The Option Alpha Podcast

  • Author: Vários
  • Narrator: Vários
  • Publisher: Podcast
  • Duration: 140:51:16
  • More information

Informações:

Synopsis

We are on a mission to help you make smarter investments and trades its just that simple. So if that means pulling back the curtain on everything you know (or thought you knew) about options trading and the stock market then so be it.

Episodes

  • 133: Weekly Bull Call Spread Backtesting Results For DIA

    04/06/2018 Duration: 21min

    Show notes: http://optionalpha.com/show133With the rising popularity of weekly option contracts, many investors are choosing to trade weekly bull call spread option strategies as opposed to simply going long stock. The thought process is that by trading the weekly contracts you are able to more quickly adjust and profit from moves in the overall market. On today's show, we use our backtesting software to analyze the results of a weekly bull call spread in DIA and its performance compared to a monthly bull call spread in DIA. Naturally, this options buying case study will be very interesting for those investors who feel they have some sort of directional edge when markets are trending higher. 

  • 132: Can't Trade Unlimited Risk Option Strategies? [Here's 4 Great Alternative Trades]

    28/05/2018 Duration: 21min

    Show notes: http://optionalpha.com/show132Some traders wrongly assume that if they can't trade unlimited risk option strategies, such as straddles and strangles, that they should just avoid trading altogether. Today however, I want to present four great alternative trades to some of the more common unlimited risk options strategies and help you learn how to convert these trades into their synthetic counterparts. The goal of all conversions is to turn a trade from unlimited risk to defined risk so that the broker will allow it in your account or based on your options approval level.  I think that you'll find after you listen to today show it's much easier to trade unlimited risk strategies using a synthetic, risk-defined alternative than  you might have otherwise thought.

  • 131: Rolling Options Forward - Multi-Month Case Studies In TLT & IWM

    21/05/2018 Duration: 46min

    Show notes: http://optionalpha.com/show131One of the more advanced techniques options traders use to reduce risk and increase the probability of success of the trade, is to roll contracts from one month to the next. Today's show focuses exclusively on rolling options forward, by showing you two different case studies in TLT and IWM. Both trades took multiple months to turn a profit and multiple rolls of our contracts.  I'm going to also go out on a limb and say that this podcast is potentially one of the most favorite ones I've recorded because I truly believe this concept can help change trades that go against you for the better - and turn losers into winners.

  • 130: Five Quick Tips For Smoother Option Order Execution

    14/05/2018 Duration: 19min

    Show notes: http://optionalpha.com/show130Seems most traders constantly struggle with getting option trades filled. And since we never suggest using "market orders" as a quick fix for entry problems, today I'm offering five quick tips for smoother option order execution. It's a simple framework you can walk through the next time you're having trouble getting a trade filled in the market. Hint: #2 is the most common mistake and easiest one to fix right away.

  • 129: Do You Recognize These 4 Early Warning Signs Of A Non-Diversified Options Portfolio?

    07/05/2018 Duration: 16min

    Show notes: http://optionalpha.com/show129As options traders focused on income generation, it's important that we consistently work towards maintaining a diversified options portfolio. But are there any "earning warning signs" that we are starting to lose our grip and balance? In today's podcast, I've put together four things you can monitor so you don't wake up tomorrow and realize you've got a non-diversified portfolio that's in need of major repairs. These early warning signals can help you adapt more quickly to an ever changing market by making smarter trades and adjustments.

  • 128: Stock Market Direction Becomes Irrelevant When You Average Down

    30/04/2018 Duration: 23min

    Show notes: http://optionalpha.com/show128How important is picking the right stock market direction when trading options? Depending on how you trade, it can be either vitally important or not important at all. Today's podcast offers some insight and examples of why higher trading frequency and why averaging down (or up) around the market creates an environment in which market direction becomes more irrelevant the longer you trade. As retail traders, we want to try to replicate more and more frequent "resets" of our overall break-evens which in turn lead to less dependence on the market direction for profits.

  • 127: What Contract Month & Option Strike Price Should I Buy Or Sell?

    23/04/2018 Duration: 24min

    Show notes: http://optionalpha.com/show127You're ready to place an option trade and you're confident the stock is a good candidate. Now what? With dozens of contract months and hundreds of option strike prices to choose from - which ones do you select? In today's podcast, we'll help bring some more light to the "dynamic approach" we now use at Option Alpha for each and every trade we place. The framework and concepts around dynamic contract month and option strike price selection can help dramatically improve your long-term performance and reduce portfolio volatility.

  • 126: Manage Multiple Option Positions Without Having To Be In Front Of The Screen All Day

    18/04/2018 Duration: 20min

    Show notes: http://optionalpha.com/show126We're all busy; with work, family, school, kids, etc. And although many people might lead you to believe you have to be in front of the screen all day in order to manage multiple option positions, the reality it's not true. Yes, you do need to have access to the markets in order to trade right now (not in the future though), but you don't have to be glued to the computer screen all day. You can use some simple triggers and alerts to keep tabs on your portfolio while you are away or at work and be just as effective, if not more, than working at the trading desk all day. Inside today's show, we'll break down some of the best resources and tips on managing your portfolio with limited time.

  • 125: Learn How To Trade Options By Eating An Elephant In 90 Days

    09/04/2018 Duration: 28min

    Show notes: http://optionalpha.com/show125Want to learn how to trade options the right way but feeling overwhelmed? It's like this big giant elephant is standing in front of you and you have to figure out a way to consume it. And the best way to do anything in like, like eating the proverbial elephant, is to tackle it one bite at a time. So today, I want to introduce two ways of learning how to trade options; the first using frameworks, and the second using concepts. Both are effective ways to quickly process information, and more importantly, retain the information so you continue to build your knowledge base for trading. Plus, either one I feel could be done start to finish, including coverage of all options trading topics, in less than 90 days.

  • 124: The Ugly Truth About Selling Cheap Options

    03/04/2018 Duration: 24min

    Show notes: http://optionalpha.com/show124Selling cheap options with very high probabilities of success makes rationale sense on the outside. I mean, why sell options with a 70% chance of success when you can sell options further out that have a 90% chance of success. No brainer right? Well, not so fast. The options market is fair and efficient - and selling these far out-of-the-money options might look good from a win rate perspective, the total dollar profits you'll generate far under-perform the stock market. Today, we'll use our Options Backtesting software to run two option selling strategies on TLT. The first selling options at the 0.25 delta and the second selling options at the 0.05 delta. Inside we present the results and our analysis as to why selling cheap options could be less beneficial to your portfolio.

  • 123: Stop Focusing On ROI Options Trading Possibilities Until You Cross This Trading Bridge

    26/03/2018 Duration: 21min

    Show notes: http://optionalpha.com/show123At Option Alpha we believe (and the research confirms) that the options trading possibilities for retail investors are nearly endless. Higher returns and better performance for your portfolio, but only if, you cross this one trading bridge first. So many newbie traders learn about options and the stock market and experience a rush of energy and motivation to jump in with both feet and start trading. Naturally, this jolt comes from the expectation of huge returns. But without the proper framework and understanding of how portfolios evolve, all that excitement can quickly turn into burnout and failure. My goal today is to help you cross this proverbial "trading bridge" and learn how to confidently analyze option strategies before putting money at risk.

  • 122: The "Big Rocks" That Should Be A Priority For All Options Traders

    22/03/2018 Duration: 33min

    Show notes: http://optionalpha.com/show122As options traders we need to focus on the levers that really move the needle in terms of generating income and cash flow for our portfolio. There's no point in doing something if it doesn't contribute to the overall profitability of the portfolio right? It'd be like shoveling your driveway before a huge snow storm. Or washing your car before it rains. The wrong activity for the sake of being active serves no purpose. Today's show resets the foundation for options traders by focusing on the "big rocks" that should take priority. Get this right and you'll set yourself up for success.

  • 121: Small Tweaks When Managing Larger Trading Accounts

    15/03/2018 Duration: 26min

    Show notes: http://optionalpha.com/show121Trade long enough and save enough money and eventually, you'll need to make a couple small tweaks to your options strategy as you start managing larger trading accounts. Today's show is all about transitioning your options strategy in a way that optimizes the increased capital you have to invest. If you're not yet at the "large account" level we talk about, don't worry. One, you'll get there over time if you stay committed. Two, the concepts are important for all traders to understand so that you can start planning ahead as your account grows and as you add more funds in the future.

  • 120: Option Trader Success - Why Some Traders Are Frankly Always More Profitable

    26/02/2018 Duration: 24min

    Show notes: http://optionalpha.com/show120Over the last 10+ years I've seen thousands, and coached hundreds, of traders navigate the markets. And if you study option trader success long enough (and geek out about it as much as I do) then you'll quickly come to realize that success is nothing more than a persistent person with great habits and a clear mind. Today's show focusing on why I believe some traders are frankly always more profitable than others while re-visiting six key areas that differentiate them. I encourage you to take a close look at this list we present today and see what areas you might be able to improve on moving forward. Honestly, the perspective I get from running Option Alpha continues to be one of the driving forces for me to keep pushing forward on all fronts with this platform and community because I can quickly learn and adapt what works and what doesn't to my own trading style by watching and listening to other people. My hope is that today's show does the s

  • 119: Don't Use A $6,000 Trade To "Practice" Trading Options

    23/02/2018 Duration: 27min

    Show notes: http://optionalpha.com/show119The last couple weeks of trading for many newbie investors was quite the learning experience. The market fell from all time highs quickly and then recovered nearly half of that move in a single week. Still, we got a flood of emails from people who were not well positioned for the drop in equity prices and learned the hard way why you can't practice trading options with large, one-sided trades. One unfortunately person placed a single $6,000 trade in a $10,000 account and felt the full wrath of Murphy's Law. In today's show, I want to get back to basics here for a couple minutes and re-visit some important concepts or frameworks you can use when trading that will help you navigate the next move down in stocks. 

  • 118: Top 5 Options Trading Psychology Lessons I Learned Over The Last 18 Months

    10/02/2018 Duration: 24min

    Show notes: http://optionalpha.com/show118It's always good to look back and analyze what happened in the past. Often times it can help shape the future (good or bad) and how you trade moving forward. In today's show, I want to take some time to share my top five options trading psychology lessons I learned over the last 18 months. Many of these I scripted out well before the recent mini-crash we saw in equities so it's fitting to talk about now because my comments might not have hit home without the recent market volatility. Still, I encourage you to share your own lessons in the comments below as I'd love to hear the shifts and progress you are making as a trader.

  • 117: Let's Talk About "Deltas" For Options Trading

    22/01/2018 Duration: 29min

    Show notes: http://optionalpha.com/show117One of the most popular and widely used options greek is Delta. And while I believe that you can't necessarily learn about option pricing and option greeks in a vacuum as they all work together to represent potential price action for changing market conditions, having a solid understanding of how Delta works is important both in entering new positions and managing your basket of trades in a portfolio. Today's show dives a little deeper into the lead greek and covers both a basic understanding of what Delta is and how it works, plus some more high level insights into how I used Delta to enter our recent trade in XLE.

  • 116: Debit Spreads Vs Credit Spreads - When To Use Each

    15/01/2018 Duration: 18min

    Show notes: http://optionalpha.com/show116You've targeted a stock or ETF setup you like and want to make a directional trade. Maybe some technical indicator alerted you to a possible turn in the underlying or you just needed to hedge your portfolio with a new trade. Whatever the case, you are now left wondering why type of options strategy to pick. How do you decide between trading debit spreads vs. credit spreads and when should you use each style? In today's podcast, I'll walk through the different market environments and setups that might work best for each.

  • 115: How To Avoid The Big Mistakes Executing An Options Order

    08/01/2018 Duration: 23min

    Show notes: http://optionalpha.com/show115 As with many things in life the 80/20 principle can help guide and focus our attention on the most important aspects of options trading. In particular, trade entry and executing an options order correctly is critical to your success. I've often said that great entries save you from having to be good at everything else, like adjustments and rolling contracts. Today, I want to help you avoid five of the big mistakes you can fall subject to when placing a new trade. Some a small fixes while others will require a little more work on your part, but ultimately help you reduce risk (hint: it's the last tip in the show).

  • 114: Managing Inverted Option Positions - Once Difficult, Now Easy

    01/01/2018 Duration: 42min

    Show notes: http://optionalpha.com/show114Short straddles and short iron butterflies are some of our most profitable option strategies, and a consistent staple when trading in our PRO and ELITE membership levels. However, when it comes adjusting these positions and going "inverted" it can cause even the most experienced traders to freeze up. In today's podcast I wanted to walk through the process of managing inverted option positions and help you understand what numbers to track and how the pricing, profits, and risks work so you can confidently go inverted on your next challenged trade.

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