The Options Insider Radio Network cover image

The Options Insider Radio Network

The Option Block 1267: Are They Overpricing Zero Day Options?

Mar 11, 2024
Guest host Mike Tosaw from St. Charles Wealth Management discusses the latest options market trends, unusual activity alerts, covered call assignments, and what's on the radar for the week ahead. They explore managing volatility, options pricing, odd block activities, and navigating options trading amid market volatility.
01:00:44

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

  • 80% of covered calls stay unassigned to avoid bid-ask spread costs.
  • Liquidity providers rarely exercise calls early except for specific scenarios.

Deep dives

Covered Call Portfolio in Expiration Week

In the covered call portfolio, around 80% of the covered calls are still not assigned going into expiration week. To optimize management, a decision was made to let nature take its course and not close out positions. Exiting would have incurred unnecessary bid-ask spread costs for the remaining few days, with no other trades planned. If the stock gets called away, the portfolio will start over next week.

Get the Snipd
podcast app

Unlock the knowledge in podcasts with the podcast player of the future.
App store bannerPlay store banner

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode

Save any
moment

Hear something you like? Tap your headphones to save it with AI-generated key takeaways

Share
& Export

Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode