Options Bootcamp 21: Playing Defense

30/04/2013 1h 0min
Options Bootcamp 21: Playing Defense

Listen "Options Bootcamp 21: Playing Defense"

Episode Synopsis


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?

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