The Advisors Option: Recent Episodes

The Options Insider Radio Network

Simple diversification is no longer enough to shield the assets under your management. Registered investment advisors, financial planners and asset managers need a new weapon in their war on risk. Welcome to The Advisors Option - the only program designed to arm busy advisors with the information necessary to properly manage risk in this volatile environment. From options education and trading strategies to practical tips, industry news and interviews with leading advisors, you will find it all on The Advisors Option.

Matt and Mark have a great live episode of The Advisors Option from OIC 2025 where we get the buzz about:

The raging debate about 0DTE equity options
Should we be able to buy and sell stop loss orders?
Why are options trading algos so predictable?
What is going on with this options explosion?
What is going on with the state of options education?
and much more...

In this episode of the Advisors Option, Mark Longo and Matt Anderson (ORATS) delve into the world of options trading with a focus on tools and strategies for advisors. They discuss the impact of market volatility and the ongoing trade war on options trading volume, highlighting that March 2024 set a new record with 1.23 billion contracts. The episode also explores earnings season performance and strategies like put calendars for hedging portfolios. Additionally, they address listener questions on trade war impacts, concentrated equity exposure, and using tools for calculating hedges, wrapping up with a giveaway for a pro trading crate. 01:25 Welcome to The Advisor's Option 06:08 Market Recap: P&L Statement 14:53 Earnings Volatility Report 20:49 Options Trading Volume Insights 27:26 Pro Trading Crate Giveaway 28:49 Office Hours: Listener Questions 30:54 Discussing Trade War Impacts on Options Market 33:07 Strategies for Trading in Volatile Markets 35:41 Earnings Season Trading Insights 38:28 Common Misconceptions About Options 43:25 Using Options for Portfolio Hedging 53:01 Advising Clients with Concentrated Equity Positions 59:19 Conclusion and Final Thoughts

Host: Mark Longo, The Options Insider Media Group Co-Host: Matt Amberson, ORATS In this episode of The Advisor's Option, host Mark Longo and Matt Amberson discuss key trends in options trading, including the surge in long straddles, macro volatility impacts, and the record-setting options volume. The episode highlights the latest data on earnings volatility and significant macro events driving market movements. They also delve into trading strategies involving Nvidia’s upcoming earnings and Schwab’s 24-hour trading debut. Practical insights include the benefits of a new journaling tool and surprising backtest results, while answering listener questions about trading strategies and crypto assets. 01:25 Welcome to The Advisors Option 03:11 Meet the Hosts and Global Travels 06:11 Market Volatility and PNL Statement 17:40 Earnings Volatility Report 24:44 Options Market Trends and Insights 32:09 Expanded Pilot Program Overview 32:52 Options Trading 24/7: Pros and Cons 34:03 Audience Poll: 24/7 Options Trading 36:52 Tricks of the Trade: Practical Tips 37:22 Macro Events and Volatility 44:57 Office Hours: Answering Your Questions 46:00 Crypto Volatility and Market Trends 48:53 Backtesting Insights and Strategies 58:00 Final Thoughts and Resources

On this episode,

We share our thoughts on current market volatility as well as our thoughts on volatility for the coming year.
We look at how earnings season volatility is impacting this market and our thoughts on the earnings seasons in 2025.
We examine the options volume numbers for 2025 from OCC.
We discuss whether it better to fade VXX by selling call spreads or buying straight OTM puts.
We answer a question as to whether calls in SPY over time is as draining as buying puts.
We explain what it means that calls are bid in the Russell 2000 right now and why that is so unprecedented.
We talk about advisor-oriented options conferences.
And much more.

With your hosts:

Mark Longo - The Options Insider Media Group
Matt Amberson - Option Research & Technology Services

On this episode,

We share our thoughts on current market volatility
We discuss how advisors should utilize 0dte options
We talk about TSPY, the first true daily options ETF
We look at how earnings season volatility is impacting this market.
We answer a listener question about utilizing the options on IBIT
And much more.

With your hosts:

Mark Longo - The Options Insider Media Group
Matt Amberson - Option Research & Technology Services
Si Katara - TappAlpha

On this episode,

We share our thoughts on current market volatility
We discuss what the markets are telling us ahead of the election
We talk hedging specific event risk
We look at how earnings season volatility is impacting this market.
We answer a listener question about trading binary options on the election
And much more.

With your hosts:

Mark Longo - The Options Insider Media Group
Matt Amberson - Option Research & Technology Services
Zed Francis - Convexitas

On this episode,

We discuss large moves expected for the election and Friday's unemployment report
We talk time vs. Greeks
We look at how earnings season volatility is impacting this market.
We share our thoughts on overall options volume trends
What we see in the RIA space and outlook for retail adoption of options
We answer listener questions about long straddles, leap options, and taking advantage of high skew stocks like meme stocks
And much more.

With your hosts:

Mark Longo - The Options Insider Media Group
Matt Amberson - Option Research & Technology Services

On this episode,

We discuss how to navigate current market complexities and trends in the macro trading environment.
We talk about hedging with index options vs. ETFs and the recently approved Margin Enhancement Rule for "protected options"
We look at how earnings season volatility is impacting this market.
What we see in the RIA space and outlook for retail adoption of options
And much more.

With your hosts:

Mark Longo - The Options Insider Media Group
Matt Amberson - Option Research & Technology Services

And guest:

Rob Hocking - Cboe Global Markets

On this episode,

We discuss how to navigate current market complexities.
We look at how earnings season volatility is impacting this market.
We talk about what is going on with META heading into earnings. Is there a fire-sale going on?
What is the proper way to hedge the weekend risk in your portfolio?
And much more.

With your hosts:

Mark Longo - The Options Insider Media Group
Matt Amberson - Option Research & Technology Services

On this episode, we discuss how to navigate current market complexities and we provide insights into today's market volatility. We look at how the earnings season is shaping up. We provide our thoughts on the current options volume trends. We discuss derivative strategies in ETFs that allow investors to chase stock returns while also protecting against a potential market downturn (or as the WSJ refers to these hot new funds - Boomer Candy for retirees). We talk about how "junk" VIX calls are hot again, and much more.

With your hosts:

Mark Longo - The Options Insider Media Group
Matt Amberson - Option Research & Technology Services

And guest:

Arnim Holzer - Global Macro Strategist, Easterly EAB Risk Solutions

We discuss our thoughts on the current market environment including skew in GME, AMC, NVDA, SPX and 0dte. We also look at how the earnings season is shaping up. In our Options 101 Segment, we talk about Buy & Hold 2.0. We also discuss whether it is a good time to purchase longer term protection clients with broad-based index portfolios, and much more.

With your hosts:

Mark Longo - The Options Insider Media Group
Matt Amberson - Option Research & Technology Services

And guest:

Philip Sun - Adaptive Investment Solutions

HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP CO-HOST: MATT AMBERSON, OPTION RESEARCH & TECHNOLOGY SERVICES

THOUGHTS ON CURRENT MARKET ENVIRONMENT
IS VOLATILITY BACK
HOW THE EARNINGS SEASON IS SHAPING UP
THE ZERO-SUM OPTIONS GAME
MARCH OPTIONS VOLUME NUMBERS FROM OIC
HEDGING USING OTM PUT CALENDAR SPREADS
AND MUCH MORE

HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP CO-HOST: MATT AMBERSON, OPTION RESEARCH & TECHNOLOGY SERVICES GUEST: NICK GRIEBENOW, SHELTON CAPITAL MANAGEMENT

THOUGHTS ON CURRENT MARKET ENVIRONMENT
GENERATING INCOME IN HIGH RATE ENVIRONMENTS
EARNINGS SEASON VOLATILITY UPDATE
FEBRUARY OPTIONS VOLUME
THE GREAT VOL DEBATE - WHAT IS KEEPING VOL SO LOW?
SELLING COVERED PUTS
AND MUCH MORE

HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP CO-HOST: MATT AMBERSON, OPTION RESEARCH & TECHNOLOGY SERVICES GUEST: BILL ULIVIERI, CENACLE CAPITAL

TAKEAWAYS FROM 2023
THOUGHTS ON CURRENT MARKET ENVIRONMENT INCL THE POST-BITCOIN APPROVAL MARKET
THE ESSENTIAL ESTATE PROFESSIONALS TOOLKIT FOR RECOVERING CRYPTOCURRENCY
EARNINGS SEASON VOLATILITY UPDATE
DECEMBER OPTIONS VOLUME AND 2023 RECORD OPTIONS NUMBERS
THOUGHTS ON CONTINUED RESILIENCE OF THE OPTIONS MARKET
HOW ODTE OPTIONS HAVE EFFECTED THE MARKETS
AND MUCH MORE

HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP CO-HOST: MATT AMBERSON, OPTION RESEARCH & TECHNOLOGY SERVICES GUEST: JOHN STEC, GLOBAL X

THOUGHTS ON CURRENT MARKET ENVIRONMENT INCL THE RECENT BULL MARKET IN CRYPTO & RUMORS OF THE APPROVAL OF THE BTC SPOT ETF
TRICKS OF THE TRADE: DISCUSSION OF ADVISORS AND DIGITAL ASSETS
OCTOBER OPTIONS VOLUME NUMBERS
EARNINGS SEASON VOLATILITY UPDATE
THOUGHTS ON THE CONTINUED RESILIENCE OF THE OPTIONS MARKET
AND MUCH MORE

HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP CO-HOST: MATT AMBERSON, OPTION RESEARCH & TECHNOLOGY SERVICES

THOUGHTS ON CURRENT MARKET ENVIRONMENT
HOW THE EARNINGS SEASON IS SHAPING UP
TOP 5 SCARIEST OPTIONS STRATEGIES/TRADES
SCARIEST OPTIONS STRATEGY NAME
BACKTEST VOLATILITY OF INTRADAY SPX OPTIONS FOR PAST 18 MONTHS
AND MUCH MORE

HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP CO-HOST: MATT AMBERSON, OPTION RESEARCH & TECHNOLOGY SERVICES GUEST: MIKE TOSAW, ST. CHARLES WEALTH MANAGEMENT

THOUGHTS ON CURRENT MARKET ENVIRONMENT
ANALYZING THE SURPRISING LACK OF IMPACT THE CONFLICT IN THE MIDDLE EAST IS HAVING ON VOLATILITY
BASIC TRAINING: THE WHEEL STRATEGY
SEPTEMBER OPTIONS VOLUME NUMBERS
EARNINGS SEASON VOLATILITY UPDATE
WHICH EXAM OFFERS THE BEST PREP FOR OPTIONS TRADING
AND MUCH MORE

HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
CO-HOST: MATT AMBERSON, OPTION RESEARCH & TECHNOLOGY SERVICES

THOUGHTS ON CURRENT MARKET ENVIRONMENT
JULY OPTIONS VOLUME NUMBERS FROM OCC
WHICH PRODUCT HAS HAD THE LARGEST OVERALL IMPACT ON THE OPTIONS MARKET? VIX, ODTE, WEEKLYS
HOW THE EARNINGS SEASON IS SHAPING UP
OPTIONS 101: RISK REVERSAL REVIEW
IS IT TIME TO RECONSIDER WRITING COVERED CALLS AT LEAST UNTIL VOLATILITY INCREASES

HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
CO-HOST: MATT AMBERSON, OPTION RESEARCH & TECHNOLOGY SERVICES
GUEST: ERIC COTT, COTT CONSULTING

THOUGHTS ON CURRENT MARKET ENVIRONMENT
3000 VS 5000 IN SPX
JUNE OPTIONS VOLUME NUMBERS
WILL WE SEE LOWER VOLATILITY IN SECOND HALF OF YEAR
THOUGHTS ON PAST/UPCOMING OPTIONS CONFERENCES
EARNINGS SEASON VOLATILITY UPDATE
USING CALENDARS IN A LOW VOL ENVIRONMENT TO GET LONG FOR A SMALL OUTLAY AND FOR PUT CALENDARS TO HEDGE A PORTFOLIO
IS THERE AN UPTICK IN CLIENT INTEREST IN OPTIONS

HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
CO-HOST: MATT AMBERSON, OPTION RESEARCH & TECHNOLOGY SERVICES

THOUGHTS ON CURRENT MARKET ENVIRONMENT
LOOK AT MAY OPTIONS VOLUME
HOW THE EARNINGS SEASON IS SHAPING UP
IS IT TIME TO PURCHASE PORTFOLIO PROTECTION
COMPARING SKEW ACROSS PRODUCTS
THE SWEET SPOT FOR STOCK SUBSTITUTION STRATEGY
CAN GARBAGE CALL/PUT CONCEPT BE APPLIED TO JUST ABOUT ANY EQUITY
ARE BUTTERFLIES WORTH DOING WHEN VIX IS IN THE LOW TEENS
OVERLAY TOOLS IN THE ORATS LIBRARY
EFFECTIVE STRATEGY IN SHORT-DURATION CONTRACTS LIKE 0DTE SPX

HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP CO-HOST: MATT AMBERSON, OPTION RESEARCH & TECHNOLOGY SERVICES GUEST: BARRY MARTIN, SHELTON CAPITAL MANAGEMENT

THOUGHTS ON CURRENT MARKET ENVIRONMENT
GENERATING INCOME IN HIGH RATE ENVIRONMENTS
APRIL OPTIONS VOLUME NUMBERS DOWN
THOUGHTS ON OPTIONS INDUSTRY CONFERENCE
EARNINGS SEASON VOLATILITY UPDATE
WHAT IS THE BIGGEST SURPRISE ABOUT OPTIONS LEARNED FROM YEARS OF BACK TESTING

HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP CO-HOST: MATT AMBERSON, OPTION RESEARCH & TECHNOLOGY SERVICES

THOUGHTS ON CURRENT MARKET ENVIRONMENT
HISTORIC MONTH FOR THE OPTIONS MARKET!
HOW THE EARNINGS SEASON IS SHAPING UP
OPTIONS 101: WHAT ARE ZERO DAY OPTIONS CONTRACTS AND THOUGHTS ON THEIR EXPANSION
COLLARS AS THE HOLY GRAIL FOR FINANCIAL ADVISORS

HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP CO-HOST: MATT AMBERSON, OPTION RESEARCH & TECHNOLOGY SERVICES

THOUGHTS ON CURRENT MARKET ENVIRONMENT
OPTIONS 101: BUTTERFLY OVERVIEW
THE ORATS PHILOSOPHY OF TRADING USING BACKTESTING, PAPER TRADING, EXECUTION TOOLS
ADVISOR TAKEAWAYS FROM THE FIA BOCA CONFERENCE
FEBRUARY OPTIONS VOLUME FROM OPTIONS CLEARING
WHAT OUR INDICATORS ARE SHOWING ABOUT THE SPX, THE BANKING INDUSTRY AND THE MARKETS
ADVISOR WHO STOLE MONEY FROM DEMENTIA PATIENTS

HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP CO-HOST: MATT AMBERSON, OPTION RESEARCH & TECHNOLOGY SERVICES GUEST: KEN KWALIK, CARRICK LANE

THOUGHTS ON CURRENT MARKET ENVIRONMENT
INVESTING IN OPTIONS: PAST GROWTH AND 2023 POTENTIAL
COLLATERALIZED PUT WRITING AND COVERED CALL WRITING
JANUARY OPTIONS VOLUME FROM OPTIONS CLEARING

HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP CO-HOST: MATT AMBERSON, OPTION RESEARCH & TECHNOLOGY SERVICES

THOUGHTS ON CURRENT MARKET ENVIRONMENT
WHAT STANDS OUT FROM A MARKETS, VOLATILITY, OPTIONS AND ADVISORS PERSPECTIVE FROM LAST YEAR
WHAT WERE THE MAJOR TRENDS/DEVELOPMENTS IN THE OPTIONS MARKET IN 2022
GOOGLE TRENDS 2023 CHECKUP
2022 WAS A RECORD YEAR FOR OPTIONS
WILL 2023 BE AN ABOVE AVERAGE YEAR FOR OPTIONS TRADES
EARNINGS SEASON VOLATILITY UPDATE

HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
CO-HOST: MATT AMBERSON, OPTION RESEARCH & TECHNOLOGY SERVICES
GUEST: NICK GRIEBENOW, SHELTON CAPITAL MANAGEMENT

THOUGHTS ON CURRENT MARKET ENVIRONMENT
THOUGHTS ON CORRELATION ACROSS ASSET CLASSES POSING CHALLENGES FOR ADVISORS
PORTFOLIO OVERLAY REVIEW
EARNINGS SEASON VOLATILITY UPDATE
WHY IT IS SO HARD TO MAKE MONEY WITH LONG PUTS AS A HEDGE IN THIS ENVIRONMENT

HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
CO-HOST: MATT AMBERSON, OPTION RESEARCH & TECHNOLOGY SERVICES
GUEST: ERIC COTT, COTT CONSULTING

THOUGHTS ON CURRENT MARKET ENVIRONMENT
EARNINGS SEASON VOLATILITY UPDATE
HOT TOPICS FROM LATEST INDUSTRY CONFERENCES
TOTAL OPTIONS VOLUME FOR SEPTEMBER
HOW MEME STOCK TREND IMPACTED ADVISORS
BITCOIN EXPOSURE IN BITO AND GRAYSCALE PRODUCTS

HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
CO-HOST: MATT AMBERSON, OPTION RESEARCH & TECHNOLOGY SERVICES
GUEST: BILL ULIVIERI, CENACLE CAPITAL

THOUGHTS ON CURRENT MARKET ENVIRONMENT
EARNINGS SEASON VOLATILITY UPDATE
EXPLORING THE INTERSECTION OF CRYPTO AND ADVISORS
TOTAL OPTIONS VOLUME FOR AUGUST
SVIX AND ITS SUITABILITY FOR ADVISORS TO INCLUDE IN CLIENT PORTFOLIOS

HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
CO-HOST: MATT AMBERSON, OPTION RESEARCH & TECHNOLOGY SERVICES
GUEST: MICHAEL OYSTER, OPTIONS SOLUTIONS

THE BUZZ

THOUGHTS ON CURRENT MARKET ENVIRONMENT
ARE WE ENTERING A NEW VOLATILITY REGIME
THE COVERED COMBO STRANGLE
EARNINGS SEASON VOLATILITY UPDATE

OPTIONS 101 - THE COVERED CALL

THE GO-TO OPTIONS STRATEGY FOR MOST FINANCIAL ADVISORS - WHAT IS IT
PROS AND CONS
THE COVERED CALL AS A DIVIDEND DOESN'T GET THE RESPECT THAT IT DESERVES

THE BUZZ SEGMENT

TOTAL OPTIONS VOLUME FOR JULY

OFFICE HOURS SEGMENT

EARLY ASSIGNMENT RISK FOR OPTION WRITERS
IS THERE A WAY TO TRADE COVERED CALLS ON VIX

HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
CO-HOST: MATT AMBERSON, OPTION RESEARCH & TECHNOLOGY SERVICES

THOUGHTS ON CURRENT MARKET ENVIRONMENT
EARNINGS SEASON VOLATILITY UPDATE
OCC MAY OPTIONS VOLUME NUMBERS
HOW SHOULD ADVISORS APPROACH THESE MARKETS USING OPTIONS
WHY ARE ZERO COST COLLARS CONSIDERED TO BE SUB OPTIMAL
THOUGHTS ON STABLECOINS AND THEIR IMPACT ON CRYPTO ADOPTION BY ADVISORS
THE ROLE ANNUITIES SHOULD PLAY IN CLIENT PORTFOLIOS
THE ADVISOR ROLE IN 2022 WITH INCREASE IN ROBO ADVISORS

HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
CO-HOST: MATT AMBERSON, OPTION RESEARCH & TECHNOLOGY SERVICES

THOUGHTS ON CURRENT MARKET ENVIRONMENT
EARNINGS SEASON VOLATILITY UPDATE
THE CASH SECURED PUT - A VERY POPULAR INCOME AND STOCK-ENTRY TOOL FOR ADVISORS
OCC APRIL OPTIONS VOLUME NUMBERS
DAILY EXPIRATIONS IN SPX

HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
CO-HOST: MATT AMBERSON, OPTION RESEARCH & TECHNOLOGY SERVICES
GUEST: CHRIS HAUSMAN, SWAN GLOBAL MANAGEMENT

THOUGHTS ON CURRENT MARKET ENVIRONMENT
EARNINGS SEASON VOLATILITY UPDATE
WHAT IS BITO AND HOW IT COULD IMPACT CLIENTS VS. SPOT BITCOIN OR BITCOIN FUTURES
FIDELITY OFFERING BITCOIN IN 401K
DIFFERENCE BETWEEN SWIMMING DELTA AND SKEW DELTA

HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP CO-HOST: MATT AMBERSON, OPTION RESEARCH & TECHNOLOGY SERVICES GUEST: MIKE TOSAW, ST. CHARLES WEALTH MANAGEMENT

THE P&L STATEMENT

THOUGHTS ON CURRENT MARKET
VALUATIONS/VOLATILITY REGIME/ OPTIONS ACTIVITY

EARNINGS VOLATILITY

LATEST EARNINGS SEASON ANALYSIS

OFFICE HOURS SEGMENT

IS IT WORTH IT TO HIRE AN ADVISOR OR COULD YOU USE A PASSIVE APPROACH YOURSELF AND STILL USE OPTIONS
SHOULD YOU INCREASE YOUR RISK TOLERANCE UNDER THE CURRENT CIRCUMSTANCES
WOULD THE TAIL RISK PUT STRATEGY IN SPX WORK IN VIX CALLS
STRATEGY FOR CRYPTO ASSETS IN CLIENT'S PORTFOLIO

HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP CO-HOST: MATT AMBERSON, OPTION RESEARCH & TECHNOLOGY SERVICES GUEST: AASH VYRAS, RESONANZ CAPITAL GMBH

THE P&L STATEMENT

THOUGHTS ON CURRENT MARKET
VALUATIONS/VOLATILITY REGIME/ OPTIONS ACTIVITY

EARNINGS VOLATILITY

LATEST EARNINGS SEASON ANALYSIS

THE BUZZ SEGMENT

FEBRUARY OPTIONS VOLUME NUMBERS FROM OCC

OFFICE HOURS SEGMENT

SUBSTITUTING STOCK POSITIONS WITH CALL OPTIONS WITH LONG TIME EXPIRATION DATES
HOW EXPLODING COMMODITY PRICES MIGHT IMPACT THE EQUITY VOLATILITY REGIME GOING FORWARD
HOW TO PLAY THE UNDERPERFORMANCE OF FAANG STOCKS VS. THE S&P 500

HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP CO-HOST: MATT AMBERSON, OPTION RESEARCH & TECHNOLOGY SERVICES GUEST: RICHARD ROSENTHAL, CBOE GLOBAL MARKETS

INTRODUCTION OF GUEST AND BRIEF OVERVIEW OF CBOE'S STRATEGY BENCHMARK INDEXES

THE P&L STATEMENT

THOUGHTS ON CURRENT MARKET
VALUATIONS/VOLATILITY REGIME/ OPTIONS ACTIVITY

EARNINGS VOLATILITY

EARNINGS SEASON ANALYSIS THIS YEAR
NEW OPTIONS SCANNERS FROM ORATS

OPTIONS 101 SEGMENT - THE COLLAR REVISITED

ZERO COST PUT SPREAD COLLAR IN THE SPX
MARK CUBAN STORY ABOUT THE YAHOO COLLAR
RECOMMENDATIONS FOR SOURCES OF PORTFOLIO PROTECTION
BETTER WAY TO APPROACH COLLARS IN THESE HIGH VALUATION MARKETS
INDEX COLLARS VIABILITY

THE BUZZ SEGMENT

JANUARY OPTIONS VOLUME NUMBERS FROM OCC
CBOE RESEARCH:
- GLOBAL OPTION-WRITING STRATEGIES TO REDUCE RISK AND ENHANCE INCOME
- IMPROVING DIVERSIFICATION BY HARVESTING PREMIUMS & CUSHIONING RISK
- OPTIONS-BASED BENCHMARK INDEXES: PERFORMANCE: RISK AND PREMIUM CAPTURE
- THE BIGGEST OPPORTUNITIES IN SMALL CAPS

HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
CO-HOST: MATT AMBERSON, OPTION RESEARCH & TECHNOLOGY SERVICES

THE P&L STATEMENT

THOUGHTS ON CURRENT MARKET
VALUATIONS/VOLATILITY REGIME/ OPTIONS ACTIVITY
LOOKING BACK AT THE HIGHS AND LOWS FOR 2021

EARNINGS VOLATILITY

EARNINGS SEASON ANALYSIS THIS YEAR

OPTIONS 101 SEGMENT

WHAT WE LEARNED ABOUT OPTIONS THIS YEAR: COVERED CALLS, COLLARS, RATIO SPREADS, PAYING FOR PUTS

THE BUZZ SEGMENT

OPTIONS VOLUME NUMBERS THIS YEAR FROM OCC
CRYPTO BECAME MAINSTREAM THIS YEAR
BROKERAGE OUTAGES
100TH EPISODE CELEBRATION
FRACTIONAL SHARES FOR ADVISORS

OFFICE HOURS SEGMENT

THOUGHTS ON A STRATEGY IN UVXY

HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
CO-HOST: MATT AMBERSON, OPTION RESEARCH & TECHNOLOGY SERVICES

THE BUZZ

THOUGHTS ON CURRENT MARKET VALUATIONS/VOLATILITY REGIME/ OPTIONS ACTIVITY AND OMICRON'S ANTICIPATED IMPACT ON THE MARKETS
HOW IS EARNINGS SEASON SHAPING UP AND INFORMATION ON THE NEWEST EARNINGS TRADES REPORT
OCTOBER OPTIONS VOLUME NUMBERS FROM OCC

OPTIONS 101 SEGMENT

WHAT IS THE BEST WAY TO PAY FOR YOUR PUTS RIGHT NOW? PUT SPREADS? COLLARS? SOMETHING ELSE?

OFFICE HOURS SEGMENT

THOUGHTS ABOUT WHEEL TRADES IN BITO

HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
CO-HOST: MATT AMBERSON, OPTION RESEARCH & TECHNOLOGY SERVICES
GUEST: PETER MONTGOMERY, CARRICK LANE

THE BUZZ

THOUGHTS ON CURRENT MARKET VALUATIONS/VOLATILITY REGIME/ OPTIONS ACTIVITY
HOW IS EARNINGS SEASON SHAPING UP COMPARED TO PREVIOUS SEASONS
SEPTEMBER OPTIONS VOLUME NUMBERS FROM OCC
ADVISORS CAN NOW TRADE BITCOIN OPTIONS WITH PROSHARES NEW ETF

OFFICE HOURS SEGMENT

WHAT IS THE MAJOR ISSUE PREVENTING FINANCIAL ADVISORS FROM RECOMMENDING OR USING OPTIONS WITH THEIR CLIENTS RIGHT NOW

HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
CO-HOST: MATT AMBERSON, OPTION RESEARCH & TECHNOLOGY SERVICES
GUEST: MARK PHILLIPS, HARVESTED FINANCIAL

THE BUZZ

THOUGHTS ON CURRENT MARKET VALUATIONS/VOLATILITY REGIME/ OPTIONS ACTIVITY
HOW IS EARNINGS SEASON SHAPING UP COMPARED TO PREVIOUS SEASONS
AUGUST OPTIONS VOLUME NUMBERS FROM OCC
SIFMA MID YEAR UPDATES ON INVESTORS AND RETIREMENT ASSETS
FIDELITY ROLLS OUT FRACTIONAL SHARE TRADING FOR ADVISORS

OFFICE HOURS SEGMENT

ANSWERING YOUR QUESTIONS ON PORTFOLIO STRATEGIES THROUGH THE END OF THE YEAR AND THOUGHTS ON BLACKROCK TAKING MINORITY STAKE IN SPIDERROCK

HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
CO-HOST: MATT AMBERSON, OPTION RESEARCH & TECHNOLOGY SERVICES
GUEST: GARY FRANKLIN, RAYMOND JAMES

THE BUZZ

THOUGHTS ON CURRENT MARKET ENVIRONMENT
HOW IS EARNINGS SEASON SHAPING UP COMPARED TO PREVIOUS SEASONS
JULY OPTIONS VOLUME NUMBERS FROM OCC
MID YEAR GLOBAL DERIVATIVES NUMBERS FROM FIA
THE END OF PAYMENT FOR ORDER FLOW?

OFFICE HOURS SEGMENT

ANSWERING YOUR QUESTIONS ABOUT COLLAR STRATEGIES.

HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
CO-HOST: MATT AMBERSON, OPTION RESEARCH & TECHNOLOGY SERVICES
GUEST: CHRIS HAUSMAN, SWAN GLOBAL MANAGEMENT

THE BUZZ

THOUGHTS ON CURRENT MARKET ENVIRONMENT
EARNINGS SEASON VOLATILITY UPDATE
JUNE OPTIONS VOLUME NUMBERS FROM OCC

OPTIONS 101: REVISITING RATIO SPREADS

WHAT IS IT
EXAMPLES
WHY IS IT SO USEFUL FOR ADVISORS
WHEN TO USE THEM / NOT TO USE THEM
USING RATIO SPREADS IN VIX

OFFICE HOURS SEGMENT

ANSWERING YOUR QUESTIONS ABOUT A REALISTIC ALLOCATION TO OPTIONS IN A 60/40 PORTFOLIO, HOW ADVISORS CAN IMPLEMENT OPTIONS TECHNIQUES UTILIZING CRYPTO OPTIONS AND IF THEY SHOULD DO SO..

HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
CO-HOST: MATT AMBERSON, OPTION RESEARCH & TECHNOLOGY SERVICES
GUEST: MIKE TOSAW, ST. CHARLES WEALTH MANAGEMENT

THE BUZZ

THOUGHTS ON CURRENT MARKET ENVIRONMENT
DOES THE ROBINHOOD STILL HAS AN EFFECT ON THE OPTIONS MARKET
EARNINGS SEASON VOLATILITY UPDATE

OPTIONS 101: THE COLLAR REVISITED

BREAKING DOWN THE HOLY GRAIL POSITION FOR FINANCIAL ADVISORS
WHAT IS IT
EXAMPLES
WHY IS IT SO USEFUL FOR ADVISORS
OPTIMAL STRUCTURE FOR A COLLAR
HOW DO YOU CHANGE THE STRUCTURE FOR CLIENTS WHO DON'T WANT TO PAY TAXES
OIC COLLAR STUDY ACROSS SEGMENTS

OFFICE HOURS SEGMENT

ANSWERING YOUR QUESTIONS ABOUT OVERLAYING STRATEGIES AND IMPLEMENTING HIGH-WORTH STRATEGIES FOR SMALLER RETAIL ACCOUNTS

HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
CO-HOST: MATT AMBERSON, OPTION RESEARCH & TECHNOLOGY SERVICES
GUEST: RUSSELL RHOADS, KELLEY SCHOOL OF BUSINESS / EQ DERIVATIVES

THE BUZZ

THOUGHTS ON CURRENT MARKET ENVIRONMENT
INFLATION, FED, GOLD, SILVER, CRYPTO
ROBINHOOD STILL HAS AN EFFECT ON THE MARKETPLACE
SECTOR ANALYSIS OF IMPLIED VOLATILITY LEVELS
EARNINGS SEASON VOLATILITY UPDATE

THE BUZZ SEGMENT

LOOKING AT A WAY OUT OF THE MONEY CALL STRATEGY BASED ON HISTORICAL VOLATILITY VALUATION
TOTAL OPTIONS VOLUME FOR APRIL
IS SELL IN MAY AND GO AWAY DEAD

OFFICE HOURS SEGMENT

ANSWERING YOUR QUESTIONS ABOUT SELLING COVERED CALLS, PUT CREDIT SPREADS AND LADDERING INTO A SHORT STRADDLE

HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
CO-HOST: MATT AMBERSON, OPTION RESEARCH & TECHNOLOGY SERVICES
GUESTS: STEVE SEARS AND MICHAEL OYSTER, OPTIONS SOLUTIONS

THE BUZZ

THOUGHTS ON CURRENT MARKET ENVIRONMENT
ROBINHOOD STILL HAS AN EFFECT ON THE MARKETPLACE
ARE WE ENTERING A NEW VOLATILITY REGIME
EARNINGS SEASON VOLATILITY UPDATE

OPTIONS 101 - THE COVERED CALL

THE GO-TO OPTIONS STRATEGY FOR MOST FINANCIAL ADVISORS - WHAT IS IT
PROS AND CONS
THE COVERED CALL AS A DIVIDEND DOESN'T GET THE RESPECT THAT IT DESERVES

THE BUZZ SEGMENT

AUTO TRADING AND PAPER TRADING STRATEGIES
TOTAL OPTIONS VOLUME FOR MARCH

OFFICE HOURS SEGMENT

ANSWERING YOUR QUESTION WHY SELL COVERED CALS SHORTER TERM

HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
CO-HOST: MATT AMBERSON, OPTION RESEARCH & TECHNOLOGY SERVICES
GUEST: JON CHERRY, NORTHERN TRUST

THE BUZZ

THOUGHTS ON CURRENT MARKET ENVIRONMENT
INFLATION AND THE EQUITIES MARKET
GME CHANGED THE VOLATILITY SKEW OF THE MARKETPLACE
EARNINGS SEASON VOLATILITY UPDATE
MORGAN STANLEY TO OFFER BITCOIN FUNDS TO WEALTHIEST CLIENTS

OPTIONS 101 - OPTIONS TRADING STRATEGY DEVELOPMENT

FINDING AN OPTIONS STRATEGY THAT MEETS YOUR INVESTMENT OBJECTIVES

OFFICE HOURS SEGMENT

ANSWERING YOUR QUESTIONS ABOUT STRIKES, DELTA AND OPTION PREMIUM; INDEX OPTIONS EXPIRING IN THE MONEY AND MORE

HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
CO-HOST: MATT AMBERSON, OPTION RESEARCH & TECHNOLOGY SERVICES

THE BUZZ

THOUGHTS ON CURRENT MARKET ENVIRONMENT
IS THE VIX IN A BUBBLE
EARNINGS SEASON VOLATILITY UPDATE
JANUARY OPTIONS VOLUME NUMBERS FROM OCC
SEC DURING NEW ADMIN EXPECTED TO FOCUS ON ADVISORS & BROKERS
MICHAEL BOLTON’S NEW SONG “BREAK UP WITH YOUR BROKERAGE”

OFFICE HOURS SEGMENT

ANSWERING YOUR QUESTION ABOUT CALENDAR SPREADS AND EARNINGS

HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
CO-HOST: MATT AMBERSON, OPTION RESEARCH & TECHNOLOGY SERVICES\
GUEST HOST: MIKE TOSAW, ST CHARLES WEALTH MANAGEMENT

THE BUZZ

THOUGHTS ON CURRENT MARKET ENVIRONMENT
EARNINGS SEASON VOLATILITY 2020 IN REVIEW
EARNINGS SEASON EXPECTATIONS FOR 2021
RECORD YEAR IN OPTIONS ACCORDING TO OCC
ADVISORS FRUSTRATED BY SERVICE DELAYS/OUTAGES WITH BROKERS
HOW ADVISORS ARE WORKING WITH CRYPTO

OPTIONS 101: SHORT SQUEEZES

HOW TO AVOID GETTING CLIENTS CAUGHT IN RAMPANT SHORT SQUEEZES WHEN SELLING OPTIONS

HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
CO-HOST: MATT AMBERSON, OPTION RESEARCH & TECHNOLOGY SERVICES
CO-HOST: CHRIS HAUSMAN, SWAN GLOBAL INVESTMENTS

WE BREAK DOWN ALL OF THE CRAZY HIGHS AND TUMULTUOUS LOWS THAT AFFECTED ADVISORS IN THE INSANE YEAR THAT WAS 2020.

HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
CO-HOST: MATT AMBERSON, OPTION RESEARCH & TECHNOLOGY SERVICES
CO-HOST: CHRIS HAUSMAN, SWAN GLOBAL INVESTMENTS

THE BUZZ

THOUGHTS ON CURRENT MARKET ENVIRONMENT
EARNINGS SEASON VOLATILITY BREAKDOWN
THE ADVISORY INDUSTRY 2020
THE 60/40 PORTFOLIO
RUSSELL 2000 SMALL CAPS PUSH HIGHER

OPTIONS 101: STOCK SUBSTITUTION

WHAT IS IT
WHEN TO USE IT

OFFICE HOURS

ANSWERING YOUR QUESTIONS ON VARIANTS ON DRS, OPTIONS ORIENTED FUNDS AND COVERED CALLS.

HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
CO-HOST: MATT AMBERSON, OPTION RESEARCH & TECHNOLOGY SERVICES
CO-HOST: CHRIS HAUSMAN, SWAN GLOBAL INVESTMENTS

THE BUZZ

THOUGHTS ON CURRENT MARKET ENVIRONMENT
PRE/POST ELECTION VOLATILITY
EARNINGS VOLATILITY BREAKDOWN

OPTIONS 101: HEDGING EVENT RISK

EXPLORING HOW ADVISORS AND ASSET MANAGERS SHOULD HEDGE THE ELECTION AND OTHER SPECIFIC EVENT RISK
SECRET TIPS FOR HOW TO PROTECT YOUR PORTFOLIO AGAINST MARKET SHOCKS

OFFICE HOURS

ANSWERING YOUR QUESTIONS ON ELECTION MOVE RESULTS AND ELECTION VOLATILITY HEDGING

AO 95: CRIMINAL ENTERPRISES AND EVIL CLONE ARMIES

HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
CO-HOST: MATT AMBERSON, OPTION RESEARCH & TECHNOLOGY SERVICES
CO-HOST: CHRIS HAUSMAN, SWAN GLOBAL INVESTMENTS
CO-HOST: ERIC COTT, OPTIONS INDUSTRY COUNCIL

THE BUZZ

BREAKING DOWN CURRENT MARKET VOLATILITY LEVELS
VIX FUTURES CURVE
OCC OPTIONS VOLUME NUMBERS FOR AUGUST
FED CHANGED THE GAME WITH AVERAGE INFLATION TARGETING
JP MORGAN SET TO PAY RECORD SPOOFING PENALTY
CITI CLOSES MARKET MAKING BUSINESS IN RETAIL OPTIONS
NEW STOCK EXCHANGES JUST LAUNCHING TO COMPETE FOR YOUR BUSINESS
GLOBAL X ETFS ADD TO COVERED CALL SUITE WITH FUNDS DESIGNED TO BALANCE INCOME AND GROWTH

OFFICE HOURS

ANSWERING YOUR QUESTIONS ON:

ROBINHOOD EARNINGS AFTER TRADER SUICIDE
THE UNDER PERFORMANCE OF EARNINGS STRADDLES DUE TO RUN UP INTO THE EVENT
ADDITIONAL CERTIFICATE PROGRAMS FROM OCC IN 2020
THE VOLATILITY TERM STRUCTURE AROUND THE ELECTION
NUMBER OF ADVISORS USING OPTIONS

AO 94: 2020 - THE YEAR OF FATTER TAILS AND VOLATILITY MULLETS

HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
CO-HOST: MATT AMBERSON, OPTION RESEARCH & TECHNOLOGY SERVICES
CO-HOST: CHRIS HAUSMAN, SWAN GLOBAL INVESTMENTS
CO-HOST: ERIC COTT, OPTIONS INDUSTRY COUNCIL

THE BUZZ

BREAKING DOWN CURRENT MARKET VOLATILITY LEVELS
HOW TO AVOID BLOWING UP YOUR TRADING ACCOUNT USING OPTIONS
ZERO-COST COLLARS AS A HOT TOPIC AMONG ADVISORS RIGHT NOW
THE POPULAR MULLET/TELLUM TRADING STRATEGIES FOR VIX FUTURES
UPDATE ON THE WORST EARNINGS SEASON FOR OPTIONS
LOOKING BACK AT SOME OF THE HOT VOLATILITY EVENTS FROM THIS EARNINGS SEASON INCLUDING TSLA, AAPL, FB, AMZN, GOOGL
DISCUSSING THE NEW ADDITIONS TO THE VOL SPACE FROM NASDAQ, CMEGROUP AND CBOE
THE SHAKEOUT IN THE ETF INDUSTRY IS ACCELERATING

OFFICE HOURS

ANSWERING YOUR QUESTIONS ON

THE USEFULNESS OF THE SERIES 7 EXAM VS. CFA EXAM FOR OPTIONS TRADERS
THOUGHTS OF VOLATILITY BUMP AROUND ELECTION
WAYS TO FIND AN ADVISOR WHO USES OPTIONS

AO 93: THE MOTHER OF ALL RECOVERIES

HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
CO-HOST: MATT AMBERSON, OPTION RESEARCH & TECHNOLOGY SERVICES
CO-HOST: CHRIS HAUSMAN, SWAN GLOBAL INVESTMENTS
CO-HOST: ERIC COTT, OPTIONS INDUSTRY COUNCIL

THE BUZZ

THOUGHTS ON CURRENT MARKET/VOLATILITY REGIME
OVERVIEW OPTIONS VOLUME BY OCC FOR JUNE & JULY
OCC SEEKING REGULATORY APPROVAL TO SET MIN AMOUNT OF SKIN-IN-THE-GAME TO REDUCE COSTS FOR TRADERS IN US EQUITY DERIVATIVES MARKETS.
WHY VIX ISN’T DOING GREAT RIGHT NOW
UPDATE ON BLOODY EARNINGS SEASON
DISCUSSING THE ROBINHOOD EARLY ASSIGNMENT TRAGEDY

OFFICE HOURS

ANSWERING YOUR QUESTIONS ON SERIES 7 EXAM AND CONSTRUCTING A SHORT RATIO PUT SPREAD TO HEDGE A LONG EQUITY PORTFOLIO.

AO 92: THE SUCKER AT THE TABLE

HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
CO-HOST: MATT AMBERSON, OPTION RESEARCH & TECHNOLOGY SERVICES
CO-HOST: CHRIS HAUSMAN, SWAN GLOBAL INVESTMENTS
CO-HOST: ERIC COTT, OPTIONS INDUSTRY COUNCIL

THE BUZZ

YET ANOTHER HISTORIC MONTH FOR THE MARKETS
ARE WE SEEING THE NEXT WAVE OF PANDEMIC SELLOFFS
THOUGHTS ON CURRENT MARKET/VOLATILITY REGIME
OVERVIEW OPTIONS VOLUME BY OCC FOR MONTH
FREE TRADES, JACKPOT DREAMS LURE SMALL INVESTORS TO OPTIONS
CBOE RESUMES OPEN OUTCRY TRADING
DESCRIBING THE IMPLIED VOLATILITY OPTIONS SURFACE
CREDIT SUISSE GETS OUT OF THE LEVERED ETN BUSINESS - TVIX IS NO MORE
AN $18 BILLION DEBT ETF POWERS REVAMP OF VIX-LIKE RATES GAUGE
SCHWAB-TD MERGER WINS SHAREHOLDER APPROVAL - HOW DOES THIS IMPACT ADVISORS

AO 91: The End of the V-Shaped Recovery?

HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
CO-HOST: MATT AMBERSON, OPTION RESEARCH & TECHNOLOGY SERVICES
CO-HOST: CHRIS HAUSMAN, SWAN GLOBAL INVESTMENTS
CO-HOST: ERIC COTT, OPTIONS INDUSTRY COUNCIL

THE BUZZ

THE MARKETS ARE ALMOST BACK TO PRE-CORONA LEVELS
THOUGHTS ON CURRENT MARKET/VOLATILITY REGIME
OVERVIEW OF NEW VOLUME RECORDS SET BY OCC - APRIL 2020 TOTAL VOLUME UP 42.9% FROM A YEAR AGO
DISCUSSION ON RIAS AND FAS INTEREST IN ALPHA STRATEGIES WITH MARKETS ON THE RISE BUT ALSO INQUIRING ABOUT PROTECTIVE SOLUTIONS.
COVERED CALL STUDY ON THE SP500 - WHAT ARE THE BEST WAYS TO SELL COVERED CALLS
THREE WAYS TO RETAIN CLIENTS DURING A CRISIS
EARNINGS GROWTH CONSENSUS ESTIMATES CONTINUE TO TUMBLE
JP MORGAN CLOSING ALTS ETF LINEUP

OFFICE HOURS

QUESTION FROM NIELSEN: HAS THE RISK DIRECTOR EVER TRIED TO IMPLEMENT THE DEFINED RISK STRATEGY ON OTHER INDICES ASIDE FROM THE SPX? HOW DOES IT PERFORM ON MORE VOLATILE INDICES LIKE NASDAQ AND RUSSELL 2000? SEEMS LIKE THERE WOULD BE LOTS OF DEMAND IN THOSE PRODUCTS.
QUESTION FROM MILTON: WILL WE SEE MORE FLOW NOW THAT THE FLOORS ARE COMING BACK?

AO 90: DO PUTS REALLY WORK

HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
CO-HOST: MATT AMBERSON, OPTION RESEARCH & TECHNOLOGY SERVICES
CO-HOST: CHRIS HAUSMAN, SWAN GLOBAL INVESTMENTS
CO-HOST: ERIC COTT, OPTIONS INDUSTRY COUNCIL

THE BUZZ

YET ANOTHER HISTORIC MONTH FOR THE MARKETS
THOUGHTS ON CURRENT MARKET/VOLATILITY REGIME
CANCELLATION OF DIVIDENDS?
FURTHER THOUGHTS ON IMPACT OF ELECTRONIC SPX ON LIQUIDITY
IMPACT OF FLOOR CLOSINGS ON OPTIONS TRADING
OVERVIEW OF NEW VOLUME RECORDS SET BY OCC - OCC MARCH TOTAL VOLUME UP 62.8 PERCENT FROM A YEAR AGO - HIGHEST VOLUME MONTH EVER FOR U.S. EQUITY OPTIONS INDUSTRY
WHAT ARE ADVISORS THINKING ABOUT THIS MARKET?
HOW RIAS CAN USE OPTIONS TO IMPROVE PERFORMANCE
ARE PUTS EFFICIENT AT PROTECTING DOWNSIDE RISK?
EARNINGS VOLATILITY: EARNINGS SEASON RUNDOWN

OFFICE HOURS

QUESTION FROM GLEN WOLF: HI MATT, I LISTENED TO MARK LONGO'S OPTIONS ADVISORS PODCAST. IF I HEARD RIGHT, YOU PREDICTED WE WOULD GO DOWN TO 180 ON SPY, AS THAT WAS THE 2016 ELECTION LOW. IS THAT THE EQUIVALENT OF WHAT THE SPY WOULD HAVE TRADED AT BASED ON SPX FUTURES OVERNIGHT ON ELECTION NIGHT? JUST LOOKING AT THE SPY CHART, I DON'T SEE A 180 LOW AROUND NOVEMBER 2016. BUT MAYBE IT'S BECAUSE IT'S A MONTHLY CHART OR SOMETHING. THANK YOU, GREATLY APPRECIATE YOUR INSIGHT.
COMMENT FROM ANGELO: LOOKS LIKE THE ACKMAN HEDGE WORKED OUT BRILLIANTLY. MAYBE THIS WILL BE A WAKEUP CALL TO MORE LONG EQUITY MANAGERS THAT THEY NEED TO HAVE A HEDGING STRATEGY IN PLACE OTHER THAN LIQUIDATING THEIR ASSETS.
QUESTION FROM ELDORADO: DO YOU SEE A LOT OF PUSHBACK FROM ADVISORS WHO PREFER TO USE INVERSE ETFS AS THEIR HEDGING STRATEGY AS OPPOSED TO OPTIONS? THANK YOU.

AO 89: The Rise of Pandemic Volatility

HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
CO-HOST: MATT AMBERSON, OPTION RESEARCH & TECHNOLOGY SERVICES
CO-HOST: CHRIS HAUSMAN, SWAN GLOBAL INVESTMENTS
CO-HOST: ERIC COTT, OPTIONS INDUSTRY COUNCIL

THE BUZZ

A HISTORIC WEEK/MONTH FOR THE MARKETS
THOUGHTS ON CURRENT MARKET/VOLATILITY REGIME
IMPACT OF ELECTRONIC SPX ON LIQUIDITY
OVERVIEW OF NEW VOLUME RECORDS SET BY OCC - OCC FEBRUARY TOTAL VOLUME UP 60.7 PERCENT FROM A YEAR AGO - HIGHEST VOLUME MONTH EVER FOR U.S. EQUITY OPTIONS INDUSTRY
WHAT ARE ADVISORS THINKING ABOUT THIS MARKET
EARNINGS VOLATILITY: EARNINGS SEASON RUNDOWN

OPTIONS 101: LONG STRADDLES

THE STRATEGY THAT WE LOVE TO MOCK IS ACTUALLY WORKING RIGHT NOW
THAT JUST GOES TO SHOW HOW CRAZY THINGS NEED TO BE TO MAKE MONEY ON LONG STRADDLES
WHAT IS IT
THOUGHTS/TIPS FOR TRADING LONG STRADDLES
WHY ARE STRADDLES WORKING RIGHT NOW

OFFICE HOURS

QUESTION FROM TILLE: THE NEW TAX DEADLINE IS JULY 15. DOES THAT MEAN THE NEW IRA CONTRIBUTION DEADLINE IS ALSO JULY 15?
QUESTION FROM ALLEN: WHEN CORPORATIONS ANNOUNCE MASSIVE SURPRISE DIVIDENDS IS THIS ACCOUNTED FOR IN THE OPTIONS? OR IS THERE AN OPPORTUNITY TO PURCHASE PUTS TO TAKE ADVANTAGE OF THE EXPECTED SELLOFF IN THE UNDERLYING STOCK. THANK YOU.
QUESTION FROM NNJ66: WHAT HAPPENS IF THE STOCK IS HALTED OR EXCHANGES ARE SHUT DOWN WHEN I OWN PUTS?
QUESTION FROM EVERYTRADE: QUESTION FOR AO. HELLO. MY QUESTION IS FOR THE ADVISORS OPTION PROGRAM. I WOULD LIKE TO KNOW WHEN IS THE BEST TIME TO TAKE OFF A LONG PUT POSITION ON A STOCK? WHEN THE STOCK HITS THE STRIKE? BEFORE. AFTER? THANK YOU VERY MUCH.

AO 88: How to Hedge a Pandemic

Host: Mark Longo, The Options Insider
Co-Hosts: Matt Amberson - ORATS
Chris Hausman - Swan Global Investments
Eric Cott - OIC

The Buzz

We explore whether the current level of pandemic volatility is here to stay and what that means for your client's portfolios.

Options 101

We explore a variety of pandemic hedging strategies and how to pay for them.

Office Hours

We answer your questions about crypto options and more.

The Advisors Option 87: Pandemic Volatility Plus 3 Strategies You Need to Know

HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
CO-HOST: MATT AMBERSON, OPTION RESEARCH & TECHNOLOGY SERVICES
CO-HOST: CHRIS HAUSMAN, SWAN GLOBAL INVESTMENTS

THE BUZZ

THOUGHTS ON CURRENT PANDEMIC VOLATILITY ENVIRONMENT - DOW PLUNGES 454 POINTS AS FEARS ABOUT CORONAVIRUS RATTLE INVESTORS
EARNINGS SEASON UPDATE
CME FINALLY LAUNCHES BITCOIN OPTIONS - AN IMPORTANT STEP IN FINALLY MAKING CRYPTO ACCESSIBLE TO RIAS AND ASSET MANAGERS.
JUDGE DISMISSES WALL STREET 'FEAR GAUGE' LAWSUIT AGAINST CBOE

TRICKS OF THE TRADE

INSPIRED BY THIS LISTENER QUESTION:

QUESTION FROM TELNER6: WHAT ARE THE THREE STRATEGIES THAT YOU FEEL EACH ADVISOR SHOULD HAVE IN HIS BACK POCKET FOR WHEN CLIENTS ASK ABOUT OPTIONS?

OFFICE HOURS

COMMENT FROM NETTLES: THX FOR THIS SHOW. LOVE IT.
QUESTION FROM ED MARTIN: I ENJOY ALLOCATING APPROX. 10% OF MY CLIENTS PORTFOLIOS TO PRECIOUS METALS - PARTICULARLY GOLD. I FIND IT TO BE A USEFUL DIVERSIFICATION TOOL FOR LONG EQUITY PORTFOLIOS. YOU’VE RECOMMENDED USING SHORT PUTS AS AN ENTRY TOOL FOR EQUITIES IN THE PAST. CAN THIS SAME STRATEGY BE UTILIZED IN A COMMODITY ETF LIKE GLD? ARE THERE ANY CAVEATS OR PITFALLS I SHOULD WATCH OUT FOR? WOULD I BE BETTER OFF WRITING OPTIONS ON THE FUTURES?
QUESTION FROM AJ HERNANDEZ: ESG IS ALL THE RAGE IN THE INVESTING WORLD RIGHT NOW. HAS THIS HAD ANY SPILLOVER INTO OPTIONS YET? CAN I BUY ESG OPTIONS?
QUESTION FROM CONSTANTINE: WHY ARE THERE SO FEW OPTIONS BASED FUND MANAGERS OUT THERE TODAY?
QUESTION FROM ANGELO: I CAN TRADE COVERED CALLS IN MY CLIENTS RETIREMENT ACCOUNTS. CAN I ALSO TRADE CASH-SECURED PUTS TO INITIATE LONG EQUITY POSITIONS?

HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
CO-HOST: MATT AMBERSON, PRINCIPAL, OPTION RESEARCH & TECHNOLOGY SERVICES
CO-HOST: CHRIS HAUSMAN, PORTFOLIO MANAGER, MANAGING DIRECTOR OF RISK, SWAN GLOBAL INVESTMENTS
CO-HOST: ERIC COTT: DIRECTOR OF ADVISOR EDUCATION, OIC

LOOKING BACK ON 2019

PAYING OFF OUR 2019 PREDICTIONS FROM LAST YEAR’S SHOW: WHAT WERE THE HOTTEST OPTIONS STORIES/DEVELOPMENTS/EVENTS OF 2019 FOR ADVISORS?

MUTUAL FUNDS THAT USE OPTIONS | BLACK SZADO STUDY - HTTPS://WWW.BORNTOSELL.COM/COVERED-CALL-BLOG/MUTUAL-FUNDS-THAT-USE-OPTIONS - THE NUMBER OF OPTIONS-BASED FUNDS GREW FROM 10 IN 2000 TO 119 IN 2014. IN 2019, BELIEVE IT’S OVER 140. DO WE HIT OVER 200 IN 2020?
OPTIONS VOLUME CAN’T MATCH THE RECORD PACE OF 2018
THE COMMISSION WAR HIT NEW HEIGHTS IN 2019
FEWER HEADLINE-MAKING IMPLOSIONS OF OPTIONS-ORIENTED FUNDS DUE TO POOR RISK CONTROLS.

LOOKING AHEAD TO 2020?

OPTIONS-BASED FUNDS OFFER SUCCOR TO INVESTORS WARY OF VOLATILITY - HTTPS://WWW.REUTERS.COM/ARTICLE/US-USA-FUNDS-VOLATILITY-IDUSKCN1RF2HF - MORE OPTIONS CENTRIC FUNDS TO BE LAUNCHED ??
2020 VOLATILITY OUTLOOK: CME SENIOR ECONOMIST RECENTLY CAME ON THIS NETWORK AND PREDICTED “MUCH MUCH HIGHER VOLATILITY FOR THE 2020’S VS THE 2010’S”. AGREE? DISAGREE?
THOUGHTS ON 202 OPTIONS VOLUME - HIGHER OR LOWER THAN 2018?

OFFICE HOURS

QUESTION FROM LAMBERT: IS THERE A GOOD PLACE FOR A LIST OF OPTIONS-ORIENTED ADVISORS?
QUESTION FROM DAVE MARTIN: WHY NO POSTS FROM THE DIRECTOR OF RISK ON WWW.SWANGLOBALINVESTMENTS.COM
QUESTION FROM SAMUELSON: HELLO AO! I KNOW YOU ALL HAD OPINIONS ON THE DEMISE OF XIV AND THE SHORT VOLATILITY TRADING THAT LED TO IT. WHAT ARE YOUR THOUGHTS ON THIS POTENTIAL NEW PRODUCT? DOES THIS THING HAVE A CHANCE OF GETTING LISTED? RE: THIS ARTICLE - HTTPS://WWW.BLOOMBERG.COM/NEWS/ARTICLES/2019-12-12/GHOST-OF-XIV-RISES-A-NEW-SHORT-VOL-PRODUCT-IS-IN-THE-PIPELINE
QUESTION FROM BWARD: ANY PLANS FROM THE OIC TEAM TO REVISIT THEIR COLLAR STUDY? GREAT SHOW.
QUESTION FROM EL IDOLO: HOW DO I GAIN ACCESS TO THE STUDY OF ADVISORS USE CASES FOR OPTIONS MENTIONED ON THE PROGRAM? OIC COLLAR STUDY ACROSS ASSETS - HTTPS://WWW.OPTIONSEDUCATION.ORG/DOCUMENTS/LITERATURE/FILES/OPTIONS-BASED-RISK-MGMT-SUMMARY.PDF

Advisor's Option 85: Options Strategies to Avoid

HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
CO-HOST: MATT AMBERSON, PRINCIPAL, OPTION RESEARCH & TECHNOLOGY SERVICES
CO-HOST: CHRIS HAUSMAN, PORTFOLIO MANAGER, MANAGING DIRECTOR OF RISK, SWAN GLOBAL INVESTMENTS

THE BUZZ

THOUGHTS ON CURRENT MARKET/VOLATILITY CONDITIONS
EARNINGS VOLATILITY: EARNINGS SEASON RUNDOWN

OPTIONS 101: TRICKS OF THE TRADE

INSPIRED BY THIS QUESTION FROM DEREK: Are there any options strategies that you feel RIAs should flat out avoid? Thx and love the earnings reports. Any chance of sector earnings updates - maybe tech earnings or retail earnings?
- RATIO SPREADS/NAKED SHORT UNITS
- DEPENDS ON RIA’S STRATEGY/OUTLOOK?
- DEPENDS ON CLIENT’S RISK TOLERANCE?
- DEPENDS ON MARKET CONDITIONS
- LONG EQUITY MIGHT WANT TO AVOID ADDITIVE SHORT PREMIUM STRATEGIES SUCH AS NAKED SHORT PUTS
- AVOID OVERLY COMPLEX/TIME CONSUMING POSITIONS LIKE IRON CONDOR SWAPS
- AVOID EXTREMELY SHORT-TERM POSITIONS LIKE WEEKLIES UNLESS YOU HAVE TIME TO COMMIT TO POSITION MANAGEMENT.

OFFICE HOURS

QUESTION FROM CROSBY: I don’t get why people are saying commissions have gone to zero when they are clearly still sixty-five cents a contract. Am I crazy?
COMMENT FROM BRIAN CAMBELL: I complained about the fees per contract for my fund to td and they “generously” offered me $.65. Next thing I know they are offering the same “deal” to the world. So much for my special rate.
QUESTION FROM NELSON: Do large option players like Swan still pay $.65 per contract for their options trades?
QUESTION FROM MRMEZ: Should I be concerned that nearly a quarter of all options-based funds were launched last year? Not exactly a strong track record.
- RE: MORNINGSTAR OPTIONS-BASED FUND RATINGS
- From the calamos breakdown of morningstar funds
- https://www.calamos.com/blogs/investment-ideas/understanding-the-options-based-funds-category-infographic/
QUESTION FROM CRLANE: Thank you for creating this network and for providing quality content like the Advisors Option. It is my constant companion at my office. *My question is for the Director of Risk. I understand that they offer their DRS strategy using the SPX. I would like to know if they have evaluated this approach for other indices like nasdaq or russell? Does the different volatility structure of those products make them more or less suitable for the two year vs 1 month approach of the DRS. Thank you.
QUESTION FROM MILES: What the best options conference for advisors?
QUESTION FROM TONY KYLE: What are the panelists thoughts on annuities? Sales appear to be soaring. What does this mean for the options market? Is this really just a way to get indirect derivatives exposure without diving into the deep end. Does this hurt options volume and growth?
- Sales of Variable Indexed Annuities Shine
- Re: This link: https://www.thinkadvisor.com/2019/11/19/sales-of-variable-indexed-annuities-shine-institute/
QUESTION FROM PATRIC: If I want to buy an option during earnings season should I buy it early or right before the announcement?
QUESTION FROM SLAIP: What is the minimum trade size for a flex order? I’d like to construct something approx. 5 years out in spx 20% OTM Calls.
QUESTION FROM INTHEBOATHOUSE: Why do so few funds offer optionality? Outside of the swan drs and gateway there are only a few others that have any substantial aum or history. Why such a sparse playing field
COMMENT FROM Tom Madison: RIAs should get CE credits for listening to this show. It’s amazing. You guys rock.

HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
CO-HOST: MATT AMBERSON, PRINCIPAL, OPTION RESEARCH & TECHNOLOGY SERVICES
CO-HOST: CHRIS HAUSMAN, PORTFOLIO MANAGER, MANAGING DIRECTOR OF RISK, SWAN GLOBAL INVESTMENTS

THE BUZZ

THOUGHTS ON CURRENT MARKET/VOLATILITY CONDITIONS
EARNINGS VOLATILITY: EARNINGS SEASON IS BACK
MATT’S RECENT APPEARANCE AT THE DALLAS ALTS CONFERENCE
FREE TRADING SHAKES UP THE BROKERAGE/OPTIONS WORLD
ZERO COMMISSIONS AND ADVISORS

OPTIONS 101: EXPENSIVE COMMISSION TRADES

INSPIRED BY THIS QUESTION FROM ROBERT: Now that commissions are gone are there any trades that are back on the table that would have previously been just too expensive
- BUTTERFLY
- IRON BUTTERFLY
- IRON CONDOR

OFFICE HOURS

QUESTION FROM Erik Norstedt: Hi Mark, Great show! With some of the major brokers offering no trading fees do you think this will lead to an increase in volatility since traders can trade more?
QUESTION FROM PICODEGAULLO: Has matt from orats ever thought about putting out some sort of tradeable earnings vol product? I for one would use it.
QUESTION FROM MALLE: Are the swan crew planning to expand drs to crypto when the options list in Q1?

HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
CO-HOST: MATT AMBERSON, PRINCIPAL, OPTION RESEARCH & TECHNOLOGY SERVICES
CO-HOST: CHRIS HAUSMAN, PORTFOLIO MANAGER, MANAGING DIRECTOR OF RISK, SWAN GLOBAL INVESTMENTS

THE BUZZ

CHRIS: OVERVIEW OF YOUR PRESENTATION FROM RMC AND INTERESTING TAKEAWAYS FROM RMC OVERALL.
MATT:

OPTIONS 101: BOOSTING INCOME FROM YOUR PORTFOLIO

THE GOLD STANDARD - AKA THE COVERED CALL
SHORT PUTS
COVERED COMBO
COLLAR

OFFICE HOURS

QUESTION FROM PLC4: Is there such a thing as too much hedging? How many puts or how much of my portfolio should I allocate toward this strategy?
QUESTION FROM ELIWAVE: What are your opinions of binary options as a viable hedging or speculative vehicle against client long equity portfolios?

HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
CO-HOST: MATT AMBERSON, PRINCIPAL, OPTION RESEARCH & TECHNOLOGY SERVICES
CO-HOST: CHRIS HAUSMAN, PORTFOLIO MANAGER, MANAGING DIRECTOR OF RISK, SWAN GLOBAL INVESTMENTS

THE BUZZ

THOUGHTS ON THE CURRENT MARKET/VOLATILITY ENVIRONMENT
CATCH US UP ON EARNINGS SEASON - ANY SURPRISES THIS CYCLE?

OPTIONS 101: PREPPING FOR THE RETURN OF VOLATILITY?

THIS IS NORMALLY THE SEASON WHEN VOLATILITY RETURNS TO THE MARKET AFTER THE SLEEPY DOG DAYS OF SUMMER.
HOWEVER, THE ESCALATING TRADE WAR HAS THROWN A WRENCH INTO THE WORKS BY ELEVATING VOLATILITY ACROSS THE BOARD.
THIS IS STILL A GOOD SEASONAL TIME TO DO AN OVERVIEW OF THE OFFERINGS AVAILABLE IN THE VOLATILITY COMPLEX
“STRAIGHT VOLATILITY”
SPX VOLATILITY PRODUCTS - AKA VIX
SPY VOLATILITY PRODUCTS - AKA SPIKE OPTIONS
VOLATILITY ETPS - VXX, SVXY AND TVIX
HUGE ISSUES WITH BUYING AND HOLDING ALL OF THESE DUE TO THE NEGATIVE ROLL YIELD IMPACTING MOST OF THEM.
OTHER THOUGHTS/SUGGESTIONS ON WAYS THAT ADVISORS CAN TRADE/HEDGE VOLATILITY FOR THEIR CLIENTS?

SUMMERTIME MAIL BAG PALOOZA SEGMENT PART 2

QUESTION FROM SERGEI: Hello! Thoughts please on this article from bloomberg on the options volatility. Thank you again. Nomura Says ‘50 Cent’ Has Banks Scrambling for VIX Hedges - https://ca.finance.yahoo.com/news/nomura-says-50-cent-wall-123747682.html
COMMENT FROM JOE V: This might be the best indicator of all time!
QUESTION FROM ALLEN SIDMUND: What is a realistic number of SMAs on which I can expect to actively manage options positions using covered calls and short put spreads before I’ve spread myself too thin and can no longer devote my time to client development and management.
QUESTION FROM 34DLD: Should I limit my options activity to the top 5-10% of my clients with larger equity portfolios and more sophistication to understand the strategies? Will that save me hassle in the long run?
QUESTION FROM NOBETA: Thank you very much for producing such a fine program. I would like to know more about calendar spreads in particular short calendars where the customer sells the longer term contract and buys the shorter term contract. It seems like everyone talks about calendars from the other perspective? Why is that? Do you every use the short calendar in your arsenal. Thanks again and please thank Mark for creating this network.
QUESTION FROM NELSON: Is it realistic to always have a long put against an equity portfolio or is that just too much drag on returns? I've approached this with a few clients and had some embrace it and others push back against the cost.

HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
CO-HOST: MATT AMBERSON, PRINCIPAL, OPTION RESEARCH & TECHNOLOGY SERVICES
CO-HOST: CHRIS HAUSMAN, PORTFOLIO MANAGER, MANAGING DIRECTOR OF RISK, SWAN GLOBAL INVESTMENTS

THE BUZZ

THOUGHTS ON THE CURRENT MARKET/VOLATILITY ENVIRONMENT
CATCH US UP ON EARNINGS VOLATILITY - ANY SURPRISES SO FAR?
TELL US ABOUT THIS AMAZING NEW BOOK “INVESTING REDEFINED” - Particularly this fun radio program mentioned on the dust jacket!

SUMMERTIME MAIL BAG PALOOZA SEGMENT

QUESTION FROM RAYBACK: Director of risk? How do I get a cool title like that?
QUESTION FROM KANELLI: 1. Gun to his head - what earnings trade would matt make? 2. What happened to the earnings reports? No more straddle values or move results reports?
QUESTION FROM HFL9: Would you rather see options on bitcoin futures or more futures listed on more crypto products first?
QUESTION FROM LLN: What products would you like to see on the bitcoin- crypto front?
QUESTION FROM JLSMITH: How important is OI when you’re trading options? Are there other indicators that you focus on instead?
QUESTION FROM GERRILA: What are the AO crew’s thoughts on commodity volatility here? Thinking of using options to expand my client’s exposure to alternatives. What are your preferred starting points? Is it as simple as buying calls or do you prefer futures or call verticals?
QUESTION FROM TIM: I know you’ve expressed concerns about other commodity and volatility etfs like vxx and uso. What your thoughts on using gld and slv instead - my use case would be using bullish risk reversals 1-3 months out to maintain roughly 50 deltas of bullish exposure?
QUESTION FROM LEONGE: Are skew premiums and discounts in gold options also reflected in options on etps that track the products like gld? Very informative program.
QUESTION FROM BOBTON: Where do you think I can make the most meaningful impact to my overall portfolio with options - through income generation, option selling, hedging or speculative buying?
QUESTION FROM MARK GREGG: Hello. I’ve discovered this program recently and found it to be a tremendous resource for myself and my clients. I’m interested in using short call options as a way to generate additional income from a portfolio of high dividend yield equities. Is this a viable approach or are there risks I should consider when adding an income stream to an equity where an income stream already exists. Thank you very much for this fine program.
QUESTION FROM TOMMASSO ANDRETTI: Why don’t they teach this sh$t on the CFA or Series 7? WTH?! This is actually useful unlike 99% of those exams.

THE BUZZ SEGMENT

EARNINGS VOLATILITY BREAKDOWN

ANY INTERESTING TAKEAWAYS FROM THIS SEASON?

THE QUESTION EVERYONE ASKS: WHAT WAS THE WINNER FOR THIS SEASON - LONG OR SHORT PREMIUM?

OPTIONS 101

When to roll covered calls?

What do you do when the stock moves toward your strike?

Do you close? Do you roll? If you roll, when do you do it?

Thoughts on best practices when the stock approaches your short call strike?

THE BUZZ

Takeaways from this year’s OIC conference:

From Eric - Mark did awesome job with Hall of Fame awards, my entrepreneur panel.
OCC May volume up 13.1%

OIC’S new certification program just recently launched. What is it? What types of courses are offered?

OFFICE HOURS

Question from DLVC - Does the SWAN team ever use spy options in their overlays instead of SPX? In general -what are the crew's thoughts on the advantages of smaller contracts like spy or even the new CME micro futures when trading indexes? It certainly seems like there is a growing audience for these products even among larger institutions?

Question from TLRV$4 - I’ve heard you guys discuss collars in the past. Has Matt from ORATS ever tested the optimal construction of a collar? Can he share the secrets with the unwashed masses?

Question from LLN93 - Is there a license or program that certifies someone as a licensed options professional? They could even have different variations like a certified income trader, certified portfolio hedger, etc.

THE BUZZ

Recent market recap: The rise & fall & rise again of volatility.

We’ve seen volatility make a resurgence followed by a fairly dramatic retreat since our last episode. Thoughts on the current market conditions? Thoughts on volatility at these current levels? Is the Fed done for the foreseeable future?

Earnings volatility breakdown - the question everyone is asks: What was the winning for this season - Long or short premium?

Any interesting takeaways from this year’s OIC Conference?

Bernie Sanders revives plan to tax stock, bond and derivatives trades - https://www.bloomberg.com/news/articles/2019-05-22/sanders-revives-plan-to-tax-stock-bond-and-derivatives-trades?utm_campaign=pol&utm_medium=bd&utm_source=applenews

OFFICE HOURS

Question from Brandon JT - Do you think the rash of share buybacks these past few years could be contributing to the volatility in the marketplace?

Question from Alex G. - Have you guys ever done a show about strategies and positions to utilize with ESOPS? If not any recommendations? Thanks.

Question from Melt Zone - Seems like the Morningstar options-based funds category has been pretty static since it was launched. Have you seen any updates or changes worthy of note? Can we expect any?

OPTIONS 101

Iron Flys vs. Iron Condors

What is an iron butterfly? What is an iron condor? Why/when would you use each? Why/when would you not use each?

THE BUZZ

Recent market recap: The rise & fall of volatility

Earnings volatility breakdown.

Alternative strategies to capture alpha in volatile markets.

OFFICE HOURS

Question from Andrew Dodson - Let me see if I have this straight re: delta hedging or “gamma scalping” - even though I’m not sure why it’s scalping gamma and not delta. Let’s say you buy a straddle with a long 10 delta. Then the underlying rallies 1 point so you sell 10 shares to make yourself flat again? Then you wait to see if the underlying drops again so you can buy back those 10 shares at a point lower? Is that the gist of it? What do you do if the stock continues to rally and you continue to get long deltas? And why the heck isn’t it delta scalping?If it was gamma scalping you’d be hedging the rate of change of your delta over that 1 point swing in the underlying?
Question from Keving - Why doesn't anyone put out the earnings straddle analysis similar to the analysis from the so called analysts? Then we can all fixate on whether a name outperforms its straddle as opposed to beating the whisper number. I think that's more valuable. Why don't more people know about this stuff.

OPTIONS 101

The Straddle:

What is it?
What is it useful for?
What is it NOT useful for?
How do you avoid scams involving straddles?
How do you upgrade a straddle to make it more useful?

THE BUZZ

January numbers are in: Second highest volume January in history

OFFICE HOURS

Question from Euro 2 Zero - How do you play earnings that has a lower IV rank (30 day) than IV Percentile (52 Week) Ex. $OKE

Question from Bantam Tom - Do most advisors out there primarily trade options in IRAs?

The Buzz
- What did we learn from the STAC options panel
- Analyzing a volatile start to 2019
- Earnings season straddle analysis
- Hedged equity vs. Markowitz Portfolio Theory
- People would rather discuss race and politics over retirement savings
- Barrons Top Advisors list completely ignores options - again
- Advisors don't need to fear Amazon

Office Hours
- Backtesting leap puts in retail accounts
- Should you write calls on dividend-paying stocks
- Options are still the silver bullet to kill robo advisors

This episodes co-hosts are:

Matt Amberson, Principal, Option Research & Technology Services
Chris Hausman, Portfolio Manager, Managing Director of Risk, Swan Global Investments
Jon Cherry, Global Head of Options, Northern Trust Capital Markets

2018 Options Year-In-Review

Tricks of the Trade: Advocating for the value of options to clients

The Buzz: Barron's names top 1,200 advisors of 2018

Office Hours: Listener questions and comments

Question from Liam Hardy - Thoughts on options sellers hedge fund blowing out from recent nat gas spike? Is this just another example of getting greedy selling options without appropriate risk management?
Question from Neville T. - What are your predictions for the options market for 2019?

Options 101: Replicating Equity Exposure using Options

The Buzz: What do informed financial advisors need to know?

FINRA Proposes Higher Position Limits for ETF Options Contracts
Nine ETF index options contracts have been selected for a doubling of position limits if SEC approves FINRA's proposal.

Office Hours: Listener questions and comments

Question from Charles Vera - Greetings AO crew (Mark, Chris, Matt, Eric and new entrant John). Love the show and have been listening for over a year and have caught up on most of the back catalog. I have two questions - one options related and one somewhat off topic but I just wanted to pick your brains.
1.) How much capital should I plan to set aside when selling puts for my clients? I'm looking at selling 5-10% OTM spy puts on a monthly or tri-monthly basis? But it seems like the margin requirements for this strategy are all over the place. Do they just vary by broker or is there some rule of thumb I should consider when tying up capital to sell puts?
2.) Do you think the recent market volatility will cause the Fed to reconsider its roadmap for raising rates in the near future? There aren't too many other developed economies that are putting the brakes on like the U.S. right now. Thanks again. Really appreciate all that you guys do.
Question from Steve Giannakopoulos - Seems right that you can write 1 put option when you already own 100 shares of the underlying stock. Brokerage can lock and keep the 100 shares as collateral instead of holding cash as collateral. It doesn't happen though. Why? You could have your long 100 shares forced sell at the put option strike price if it's ITM and you get assigned. I read what you said, I just don't understand it. Thank you though.
Question from SX78 - Now Trump is weighing in on this earnings call thing. Does this suddenly have legs? What will this mean for volatility going forward?
Question from Liznder - If you had to start over with learning about and trading options what would you do differently?

The Buzz: The Return of Volatility Redux

Volatility is back again!

What are your thoughts on the current volatility landscape? What should advisors be doing right now to manage this volatility and their client's expectations? What are you hearing from advisors right now?
Financial Services Committee Unanimously Passes Hultgren's Options Markets Stability Act
Will Bonds Protect in the Next Bear Market?

Office Hours: What do you want to know?

Question from Andrews S. CFA - I know that in most trading accounts brokers will allow you to write puts with somewhere between 20%-50% margin kept in reserve. But am I correct in assuming that you cannot do this in IRA accounts - only cash secured puts? That dramatically increases the capital cost associated with this strategy. Since most of my clients are in IRAs I don't think I will be pursuing this for them. Do you think this limits the utility for RIAs since I'd imagine a large number of advisors fall into this category?
Question from Mr. Bodine - What are the three main options strategies used by advisors?
Question from TronS6 - What's your suggested minimum account size before I consider putting a client into options?
Question from Matt Simpson - Are there any of the larger advisory firms that you feel have better understanding of options than others? I want more than someone who can just do 60/30/10. Maybe a nice covered call or collar plus a few speculative plays like verticals?
Question from Misf3t - After all your data and research are you still hesitant to recommend any particular strategy for trading options during earnings season?
Question from Douglas Tilley - Hello!--Regarding long stock substitution: 1. With call options, are deltas additive? I.e. why are (2) 40-delta calls so much cheaper than (1) 80-delta call? This seems like buying equivalent total delta for about half the cost. 2. For more accurate stock substitution, do you ever use the technique of buying an ATM call while selling an ATM put? (vs. buying calls for a desired total delta). What are the pros and cons (or nuances) of the 2 methods? I do notice that the 2nd method definitely requires more buying power, due to the short put. Thanks for all the education--D Tilley.

OCC Rebranded: OCC recently rebranded as part of growing role as a SIFMU, influential thought leader and steward of the US exchange-listed options industry. Through OIC, we are the leading educator of exchange-listed options to the investing public.

Options 101: The Wheel Trade revisited

Why: Get paid to enter the orders that you're already entering in the stock market.
How: Substitute cash secured puts for your limit stock buy orders and covered calls for your stock sell orders.
Benefit: Increase income revenue from your existing trade.

The Buzz: What's the word?

The Collapse of Lehman Brothers: A decade later. Takeaways, lessons and memories.
OCC cleared contract volume up 10% in August. Overall exchange-listed options volume reached 426,237,903 contracts in August, up 12 percent from August 2017.
FIA releases half-year report on futures and options volume. The total number of futures and options traded worldwide in the first half of the year reached 14.9 billion contracts, up 19.7% compared to the first half of 2017. Open interest, which measures the number of outstanding contracts, was 850.7 million contracts at the end of June, roughly unchanged from a year ago.

Office Hours: Listeners weigh in

Options question of the week: Some people look to analysts for their market outlook. We prefer to analyze actual #options positions. This week we're letting you join the fun. What do you think is the largest #options position in $SPY right now? No cheating! What does your gut tell you?

SPY Mar 255.0 P
SPY Oct 272.0 P
SPY Dec 31st 320.0 C
SPY Sep 300.0 C

Listener questions and comments:

Question from LaRocha - My client fund are primarily in SMAs in the 20k-50k range. What is the best option strategy for these types of accounts? The time horizon for most of these accounts is at least 20 years with a long equity bias and fairly high risk tolerance. Thanks again. Just discovered the show and I'm learning a lot.
Question from Liznder - If you had to start over with learning about and trading options what would you do differently?

Options 101: A review of the fundamentals

Short Calendars
What is it and why use it?
Any other thoughts on the short calendar?

The Buzz: What do informed advisors need to know?

The Dow just registered its longest stint in correction territory in nearly 60 years- failing to move 10% above the closing low hit earlier in the year.
The majority of fund managers expect the next recession to begin in the second half of next year or the first half of 2020.
Exchange-listed options mean opportunity for pensions and endowments.
Best& Worst BDs for Advisors: J.D. Power — 2018
Average satisfaction score - 726, up from 719 a year ago, on a scale of 1 to 1,000.

Office Hours: Options question of the week

We're talking about #Crypto #Derivatives at the @BlockchainVoiceConference. So this week we want to know which #Crypto product you'd like to see listed on a major venue next.

68% - Bitcoin options
8% - Ripple Options/Futures
18% - Ether Options/Futures
6% - Litecoin options/Futures

Listener questions and comments: What's on your mind?

Question from Allen T. - Does it count as a calendar if it's on two different underlyings? Or is that more of a pairs trade?
Question from Gall - How many options are actually traded by RIAs?
Question from D Riley:I have a general question because I'm struggling with hedges. Do most people buy calls or put options as hedges? Do they hedge in, at or out of the money?

The Buzz: What do busy financial advisors need to know?

Coffee with Cott from the Options Industry Conference.
Earning Season and Options Trading
ORATS Earnings Volatility Analysis

Options question of the week: Trading options during earnings season can be challenging. Some live for it while others avoid it. Do you hold options positions through earnings announcements? If so, what is your approach? Or do you prefer to trade just before/after the event? Or is it all too risky?

28% - Yes, Short Premium
20% - Yes, Long Premium
25% - No,Too Risky
27% - I trade around the event

OIC'S Annual Summit on Fundamental and Technical Analysis

OIC recently hosted its annual Summit on Fundamental and Technical Analysis.
How did that go?
What was the reception for your panel?
What is an important takeaway?

Office Hours: Listener questions and comments

Question from Options Knight - Loving the AO show. Great stuff as usual from OI network. Was surprised to hear a whole episode about calendar spreads. Are there a lot of advisors out there doing calendars for their clients? Or is that more of an educational piece for the bleeding edge of the advisor space who are looking for something a little more compelling for their high-end clients? Either way I loved the episode and think more advisors should be doing this stuff. Just wondered what you boots-on-the-ground guys thought about the actual reach of the strategy.
Question from FlyGuy - Hey what do you guys do with your long calendar spreads? Do you close out the short leg if the stock doesn't move then keep the long leg or just close the whole spread out?
Comment from DaLegit - Great show on calendars. I'm still working up to that level. Not sure I'm ready yet but when I am you guys will be the first to know.
Question from Teal C. - Can you do a show on short calendars? Why use? Pros/cons vs. long calendars? Maybe a cool backtest or two?

Options 101: Calendar & Diagonals

This strategy combines a longer-term bullish outlook with a near-term neutral/bearish outlook.
Variations?
Profit/Loss and breakeven
Volatility, time decay and assessment risk
Calendars vs Diagonals - when should you use one over the other?
Using long dalendars during earnings

The Buzz: What news do informed advisors need to know?

OCC cleared contract volume increased 8% in May.
Google search data reveals options trading search interest is roughly half of what it was in 2004.

Office Hours: Listeners weigh in

Options question of the week: Google Trends is full of interesting, and surprising, data. When you analyze the "options" search data you uncover some surprising results. Which brings us to this week's question: Which "sub region" is currently ranked 1 for overall "options" interest by Google?

Illinois
California
New York
Maine

Listener questions and comments

Comment from TMal - So I have this exact thing going on right now, put diagonal with different futures underlying. 90-day difference, the Vegas act totally different, throw some futures spread risk in there, hard to quantify exactly what's causing the changes in the P/L, futures spread? Vol spread? Net deltas? Net thetas? It's complicated stuff. Nuances indeed holy cow. Plant the seed and let it grow naturally.
Comment from AKeats - Just discovered the radio show, and I am absolutely hooked! Great content!
Question from Brad K. - I'm learning a lot from you guys - particularly about the value of hedging. I also took your advice and switched to an advisor who uses options much more actively. Now I'm starting to spread my wings to the commodities particularly crude oil. I want to hedge my oil exposure with WTI options. Does the Swan DRS on crude use WTI or USO options? Also I would please like to know the panel's thoughts on trading options on commodities vs. equities. Any major differences I should be aware of? Thanks again and please keep the education coming our way.

The Buzz: Hot off the heels of the Swan CIO Summit

Highlights included:

Making Vol Great Again
Perspectives on Risk Management
A Strategy to Define Risk
Where Hedged Equity Fits
Many Optiosn with Options

Office Hours: What do you want to know?

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 Charlie C. - Quick Q for the show: What's the weirdest thing you've seen in the options market?
Question from Seveny - When can we expect Swan Crypto? Sure would have been nice in the recent selloff.
Question from Dajakal - Is there a good rule of thumb for when to use a ratio spread and how much of a ratio to use? 2X? 3x? More? Also what is best time or scenario for ratios?
Question from Duffy - How do you handle the fixed-time aspect of trading options? Most of my client strategies have a 1-2yr time horizon so trading a 1 month or 3 month option doesn't really suit my needs.

Office Hours: It 's all listener questions today

Comment from Avery - Interesting piece about when to fire your financial advisor on the street today. Your thoughts? https://www.thestreet.com/story/13747897/1/5-justifiable-reasons-why-you-can-and-should-fire-your-financial-advisor.html
Question from B. Goldberg - I have a large number of SMAs with smaller balances (typically $5,000 - $10,000) from new clients. Most are younger clients willing to try their hands at newer products beyond stocks including options. What are some good options use cases for these types of smaller accounts?
Question from Leslie Necing - Morningstar has an option-based category for their funds. But it includes everything from volatility funds to overlays so it 's hardly useful for comparison purposes. What categories should they include to provide more meaningful comparisons for people looking for options funds?
Question from Scott Somer:How would movement to treat capital gains to FIFO for the underlying stocks be good or bad for the options market?
Comment from Papa Scalp - What 's scary is how many "advisors" don 't have a clue, not even for portfolio protection or insurance.
Question from FKnight67 - Is there one position or strategy that you feel applies best to the vast majority of financial advisors and asset managers.
Question from Mark Clyde Brant:Will rising vol persist all year? VIX above 20, VXX above 40, half the time? What is the current version of the Swan process? Someone should back test how often fading the skew, by buying the cheaper options, wins.
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 Nevos - There are a ton of tickers for the Swan DRS. Are they pretty much all the same or is there a primary fund that I should look for?
Question from Bill T. - Is there a platform you recommend for advisors looking on onboard more options clients?

Tricks of the Trade featuring Special Guest Co-Host: Jon Cherry, Head of U.S. Options, Northern Trust - Capital Markets.

Looking back at the recent tariff-induced market volatility.
We've seen violent selloff and equally violent rallies.
What are your thought on the recent market volatility?
How can options be implemented on behalf of clients in these types of markets?

The Buzz: What do informed advisors need to know?

The numbers from OCC are in for February - and they were good (surprise).
U.S. options-based funds grow in number despite volatility lull: study, Reuters

Office Hours: What is on your mind?

Question from Ed Bankert - Debating on using covered calls or short puts. Which is better for a less experienced options trader who wants to make money?
Comment from Tom -Let's be honest. If any of us had size bitcoin we would have sold out ages ago and probably be kicking ourselves right now.
Question from JohnnyBananas -Quick question, if you buy a put option and the strike price is $5 and the stock drops to $3, is it still worth $ even if it's 3$ under - even though my strike price is 5$?? So if the stock price is $7 drop to 5(strike), but end up going to 3, my option is worth ~$4? So I don't have to sell if I reach my strike price? Is this the same with call options? What confuses me is the strike$. #learning

The Buzz:

Looking back at one of the craziest weeks in market history.
What are everyone's thought on the historic developments in the market last week? Specifically the VIX surge and SPX selloff.
What was the outlook in the Swan offices last week? How did the DRS perform?
What were ORATS clients asking about last week?
Some thought about the value of hedging in these market environments?
This week we all were reminded about the value of proper risk management.
The great inverse Vol ETP debate continues.
What are your thought about the XIV meltdown and the place of inverse VIX ETFs in the marketplace? Should they exist? Should retail be using these products?
VIX Inventor Discusses the Dangers of Inverse, Leveraged VIX Indexes
Did VIX Manipulation Cause the Massive Surge Last Week - as Alleged by Bloomberg?
Last Week's Volatility Cost Options Traders Over a Billion in Slippage

Tricks of the Trade: Using options in retirement accounts.

What are the limitations of trading options in a retirement account?
What strategies can you utilize?
Stock replacement strategy: what is it?
Long-term stock replacement strategy with a covered call, aka fig leaf strategy.

The Buzz: What do informed advisors need to know?

2017 turned out to be a pretty good year for options - even with no volatility - also ETFs
The new tax bill - not many changes for options users.
akeaways from the 2017 Fidelity RIA Benchmarking Study.

Office Hours: Listener questions and comments

2017 was the "Year that Volatility Died". So our first question of the week for 2018 is a puzzler. Quite simply: where do you think $VIX will close at the end of the year?

Between 7.5-9.99
Between 10- 12.49
Between 12.50 -14.99
Above 15

Listener questions: What's on your mind?

Question from L Penguin - 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.

Options 101: Exploring Expiration Myths & Misconceptions

What is expiration?
Why do options expire?
What do some of these scary terms mean, i.e. triple witching, and quadruple witching?
How does expiration impact the Greeks?
Myth busting: Is it true that options control the stock market on expiration Friday?
Is max pain a real concept?
Pinning/Pin risk: What is it? Why does it matter? How do you avoid it?
What happens when you exercise an option?
American vs. European exercise?
Can you exercise options early? Should you?
How does auto-exercise work?

The Buzz: Looking back on 2017: The year without volatility.

VIX has been under 10 for about 45 days this year, and under 12 for a little over 200 days.
"Stealth hedging" shows investors not so complacent
We are all now living in a post-Bitcoin world now - when will we be able to trade the options?

Tricks of the Trade:

What is the Fitness Function?
How can an option-oriented advisor/asset manager use this?

The Buzz

OCC Cleared contract volume up 20% in October.
Big names outperforming during earnings season.
How to approach trading into an earnings announcement.
Volatility and Market History in the Age of Trump.
The Rise and Fall of Modern Portfolio Theory

Office Hours: Listeners have their say

Comment from Don - Guys, If I live to be 100, I will never, ever, understand utter gibberish such as this article. All the technical analysis, all the pseudo-science, charting, etc., all to reach what conclusion? In essence, that the market is due for a correction and is going to tank! Why use VIX for that? Does he want any sane, rational human being to conclude that VIX has a mind of its own and is going to explode all by itself, and THEN, a market correction will ensue?? Now, don't get me wrong: we could certainly have a massive market correction at any time. But, it is beyond asinine to imply that what will set it off will be a huge rally in the VIX. The entire investment public is made up of 99% horses' asses. And garbage like this article doesn't help. Don.

Options question of the week: Bitcoin just blew past $100B in "market cap." If options were available how would you trade them?

Buy Calls/Call Spreads
Buy Puts/Put Spreads
Sell Covered Calls
Other/Hate #Crypto

Tricks of the Trade: An overview of VIX settlement. How does it work? Can it be manipulated?

The Buzz: FINRA Orders Wells Fargo to Pay $3.4M Over Volatility-Linked ETPs.

Office Hours: Listener questions and comments

Question from T_Aldo - Just came across this on the Advisor section of Investopedia. I found it somewhat alarming. What are your guys thoughts? Refers to article: The Best Options Trading Advice: Don’t!

Today's co-hosts are Marc Odo, Director of Investment Solutions, Swan Global Investments and Matt Amberson, Principal, Option Research & Technology Services.

Tricks of the Trade: How do options fit into the active vs. passive debate? Active vs. Passive? It Doesn’t Matter, by Marc Odo. How do you incorporate options into a "passive" portfolio?

The Buzz: Advisors Sticking With Active Investments: Practical Perspectives. ETF Use Keeps Growing (and Growing). An update on the ongoing DOL fiduciary battle.

Office Hours: In which the listeners take over the show.

Options question of the week: First #Harvey, then #Irma an #Jose and now #Maria. We prep houses/cars/family for #disasters. How do you prep your portfolio?

31% - Get Long $VIX/$VXX/$UVXY
15% - Go To Cash/T-bills
27% - Buy Index/Stock Puts
27% - "Risk Assets" - Gold, etc.

Listener questions and comments:

Question from JV Cavalia - Question for Advisors Option on annuities. Hello Mark, Randy, Mike and Eric. I am very much enjoying your program. I am still new to options and I am interested in annuities. But most of them seem to be overly complex and riddled with hidden fees. Many of them also seemed to utilize some form of derivative to achieve their investment goals. The obvious question then is can I achieve the same results myself just using options? Would writing a quarterly call on a broad index achieve the same long-term income results for example? Do you have other suggestions. Thanks again.

Co-Hosts:

Chris Hausman, Portfolio & Chief Technical Strategist, Swan Global Investments.
Aash Vyas, Director of Portfolio Strategy and Overlays, Swan Global Investments.
Matt Amberson, Principal, Option Research & Technology Services.
Carolyn Leonard, Former CBOE Member, Co-Founder - DyMynd

The Buzz: Bringing women and advisors into the options fold - a look at IMCA, Boston Options Exchange & Dymnd's upcoming "All Women Want Options" webinar.

A new report on the "typical" advisor from Investment Advisor Association.
All advisors should pay attention to Amazon after their multibillion acquisition of Whole Foods.

Office Hours/Advisors Option Flash Poll.

With $VIX hitting new lows and $SPX new highs, what is your financial advisor telling you about using #Options?

13% - Write covered calls
35% - Buy protective puts
22% - Do Both - Use Collars
30% - They Won't Touch Options

Listener Questions and Comments:

Question from Tancray - Do you think the trend toward passive investing will help or hurt options focused advisors?
Question from Nick Sassela - I've read a lot about robo advisors encroaching on the domain of the traditional financial advisor. I would think complicated assets like options wouldn't be well-suited to algorithms and machines. Is it fair to say that options then are the silver bullet to the rise of the robo advisors?

Options 101: Gamma: Measuring the Changes in Delta

What is the relationship between gamma and Delta?
What are the properties of gamma? What is put-call parity?
At the money options and gamma? Out of the money options and gamma? Time and gamma?

The Buzz: The low volatility regime continues: 7 of the 11 days in the past 20 years where VIX has been below 10% have occurred since mid-May 2017. Two studies, two different conclusion about alts & hedge funds.

Office Hours: Listener questions and comments:

Advisors Option Flash Poll. With $VIX hitting new lows and $SPX new highs, what is your financial advisor telling you about using #Options?

Write covered calls?
Buy protective puts?
Do Both - Use Collars
They Won't Touch Options

Listner Questions:

Question from LCB - Hey guys. You mentioned on the show that 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 TIM D. - How high do rates need to be before I need to worry about rho?

In this episode Mark is joined by co-hosts:

Chris Hausman, Portfolio & Chief Technical Strategist, Swan Global Investments
Aash Vyas, Director of Portfolio Strategy and Overlays, Swan Global Investments
Mike Tosaw, RCM Wealth Advisors
Ilya Feygin, Senior Strategist, Wallachbeth

Tricks of the Trade: Selling options in a low volatility environment.

What are some ways that advisors/asset managers can maintain the income component of their portfolios, without taking unnecessary risks?

Selling ITM options?
Selling longer-term options?
Changing underlying?

Options 101: Information advisors need to know

Rho: Interest Rates Impact on Option Pricing - by Chris Hausman

The Buzz: What is happening in the industry?

Why Volatility Is an Investor’s Worst Enemy: Searching for Alpha, May 2017
DOL Will Not Delay June 9 Fiduciary Rule Compliance Date: Acosta.

Office Hours: Question from Ian Wagner - Why trade volatility vs direction or income? Preference? More favorable risk/reward profile?

In this episode, Mark is joined by co-hosts:

Chris Hausman, Portfolio & Chief Technical Strategiest, Swan Global Investments
Aash Vyas, Director of Portfolio Strategy and Overlays, Swan Global Investments
Matt Amberson, Principal, Option Research & Technology Services.

Tricks of the Trade: Looking at Options Backtesting

What is it?
Options vs. Stocks: Why is it so difficult to backtest options effectively?
What are some common mistakes that are made when attempting to backtest options?
Are some options strategies easier to backtest than others?
How do you deal with assumptions when backtesting options?
How can advisors use backtesting to test the efficacy of their options strategies?

The Buzz: A recap of the 2017 OIC Conference. Cerulli study says financial advisors who currently use options expect to increase use of options by 30% in three years.

Office Hours: Options Question of the week

This volatility implosion is starting to make people nervous. It's VIX limbo time: How Low Can It Go in 2017?

Currently:

38% - 9.0 is the Bottom
18% - No lower than 8.5
15% - Cannot get below 8.0
29% - <8 = Lookout Below!

Listener Questions:

Question from Aidan Chance - I heard you guys discussing the problem of lumping options funds and strats into the alts ghetto on the last show. I understand your complaints. What do you think would be a better category to gauge options performance?
Question from Steve - With the VIX so low, I am not selling a lot of options anymore, because I'm afraid that I will not collect enough premium. Am I thinking of this incorrectly?

Recorded live at the Swan CIO summit, Mark is joined by:

Chris Hausman, Portfolio & Chief Technical Strategist, Swan Global Investments
Aash Vyas, Director of Portfolio Strategy and Overlays, Swan Global Investments

They discuss:

What is the CIO Summit?
What were the highlights of the Summit?
Upside/Downside Capture
The importance of education
Are options becoming more mainstream?
Harvesting risk premium
Why Swan takes a longer-term view for choosing expirations
Looking into crystal ball for realized volatility levels
New participants in the overlay space
Shifting the paradigm from harvesting premium to premium extraction
Navigating the spike in skew
The efficacy of skew

Office Hours: Listener questions and comments

Lumping options funds into the 'alts ghetto.' Is there a better category?
Are there too many options exchanges?

In this episode, Mark is joined by co-hosts:

Chris Hausman, Portfolio & Chief Technical Strategist, Swan Global Investments
Aash Vyas, Director of Portfolio Strategy and Overlays, Swan Global Investments
Ilya Feygin, Managing Director and Senior Strategist, WallachBeth Capital

The Buzz: What are the hot topics in the world of financial advisors?

A recap of the CBOE Risk Management Conference.
Beware of Correlations, and Other Investment Tips: Janus Funds 2017 Wealth Advisor's Guide identifies the intended and unintended risks of advisors’ asset allocations in their model portfolios
Why stock market volatility is not really as low as it appears.
Trump is biggest global risk in 2017, Alt Funds says.
OCC Educating Lawmakers on Potential Impact on Tax Reform on Listed Equity Options Market.by Craig Donohue, OCC Executive Chairman and CEO

Office Hours: Answering listener questions and comments

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?
Question from Avec11 - According to Financial Planning magazine, “More than a third of the nations largest RIAs lost AUM in the past year.” What is going on? Does this reflect the trend toward passive investing and away from active management? You would think a bull market period like 2016 would result in more AUM for advisors not less. Do you think using options could have stemmed the tide?

The Buzz: What are the latest developments in the options market for advisors?

Fiduciary rule, revisited. What does it mean? Will options be back on the chopping block? Why does the law of unintended consequences seem to hit options so often?
The new white paper from Swan, "Where the DRS Fits in a Portfolio"
How to fit options into portfolio allocation?
What is the optimal asset allocation?
Are there not enough financial advisors (planners) to meet demand?
The alts didn't do well last year. Why should advisors increase allocation to what some consider an alt?
Are options the veggies of your portfolio?

Today, Mark is joined by co-hosts Chris Hausman and Aash Vyas from Swan Global Investments and Russell Rhoads from the CBOE Options Institute.

The Buzz: The Dawn of a New Regime - how will it impact the markets? An overview of the STAC Regulatory Reform Session: the Choice Act, the Volcker Rule, migration of OTC derivates and DOL fiduciary rule.

A breakdown of Inside ETFs Conference:

What is it?
Who goes to it?
What interesting developments/research came out of it?

A preview of the CBOE RMC Conference:

What is it?
Who attends it?
Learn the latest risk management tools and tactics from top traders and strategists.

A new paper from Swan Global Investments: What Return Are You Targeting? Setting Expectations and Benchmarking in a Myopic World

Next Swan Conference:

10th Box - St. Louis, MO – Heartlands Region
February 28 @ 11:30 am - 1:30 pm
More information is online

Office Hours: Options #PopQuiz: What are you primarily looking for when buying an options-oriented fund?

Levered Returns (2x, etc)
Income Generation
Hedge/Protection
Other (reply/dm w/answer)

Listener Questions: What's on your mind?

Question from Tim Avery - If I choose an advisor that uses options do they traditionally charge higher fees than straight-up equity advisors?
Question from Aisling Davis - Seems as though correlation is trending upward across asset classes. Do you find that this is a more favorable environment to trade options vs other assets? What are your clients saying about this?
Question from Angelo Miles - Hello. I found your program while searching for options informations for RIAs. Let me just say it was a refreshing breath of fresh air after the dense material available on other outlets and broker sites. It seems that most of them (see here) just say options are risky and link to something called the Characteristics and Risks of Standardized Options. What is this omnipresent booklet and why should I care? I tried looking at it a few times and it just put me to sleep.
Question from Adam - Could you please explain what it means to "gamma scalp" and why this is not called delta scalping? Thanks and your show has saved me a lot of money now that I have come to the dark side!
Question from Yukoner - Are covered calls still a viable strategy in a 401k these days?

The Buzz: A rundown of CBOE RMC Asia conference with Russell Rhoads.

What is it?
Who attends it?
What compelling options research came out of the conference?
What is the asian perspective on volatility?

#QuestionOfTheWeek: Financial advisors represent the last options frontier. What level of options knowledge do you expect from your advisor?

None: I will do it myself
Level 1: Buy Puts/Calls
Level 2: Income & Vol
Level 3: Option Specialist

Trump watch

The Republican House finance chair plans to kill the Department of Labr rule
Trump pick for DOL Chief said to be Andrew Puzder.
Financial advisors voted overwhelmingly for Trump, finds an FSI poll.
Investors flood U.S. stock ETFs with most cash ever on Trump win

Office Hours: Listeners have their say

Question from Zachary - I am learning a lot about options from your program. I am a relativity new convert so I apologize if you have discusses this on past episodes, but exactly how much of my portfolio should I allocate to defensive strategies like puts? Thank you for providing so much great free content!
Question from Rice Landa - Did you guys see this? Is Mark Cuban talking about buying puts or something else? Guess he has a savvy financial advisor?
Question from FundConsept: Do you think activist investors will encounter more opportunities in the U.S? seems like they are in the UK

Options 101: Looking back at post-election volatility. How has it impacted the options market and your current trade style or outlook?

Takeaways:

Patient volatility traders won the day.
Many options traders were on the sidelines in most names after-hours.
Always watch out for skew.

The Buzz: What do busy advisors need to know?

Straight Talk on Put Options
Funds go exotic with put-write options to stem volatility.
Options volume increased 20% in November. Highest November ever for options volume and third highest month ever for cleared futures volume

Office Hours: Taking listener questions and comments

Options#QuestionOfTheWeek: Commodities are capturing a lot of attention and generating a lot of #Volatility. What's your option of choice?

$GLD / Comex Gold
$USO / $WTI
$TLT / ED / 10YR
EUR/USD, GPB/USD
Question from Jay Allen - What do you typically recommend for hedging portfolio risk SPY puts or SPX puts? Can you please explain some of the differences and why one product is superior to the other. Thanks for the show and the app.
Question from JT Monroe - I overwrite calls for a handful of clients mostly in SPY. I’ve tried to grow my options book of business but it seems like I’m mostly lumped into the Alts segment. I refer to it as the Alts ghetto because the allocations are so paltry. How do I get clients to start viewing basic overwrites as part of their traditional equity allocation rather than a paltry 2% Alts allocation?

The Buzz: What are the hot breaking topics in the world of options?

Presidential Elections and Option Implied Volatility by Chris Hausman, Swan Global Investments.
Is the market pricing in a Clinton victory?
Have we already seen the peak of election volatility?
How should a typical advisor/asset manager that writes covered calls, buys protective puts or trades collars adjust their strategies for this market?
Should advisors consider adding a volatility/VIX component to their client portfolios during this period?
What about the ETFs / ETPs?
VIX in October in election years.

Options 101: Collars Revisited. Inspired by a listener question, we review the collar strategy

Question from Talos - I enjoyed your panel presentation on The Holy Grail of the financial markets with Randy Swan and Mike Cavanaugh. I realize this panel was from a few years ago. Have there been any updates with regards to data on collars? Are they still effective tools for advisors looking to mitigate portfolio risk? On a specific note are they applicable to concentrated equity positions? I would appreciate any information you could provide.

If you want to hear the episode that inspired this question, you can find it at: The Holy Grail of the Options Market

Its time for an update on collars!

What are collars?
What makes them so effective for financial advisors?
Why are they the "Holy Grail"?
Types include:
- Collars with a kicker
- Zero cost collars

The Buzz: New Wilshire Analytics study finds options indexes offered noteworthy returns over 30 years.

Office Hours: Listener questions and comments

Question from Nick Tanner, CFA - The most recent Janus report on metals discusses their outlook for these "volatile products." What is your opinion of the recent volatility in these products? Does that make them less suitable for options-oriented clients or more suitable? Are there particular products you recommend for different clients? Read report here.
Question from Javier Mendoza - We are in a relatively low volatility environment right now which is contrary to the seasonality of volatility which points to Sep and Oct as the most volatile months. Do you think we're headed for a return of volatility this month or next month? Is it worth adding a few VIX calls to my holdings?
Question from LVX65 - Great breakdown of the problems with 60/40 this episode. I'm curious what part you feel options should play in a traditional portfolio. Should there be an options allocation? What about volatility. Do you agree that volatility is its own asset class and should have an allocation in every portfolio?

Options 101: Futues Options Strategies

Covered calls and protective puts
Stock/Futures replacement strategy
Vertical call spread
Spreads with wings

Other topics:

Metals futures
Energy
Ags
Volatility futures and options

The Buzz: With experts questioning the 60/40 rule, advisors should consider incorporating alternatives.

Options 101: Today we feature guest host Russell Rhoads, author of Options Strategies for Advisors and Institutions.

He discusses:

An overview of your background in the options markets?
Why did he feel compelled to write this book?
Which core options strategies he focuses on in the book?
What about the collar: The "holy grail" of advisor option strategies?

Regarding the advisor audience. They are a somewhat odd blend of the retail and institutional audiences. That makes creating content for that audience a unique challenge.

What are some of the responses he is hearing from advisors when he approaches them about options?
Evolution of the advisor audience. Does he feel they are becoming more receptive to using options?

Office Hours: Listener questions and comments

Question from Nellius: How did the recent Brexit market meltdown affect the Swan DRS?
Question from Skiball: Where do you see the VIX going and how will it impact stock picking in this market?
Question from Ignacio Reale: This is a very informative program. I would like to ask you to please explain the benefits and drawbacks of credit spreads and debit spreads. Why should I utilize one versus the other. My clients portfolios typically utilize retirement assets with the goals of capital appreciation and income. Your input would be most welcome.

Option Strategies for Advisors and Institutions

Tricks of the Trade: Today's guest co-hosts are Chris Hausman, Portfolio & Chief Technical Strategist, Swan Global Investments and David Beth, Co-founder, Wallacbeth Capital.

They discuss:

Has the low yield fixed income environment of the last few years squeezed premium collection trades?
How has the low volatility environment impacted premium harvesting strategies?
What can advisors do to boost income in low volatility/low yield environments?
Which strategies should they avoid/adjust in low volatility environments?

Options 101: The topic of this segment today comes to us courtesy of a listener question.

Question from Andrew Seever: I would like to politely request an episode that covers trade adjustments. This is a challenging area particularly when a stock moves against you. I imagine your listeners would find it useful as well. Thank you for this informative program.

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?

Office Hours: Listener questions and comments

Comment from James Biggs: My hairdresser knows more than my financial planner. Terrifying! Your show made it hard for me to sleep at night. Thanks for that.
Question from Alain Joubain: Please discuss this story on your Advisors Option radio program (http://www.newsweek.com/john-oliver-last-week-tonight-retirement-investing-469670). John Oliver really took it to financial advisors on his show this week. I have already got my official financial advisor certificate printed out and its hanging on my wall. But seriously I would like to hear your thoughts on his comments and his recommendations for financial planning.

The Buss: Looking back at the Swan Advisor Conference

What were some of the interesting takeaways, panels and developments from this conference?
Visit the Swan Conferences website
And the Swan Global Investments website

The ugly from the Swan April newsletter:

Coca-Cola is fighting 12 consecutive years of soda consumption decline. Its stock is at an all-time high.
Tesla is “changing the world”, and orders for its new car are off the charts. Its stock is lower than it was 18 months ago.
Cigarette consumption has dropped 44% since 1981. Altria stock is up 71,000% since 1981.
Walmart net income has tripled since 2000. Its stock has lost 1.5% since 2000.
Apple has earned almost a quarter trillion dollars of profit since 2012. Its stock has barely budged.

Office Hours: Listener questions and comments

Question from Njord: I would like the host to express their views on the following article. Is it time to raise the bar for becoming a financial advisor? How do options play into this?
http://blogs.wsj.com/moneybeat/2016/04/08/how-come-its-still-harder-to-become-a-hairdresser-than-a-financial-adviser/
Refers to the article: "How Come It’s Still Harder to Become a Hairdresser than a Financial Adviser?" by Jason Zweig.
Question from JBigg: Does the presidential election cycle have any notable impact on the options market?
Question from Alan Riggs - There seems to be a volume of data recently about the effectiveness of selling weekly instead of monthly premium. Does the team at Swan utilize weeklies for any portion of the DRS? If not, have they considered incorporating them in the future?
Question from Nathan Jones: I have always been intrigued by options and as I expand my client services I would like to incorporate them. I have listened to your programs and reviewed the material provided by the OIC advisor team. I understand the mechanics of the strategies. At this point I find myself hung up on the starting point. What should be my initial objective when using options? Do you view them primarily as a hedging and risk management tool or primarily as an income generating tool? Also when your present them to potential clients how do you categorize them? Thanks and I am looking forward to finally pulling the trigger.

In this episode, Mark is joined by Marc Odo, Micah Wakefield, and Chris Hausman. They discuss their big take-aways from the conference, including:

Good reception to the thoughts on the retirement conundrum
Using options for safety and income generation
The importance of discipline in risk management. (Have a plan!)
How options have become more mainstream
The importance of education
Fragmentation and the proliferation of options exchanges
Inside, outside, and outer rim markets
How to get more liquidity providers in the markets?
Comparing and contrasting ETFs and futures in terms of execution, management fees, etc.
And more...

The Buzz: Today we are joined by Micah Wakefield, Director of Research and Product Development at Swan Global Investments. They discuss:

A preview of the upcoming Swan Global CIO Conference.
When it is? What is it? Who is attending? Who should consider attending future Swan events?
Math Matters: Rethinking Investment Returns and How Math Impacts Results by Micah Wakefield
IRA ban on options raises its ugly head again - By late March, investors should learn if the Labor Department will ban options trading in retirement accounts. The outcome right now is too hard to call.

Office Hours: Listener questions and comments

Question from NVid - The junk bond market is melting down and interest rates are hovering around zero. Is the best place to find income these days via options writing rather than investing in fixed income or related products.
Question from Bas431 - A client recently contacted me regarding the concept of pin risk in conjunction with options. I was unfamiliar with the term so I turned to the experts. Can you explain what this risk is and where it occurs? Is this something that I need to take into consideration with my clients positions. FYI - the vast majority of my options positions are call overwrites in broad equity ETFs like SPY. Thank you for your highly informative program. It is now on regular rotation on my iPhone along with Options Boot Camp and the Options News Rundown.

The Buzz: Today we have special guest Chris Hausman, Senior Trader & Chief Market Technician at Swan Global Investments. Chris is the author of "Do Market Anomalies Occur More Frequently Now?"

They discuss:

Normal distributions and when models blow up
Five- and 10-sigma events
What do financial advisors need to look for?
How to be prepared
Plus, options within IRAs
Annuities
More data from CBOE regarding Russell 2000 Index related products

Office Hours: Listener questions and comments

Question from Patrick D. -What is your opinion of volatility ETFs such as VXX? Does it make sense to include them in diversified client portfolio?Perhaps 3%-5%?

The Buzz: Today's guest is Marc Odo, Director of Investor Solutions, Swan Global Investments, and author of "The Retirement Conundrum: Untying the Gordian Knot"

Good, Bad, and Ugly Q4 2015 review:

This has been the worst start of a trading year in history.
Volatility is elevated across all products - from VIX to crude oil
How does this current environment impact options trading?
Is this a good time to consider hedging strategies?
Income strategies?
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.

Office Hours: Listener questions and comments

Question from James M. - Watching my trading screens this earnings season I am struck by my need for extra hedging in my portfolio. But when i look at the prices for protection for names like apple going into earnings the costs seem prohibitive. In your opinion is it worth paying the additional earnings premium for protection in these volatile periods? Do you have any strategies to mitigate the cost of this protection?
Question from JValerio1 - The robots are invading the advising space! I know a few of my colleagues are concerned about these services cannibalizing their business. What are your thoughts about these services and “Robo Advisors” when it comes to options? Is this an issue with these products as well?

The Buzz: SEC to crack down on derivatives use in funds. Mutual funds face leverage caps under SEC rule on derivatives. Looking at the financial advisory business of tomorrow - Volatility skew.

Tricks of the Trade: Looking Back at 2015: Top Options Trends/Stories for Advisors/Asset Managers

Fallout over IRA use in options.
Impact of rising volatility on options prices.
Impact of fed rate hike on options / rho.
Ongoing fascination with crude oil options.
Year of great data regarding options efficacy for fund managers: OIC Harris Poll - CBOE white paper on fund use of options in portfolio management.
Honorable mention - Rise of the robo advisor.

Office Hours: Listener questions and comments

Question from Peter D - Stocks are being hit by latency sensitive strategies like HFT. Is that happening in options as well? Should I steer clients to other products instead?
Question from Batram - Thank you for the information you provide on your advisors option program. I have found it very useful in my business. I have evaluated multiple online platforms for use with my clients but have not found the optimal solution yet. I would like to hear your recommendations for platforms that can handle basic covered calls, put writes and collars on approximately 200 SMAs. My concerns are ease of use, reporting and compliance. Cost is less of an issue as I do not mind paying for good functionality.
Question from Neal M - I recently attended a seminar where a financial advisor mentioned using straddles and strangles to make money no matter which direction a stock moved. He was a little light on specifics so I did some google research and found your program. Can you please give overviews of these strategies and explain if they are suitable for longer-term investing via a retirement account?
Question from AVX16 - The fed is set to raise interest rates in December. While this raise will be nominal it sets the stage for future raises in 2016. I am a relatively new convert to options thanks to this program. I have only used them in the current zero rate environment. Are there any performance peculiarities that I should know before putting my clients into options positions in a rising environment? My primary strategy is 2% out-of-the-money covered calls on spy although I am considering more aggressive income strategies such as covered strangles and iron condors. With the prospect of a rising interest rate environment on the horizon are there certain impacts on options that i should note before using these strategies for clients.
Question from AngeloM4 - Can you clarify what is meant by a naked options position vs a covered options position? Sexy name aside - is the former truly exposed to unlimited risk?
Question from beansie - Is there such thing as a commitment of traders report for options? Something that shows bullish and bearish positions in the marketplace?
Question from Ben A - Are the options prices more volatile going into events like earnings and crop reports? What is the cause of volatility in the options market? Where does it come from?
Question from Sebastian - What is the status of the Chinese options market? Are options going to be listed in anytime soon? Do you expect they will be accessible to outside investors? I have multiple clients interested in investing in china but I do not see many viable options offerings.
Question from INC451 - I saw a recent headline stating that the second BATS options exchange launched on 11/3 bringing the total number of options exchanges to 13. Should I be excited or concerned that there are so many exchanges listing spy and apple options? In my experience with equities more venues does not always equal more liquidity and deeper markets. In fact, it can frequently be the opposite.
Question from Kevin D - Hi Mark, I love your shows! What happens to my options if the underlying gets halted permanently? Would I ever be able to close them? I am remembering Sino Forest from a few years ago in Canada- stock got halted pending a fraud investigation and never came back. I am worried that I will not be able to cash in on my BABA Puts! Thanks, Kevin Sent from my iPhone

Tricks of the Trade: An overview of leading options studies & options fund studies.

New OIC Study Shows Increased Knowledge of Listed Options by Investors.
Performance Analysis of Options-Based Equity Mutual Funds, CEFs, and ETFs
Advisors Option 28: Breaking Down How Options Can Benefit Advisors
196 Funds That Use Options Had Lower Volatility and Higher Returns

The Buzz: What's the Latest News?

Department of Labor IRA Proposal - seems like the worst is out. DOL is open to changing fiduciary proposal, but some press for it to be scrapped.
A tax to curb excessive trading could be a boon to returns - Senator Bernie Sandrs wants to tax stock trades at 0.5 percent of the value of the transaction, 0.1 percent for bonds and 0.005 percent for derivatives.
Hillary join the "Tax HFT" movement.
New York Stock Exchange launches enhanced buy-write index, “NYBW”. The New York Stock Exchange, part of the Intercontinental Exchange ICE, +2.00% global network of exchanges, today announced the launch of a new index that aims to provide an innovative, smart beta solution for investors wishing to access the buy-write strategy.

Office Hours: We will take your questions now.

Question from Nic L. - Interesting stuff. Hard to believe. What major changes do you expect in options market in 2035? - re: This recent OIC advisor tweet - ‏@OIC_Advisor: Avg. daily volume in 1995 = 1.1 million contracts, an amount surpassed today in first 30 mins of trading.
Question from Tod B., CFA - What is the best way to discuss volatility with new potential clients? Should I highlight it as an opportunity for income generation, highlight the benefits of options to reduce portfolio volatility or simply steer clear of it?
Question from 777 - Does the panel see the possibility of options exchange mergers anytime soon? Seems like there are just too many right now and it needlessly complications trading.
Question from Genus P - Would you counsel managers focus their income generation in the weekly options? Short-duration products appear to do well for generating income.

The Buzz: Final days for comment letter on DOL IRA proposal.

Office Hours: So many questions.

Question from TLand66 -I would like to submit a question for the Advisors Option radio program. I have reviewed a wide variety of options products for my clients. Aside from large widely held products like SPY and QQQ, there seems to be a surprising lack of liquidity in many of the products that I research. Spreads are wide and size is relatively limited - particularly in my preferred time frame of 2-3 months. My strategy is 4-5% OTM covered calls. I do not want a substantial amount of size. 200-300 contracts will typically suffice for the needs of my clients. Still this seems to dramatically outstrip the available bid in most calls by several orders of magnitude. I have to sell through the bid, sometimes by a substantial margin, to complete my transaction costing my clients substantial amounts in slippage. After all a $.10 hit on 300 contracts amounts to $3000. If I do that on every trade it adds up fairly quickly. Do you have any tips that will help me find more liquidity or help me improve my execution on behalf of my clients? I find your program tremendously informative. I particularly enjoyed the episodes on the VIX and income trading. Although I found your most recent episode discussing the issues with IRAs to be extremely alarming. I am drafting my comments on the proposal as we speak.
Comment from Steve A - With respect to the OIC study on various options strategies since 2003 - Are you really surprised the highest return was gained by a synthetic short put stupid in what has mostly been a bull market? (Covered strangle => short call + long stock = ITM short put, plus OTM short put). So, yes! Selling 2 puts brings in more money than selling only 1! Yes, the lobster and meatball have taught me enough to figure this out and they should feel good that something has stuck. Keep the great shows coming - Hawkeye
Question from NewBQuestion - How does premium selling work when selling options - Do I get the capital right away? How does that work from a margin perspective?
Comment from VoxPopuli - Great program. I have shared it with a number of my colleagues because I agree that more fund managers and advisors should use options. You would be surprised how many of those guys still look at me like I am crazy when I tell them to buy a put - they prefer to save the money and rely on stops. Hopefully last month finally put that thought process to bed. What good is a stop order when the market opens down 1000 points? Seems like these are great times to be a proponent of options. Guys like Randy must have their phone ringing off the hook from people who have "seen the light."
Question from Alan K - I have heard discussion in several outlets post 8/24 that options can exacerbate market volatility, particularly at the beginning and end of the session. Is this true? Do you agree with this assessment?
Question from Mousin - Monday market move was difficult to believe. Could it be that the huge options portfolios held by macro hedge funds are to blame for big move Monday in the market? Does this phenomenon also exhibit itself around options expiration?
Question from Vivian: I came across this article recently and immediately thought of your program. Do you feel this information is accurate? If so how should someone treat options that are deeply in-the-money? Are there any guidelines for when they should be exercised or how they should be treated in a portfolio?
Question from KDiddy - Hi Mark, I love your shows! Question: what happens to my options if the underlying gets halted permanently? Would I ever be able to close them? I am remembering Sino Forest from a few years ago in Canada- stock got halted pending a fraud investigation and never came back. I am worried that I will not be able to cash in on my BABA puts! Thanks.

The Buzz Segment: Today we are joined by Joe Corcoran, the Head of Government Relations at OCC. He discusses:

An update on the Notre Dame study.
A preview of the Nielsen study on financial advisors.
OCC and U.S. Securities Market Coalition ask U.S. Department of Labor to allow use of listed options in retirement accounts.

The links for Financial Advisors and investors to post comment letters for the DOL fiduciary legislation are up on OCC website: www.theocc.com and the OIC website: www.OptionsEducation.org.

Tricks of the Trade: Extreme volatility: Takeaways from the recent extreme volatility in the marketplace. The Dow Jones Industrial average briefly slumped more than 1,000 points, its biggest point-drop ever. VIX cash hit 53.29 at 10am. Our discussion from last episode was very timely: Why even bother hedging volatility?

Office Hours: Listener questions and comments

Question from Traders_Inc - I have listened to a few of your earlier episodes and considered adding protective puts for my clients. They are mostly active in broad equity indices with a few large cap single names such as apple. But the outlay for protective puts on these positions is substantial - often over 2-3% of the portfolio's value. That seems to be too much - particularly when the client is paying me to manage their funds. They rely on me to close out positions when they turn negative rather than an exotic insurance product. I feel that it's preferable for advisors to manage their client's positions for them and save the dramatic outlay on puts. If a stock is dropping your manager should know enough to close out that position when it reaches a certain level. Or simply work a stop loss order to achieve that same level of protection. I am sure you feel that I am drastically outmoded in this viewpoint but I have a feeling that I am not alone among wealth managers.

The Buzz: OCC and U.S. Securities Market Coalition ask U.S. Department of Labor to allow use of listed options in retirement accounts. Wealth Adviser: Seeking clarity on derivatives in mutual funds. The skewed debate on Millennials.

Options 101: Lots of "Volatility of Volatility "recently. “Low VIX” is all over the financial media these days. But:

What is implied volatility?
What is the difference between realized and implied volatility?
What is the VIX?

Office Hours: The advisors will see you now.

Question from Andrew Malyan - It looks like rates will be climbing on the horizon if not this year than certainly in 2016. What should I as a relative newcomer to the options space consider when thinking about embracing these products in rising rate environment? Does this make these products more or less attractive? Any strategies that are particularly well-suited to a rising rate environment?
Question from Timothy Keen - Love the show. Great info. Great insight. I wonder why no one else is beating the derivatives drum for financial advisors? Maybe you should start your own conference series speaking to this critically underserved area of the space.

Options 101: Managing concentrated positions

What do you do if a client has a concentrated position?
What if it’s a position in a company they manage/own?
Options to the rescue!
Protective puts
Covered calls
Collars
The collar with a kicker

The Buzz: What’s happening in the options world?

Wealth Advisor Summit
Robo advisors
Digital technology for advisor
What is notable is what is missing: options, alternative investments, etc.
SEC tries to hone in on derivatives exposure in funds

Today, Mark is co-hosting with Randy Swan, Co-Founder, Swan Global Investments and Pat Stiefel, Director of Trading, Swan Global Investments

Interview Segment: Mark, Randy and Pat are joined by Thomas W. Miller, Professor of Finance and Jack R. Lee Chair of Financial Institutions and Consumer Finance at Mississippi State University.

He discusses The Performance of Options-Based Investment Strategies: Evidence for Individual Stocks During 2003-2013, which he conducted with Professor Michael L. Hemler, University of Notre Dame.

The Buzz: Financial Advisor Forum

Catching up with the Financial Advisor Forum going on in Miami

What are the main topics at the event?
How has the turnout been?
Catching up with swan global investments What is the latest on the mutual fund (s)? Any other appearances on the horizon?

Listener Mail: Listener questions and comments

Comment from Mark Brant: Fascinating how the Swan Process can be condensed to weekly's and succeed for the same reasons it does with monthly's.
Question from Allan: Do you feel that fear of generating additional commissions is a reason why so many financial advisors out there don't want to use options?
Question from BigJim: I've heard you guys recommend against rolling your covered calls. But I'm closing in on retirement and I've had this stock position for a number of years. It would be a sizable tax hit if I let it be called away. I also don't want to keep closing and re-opening it and generating taxable events. So what should I be looking at when managing my covered calls? What strike should I be writing? How close to the strike should I think about rolling it?
Question from Tom: Love the AO show. Stumbled across it in iTunes last month and I've been scrambling to catch up. You guys have spread a lot of knowledge to your listeners and I'm working to digest it all. Rather than waste your time with an options question -the answer to which I probably won't understand (yet) let me ask something more basic. Where can I find an advisor in my area that utilizes the practices and strategies you discuss on your program? Is there a database or website I can go to find options-using advisors. Thanks and also please ask Randy why he relocated swan to Puerto Rico? The weather is certainly nice but were there also other reasons - tax, family?

The Buzz: What is going on in the world of advisors?

An overview of the OCC study (with Notre Dame and the University of Mississippi) on performance of options-based strategies versus long equity strategies on the nine stocks widely held in 401k plans.
How Robo-Advisors will sink pretenders and propel true financial advisors.
Investors must look beyond US assets - using options for international diversification.
Russell becomes the latest to unveil digital tools for advisors.
President Obama will order the Labor Department on Monday to begin developing new rules for financial managers who handle retirement accounts for working Americans.
Transaction Tax?
Elizabeth Warren: Tax the banks - questions SEC chair on broker reforms.

Office Hours: In which the group takes on listener comments and questions

Question from Neal A, Detroit MI - Can I use options to establish bullish positions in an IRA. I am particularly interested in bullish equity option positions using risk reversals. But I am concerned about the short put leg of the trade. Can I take advantage of the benefits of this position in an IRA?
Question from Averyman - The 2015 contribution limit for an IRA account is $5500. Are there techniques to increase or circumvent this limitation utilizing options or derivatives?
Question from Charles D, Richmond VA - I typically invest in dividend-paying equities on behalf of my clients. I am interested in adding covered calls to the equation. I would like to know if you have any tips for me as I embark on this road. Are there any particular characteristics of dividend-paying equities that make them better-suited, or perhaps not well-suited, to writing covered calls? Most of my clients are investing through retirement accounts. I plan to write 10% out-of-the-money calls when possible. Are there also any strategies for increasing the returns for my clients with these strategies?
Question from Tom B - Great show. It now has a regular spot on my iPad playlist. I recently intended an alternative investment conference where one of the instructor discussed the benefits of naked put writes. I am familiar with covered calls but I’ve been actively discouraged by my custodian against put writing because it was “too risky.” So I never investigated them significantly as an investment alternative. Some of the points raised at the conference drew my attention including the fact that put sellers typically generate more income than call sellers. Do you agree with that as well as the overall sentiment that more investors should be utilizing naked puts as an investment option? Also are these strategies available to retirement investors? Thanks for all your insight.

Options 101:Paying for Protection

The most common strategies we will outline are: basic put spreads, ratio put spreads, collars and a collar with a kicker (Swan-style).

Listener Mail: Listener questions and comments

Question from Rose Sparza - This question is for the advisors option program. I came across this article recently (http://www.valuewalk.com/2015/03/hedge-fund-jacob-whol/) and immediately thought of this program. This young manager utilizes options and overlays, two topics frequently discussed on advisors option. Of course the story has a negative bent because the manager appears to have run afoul of the law. Does the negative perception and coverage of options-oriented managers drive you crazy? Even if some of these guys seem to deserve it.
Question from JacksonHole - Am I correct when I say that I can use any options strategy in my IRA account as long as it does not require leverage?
Comment from Mark Brant - Started first Wheel of Fun selling AAPL April 125.71 Puts $2.17. Hope 2B put to and sell $2 covered Calls with a $1 long put hedge...@Options Front-week AAPL weeklys Wheel of Fun is looking sweet once you crunch the numbers. Collecting premium 52X a year really adds up! Quite the move toward my strike in the last hour! Nice start and a good omen!
Question from George S - Is it true that a lot of the stock movement we see on expiration day comes from the options traders defending their positions? So does that mean options traders tend to move stocks toward specific prices on expiration days? What should I as an equity advisor and aspiring options trader do to profit from this?

Listener Mail: Listener questions and comments

Question from Nancy N. - Would you recommend a covered call fund for a newcomer to options? How reliable is the income stream from these funds versus a typical dividend income-fund? What about put selling funds? Are these too risky for someone of my relatively advanced age and low risk tolerance? Thank you for this wonderful program. I am currently in the market for a financial advisor and I have used your episodes as a guideline.
Question from Sanjay Puri - Thank you for your very informative podcasts on the options insider radio network... Been an avid listener for the past year and have devoured most if not all of your podcasts, converting this erstwhile buy and hold equity investor into an amateur-ish options trader / investor!!! :) Deeply appreciate the good work you guys are doing - and look forward to more insightful content from the crew! My options trading has been mainly done from Roth IRA accounts, mine, as well as others in my family - wherein the earnings are tax-free. Curious to learn from the expert panel on your suggestions for ways to achieve the following:
Increase the capital deployed / contributed within the Roth IRA accounts and overcome max contribution limits of $5,500/year, to reap bigger tax-free earnings in the Roth IRA, by larger trades while still keeping ~50% of the capital as dry powder for potential adjustments, and for other attractive opportunities as they emerge. AND / OR
Minimize (or better still, eliminate! ;-)) the impact of taxes on earnings in other non-tax-advantaged account types, such as a regular brokerage account etc., with more flexibility on cash-in and cash-out.
Are there ways to have a business entity such as an LLC or an S Corp etc. own these ROTH / brokerage accounts, resulting in different tax treatments arising out of factors such as business expenses etc., with me either as an individual or another legal entity being appointed as the "money manager" or something along those lines for these accounts? The gist of what I am trying to achieve is increase capital deployed and eliminate or at least minimize taxes. Some additional context for you better see the big picture is as follows:
Currently have ~$30k in Roth IRA accounts.
Interested in deploying another $30k currently, and potentially more over time in a tax-optimized way - since taxes are the single largest, and almost certain expense item on the P&L - barring for trades gone bad, resulting in losses.
I realize and am fully aware that I should consult a CPA and that you do not provide tax advice on the show - but I am sure you fine gentlemen have probably come across ways these goals may have been achieved. Besides, the couple of CPAs I have spoken with so far, seem to have been mainly focused on the more conventional salary / W2 income - so if you are able to point me to some CPAs / firms that might be able to help, I would deeply appreciate that too! Thanks a million in advance for your feedback and for featuring this rather long email. :) Eagerly awaiting enlightenment from the wise ones!

Tricks of the Trade: Today's guests are Keith Black, Ph.D., CAIA, CFA, Managing Director of CAIA (Chartered Alternative Investment Analyst Association) and Ed Szado, Ph.D., CFA, Assistant Professor of Finance, Providence College, Director of Research, INGARM (Institute for Global Asset and Risk Management).

The Buzz: The Chicago Board Options Exchange announced today the release and publication of a groundbreaking new study: "Highlights of Performance Analysis of Options-Based Equity Mutual Funds, CEFs, and ETFs." The study analyzed SEC-regulated investment companies (mutual funds, exchange traded funds (ETFs) and closed-end funds (CEFs)) that focus on use of exchange-listed options for portfolio management (options-based funds). The study analyzed the equal-weighted performance of a subset (nearly three-fourths) of the 119 options-based funds -- those that focus on use of U.S. stock index options and/or equity options -- during the 15-year period from 2000 through 2014.

Key Takeaways: The number of options-based funds is growing. Options-based funds averaged 4.2% total return over the 15-year period - tied with the S&P500 over the same period. The options-based funds had higher risk-adjusted returns (as measured by the Sharpe Ratio and Sortino Ratio) than the S&P 500 and S&P GSCI Indexes. The options-based funds had lower volatility and lower maximum drawdowns than the S&P 500 and S&P GSCI Indexes.

Listener Mail: Listener questions and comments

Question from Alpha Numero. Happy 2015. It seems like we are looking somewhat top-heavy in the broad indices these days. I typically run portfolios as long equity - usually spy - with an OTM 1-2 month covered call - typically around 2.5%-3% out of the money. I often pair that with a farther 2-3 month OTM put - typically 5% OTM. In the current market would you recommend tightening up on that put - perhaps to around 2% OTM? This will undoubtedly result in a debit but I am ok with that if if preserves my portfolios. Would you also recommend tightening the covered call strike to reduce the net outlay on the position? What other strategies would you recommend for practitioners like myself who want to remain in the market but are concerned about near-term risk?
Question from RVC10. Are there any special tax considerations I should consider before using options on behalf of my clients?
Question from John D. Can you please explain the concept of risk premium as it applies to options trading and hedging?
Question from JPK211. 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?

Tricks of the Trade: Short-duration contracts are all-the-rage in the options market these days. SPX Weeklys acounted for approximately 32% of overall SPX contract volume in 2014, up from approximately 23% the previous year.

Looking Back on 2014:

Misperceptions from 2014 - Despite "low" VIX options, volume still strong in 2014. Vol/VIX was too cheap. OTM call buyers did well.
Ukrainian crisis in Q1/Q2 and market volatility in October were two primary drivers this year.
The ongoing oil meltdown as well.
What option strategies worked in 2014? Put credit spreads and "Wheel of fun."
Takeaways from 2014 - Do not get married to a single strategy.

Looking Ahead to 2015:

Things to keep in mind - It might be time for a smart hedge. Volatility has volatility.
Exchange fragmentation will continue.
Expand your horizons.

Advisors Option 25: Mystery of the Covered Strangle

Options 101: Covered Strangles/Covered Combos

What is it? Long stock, covered call, short put. Why do it? To collect more income than a standard call or short put. Why not do it? Increased margin requirement, you will increase your stock position to the downside.

Note: Call and put should only be sold on strikes where you are comfortable buying/selling the stock.

Listener Mail Extravaganza

Question from Neil Berg - Love the show. You have discussed financial advisors using options for income generation and risk management on previous episodes. Is that the only acceptable use case for advisors and their clients? What about the speculative usage of options? Do you feel it is suitable for advisors to utilize options for that purpose? If so, which strategies would you recommend?
Question from Spartan16 - I have noticed that options tend to lose a substantial amount of value approaching long holiday weekends (Thanksgiving, Labor Day and others). Is this a known phenomenon in the markets, and is this something I can take advantage of as an income trader?
Question from Allen B, Baton Rouge, LA - First - love the network. You fill my commute with knowledge. Second - I have just discovered advisors option and have been listening to the archived episodes. In an earlier episode the RCM representative - sorry, I do not remember the name - mention a triple income strategy. I understand the two income components of selling the put and selling the call, but what is the third income component to this strategy? Thank you again for so much great free education.
Question from Michael Roberts - I came across your program while looking for new diversification options for my clients. I find your suggestions about collars and protective puts very interesting. I have also been reading new research about volatility itself being positioned as an alternative asset class. This leads me to two questions:
Do you agree that volatility is an asset class?
What is the best process to gain exposure to that asset class for my clients? Is simply buying an options with a substantial vega component sufficient, or must I purchase a dedicated volatility asset such as VIX options or an ETF life VXX?

It is all listener mail today on the Advisors Option, so let's dive in.

Question from Luke Davis. Hi, I am wondering whether advisers are legally enabled to use any strategy that an individual might use in his own account. In other words, if I allow an adviser to invest a portion of my assets, may he use them for day trading, arbitrage strategies, etc.? I have heard of U.S. based un-registered advisers doing this for foreign clients, but refusing to do it for domestic clients, and am wondering if there is some compelling reason why they could not register and do so. Thanks
Question from Frank. My advisor has expressed concern in the past over the time commitment and complexity that come with using options strategies. He says I am the only client who requests them so he would be spending an inordinate amount of time for just one account. What strategies would you suggest to minimize his time investment and make him more open to the possibility of using options? Thanks for this program.
Question from Lucas Nuel. Got a question for Randy from Swan. He talked about buying two-year LEAP puts and then rolling them at the one-year mark. Why the two-year period? Would it be cheaper and perhaps more effective to use one-year LEAPS and perhaps rolling them when they hit the six or perhaps four-month period? That would save on the initial premium outlay but also avoid the rapid time decay period that occurs in the final few months of an options life. Can he talk a little more about the thought process that went into selecting the longer-term put vs shorter-term as well as the roll period.
Question from Mitch76. Can you talk about the place that individual equity options should have in your portfolio vs. broad indexes. Judging from previous episodes it seems that the bulk of your focus is on indexes. Is that due to the volatility risk posed by individual names like APPL, NFLX, etc. Would an overlay or "holy grail collar" approach even be as effective in individual names vs. indexes or are they better suited to premium harvesting strategies like iron condors. Great program touching on a very underserved area of the options market.
Question from Timothy Andrews, Spokane, WA. Can you talk about the influences of 60/40 tax treatment on your option strategies?
Question from Neal Magny. Question for Advisors Option. What questions or topics would you like to see on any forthcoming options certification or test for for financial advisors? Trading? Regs? Bit of both? Thx.
Question from TheInca. This may be a touchy subject, but it is important - What is an appropriate pay rate for option advisors? 2/20%? Some flat hourly rate? since they are doing more, should they get more? What should I look for when I am picking one of these guys?
Question from J. Ingrisali. Hello everyone and thank you for your time. I would like to know what you consider to be an appropriate level of options involvement for a typical financial advisor. Should I just expect them to have a basic understanding of income and risk management - aka protective puts, covered calls and collars? Or should I expect them to facilitate my active trade mentality with strategies such as iron condors, butterflies, time spreads, etc. I guess what I am asking is how active should my advisor be with options? If I expect him to help me adjust and roll my positions, am I asking too much from a guy with dozens of other clients?

Options 101: Options on Futures as a Diversification Tool

Futures options strategies. Covered call & Protective puts both require underlying futures positions - Most advisors looking for diversification typically want bullish exposure to the underlying. Stock/Futures replacement strategies. Vertical call spread. Spreads with wings.

The Buzz: Commodity Trading Advisors bounce back to post positive performance in August. Following a tough month for returns in July, all managed futures indices calculated by Newedge reported positive performance in August. The strong month means that all Newedge managed futures indices are also now in positive territory for 2014 YTD.

Listener Mail: Listener questions and comments

Question from Kevin Duggan. Regarding no cost collars with long put LEAPS and short term call writes. How do you manage them when the stock drops? Then the calls. I want to write have little premium since they're now way OTM and, I don't want to lock in a loss by getting assigned at a lower strike than I paid for the stock. So a question for Randy since he has a lot of experience in this area: When it becomes apparent that my client won't be able to recover the premium paid for the put, how do I manage/close the collar without a loss? Details please (fry my brain, I can take it!). Also, the lure of "no cost insurance" gets me the meeting, how do I explain the worst case scenario and still get the order? Thanks.
Question from Alan Charles. I am a client of Wells Fargo. After listening to your show, I decided to check out Well Fargo's options offerings. This particular paragraph caught my eye: "Please note: Although options can be used to hedge an existing investment, options can also expose you to potentially significant risks. An investor who purchases options may lose the entire amount committed to the options in a relatively short period of time."I understand that they have to include disclaimer material, but does that seem like they are essentially saying "do not use these products at any cost."What is your view of Wells Fargo? Are they an options friendly shop or should I take my business elsewhere? Great show! Great network! Nothing else like it on the dial.
Question from Sea Biscuit. Hey guys! Digging the Advisors Option program. Just discovered it while listening to Options Boot Camp through you mobile app for android. I heard you guys mention extrinsic value on an early show. I am still not clear on the difference between extrinsic and intrinsic value. I know intrinsic changes with the value of the underlying, but what about extrinsic? Does that also change with the underlying, or can it move without it?
Question from Christian. If you buy an option on a company that ends up merging or being bought out with another, what happens to the option you own?
Question from Ingraham. Question from the OIC boys Eric and Alan G - You guys travel the world talking to advisors about options. Which firms do you feel are the most options-centric?
Question from C. Dutney, Ithaca, NY. How do I find an advisor in my area who is skilled in the topics that you discuss on your program? Is there some database I can access? Does Mr. Swan's firm take individual clients from my area? My account size is in the low six figures.
Question from Cat. I want to set up an options trading account for my son (who is 23 years old) and I want him to learn to trade options in a risk-managed way - I do not really want him to know that he can use options for taking stupid risks (he will probably figure that out on his own soon enough). I contacted the customer services people at Firm X to see how an account could be set up to achieve my goals and was told that initially all he could do would be to buy puts and buy calls. Seriously? That's exactly what I do not want him to do. I want him to control his risks better than that and to learn to put on spreads from the get go. Is there any way that my goal can be accomplished?

Options 101: Many clients are sitting on gains in their portfolios right now and are rightfully concerned about protecting them. Selling the assets with gains is a sure bet but eliminates future upside potential. This is an ideal use case for options.

Basic hedging strategies:

Protective put: the basic defensive play.
Put spread: ideal for protecting gains due to limited outlay.
Collar: the holy grail of options positions for advisors.
Ratio spreads/back spreads: ratios are tempting but can add risk to a portfolio. Back spreads may be more appropriate for some experienced.
Hedging an individual asset is relatively straightforward: simply implement the hedging strategy in the product you want to protect.
Hedging a broad portfolio is a little more difficult and requires determining the beta of the portfolio and the appropriate number of shares of the index product to hedge as result. Any tools or platform recommendations to assist with this process?

Listener Mail: Listener questions and comments

Question from Tyler Madison: I'm studying to become a CFA in Virginia. Your program has been tremendously helpful in preparing me for any options components of the exam. It has also armed me with potential options strategies to use for my clients. Thank you for this great content. You could really charge for this. If I may, I'd like to ask a question about open interest. I see this mentioned quite frequently by options analysts. What impact does open interest play in the options market - does an option with high open interest behave differently than an option with low open interest? Is this something I should pay attention to when trading options for my clients or is this not important? Thanks again for all of your insight - Tyler.
Question from J. Schaw, Ontario: Can the advisors options hosts recommend any good listed products that generate options income? I like the strategies you discuss on the show but simply don’t have time to manage all the strikes and such for my people. Available in Canada is obviously a big plus for me.

In this episode, Mark and Randy are joined by Joe Cusick, Vice President of Wealth and Asset Management at MoneyBlock.

Options 101: "Low VIX" is all over the financial media these days. Which makes it an excellent time to review the relationship between volatility & options. Haven't discussed volatility on the program since Feb 2013 and the VIX products since October 2013 so we'll review the following topics:

What is implied volatility?
Difference between realized and implied volatility?
How does high and low implied volatility impact options pricing?
If you trade options for your clients do you want high or low volatility?
What does it mean to have a "low VIX"? Is this level of implied volatility actually low?
Should advisors use VIX options to hedge their client's portfolios?

The Buzz: Credit unions help advisers expand use of options:

Listener Mail: Listener questions and comments

Question from Charlie Durant. I love the advisors show. Can you guys recommend a good tool or platform that will help me roll covered calls on my spy and individual equity positions more effectively? Right now I’m pretty much running a spreadsheet for my clients and then manually trading in and out of each position. Seems like there should be a better or easier way.
Question from Firestar. Can I use VIX options in my IRA accounts or are futures options banned due to leverage?

The Buzz: News out of China: OIC, Shanghai Stock Exchange content licensing agreement. Pensions seek bond diversification. Report: UK pensions miss out on returns. Chuck likes index funds. Retail investors not afraid of equity markets. Low VIX: what does it mean for volatility?

Listener Mail: Your comments and questions

Question from Neil Staffenberg: thank you for this program. It is very informative. I've heard you mention SMAs on this program in the past. I'm not familiar with this term. Can you explain what you are referring to and the significance it has for the advisor community.
Question from Avow: what do the hosts think of recent claims from advisor-centric firms like Charles Schwab that the market is rigged against individual investors? Should I be instructing my advisor to move me to cash? Is purchasing a put sufficient protection to my broad portfolio or are the options market rigged against me as well?
Question from Tim Nichols, Fredericksburg, VA: can you provide an overview of the CBOE put write index. The BXM has been discussed widely but I haven't come across much discussion or analysis on this sister product. From all the research I've encountered the product appears to perform quite well. It seems that structured products that include automation are the preferred tools for many financial advisors and planners. Would the panel recommend the put write index as a viable alternative for advisors looking to add options to their portfolio without the hassle of writing the options themselves?

The Buzz: An overview of the upcoming Options Industry Conference. What topics are discussed at the conference? Who attends? Is there any benefit for advisors?

Listener Mail Extravaganza: The Advisors Options mail bag is filling up, so we are going to tackle as many as possible this episode:

Question from Neal Santos. I am in the market for a new advisor and your program has awakened me to the benefits of using options. What sort of licensing should I look for in an advisor to make sure he is qualified to handle options investments? Is there a specific options exam offered by the exchanges or perhaps OCC that I should look for? Thanks for the show.
Question from J. Andrews, Philadelphia, PA. I have multiple clients with retirement assets in broad based equity portfolios. I have already done the correlation work and calculated how many SPX and SPY puts it would require to both fully and partially hedge the positions. My initial thought is to utilize SPX contracts as the larger size will reduce the number of contracts and reduce the overall commissions. But I have serious concerns regarding slippage in the SPX. I fear that over the long-term the dramatic difference in the bid-ask spread of the two products will result in lower returns for my clients in the SPX. One or two bad fills is all it would take to wipe out several years' worth of commission savings. Are these fears warranted?
Question from Darren. Hi, does OIC have any option alert services? Thanks and I truly enjoy the program.
Question from Andrea Tillwell. I would be interested in crafting a custom overlay to my retirement portfolio. Does Swan offer a bespoke service to individual investors or only to institutions?
Question from Hudson Trader. I am starting a new RIA with a focus on covered calls. What firms do the best job handling options focused funds - tools, understanding, etc?
Question from A_Firm. My clients are pushing for more commodity and volatility exposure in their portfolios. I am comfortable with options but have not traded many futures, so I am looking at ETF options, particularly SLV, GLD, VXX, USO and UNG. What is your view on these products from an options perspective? Do they offer suitable depth and liquidity for clients looking for commodity exposure?
Question from TBard. You have discussed leveraged ETFs in the past but have not touched on structured products. This to me is the more interesting of the two product categories for a busy advisor or asset manager. Many of my peers use fee-based products that replicate protective put strategies. I have several clients in funds linked the BXM and am taking a long look at PUT. Since you've complained about lack of options tools and awareness on the part of major BDs in the past perhaps these products are the necessary half step. The goldilocks porridge of options products for advisors.

The Buzz: Overview/highlights for advisors from the RMC. Are advisors genuinely interesting in volatility products such as ETN, VIX ETPs, etc.? The one-year anniversary of mini options is upcoming, what's the feedback from this product? What is the panels take on the most recent Goldman-Sachs study?

Listener Mail: Stock Replacement Using American-Style Calls

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 cannot fully compensate the option holder for the missed dividends as the value cannot 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.

Options 101: Straddles & Strangles

Straddle: Buy/sell a call and put on the same strike.
Long straddles. But be careful of high decay. Flip that around and you have a short straddle.
Strangles allow you to benefit from significant underlying with smaller premium outlay compares to straddles. High decay still exist. Flip that around and you have a short strangle.
Covered Straddles and Strangles.

Listener Mail: What do you want to know?

Question from Avid Gardener - I am looking for ways to use options to establish very low cost, or hopefully free, bullish positions on stocks and ETFs. Is this possible or are my expectations unrealistic? Any specific strategies you could recommend would be greatly appreciated.
Question from Istafan - I am thinking of becoming an RIA or CFA. What should I expect on the exams from an options perspective? Any tips for an aspiring advisor? Thanks for your informative program. It has inspired me to pursue this as a career path with an emphasis on options.
Question from INY06 - Quick question for Randy - Just what is reinsurance?

Options 101: Mini Options

What are mini options?
Which underlying stocks? The SEC approved mini options on five underlying securities: Apple Inc. (AAPL), Amazon Inc. (AMZN), Google Inc. (GOOG), SPDR S&P 500 (SPY) exchange-trade fund, and SPDR Gold Shares (GLD) exchange-traded fund.
What is the use case?
Why would you not want to use mini options?

Tricks of the Trade: The Right Skill Set

Today we will discuss the options skill set that a good advisor should bring to the table: how to hedge. It's a critical skill, particularly in this market environment. Every advisor should understand buying puts. How to write calls:Generate income on an equity portfolio. Put it together:How to construct a collar. Understanding how high and low volatility impacts options prices. Writing puts instead of using limit buy orders for stocks. Understand basic vertical spreads.

Listener Mail: Keep those questions coming in

Question from C. Davis, Portland, ME. Did you guys hear the episode of NPRs Marketplace where the financial advisor slammed options as "riskier than penny stocks?" What do you think?
Question from Dog Fan. How much should I reasonably expect to pay for a financial advisor who can do all of the things you discussed? Is there a set percentage or rule of thumb that I should go by? I imagine all of these skills would result in hefty fees.

Advisors Option: Year in Review

Options 101: A Year in Review

Options in Lieu of the Underlying
Stock Replacement Strategy
Stock Repair Strategy
"Wheel of Fun"

Listener Mail: So, what do you want to know?

Question from Charles A. - I have heard it said that you should never exercise an option early. Is that accurate? Are there no scenarios when it would be appropriate? What is the point of paying for a right that you never intend to utilize?
Question from Mr. Underhill - In your opinion, what is the sweet stop between paying too much time premium for a position versus paying too much time decay for a position?
Question from Tom G. - My advisor uses leveraged short SPY ETFs to hedge my portfolio. Your thoughts versus using puts?
Question from "Joe Bagadonuts" - Hey Longo! Is that Italian? Cause I got a cousin, Vinny Longo from Bensonhurst. This is Joe Bagadonuts from Boca Raton. I go naked short on puts sitting here in my NY Jet boxers, and I've made a ton of moolah on them GOOG thingies. What you guys think of them mini doo-dads? Are those minis like the little cannoli I get at Publix Market here on SW 18th St? I love those little things! My wife won't let me eat the big Italian Arthur Avenue Dolce anymore, so thank the Lord for the minis!

Options 101: The Stock Replacement Strategy

Using options in lieu of stock.
What is stock replacement? What are the advantages of stock replacement over just owning stock?
What are some scenarios where you might want to consider a stock replacement strategy?
Jazz up your covered call by using a stock replacement to save money and improve returns.

Listener Mail: What do you want to know?

Question from Sal S, Fort Worth, TX - Most of the firms where I house my client account are pretty worthless when it comes to options. Rather than go through the hassle and paperwork of buying a put, what do you think about using an ETF like VXX to generate a volatility hedge for my portfolio?
Question from Avantage - Do I need to fully understand the Black-Scholes formula to trade options?
Question from Nick Thomas - How long do I have after the close of trading on expiration Friday to decide whether to exercise my clients call options? Also, do you have any good rules of thumb when deciding whether or not to exercise?

Options 101: Using VIX options/futures and volatility products as hedges.

What is the VIX? How is the VIX calculated?
How are VIX options priced?
How do the greeks work with VIX options?
VIX is not a perfect hedge that offers pure inverse correlation to the S&P.
Beware of the VIX settlement process and some of the other issues traders encounter during it. VIX settlement was 10/16 this month.
There is an entire universe of VIX-related products out there including VXX, TVIX, etc.

Listener Mail:It's like Dear Abby, but for options

Question from Neal Tillman, CFA: We are at all-time highs in the market right now. Most of my clients account are long equity. My average account is sitting on gains of $60K-$100K for the year. I do not want to lose those gains if the market corrects, but I also do not want to sell these positions and miss out on future rallies in the broad market. For the sake of this discussion let's assume I am sitting on a $1M portfolio with heavy exposure to SPY. How would I insure this portfolio to protect a $100K gain using SPY options? How much would it cost me to protect that $100K gain through the end of the year? Your insight on this issue would be most appreciated.
Question from Alamo: If I buy puts to protect a stock that I already own in my account, does that count as a sale for tax purposes? Is that a taxable event?