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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$100 Market Lesson I Learned Today

Option trading lesson: In tonight’s video, we’re going to go over all the trades that we made on Tuesday, September 22nd. So, the first one that I want to go over tonight is … well the first just quick closing trade that we had in Microsoft. So, Microsoft we closed out automatic working order to get…

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SPY Short Strangle Collects 81% of Initial Premium

Strangle: In tonight’s video, I want to go over a cool closing trade that we had in SPY. In particular, kind of use this as our case study here tonight because this adjustment that we made in SPY during all of the market craziness and high implied volatility, actually allowed us to take about 81% of…

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YUM Short Straddle Adjustment to Reduce Risk

Straddle: In today’s quick video we’re just going to talk about the one adjustment trade that we had today in Yum, which was our original straddle trade sitting right over where the stock was at about $85. Again, the only adjustment that we made to that today is rolling down the sure call that we have…

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Closing A Wide Iron Butterfly Option Trade for a Profit

Iron butterfly: In tonight’s video update we’re going to go over all the trades that we made on Tuesday, September 15th. So, today we had some pretty good activity this morning, closing out positions and then making some adjustments that we had talked about with elite members on the strategy call on Sunday night. Most of…

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Patient Option Traders Make Money

Option traders: In tonight’s video, we’re going to go over just the few closing words that we had today and the one quick adjustment that we had in EWW. First on deck is our position in XRT. Now, this position split. So this was a position where we entered six original contracts. Then XRT had a…

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How to Stack Short Option Straddles

Short option straddles: In this video, I want to go over a specific trade that we did in USO which is a stacking straddle that we’re going to go over. And, that’s a new trade that we entered today but before we do that I want to go over all the closing trades that we had…

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How to Trade Stock Market Volatility with Options

Volatility: In tonight’s video update, we’re going to go over just the two quick opening trades that we had for Tuesday, September 1st. Let’s start off with RIG. RIG is an additional trade that we’re entering, stacking this trade on top of an existing position that we already have in R-I-G for September. We’re adding this…

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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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Option Strategy Adjustments for Dividends

Option trade adjustments: In tonight’s video, we’re gonna go over all the trades that we’ve made for Monday, August 31st. Crazy, right that it’s already done with August? Seems like these months, they just start, and you feel like you have the entire month ahead of you, and then it just flies by. So we’re gonna…

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