Options Bootcamp 67: Getting Back to Basics
10/18/17 • 50 min
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
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
Previous Episode
Options Bootcamp 66: Trading Calendar Spreads During Earnings
Options Drills: What is a calendar? How do we set them up for earnings? Strike/Month selection? Should we carry them through the event? When do we take off? Calendars vs. Diagonals?
Mail Call: Fall in recruits and get your questions asked.
With $VIX giving up the ghost - which products are you hoping will provide new sources of #Volatility for your #options trading?
- 33% - Crude Oil (WTI, etc)
- 20% - Metals ($GLD, $SLV, etc)
- 20% - FX (GBP/USD, etc)
- 27% - Indv. Equities-$TSLA, etc
VIX Limbo: Last Month 40+% of you said $VIX wouldn't break 9 in 2017. But recent events have us asking again: How low will $VIX get in 2017?
- Still Won't Break 9
- Won't Break 8.5
- Won't Break 8.0
- Lookout - 7 Handle in '17
Listner Questions and Comments: What is on your mind?
- Question from Lesnod - How do you get out of the straddles? One side of a straddle is always a loss correct?
- Question from Meatz - Would you describe successful options trading as primarily singles and doubles or more swing for the fences home runs?
- Question from Bulzeye7 - Are options worth it for day-traders? Or just for swing-traders?
- Question from Axel D - What does open interest only update once a day?
- Question from Mary - What is the shortest expiry available for plain vanilla options?
- Question from Lincan - My go to options strat is to sell covered puts on stocks that I want to buy then get paid to wait. If the stock comes my way I eventually trade out of it using a covered call. What do you think? Savvy or stupid?
- Question from Steve: With the VIX so low, I am not selling a lot of options anymore, because I am afraid that I will not collect enough premium. Am I thinking of this incorrectly?
Next Episode
Options Bootcamp 68: Mail Call Palooza
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?
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