Apr 30, 2013
Options Bootcamp 21: Playing
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
- 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