72 Comments

• 1. Fred  |  July 17th, 2007 at 8:57 pm

  Why don’t you simply look for a turning point and buy an option outright? then sell whenever you need to?

• 2. Fred  |  July 17th, 2007 at 8:59 pm

  Is there any safe way to sell Imply volatility just before earning date? because the IV looks will drop sharply for sure after earning.

• 3. Vincent Chiba  |  July 17th, 2007 at 9:01 pm

  Is the Mastery Series totally complete from A-Z as I don’t know much about trading options?

• 4. Garry McLain  |  July 17th, 2007 at 9:03 pm

  I am reading these comments that people are making a years salary in one trade, could you show me an example of this technique.

• 5. Richard Allen  |  July 17th, 2007 at 9:04 pm

  I have a basic understanding of options and would love to have the Mastery Series to advance this.

• 6. Charles Woodrow  |  July 17th, 2007 at 9:05 pm

  I have the basic concept of options, but realize that the combination of option strategies are virtually limited by one’s imagination. I can’t afford the crse, although I am sure it is well worth the invetment. I liked the live webinar, and would love to be able to win the course. Kudos…. a job well done~
  Please consider my entry for your free course. Thank you, Kind regards, Charles Woodrow.
  PS: I don’t have my URL. I use AT&T.

• 7. Robert  |  July 17th, 2007 at 9:12 pm

  If I’m putting on an Iron Condor (GOOG Aug 600/610/510/500) on the TOS platform and have a 63% chance of expiring OTM and collecting the premium of $320 with a 37% chance of a maximum loss of $680. My expectation is (63% * 320) / (37% * 680) = .80 or about 80%. I would exped this to be 1.0 or a fair and equal chance of breaking even. What am I missing?

• 8. Wayne  |  July 17th, 2007 at 9:21 pm

  Fred | July 17th, 2007 at 8:57 pm
  Why don’t you simply look for a turning point and buy an option outright? then sell whenever you need to?

  Hi Fred, you can do that. Many do. If the options selection is made properly and the volatility environment is friendly that is a fine approach.

• 9. Wayne  |  July 17th, 2007 at 9:23 pm

  Is there any safe way to sell Imply volatility just before earning date? because the IV looks will drop sharply for sure after earning.

  Hi Fred,

  Yes there is a relatively safe way to sell implied volatility. However you have to make some projections on how price will respond to earnings. If you evaluate the volatility time skew you may be comfortable doing it with a calendar spread or with another strategy. You could try to do it by selling options at nearly the same vols but sell the ones with more extrinsic and buy ones with less extrinsic.

• 10. Wayne  |  July 17th, 2007 at 9:26 pm

  I am reading these comments that people are making a years salary in one trade, could you show me an example of this technique.

  Well Gary,

  This market is wild these days. So many takeovers and “ramps”. If you catch a nice move like that with a 20 lot of Calls it could result in a spectacular return. How about you find us the great candidates ahead of time and we’ll help out with options selection!

• 11. Brett Fogle  |  July 17th, 2007 at 9:26 pm

  Vincent, yes. The Options Mastery Series covers options from A to Z, starting with Option Theory and the Greeks which are the true building blocks of options.

  Many options educators start with strategies, and only later talk about the Greeks, which is 100% backwards.

  We also cover the pricing models, Synthetic Positions (how to use options instead of stock, with many benefits over stock) and then get into *every* options strategy, complete with charts, examples, and diagrams drawn in real-time.

  To learn more, visit http://www.options-university.com/MasterySeries

• 12. Wayne  |  July 17th, 2007 at 9:27 pm

  I have a basic understanding of options and would love to have the Mastery Series to advance this.

  Richard, once you have options mastered it becomes intuitive and you really do not have to spend a lot of time optimizing your risk / reward profile with options. It just comes to you because options “fit together” so well much like a puzzle.

• 13. Matt Hayes  |  July 17th, 2007 at 9:37 pm

  I believe I heard bill say something about a beginners coarse coming up soon, i would like to know more about that. Also it would be nice to win this offer.

• 14. Ken  |  July 17th, 2007 at 9:41 pm

  Great Job
  I had received an email showing the course was available with a payment plan over a 6 month time period but when I went to the website I wasn’t given that option…can you please advise if that is available

  thanks

• 15. Brett Fogle  |  July 17th, 2007 at 9:52 pm

  Hi Ken,

  There is currently a 3-pay option advertised which you can find out about here: www.options-university.com/MasterySeries

  Here is a private ‘unadvertised’ link for the 6-pay option:
  https://quickpaypro.com/cydec/cart/quickbuy.php?3440_21340

  But it is for a higher total dollar amount. Either way, it’s well worth the investment.

  Hope this helps.

• 16. Marilyn Woerther  |  July 17th, 2007 at 10:07 pm

  I would be so excited to win … visited a retirement counselor and after reviewing my assets, he asked how long I want to live? I asked why? He said, “Well, if you want to live to be 90 you don’t have enough money.” He said regular investments just wouldn’t do it. I am now age 70 so really need to get busy. Your teaching is super and I am sure with your instructions, I might even make 95!

• 17. RAJ DORAI  |  July 17th, 2007 at 10:21 pm

  I am very much impressed with todays webinar. The course instructor was very very thorough on Options and conducted the entire webinar in a very simplified way.
  I am being a starter in the Options Trading arena, would like to have the Free Mastery course to better understand and propogate the good things of this course in Canada.(among my contacts and trading community at Toronto, Canada)

  Looking forward to receive the special gift.

  Dr.S.Dorairaj

• 18. Wayne  |  July 17th, 2007 at 10:31 pm

  Marilyn, whatever you do make sure that a portion of your retirement savings are invested with downside protection. That is, that you can get a guaranteed rate of return for each year or whatever that investment portfolio yields if better. Protect your downside as you can’t afford to be exposed to significant drawdowns at this stage.

• 19. Wayne  |  July 17th, 2007 at 10:31 pm

  Thanks for the kind comments Raj. Good luck!

• 20. jose bueno  |  July 17th, 2007 at 10:36 pm

  I never traded options,I think the better start will be trogh yourscourse

• 21. Brad Stachurski  |  July 17th, 2007 at 10:39 pm

  HI guys great webinar! I’m 17 and have been trading options for a 14 months now. I started with 1500 and saw very little time above that amount. Sadly, there is not much left in my account and I’m rethinking my strategies. I’m willing to try almost anything that will yield consistent profits. Any insight is greatly appreciated. Thank you!

• 22. Wayne  |  July 18th, 2007 at 6:34 am

  Thanks for the compliments. If you use them for no other reasons, options can provide leverage and protection against “outlier” events. Which are both critical when a relatively limited amount of capital is available for your investing or if you’re new and trying to learn how to be successful. It takes time and knowledge. At one point people would literally work for free as runners or clerks on the Options Floors just to obtain this type of knowledge over time. It’s much easier these days!

• 23. Ron Ianieri  |  July 18th, 2007 at 12:22 pm

  Garry McLain,

  There is no “technique” and that is the point! Unlike our competition, we do not teach some kind of single “gimic” trade which works once and a while. We teach options from soup to nuts. We teach all of the theory and all of the strategies equally and without bias. So, the testimonials you read are from different investors trading differently. Some are using simple stock replacement, some are using vertical spreads, it all depends on the investor. We teach it all so you learn it all and then are in a position to apply the right strategy to the right opportunity. No single strategy works all the time in every situation and that is why it is important to know them all and understand them all. This way you can properly apply the correct “technique” to whatever opportunity you identify. We do not just teach you how to trade options…..any idiot can do that…..we teach you to understand options. Investors and traders that understand options are the ones who make consistant profits in the market.

• 24. jordan  |  July 18th, 2007 at 10:06 pm

  Hi!
  I have a few questions on options:
  -Can you explain about pinning near expiration and how you know the stock is likely to pin?
  -I’m not sure when to roll a vertical spread or an Iron Condor. Can you give an example?
  -Do you look at probability analysis (in TOS or anywhere else) when trading directional straight call or put options?
  -How to adjust stop loss on directional call or put play once position has turned profitable?
  Thank you!

• 25. Kamal  |  July 18th, 2007 at 10:07 pm

  Options is the best way to trade safely provided one uses the correct strategies, I have gained tremendously from Options university. Since I am from India where Options is a new emerging market and liquidity in options is still lacking I would like to use strategies in Indian markets and spread the Options University’s good work to this part of the world.

• 26. chas  |  July 19th, 2007 at 1:46 am

  Say you’ve sold an OTM vertical credit spread, like a 154/157 call spread ($1 strike increments) with the underlying at 150. Now the underlying moves up to 152, and you are still bearish, or even more so. Does it make sense to roll your 154 call (now losing money) down toward the ATM strike for a credit? I understand that I would be taking on more risk, but it seems better than to just sit on the 154 call and wait for time to do its thing.

• 27. Lukasz Labuza  |  July 19th, 2007 at 6:12 am

  Hi!
  Which strategy do you suggest in clear range market condition? Long iron condor or Long iron butterflay. Maybe the better way is wait to next big mow?

• 28. Lukasz Labuza  |  July 19th, 2007 at 6:42 am

  In Bull call spread we will get maximum profit at higher strike we sold. But after opened position we have huge move over higher strike and then long call will have delta near 1 but short call will have delta 0.6 So the better way is to hold position until short call will get delta of 1 and then close both options or close short option and open short at higher strike?

• 29. Vijay  |  July 19th, 2007 at 10:41 am

  1) What is the differance between selling CALL & buying a PUT OR selling PUT & buying CALL.(apart from Right & Obligation) How it is to be used in the different market scenarios?
  2) As a general rule it is advisable to buy only ITM & sell OTM. How this can be used in our option trading stratagies.

• 30. Paul Lindbergh  |  July 19th, 2007 at 12:39 pm

  I see the many questions asked on your blog, but I don’t see how to get the answers to the questions
  How do I get to the answers? Paul Lindbergh.

• 31. Wayne  |  July 19th, 2007 at 8:20 pm

  Hi Jordan,

  Chance to PIN is not something that can easily be explained. There are a lot of variables that you would need to take into consideration. Open interest at the ATM strike would be first and foremost but there are many others. Perhaps Bill Johnson or Ron Ianieri will chime to point you to an article or material that they’ve written on the subject.

  Again, Jordan, rolling verticals and Iron Condors is not a simplistic decision. Ron & Bill cover some of this material in our online classes and additionally in some of at home study materials. Let’s get a suggestion from them on it.

  YES, we definitely look at probability analysis in TOS. It can really put things into perspective from at least that vantage point. Our technical analysis is also helpful to us as well.

  Sorry to disappoint Jordan but adjusting “stop technology” on directional plays is not a simple answer either. Again, there are too many variables involved to answer this in short form.
  A lot depends on why you entered when you did and what your projections were. How do you still feel about the trade? There are too many considerations to list here but perhaps if you could make your question more specific we may be able to help out.

• 32. Wayne  |  July 19th, 2007 at 8:24 pm

  Kamal, thanks for the kind words. I think that the work that we do here is important. Moving beyond how a basic strategy works and actually teaching the “nuts & bolts” of options theory and application is critical to making students well rounded traders that can think and adapt for themselves. The markets require those abilities at a minimum.
  We will be “touring” the EAST very shortly. Check out the news on our website.

• 33. Wayne  |  July 19th, 2007 at 8:28 pm

  Say you’ve sold an OTM vertical credit spread, like a 154/157 call spread ($1 strike increments) with the underlying at 150. Now the underlying moves up to 152, and you are still bearish, or even more so. Does it make sense to roll your 154 call (now losing money) down toward the ATM strike for a credit? I understand that I would be taking on more risk, but it seems better than to just sit on the 154 call and wait for time to do its thing.

  Hi Chas,

  Many factors to consider here. If you were to do that your risk would certainly increase. More $ exposure on your vertical. Rember, you’d be selling more delta and more extrinisc value if you were to do this. Consider those factors in your decision making. Is the tradeoff worth it? Do you still have the same directional outlook? Are you revenge trading or trading simply because your ancy? A lot has to do with the trader’s individual style is my point.

• 34. Wayne  |  July 19th, 2007 at 8:32 pm

  Hi!
  Which strategy do you suggest in clear range market condition? Long iron condor or Long iron butterflay. Maybe the better way is wait to next big mow?

  Hi Lubasz,

  Again this is another question that really depends on a trader’s style, capitaliztion and risk tolerance….

  You have to formulate a statistical volatility forecast. Anticipate future events and their effects on the stock. Perhaps this in only one strategy in a “portfolio of strategies”. For example, if Iron Condors are a key strategy for you and you already have several of those on you could possibly “unwind” one if you like the risk/reward of this new opportunity more and if not, wait for a price breakout to pounce on a vertical spread that you like in there.

• 35. Wayne  |  July 19th, 2007 at 8:37 pm

  Lubasz, regarding your Bull Spread question, there are numerous factors that you would have to take into consideration to make this decision properly. Some are based on the markets and some reside with the trader themselves. You could use a risk system to evaluate the highest profitability of the spread for you and use that in conjunction with you TA to make a decision. There’s no assurety that spread will remain in your favor to that degree. That’s what makes trading such a challenge.

• 36. Wayne  |  July 19th, 2007 at 8:42 pm

  Vijay,

  it seems as though you’re describing either synthetic short stock or synthetic long stock. Obviously they are directionally opposite. You’re directional forecast would dictate which one you would choose.

  As far as general rules, that’s very tough to say Vijay. We teach the full spectrum at Options University. It’s the full gamut of Options Theory and application. Armed with this you would know what you would prefer to do given situations that arise. There’s really no “canned” approach that works in all situations that’s why it’s so important to know the full body of material to be able to think for yourself and move beyond robotic strategy application.

• 37. Dave  |  July 20th, 2007 at 5:08 am

  Any chance you’ll cover how to trade the spread on the Bears making it back to the Super Bowl?
  :-) Take care, guys!

• 38. Win  |  July 20th, 2007 at 8:56 pm

  After listening to the Delta video, it became confusing in the discussion of Delta neutral.
  Calls are bought (10 at 70 deltas = 700)
  Stocks are sold (700 stocks sold)
  Are you referring to owning the stock and selling 700 shares of that stock
  or
  are you referring to shorting 700 shares of stock?
  How can I take advantage of Delta Neutral (make money)?
  How will I see your answer to this question?

  Thanks…Win

• 39. Ronald K Burke  |  July 20th, 2007 at 9:58 pm

  I must be missing something basic. It seems that if you buy a call in june, you get closer to expiration as you approach october and then, finally, expire in january. Your graph seems to reach exiration by going backwards from the distant january to the closer June. What am I missing?

• 40. Pravin  |  July 20th, 2007 at 10:35 pm

  What if option trading becomes very popular and everybody trades in optios only; What will happen to stocks?

• 41. Pravin  |  July 20th, 2007 at 10:39 pm

  Finally I will love to win the Mastery series because I believe that this will take my trading to great heights.
  Thanks for the lovely webinar.

• 42. Roland  |  July 21st, 2007 at 11:30 am

  Is it wise to buy OTM options for any time period?

• 43. Wolfgang Spanring-Forster  |  July 21st, 2007 at 5:44 pm

  I just listened to your online chapter “The Greeks”. I’ve heard Ron speak in web seminars before and again I must say you do a marvellous job as a teacher. I keep thinking: why’s he doing this? He could trade options all day/week/year and perhaps make more money than teaching us the ins and outs. Ron must be a born teacher.

  Anyway, when you speak about being delta neutral you say you buy 10 x 75 delta and sell 750 delta in stock. How do you sell these 750 deltas in stock? Is it assumed I own them already? Or do I sell them as a call? Then a zero delta makes no economic sense at all as I would just pay commissions for the neutral position.

  Thanks and best regards
  Wolfgang

• 44. denlev  |  July 21st, 2007 at 6:40 pm

  why would someone want to trade time or volatility?

• 45. Vijay  |  July 22nd, 2007 at 9:44 pm

  Hi after going through the Delta Position video clip, It clicked to me, how can I make my stocks FREE by hedgeing my stocks with short covered calls, playing Delta Neutral. I can make my investment absolutely FREE.

• 46. jordan  |  July 23rd, 2007 at 10:33 pm

  I just watched the Delta video and it was great!

  One question about delta neutral though. It is said that delta neutral is when position has zero delta. However, this is not always possible for an Iron Condor to have exactly zero delta. I would like to know what is the range that can be considered delta neutral, e.g. -0.1 to 0.1. Thanks

• 47. Maria  |  July 24th, 2007 at 1:34 pm

  Since I am a real rookie what is the difference between “Options 101″ and “Options Mastery”? Do I need both or the Mastery course will do me the good I am searching for?

  Thank you for your time to answer

• 48. Dick  |  July 24th, 2007 at 10:09 pm

  Is there a way to place a stop loss or stop sell order when you set up a bull call (or put) spread or a bear call (or put) spread so that your spread sells out when it expands to the target spread or closes out when the spread contracts too much?

• 49. Peter Farrell  |  July 25th, 2007 at 12:53 pm

  Here’s a question - the four pay option “with the classes” - are these the current classes? Or a past class. I read that the current classes are 12 weeks not 8, and the write up on the website says you get the CD from the “8 week class”…

  Related to that, since the classes are currently on-going (wish I was in them…) - do you wait to the end of class to get the CDs?

  Thanks.

• 50. Paul Cunningham  |  July 26th, 2007 at 2:16 pm

  Besides your Volcone software, what other Technical tools do you use for buy-sell decisions on options?

• 51. Wayne  |  July 26th, 2007 at 4:59 pm

  Hi Dave,

  Greg of OU may discuss that Bears spread with you.

• 52. Wayne  |  July 26th, 2007 at 5:02 pm

  Pravin,

  It’s a lot easier to put big money to work in equities rather than options. That’s likely to always remain that way. I think we can count on a market being made in stocks for a little while longer.

• 53. Wayne  |  July 26th, 2007 at 5:05 pm

  Roland, regarding OTM options being purchased I would say YES. Strangles can be comprised of 2 OTM options for example. If you forecast significant movement you could possibly get in at both low implied volatility levels and additionally low cash premium levels. Just 1 example there for you.

• 54. Wayne  |  July 26th, 2007 at 5:10 pm

  Wolfgang,

  Ron enjoys teaching and it is a tad less stressful than trading ALL DAY.

  Anyway, if you have no open position at all in your example you would short the shares thus you would not have to own them first. Odd lots are possible but you could also sell deep ITM calls as a stock proxy to neutralize your delta.

  You need to be familiar with Gamma trading to understand more about delta neutral trading. Delta neutral may be prudent at times especially when you anticipate dramatic volatility but aren’t sure with regards to the prevailing direction of that volatility.

• 55. Wayne  |  July 26th, 2007 at 5:12 pm

  Denlev,

  it there is opportunity for profit people will want to trade it. You can trade time and volatility and make money from it if fortune shines on you or if you excel at it over time. Options theory/trading makes that possible.

• 56. Wayne  |  July 26th, 2007 at 5:13 pm

  Vijay,

  I’d need a little more info to sign off on “free” but writing covered calls can definitely lower your basis.

• 57. Wayne  |  July 26th, 2007 at 5:15 pm

  Jordan,

  you can buy or sell odd lots to get precisely delta neutral if you’d like. It is really a subjective call based on the trader themselves and it depends on the size of the position. +300 deltas can feel neutral to one trader and unnervingly unhedged to another.

• 58. Wayne  |  July 26th, 2007 at 5:16 pm

  Hi Maria,

  the Mastery course is where you want to end up at eventually but if you’re completely new it is better off starting with our 101 course.

• 59. Wayne  |  July 26th, 2007 at 5:18 pm

  Ron,

  could you please tell us to which graph you are referring?

• 60. Wayne  |  July 26th, 2007 at 5:19 pm

  Dick,

  your broker may/should be able to help you execute both sides of a spread to close once you reach your profit target. Inquire with them directly to know for sure.

• 61. Wayne  |  July 26th, 2007 at 5:21 pm

  Paul,

  we use many technical tools to inform us with regards to our options purchases and sales. Some of those tools will soon be on our OU Members Online website. Technical and Probability analysis would play a significant part in those decisions.

• 62. Ang  |  August 2nd, 2007 at 10:59 am

  Physiology of options.
  One cannot buy a call or a put unless someone first offers them for sale. When I see the volume moving up on either a call or a put, my first concern is “why is the offer being made”? If someone shorts a stock or sells a call, to me its a bet the asset is going down. I can’t get a handle on the physiology of shorting puts, can you explaine the thinking process!

• 63. Wayne  |  August 2nd, 2007 at 11:37 am

  Ang, market makers dynamically hedge and cross hedge their options trades. More than likely they are buying something else against what they sold to you. It’s not the directional bet that you presuppose that it is in most cases for the liquidity provider. Selling a put “naked” is a bullish posture. If part of a spread etc. it could simply be a hedge. Selling a put just to sell an option is not advised. Selling puts if you’re planning on adding to a long position is a different matter entirely. Ang, start to explore options education with us.

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