On this episode, Mark and Dan discuss:
- 5 most terrifying trades from last year
- Which options strategy terrifies our listeners the most
- What options strategy they don’t like or never use
- Time spreads
- A live episode of Options Boot Camp
- And much more
Brought to you by Public.com
TRANSCRIPT
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Fall in boot.
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All right, everybody.
Welcome to Education Wednesday.
It is time once again to commence operations on our newest doubleheader on the network, OBC, followed almost immediately by the newest edition, The Futures Rundown.
So wherever you’re getting this fine program, make sure you’re listening to the full network.
It’s just a click away.
And then you can get The Futures Rundown, everything else we do here on the network, on the on-demand side as well.
My name, of course, Marc Longo from theTheTHE, optionsinsider.com, as well as from, of course, the aforementioned network.
Remember, if you want to go above and beyond, the on-demand side just isn’t enough for you.
You want to get a couple of extra exclusive shows.
The pro is the way to go.
The optionsinsider.com/pro.
Get your oddities.
Get you pro Q&A’s.
Had some fun ones last couple of weeks.
As you might imagine, people have some questions this time of year and this time of every four years in the market in particular.
So get over there on the pro and check out what we’ve got cooking for you as we go out to see what you folks actually have cooking for us.
Always like it when you folks take the time to rate and review the show.
It’s like this week’s five star review comes from Emilio.
It must be a paison.
He says, Emilio Grazie.
Well, right back at you.
Prego.
Out there.
But yes, thank you for everyone takes the time to rate and review us out there.
Speaking of paisons, I am joined by my bootcamp and paison, the black-hatted one himself, Mr.
Dan Pasarelli beaming into us not from the options Mecca known as Frankfurt, but from a little a little town you may have heard of called Las Vegas.
I believe it’s called.
Is that how you pronounce it, Mr.
P?
Yeah.
Hey, one journal mark.
How are you today?
I’m doing well.
Sounds like we got paisons on the audience.
Bunch of paisons on the show.
I’m feeling good, sir.
All right.
It’s like Italian American Heritage Day right on the show.
But you know what it actually is, Dan.
It’s time for another holiday.
Are you ready to, dare I say it, sir, get spooky?
Are you down for a little bit of Halloween spooktacular, sir?
I’m always down for that, man.
Let’s do it.
All right, then.
Let’s do it.
Oh, there we go.
How’s that, Dan?
Feeling a little bit of a spookage in your blood.
Is it a little bit too scary for you?
I thought you were going to have Vincent Price through the– Oh, the thriller?
I’m trying to do non-copyright.
We’ve got enough copyright people coming.
We don’t need the dudes saying we flagged that show.
So unfortunately, Vincent Price copyrighted.
But the epic Halloween spooktacular known as “Tilkata and Fugue in D Minor” by Bach is not so.
Wow.
And also, pretty darned, bone-chilling.
I mean, I could do the Halloween theme as well, but that’s also copyrighted.
This one kind of gives you a little bit of spookage.
You know, I could see you, Dan, in a lone castle just pounding away on the keys.
You know, what do you think?
As long as I’m playing public domain songs, yes.
Public domain spooktacular.
All right.
Just kind of set in the mood.
I thought our usual mail call transition didn’t suffice for the moment, sir, because we got to get a little spooky.
We got to get a little bit scary.
Welcome, of course.
We’re going to do the day before Halloween as we are recording this, listeners.
But you might be listening to it many months, years down the road.
So hopefully, wherever you are, we’ll give you a little bit of taste of the old spookage out there as well.
Let’s start really quickly by looking back, Dan.
Do you remember to the halcyon days of exactly a year ago when you and I were having all sorts of Halloween fun and we had a Halloween spooktacular poll for the scariest sounding option strategy.
Do you recall that, sir?
Yeah, I do vaguely.
Yes.
Do you remember what won our scariest sounding option strategy last year as chosen by the people?
Was it, man, I mean, I don’t remember, but I’m just trying to, like, you know, guess again.
I’ll tell you what, I’ll give you the three choices we gave them.
You can choose amongst them.
Iron condor, iron butterfly or strangle.
It’s got to be strangle.
Yes.
Strangle ran away with it.
Fifty nine point one percent.
Twenty seven point three percent for iron condor.
Nine point one percent for iron butterfly and four and a half percent for other.
We had some some silly others last year.
Then Dan, as you probably don’t recall, because again, all the day drinking I mentioned earlier, you also did your own top five most terrifying options trades of all time.
Or maybe you can also say strategies of all time.
Do you recall that list, sir?
You know, I have a very, very bad short term memory mark and long term memory for that matter.
All that brain trauma coming back to haunt you, sir.
I’ll give you number five on your list last year.
Was any trade you don’t understand?
That was that sounds like a Dan choice to me.
Yes, that sounds like a Dan list.
And number four, you said the quote easy one.
So any trade that people think are too easy.
What did you mean by that, sir?
You know, just when it when it looks when anything in life looks too good to be true, it probably is.
And you know, you always hear some bozo on YouTube or whatever being like, oh, you know, it’s the easiest thing in the world.
And it’s seldom is trading does take a little bit of work.
That it does.
Then your number three was naked short calls.
I think we can all get behind that one.
That’s an intimidating, I think, strategy, especially if you’re doing it and let’s say a meme stock, Dan GameStop right when roaring kitty is doing something crazy or perhaps you’re doing it in Vicks when things are popping off in the market.
Those can be times when maybe maybe you’re going to have to grab your britches if you’re going to sell those those naked short calls.
It can work out, but you’re probably going to pop some thumbs along the way.
What do you say?
Yeah, man.
I have I have done all of those things in the past.
Naked short calls in meme stocks in Vicks and popped a lot of tongues, moved on to Nexium since then.
Just one pill a day.
Yeah, they can work out in some of those situations, but you’re going to wear it for a while and you’re going to feel it.
Certainly going to feel it for a while at the end of the day.
All right.
Number two on your list, sir, was ratio spreads.
I’m assuming you meant by that net short unit ratio spread.
So buying one selling two selling three, that sort of thing.
Yeah, those are the ones.
And if I’m not mistaken, I think you’re a fan of those selectively anyway.
And you know, hey, I always say every option strategy has its place.
But those little suckers can sneak up on you every now and then.
They seem really benign until they’re not.
Yeah, it looks great.
You know, you buy an option for a dollar, you sell four options against it for 30 cents.
Hey, you collected a 20 cent credit.
I’m a genius.
And then that explodes, you know, 30 percent to the upside and you’re done.
So yes, they can be spooky as well.
Number one.
Now, this is interesting, especially in light of what you’ve been talking about lately on the show, Dan.
Number one for you was straddles last year.
Mean yourself, sir, because you’ve been talking up straddles with the last month.
Yeah.
Well, you know, there’s like when it comes to horror movies, there’s like the slasher ones where it’s just like the the guy with the mask jumps out from the shadows and slashes with a knife.
You know, like those are the quick, quick ones, the slasher ones.
But then there’s like the slow burn horror movies, the psychological, psychologically disturbing ones.
And those are those are kind of the straddles.
They’re just they they’re they’re really, really tough.
I’ve I’ve actually been trading a lot more of them this past year.
They’ve just been a little market’s been a little more conducive towards them.
But man, you know, you read a textbook on different options strategies and they sure make straddle sound easy.
But you know, we just always have to remind ourselves we’re likely to have more losers than winners with straddles.
And that’s OK.
That doesn’t make it a bad strategy.
But it does mean you have to psychologically prepare yourself for that.
Yeah, it’s going to be a challenging, challenging bit of business out there, listeners.
So listeners, that was your what you thought was the scariest sounding strategies and what Dan thought were the scariest and most terrifying options trades of all time.
We thought we’d turn the tables back to you folks again this year for a little bit.
What fun is a spooktacular, Dan?
If the folks aren’t getting involved, right?
So let’s get out there to the to the folks again.
You guys always you folks can play along.
We actually have two spooktacular polls up there right now and a question of the week.
So it’s a hot week out there, one for the show, one for, of course, the upcoming futures run down.
And then our actual question of the week, which is more poised around vol in the election.
But Dan, we thought this year in the spirit of the season, we’d go for which option strategy last year.
We asked you which one sounds the scariest this year.
Dan, we’re going for which one actually is the scariest for you?
Which one are you most intimidated to put on?
You just don’t like when you put it on.
Maybe you’re really sweating or you just avoid it because it’s too intimidating.
We had three choices, Dan.
And there’s an infinite number.
This is the case where I really wish Twitter could give you a forty seven choice poll.
So we narrowed it down to three and the infamous other Dan.
We gave him a naked short straddle.
So I think you’re going to see a theme with this one.
Listeners, naked is going to be a recurring theme.
Then we have naked short call.
So again, that kind of harkens back to actually Dan’s list from last year as well.
He had naked short calls as well.
And then naked short puts, those are the three kind of straightforward strategies.
And then we put the infamous other for what really scares you, what strategy scares you.
And you we we have some interesting choices already, Dan.
It just went live right before Showtime, Mr.
P.
But naked short straddles, naked short calls, naked short puts.
Which of those do you think is the scariest?
B, which way do you think our audience is going?
Or C, maybe you have another you want to share with us.
You know, I mean, for me, I would say naked short straddles.
And I’ll tell you what, besides, I mean, since leaving the trading floor, I don’t recall trading one of those ever as a retail trader.
I have had a student or two, a student trader or two who would trade naked short straddles.
And fortunately, it was they happened to be some of the smart ones.
So they, you know, they managed their risk and they knew what they were getting into.
But I don’t know, man, for me.
For me, I I just don’t like the fact that you have basically unlimited loss to either side.
It’s just it’s not my it’s not my bag, man.
Yeah.
Infinite risk in either direction is not exactly you’re right.
Not my bag either to to borrow Dan’s turn of phrase out there, which is one of the reasons why we included it at the top of the list.
I’m with you, Dan.
I don’t think I’ve ever personally traded a naked short straddle.
Not that I can think of.
If I have done it, it’s always been as part of something else, right?
A short, you know, iron fly, something like that.
I’m always covering the wings.
I can’t think of any scenario where I’m just straight blasting away at the money strap.
It just doesn’t happen.
So probably one of the reasons why it it makes it on our list.
You think our audience is choosing that too, Dan?
I would say, yeah, I would definitely say yes, because if they’ve been listening to our show, I mean, you know, we’re both pretty pretty adamant about that.
So yes, I don’t know.
I don’t have access to the poll data.
I don’t think that’s why I don’t give it to you.
I want you to guess.
I want you to put your thinking cap on, even though you can’t cheat head on over to our Twitter and see all of it.
But right now, Dan, in the lead in the early voting, we have naked short puts taking it with 35 percent, followed by 30 percent for naked short calls.
I could see that.
Shraddles actually coming in third, 25 percent naked short straddle.
So wow, no fear out there for naked short shadows.
And now, Dan, they’re much more intimidated by short puts, which to me are.
I mean, I know naked short puts get a bad rap.
That’s why I put them in this poll.
Everyone, you know, they sound scary.
Everyone says don’t do them.
But you know, at the end of the day, the risk is finite, at least.
At the end of the day, that always is less intimidating to me than the naked short straddle whose risk is infinite.
You know, yeah, yeah.
Yeah, I mean, I would say if I had to rank in number two.
I would probably go with naked short puts only because, you know, violent moves to the upside are not as violent as violent moves to the downside.
So I think there’s a little more risk to naked short puts than there’s to naked short calls.
But you know, both are risky for sure.
So yeah, interesting.
Get over there.
Oh, just tick Dan.
Now we’re at twenty two point seven percent for the short straddle.
Thirty one point eight percent for short calls and thirty six point four for short puts or short puts increasing.
Nine point one percent for other.
Damn, we got some fun others.
First we have one of our pro members, Age Delquaria says time spreads scare him.
Too many moving pieces.
I know you have a whole time spread series.
What do you think of that, sir?
Yeah, I think time spreads are one of those where somebody sees a YouTube video or reads a little e-book or something and it’s like, oh, yeah, I got it.
Sometimes it doesn’t go too high or too low.
I win.
But yeah, Age Delquaria is right on.
There’s a lot more going on than on the surface.
A lot more going on than what a lot of, you know, people who are charged with educating you a lot more than they let on to for sure.
And then it’s always the wise acres, Dan.
Vernon Griffin wrote in to say he’s scared of naked short people.
There we go.
We all have our little piccadillos that that I suppose terrifies.
And Dan, you know, and I’m not terrified of naked short people.
It’s the passarelli question of the week.
And now it’s the moment you’ve been waiting for.
It’s time for the market taker question of the week.
All right, everybody.
Welcome to the market taker question of the week.
This is where Mr.
P holds court with his burning MTM question, which you got for us this week, but I’m not sure.
Well, a lot of people ask me, you know, is there like a minimum stock price that you won’t trade options on that stock?
I don’t know if I’m asking that or if I’m stating that the right way, but that’s basically the gist of it.
Regardless of how I’m stating it, the answer is kind of yes, but not entirely.
Yes.
There are some trades like our earnings trades or total earnings domination trades.
If the stock is not above 20 bucks, I’m not touching it.
And generally speaking, with a lot of different option strategies, that statement rings true as well.
But every now and then, I will employ some trades on a stock that is under 20.
I guess one pretty good example is the short squeeze trades because the best short squeeze trades tend to be stocks in the single digits, even below 10.
And then you kind of realize they’re a bit of a calculated lottery ticket, not really a lottery ticket that implies a negative edge where you might pay 15 cents for the option and commissions end up making a bigger percentage of your trade that way.
But you might pay 15 cents for an option and sell it later at 40 cents and just scale.
But you might lose a nickel on three or four or five in a row too.
Generally speaking, I stay away from trading options on stocks under 20 except for in certain scenarios.
Whenever I mentioned that one to your buddy, Mr.
Overby there, his answer is always wherever Ford is trading.
That’s how low he goes, which given Ford’s latest screwball earnings, I think they’re down to 10 and a half bucks.
So his cutoff is around 10 and a half bucks.
Wherever Ford is, that’s as low as Brian Overby will go.
And that always brings a smile to my face in the options market.
But Dan, you know, we had so much fun with our silly fun from scary poll, which by the way, as we’re talking, the naked short straddle is plummeting, sir.
It’s down to about 20 percent now.
So the naked short puts up to 37 and a half percent.
So I don’t know.
Folks are scared of those puts.
I’m glad I bought puts on the naked short straddle.
Yes, yes, exactly.
We have a whole behind the scenes hedging and wagering system around our questions of the week.
It’s pretty hot.
Speaking of our actual question of the week outside of our fun, spooktacular queries, listeners, we said quite simply, we have one more full trading week before the big day.
Anything can still happen.
Surprises can still unfold, which raises the question, Dan, where will Vicks close on Friday gave you four choices, good wide ranges you can really sink your teeth into right around here where we was floating around when we posted this 18 to 21 lower.
So drop in below 18 higher, 21 to 24 or still higher north of 24.
And Dan, as we’re recording this, we’re flirting with a 20 again, 1985 out there in Vicks cash.
So we’re still kind of vacillating, almost dead smack in the middle of that range from Monday.
What is your Spidey sense telling you for where we’ll close on Friday, sir, not even next week heading into the weekend and then be where I think our audience is going.
Well, this Friday, that’s a that’s a good one, man.
I would say probably the around the top of the here range 18 to 21.
But I don’t know.
I don’t know if we bust through 21.
Well, you know what?
I’m going to change that.
I know.
I’m going to be towards the lower end of the higher range, 21 to 24.
I think there’s a reasonably good chance we make it into the 21 handle.
Yeah, I don’t think that’s unreasonable at all.
Our audience, Dan, 36.2 percent right now saying going to be in this range 18 to 21, 25.5 percent saying north of 24.
So they’re feeling some froth.
21.3 percent say higher 21 to 24 and 17 percent say going to crush it below 18.
Get over there at options and make your voice heard.
Just like you folks did last week on our questions of the week.
We said, hey, we had another election themed questions and may have heard an election is looming.
He had to buy one straddle to hold through the election.
Which one do you choose?
Gave you three choices and the infamous other.
The DJT no 31 straddle expiring next week on the eighth for at the time, 17 dollars and 80 cents.
That seemed like a ridiculously overpriced straddle.
Then the stock roared up to high.
How high did it get?
We got up to almost 50 bucks, 48 bucks since then.
So it almost moved the width of that straddle already.
So yeah, it’s been quite the run.
The actual winner was 37 percent of you chose the spy 582 straddle expiring next week for 17 dollars.
Now on the eighth, 29.6 percent shows the DJT straddle.
Twenty two point two percent went for the VIX no 19 straddle expiring the week after on the 13th member.
VIX goes out on a Wednesday listing.
So we gave you an extra week.
That was four dollars and 16 cents.
A 22.2 percent going for that.
11.1 percent going for other.
Damn.
Any surprises for you on those results, sir?
Jeez.
No, no real surprises.
It’s a tough question, though, you know, I don’t pretend to understand DJT stock.
So I just feel like I can’t really weigh in on that one.
I don’t think anyone does.
That’s the point of it, right?
It moves on the whims of things that have nothing to do with the market.
Right, right.
And I don’t remember what the heck I said last week, but chances are I think you’d be better off selling these straddles.
But I wouldn’t.
A, it’s the scariest one and B, the there’s just more potential for black swans this time around than any election in my lifetime.
Any election indeed, sir.
We had a crazy one.
DJT hanging out at a mere forty three dollars right now.
Listeners.
So just just a crazy one out here.
We also had some other fun ones, including Uncle Mike.
He mentioned we had an October surprise one.
Do you think we see an October surprise?
Seventy three point seven percent said yes.
Well, the clock is ticking.
We’ve got a day left.
Listeners.
No surprise yet unless I miss the surprise.
It was so unsurprising that I missed it.
But so far, at least I don’t think we’ve had anything.
Let’s go out to BBT and the listener line.
Dan BBT says, is there this is actually very timely what we’re just talking about.
Is there an option strat that you guys simply don’t like or don’t find yourself using ever?
Well, Dan, we were just talking about short straddles.
I’m not there.
Let’s have sold a naked short straddle.
I don’t know ever.
So that certainly qualifies.
I’m a hard press.
Think of another strategy where I’m like, I’ve never done that, at least in recent memory.
Naked short straddle certainly leaps to mind.
So that might have to be my answer, Dan.
What do you think?
Yeah.
I mean, I think that that’s a pretty good answer.
Yes.
That would definitely be at least one of my answers.
Naked short straddles for sure.
Yeah.
I mean, might be some funky thing like, you know, ratio iron condor swap or something like that.
But that’s not really that that’s a more esoteric thing.
He’s talking about more mainstream strategies.
Yeah.
When it comes to just blasting away on straddles.
Not exactly a use case.
I really have or have ever had.
So there you go.
Listen, that was an easy one.
We fit right in, Dan.
They should all be so easy.
All right.
Let’s go out to you.
Thomas.
Thomas Canton.
Oh, he says hello from the UK.
So there you go, Dan.
Next time you go abroad, got to stop in the UK.
Maybe you could see our buddy Thomas.
Oh, yeah.
It can’t all be Oktoberfest drinking binges with our listeners here.
You know, you got to you got to spread the love a little bit.
They have some good beer in the UK as well.
He says hello from the UK.
I would like to ask a question about time spreads, please.
I love our overseas listeners.
So polite.
They say, say please.
Am I correct in assuming that if the second month’s volatility is cheap and the front month’s volatility is high, then that is a good set up for a time spread because you are looking for the second month’s volatility to drop and the front months to rise.
Thus shrinking the spread.
Is that correct?
Is that the correct set up, please?
Well, another way you can see that they’re not from around these parts.
They use thus in their sentence.
That’s something we see see too often over here.
Well, great question.
But Mr.
Dan, you are out there running, you know, your your time spread series.
You spent a lot of time talking about the right setups for time spreads.
What do you have to say for our buddy Thomas from the UK?
He wants to know, is this the right set up for a straightforward time spread, sir, by the second month at the money sell the front month?
I’m assuming that’s what he means.
Yeah.
A couple of things and I just kind of wanted to clarify that, too.
If the front months or the front expirations volatility is high and the back is low, then that’s a good set up for buying a time spread.
You’d second to last sentence here because you’re looking for the second month’s volatility to drop in the front to rise after you put the trade on.
You want the opposite to happen before you put the trade on.
Yeah, you want that front volatility to have risen to be higher in the back to be lower.
But you know, to the point that Age of Delacuera has brought up earlier, they’re nuanced.
You know, I do time spreads a lot with earnings trades and with earnings trades, I mean, you always see the front expiration higher than the back expiration.
But sometimes it’s just not high enough.
So you kind of have to think that through with a regular income generating time spread, you want to look at things like not just the implied volatility differential, but the theta differential.
You want to look to see where the projected break evens are.
You know, I mean, there’s a few other things that you want to take into account, but I do like the direction you’re going and the way you’re thinking about these things, Thomas, because that’s a very important criteria when it comes to trading time spreads.
Yeah, you know, that’s a good point.
He does kind of undo it with that last second to last sentence.
He was all right up until then.
You’re right.
Once you buy it, you don’t want that month you’re buying to drop.
You want the opposite.
Yeah.
Well, everything up to that second to last sentence, Thomas, you were you were right on the money.
So yeah, I think in general, the way you’re looking at it is correct.
You want that vol you’re buying to be cheap.
You want the vol you’re selling to be overpriced and hopefully vol you buy goes up and hopefully the vol you sell goes down.
It’s pretty pretty straightforward there.
Let’s go out to this one.
Let’s handle 30 30S.
I guess he means 30s car.
He has a 30s car or 30S car, whatever that could be.
I’m going to go with 30s car.
This rolls off the tongue better. 30s car wants to know, do you guys ever take this show on the road?
Would enjoy watching a live show.
We’ll figure your car guy would ask a road question.
But you know, Dan, what we have done on the network, a lot of live shows over the years, you know, our option block show, we famously took over elephant and castle back in the day.
I’ve done vol views on the stage at FIA.
We’ve done a lot of live shows, the obvious of the SIBO.
I’ve done a bunch of other things live this show.
We haven’t really with the exception of when you have your mastermind session, then we do do it live.
But for a very select audience, Dan, it’s just for your students there.
So I guess the correct answer is yes, we have done live shows of this program, just not for the masses, Dan.
What do you have to say?
Yeah.
Yeah.
I’m wondering if elephants and castle is is like at the end of Route 66.
Doesn’t Route 66 go through downtown Chicago at a couple of points?
Maybe we should find a bar to broadcast.
Well, not easy on it or one of those ones.
Lou Mitchell’s that diner is right on the beginning of Route 66, I believe.
Oh, yeah.
Oh, yeah.
Yeah.
Yeah.
That’s right.
That’s right.
So, yeah, it’s fun doing stuff in person, but I don’t know.
I’m in if you do one.
Yeah.
You know, ever since, you know, post pandemic, it kind of went mostly virtual.
And this just seems like it’s so easy for everybody, you know.
But there is something to be said for your right.
Getting getting the gang together and having a fun live show.
So I don’t know. 30s car.
Where are you?
Where are you beaming in from 30s car?
Maybe we can bring a road show down to you.
I’d be kind of fun.
We just take it on the road.
Dan, we say we just go around.
I guess technically you and I did meet on a panel in Las Vegas so we can count that as like an early pre show.
And so we did the show in Las Vegas and you’re in Las Vegas now.
So there is a little bit of a Vegas crossover there, I suppose.
But outside of that, we haven’t done too many live.
I don’t know.
Maybe if other listeners are on board for that, you want to want a live OBC coming to a town.
How about this, Dan?
You’re in Vegas.
The sphere.
What do you say?
We got it.
Oh, that would be great.
Just send the bill to options boot camp.
Yes.
And then we’ll go to that unknown entity known as options boot camp on the on the at least the corporate side.
There is no corporate entity called options.
So send all the bills to them.
I hear that.
Yeah.
What’s it like 12 million just to rent the building out for whatever it is.
So yeah, a small entry fee, Dan.
So the tickets would have to be probably somewhere in the 50,000 apiece range.
But I think we could swing that for our audience.
We got some high rollers in our audience.
We think.
Yeah.
And you know, I mean, I think we’re worth it.
Don’t you?
That’s beyond question.
Of course we are.
It’s just a question of, you know, our folks have to get to Vegas.
There’s a lot of logistics to it.
But you know, the 50 grand, that’s the easy part for our listeners out there, Dan.
So let us know listeners, are you down for a little a little bit alive?
OBC coming to perhaps a sphere near you.
All right, Dan.
Glad you survived our spooktacular.
Hopefully it wasn’t too spooky for you.
We tried to make it manageable.
We know your your spookage threshold is pretty low.
Yeah, I mean, I made it.
I had to pop an extra Xanax today, but you know, what are you going to do?
No blood curdling screams, no sounds of chainsaws.
You know, none of the fun stuff that really gets the old heart pumping out.
I was checking in really quickly on our spooktacular poll one more time.
Yes, straddles continue to fall, sir.
There are now 20 percent naked short straddles.
The naked short puts running away with it. 36 percent, 32 percent right now for naked short calls and 12 percent for other.
Naked short puts got even higher.
They got to like 38 percent while we were talking or something.
So yeah, intriguing, sir.
Intriguing elements.
By the way, let’s give a little bit of a hint, Dan.
I will be doing the futures rundown in a few minutes and we have a spooktacular poll up there as well.
What elements of futures trading are the most intimidating to you?
They gave you four choices.
Well, three really.
And the infamous other confusing margin, accidental delivery like that one or weird and wild products or something else that spooks you.
Dan, if there’s an aspect of futures trading that spooks you, what is it?
And what do you think our audience is choosing?
Man, I remember that one time when I had 5000 bushels of corn dropped into my driveway.
It’s the worst.
In the middle of the night, they just drop it on your lawn.
They don’t even tell you.
They don’t even like ringing the bell.
You just wake up and it’s just corn for days.
It’s the worst.
I agree.
But the bird poop afterwards was even worse.
So yes, don’t take delivery on any ag.
Now the livestock, that’s the worst.
When they drop a bunch of live cattle on your lawn at 2 a.m.
That’s definitely the one.
The pigs, the lean hot, don’t even get me started on the pigs.
So yeah, the accidental delivery certainly.
Our audience right now is going for confusing margin.
Confusing margin, Dan, with 50%.
Which I can understand.
There’s initial margin.
There’s maintenance margin.
There’s overnight margin.
And it varies all the time by product.
It does.
It is.
There’s a lot of moving parts there.
There’s intraday.
Yeah, there’s a lot of different types of margin.
I can see why that would be intimidating.
If you want to hear more about that kind of fun, listen.
Let’s tune into the futures rundown in a little bit.
Dan, I believe we’ll have a guest on there that you will be familiar with, sir.
It is your futures guy extraordinaire, John.
Is it Segwin?
Am I pronouncing that correctly?
Segwin.
Segwin.
Okay, there you go.
So there you go.
Double dose of MTM on the network today, sir.
Very cool.
In the meantime, sir, if folks want a double dose of MTM in their lives, where should they go?
What should they do?
Just head on over to markettaker.com.
Two T’s in a row.
And yeah, hit us up there.
I’d love to help out any way we can.
We love our listeners.
There you go.
Don’t forget the second T for Theta.
And while you’re surfing for stuff, head on over to public.com/optionsbootcamp.
That’s the easiest way to thank them for supporting this show.
It’s been coming to you for well over a decade now since its Primordial Ooz days out in Vegas.
And that’s all you have to do is go to that URL, kick the tires and light the fires.
Maybe if you like something, tell them.
If you want to see them add something, tell them that.
Try out that rebate.
Public.com/optionsbootcamp to learn more.
That’s going to do it for us on the old OBC today.
Back in a little bit with a little bit of the old futures rundown and back again tomorrow, of course, for the option block and this week in futures options.
Friday Volviews, options oddities coming for the pro folks returning to its same bat time, same bat channel.
You want to get access to that, of course, theoptions.com/pro.
Let me kick it off on Monday.
Until next Tuesday, we have the big election night spectacular.
Dan, are you on for that?
Are you going to join us for the– see if you can win back your money.
What do you think?
Yeah.
Well, seeing as I didn’t get my money from Uncle Mike last time.
Yeah.
So I am going to join, man.
Yeah, that’s going to be great.
All right.
Dan will join the live election crew.
Should be a fun spectacular.
We’ll walk you through all the fun, all the madness that’s going on.
Maybe talk you off the ledge a bit if your candidate of choice is not doing well.
So should be a fun night.
There’s always been surprises on these shows.
So maybe we’ll have some fun giveaways, all sorts of fun.
So look forward to that.
It’s going to be open and available to all so everybody can listen.
Don’t worry.
So we’ll see you back there next Tuesday.
And then if Dan is not too hungover, we’ll see you next Wednesday.
Another episode of Options Bootcamp.
Stay safe out there.
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