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The Options Insider Radio Network


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Nov 26, 2013

Option Bootcamp 35: Lessons from the Trading Floor

Basic Training: Lessons from the Trading Floor

  • Paper flow rules all - Go with the flow! Being obstinate and refusing to adjust to changing market conditions will only cost you money.
  • Don't step in front of the train!
  • When in doubt, palms out!!
  • There is such a thing as an upside crash.
  • Calls are puts and puts are calls.

Mail Call:  Schooling traders, one question at a time.

  • Question from George: Why were puts so expensive when TWTR options launched?
  • Question from Niles F., Montgomery, AL -  I saw an article recently touting a "synthetic covered call strategy" that essentially involved buying an ITM call and selling an OTM call against it. It was really just a vertical call spread. What am I missing? How is this a synthetic covered call?
  • Question from Mr. Gif - Great show on volatility skew. What do you guys think of this piece? Should I, as an investor, avoid these volatility ETFs?
  • Question from Buckeye - A question from John - Can I buy a stock on margin then write covered calls against it? Or does a broker like SogoTrade remove the 50% margin and make you pay the full price for the stock when you sell the calls?