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The Option Alpha Podcast

Latest episodes

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May 29, 2017 • 21min

94: Which Option Strike Price Should I Select? [AAPL Call Bull Spread Backtest]

Show notes: http://optionalpha.com/show94Apple (AAPL) is by far one of the most loved and favorite stocks to trade for investors. Often times people will email me asking how they can use option buying strategies to go long AAPL stock. So, in today's show, I wanted to reveal the results from our call bull spread backtest we ran on AAPL and how changing the long strike prices impacted the overall returns and drawdowns of a bullish strategy like this. If you've ever thought of buying options, you need to hear this show.
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May 27, 2017 • 19min

93: Options Trading Timelines & Duration [EEM Straddle Backtest]

Show notes: http://optionalpha.com/show93How far out should you go when entering a new options trade? 10 days, 30 days, 60 days? Does it change based on the strategy you are using or the market situation you are in? All great questions we aim to answer and in today's newest case study we'll look at how options trading timelines and duration impacted the returns of this EEM straddle backtest. Plus, we'll cover some of the overall performance and variance metrics we ran on both strategy setups using our backtesting software that launches next week.
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May 25, 2017 • 24min

92: Position Sizing Impact On Returns [TLT Iron Condor Backtest]

Show notes: http://optionalpha.com/show92I've said it for years, position sizing matters in a high probability system. Much more so that you would believe and today's show is the first in a new mini-series we are doing leading up to the launch of our new backtesting software. Inside we'll cover a case study using and iron condor backtest we ran on TLT including the impact on returns that altering the position size had on the portfolio.
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May 19, 2017 • 37min

91: Options Backtesting, Investment Research & The Future of Option Alpha

Show notes: http://optionalpha.com/show91 In today's show, I wanted to take a step back and give everyone an overview of what we've been working on here at Option Alpha and what we have planned over the next couple months. More specifically I wanted to officially announce that our new options backtesting software will be released publicly on June 1st. And as mentioned before too many people, as soon as the new software goes live the cost of the Lifetime Membership will go up by $1,000. Options backtesting software is something that has been terribly done in our industry and we've worked really hard (and invested a ton of money) to make sure it's done right. After many months of development, I'm proud to say that we've made it not only powerful but simplistic and intuitive enough that anyone can use it. More importantly, it allows you to stress test option strategies before putting real capital at risk. I'll dive more into the details and everything it includes a little more during today's show. Plus, I'll hint at some new research reports we've already been working on that will be released in the next couple months.
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Apr 24, 2017 • 48min

90: The Art & Options Strategy Behind Quick "Earnings Trades"

Show notes: http://optionalpha.com/show90 We're now in the heart of earnings season for the current quarter and with hundreds of companies set to announce their performance, we're presented as options traders with tons of opportunities to profit from the volatility crush that occurs after an announcement. But these fast (and often violent) moves in the underlying stock in the session following the announcement can often scare and confuse investors trading options. In today's show, I want to walk through my strategy for filtering and finding good stocks to trades, strategies we like to use and how to set them up, as well as my thoughts on exiting trades shortly after the market open. If you've ever wanted to jump in and make some earnings trades, you'll want to tune in and take lots of notes. Don't forget, we've also got a free course and PDF guide to earnings trades available for members inside our education platform.
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Apr 17, 2017 • 22min

89: Are Your Current Technical Analysis Indicators Slowly Destroying Your Portfolio?

Show notes: http://optionalpha.com/show89It's been over a year since we released our game-changing report on technical analysis indicators called SIGNALS, and since then I haven't talked more about how we are using technical analysis in conjunction with our options trading. So, I wanted to revisit this topic on the podcast today because I still see a lot of simple, easy to correct, mistakes being made by both new and experienced traders when it comes to ready signals generated from technical analysis.
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Apr 10, 2017 • 16min

88: Is High Probability Option Trading The Holy Grail Of Investing?

Show notes: http://optionalpha.com/show88Newbie traders and investors who make the transition over from stocks to options often become overly confident and excited that magically they've discovered the "Holy Grail Of Investing" in a high probability option trading system. Surely no system or investing methodology is perfect and options trading has its own challenges. The goal for me today in this new show is to present both the benefits and drawbacks of a high probability investing system like the one we teach (and execute personally) here at Option Alpha.
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Mar 20, 2017 • 14min

87: The 3 Option Adjustment Principles You Must Know Now

Show notes: http://optionalpha.com/show87Losing trades are part of the game - they are going to happen and it’s a reality we must all face. And I believe what sets really great traders apart from those who are average at best is the ability to cut a loss by making smart adjustments. Adjustments that reduce risk and extend the trading timeline. In today’s show, I’ll cover the 3 option adjustment principles you should follow if you’re considering adjusting a short premium, option selling strategy like an iron condor, iron butterfly, strangle, straddle, etc. These guidelines will help make sure you’re always focusing on the most important aspect of trades adjustments which isn’t to make money, it’s to cut the size and magnitude of the loss down as much as possible.
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Mar 13, 2017 • 19min

86: Changing Options Strategies When Trading Inverse ETFs

Show notes: http://optionalpha.com/show86Trading inverse ETFs and leveraged ETFs are becoming more and more popular with retail traders. Maybe it’s the appeal of quick profits with 2X and 3X leveraged securities like FAZ (Ultra Bear 3X Financials) but the should we adjust our options strategy for these unique products? I think we should for good reason.In today’s newest podcast I’ll cover the three different ways you should adjust your options strategy when trading these products to take advantage of their mostly negative pricing structure and hedging potential. While we don’t trade these often by any stretch here as part of our income strategy, there are instances where they become useful and we’ll cover that specific setups in the show. Enjoy!
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Mar 11, 2017 • 18min

85: Legging Into Spread Trades And Out Of Trades - Is It Ever Worth It?

Show notes: http://optionalpha.com/show85Legging into spread trades and complex option strategies is a popular way for traders to get quicker fills. However, is this legging technique really the best approach or should we be doing things a little different when entering or exiting trades? In today’s show I’ll discuss my thoughts on approaching legging into and out of spreads and the benefits and risks of doing it or not as part of your trading system.

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