Options Boot Camp

Latest Episodes:

Options Bootcamp 76: Assignment Risk, Spread Deltas, Minis and More Jun 25, 2019

Show notes

MAIL CALL

Question from Joe and Linda - I have been knee deep with you guys for the last 14 months and can't Thank You enough for the wealth of information you provide. One of my favorite quotes: " Your generosity is only exceeded by my gratitude." I have a long commute to work in the morning and have managed to listen to all 240+ of the Options Playbook, all of the Bootcamp, 90% of the OIC stuff as well as in and out of the Options Advisor and Futures show. Also haven't missed Options Block for the last few months.

I purchased Dan's Trading Options Greeks book and was wondering if he had an audio version. Could easily listen to it on my morning commute.

You so much for all your help, looking forward to the future with you guys. Going to be successful enough to be able to travel thank you guys in person! Thanks Again!

Question from Rayman5839 - Hi! Is the option premium counted toward exercising an option when in the money?. New to options, thanks...So it would only be profitable if the intrinsic value heavily outweighs extrinsic?

Question from Thomas Weber - If I am short a deep in the money call in SPY (delta near 1), what are the odds I will be assigned before Friday expiration?

Question from Alto - Which do you think has a better chance of happening - no more earnings calls or after hours options trading? And which do you think would be more impactful for options traders? Do you have a preference?

Question from 6654P - Why are options on CBOE and CME GROUP viewed differently?

Question from Paul Vasquez - When is the "official" close as far as options expiration is concerned? I've had calls assigned and had stocks put to me when the strike was out of the money at market close but it moved in and out during after hours trading. Any light you can shed on how expirations work would be appreciated. Thanks Paul, Sacramento, CA

Question from LL6 - Why did mini options fail? Are they done for good?

Question from Neels - Why is the logo for this show blue?

Question from RadH0k - Is spread delta just diff of the deltas on the two options?

Question from JackTam - Is there another exchange educator out there other than Cboe institute?

Options Boot Camp 75: Bringing Education Back With A Vengeance Jan 11, 2019

Show notes

Options Boot Camp 75: Bringing Education Back With A Vengeance

HOST: Mark Longo, Founder and CEO - The Options Insider Media Group
Co-Host: Dan Passarelli, Founder - Market Taker Mentoring.

Mark and Dan are bringing options education back with a vengeance! In this episode, they kick things off by looking back at a tumultuous 2018. Then they follow up with a super-sized Mail Call segment answering all of your pent-up questions about Apple, skew trades, options exchanges, options education, USO verticals and much more.

It's time to get back in peak options trading shape. It's time for Options Boot Camp!

Options Bootcamp 74: Trading Options in a High Volatility Environment May 30, 2018

Show notes

Basic Training: The Return of Volatility!

VIX is not dead.
VIX jumped from 13.99 on 2/2 to 38.30 on 2/5, and 46.34 on 2/6.
What are you thought on the recent resurgence of volatility in the marketplace?
Do you think this is a temporary aberration or have we transitioned into a new volatility regime?
What is the impact of higher volatility on options strategies? What is the impact of this change for options traders?

Mail Call: Options Flashpoll

The proposed third exchange from MIAX will raise the total number of U.S. Options Exchanges to 16. Is this a good thing for the options market? Is it the straw that finally breaks the camel's back? Or are you too busy getting great fills to care?

44% - More Exchanges the Better
22% - Please Make It Stop
34% - Don't Care: I get filled

Listener questions and comments:

Question from Allan Tullman - There was a lot of research last year regarding selling put options to harvest risk premium. Now that volatility is back is this an ideal time to harvest premium via put selling or does the increased volatility increase the probability of getting whipsawed?
Question from Scott Somer - For Jill Malandrino: When CBOE does their floor reports there is an open outcry din from the SPX, VIX areas. Are there areas on the Nasdaq PHLX floor that also have that type of din, and if so, what names are getting this din?

Options Bootcamp 73: Options for Veterans Feb 01, 2018

Show notes

Today's guest hosts are Dan Passarelli from Market Taker Mentoring, and Dave Russell, Vice President of Content Strategy at TradeStation.

Basic Training: Options Education for Veterans

Why is TradeStation pursuing veterans?
What is TradeStation doing specifically for veterans?
Which options strategies are most popular?

Mail Call: Options question of the week

Earnings season is upon us once again! It's time for #Tech to put its best foot forward. Which big #tech names are you looking to sling some #options on this week?

Amazon ($AMZN)
Microsoft ($MSFT)
Alphabet ($GOOGL)
Facebook ($FB)

Listener questions and comments:

Question from B. Fowl - What is the most common options question that you guys get?
Question from P. James Lamar - Can you guys recommend an options platform for an active option trader? I'll try to add a link to what I used to be able to do on my old platform but am no longer able to do. But I would like to find another platform that has single click entry and exit for options. If you know one please let me know. Thanks.
Question from Charlie C. - What's the weirdest thing you've seen in the options market?
Question from LTV$ - What is the cheapest way to buy an option?
Question from Tim T. - You guys slammed buying straddles on your last show. Are they really that dangerous? Or is it more a question of people not knowing what they were getting into?
Comment from Allen Van - My Favorite Greek - My options trading is mostly focused around theta. I really don't pay attention to the other Greeks. It's all about collecting the theta. Seems to be working so far. Am I nuts?

Options Bootcamp 72: Busting Options Expiration Myths Dec 14, 2017

Show notes

Basic Training: Expiration Mythbusting

What is expiration? Why do options expire? What does Triple Witching mean? Quadruple Witching?
How does expiration impact the Greeks? How has expiration changed with the advent of the weeklys?
Myth: Is it true that options control the stock market on expiration Friday?
What happens when you exercise an option? American vs. European exercise? Can you exercise options early? Should you? How does auto-exercise work?

Mail Call: Fall in for listener questions

Question from Christina Rico - Will we ever have daily options?
Question from Ian Nichol - Love the show. What do you guys (and lady) think of this VXX debacle with FINRA and Wells Fargo? Seems like a few of the folks at Wells Fargo should have been listening to this show.
Question from TradeHer - How do we get more ladies into #options?

Options Bootcamp 71: Protecting Your Gains Using Options Dec 07, 2017

Show notes

Basic Training: A Review of How to Protect Your Profits

Easiest method: Buy a 2-3 month put ATM or slightly an OTM put. Protect just those gains.
What do you do if you have a broad portfolio?
Hedging Rule of Thumb. Expect to spend about 2% of your portfolio for effective 3-6 month protection.
How do you reduce the cost of protection?
Buy a spread instead of an outright put, set up a collar, or set up a collar with a kicker.

Mail Call: It's time for listener questions

Question from Ariell - Why should I ever buy puts? I can use a stop order in the stock for free and then put that extra capital to work in my trading account. By my math using stops instead of puts can boost your account 5-10% per year. That's a lot of cheese.
Question from S_Warz - Do you trade options through dark pools
Question from Thankfulness - Do you have dark pool access?
Comment from H. Schwartz‏ - Who said option traders don't celebrate holidays!
Question from L. Penguin - I have a question for the Options Bootcamp. I'm a new options trader and I want to buy a LEAP call because it looks like the stock is going to go to up in the next 12 months, but I don't want to commit yet. I also want to generate income while I hold that position. What are your thoughts on selling the call while I have the leap? Also, this stock has an attractive dividend that I'd like to capture. Is this even possible? Interested in your thoughts, thanks!...I was thinking about buying a deep in the money call for the LEAP, and then depending on where the stock is trading at the time, sell closer to the money.

Options Bootcamp 70: Mistakes to Avoid When Trading Options Nov 28, 2017

Show notes

In this episode, Mark, Dan Passarelli and Jill Malandrino take on listener questions.

Options Drills: Today's topic was inspired by this listener question:

Question from MarkLitwin: How do you lose money in options in the most effective way?

Don't by ATM straddles
Don't load up on far OTM options because they're cheap
Don't trade earnings
Be careful with trading weeklies
Watch out when selling options going into weekends or holidays

Mail Call: Listeners take over

Question from ejh4isu: IF I buy/sell a vertical on SPX (or any equity stock for that matter) and hold until expiration, and SPX settles between the strikes, what happens? Example: sell 2395/2400 and SPX settles at 2397.
Question from Darqane: Assigned on short SPX puts means getting long the underlying? But how does that work if it's cash settled?
Question from Lesnod: How do you get out of the straddles? One side of a straddle is always a loss correct?
Question from Bobster: Can you trade options outside of U.S. trading hours?
Question from ejh4isu: Let's say you're short naked a bunch of puts and the trade goes against you, and you don't have the money to pony up? What can your broker do?
Question from BULZEYE7: Are options worth it for day-traders? Or just for swing-traders?

Options Bootcamp 69: Simple Options Tips for Stock Traders Nov 20, 2017

Show notes

Mark, Dan, and Jill were all in the Options Insider studio to record this session. Education, and hilarity, ensued.

Options Drills: What are options trading ideas that an active stock trader can use in their portfolio?

Getting paid to take on risk, cash-secured put
The wheel trade
Stock replacement strategy; what about using LEAPS?
Using a diagonal spread to generate income

Mail Call: Fall in for listener questions and comments

Question from Tiim: Why isn't it standard or maybe required to let people close out shorts for free below $.10?
Question from USA Patriot: What is ADV??
Question from Richard D: Are there any trades that if you did not have to pay brokerage fees would be excellent types of trades? I recently have been given the opportunity to trade options and equities for a near zero trading costs for about a year. I had in the past found some multi-leg spreads or underlyings with a really low prices unworkable because the trading costs made the potential gains or expected value too low. Thank you for your time and for the great shows you consistently point out! Best, Richard
Question from Ascentaa: What can happen to the current options being held of KITE which is acquired by GILD and is being delisted?
Question from Yieldhawk: What is the biggest size one could buy in options? If one had a long position of $1B and want to hedge w $10 million worth is that ok?
Question from Lonesome: Could you explain Theta and how it helps/hurts options traders? Should anyone ever buy OTM options?
Question from Butcherboyz: What options trading strategy would you say is best suited to people with absolutely zero knowledge of options? Thanks.

Options Bootcamp 68: Mail Call Palooza Oct 31, 2017

Show notes

Mail Call: Fall in while your drill instructors answer your questions.

Comment from Andrew McNichol - Big fan of your podcast. I appreciate how you start at square one and then walk listeners through every element of options and options trading. Thanks.
Question from Tim D. - How high do rates need to be before I need to worry about rho?
Question from Kraken1975 - Which of the Greeks do you utilize the most and why?
Question from Meatz - Would you describe successful options trading as primarily singles and doubles or more swing for the fences home runs?
Question from LCB - This is a challenging time to sell options due to low volatility. So does it stand that the opposite is true? Is it a good time to buy options? Particularly protective puts?
Question from Mary - What's the shortest expiry available for plain vanilla options?
Question from Ejh4isu - What qualifications do I need to work in the industry as a professional, i.e. as a trader? Is that a career path I'd even want to consider?
Question from Privateer - Permission to speak freely sirs! Hi guys, Love the show and the entertaining military themed education. I've recently been learning about an exciting strategy called writing call options with CFDs. The claim by the teacher is that CFDs can leverage the return on premium selling by ten times, and reduce your break even significantly. I'm very invested in how this could apply in selling both legs i.e. covered strangles or straddles. Can you discuss the downsides, upsides and hedging strategies used in this scenario,and how to mitigate risk especially on the put leg. Sirs yes sir!
Question from Axel D. - Why does open interest only update once a day?

Options Bootcamp 67: Getting Back to Basics Oct 18, 2017

Show notes

Your hosts for this episode are:

Mark Longo, Founder, Options Insider Media Group
Andrew Giovinazzi, Chief Education Officer, Option Pit
Jill Malandrino, Global Markets Reporter, Nasdaq

Introduction Segment: What are Nasdaq's options education initiatives? Why are options and options education so important to Nasdaq going forward? Creating content for RIAs.

Options 101: Going back to the Basics

Basic Options Primer

What are options?
Basic options terms
Why trade options instead of stocks?
What are the Greeks?
Why should traders care about volatility?
Buying options versus selling options
Start with paper trading
Know where you are going to get out before you get in

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