The Option Alpha Podcast cover image

The Option Alpha Podcast

104: How To Use Pairs Trading With Options To Create Smooth Portfolio Growth

Sep 15, 2017
30:43

Show notes: http://optionalpha.com/show104

On today's newest podcast I want to turn the conversation a bit and focus on pairs trading with options. And this isn't the traditional pairs trading that you might have heard about before where you short one stock and buy another related stock to profit from any trending differences or divergences in the underlying price. Instead, I want to talk about how you can use some very basic portfolio and stock beta concepts to make smarter, more efficient decisions about which securities you use for options trading. Moreover, I want to give you the knowledge to feel comfortable taking directional trades so long as you know how to create "paired trades" that still give you an overall neutral stance relative to some benchmark index. This show is a little more advanced but I think you'll find it helpful.

Remember Everything You Learn from Podcasts

Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
App store bannerPlay store banner