December 11, 2024 • 38 mins
On this episode, Mark and Dan discuss AI options education. We look at what our AI overlords think we should be talking about.
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Episode Transcript
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(00:00):
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(01:18):
This is Options Boot Camp.
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Fall in boot.
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It's time for Options Boot Camp.
All right, everybody.
(02:49):
That music means we are back.
It is education Wednesday.
Time to roll out the red carpet for not one, but two episodes.
Yes, it's time for another OBC double header.
So strap in.
You're getting the goods today, listeners.
Of course, if you're listening live on our pro side, you're getting it all right now.
If you're listening after the fact, you'll get the second episode next week in the usual
(03:10):
bat time, usual bat channel.
So if you want to join us on the pro, get the live, get options oddities, get awesome
pro Q and A's.
We had our buddy who's been a frequent guest on this show, Mr. Matt Anderson, just diving
deep into all your questions about SKU and calendars and all kinds of fun stuff on our
pro Q and A yesterday.
If you want to join those partes, the optionsinsider.com/pro is the place to go.
(03:34):
To get in there, you also get access to our giveaways and options oddities.
All sorts of fun over there.
The optionsinsider.com/pro.
If you think you're ready to take that next step in your options trading, let's take that
next step on the show.
Let's see who's joining us on the old program.
I am pleased to welcome on the black-hatted one himself, Mr. Dan Pasarelli from Market
(03:57):
Taker mentoring with the cool kids called mmm to mmm.
Mr. P, how go things in the land of Frankfurt, sir?
Hey, Marky Mark.
How are you, my friend?
Doing A-OK here.
It's a little chilly as you know, you're closer to the lake.
You get that lake effect wind chill factor that, you know, the Chicagoans might not know
(04:17):
about, but it sucks.
But hey, other than that, it's going great.
Let's see if it's going great with the show.
We got an interesting one, Dan, in store for us today.
I am very intrigued.
Let's get to it.
It is time for some options drills.
All in much time for our favorite past time option drills.
(04:40):
We're going to take the strategies learned during the show and teach you how they can
be employed to achieve a specific objective.
Do you hear me?
Yes, sir.
All right, everybody.
Welcome to the options drills.
Going to do something a little bit different.
Well, actually a lot different.
(05:00):
Quite simply, Dan, it's not often we could say we have a topic that we've never touched
on in the well over a decade, well over 200 plus episodes, well over a decade in terms
of years.
It's something we couldn't even do technologically just a couple of years ago, Dan.
But it was an intriguing one.
You know, we were messing around as people like to do because we all know we are in the
(05:21):
age of A.I.
Right now, Dan, so we need to welcome our robot overlords here on the program.
So you thought what better way to pave the path for them than to check in with the various
platforms and say, you know, we've been doing this show for a long time.
We've touched on a bunch of these different topics.
But what do you are new A.I.
(05:42):
overlords, the robot masters of the future?
What do you think would make for a compelling episode of options boot camp?
And Dan, you know, we tried a couple of different ways.
First we went to Gemini, the Google A.I. and we thought, hey, a lot of our shows, all the
write ups are in Google Doc should be pretty easy.
Feed that to the Gemini and say, here's what we've done in the past.
(06:05):
What do you think would make a good episode following this format?
And Dan, the Google A.I. that they've spent, I don't know, hundreds of millions, billions
of dollars on couldn't even handle a Google Doc.
It choked and exploded on it.
I was like, wait, you're the same.
So that that Google forget about Gemini.
It's ended up on chat GPT, which is, of course, the big one.
(06:27):
And we fed it some criteria, not much, actually.
We didn't really feed it that much.
And guess what, Dan, it ended up spitting back out not one, not two, but fully 18 different
show topics, in fact, titles complete with sub topics and discussion categories within
(06:49):
each one.
And I have to say they weren't terrible.
I was more than a little surprised.
Not all of them are home runs, but I thought, you know, what better thing to do than take
all 18 and throw them out there on the show to see what our listeners think and what you
think about how I did, what kind of job I did.
(07:09):
And also maybe there's some grist for the middle for future episodes here.
So what do you think, Dan, are you ready to go on an A.I. options based journey with me?
Hey, man, if you can't beat them, join them.
Yes, we welcome our robot overlords here on options.
All right, Dan, number one, I don't think these are in order.
These are just the order that came out of the old robot device.
(07:30):
I don't think this is the number one topic, but interesting.
Number one, Dan, for our what our robot overlords think we should be talking about in terms
of options education.
What are the top of mind cutting edge topics in the world of options education?
Number one, Dan, volatility and its impact on options pricing.
And in terms of their discussion points, A.I. suggests discuss how volatility affects options
(07:54):
pricing, including the concepts of implied volatility and historical volatility.
Number two, dive into how events like earnings reports, economic data releases or geopolitical
factors impact volatility.
Number three, introduce the VIX index as a measure of market volatility and explore how
it influences options strategies.
(08:15):
So overall, Dan, I was kind of surprised.
That was a little bit more nuanced than I expected from a from a chat bot.
But that's what we got.
What do you think for episode one suggestion, Dan, and as well as the the discussion points
suggested, sir?
Yeah, man.
I mean, that's not too bad.
(08:36):
Is there like, you know, a voice thing on there?
Do we just have the robot do the show for us?
We'll sit back and drink some margaritas.
Welcome to options boot camp.
I am Mark Longo.
I will now host the show.
Actually, I'm probably one of the most easily A.I. replicable voices out there.
There's tens of thousands of hours of my voice.
(08:57):
Any even semi competent A.I. could probably do a decent job of mimicking my voice.
So there you go, Dan.
You and I will be on the beach and the robots will take it going forward.
Obviously, listeners, we've touched on volatility a myriad a legion of times here on the show.
I'll give you a couple.
You could dip your toes in if you want to go check out specific episodes.
(09:18):
Episode 315, when we just did a November 20th navigating volatility products.
That's a good starting point there.
We also talked about episode 314 right before it post election option strategies.
The A.I. did suggest, of course, listeners how events like earnings reports and geopolitical
factors and other things impact volatility.
We discussed that there.
We talked about ETF volatility mysteries on episode 306 from September of this year and
(09:44):
crazy Vic Stupids in episode 303 on August of this year.
That's just a few episodes.
You touched on volatility many times, but there you go.
That's the first of 18.
Then number two, this one may be a little a little self-fulfilling.
They want us to talk about them.
They say the role of A.I. and machine learning and options trading, Dan.
(10:06):
They say for discussion topics, explore how artificial intelligence and machine learning
algorithms are being used by traders and firms to predict market movements and automate option
strategies.
Also, this is interesting for A.I.
Discuss the ethical considerations and risks of relying on A.I. in trading.
(10:26):
I like that, Dan.
The robots are telling us, "Keep an eye on us.
Don't trust us."
What are your thoughts on that as a potential episode topic?
Yeah, talk about self-serving, man.
That's what happens.
They scan the internet and got all this information off Facebook and all these other social media
that are designed to brainwash us and influence our way of thinking.
(10:53):
They're working the system.
They're like, "Oh, hey, maybe an episode on A.I.
How about that?
How would you feel about that?"
"You should talk about us."
If we were to do that, we'd probably need to bring on some A.I. specialists, but it's
not the worst idea I've heard out there, even though it is, like I said, a little bit self-serving.
(11:14):
Maybe only a half point for that one there on the robots.
Number three, Dan.
Kind of a good one for maybe three years ago, but still a good topic we've touched on many
times.
This is the rise of retail traders and their influence on the options market.
Again, a pretty nuanced topic for A.I. to suggest, I thought.
I was kind of surprised.
I thought they were going to say, "What's a call?
(11:35):
What's a put?"
They kind of went a little bit deeper, which I was surprised at.
Suggested discussion topics, Dan, are examine how the influx of retail investors using trading
apps like Robinhood has affected the options market, discussed the increase in "meme stocks"
and how options have become a tool for retail traders to drive price action, and also investigate
(11:57):
trends like the popularity of out of the money, parentheses, OTM options, and "yolo trades."
What do you think?
What do you think of this one, Dan?
We've kind of touched on some of this stuff, but I actually kind of like the first part
(12:17):
of that, examine how the influx of retail investors using trading apps like Robinhood
has affected the options market.
I don't think we actually specifically touched on that one.
We kind of touched on all the other stuff, parts of that, but there might be an interesting
(12:39):
little niche there, I think.
Yeah, we can certainly explore this again.
We've touched on the growth and the explosion of retail many times on the show, especially
obviously post-pandemic listeners.
If you want a specific episode example, listeners, go to episode 108 from October 14th of 2020,
entitled "Immersion Training, Retail Fever, Put Problems, and More."
(13:02):
We kind of got into it there, but we've touched on this.
Just the fact that you folks are coming en masse more every month to the world of options.
We love it.
We welcome you all here on the show at the end of the day.
It's one of the reasons why episode one of this program has been near the top of our
network charts ever since the pandemic.
Bootcamp and loving, indeed, going all the way back to the beginning, the primordial ooze
(13:25):
days of this show and starting at episode one and working all the way through.
We love you all who are doing that.
Not the worst example of a topic.
We've touched on it many times, but maybe we could carve out some nuances there.
Number four, Dan, options for hedging against inflation and interest rate changes, and their
suggested discussion points.
Explain how options can be used to hedge against inflation and rising interest rates.
(13:50):
Discuss specific strategies such as the use of long puts, call spreads, and how options
interact with broader macroeconomic conditions.
Again, not the worst.
Would have been more useful topic, let's say, two years ago, but not bad.
We've done rates many times, Dan, but never really specifically about inflation.
What are your thoughts?
(14:12):
Well, yeah, dated.
That's probably because when does chat GPT go back to you?
When does their knowledge end?
I know the paid more recent versions are more recent, but I actually have chat GPT open.
(14:33):
I'll just ask her.
Ask the robot.
When does your knowledge end?
When does your knowledge end?
That's probably why, because it was still in inflation and stuff.
October of 2023, so a little over a year ago.
Okay, interesting.
Yeah, that would probably put that in a little bit more context there.
(14:55):
Not the worst, but again, more nuanced than I expected.
I certainly just expected what is a call, what is a put, if anything.
This is obviously more nuanced than that.
Maybe there's something we could pull out of there, even though we've done rates a bunch
of times.
Just search for rates in our archive listeners.
Of course, variations on that like theta that we'll get to in a second.
Number five, Dan, exploring the risks of naked options trading.
(15:18):
Dive into the risks and rewards of selling naked calls and puts.
Provide real world examples of how traders have encountered significant losses due to
poor risk management in this space and teach how to manage these risks through techniques
like stop loss orders and proper position trading.
So again, not terrible, more nuanced than I expected, Dan.
(15:40):
What do you think?
Yeah, I mean, we've talked about that.
You know what?
They're probably looking at our podcast to get these frickin' ideas.
Yes, we have talked about that many times.
How many times have we said, "Don't be net short units.
Don't be naked short options.
That's that way your lies madness."
If you want a specific example, listeners, just from this year, episode 295 from July
(16:05):
3rd, we said, "Naked short deltas and the dreaded banana theta."
If you want to hear our thoughts on being naked short anything, go check out episode
295.
So we have touched on that already, of course, but again, not terrible.
You're right, Dan.
Maybe they are ripping us off.
Number six, the impact of the SEC's potential regulation on options trading.
(16:30):
Discuss ongoing regulatory effects by the SEC and other global regulators regarding
options trading, particularly around options on meme stocks, options volume, and market
manipulation.
Explore potential future regulations that could impact retail options traders and the
market as a whole.
Again, more nuance than I expected.
And it could be a timely one, Dan, with the whole new Trump regime rolling in.
(16:53):
One of the reasons markets have rallied so hard is because they think regulation is just
going out the window.
So there could be some grist for the middle of that.
Dan, what do you think?
Yeah.
Actually, I don't know if you saw the news that just came out today on X.com and on Social
Truth that Trump appointed Bozo the clown as head of the SEC.
(17:15):
And I don't know what his stances are on certain things, but I think he'll be great.
Would Bozo be better or worse than Gensler?
That's the question people have.
He'll be more fun.
He would be more exciting.
You play some games with him.
I'm not a big clown fan myself, but outside of that, we could see.
We've avoided, we've steadfastly avoided regulation on the show, Dan, because it's not the sexiest
(17:36):
topic.
But hey, if our AI overlords tell us to do it, I guess we have no choice, Dan.
We have to do that.
So maybe stay tuned for an upcoming regulatory episode.
Listen, strap in for the excitement they're in.
Number seven, Dan, option strategies for earning season.
Analyze the various option strategies that traders use during earning season to capitalize
(17:57):
on volatility.
Ask strategies like straddles, triangles and iron condors.
Explain how to access implied volatility and how it can influence options pricing around
earnings reports.
So again, a strategy, a topic we have discussed many times, but still a little bit more nuanced
and specific than I expected from the robot overlords, Dan.
(18:19):
Yeah, they transcribe in our show and scraping it and spitting it back right out to us.
Sons of guns.
I'm going to go 10 Microsoft and invoice after this show, Dan.
How dare they rip us off to our own show, to our own faces, Dan.
How dare they?
Listeners, if you want some specific examples, obviously we've done a legion of episodes
on earnings trading.
(18:41):
Most recently, episode 303, Nvidia straddles earnings, time spreads and crazy big stupid
from August 28th of this year.
Also episode 297 hedging Nvidia and Tesla July 17th of this year.
News volatility episode 293 from June 12th of this year.
Episode 277, Nvidia madness, February 21st of this year, trading options and high skew
(19:05):
environments episode 275 from February 7th.
I could go on for hours here, but there's a ton of episodes.
If you want to sink your teeth into these topics that obviously chat GPT is listening
to number eight, Dan, another one kind of weird and a little dated, but interesting.
The growing popularity of weekly options, Dan examine how weekly options have gained
(19:27):
popularity in recent years and the opportunities they present for short term traders discuss
the differences between monthly and weekly options and know how they affect options,
pricing liquidity and strategy planning.
Now obviously Dan weekly is not exactly the sexiest topic anymore.
We did talk about this though.
(19:48):
You and I all the way back on episode 151 entitled weeklies versus weeklies versus quickies
September 8th of 2021.
That was obviously Dan in the pre zero DTE era.
Now I think everyone want to talk about zero DTE, which is why I think this is a dated
topic.
They don't even mention zero DT.
(20:08):
One of the things the robot overlords missed, but what do you think Dan a whole episode
on weeklies again?
You know, if I said it once, I've said it a thousand times, Mark weekly options will
never catch on.
Yeah.
You know who's going to want those stupid things?
Who want expiration is once a month and never shall it be closer listeners.
Number nine, another one that was kind of hot.
(20:30):
I'd say a few years ago, but you know, again, maybe going back to your dated data set, Dan,
number nine, the gamma squeeze phenomenon in options trading, explain the mechanics
behind a gamma squeeze where options trading leads to sharp stock price moves, provide
real world examples such as the GameStop saga in 2021 and how options traders can potentially
(20:52):
profit or lose with such events.
Again, not bad.
We did this ourselves.
Listener's episode 172 entitled what the hell our gamma squeezes from February 2nd of 2022.
So if you want to go deep, check out that episode.
But Dan, I don't know.
Do we need to revisit gamma squeezes, sir?
I mean, I think Miss Chachi is in like a fugue state or something like that.
(21:15):
Maybe you know, she had closed head injury or car accident or something like that.
Just, you know, forgot.
Well, I guess didn't learn, you know, the last year and a quarter of time.
They still learning, Dan, the robot overlord still learning.
Number 10 listeners leveraged and inverse ETFs in options trading dive into how leverage
(21:41):
and inverse exchange traded funds are used by options traders discussed in pros and cons
of trading options on these products, especially given their short term trading focus.
That's interesting that the bots picked up on that and the risks involved in holding
them over the long term.
We've already touched on this many times, mostly from the volatility perspective listeners.
(22:01):
Most recently, episode 237 from May 17th of last year entitled Crossing Zero Day Franken
Products and More and episode 157 from October 20th of 2021 called the dark side of short
puts taxes and leveraged ETFs.
If you want to go check out two episodes already on this listeners.
(22:23):
But Dan, what do you think?
Do you think we need to dive back into the world of levered and inverse ETFs, Dan?
Yeah, I mean, I was going to, you know, berate our friend chat GPT again for scraping our
own show here.
But I kind of started thinking if they're if they're translating or transcribing our
(22:44):
show and like reading what we say, like once they get powerful enough, they might come
after us.
So we should probably say some nice things about them.
Welcome to our robot overlords.
So yeah, this one not terrible.
Again, we've done it a lot through the volatility lens, but there are other offerings out there
we could explore that are inverse and levered.
(23:05):
So it might be worth might be worth an episode in the modern OBC era listeners.
Number 11, Dan, this one surprised me at how nuanced it was.
Number 11, the role of market makers and liquidity in options markets provide an overview of
the role of market makers in the options market and how they contribute to liquidity discuss
(23:25):
how options traders can find the most liquid options to trade and why liquidity is important
for successful trading strategies.
Again, wasn't expecting something on that level.
We have, of course, Dan and I both being former market makers have talked about market makers
on the show before.
If you want to go check out episode 184 from May 3rd of 2022 entitled tales from the trading
(23:46):
floor, volume one or episode 294 from June 26 of this year, tales on the trading floor,
part two.
You do touch on market makers, but Dan, I don't think we actually have sat down.
You and I on an episode instead, you know, here's exactly what market makers do.
Here's the function they provide and hear how valuable maybe how that's evolved in the
(24:07):
modern era.
What do you think?
Think there's think there's value in an episode for that, sir.
Um, actually, you know, yeah, because the times we've talked about it, you know, tales from
the trading floor, it was kind of more stories and that kind of stuff, which is useful, educational,
(24:28):
entertaining, I think.
But I don't know if we ever really just went super deep into what a market maker does or
whatever.
I mean, loosely, of course we did a lot, but I don't know if we ever did a really big deep
dive.
Yeah, I don't hate that as an episode topic.
So I'll score one for our robot overlords there.
(24:50):
But then number 12, Dan, they get back to the dated topics.
They say options trading in a low interest rate environment discuss how the current low
interest rate environment impacts options pricing, as well as strategies for traders
looking to generate returns in such conditions and explore how low rates affect the cost
of carry and long options positions and the shift in market behavior.
(25:12):
Obviously listeners, we haven't had low rates in some time.
If you want an episode where we do dive into that, go back to episode 91 from June 17th
of 2020.
So in the heat of the market meltdown and subsequent rally rates were actually effectively zero
or negative.
In fact, our episode was entitled Your questions about diagonal diagonals, easy for me to say,
(25:33):
negative rates and more.
So Dan, zero low rates, not exactly an issue right now.
So I don't know, but interesting, interesting nonetheless, sir.
Yeah, I don't know.
You know, a lot of times with chat GPT and really even other stuff like like even some
(25:55):
of the scanners, the scanners that I created to get trade ideas like credit spread genius
and all that, like I'll I'll look at it for an idea.
And I won't like the idea that it spits out in and of itself as it is, but it'll I'll
piggyback off it.
So you know, we could we could steal the idea and just tweak it.
(26:20):
Options trading in the current interest rate environment or higher rate environment or something.
And we have done the impact of rates on episode on options pricing in the past listeners,
but maybe it's worth revisiting.
Let us know if you want to hear that listeners kind of inverse of what the robots had suggested
for us.
Number 13 already come up against it.
(26:41):
I get rolling a lot of suggestions from the robot overlords this week.
The concept of quote, theta decay, Dan and time value and options teach your audience
how time decay works in options trading and why it's so important when selecting expiration
dates discuss strategies that take advantage of theta decay, such as selling options and
explain the risks involved.
(27:03):
Again, not terrible, more nuanced topic suggestion than I expected from a chat bot.
We have obviously done this many times.
Listeners including episode one ninety two from June 29th of twenty twenty two called
managing your theta episode one thirty seven from June 2nd of twenty twenty one revisiting
the dark side of theta and episode one twenty two from February 10th of twenty twenty one
(27:28):
entitled mysteries of theta delisted options, Bitcoin and more.
There's just a few examples of the many episodes we've done about theta.
And are you surprised that the robot overlords know about theta?
Well, no, I'm not surprised by that because I mean, I've you know, I've I've looked at
(27:49):
chat GPT for option stuff.
A lot of times the idea of coming up with it as an idea for a show is, you know, it
means she's doing her job, it's working because it is a good idea.
(28:12):
You know, as we know, because we've done it already.
But yeah, yeah, I mean, AI works kind of sometimes.
A little bit on occasion.
Yeah.
All right.
Let's keep rolling here.
Number fourteen.
Interesting one, synthetic option strategies introduce synthetic long and short positions
(28:37):
as well as synthetic covered calls discuss how these strategies mimic the exposure of
traditional positions, but with lower capital requirements.
We have talked about this, listeners, but it's been a while since we've devoted a full
episode to it.
The last full episode all about synthetics was episode eighteen all the way back, Dan,
(28:58):
in the primordial ooze days of March six of twenty thirteen entitled appropriately enough,
Dan, the joys of synthetic.
So maybe we're overdue for a little bit of RevCon talk.
What do you think?
Jeez Louise, that was oh my goodness.
That was like eleven and a half years ago, over five hundred episodes ago.
(29:22):
Oh my goodness.
Many of our current listeners were just sucking on a binky.
Yeah.
Let alone talking about synthetics.
So yeah, so interesting, interesting stuff.
So maybe maybe the robots got one there.
Number fifteen, Dan, options on crypto currencies explore the growing market for options on
(29:42):
crypto currencies like Bitcoin and Eith discuss the differences in how these options are priced
and traded compared to traditional assets and how the volatility of crypto markets influences
option strategies.
Obviously, we have done this many times.
Listeners most recently, episode three oh eight from a couple of months ago, October
second of this year, entitled crypto ETF options, semi straddles and put skew a Dan.
(30:06):
Do we need to dive deeper into crypto options, sir?
I mean, I think we've talked about him kind of a fair amount, really, you know, including
the pretty recent episode.
I don't know.
I mean, honestly, there probably will be more opportunities to talk about it because, you
(30:28):
know, Trump is a crypto sort of fella and crypto probably be in the news a lot more
over the next four years.
So opportunities will probably present themselves.
Yeah, we're not done with it.
Listen, it's probably going to table it for now.
We just did the whole episode and everything else.
But as more products come online, certainly worth revisiting a number sixteen listeners
managing and protecting profits in options trading focused on techniques to lock in profits
(30:53):
or prevent losses as the trade moves in your favor.
Discuss trailing stops, rolling options and setting targets as a part of a comprehensive
risk management approach.
Obviously, we've discussed hedging many, many times here on this program.
Listeners and it also dovetails with a recent listener question we had about using stop
orders with debit spreads, I believe it was.
(31:15):
So we have talked about not specifically through the lens of, hey, you made money and now you
want to protect it.
But that is a use case that is implied in hedging.
So Dan, I don't know.
I think we need to add anything else on the put side as we're coming up against it, sir.
You know, I think that there's a lot we can do on this topic.
So maybe not the maybe not revisiting the things that we talked about, but maybe sort
(31:39):
of expanding horizontally on that breadth of topics that fall under that set.
All right.
We're coming up against this.
Let's squeeze in the last couple here.
We got to get to episode two, Dan.
The live folks are waiting.
Let's go to number 17.
The psychological side of options trading.
Dive into the psychology of options traders, including common emotional pitfalls such as
(32:03):
greed, fear and overconfidence.
Write tips on building mental discipline and staying focused on risk management.
If you want that listeners go back.
Check out episode one forty seven from August 11th of 2021 entitled an epic trader psychology
spectacular Dan.
I know that's a big area of focus for you.
(32:23):
What do you think about the robot suggesting it?
Yeah, that one.
I'm kind of surprised that the robot came up with.
But I remember that episode and I really enjoyed that one.
We could probably do some subsets of that episode and drill down a little bit more on
(32:44):
some of the stuff we talked about or or even go back and review it and see what we missed.
That one couldn't hurt either, man.
Yeah.
The number eighteen Dan to wrap it up here.
The impact of earning surprises on options prices.
Examine how earning surprises both positive and negative can cause volatility in options
prices.
(33:04):
Discuss how options excuse me, how to use options to play earnings reports and how to
protect against the risk of an unexpected earnings result.
Obviously I listed a whole bunch earlier listeners.
We've done earnings options trading many times, never through the lens specifically of surprises.
But again, not terrible.
But Dan, all in all, how would you rate the suggestions, the eighteen suggestions from
(33:27):
our robot overlords?
I would rate it probably exactly as I would have rated it.
If you'd asked me what what do you think the rating is going to be after the fact.
I give it a pretty good solid B, which is what a lot of the stuff that comes out of
(33:48):
chat GPT is.
You know, it's it's it's good.
It's useful.
It's never like sparkly and perfect and super innovative, but it's it's it's good.
I call it myself pleasantly surprised by this.
I expected one or two suggestions and maybe just one line things very basic.
And that was it.
I didn't expect eighteen.
I didn't expect nuanced discussion topic suggestions.
(34:12):
So I mean, obviously we've done most of this already, which shows I guess we're doing our
job, Dan, as as options educators here.
But yeah, you know, this kind of surprised me.
I don't hate all their suggestions.
And maybe we actually got a couple of things we could work with for future episode topics.
So overall, I say to our future robot overlords, well done.
I tip my cap to you when it comes time to enslave us all.
(34:35):
Enslave me last is what I'm saying.
Take Dan before me.
In the meantime, Dan, if folks want to take some of your lessons, where should they go?
What should they do?
Come on over to market taker dot com.
Get as in stock market takers and take what is rightfully yours to tease in a row.
Come over to market taker dot com and you can reach me there.
(34:58):
You can join a chat room for free at this time.
Get some free classes and I'm happy to interact with you if you DM me on the chat room.
And of course, listeners, make sure you check out the folks who have been supporting the
show.
If you're amazed of episodes going back to 2013.
Yeah, the reason we're able to do that is because we have great sponsors who have supported
the show from day one, including right now the folks over there at public public dot
(35:21):
com slash options boot camp.
Very easy URL to remember.
All you got to do is go to it and that helps support the show.
If you want to kick the tires and light the fires while you're there, maybe get paid a
rebate to trade options.
Not the worst thing.
Public dot com slash options boot camp.
The place to go.
Meanwhile, we got to get on out of here.
Pro folks listening live.
I will be back immediately in your air holes.
(35:43):
Dan in tow for episode two of our double header.
And then after that, if you're not done with Dan's, we got Dan squared there.
Buddy Dan Grams will be joining us for a little bit of the futures rundown for all you listening
on demand.
We'll see you next week.
Another episode of options boot camp.
Stay safe out there.
If you trade options, you've got to ask yourself, why would you choose an options trading platform
(36:07):
that puts investors first at public dot com?
There are no commissions or per contract fees.
And more importantly, it's the only platform where you can earn a rebate on every single
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That means you can save on your options trading costs and keep more of your capital in play.
Whenever you trade options on public, your savings are automatically applied.
(36:32):
So don't change your strategy.
Change your platform and see the difference in your bottom line.
No commissions, no per contract fees.
And it's the only options trading platform where you can earn a rebate on every contract
traded.
To learn more, please visit public dot com slash options boot camp.
(36:53):
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(37:16):
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(37:40):
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(00:22):
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You wanted it.
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A radio program that helps teach you options trading inside and out, basic to complex.
(01:18):
This is Options Boot Camp.
Whether you want to learn how to protect your portfolio, generate income, or even become
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If you trade options, you've got to ask yourself, why would you choose an options trading platform
(01:41):
that puts investors first?
At public.com, there are no commissions or per contract fees.
But more importantly, it's the only platform where you can earn a rebate on every single
contract traded.
That means you can save on your options trading costs and keep more of your capital in play.
Whenever you trade options on public, your savings are automatically applied.
(02:05):
So, don't change your strategy, change your platform, and see the difference in your bottom
line.
No commissions, no per contract fees.
And it's the only options trading platform where you can earn a rebate on every contract
traded.
To learn more, please visit public.com/optionsbootcamp.
(02:26):
Paid for by Public Investing, options not suitable for all investors and carry significant
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Full disclosures and podcast description.
Fall in boot.
It's time to get into peak options trading shape.
It's time for Options Boot Camp.
All right, everybody.
(02:49):
That music means we are back.
It is education Wednesday.
Time to roll out the red carpet for not one, but two episodes.
Yes, it's time for another OBC double header.
So strap in.
You're getting the goods today, listeners.
Of course, if you're listening live on our pro side, you're getting it all right now.
If you're listening after the fact, you'll get the second episode next week in the usual
(03:10):
bat time, usual bat channel.
So if you want to join us on the pro, get the live, get options oddities, get awesome
pro Q and A's.
We had our buddy who's been a frequent guest on this show, Mr. Matt Anderson, just diving
deep into all your questions about SKU and calendars and all kinds of fun stuff on our
pro Q and A yesterday.
If you want to join those partes, the optionsinsider.com/pro is the place to go.
(03:34):
To get in there, you also get access to our giveaways and options oddities.
All sorts of fun over there.
The optionsinsider.com/pro.
If you think you're ready to take that next step in your options trading, let's take that
next step on the show.
Let's see who's joining us on the old program.
I am pleased to welcome on the black-hatted one himself, Mr. Dan Pasarelli from Market
(03:57):
Taker mentoring with the cool kids called mmm to mmm.
Mr. P, how go things in the land of Frankfurt, sir?
Hey, Marky Mark.
How are you, my friend?
Doing A-OK here.
It's a little chilly as you know, you're closer to the lake.
You get that lake effect wind chill factor that, you know, the Chicagoans might not know
(04:17):
about, but it sucks.
But hey, other than that, it's going great.
Let's see if it's going great with the show.
We got an interesting one, Dan, in store for us today.
I am very intrigued.
Let's get to it.
It is time for some options drills.
All in much time for our favorite past time option drills.
(04:40):
We're going to take the strategies learned during the show and teach you how they can
be employed to achieve a specific objective.
Do you hear me?
Yes, sir.
All right, everybody.
Welcome to the options drills.
Going to do something a little bit different.
Well, actually a lot different.
(05:00):
Quite simply, Dan, it's not often we could say we have a topic that we've never touched
on in the well over a decade, well over 200 plus episodes, well over a decade in terms
of years.
It's something we couldn't even do technologically just a couple of years ago, Dan.
But it was an intriguing one.
You know, we were messing around as people like to do because we all know we are in the
(05:21):
age of A.I.
Right now, Dan, so we need to welcome our robot overlords here on the program.
So you thought what better way to pave the path for them than to check in with the various
platforms and say, you know, we've been doing this show for a long time.
We've touched on a bunch of these different topics.
But what do you are new A.I.
(05:42):
overlords, the robot masters of the future?
What do you think would make for a compelling episode of options boot camp?
And Dan, you know, we tried a couple of different ways.
First we went to Gemini, the Google A.I. and we thought, hey, a lot of our shows, all the
write ups are in Google Doc should be pretty easy.
Feed that to the Gemini and say, here's what we've done in the past.
(06:05):
What do you think would make a good episode following this format?
And Dan, the Google A.I. that they've spent, I don't know, hundreds of millions, billions
of dollars on couldn't even handle a Google Doc.
It choked and exploded on it.
I was like, wait, you're the same.
So that that Google forget about Gemini.
It's ended up on chat GPT, which is, of course, the big one.
(06:27):
And we fed it some criteria, not much, actually.
We didn't really feed it that much.
And guess what, Dan, it ended up spitting back out not one, not two, but fully 18 different
show topics, in fact, titles complete with sub topics and discussion categories within
(06:49):
each one.
And I have to say they weren't terrible.
I was more than a little surprised.
Not all of them are home runs, but I thought, you know, what better thing to do than take
all 18 and throw them out there on the show to see what our listeners think and what you
think about how I did, what kind of job I did.
(07:09):
And also maybe there's some grist for the middle for future episodes here.
So what do you think, Dan, are you ready to go on an A.I. options based journey with me?
Hey, man, if you can't beat them, join them.
Yes, we welcome our robot overlords here on options.
All right, Dan, number one, I don't think these are in order.
These are just the order that came out of the old robot device.
(07:30):
I don't think this is the number one topic, but interesting.
Number one, Dan, for our what our robot overlords think we should be talking about in terms
of options education.
What are the top of mind cutting edge topics in the world of options education?
Number one, Dan, volatility and its impact on options pricing.
And in terms of their discussion points, A.I. suggests discuss how volatility affects options
(07:54):
pricing, including the concepts of implied volatility and historical volatility.
Number two, dive into how events like earnings reports, economic data releases or geopolitical
factors impact volatility.
Number three, introduce the VIX index as a measure of market volatility and explore how
it influences options strategies.
(08:15):
So overall, Dan, I was kind of surprised.
That was a little bit more nuanced than I expected from a from a chat bot.
But that's what we got.
What do you think for episode one suggestion, Dan, and as well as the the discussion points
suggested, sir?
Yeah, man.
I mean, that's not too bad.
(08:36):
Is there like, you know, a voice thing on there?
Do we just have the robot do the show for us?
We'll sit back and drink some margaritas.
Welcome to options boot camp.
I am Mark Longo.
I will now host the show.
Actually, I'm probably one of the most easily A.I. replicable voices out there.
There's tens of thousands of hours of my voice.
(08:57):
Any even semi competent A.I. could probably do a decent job of mimicking my voice.
So there you go, Dan.
You and I will be on the beach and the robots will take it going forward.
Obviously, listeners, we've touched on volatility a myriad a legion of times here on the show.
I'll give you a couple.
You could dip your toes in if you want to go check out specific episodes.
(09:18):
Episode 315, when we just did a November 20th navigating volatility products.
That's a good starting point there.
We also talked about episode 314 right before it post election option strategies.
The A.I. did suggest, of course, listeners how events like earnings reports and geopolitical
factors and other things impact volatility.
We discussed that there.
We talked about ETF volatility mysteries on episode 306 from September of this year and
(09:44):
crazy Vic Stupids in episode 303 on August of this year.
That's just a few episodes.
You touched on volatility many times, but there you go.
That's the first of 18.
Then number two, this one may be a little a little self-fulfilling.
They want us to talk about them.
They say the role of A.I. and machine learning and options trading, Dan.
(10:06):
They say for discussion topics, explore how artificial intelligence and machine learning
algorithms are being used by traders and firms to predict market movements and automate option
strategies.
Also, this is interesting for A.I.
Discuss the ethical considerations and risks of relying on A.I. in trading.
(10:26):
I like that, Dan.
The robots are telling us, "Keep an eye on us.
Don't trust us."
What are your thoughts on that as a potential episode topic?
Yeah, talk about self-serving, man.
That's what happens.
They scan the internet and got all this information off Facebook and all these other social media
that are designed to brainwash us and influence our way of thinking.
(10:53):
They're working the system.
They're like, "Oh, hey, maybe an episode on A.I.
How about that?
How would you feel about that?"
"You should talk about us."
If we were to do that, we'd probably need to bring on some A.I. specialists, but it's
not the worst idea I've heard out there, even though it is, like I said, a little bit self-serving.
(11:14):
Maybe only a half point for that one there on the robots.
Number three, Dan.
Kind of a good one for maybe three years ago, but still a good topic we've touched on many
times.
This is the rise of retail traders and their influence on the options market.
Again, a pretty nuanced topic for A.I. to suggest, I thought.
I was kind of surprised.
I thought they were going to say, "What's a call?
(11:35):
What's a put?"
They kind of went a little bit deeper, which I was surprised at.
Suggested discussion topics, Dan, are examine how the influx of retail investors using trading
apps like Robinhood has affected the options market, discussed the increase in "meme stocks"
and how options have become a tool for retail traders to drive price action, and also investigate
(11:57):
trends like the popularity of out of the money, parentheses, OTM options, and "yolo trades."
What do you think?
What do you think of this one, Dan?
We've kind of touched on some of this stuff, but I actually kind of like the first part
(12:17):
of that, examine how the influx of retail investors using trading apps like Robinhood
has affected the options market.
I don't think we actually specifically touched on that one.
We kind of touched on all the other stuff, parts of that, but there might be an interesting
(12:39):
little niche there, I think.
Yeah, we can certainly explore this again.
We've touched on the growth and the explosion of retail many times on the show, especially
obviously post-pandemic listeners.
If you want a specific episode example, listeners, go to episode 108 from October 14th of 2020,
entitled "Immersion Training, Retail Fever, Put Problems, and More."
(13:02):
We kind of got into it there, but we've touched on this.
Just the fact that you folks are coming en masse more every month to the world of options.
We love it.
We welcome you all here on the show at the end of the day.
It's one of the reasons why episode one of this program has been near the top of our
network charts ever since the pandemic.
Bootcamp and loving, indeed, going all the way back to the beginning, the primordial ooze
(13:25):
days of this show and starting at episode one and working all the way through.
We love you all who are doing that.
Not the worst example of a topic.
We've touched on it many times, but maybe we could carve out some nuances there.
Number four, Dan, options for hedging against inflation and interest rate changes, and their
suggested discussion points.
Explain how options can be used to hedge against inflation and rising interest rates.
(13:50):
Discuss specific strategies such as the use of long puts, call spreads, and how options
interact with broader macroeconomic conditions.
Again, not the worst.
Would have been more useful topic, let's say, two years ago, but not bad.
We've done rates many times, Dan, but never really specifically about inflation.
What are your thoughts?
(14:12):
Well, yeah, dated.
That's probably because when does chat GPT go back to you?
When does their knowledge end?
I know the paid more recent versions are more recent, but I actually have chat GPT open.
(14:33):
I'll just ask her.
Ask the robot.
When does your knowledge end?
When does your knowledge end?
That's probably why, because it was still in inflation and stuff.
October of 2023, so a little over a year ago.
Okay, interesting.
Yeah, that would probably put that in a little bit more context there.
(14:55):
Not the worst, but again, more nuanced than I expected.
I certainly just expected what is a call, what is a put, if anything.
This is obviously more nuanced than that.
Maybe there's something we could pull out of there, even though we've done rates a bunch
of times.
Just search for rates in our archive listeners.
Of course, variations on that like theta that we'll get to in a second.
Number five, Dan, exploring the risks of naked options trading.
(15:18):
Dive into the risks and rewards of selling naked calls and puts.
Provide real world examples of how traders have encountered significant losses due to
poor risk management in this space and teach how to manage these risks through techniques
like stop loss orders and proper position trading.
So again, not terrible, more nuanced than I expected, Dan.
(15:40):
What do you think?
Yeah, I mean, we've talked about that.
You know what?
They're probably looking at our podcast to get these frickin' ideas.
Yes, we have talked about that many times.
How many times have we said, "Don't be net short units.
Don't be naked short options.
That's that way your lies madness."
If you want a specific example, listeners, just from this year, episode 295 from July
(16:05):
3rd, we said, "Naked short deltas and the dreaded banana theta."
If you want to hear our thoughts on being naked short anything, go check out episode
295.
So we have touched on that already, of course, but again, not terrible.
You're right, Dan.
Maybe they are ripping us off.
Number six, the impact of the SEC's potential regulation on options trading.
(16:30):
Discuss ongoing regulatory effects by the SEC and other global regulators regarding
options trading, particularly around options on meme stocks, options volume, and market
manipulation.
Explore potential future regulations that could impact retail options traders and the
market as a whole.
Again, more nuance than I expected.
And it could be a timely one, Dan, with the whole new Trump regime rolling in.
(16:53):
One of the reasons markets have rallied so hard is because they think regulation is just
going out the window.
So there could be some grist for the middle of that.
Dan, what do you think?
Yeah.
Actually, I don't know if you saw the news that just came out today on X.com and on Social
Truth that Trump appointed Bozo the clown as head of the SEC.
(17:15):
And I don't know what his stances are on certain things, but I think he'll be great.
Would Bozo be better or worse than Gensler?
That's the question people have.
He'll be more fun.
He would be more exciting.
You play some games with him.
I'm not a big clown fan myself, but outside of that, we could see.
We've avoided, we've steadfastly avoided regulation on the show, Dan, because it's not the sexiest
(17:36):
topic.
But hey, if our AI overlords tell us to do it, I guess we have no choice, Dan.
We have to do that.
So maybe stay tuned for an upcoming regulatory episode.
Listen, strap in for the excitement they're in.
Number seven, Dan, option strategies for earning season.
Analyze the various option strategies that traders use during earning season to capitalize
(17:57):
on volatility.
Ask strategies like straddles, triangles and iron condors.
Explain how to access implied volatility and how it can influence options pricing around
earnings reports.
So again, a strategy, a topic we have discussed many times, but still a little bit more nuanced
and specific than I expected from the robot overlords, Dan.
(18:19):
Yeah, they transcribe in our show and scraping it and spitting it back right out to us.
Sons of guns.
I'm going to go 10 Microsoft and invoice after this show, Dan.
How dare they rip us off to our own show, to our own faces, Dan.
How dare they?
Listeners, if you want some specific examples, obviously we've done a legion of episodes
on earnings trading.
(18:41):
Most recently, episode 303, Nvidia straddles earnings, time spreads and crazy big stupid
from August 28th of this year.
Also episode 297 hedging Nvidia and Tesla July 17th of this year.
News volatility episode 293 from June 12th of this year.
Episode 277, Nvidia madness, February 21st of this year, trading options and high skew
(19:05):
environments episode 275 from February 7th.
I could go on for hours here, but there's a ton of episodes.
If you want to sink your teeth into these topics that obviously chat GPT is listening
to number eight, Dan, another one kind of weird and a little dated, but interesting.
The growing popularity of weekly options, Dan examine how weekly options have gained
(19:27):
popularity in recent years and the opportunities they present for short term traders discuss
the differences between monthly and weekly options and know how they affect options,
pricing liquidity and strategy planning.
Now obviously Dan weekly is not exactly the sexiest topic anymore.
We did talk about this though.
(19:48):
You and I all the way back on episode 151 entitled weeklies versus weeklies versus quickies
September 8th of 2021.
That was obviously Dan in the pre zero DTE era.
Now I think everyone want to talk about zero DTE, which is why I think this is a dated
topic.
They don't even mention zero DT.
(20:08):
One of the things the robot overlords missed, but what do you think Dan a whole episode
on weeklies again?
You know, if I said it once, I've said it a thousand times, Mark weekly options will
never catch on.
Yeah.
You know who's going to want those stupid things?
Who want expiration is once a month and never shall it be closer listeners.
Number nine, another one that was kind of hot.
(20:30):
I'd say a few years ago, but you know, again, maybe going back to your dated data set, Dan,
number nine, the gamma squeeze phenomenon in options trading, explain the mechanics
behind a gamma squeeze where options trading leads to sharp stock price moves, provide
real world examples such as the GameStop saga in 2021 and how options traders can potentially
(20:52):
profit or lose with such events.
Again, not bad.
We did this ourselves.
Listener's episode 172 entitled what the hell our gamma squeezes from February 2nd of 2022.
So if you want to go deep, check out that episode.
But Dan, I don't know.
Do we need to revisit gamma squeezes, sir?
I mean, I think Miss Chachi is in like a fugue state or something like that.
(21:15):
Maybe you know, she had closed head injury or car accident or something like that.
Just, you know, forgot.
Well, I guess didn't learn, you know, the last year and a quarter of time.
They still learning, Dan, the robot overlord still learning.
Number 10 listeners leveraged and inverse ETFs in options trading dive into how leverage
(21:41):
and inverse exchange traded funds are used by options traders discussed in pros and cons
of trading options on these products, especially given their short term trading focus.
That's interesting that the bots picked up on that and the risks involved in holding
them over the long term.
We've already touched on this many times, mostly from the volatility perspective listeners.
(22:01):
Most recently, episode 237 from May 17th of last year entitled Crossing Zero Day Franken
Products and More and episode 157 from October 20th of 2021 called the dark side of short
puts taxes and leveraged ETFs.
If you want to go check out two episodes already on this listeners.
(22:23):
But Dan, what do you think?
Do you think we need to dive back into the world of levered and inverse ETFs, Dan?
Yeah, I mean, I was going to, you know, berate our friend chat GPT again for scraping our
own show here.
But I kind of started thinking if they're if they're translating or transcribing our
(22:44):
show and like reading what we say, like once they get powerful enough, they might come
after us.
So we should probably say some nice things about them.
Welcome to our robot overlords.
So yeah, this one not terrible.
Again, we've done it a lot through the volatility lens, but there are other offerings out there
we could explore that are inverse and levered.
(23:05):
So it might be worth might be worth an episode in the modern OBC era listeners.
Number 11, Dan, this one surprised me at how nuanced it was.
Number 11, the role of market makers and liquidity in options markets provide an overview of
the role of market makers in the options market and how they contribute to liquidity discuss
(23:25):
how options traders can find the most liquid options to trade and why liquidity is important
for successful trading strategies.
Again, wasn't expecting something on that level.
We have, of course, Dan and I both being former market makers have talked about market makers
on the show before.
If you want to go check out episode 184 from May 3rd of 2022 entitled tales from the trading
(23:46):
floor, volume one or episode 294 from June 26 of this year, tales on the trading floor,
part two.
You do touch on market makers, but Dan, I don't think we actually have sat down.
You and I on an episode instead, you know, here's exactly what market makers do.
Here's the function they provide and hear how valuable maybe how that's evolved in the
(24:07):
modern era.
What do you think?
Think there's think there's value in an episode for that, sir.
Um, actually, you know, yeah, because the times we've talked about it, you know, tales from
the trading floor, it was kind of more stories and that kind of stuff, which is useful, educational,
(24:28):
entertaining, I think.
But I don't know if we ever really just went super deep into what a market maker does or
whatever.
I mean, loosely, of course we did a lot, but I don't know if we ever did a really big deep
dive.
Yeah, I don't hate that as an episode topic.
So I'll score one for our robot overlords there.
(24:50):
But then number 12, Dan, they get back to the dated topics.
They say options trading in a low interest rate environment discuss how the current low
interest rate environment impacts options pricing, as well as strategies for traders
looking to generate returns in such conditions and explore how low rates affect the cost
of carry and long options positions and the shift in market behavior.
(25:12):
Obviously listeners, we haven't had low rates in some time.
If you want an episode where we do dive into that, go back to episode 91 from June 17th
of 2020.
So in the heat of the market meltdown and subsequent rally rates were actually effectively zero
or negative.
In fact, our episode was entitled Your questions about diagonal diagonals, easy for me to say,
(25:33):
negative rates and more.
So Dan, zero low rates, not exactly an issue right now.
So I don't know, but interesting, interesting nonetheless, sir.
Yeah, I don't know.
You know, a lot of times with chat GPT and really even other stuff like like even some
(25:55):
of the scanners, the scanners that I created to get trade ideas like credit spread genius
and all that, like I'll I'll look at it for an idea.
And I won't like the idea that it spits out in and of itself as it is, but it'll I'll
piggyback off it.
So you know, we could we could steal the idea and just tweak it.
(26:20):
Options trading in the current interest rate environment or higher rate environment or something.
And we have done the impact of rates on episode on options pricing in the past listeners,
but maybe it's worth revisiting.
Let us know if you want to hear that listeners kind of inverse of what the robots had suggested
for us.
Number 13 already come up against it.
(26:41):
I get rolling a lot of suggestions from the robot overlords this week.
The concept of quote, theta decay, Dan and time value and options teach your audience
how time decay works in options trading and why it's so important when selecting expiration
dates discuss strategies that take advantage of theta decay, such as selling options and
explain the risks involved.
(27:03):
Again, not terrible, more nuanced topic suggestion than I expected from a chat bot.
We have obviously done this many times.
Listeners including episode one ninety two from June 29th of twenty twenty two called
managing your theta episode one thirty seven from June 2nd of twenty twenty one revisiting
the dark side of theta and episode one twenty two from February 10th of twenty twenty one
(27:28):
entitled mysteries of theta delisted options, Bitcoin and more.
There's just a few examples of the many episodes we've done about theta.
And are you surprised that the robot overlords know about theta?
Well, no, I'm not surprised by that because I mean, I've you know, I've I've looked at
(27:49):
chat GPT for option stuff.
A lot of times the idea of coming up with it as an idea for a show is, you know, it
means she's doing her job, it's working because it is a good idea.
(28:12):
You know, as we know, because we've done it already.
But yeah, yeah, I mean, AI works kind of sometimes.
A little bit on occasion.
Yeah.
All right.
Let's keep rolling here.
Number fourteen.
Interesting one, synthetic option strategies introduce synthetic long and short positions
(28:37):
as well as synthetic covered calls discuss how these strategies mimic the exposure of
traditional positions, but with lower capital requirements.
We have talked about this, listeners, but it's been a while since we've devoted a full
episode to it.
The last full episode all about synthetics was episode eighteen all the way back, Dan,
(28:58):
in the primordial ooze days of March six of twenty thirteen entitled appropriately enough,
Dan, the joys of synthetic.
So maybe we're overdue for a little bit of RevCon talk.
What do you think?
Jeez Louise, that was oh my goodness.
That was like eleven and a half years ago, over five hundred episodes ago.
(29:22):
Oh my goodness.
Many of our current listeners were just sucking on a binky.
Yeah.
Let alone talking about synthetics.
So yeah, so interesting, interesting stuff.
So maybe maybe the robots got one there.
Number fifteen, Dan, options on crypto currencies explore the growing market for options on
(29:42):
crypto currencies like Bitcoin and Eith discuss the differences in how these options are priced
and traded compared to traditional assets and how the volatility of crypto markets influences
option strategies.
Obviously, we have done this many times.
Listeners most recently, episode three oh eight from a couple of months ago, October
second of this year, entitled crypto ETF options, semi straddles and put skew a Dan.
(30:06):
Do we need to dive deeper into crypto options, sir?
I mean, I think we've talked about him kind of a fair amount, really, you know, including
the pretty recent episode.
I don't know.
I mean, honestly, there probably will be more opportunities to talk about it because, you
(30:28):
know, Trump is a crypto sort of fella and crypto probably be in the news a lot more
over the next four years.
So opportunities will probably present themselves.
Yeah, we're not done with it.
Listen, it's probably going to table it for now.
We just did the whole episode and everything else.
But as more products come online, certainly worth revisiting a number sixteen listeners
managing and protecting profits in options trading focused on techniques to lock in profits
(30:53):
or prevent losses as the trade moves in your favor.
Discuss trailing stops, rolling options and setting targets as a part of a comprehensive
risk management approach.
Obviously, we've discussed hedging many, many times here on this program.
Listeners and it also dovetails with a recent listener question we had about using stop
orders with debit spreads, I believe it was.
(31:15):
So we have talked about not specifically through the lens of, hey, you made money and now you
want to protect it.
But that is a use case that is implied in hedging.
So Dan, I don't know.
I think we need to add anything else on the put side as we're coming up against it, sir.
You know, I think that there's a lot we can do on this topic.
So maybe not the maybe not revisiting the things that we talked about, but maybe sort
(31:39):
of expanding horizontally on that breadth of topics that fall under that set.
All right.
We're coming up against this.
Let's squeeze in the last couple here.
We got to get to episode two, Dan.
The live folks are waiting.
Let's go to number 17.
The psychological side of options trading.
Dive into the psychology of options traders, including common emotional pitfalls such as
(32:03):
greed, fear and overconfidence.
Write tips on building mental discipline and staying focused on risk management.
If you want that listeners go back.
Check out episode one forty seven from August 11th of 2021 entitled an epic trader psychology
spectacular Dan.
I know that's a big area of focus for you.
(32:23):
What do you think about the robot suggesting it?
Yeah, that one.
I'm kind of surprised that the robot came up with.
But I remember that episode and I really enjoyed that one.
We could probably do some subsets of that episode and drill down a little bit more on
(32:44):
some of the stuff we talked about or or even go back and review it and see what we missed.
That one couldn't hurt either, man.
Yeah.
The number eighteen Dan to wrap it up here.
The impact of earning surprises on options prices.
Examine how earning surprises both positive and negative can cause volatility in options
prices.
(33:04):
Discuss how options excuse me, how to use options to play earnings reports and how to
protect against the risk of an unexpected earnings result.
Obviously I listed a whole bunch earlier listeners.
We've done earnings options trading many times, never through the lens specifically of surprises.
But again, not terrible.
But Dan, all in all, how would you rate the suggestions, the eighteen suggestions from
(33:27):
our robot overlords?
I would rate it probably exactly as I would have rated it.
If you'd asked me what what do you think the rating is going to be after the fact.
I give it a pretty good solid B, which is what a lot of the stuff that comes out of
(33:48):
chat GPT is.
You know, it's it's it's good.
It's useful.
It's never like sparkly and perfect and super innovative, but it's it's it's good.
I call it myself pleasantly surprised by this.
I expected one or two suggestions and maybe just one line things very basic.
And that was it.
I didn't expect eighteen.
I didn't expect nuanced discussion topic suggestions.
(34:12):
So I mean, obviously we've done most of this already, which shows I guess we're doing our
job, Dan, as as options educators here.
But yeah, you know, this kind of surprised me.
I don't hate all their suggestions.
And maybe we actually got a couple of things we could work with for future episode topics.
So overall, I say to our future robot overlords, well done.
I tip my cap to you when it comes time to enslave us all.
(34:35):
Enslave me last is what I'm saying.
Take Dan before me.
In the meantime, Dan, if folks want to take some of your lessons, where should they go?
What should they do?
Come on over to market taker dot com.
Get as in stock market takers and take what is rightfully yours to tease in a row.
Come over to market taker dot com and you can reach me there.
(34:58):
You can join a chat room for free at this time.
Get some free classes and I'm happy to interact with you if you DM me on the chat room.
And of course, listeners, make sure you check out the folks who have been supporting the
show.
If you're amazed of episodes going back to 2013.
Yeah, the reason we're able to do that is because we have great sponsors who have supported
the show from day one, including right now the folks over there at public public dot
(35:21):
com slash options boot camp.
Very easy URL to remember.
All you got to do is go to it and that helps support the show.
If you want to kick the tires and light the fires while you're there, maybe get paid a
rebate to trade options.
Not the worst thing.
Public dot com slash options boot camp.
The place to go.
Meanwhile, we got to get on out of here.
Pro folks listening live.
I will be back immediately in your air holes.
(35:43):
Dan in tow for episode two of our double header.
And then after that, if you're not done with Dan's, we got Dan squared there.
Buddy Dan Grams will be joining us for a little bit of the futures rundown for all you listening
on demand.
We'll see you next week.
Another episode of options boot camp.
Stay safe out there.
If you trade options, you've got to ask yourself, why would you choose an options trading platform
(36:07):
that puts investors first at public dot com?
There are no commissions or per contract fees.
And more importantly, it's the only platform where you can earn a rebate on every single
contract traded.
That means you can save on your options trading costs and keep more of your capital in play.
Whenever you trade options on public, your savings are automatically applied.
(36:32):
So don't change your strategy.
Change your platform and see the difference in your bottom line.
No commissions, no per contract fees.
And it's the only options trading platform where you can earn a rebate on every contract
traded.
To learn more, please visit public dot com slash options boot camp.
(36:53):
Paid for by public investing options, not suitable for all investors and carry significant
risk full disclosures and podcast description.
You're listening to the options insider radio network.
The home of the options podcast.
For more quality options programs, visit the options insider dot com or search for options
(37:16):
insider radio network in your podcast provider of choice.
Listeners can also access all of our programming through our mobile app available on the iTunes
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(37:40):
Don't forget to follow along with your favorite programs and submit your own questions for
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