OAP 083: The Casinos Edge & Why They Spent $45 Every Hour To Keep You In Your Seat

A casino’s edge ranges from 0.5% for blackjack to as high as 17% for some slot machine games. Now, of course, this edge may or may not play out on the first, second, or tenth roll of the dice. But they are not in it for the short-term game. You see, the casino doesn’t have…

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OAP 082: [Case Study] How We Cut The Loss On This Bear Call Credit Spread By 37%

We can’t control the stock market – yet many of you try to will or hope stocks to move up or down as needed for your position to make money. Eventually, you’ll come to realize that it’s an impossible dream and the harsh reality of transiting from novice to professional investor requires a more consistent…

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OAP 081: Why More Fundamental Investors Should Trade Options & The Netflix Effect

Fundamental investors are like the wooly mammoth; big, strong, powerful, yet destined to become extinct in the future. And while there is absolutely nothing wrong with the core beliefs and activities of fundamental investors, I just personally believe that the same passion and hard work could be applied to the options market with much better…

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OAP 080: The 3 Big Reasons Why Your Option Strategy Payoff Diagram Is Different Today Than At Expiration

Your option strategy payoff diagram is an ever evolving and changing animal. Unlike stocks which have one-dimensional payoff graphs, either upward or downward sloping, and theoretically unlimited holding periods, option strategies are impacted by cubic pricing events. Namely, time decay (Theta), implied volatility (Vega) and interest rates (Rho) which can cause your payoff diagram to…

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OAP 079: How To Trade Calendar Spreads – The Complete Guide

Today’s podcast is all about learning how to trade calendar spreads. And while newbie traders might find them a little difficult to understand conceptually at first, I think you’ll find our talk today to be incredibly helpful as we break down these time spreads from start to finish. During the show, I’ll walk through setting…

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OAP 078: Is Your Investment Portfolio Unbalanced? 4 Ways To Fix It & Get Back To Neutral

I know one of the key elements to successful options trading long-term is maintaining an investment portfolio that is consistently balanced. And when I talk about balance, I’m not talking about 80% stocks and 20% bonds – that’s portfolio diversification. Unlike traditional investment strategies that favor 99% of the portfolio invested in long equities and…

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OAP 077: Scared Of Being Assigned During Options Expiration Week? Here’s The #1 Reason To Stop Worrying

Options expiration week can be a scary time for some traders as they struggle with fears about short option contract assignment. And while the reality is that most options are not assigned, it still creates anxiety and confusion about what to do with short positions that are in-the-money. On today’s podcast, I’ll walk through the…

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OAP 076: Options Trading Education – The Importance Of Setting Deadlines & Goals

Our #1 core value here at Option Alpha is that options trading education comes first before anything else. I believe that you have to crawl before you can walk in this business and it’s why all of our trading courses, guides, and checklists, podcasts, webinars, etc. are completely open and free. Still, I understand that…

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OAP 075: Portfolio Drawdown Stats From 44,801 Backtested Option Strategies

I’ve been trading publicly on Option Alpha for more than eight years now, and I’m still baffled by the number of investors who get absolutely shocked when option trading portfolio drawdowns occur. I’m talking ALL CAPS emails, mind blown, ripping their hair out shocked that a trading system wasn’t a 100% probability of success. And…

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OAP 074: How To Trade Straddles & Strangles In Small Brokerage Accounts

Most newbie option investors start trading with small brokerage accounts. Whether by choice or necessity, the average investor opens up their account with approx $10,000 according to most brokers. And while this isn’t a small amount of money by any means, it does limit your ability to trade more aggressive options strategies like straddles and…

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