Preview Mode Links will not work in preview mode

The Advisors Option


Simple diversification is no longer enough to shield the assets under your management. Registered investment advisors, financial planners and asset managers need a new weapon in their war on risk. Welcome to The Advisors Option  - the only program designed to arm busy advisors with the information necessary to properly manage risk in this volatile environment. From options education, trading strategies and tips to options industry news and interviews with leading advisors, you will find it all on The Advisors Option.

Sep 26, 2018

Options 101: The Wheel Trade revisited

  • Why: Get paid to enter the orders that you're already entering in the stock market.
  • How: Substitute cash secured puts for your limit stock buy orders and covered calls for your stock sell orders.
  • Benefit: Increase income revenue from your existing trade.

The Buzz: What's the word?

  • The Collapse of Lehman Brothers: A decade later. Takeaways, lessons and memories.
  • OCC cleared contract volume up 10% in August. Overall exchange-listed options volume reached 426,237,903 contracts in August, up 12 percent from August 2017.
  • FIA releases half-year report on futures and options volume. The total number of futures and options traded worldwide in the first half of the year reached 14.9 billion contracts, up 19.7% compared to the first half of 2017. Open interest, which measures the number of outstanding contracts, was 850.7 million contracts at the end of June, roughly unchanged from a year ago.

Office Hours: Listeners weigh in

Options question of the week: Some people look to analysts for their market outlook. We prefer to analyze actual #options positions. This week we're letting you join the fun. What do you think is the largest #options position in $SPY right now? No cheating! What does your gut tell you?

  • SPY Mar 255.0 P
  • SPY Oct 272.0 P
  • SPY Dec 31st 320.0 C
  • SPY Sep 300.0 C

Listener questions and comments:

  • Question from LaRocha - My client fund are primarily in SMAs in the 20k-50k range. What is the best option strategy for these types of accounts? The time horizon for most of these accounts is at least 20 years with a long equity bias and fairly high risk tolerance. Thanks again. Just discovered the show and I'm learning a lot.
  • Question from Liznder - If you had to start over with learning about and trading options what would you do differently?