Box Spread Basics for Options Traders

Box spreads and arbitrage strategies are often synonymous with one another and referenced interchangeably in the options trading community. And after all, who doesn’t want a risk-free way to earn money, right? But like all things that seem too good to be true, box spreads carry some serious risks if you’re not careful in how…

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The Trader’s Guide to Index Options

Index options have continued to grow in popularity. Perhaps because they are easy to use, available in highly liquid markets, have favorable tax treatment in some cases, and offer a simple settlement process. Therefore, we’ve dedicated an entire show to help you understand what index options are, how they work, how they are different from…

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Protective Put Strategy Researching Findings

Hedging stock positions can be tricky business. One of the most common schools of thought is to use a simple protective put strategy whereby a stock investor would simply purchase a long out-of-the-money put option to act as “insurance” in case the stock fell. Sounds logical, but we’re skeptics here at Option Alpha and so…

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The Impact of Volatility On Options

Stock trading is easy to understand conceptually because it’s one-dimensional. Either the stock goes up, or it goes down. Clear and simple, at least from a trading and profit or loss perspective. Options trading, however, is multi-dimensional. Price, time, and volatility all impact the value and price of an options contract. On today’s show, we’re…

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We Stopped Trading Earnings After We Saw This New Research

Earnings season comes around four times a year for stocks, and, as traders, we’ve always loved the idea of trading these events for the crush in implied volatility and quick potential moves in option strategy positions. However, after analyzing 1,546 earnings events across 40 underlyings over 10 years, we decided to stop trading earnings events…

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The Misbehavior of Markets – Exclusive Interview w/ Co-Author Richard Hudson

We’re excited and honored to have a very special guest this week on the podcast, Richard Hudson, co-founder of the London and Brussels-based Science Business Publishing Ltd. He’s the co-author of The (mis)Behavior of Markets: A fractal view of risk, ruin & reward, which he wrote with famed Yale/IBM mathematician Benoit Mandelbrot. Our discussion, frankly,…

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Mastering Covered Calls (Free Audiobook)

This week on the podcast we’re doing something a little different and turning this podcast episode into a full-blown audiobook. Today I’m recording the newest book we released entitled “Mastering Covered Calls”. I encourage you to pick up your copy now, did we mention it’s 100% free, and follow along as you listen to this…

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Covered Calls – Top 3 Performance Insights From New Research

Today on the show we welcome special guest, Rob, who’s the co-author on our recent research report on Covered Calls. On the show this week we go over the top three performance insights we learned from our massive study on Covered Call Performance.┬áIf you trade covered calls right now or plan on using them at…

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OAP 170: The 5 Critical Factors for ANY Trading Strategy

Factor-based strategies and trading systems are all the rage these days. We’ve been promoting these for many years now but it seems that more and more investors are catching on. As a result, we wanted to cover the 5 critical factors that your trading strategy should have. To us, these serve as the foundational elements…

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OAP 169: Interview w/ Kevin Davitt – Former Market Maker & CBOE Senior Instructor

This week we’re very excited to share our exclusive interview with Kevin Davitt, a special guest with tons of experience not only as a former market maker, but as the Senior Instructor for The Options Institute at CBOE. As many long-time listener’s know, we are highly selective with people we choose to bring on as…

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