Options Boot Camp

Latest Episodes:

Options Bootcamp 6: Complex Spreads Jun 19, 2012

Show notes

Options Bootcamp 6: Complex Spreads Basic Training: Today we're going to dive into complex spreads. What are complex spreads? We're usually talking multi-leg spreads. Calendars are when you buy and sell a call/put at the same strike price, but in a different month. Diagonals, a combination of a vertical and horizontal spread, can be a proxy to a covered call. The concept of the ratio, 1-to-1 on a simple spread, but you can play with the ratio. A stock repair strategy using diagonals, ratio risk reversals and collars. Roll Call: Mark and Dan sit down with Craig Pinkston, Senior Director of Operations at Zecco. Mail Call: Does the Theta decay occur just at open/close or is it a gradual decay throughout the day? (Via Facebook from Jason Cruz)

Options Bootcamp 5: Spread Trading May 17, 2012

Show notes

Options Bootcamp 5: Spread Trading Basic Training: Today we're going to dive into spreads. Spreads are really the defining characteristics of options. What is a spread? Why would you do a spread vs. trading an option outright? Max value of a spread is the differential between the two strike prices. Long call spread, aka vertical, examples with everyone's favorite stock XYZ. Spreads have components called legs - they are the individual parts of the spread.

Roll Call: Mark and Dan sit down with Christopher Newman, the Zecco Trading Vice President of Customer Service, and run him through a few questions:

A big part of the brokerage experience is support. What are some of the things Zecco does to ensure the customer has a great experience when they need support?
If I'm a Zecco customer, or a potential Zecco customer, how can I reach out to get support?What methods of communication does Zecco offer?
If I'm an options trader, will Zecco go the extra mile for me on the phone? Explain what options traders can expect in terms of phone support.

Mail Call:

Twitter question from DSCHWARTZ- You said buying options before earning was bad. What about spreads (verticals, etc)?
Email from Stephen Maxes, Des Moines, IA- I'm interested in trading options spread. Do I need a special options account to do this or does the regular option account work for spreads as well? Thanks and please keep doing the show. It has been very helpful for me.

Options Bootcamp 4: Selling Options May 07, 2012

Show notes

Options Bootcamp 4: Selling Options

Basic Training: Turning to the dark side! It's time to learn how to sell options. Why sell options? Time decay and theta. Collecting theta, instead of paying theta, turning an enemy into a powerful ally.Example: The Naked Call The Naked Short Put

Options Drills: The Covered Call Roll Call: Mark and Dan sit down with this Zecco Trading's President Michael Feser, to discuss Zecco in 2012. Given the difficulty for new retail traders in the last year, what can we see now, a full quarter into the new year? What issues may investors need to be cognizant of before coming into the market this year? Explaining the success of Zecco Share. Mail Call: Facebook questions from the Zecco community.From Chad: What is the difference between a married put and a covered call? From Austin: I have an IRA account which is approved for basic options strategies. My investment objective is to preserve capital and generate additional income while remaining risk adverse. What basic strategies can I use in this situation?

Options Boot Camp Episode 3: Buying Options Apr 19, 2012

Show notes

BASIC TRAINING - BUYING OPTIONS

Buying Options, with special guest Joe Burgoyne from the Options Industry Council.
Benefits & Downsides of buying options.
The Greeks most relevant to novice options buyers.
Bullish Example: Buying a call
Bearish/Defensive Example: Buying a put.
Common options buying mistakes: Buying OTM options vs ATM/ITM options, Intrinsic vs. Extrinsic value, Loading up before earnings.

ROLL CALL Mark and Dan sit down with this episode's guest Benny Joseph to discuss the Zecco mobile app. They cover a wide range of topics including:

Can it execute options orders?
Can you access the greeks of your position via the mobile app?
Can you execute complex, multi-leg spreads via the mobile app?
What features of the Zecco mobile app set it apart from the rest of the pack?
What has the feedback been since launching this new app?

MAIL CALL Mark and Dan answer questions from Zecco's Facebook community including:

From Arsalan: If I buy a call option and when it is time to exercise it, will that be done automatically (from the strike price or by the cost basis price, which would be the premium+strike?) or will I need to do something, as well as if I don't have the buying power to exercise the option, what happens, can I just have it buy and sell the stock right then and there and just have the profit.

From Mike: Is Delta a measure of how much the option moves in relation to the stock? Example. A delta of 0.7 would mean if the stock moves 10%, the option would move 7%?

Options Boot Camp 2: The Greeks Apr 11, 2012

Show notes

Options Bootcamp 2: The GreeksBasic Training:

Risk variables (aka "the Greeks") are Delta, gamma, theta, and vega.

Delta: The measure of the sensitivity of the options' price given a change in the underlying instrument. It's also used to view the likelihood of whether an option will expire in-the-money.

Gamma: The rate of change of an options' delta given the change in the underlying instrument.

Theta: The rate of change of an options' value given a change in the number of days until an options' expiration.

Vega: The rate of change in an options' value given the change in implied volatility.

How professional traders use the Greeks and ways that novice traders can use them, too. It's a symbiotic relationship.

Roll Call

John Foley joins Mark and Dan to discuss the how customers can use the Greeks to enhance their trading, where they can find the information in the Zecco platform, and how to avoid mistakes they have made in the past.

Options Boot Camp Episode 1: Options Basics Mar 26, 2012

Show notes

Options Bootcamp: Premiere Episode

Host: Mark Longo, The Options Insider
Co-Host: Dan Passarelli, Market Taker Mentoring
Guests: Michael Raneri and Tony Leach from Zecco

Basic Training: Dan and Mark make the case for trading options, shattering myths and resetting expectations. The evolution of options: eliminating barriers to entry, increasing the flow of information, commissions. What is an option? The impact of timeframe on options. What are calls and puts? The leverage, safety, and risk management components to options. How options can be income-generating. Long call and long put examples.

Roll Call: Mark and Dan are joined by Tony Leach and Michael Raneri from Zecco. They touch on the need for more options education. Why did Zecco want to educate the retail options trading audience? For Zecco, why options, and why now? Zecco's new trading platform: The single trading page approach, contextual trading, help mode, ease of spread execution, the depth of spread calculations within the strategy chain, customization options, ratio spreads, and the many functions available in the mobile app. Zecco's social media initiatives. The importance of knowing how to effectively use options in your portfolio.

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