Registered: Jun 2008
Posts: 1119

This is a great recent webinar with well-known options author Jeff Augen:

http://optionstribe.com/2012/08/rec...ons-jeff-augen/

He has a lot to say about trading weekly options, especially AAPL.

He likes to buy AAPL butterflies on the Thursday when they are released, then sell them on Friday or Monday.

The reason, he says, is the weekend (actually pre-weekend) price decay, that is actually mostly over by late Friday.

He comments that huge numbers of retail traders are selling the weekly options which is depressing their price.

He also likes to sell butterflies on the last day before expiration.

I know that some here are making similar trades.

Registered: Aug 2009
Posts: 620

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Quote from comintel:

This is a great recent webinar with well-known options author Jeff Augen:

http://optionstribe.com/2012/08/rec...ons-jeff-augen/

He has a lot to say about trading weekly options, especially AAPL.

He likes to buy AAPL butterflies on the Thursday when they are released, then sell them on Friday or Monday.

The reason, he says, is the weekend (actually pre-weekend) price decay, that is actually mostly over by late Friday.

He comments that huge numbers of retail traders are selling the weekly options which is depressing their price.

He also likes to sell butterflies on the last day before expiration.

I know that some here are making similar trades.

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Registered: Aug 2011
Posts: 392

From 8:10 I took a 35 second sound clip on Jeff Augen's views of selling straddles/strangles. Interesting video but they should have edited it.



Click the play button to listen

Registered: Jun 2008
Posts: 1119

Yes I was quite taken by how negative he is on selling strangles etc.

Registered: Jun 2006
Posts: 199

I dont know if i agree w him about his last piece detailing the goog downdraft where he says stock goes down when the public covers their covered call position then sells their long stock. I don't think that dynamic adequately explains the down draft. Think about it...he says the public buys their short calls then hits the stock bid to flatten out hence the down move . BUT the market maker selling the calls to public has to buy stock as a hedge so there would be underlying bids on that stock.

Registered: Mar 2007
Posts: 12701

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Quote from MushinSeeker:

I dont know if i agree w him about his last piece detailing the goog downdraft where he says stock goes down when the public covers their covered call position then sells their long stock. I don't think that dynamic adequately explains the down draft. Think about it...he says the public buys their short calls then hits the stock bid to flatten out hence the down move . BUT the market maker selling the calls to public has to buy stock as a hedge so there would be underlying bids on that stock.

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