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Advisors Option 73: Using Options to Trade Stock


Using Options to Trade Stock

Listen to Advisors Option 73: Using Options to Trade Stock Options 101: Replicating Equity Exposure using Options The Buzz: What do informed financial advisors need to know?
  • FINRA Proposes Higher Position Limits for ETF Options Contracts
  • Nine ETF index options contracts have been selected for a doubling of position limits if SEC approves FINRA's proposal.
Office Hours: Listener questions and comments
  • Question from Charles Vera - Greetings AO crew (Mark, Chris, Matt, Eric and new entrant John). Love the show and have been listening for over a year and have caught up on most of the back catalog. I have two questions - one options related and one somewhat off topic but I just wanted to pick your brains. 1.) How much capital should I plan to set aside when selling puts for my clients? I'm looking at selling 5-10% OTM spy puts on a monthly or tri-monthly basis? But it seems like the margin requirements for this strategy are all over the place. Do they just vary by broker or is there some rule of thumb I should consider when tying up capital to sell puts? 2.) Do you think the recent market volatility will cause the Fed to reconsider its roadmap for raising rates in the near future? There aren't too many other developed economies that are putting the brakes on like the U.S. right now. Thanks again. Really appreciate all that you guys do.
  • Question from Steve Giannakopoulos - Seems right that you can write 1 put option when you already own 100 shares of the underlying stock. Brokerage can lock and keep the 100 shares as collateral instead of holding cash as collateral. It doesn't happen though. Why? You could have your long 100 shares forced sell at the put option strike price if it's ITM and you get assigned. I read what you said, I just don't understand it. Thank you though.
  • Question from SX78 - Now Trump is weighing in on this earnings call thing. Does this suddenly have legs? What will this mean for volatility going forward?
  • Question from Liznder - If you had to start over with learning about and trading options what would you do differently?

About Mark S. Longo


Mark S. Longo is the founder of The Options Insider Inc. - a firm dedicated to providing free options information, education, news and analysis for options users. Whether it's on TheOptionsInsider.com, a leading online options destination; through Options Insider Radio, the world's only radio network for options users; or through a growing number of newsletters and live events, Mr. Longo continues to provide new ways to spread the word about options.Mr. Longo's analysis of the options market has appeared in a wide variety of domestic and international publications, including The Wall Street Journal, Financial Times, Reuters, Futures Magazine, and more. As one of the few industry commentators with practical options experience, he has developed a substantial following among industry veterans and newcomers looking for insight into this complex market. Mr. Longo began his career as an options trader on the floor of the Chicago Board Options Exchange.

Author's web site: http://theoptionsinsider.com


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The Options Insider Radio Network

The Options News Rundown

Your source for the most important news and information from the world of options.

The Options News Rundown

The Options Insider Radio Network

All of our radio programs in one convenient place.

The Options Insider Radio Network

Options Insider Radio

The original options podcast. Features interviews with leading options figures.

Options Insider Radio

The Option Block

This high-octane program features education, analysis, strategies and unusual activity.

The Option Block

Volatility Views

The premier radio program for volatility traders.

Volatility Views

The Long And Short Of Futures Options

Your source for futures options information.

The Long And Short Of Futures Options

The Advisor's Option

Arming advisors with the info necessary to manage risk.

The Advisor's Option

Options Boot Camp

Get into peak options trading shape.

Options Boot Camp

Options Insider Special Events

Compelling panel & special event recordings from the options world.

Options Insider Special Events

OIC's Wide World of Options

A dynamic mix of current events, investor resources, & strategy insights.

OIC's Wide World of Options

Trading Tech Talk

We break down all the amazing technology that takes your trades from the click of a mouse to the clearinghouse.

Trading Tech Talk

Options Playbook Radio

Break down cutting-edge options strategies and learn how to incorporate them into your portfolio

Options Playbook Radio

Options Oddities

We track all the unusual options trading activity on Options Oddities.

Options Oddities

This Week in Futures Options

The program designed to help active futures options traders stay on top of this ever-changing marketplace. 

This Week in Futures Options

The Business Show

If you like business, if you like humor, if you like stock symbols, this is the podcast for you.

The Business Show

Options News Rundown: Monday, December 10, 2018

Options news you can use for Monday, December 10, 2018

Options News Rundown: Monday, December 10, 2018