Options Bootcamp 21: Playing Defense

Options Bootcamp 21: Playing Defense Basic Training: Playing defense with options: it’s very important right now! Basic Defense: Protective Puts (full overview in Ep. 3) How do you hedge your position with protective puts? Intermediate Defense: Put Spreads and Ratio Put Spreads. Covered Calls - (full overview in Ep. 4) How do you generate income with a modest hedging impact? The Power of the Collar: combining the put and the call into a beast of an option. This is the favorite defensive strategy of most financial advisors who use options. The pros/cons of repeatedly doing zero cost collars. Volatility Defense: VIX Options/Futures. The myth of VIX's perfect inverse correlation- there are problems with relying on volatility as your only hedge, i.e. black swans, days when VIX outperforms, etc. The pros/cons of direct defense vs. indirect defense. Mail Call: Hey recruits, what do you want to know? Question from Tina K. - When (if) should I consider volatility products as a hedge? Question from Mr_Zen - Can you explain the difference between iron condors and iron butterflies? Question from Alan O - What do the drill instructors think of the Minis so far? Are they worth exploring for basic options traders?