Greeks In Motion

In this video, we talk about singular option strategies, double option strategies and even multi-legged complex option strategies.  In the end, all the option Greeks will be compiled to leave you with one simple set of Greeks, no matter how complex the trade.  An experienced option trader should be able to look at that set of Greeks without seeing the trade and determine exactly how the position will move and be affected by time and volatility.

Volatility Skew

This is an advanced options class on volatility skew. FIrst, we explore historical and implied volatility in the markets. How options are priced and some examples through SPY, AAPL, TSLA & SPCE. The volatility skew is an option pricing component where OTM puts trade expensively due to a strong appetite for protective put positions. OTM calls trade inexpensively due to a strong appetite for selling calls for income against stock (covered calls). Understanding why this happens and how to avoid falling victim to the extra risks involved in certain strategies can save you money!

Gamma Scalping

This is an advanced options class on Gamma Scalping. First, we make sure that there is a solid understanding of option greeks. With a special focus on delta and gamma. Then we dive into a long volatility strategy called a long strangle. We show how gamma scalping (stock trading) against the spread can reduce risk and increase reward. Importantly, by adding only when the strikes are “in the money” we are not adding risk to the trade! This is packed with information important to option traders

Theta Switch

Understanding how theta impacts your option trade is critical to long-term success. Many erroneously believe that all credit spreads are theta +. and all debit spreads are theta -, this is simply not true. And most importantly when a trade switches from theta positive to theta negative or vice versa. This option lab gives a Step by step analysis of the markets and live trade example from a professional trader. Walk through of an options trade (credit spreads and condors) along with options risk graph and potential trade ideas. Using the ThinkorSwim (TOS) and Interactive Brokers TWS trading platforms the professional trader walks through a step by step analysis of trades, risk graphs and the theta switch concepts.

Short Vega Trades

In this advanced option video, we go over the risks and rewards of short vega trades.  Short vega trades are very slow, steady and profitable trades which many traders like….Until they aren’t.  Short vega trades profit from the decay of time which happens with every option.  However, the best is that time decay will decrease faster than implied volatility rises which isn’t always the case.  Implied volatility can spike to almost unlimited levels while theta decay is slow and constant.  We discuss in detail the risks of short vega trades