Options Boot Camp
About This Show
Options Boot Camp is designed to help get you into peak options trading shape by teaching you options trading inside and out, basic to complex. Listeners can even submit their own options questions to be answered on the program.
Most Recent Episode
Options Bootcamp 65: Revisiting Delta, Butterfly Breakdown and Your Questions
Basic Training: Delta Revisited A basic overview of Delta What is it? How does it impact your trading? Inspired by a Market Trader Mentoring newsletter article Delta Can Still be Your Friend Mail Call/Options Options Question of the week With $TSLA threatening $315 how are you leaning in your Options trades this month? Would you rather: 18% - Buy 1-month $300 put 25% - Buy 1-month $330 call 25% - Sell 1-month $300 put 32% - Staying far away from it Listener Questions and Comments: Question from Joshua Shealy: Thanks so much for all that you guys do! Sorry if this is a novice question. I know that Delta is not literally the % chance of expiring in the money, but more so the rate of change for a $1 movement in the underlying. I noticed today looking at VIX Calls that the strike closest to .5 Delta is the 20 strike, a long way from ATM. I usually associate near .50 Delta with being near ATM. Is this just a nuance of VIX, or am I missing something bigger? Qustion from Brian Fortin: Options Boot Camp Dan is fond of saying, why trade options naked when you can spread off the risk and make the same money by doing it twice? I feel the same way about carrying a short position into expiration? Why try to carry 6 short contracts into expiration to capture that last 5 cents, when you can just trade 7 contracts and do the right thing? Question from Gameday Dog: Aww man My vertical put spread has gone bad. I have +3 options at 61.5 and sold -3 at 62.5. Yesterday it gapped down to 50. I now have +200 shares of LULU in my account plus 3 put options at 61.5 and -1 put option at 62.5. I thought it was a $300 max risk spread. Do I have to do anything? Do I sell the shares? Everything expires in 7 days. Please help. Thanks. So, I learned about selling shares and back ratio spreads and even got an $19 credit. Question from Elio: Confused. How did that guy end up with only two of his short puts getting assigned to him? If he was short 3 shouldn’t all of them have been assigned? Question from JDog: I just got an options pitch that says that options buyers lose money seven out of 10 trades. Is that true? Question from Allen: Why would I trade options when 90% expire worthless? Q