3 Step Process To Selecting The Right Option Strategy

http://optionalpha.com - Selecting the right option strategy to trade is as simple as #1 choosing your directional assumption. #2 determining if implied volatility is high or low. #3 picking the right strategy for the stock and market conditions. In this video we'll use SBUX as our example to walk through and show you how we make the trade. ================== Listen to our #1 rated investing podcast on iTunes: http://optionalpha.com/podcast ================== Download a free copy of the "The Ultimate Options Strategy Guide": http://optionalpha.com/ebook ================== Still working a day job? Then our "Take 5" segment is for you. 5 mins videos each day on 1 thing you can apply trading options: http://www.youtube.com/playlist?list=PLhKnvfWKsu40z0EnsX0TNqCgUzb8tmM04 ================== Start our 4-part video course (HINT: these videos are NOT posted anywhere else online): http://optionalpha.com/free-options-trading-course ================== Just getting started or new to options trading? Here's a quick resource page we made that you'll love: http://optionalpha.com/start-here ================== Register for one of our 5-star reviewed webinars: http://optionalpha.com/webinars ================== - Kirk & The Option Alpha Team

Comments

1. Very nice video and the ebook is even better, thank you!! I actually have one question. For low IV and neutral view, it is writte pass the trade. Won't the butterfly (buy) be a great strategy there? Or why not...?
2. @Option Alpha Amateur question but if you're selling(naked) options, just single legged trades not spreads and the position starts to go against you, can you buy them back prior to them being ITM i.e suffering a small loss, and in turn avoiding being exercised against? Being a student I have limited capital ($3000), so I'm assuming that I'd have to get some sort of margin account(which I won't get) to engage in single legged short option trades in the event I were excercised against and need extra funds to actually buy/sell the shares depending on short put/call. Also is there any likelihood of me getting exercised against if the options are OTM. Cheers.  
3. Very clear and logical approach
4. In the slide in your video you mention the bullish trade for a low IV percentile is a debit spread, and the slide specifically mentions calls. But in the narrative, you say you went after "a debit put spread". Does it matter which is utilized? OF COURSE IT DOES! Buying a debit put spread is a decidedly bearish position.
5. Kirk, why did you choose an ITM Call (SBUX 65 Call) for the debit spread as opposed to an OTM one?