OAP 166: Understanding The Put Call Ratio The Right Way

When it comes to market signals and timing indicators, the Put Call Ratio is one that naturally jumps to the top of many lists. Because the indicator looks at volume in both put and call options, the logical conclusion is that we can interpret the ratio to signal us from an impending top or possible…

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OAP 165: Trading Options? Here Are The 11 “Golden Rules” To Follow

Personally, I don’t like rules. Mostly because I value freedom and flexibility so when someone says that I have to follow the rules I naturally push back. Things that confine me or tell me what to do don’t fly well with me. But that only applies to things outside of trading and investing. In the…

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OAP 164: The 2 Major Problems With Buying Options During Low IV Markets

Since we are option sellers and our edge comes from selling overpriced options out into maturity it’s natural to assume that if we want to sell options when IV is high that buying options during low IV markets is a way to make money in the other direction. We get it and understand the rationale…

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OAP 163: The 5 Month “Grind” Following XLE Short Put Option Assignment

This was a long trade. Maybe not the longest trade we’ve been involved in, but certainly one of the top ones as this short put option assignment lasted over 5 months. For most options traders looking to make a quick buck, this trade stretches their patience and conviction far beyond a reasonable level. Still, I…

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OAP 162: The Top 8 Investor Biases That Cloud Our Judgement When Trading

It might seem that the markets are a game of price, and while that might be mostly true, what they are is really a game of emotions. With enough self-awareness the “average” investor can do incredibly well. Better than many sophisticated investors. There’s so much to be said about controlling your emotions and recognizing biases…

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OAP 161: Interview w/ Kevin Smith & Tavi Costa of Crescat Capital

As many of our long-time listeners know, over the years I’ve become increasingly protective and selective with the guests that I invite to come on the show. Truth be told, we get pitched weekly for people looking to expand their reach. Somethings it’s just so off the wall and disconnected to trading that I have…

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OAP 159: How To Build An Options Portfolio With Just $3,000

This podcast is a long-time coming but one that needed to be done because we get a lot of questions from newbie traders about how to build an options portfolio with a small amount of starting capital. And while we openly suggest that you really start trading with at least $5,000 or more, as you’ll…

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OAP 158: What Should We Do About This Losing Option Trade? First, Trust The Process

Somewhere, possibly from another planet, this notion of trading options with a high probability of success transformed into a subconscious greed for 100% probability of success trades. And if you think that this mentality doesn’t exist in the modern market we are in, you should see the emails we get at Option Alpha on a…

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OAP 157: The Untold Story Of The 3 Little Pigs That Traded Options

A couple of weeks ago I was reading the story of the three little pigs to my daughters. And for some reason, I couldn’t help but think about the untold story of the three little pigs who traded options? Yes, it’s true, many people don’t know this but the three little pigs were actually given…

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OAP 156: The 4 Market Situations You Should Avoid Aggressively Trading

Many of our members understand the best times to trade options (i.e. higher IV setups when option premiums are expensive), but should we avoid trading during other market situations? Today’s podcast walks through the four general market situations I avoid aggressively trading in and explain why each type requires that you either sit on the…

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