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The Options Insider Radio Network

The Options Insider Radio Network is the premier audio destination for options traders. Our network feed provides access to a vast array of popular programs including The Option Block, Options Boot Camp, The Advisors Option, This Week in Futures Options, Volatility Views, Options Insider Radio and much more. Join the thousands around the globe who turn to The Options Insider Radio Network for options information, analysis and education.

Apr 30, 2013

Options Bootcamp 21: Playing Defense

Basic Training: Playing defense with options: it’s very important right now!

  • Basic Defense: Protective Puts (full overview in Ep. 3)
  • How do you hedge your position with protective puts?
  • Intermediate Defense: Put Spreads and Ratio Put Spreads.
  • Covered Calls - (full overview in Ep. 4) How do you generate income with a modest hedging impact?
  • The Power of the Collar: combining the put and the call into a beast of an option. This is the favorite defensive strategy of most financial advisors who use options.
  • The pros/cons of repeatedly doing zero cost collars.
  • Volatility Defense: VIX Options/Futures. The myth of VIX's perfect inverse correlation- there are problems with relying on volatility as your only hedge, i.e. black swans, days when VIX outperforms, etc.
  • The pros/cons of direct defense vs. indirect defense.

Mail Call: Hey recruits, what do you want to know?

  • Question from Tina K. - When (if) should I consider volatility products as a hedge?
  • Question from Mr_Zen - Can you explain the difference between iron condors and iron butterflies?
  • Question from Alan O - What do the drill instructors think of the Minis so far? Are they worth exploring for basic options traders?