls against it. If the stock rises, I get called away, all is well and good, and I can just buy the stock back next week and do it again. Where I am confused is when the stock drops below my put strike. What do I do? Because of the puts lower delta, for every dollar I lose on the stock, I am gaining less than 1 dollar on the put. So do I exercise the put and lose all its extrinsic value? Do I roll it down and hope for a retracement? Do I just blast out more calls? A little help, please. Josh
- Question from INC429 - VXX or VIX options? Which is the better hedge for a broad based equity portfolio?
- Question from Buckeye -I enjoyed the discussion about the percentage of a portfolio one should devote to hedging on the last episode. I do have a question about the 1.5%-2% figure discussed on the program. If that was for a three-month put, then you are talking about 6-8% on an annualized basis. Given that most funds only return about 7% a year, will that not eat up all of the profits in your portfolio? Or am I missing something? Thanks again for this excellent program. It truly is a unique source of options education. It makes my long train ride much more bearable.
Basic Training: The world of mini options
- What are Mini Options? (Just celebrated first birthday last month)
- Where do they trade?
- Which underlying names trade?
- What is the use case?
- When should you use them?
- When should you not use them?
- Pros vs. Cons: Unfortunately we cannot give many pros for mini options as of now.
Mail Call: Listener questions and comments.
- Question from Maximus - Hi Mark, Hope you have been doing well. Following up in connection with my question in the email below, since I haven't seen a new episode of Options Bootcamp come out for the past several weeks, and have been waiting with baited breath for your expert comments on my question. :) Hope I didn't overwhelm you and the panel with my frighteningly complicated question, and the insanely large account balances I am referring to (sarcasm alert! :)) I did notice a mention of "Maximizing a ROTH IRA" in episode 331 of Option Block, which came out on April 21st. However, for some reason, this episode seems to end abruptly at just under 37 min, and seems much shorter than the approx. 1 hour duration of these episodes normally. Perhaps there has been a technical glitch causing the episode upload / recording to end abruptly? I am thinking the question you may have answered on this episode is either my question, or probably one very much related to mine. Would love to learn your and the panel's thoughts regarding my ROTH IRA question. Have a few other questions that I plan on sending in shortly as well. Once again - I think you and your panel do an absolutely fantastic job at spreading knowledge across the several podcasts on your network! Please do keep up the good work, and I hope you are able to produce more podcasts, more frequently! Thanks in advance for your assistance - look forward to hearing from you soon. Take care and be well. Maximus
- Question from Marco - This one is for the Boot Camp Drill Instructor Squad - probably John. Can I open two accounts at the same brokerage firm? Not an IRA and a regular account but two regular options brokerage accounts. I want to have an account for my regular income trades and an account for other more speculative strategies. It’s easier for my systems if I keep them separate. I am aware that I won’t receive offsetting margin, etc. Is this a possibility or is there some prohibition against this? Thanks for answering and thanks for sponsoring this show. It’s a great program that is helping a lot of people. Still can’t believe it’s free.
- Question from Lil Tim - Quick one about vol - Are realized and historical vol the same thing? Are there any pricing models that use historical vol? Thx
- Question from Avery - Help! My broker hates options! What should I do?
- Question from Joe - Love the show. I look forward to my fresh episodes every couple of weeks. It’s my treat during my commute. Although my wife thinks I listen to too many of your shows Mark. Anyway - I wanted to write in regarding the OIC conference. I have heard you mention this on several programs on the network. I do not live far from Austin, the site of this year’s conference. I am still a relative neophyte when it comes to options, although programs like this one are helping to change that. Do you think its worth it for beginners like me and others listening to this show to attend conferences like this. Is there any material there for me? Thanks for taking the time and thanks for the network Mark. You have got a listener for life./li>
Mail Call: All mail. All day
- Question from David Medley - I have listened to about half of the 40+ episodes. I do not recall hearing anything about how to get started professionally. I am a 38 year old software developer looking to change industries. The positions that seem to be open to me are commission-only and require a significant cash "Capital Contribution". I am actually OK with this. Some positions have hefty training and/or desk fees, which seems a bit scammy to me. Either way, it's not something I want to go into blind. If you have covered this, I would love to read or listen to it. Thanks!
- Question from Jay - Hi Mark, Options Bootcamp is a phenomenal program. I have learned so much it’s unbelievable. I do still have one question, and it stems from the fact that I am not a convert from the equity world. I am new to the investing world, but I could never wrap my head around equity trading because it seemed too haphazard. It was not until I learned about the flexibility of options that I really thought that I had found something worth sinking my teeth in. So, with that being said. How do you pick your underlying stocks? Is there a set of criteria you screen for among the all of the optionable underlyings, or is it better to really start learning about a few select stocks and then just applying a specific strategy towards the stock situation as you see it? So far I have just been using SPY as a starting ground but would like to move towards specific positions to play on the higher fluctuations in vol, inverse skew events, earnings reports and such. Thanks again for all of your work, and please send a high five to Dan, he is my favorite drill instructor.
- Question from Ted Schwartz - Hi, I am working my way through the Options Boot Camp, learning lots of good stuff. I was wondering what kind of options strategies exist to hedge my 401K mutual funds gains? Would it be practical to use protective puts on some indexes, etc. to offset my risk of fund losses? Thanks!
- Comment forwarded from Dan Passarelli - I am really glad that you participated in the options Bootcamp podcast and that I was fortunate enough to find it. Please convey my gratitude to Mark, (who has no idea who I am) when you get a chance.
- Question from David M - Hey, listening to your show has really helped me grow in my options knowledge. Two questions: (1) Do you have a platform you recommend? (e.g., Tradestation, etc.) - (2) I am currently with Tradeking. I did some long calls last year and lost some money. I realized I needed to learn more. So I stopped and started reading. Now I am ready to start trading spreads and selling premium, but Trade King won't clear me for that level of options trading, because I have not been trading live. Is it time to find another broker, or do I need to trade according to their rules until they clear me for more advanced options? Thanks!
- Question from Mark Radcliffe - Hello Mark, John and Dan. Thanks for providing your excellent options boot camp program it has done a lot to get me started with trading options. I split my investing between long term buy and hold for retirement, short term stock trading for side income and am now adding options. My question is about selling calls to simulate a dividend on buy and hold stocks in my retirement account. The recommendation is to sell front month or even weekly ITM calls to collect the time decay. The problem I see is that these near term options are extremely cheap. E.g. SBUX is currently trading around $72 next week’s 73 strikes ask is $0.26. Does this not mean that if that if I wrote a single call and it expired worthless I would make $26? (assuming no changes). Once you take away the cost of the trade itself you might make pennies or even go backwards on these trades unless you have many lots of that stock in your account. Am I reading this correctly? If so do you think that in order for call writing to really generate any real income you would need to hold several 100 shares of any one stock in your account? Thanks!
- Question from Darren - Hi, do you guys have option alert services?
- Comment from Martin - Thank you that you share this precious information on your site for free. A great job. Well done. Martin from Germany.
- Question from Tom A Bomb - First, huge fan. Second, question about the wheel-o-fun trade: Recently assigned on a short call in a collar position. Monday morning, I was long my protective put (a far-OTM leap), and decided to sell a weekly put that positioned me long about 25 delta. Now, I am wondering how all this will affect my margin SMA. From the margin perspective - is this a put spread, or is this a naked short put? After I put this on, I realized the margin was a bit fuzzy. Since I just rolled out of a covered call, I am obviously cash-secured, but I want to work this out before I find my foot in a bear trap. Thanks guys! Nice hats!
- Question from Jas Sol - How can you tell if implied volatility is cheap or expensive for a option? I assumed, from listening to the show, that a higher volatility means, the time component of the option price is more expensive compared to an option with a lower implied volatility. But comparing the Dec 27 ATM calls for Pandora (P) and Apple (AAPL) that does not seem to be the case. For example, P has an implied volatility of 113.6% and a time value of $2.57. And AAPL has an implied volatility of 23.8% and a time value of $10.84. Since P has a much higher implied volatility, why is the time value lower compared to AAPL? I assume the answer lies in the Greek's Vega, because P has a Vega of .02 and AAPL has a Vega of .48. But I am not sure. So is Vega how you can tell if an option is cheap or expensive? I love the show! Please keep up the good work. Thanks!
- Question from John B - Where do I submit options questions and the tweets that you guys read on your podcast? If this is the place to submit questions, here is my question: I recently stopped trading PCLN *(Priceline) Options because the spread ranges from $2.00 - $4.00. Is this to deter traders and why would the Market Makers keep the spread so high.
Basic Training: Options & Dividends
- How do option holders collect dividends?
- How do derivatives impact options?
- What happens to call and put prices when dividends enter the equation?
- If you are an options holder what must you do to collect a dividend?
- What are dividend plays and how do they work?
Mail Call: International trades, closing positions, and more
- Question from Glenn Baker - Question for Options Boot Camp I've been listening to Options Boot Camp since the first episode & have been listening to the Option Block for about 2.5 years. I currently have a Schwab account where I primarily buy mining stocks. I would be interested in possibly switching to Sogotrade for the lower commissions. Does Sogotrade allow you to buy stocks on Canadian exchanges? Thanks and I really enjoy the show."
- Question from Nick Snow - Hello. First, thanks for all the shows. I used to listen to options insider years ago. Somehow lost the podcast and recently found it again. Good news there is I have been listening nonstop for the last 2 weeks. Second, for the real reason. I have been trading for a while (retail only) and in listening into your shows, particularly Boot Camp. I have heard "close your credit positions, if I had a nickel for every time a person came to me and said this crazy event happened and it wiped me out". I do close my credit positions at $0.20-0.05 every time. But I have wondered if outside of the commission, has anyone ever done a risk reversal? Or roll down to a lottery ticket? E.g. I sell bull put or bear call spread. I go to close the position at 80% of my profit and there's a day or two left. If I just closed my short leg and left the long on, or even just swapped my short leg for a lower short now making my spread a debit albeit a supper cheap debit spread lottery ticket. I could capture those freak events that you always talk about. By my count in options boot camp I would have 128 nickels for those freak events mentioned. :) Any thoughts? Am I missing something? Sincerely yours.
- Question from Abe - Can you make an episode on how to repair losing options trades? I enjoy listening to your show, it keeps me going while I am slaving the night shift at work. Thank you!
- Question from Greg S. - I am looking for some advice from an experienced options professional regarding stock replacement using American-style calls. Really the question comes down to- for a higher dividend yielding stock, should I be buying a LEAP or rolling out approximately every three months after exercising very close to expiration and capturing each dividend? I get that the dividend lowers the price I pay the longer dated the options are, but does not reflect as much as if the options were available as European-style. It seems that if the dividend yield is high enough, the American style can't fully compensate the option holder for the missed dividends as the value can't drop below intrinsic value. Does this call for the shorter term options to capture each dividend? The caveat seems to be that the roll out should cost more extrinsic value on ex-dividend. Since I have a buy-and-hold objective, euro-style or warrants would be ideal to avoid transaction costs, but again, not available. So far, I have been rolling an ITM call option position on a relatively high dividend yielding (5-7%) stock I have wanted concentrated exposure in as part of my overall portfolio but limited risk. It makes regular scheduled quarterly dividend payments and the timing of the annual increases is known to occur in Q1 each year. Well just yesterday (day before ex-div for my stock), I figured I would skip the dividend capture and roll out the May contract to the August one cheaper than I could today because today it trades ex-dividend. I confirmed this using the CBOE calculator, holding price constant. It showed the time value paid to roll should have been more today due to trading without the dividend vs. yesterday. Though just eyeing the bid x ask spread it didn't appear to do so by much and implied volatility looked to be the same.
Basic Training: Legging and Protecting Gains
- What is legging?
- How do you leg into a vertical call spread?
- When should you leg a spread? When should you not leg a spread?
- How do you protect you gains?
- How do you lock in a gain? Buy a protective put, but watch out for the cost.
- Do I write a call ITM, OTM, or ATM? Remember, a covered call is no a defensive play.
- How do you leg into a collar? How do you create a collar plus?
- How does your strategy change during a crisis?
Mail Call: Hey Recruits, it seems you have some questions!
- Question from TelStorm: This question is for Options Boot Camp. Please do discuss when to adjust long protective put with stock. When to sell put vs. just close the position? Do you roll to a lower strike or to a put spread? Thx.
- Question from Alexander Samuels, Chicago - You would never know you guys are Chicagoans from the way you complain about the weather! But seriously, can you discuss which options tools you guys prefer for analytics and trading? Do you have certain products you use every day? Are they in the price range of a basic options trader? I trade maybe 20 times a month, mostly income trades -short puts, wheels, covered calls, etc. What should a guy like me be using?
Basic Training: Advanced Adjustments
- Spread adjustments
- When should you adjust a spread?
- Vertical spreads. Long and short straddles.
- Long and short butterfly adjustments
- When should you adjust your flies?
- Iron butterflies and iron condors.
- Calendar spread adjustments
- When should you adjust basic horizontal one-month calendars?
Mail Call: The drill instructors will now take your questions
- Question from Dr. Anthony - I enjoyed you episode on the wheel trade. I would like to know more about your typical use case for wheel trades, particularly when it comes to the second leg. Do you write an ITM or ATM call, hoping for the stock to be called away quickly, thereby allowing you to begin the process again? Or do you prefer to write an OTM call and attempt to capture some appreciation in the underlying, while risking losses in the stock?
- Question from Nik_Miner - How much money should I keep in my account for adjustments? Does 10-15% seem reasonable in case I need to roll or trade stock against my options?
Basic Training: The topic of the show today comes to us courtesy of a listener question.
Question from Dr. Toboggan: Love the podcasts. Would like to see an episode (maybe options bootcamp) that covers trade adjustments. This was been the most difficult aspect of learning to trade options for me, and would be useful now that you've covered most of the basics on this program. Specifically, would like to hear a discussion on how to adjust trades when the stock moves against you (i.e. price hits the short strike in a condor/credit spread, or the wings of a butterfly). Thanks
- Adjustments are where the rubber meets the road from an options perspective.
- What are adjustments?
- Why have an adjustment strategy?
- When do you make the adjustment?
Basic Adjustments:
- Close positions and close portions the of trade.
- Adjusting into spreads.
- Good rolls vs bad rolls.
- Long premium vs short premium.
Options Drills: Options as an investment tool.
Stock replacement strategy, Covered calls, Short puts, Collars, Covered strangles, Covered straddles and LEAPs
Mail Call:
Question from Charles Binder - Can you guys explain 60/40 tax treatment? What do I need to trade to qualify for this special consideration? Thanks for your help. Keep the show coming!
Basic Training: The Wheel Trade
A great trade for novice options traders. Our friends at RCM call this the "triple income trade" or "the wheel of fun."
What is it? Write a put to get long equity, then immediately write a call to sell equity. When should you use it? When should you not use it?
This is a great way to add some extra bang to your covered call trades.
Mail Call: Fabulous questions, insightful answers.
- Question from Bit Tim: You recommend closing out your shorts when they go your way. Do you advise factoring the closing price of the trade in to your calculations when writing options? For example - write a put for $.30, but know at the onset that you will only collect $.25, because you will close it out for $.05. If more people did that at the outset, they might be less reluctant to close out their winner for a profit.
- Question from Jack - I know you guys are not tax advisors, and so nothing you say can be taken as certain in any answer to this question. I am a small time trader, and at the moment cannot afford a CPA with trading expertise in options to do my taxes. So I am wondering if you can talk about the potential tax consequences of front spreads, especially when used as covered call replacements? I have had good success with this strategy, and I would like to move it into my margin account this year, instead of just using it in the IRA to avoid the tax headache.
- Question from Alejandro Garcia, NYC - Given Wang's experience in the Chinese market, I would be interested to hear John's take on the impending launch of listed options in China in April. Does he think it will be a success? What will the popular strats will be with Chinese options traders?
Options Bootcamp 37: Our Holiday Wish Lists
Basic Training: Options Boot Camp Holiday Wish List
- John - Consolidation in the exchange market place.
- Mark - Better spread execution in the options market in 2014.
- Dan - Continued growth in the options business.
- Mark - Financial/mainstream media would abandon its perception that options are dangerous, complex risk-additive instruments.
- John - Customers close every expiring position.
- Dan - Continued growth in options education.
- Mark - Brokers would make it cheap or free to close out shorts below a nickel.
- John - Customers never (or almost never) trade inverse or leverage ETFs.
- Dan - I hope to be successful in guiding my students, and potential students' expectations of options.
- Mark - I wish more customers would break away from their fixation with VIX.
- John - I would like to see an end to the day trading rules. I also wish more customers had a trading strategy firmly in place before they put a trade on.
- Dan - I would like to see no crazy blow-ups like PFG, etc.
Listener Mail: Listener questions to the Drill Sergeants
- Question from Ed - I am a call writer but I am having a hard time finding trades that suit my criteria in this low vol environment. What is your recommendation? How do I find more acceptable covered writes in this environment?
- Comment from Tom Giles, Newport, RI - I just want to thank you guys for putting together this program. It has really been helpful for me as I take my first fumbling steps into the options market. I have been mainlining the show on my commute every day and repeating episodes that are particularly suited to my trading style. I have already identified a few mistakes in my trading and also adopted a few of your suggestions, including stock replacements and short puts for limit orders. Thanks for the help. When can I look forward to a daily show? I have a long commute.
Basic Training: Here is a rundown of the major topics from the show over the past year:
- Greeks
- Pros/cons of buying premium
- Pros/cons of selling premium
- Speculating with an ATM/OTM call
- Hedging with a protective put
- Stock replacement strategy
- Pros/cons of basic vertical spreads
- Ratio spreads
- Front spreads/back spreads
- Stock repair strategy
- Straddles/strangles
- Spreads with wings: Condors, Flies, etc.
- Volatility skew
- Basic calendar and diagonal spreads
Basic Training: Lessons from the Trading Floor
- Paper flow rules all - Go with the flow! Being obstinate and refusing to adjust to changing market conditions will only cost you money.
- Don't step in front of the train!
- When in doubt, palms out!!
- There is such a thing as an upside crash.
- Calls are puts and puts are calls.
Mail Call: Schooling traders, one question at a time.
- Question from George: Why were puts so expensive when TWTR options launched?
- Question from Niles F., Montgomery, AL - I saw an article recently touting a "synthetic covered call strategy" that essentially involved buying an ITM call and selling an OTM call against it. It was really just a vertical call spread. What am I missing? How is this a synthetic covered call?
- Question from Mr. Gif - Great show on volatility skew. What do you guys think of this piece? Should I, as an investor, avoid these volatility ETFs?
- Question from Buckeye - A question from John - Can I buy a stock on margin then write covered calls against it? Or does a broker like SogoTrade remove the 50% margin and make you pay the full price for the stock when you sell the calls?
Mail Call: All Mail. All day long.
Question from Benjammin - I am currently a law student and have always been interested in options. I have read about options and am now listening to all of the Options Bootcamp podcasts, which is a great show, to prepare to start trading options! SCENARIO: Assume I sell a naked put option and collected $500 in prem. 1 week prior to expiration the value of the underlying has increased and it looks like the option will expire worthless and I will get to keep the $500. Is there anything I can do other than waiting to expiration to lock in my profits by sacrificing a portion of that collected premium?
Question from Richard D - Mark and the Team,
The shows are consistently great! Thank you! You may remember me from "the mega question" early in the month. I will be a LITTLE more succinct in these posts. Also thank you for that bootcamp episode on vol and skew!
I think expiration and settlement could be a good topic for a future Bootcamp show.
Could you discuss a little on how American style options stop trading on Fridays but actually expire on Saturday (at least the monthlies do)? Is anyone allowed, like for example brokers or large institutions, allowed to trade these options after they stop trading for the retail investor?
I understand there are ways a trader can get hurt by this because if you hold a short option at the Friday close, even if it’s a covered option like a bear call, and the stop gaps up after 4 PM Friday, you will get exercised and then be short or long that lot of stock come Monday morning. Could your team discuss what happens if I'm holding a long position and hold it past 4 PM on a Friday? If it’s even a penny in the money it gets exercised, however how does the timing on that work. Here is a hypothetical example:
I own a Nov 18 '13 100 call on stock XYZ. Stock XYZ closes on Fri, Nov 18 at 99.99 but then by 8 PM it goes up in after hours to 100.15. Is my contract automatically exercised?
Alternatively, stock XYZ closes on Fri, Nov 18 at 101 but then by 8 PM that evening drops to 99.99. Again what happens?
Question from Lil Rich - Can you explain the origins of volatility skew? Is it true that skew didn't exist pre-1987?
Question from Eric Thamos - I love the Boot Camp show. It is a great resource for newcomers to options like me. I am listening to the skew episode on the train home right now. I am still puzzled about the actual fundamental underpinnings of skew. What is the bigger determining factor - the actual order-flow or the psychological factors? Also, is it possible to impact the skew myself? For example, if I see a stock where the skew is inflated, could I sell it and deflate it - locking in a profit in the process? Thank again for this insightful program.
Question from Tim Santiago, Albany, NY - I am catching up on options basics including the Greeks (great book Dan). Most of them make sense but I'm kind of hung up on two - rho and delta. Why do we need rho? Is it me or is it really a superfluous variable? Have you ever encountered a circumstance where your knowledge of RHO came in handy and saved the day? As for delta - it seems like the super variable. It's a hedge ratio, a measure of price change AND the probability of expiring in the money all wrapped up into one shiny package. Is it me or is that just too tidy? Do you find this to be the case in real life or is this another example of mathematicians trying to extrapolate their findings to areas that don't really apply?
Basic Training: Trading VIX and Volatility Products
- What is the VIX? How is the VIX calculated?
- How are VIX options priced?
- How do the Greeks work with VIX options?
- What is the difference between VIX cash and VIX futures?
- The VIX is NOT a perfect hedge that offers pure inverse correlation of the S&P?
- VIX can be used as a kicker for extreme events.
- Beware of VIX settlement process.
- Remember to understand the context with which the VIX is being represented.
Mail Call: How may we be of assistance?
- Question from Bicycle My - So how do you become a better trader? I have been trading for a few years now and although I am profitable, I have not seen phenomenal returns.
- Question from Hawkeye6: Can you explain what Maker-Taker is? What is different about it from the traditional methods? Advantages? Disadvantages? Thanks.
Basic Training: Let's talk fundamentals
- What is Implied Volatility and how it is derived? Why is understanding implied volatility is so important?
- Historical volatility versus implied volatility.
- What is skew? Why does skew exist?
- What is the put wing? What is the call wing?
- What is investment skew? What are other types of skew?
-
1 Options question from newcomers - I bought a call option then the stock rallied and my call lost value. Why?
- How do you evaluate skew? How is skew measured?
- What is reverse skew? What does reverse skew sometimes indicate?
- What is term structure?
Mail Call: You have questions. We have answers.
- Question from Nick D. - I am a covered call seller. I have some people recommend that I should sell in-the-money covered calls instead of my usual 5%-10% out-of-the-money calls because of volatility. But why would I want to sell a call that is going to inevitably be called away? What is your thought on this strategy?
- Question from Charles Midler, Santa Fe, NM - I am thinking about hedging my short stock positions with short put positions. How do the drill instructors view this strategy? Am I on the right track? Can John discuss the margin requirements of such a strategy?
- Question from Nomad 6 - What are flex options?
Basic Training: Stock Repair Strategy Review
- Have a downturn in your account? Options can help make that money back.
- When do you use this?
- How does this differ from just holding the stock outright?
- Is there a better alternative to doubling down?
Mail Call: Tell us what you want to know.
- Question from Nick - Can you explain the difference between a front spread and a back spread? Thank for the program. It has a regular spot on my podcast playlist.
- Question from Avalon 360 - I have heard a lot of talk about covered calls. They are in interesting income trade, but they seem to be leaving money on the table - namely the put. Why does no one talk about covered straddles? After all, if you are comfortable selling the vol or premium on one strike you should be comfortable selling both and collecting twice the income?
Basic Training: It's that time of the year again. The kids are back to school, so let's go back to school as well, and refresh our listeners on the options basics.
- What is an option? How do options work? What is a multiplier?
- What are the greeks: Delta, Gamma, Theta, Vega.
- Long premium vs short premium.
Option Drills: A review of the basic positions:
Long call - Short call - Covered call - Long put - Basic vertical spread - Collars. Others can be found in previous episodes.
Mail Call: Question from Dave S. - In the Options Boot Camp podcast #28 and #20 you discussed buying deep in the money LEAPS and selling shorter term calls against them. If the calls you sold expire worthless everything is great. What happens if the underlying goes up and the calls you sold are in the money at expiration? Is it better to just buy back the calls or let them get exercised? Can you discuss the process if they are exercised? Do I need to sell the LEAP to cover the call that was exercised?
Basic Training: Trading Diagonals
- What is a diagonal?
- Why would you put it on?
- What adjustments need to be made?
- How is it performed?
- How does it differ from a typical horizontal calendar spread?
- Why would you use a calendar vs. a horizontal spread?
- How do the greeks differ?
- How do you choose the strikes?
Mail Call: Fall in, recruits!
- Question from Richard D: I think a whole boot camp show on skew could be very helpful! Thanks!
- Question from Hawkeye6: Love the pair of calendar spread shows. Can you make it a hat trick and have a show on double diagonals and double calendars? I am especially interested in hearing about selection criteria -- what makes a good candidate, criteria for strike selection, when to pick DD/DC vs. Condor/Iron Condor, etc.
Basic Training: Pro Tips
- Swap LEAPS for stock when writing covered calls.
- Everyone, even pros, have losing trades.
- Never ever ever enter a market order in the options market place pre-market.
- Swap in-the-money calls for stock whenever possible to utilize trading capital more efficiently.
- Use implied volatility on all your option trades.
- Don't base a sale or purchase of an option based purely on the implied volatility levels without understanding the context on the implied.
- When looking at implied volatility, be very careful around expiration.
- Don't be a lemming and blindly follow "unusual activity". Often it's better to sell the strike where the unusual buying activity took place.
- Swap in-the-money calls for stock whenever possible to utilize trading capital more efficiently.
- Fit the strategy to the situation.
- When reverse skew flips, it's usual a big buy signal.
Mail Call:
- Question from Ron Yuravich - I listened to the podcast on calendar spreads and would like to know what book do you recommend that is compressive on spread trading? I have never had much luck with spreads. I have done a few iron condors for credit and few credit spreads - I just let them expire. The concept of trading the spread and not the underline is new to me. I see that I still have a lot to learn, but I am determined to be a well-seasoned, successful option trader in the end. Keep up the good work - I respect your group for knowledge on options. Thanks, Ron
- Question from Tom Simmons - Just to clarify -- If I write a time iron butterfly in DNDN ahead of earnings with Sogo - sell the Sep 5 straddle and buy the Aug 4/6 strangle - Sogo will margin me as if I sold the Sep 5 straddle naked because the Aug will expire before the Sep. Do I have that correct?
- Question from Alan Dickerson, Provo, UT - Options are a derivative of stocks. Yet there are far more options exchanges than stock exchanges in the U.S. How is that possible? Why are there so many options exchanges? Do they all trade different products or serve different purposes?
Options Bootcamp 27: Calendar Spreads, the Sequel
Mail Call: So many questions, so many answers.
- Question from Alpha_Dog - Let's say I buy the Ford August Week 1 17 call, and then sell the July Week 4 17 call for a $.07 debit. How does that position make money? I don't get it. Don't both calls make/lose money as the stock goes up and down?
- Question from Nevin Pierce - What is more important when trading time spreads - gamma or vega? Is vega the source of profit and gamma the source of risk, or vise-versa? How do I profit of vega without a corresponding large move that ends up costing me more with the gamma? Please help options drill instructors! I'm in over my head!
- Question from Tim Nettles - I am confused about time spreads. I don't really get how they work and how I'm supposed to view them. For example, in the XYZ July/Aug 50 call example cited my Mark Longo - what do I do after the July leg expires? Should I consider that or should I close out the whole position prior to July expiration? What if I was using the short leg to finance a longer term speculative play? Wouldn't it make sense then to leave the second leg on beyond the expiration of the first leg?
- Question from Ron Yueravich - On July 22, in FB, I will buy one Aug 23 put for $.32 and sell one weekly Week 1 July 26 call for $.16. I plan to sell the following after the short side expires - sell two Aug next week puts and then nine Aug 23 puts again. What do you think about this plan on Facebook? I feel there will be a little weakness in the stock before it climbs any higher. Thanks.
- Question from Mikos V - For John Critchley on Options Boot Camp - Does SOGO have any plans to alter the way they handle the margin for short time spread, to avoid the issue you cited where they are margined the same as naked short positions? This seems to waste a lot of capital and provide a disincentive to traders to take on these positions. Is there any way to provide better margin treatment, at least while the first leg of the trade is still active, or is that limited to portfolio margin clients only?
- Question from Emily Duncan, Fairfax, VA - So let me see if I have this straight - If I buy the Facebook Aug 26 call for $1.25, and I sell the July Week 4 26 call for $1.05. I've net paid a $.20 debit for a one month calendar spread. If Facebook rallies to 28 by expiration this week, I will have lost roughly $1 on my July calls and made about $.80 on my Aug calls. So I pretty much would have broken even, or am I completely off-base with my understanding of how this spread works?
- Question from Tim Anders - So if I have no bias and expect no movement, I should buy a time spread to profit from decay in the first month. Why not just short front month instead and save the hassle?
Options Bootcamp 26: Calendar Spreads
Basic Training: Calendar Spreads
This builds on the knowledge from episode 13 "Basic Spreads" and episode 14 "Advanced Spreads" from December.
- What is a calendar spread?
- Why would you want to use a calendar?
- Calendars are much more complex that basic textbooks tell you.
- The delicate balance between gamma and volatility in a calendar trade.
- Can't use P&L diagrams
- How do you manage a calendar?
Options Bootcamp 25: Using Options in Retirement Accounts
Basic Training: What can and can't you do with options in a retirement account. Retirements accounts do not let you use margin. Stick to the covered calls.
Mail Call: Listener questions are filling up our inboxes
- Question from Aman16 - Where does the "Iron" part of Iron Fly and Condor originate from?
- Question from Tim Phillips, Boston, MA - What is your referred way to express a near-term bullish outlook on a stock? Write an ATM or near ATM put or use a stock replacement strategy (deep ITM call)?
- Question from T_BO - When should I use a stock replacement strategy vs. call or call vertical?
- Question from Anaz9 - If I buy 1 ATM, sell 2 OTM calls in a ratio spread, how is the margin calculated on the naked portion? Is it the same as selling naked OTM?
Basic Training: Alternative Income Strategies: Writing covered straddles vs. covered calls. What are the benefits of writing covered straddle vs. calls? What are the drawbacks? Remember your synthetics: Covered straddle = short two puts.
Some additional pros and cons of this strategy.
Mail Call: Listeners Take the Mic
- Comment from Ronald Yuravich: I heard your podcast of the Option Boot Camp episode talking about straddles. I don't like straddles because I would have a gain on one side, but it didn't cover the loss on the other side. I prefer strangles better, but only when vol is high, like in 2008. On September 15 I placed a trade on XOM after I got home from work that would be placed for the opening of the next day. I bought 3 JAN 09 90.00 strike calls and I bought 2 JAN 09 45.00 strike puts. XOM was trading around 65.00 a share at that time. The next morning when the markets had opened, I checked to see if my trades were placed, and they were. I was watching Bloomberg around 11:00 AM and saw that XOM was trading around 58.00 a share. I went online and closed the put side for an 18% gain. Later, when I was at work I received a text message that told me that my call side was in money, so I went online and sold the call side for a 34% gain, altogether I made 42% in less than a day. Ron
- Question from Theodore Roland - To what do the hosts attribute the rise in popularity of the VXX ETF? How can an ETF based off the implied volatility of the VIX be such a popular product? Do you think retail traders should be using options on this product versus the actual VIX options?
- Question from Alex K- What is a risk reversal and when should a trader use this strategy?
Basic Training: Getting to know the fundamentals
- What is a Straddle? Why would you want to use it?
- Straddle pros and cons.
- Iron Butterflies and Iron Condors are straddles and strangles with protection.
- Gamma scalping is the only way to really make long straddles profitable over the long run.
-
Exiting straddle positions is difficult to do effectively. Using straddles pre-earnings
-
Scammers love to pitch straddles, saying "Make money in any market condition." Be careful.
Mail Call: Even bootcampers get mail privileges.
- Question from Alan Utchins, Baltimore, MD - I read with great interest the recent article about options trading in the New York Times. The article seemed to contradict everything you've discussed on this fine program. They highlighted several studies that they claimed prove that most options traders lose money. What is your response to this? Is this essentially a hit piece on the options market or does this author have some valid points?
- Question from Optrader - What books would you recommend about options trading (aside from Mr. Passarelli's, of course)?
Options Bootcamp: Exit Strategy
Basic Training:
Why is it so important to have an exit strategy?
What are the rules of thumb when closing out positions?
Should you be more aggressive when closing out long or short positions?
What are the rules of thumb regarding when to roll you positions vs. closing?
Mail Call: Boot campers have so many questions.
Question from Teddy Z: Mark - Love the show! I've listened to every episode. I think I'm getting a handle of this stuff now. Just wanted to ask - What do you guys think about ETF options? Are there any you prefer over others? Perhaps that's a good topic for a future show.
Question from Alexander Gustaffson, Stockholm, Sweden: Guys, just want to let you know that you have a big following in Sweden. Maybe you should plan a live show in Stockholm one of these days? My question regards single stock futures. They are very popular in Europe but don't appear to have caught on very much in the U.S. I wonder why that is? Can you discuss the hedging of option positions with single stock futures - the pros & cons? Thank you!
Options Bootcamp 21: Playing Defense
Basic Training: Playing defense with options: it’s very important right now!
- Basic Defense: Protective Puts (full overview in Ep. 3)
- How do you hedge your position with protective puts?
- Intermediate Defense: Put Spreads and Ratio Put Spreads.
- Covered Calls - (full overview in Ep. 4) How do you generate income with a modest hedging impact?
- The Power of the Collar: combining the put and the call into a beast of an option. This is the favorite defensive strategy of most financial advisors who use options.
- The pros/cons of repeatedly doing zero cost collars.
- Volatility Defense: VIX Options/Futures. The myth of VIX's perfect inverse correlation- there are problems with relying on volatility as your only hedge, i.e. black swans, days when VIX outperforms, etc.
- The pros/cons of direct defense vs. indirect defense.
Mail Call: Hey recruits, what do you want to know?
- Question from Tina K. - When (if) should I consider volatility products as a hedge?
- Question from Mr_Zen - Can you explain the difference between iron condors and iron butterflies?
- Question from Alan O - What do the drill instructors think of the Minis so far? Are they worth exploring for basic options traders?
Basic Training: We present two choices for using options in lieu of stock:
Stock Replacement Strategy.
- How does it work? Examples include:
- An ITM leaps call purchase - requires premium over parity payment
- Selling a one month ITM put - for the more options savvy trader.
- By swapping out a LEAPS for an underlying, you get a much more preferable position from a Greeks perspective.
Stock Repair Strategy
Under the right set of circumstances, it can be very useful and practical. Appropriate for stocks that fall in value of 20-30%, that you feel within a few month can recoup half of it losses. How does it work?
Mail Call: Bootcampers get their questions answered.
- Question from M Higgins: My financial advisor is not a big fan of options. He keeps trying to steer me into annuities and life insurance policies instead. What do you guys of those products as investment vehicle instead of using options?
- Question from Mr. Anonymous: I've heard a number of options traders, including hosts on this network, use the term "legging" when referring to options trading. What does this term mean? Thanks for your help and for all of your fine options content. The Options Insider Radio Network is truly a unique options content destination for options traders.
- Question from T Biz: What do the drill instructors think of the potential jumbo/max S&P contract?
Basic Training: The topic this week is margin
- What is margin?
- If I have leverage in my options, why do I need margin?
- Is it possible to not qualify for margin?
- Why do you need a cash account? What can/cannot you do with a cash account?
- What are some of the most common risks, mistakes or problems customers run into when implementing margin in their account?
- What are the benefits of portfolio margin over other, different types of margin?
Mail Call: Let our drill instructors answer your questions.
- Question from Jason Cruz, heyojayo: Would Bootcamp be able to detail the pros and cons of buying two 50 delta calls vs. one 100 delta call, or point me to an episode if there is one already?
- Question from Tad Briggs: What does the term "risk reversal" mean? What risk am I reversing? How should I use this strategy in my training?
Options Bootcamp 18: The Joys of Synthetics
Basic Training: Today's topic is Synthetics
- What is put/call parity?
- Example of put/call parity.
- What does it mean for your options trading?
- What are synthetics?
- What is a married put?
- Why knowledge of synthetics is important for successful options trading.
Mail Call: Fall in for listener questions.
- Question from EonJ: Does portfolio margin matter if I am just trading long verticals and ratio spreads?
- Question from Phil S., Santa Fe, NM: I attended an options seminar recently where they promoted the selling of credit spreads in Apple and Google. I'm still somewhat unclear on the concept however. What exactly is a credit spread and how does it differ from other spreads like straddles, call spreads, etc.? Thank you for your time. I just discovered your program and I'm looking forward to listening to your earlier episodes.
- Question from Ephram J.: I'm a CFP and I'm starting to add options to my asset mix. Does Sogotrade offer a platform and/or specialized tools for institutional/advisor customers?
- Question from Timtim409: What is meant by a "stock replacement strategy?"
Options 101: The quintessential options debate -- buy options or sell them?
- Many options professionals lean toward "when in doubt palms out."
- Simplify the options universe into two segments of risk: directional risk and volatility risk.
- The use of delta and other Greeks when deciding or analyzing when to buy or sell options.
- Short premium pros and cons
- Long premium pros and cons
Mail Call: Recruits are asking a lot of questions.
- Question from Tim Nagerty:Mark and the other drill instructors have repeatedly stressed portfolio margin on this program, but I'm somewhat confused by this concept. Can the hosts explain the benefits of PM for an options trader? I have about $70k in my trading account right now. Is it worth it for me to transfer in the extra $30k to me the $100k limit to qualify for PM? Lastly, does SogoTrade/Wang Investments offer PM for its customers? Thanks, love the show!
- Question from Allison S., Spokane, WA: I thank you all for this wonderful program. Do you have any plans to take Options Bootcamp "on the road?" I'd love to meet you all in person.
- Question from Joey Beltran: I've heard the term "backspread" a few times. Where do it come from? What does it mean? How do you use them?
Options Drills: How to play earnings through options plays. There are two basic approaches to earnings trading: long premium and short premium.
- Long Premium - PROS: Advantageous because you essentially receive free or dramatically reduced gamma with little decay in the weeks leading up to earnings. CONS: All of that decay comes out, and more, after the announcement. Also, much of the movement in the underlying occurs after-hours and is unavailable to options traders.
- Short Premium - PROS: Higher probability of success, need a substantial move post-earnings to lose money. CONS: Doesn't collect decay until earnings event, potentially losses can be catastrophic can make it hard to sleep at night.
- How to analyze Greeks during earnings week.
- Different strategies to employ during earnings: Calendars, Straddles, Strangles & Butterflies
Mail Call: Our drill Sergeants show their softer side.
- Question from Stock Doctor: Why can't I trade options after hours? I'm missing most of the stock movement if I wait until the next open.
- Question from Timothy Stephens, Tulsa, OK: If I buy a 3-month ATM calendar spread prior to earnings, am I correct in saying that I'm net long vega and short gamma? If so, what type of earnings announcement would benefit me the most - an as-expected announcement where the stock stays at the ATM strike for my short gamma or a wildly unexpected announcement where the stock moves dramatically for my long vega? Which risk metric is king in the time spread equation - gamma or vega? Thank you very much for you insight and for producing this informative program.
- Question from Rich T: Does Sogo offer reduced commissions to close out short options trading for a nickel or less?
Basic Training: Exercise, Assignment, and Settlement.
There are two styles of options you will encounter -- American and European style. What's the process when your exercises and assignments are determined? When do those contracts settle? How do I determine if my options are going to be exercised or assigned against me? What is pin risk? What is a dividend trade?
Mail Bag: Even options recruits get mail privileges. Send those letters in.
- Email question from Alan P - Michigan: You guys have talked about the difficulties of executing multi-leg spreads in the past. What should I, as a retail options trader, be aware of when executing my spreads to guarantee better execution?
- Tweet from Riley: Are there any plans to speed up exercise and settlement in the options market?
- Facebook question from Dan Thomas: Isn't it a good thing for my call that aren't in the money to be exercised against me? Doesn't that mean that I'm locking in a profit by buying or selling stock at a more favorable price then where it's currently trading?
Basic Training: Spreads with wings.
What is a butterfly? Iron butterfly? What is a condor? Iron condor?
Mail Call: Even bootcampers get mail privileges
- Email from Alan Rick: What makes a spread "iron?" What is the difference between an iron butterfly and a regular butterfly, iron condor, etc. Thanks and please keep up the show; I'm learning a ton!
- Email from Alan Charter: If I think a stock's volatility is elevated going into earnings, should I write an iron condor or an iron butterfly? Which is the better trade?
- Tweet from Mr. Dockerson: AAPL! AAPL! AAPL! What are your favorite Apple spreads right now?
Basic Training: A quick review of spreads.
What are spreads? Why should we use spreads? How do the Greeks work with spreads? How do you calculate, performance, etc? Why do I want to net reduce my delta and exposure in these elements? What are some of the downsides to spreads?
Options Drills: Vertical Spreads
Verticals - What are they? Long verticals vs. Short verticals. Credit spreads vs. debit spreads. You'll experience the maximum profit when the underlying moves to or sits at the short strike of that spread. What are collared spreads?
Mail Call: It's your turn to pick on the drill instructors.
TWEET FROM PHIL S: What's the deal with options spreads? Why can't my orders get filled? How do we fix this problem?
JOHN'S CUSTOMER QUESTION: How do I know if a spread is worth doing or has some "trade" value?
Options Bootcamp 12: Weekly Options
Basic Training: What are weekly options? How do the Greeks differ in the weeklies? How are the weeklies traded?
Option Drills: Selling strategies for weekly options. Diagonal and vertical spreads, straddles, ratios, etc. What are some strategies for selling weeklies around earnings?
Mail Call: Taking on your questions.
- Tweet from @JJacks: Does Sogo trade offer weekly options? What approval level do I need to trade them?
- Email from Theodore in Houston, TX: How long does it really take to learn options and become a good options trader?
- Email from Alex S. in Tusla, OK: My financial advisor doesn't know anything about options and doesn't seem inclined to learn. Should I fire him? If so, where do I find an advisor who uses options?
Basic Training: Busting Options Myths:
1) Market makers know where the stops are, therefore market makers who take the other side of trades are taking advantage of retail customers.
2) The only way to trade profitably is to be a dark side short premium seller. Plus, credit spreads are better than debit spreads.
3) I only need to be good at one trading strategy.
4) Option trades and spreads in particular are difficult to execute and should only be handled by professionals with years of experience.
5) Options are too risky for the retail customers.
Mail Call: Our drill instructors answer your questions.
Email From Alan Donson: Your format is excellent. Please add more pure options trade/content and feature John Critchley. Your intense focus on real options information with a view to options profits, not tedious theory is highly appreciated.
TWEET FROM @ReallyG: You suggested put buy as an ASET to limit buy order? Certainly not in the gap below strike scenario your guests were discussing.
Options Bootcamp 10: Common Trading Mistakes
Basic Training: Your COs cover the most common options trading mistakes:
- Writing long-term options for income.
- Using market orders in illiquid options.
- Not closing options offered at a nickel.
- Buying worthless OTM "lottery ticket" options.
- Selling when implied volatility is high buying when it's low.
- Over-adjusting income trades.
- Believing that sell stops are better than wasting premium on buying downside puts for protection.
Mail Call: Answering your options questions
Via email from John S. - Which is the better method of portfolio protection, a put option or a stop order?
Via email from Phil K. - I’m very interested in weekly options. They appear to be a very popular product right now. Can you do a show about weekly options for those of us who are thinking about diving into these products? Perhaps common mistakes, misconceptions, myths, errors, etc. Thanks a million. I just discovered the show and I've already learned a ton. Tell John I'm on the SogoTrade site right now and about to pull the trigger.
Via Twitter from @Exxav: What do you mean by implied volatility? What is the difference between implied vol and historical vol?
Basic Training: We're going to bust many of the myth and misconceptions the permeate through the options market, particularly to those new to retail options.
- Somewhere between 75-80% (or even more) of options expire worthless every month, therefore you should be an options buyer.
- Selling options is a risk-less, or near risk-less, endeavor.
- All out of the money options have higher volatility than at the money or in the money options.
- Calls go lower, stock goes higher - How could this possible be?
Mail Call: Listener questions and comments
- Tweet from @UncleJessie - I love Bootcamp, it's transformed me into an options trader. I'm also new to Sogo trade, can John explain why his platform is the best for options traders - commissions aside.
- Facebook question from Tim Stevens - As a new options trader, should I focus my efforts on maximizing delta or theta? I primarily buy calls/verticals.
- Tweet from @Eddie66 - Hey drill instructors, I love the Bootcamp! I'm looking to hedge my portfolio - Spy puts or VIX calls?
- Tweet from @Thessa - Sogo thanks fro bringing back Bootcamp, it's my favorite show. Do you offer portfolio margining over there at Sogo?
- Tweet from @AstroX - What is your favorite options book for beginning/intermediate options traders?
Options Bootcamp 8: It's All Greek to Me
Basic Training: Time to revisit the Greeks:
- Delta - The chief Greek
- Gamma - The rate of change of Delta, as the underlying stock changes, but sometimes overwhelming to beginners.
- Theta - Time decay. The rate of change of an option given a change in the time to expiration.
- Vega - The king of the Greeks. The rate of change of an option price, as a result of change in implied volatility.
What is the difference between a retail and professional options trader?
Mail Call: Reaching out for a bootcamp lifeline.
- Tweet from Tex05: Mark, why do you always say that retail options traders trade Delta and professionals trade Vega?
- Email question from Evan - Atlanta, GA: Can you guys explain the importance of dividends to an options trader? That seems particularly important given the recent snafu over SPY dividends. Why are dividends important to options traders and how should it affect my options trading?
- Facebook question from Mike Debrasse: I'm hearing a lot about this being a "low volatility environment." Apparently, that makes it difficult for options traders. Why is that? Why does options volume drop so dramatically when volatility goes down? Should I wait to trade options before volatility/vega goes up? Thanks for your help.
Roll Call: Mark and Dan introduce the newest Drill Instructor, John Critchley from SogoTrade. Find out more about SogoTrade, from its philosophy to its commission structure.
Basic Training: What you need to know
- Why should someone trade options?
- What's in it for different levels of traders?
- Will you be able to drive a Maserati tomorrow?
- How options work: the honest breakdown.
- Believe it or not, options can actually reduce risk.
- The negative connotation of derivatives.
- The concept of the multiplier.
- Why trade options?
Mail Call: Giving listeners a chance to steer the discussion.
- Can you exercise options early?
- What happens when options are exercised?
- How options settlement works.
- When is premium credited to an account?
Options Bootcamp 6: Complex Spreads
Basic Training: Today we're going to dive into complex spreads. What are complex spreads? We're usually talking multi-leg spreads. Calendars are when you buy and sell a call/put at the same strike price, but in a different month. Diagonals, a combination of a vertical and horizontal spread, can be a proxy to a covered call. The concept of the ratio, 1-to-1 on a simple spread, but you can play with the ratio. A stock repair strategy using diagonals, ratio risk reversals and collars.
Roll Call: Mark and Dan sit down with Craig Pinkston, Senior Director of Operations at Zecco.
Mail Call: Does the Theta decay occur just at open/close or is it a gradual decay throughout the day? (Via Facebook from Jason Cruz)
Options Bootcamp 5: Spread Trading Basic Training: Today we're going to dive into spreads. Spreads are really the defining characteristics of options. What is a spread? Why would you do a spread vs. trading an option outright? Max value of a spread is the differential between the two strike prices. Long call spread, aka vertical, examples with everyone's favorite stock XYZ. Spreads have components called legs - they are the individual parts of the spread.
Roll Call: Mark and Dan sit down with Christopher Newman, the Zecco Trading Vice President of Customer Service, and run him through a few questions:
- A big part of the brokerage experience is support. What are some of the things Zecco does to ensure the customer has a great experience when they need support?
- If I'm a Zecco customer, or a potential Zecco customer, how can I reach out to get support?What methods of communication does Zecco offer?
- If I'm an options trader, will Zecco go the extra mile for me on the phone? Explain what options traders can expect in terms of phone support.
Mail Call:
- Twitter question from DSCHWARTZ- You said buying options before earning was bad. What about spreads (verticals, etc)?
- Email from Stephen Maxes, Des Moines, IA- I'm interested in trading options spread. Do I need a special options account to do this or does the regular option account work for spreads as well? Thanks and please keep doing the show. It has been very helpful for me.
Options Bootcamp 4: Selling Options
Basic Training: Turning to the dark side! It's time to learn how to sell options. Why sell options? Time decay and theta. Collecting theta, instead of paying theta, turning an enemy into a powerful ally.
Example:
The Naked Call
The Naked Short Put
Options Drills: The Covered Call Roll Call: Mark and Dan sit down with this Zecco Trading's President Michael Feser, to discuss Zecco in 2012. Given the difficulty for new retail traders in the last year, what can we see now, a full quarter into the new year? What issues may investors need to be cognizant of before coming into the market this year? Explaining the success of Zecco Share.
Mail Call: Facebook questions from the Zecco community.
From Chad: What is the difference between a married put and a covered call?
From Austin: I have an IRA account which is approved for basic options strategies. My investment objective is to preserve capital and generate additional income while remaining risk adverse. What basic strategies can I use in this situation?
BASIC TRAINING - BUYING OPTIONS
- Buying Options, with special guest Joe Burgoyne from the Options Industry Council.
- Benefits & Downsides of buying options.
- The Greeks most relevant to novice options buyers.
- Bullish Example: Buying a call
- Bearish/Defensive Example: Buying a put.
- Common options buying mistakes: Buying OTM options vs ATM/ITM options, Intrinsic vs. Extrinsic value, Loading up before earnings.
ROLL CALL
Mark and Dan sit down with this episode's guest Benny Joseph to discuss the Zecco mobile app. They cover a wide range of topics including:
- Can it execute options orders?
- Can you access the greeks of your position via the mobile app?
- Can you execute complex, multi-leg spreads via the mobile app?
- What features of the Zecco mobile app set it apart from the rest of the pack?
- What has the feedback been since launching this new app?
MAIL CALL
Mark and Dan answer questions from Zecco's Facebook community including:
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From Arsalan: If I buy a call option and when it is time to exercise it, will that be done automatically (from the strike price or by the cost basis price, which would be the premium+strike?) or will I need to do something, as well as if I don't have the buying power to exercise the option, what happens, can I just have it buy and sell the stock right then and there and just have the profit.
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From Mike: Is Delta a measure of how much the option moves in relation to the stock? Example. A delta of 0.7 would mean if the stock moves 10%, the option would move 7%?
Options Bootcamp 2: The Greeks Basic Training:
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Risk variables (aka "the Greeks") are Delta, gamma, theta, and vega.
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Delta: The measure of the sensitivity of the options' price given a change in the underlying instrument. It's also used to view the likelihood of whether an option will expire in-the-money.
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Gamma: The rate of change of an options' delta given the change in the underlying instrument.
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Theta: The rate of change of an options' value given a change in the number of days until an options' expiration.
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Vega: The rate of change in an options' value given the change in implied volatility.
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How professional traders use the Greeks and ways that novice traders can use them, too. It's a symbiotic relationship.
Roll Call
- John Foley joins Mark and Dan to discuss the how customers can use the Greeks to enhance their trading, where they can find the information in the Zecco platform, and how to avoid mistakes they have made in the past.
Options Bootcamp: Premiere Episode
- Host: Mark Longo, The Options Insider
- Co-Host: Dan Passarelli, Market Taker Mentoring
- Guests: Michael Raneri and Tony Leach from Zecco
Basic Training: Dan and Mark make the case for trading options, shattering myths and resetting expectations. The evolution of options: eliminating barriers to entry, increasing the flow of information, commissions. What is an option? The impact of timeframe on options. What are calls and puts? The leverage, safety, and risk management components to options. How options can be income-generating. Long call and long put examples.
Roll Call: Mark and Dan are joined by Tony Leach and Michael Raneri from Zecco. They touch on the need for more options education. Why did Zecco want to educate the retail options trading audience? For Zecco, why options, and why now? Zecco's new trading platform: The single trading page approach, contextual trading, help mode, ease of spread execution, the depth of spread calculations within the strategy chain, customization options, ratio spreads, and the many functions available in the mobile app. Zecco's social media initiatives. The importance of knowing how to effectively use options in your portfolio.