Options Boot Camp

View Top 200 Chart

Back to Rankings Page

Latest Episodes:

Options Bootcamp 26: Calendar Spreads Jul 19, 2013

Show notes

Options Bootcamp 26: Calendar Spreads

Basic Training: Calendar Spreads

This builds on the knowledge from episode 13 "Basic Spreads" and episode 14 "Advanced Spreads" from December.

What is a calendar spread?
Why would you want to use a calendar?
Calendars are much more complex that basic textbooks tell you.
The delicate balance between gamma and volatility in a calendar trade.
Can't use P&L diagrams
How do you manage a calendar?

Options Bootcamp 25: Using Options in Retirement Accounts Jul 03, 2013

Show notes

Options Bootcamp 25: Using Options in Retirement Accounts

Basic Training: What can and can't you do with options in a retirement account. Retirements accounts do not let you use margin. Stick to the covered calls.

Mail Call: Listener questions are filling up our inboxes

Question from Aman16 - Where does the "Iron" part of Iron Fly and Condor originate from?
Question from Tim Phillips, Boston, MA - What is your referred way to express a near-term bullish outlook on a stock? Write an ATM or near ATM put or use a stock replacement strategy (deep ITM call)?
Question from T_BO - When should I use a stock replacement strategy vs. call or call vertical?
Question from Anaz9 - If I buy 1 ATM, sell 2 OTM calls in a ratio spread, how is the margin calculated on the naked portion? Is it the same as selling naked OTM?

Options Bootcamp 24: Alternative Income Strategies Jun 26, 2013

Show notes

Basic Training: Alternative Income Strategies: Writing covered straddles vs. covered calls. What are the benefits of writing covered straddle vs. calls? What are the drawbacks? Remember your synthetics: Covered straddle = short two puts.

Some additional pros and cons of this strategy.

Mail Call: Listeners Take the Mic

Comment from Ronald Yuravich: I heard your podcast of the Option Boot Camp episode talking about straddles. I don't like straddles because I would have a gain on one side, but it didn't cover the loss on the other side. I prefer strangles better, but only when vol is high, like in 2008. On September 15 I placed a trade on XOM after I got home from work that would be placed for the opening of the next day. I bought 3 JAN 09 90.00 strike calls and I bought 2 JAN 09 45.00 strike puts. XOM was trading around 65.00 a share at that time. The next morning when the markets had opened, I checked to see if my trades were placed, and they were. I was watching Bloomberg around 11:00 AM and saw that XOM was trading around 58.00 a share. I went online and closed the put side for an 18% gain. Later, when I was at work I received a text message that told me that my call side was in money, so I went online and sold the call side for a 34% gain, altogether I made 42% in less than a day. Ron
Question from Theodore Roland - To what do the hosts attribute the rise in popularity of the VXX ETF? How can an ETF based off the implied volatility of the VIX be such a popular product? Do you think retail traders should be using options on this product versus the actual VIX options?
Question from Alex K- What is a risk reversal and when should a trader use this strategy?

Options Bootcamp 23: Straddles Jun 11, 2013

Show notes

Basic Training: Getting to know the fundamentals

What is a Straddle? Why would you want to use it?
Straddle pros and cons.
Iron Butterflies and Iron Condors are straddles and strangles with protection.
Gamma scalping is the only way to really make long straddles profitable over the long run.
Exiting straddle positions is difficult to do effectively. Using straddles pre-earnings

Scammers love to pitch straddles, saying "Make money in any market condition." Be careful.

Mail Call: Even bootcampers get mail privileges.

Question from Alan Utchins, Baltimore, MD - I read with great interest the recent article about options trading in the New York Times. The article seemed to contradict everything you've discussed on this fine program. They highlighted several studies that they claimed prove that most options traders lose money. What is your response to this? Is this essentially a hit piece on the options market or does this author have some valid points?
Question from Optrader - What books would you recommend about options trading (aside from Mr. Passarelli's, of course)?

Options Bootcamp 22: Exit Strategy May 29, 2013

Show notes

Options Bootcamp: Exit Strategy

Basic Training:

Why is it so important to have an exit strategy? What are the rules of thumb when closing out positions? Should you be more aggressive when closing out long or short positions? What are the rules of thumb regarding when to roll you positions vs. closing?

Mail Call: Boot campers have so many questions.

Question from Teddy Z: Mark - Love the show! I've listened to every episode. I think I'm getting a handle of this stuff now. Just wanted to ask - What do you guys think about ETF options? Are there any you prefer over others? Perhaps that's a good topic for a future show.

Question from Alexander Gustaffson, Stockholm, Sweden: Guys, just want to let you know that you have a big following in Sweden. Maybe you should plan a live show in Stockholm one of these days? My question regards single stock futures. They are very popular in Europe but don't appear to have caught on very much in the U.S. I wonder why that is? Can you discuss the hedging of option positions with single stock futures - the pros & cons? Thank you!

Options Bootcamp 21: Playing Defense Apr 30, 2013

Show notes

Options Bootcamp 21: Playing Defense

Basic Training: Playing defense with options: it’s very important right now!

Basic Defense: Protective Puts (full overview in Ep. 3)
How do you hedge your position with protective puts?
Intermediate Defense: Put Spreads and Ratio Put Spreads.
Covered Calls - (full overview in Ep. 4) How do you generate income with a modest hedging impact?
The Power of the Collar: combining the put and the call into a beast of an option. This is the favorite defensive strategy of most financial advisors who use options.
The pros/cons of repeatedly doing zero cost collars.
Volatility Defense: VIX Options/Futures. The myth of VIX's perfect inverse correlation- there are problems with relying on volatility as your only hedge, i.e. black swans, days when VIX outperforms, etc.
The pros/cons of direct defense vs. indirect defense.

Mail Call: Hey recruits, what do you want to know?

Question from Tina K. - When (if) should I consider volatility products as a hedge?
Question from Mr_Zen - Can you explain the difference between iron condors and iron butterflies?
Question from Alan O - What do the drill instructors think of the Minis so far? Are they worth exploring for basic options traders?

Options Bootcamp 20: Options in Lieu of Stock Apr 19, 2013

Show notes

Basic Training: We present two choices for using options in lieu of stock:

Stock Replacement Strategy.

How does it work? Examples include:
An ITM leaps call purchase - requires premium over parity payment
Selling a one month ITM put - for the more options savvy trader.
By swapping out a LEAPS for an underlying, you get a much more preferable position from a Greeks perspective.

Stock Repair Strategy

Under the right set of circumstances, it can be very useful and practical. Appropriate for stocks that fall in value of 20-30%, that you feel within a few month can recoup half of it losses. How does it work?

Mail Call: Bootcampers get their questions answered.

Question from M Higgins: My financial advisor is not a big fan of options. He keeps trying to steer me into annuities and life insurance policies instead. What do you guys of those products as investment vehicle instead of using options?
Question from Mr. Anonymous: I've heard a number of options traders, including hosts on this network, use the term "legging" when referring to options trading. What does this term mean? Thanks for your help and for all of your fine options content. The Options Insider Radio Network is truly a unique options content destination for options traders.
Question from T Biz: What do the drill instructors think of the potential jumbo/max S&P contract?

Options Bootcamp 19: Margin Apr 01, 2013

Show notes

Basic Training: The topic this week is margin

What is margin?
If I have leverage in my options, why do I need margin?
Is it possible to not qualify for margin?
Why do you need a cash account? What can/cannot you do with a cash account?
What are some of the most common risks, mistakes or problems customers run into when implementing margin in their account?
What are the benefits of portfolio margin over other, different types of margin?

Mail Call: Let our drill instructors answer your questions.

Question from Jason Cruz, heyojayo: Would Bootcamp be able to detail the pros and cons of buying two 50 delta calls vs. one 100 delta call, or point me to an episode if there is one already?
Question from Tad Briggs: What does the term "risk reversal" mean? What risk am I reversing? How should I use this strategy in my training?

Options Bootcamp 18: The Joys of Synthetics Mar 06, 2013

Show notes

Options Bootcamp 18: The Joys of Synthetics

Basic Training: Today's topic is Synthetics

What is put/call parity?
Example of put/call parity.
What does it mean for your options trading?
What are synthetics?
What is a married put?
Why knowledge of synthetics is important for successful options trading.

Mail Call: Fall in for listener questions.

Question from EonJ: Does portfolio margin matter if I am just trading long verticals and ratio spreads?
Question from Phil S., Santa Fe, NM: I attended an options seminar recently where they promoted the selling of credit spreads in Apple and Google. I'm still somewhat unclear on the concept however. What exactly is a credit spread and how does it differ from other spreads like straddles, call spreads, etc.? Thank you for your time. I just discovered your program and I'm looking forward to listening to your earlier episodes.
Question from Ephram J.: I'm a CFP and I'm starting to add options to my asset mix. Does Sogotrade offer a platform and/or specialized tools for institutional/advisor customers?
Question from Timtim409: What is meant by a "stock replacement strategy?"

Options Bootcamp 17: Should I Buy, or Should I Sell? Feb 26, 2013

Show notes

Options 101: The quintessential options debate -- buy options or sell them?

Many options professionals lean toward "when in doubt palms out."
Simplify the options universe into two segments of risk: directional risk and volatility risk.
The use of delta and other Greeks when deciding or analyzing when to buy or sell options.
Short premium pros and cons
Long premium pros and cons

Mail Call: Recruits are asking a lot of questions.

Question from Tim Nagerty:Mark and the other drill instructors have repeatedly stressed portfolio margin on this program, but I'm somewhat confused by this concept. Can the hosts explain the benefits of PM for an options trader? I have about $70k in my trading account right now. Is it worth it for me to transfer in the extra $30k to me the $100k limit to qualify for PM? Lastly, does SogoTrade/Wang Investments offer PM for its customers? Thanks, love the show!
Question from Allison S., Spokane, WA: I thank you all for this wonderful program. Do you have any plans to take Options Bootcamp "on the road?" I'd love to meet you all in person.
Question from Joey Beltran: I've heard the term "backspread" a few times. Where do it come from? What does it mean? How do you use them?

Our TOPPODCAST Picks

Follow Us

Stay Connected

Related Podcasts

Links

Stay Connected