Options Boot Camp 359: The Death Knell for Pattern Day Trading?

HOST: Mark Longo, The Options Insider Media Group CO-HOST: Dan Passarelli, Market Taker Mentoring GUEST: Russell Rhoads, Indiana University Kelley School of Business In this episode, Mark, Dan and Russell dive into the topic of financial warrants. They explain the differences and similarities between warrants and listed options, highlighting how warrants can be a tool for companies to raise capital through unique, often dilutive instruments. They discuss how warrants, though not commonly used in the U.S., came into recent focus due to GameStop's issuance of warrants. Russell shares detailed information on the market for these warrants, their exercise mechanics, and provides advice for holders. The episode aims to educate listeners on trading and handling warrants, an aspect of options that might be less familiar to many traders.  

Host: Mark Longo, The Options Insider Media Group Co-Host: Dan Passarelli, Market Taker Mentoring   In this episode of Options Bootcamp, our hosts discuss a range of topics, starting with an exploration of iron condors and their various applications. The show also delves into the intricacies of the options market structure, including the limitations of siloed spread books and potential improvements like more frequent open interest updates. Listener questions lead to a discussion on scaling trading strategies for larger accounts, the use of payment for order flow, and approaches to backtesting options strategies. The episode wraps up with light-hearted speculation about Dan's mysterious middle name. 00:00 Introduction and Welcome 04:00 Listener Mail Call 06:51 Iron Condors and Trading Strategies 13:41 Crypto Trading and Market Structure 24:56 Concluding Thoughts and Farewell

Host: Mark Longo, The Options Insider Radio Network Co-Host: Dan Passarelli, Market Taker Mentoring   In this episode, Mark Longo and Dan Passarelli delve into various topics revolving around options trading. They primarily discuss the recent changes to the pattern day trading rules by FINRA, which could potentially lower the $25,000 threshold to a more flexible intraday margin rule. They also reflect on the performance of gold in comparison to the VIX as a gauge of market sentiment amidst fluctuating market conditions. Additionally, the hosts touch on the upcoming earnings season, sharing insights on expected company performances and the volatility trends observed.       

In this episode, hosts Mark Longo and Dan Passarelli dive into a mix of educational and entertaining topics. Dan shares spooky season thoughts and discusses the scariest options strategies and moments in his trading career. Listener questions cover topics like the best fear gauge between gold and VIX, the appropriateness of corporate earnings cycles, hedging long positions, and the possibility of a future episode on collars. They also entertain a uniquely intriguing question about foods associated with options trading, tying in Chicago's rich culinary culture.    01:08 Welcome to Options Bootcamp 04:59 Listener Mail Call 06:51 Market Sentiment and Fear Gauges 17:25 Scariest Option Strategies 22:48 Terrifying Trading Moments 26:11 Unexpected Financial Surprises 28:06 Food and Trading: An Unusual Connection 31:38 Listener Questions: Collars and More 39:15 Conclusion

In this episode of Options Bootcamp, Mark Longo and Dan Passarelli break down the different types of chooser options including European, American, Bermuda, asymmetric, forward start, compound, and even rainbow chooser options. They discuss the use cases for each type, such as in pharmaceuticals, commodity hedging, and trading around significant financial events. Finally, the hosts take listener questions and share career advice for aspiring professional traders.    00:39 Welcome to Options Bootcamp 04:43 Introduction to Exotic Options 05:27 Understanding Chooser Options 08:34 European Style Chooser Options 11:36 American Style Chooser Options 12:59 Bermuda Style Chooser Options 15:09 Asymmetric Chooser Options 16:44 Forward Start Chooser Options 17:48 Compound Chooser Options 18:02 Indecisive Chooser Options 19:22 The Rainbow Option Explained 21:22 Real-World Use Cases for Rainbow Options 24:03 Lookback Chooser Options 26:05 Listener Questions and Poll Results 27:51 Debate on Earnings Season Frequency 31:35 Becoming a Professional Trader 34:11 Conclusion 

In this episode, hosts Mark Longo and Dan Passarelli discuss different options strategies such as covered calls, cash secured puts, and the wheel strategy. They also touch on the growing interest in exotic options and the role of flex options in recent volume spikes. Other topics include the importance of technical indicators for covered calls, the role of various options exchanges, and the potential for gamified options trading education. Additionally, they address listener questions ranging from the uniqueness of the options market to the practicality of using specific brokers and discussing their personal experiences in trading.   00:39 Welcome to Options Boot Camp 01:00 Tasty Trade Platform Overview 03:41 Pro Trading Crate Giveaway 07:12 Mail Call: Listener Questions 08:02 Market Reactions to Fed Announcements 11:30 Options Trading Polls and Insights 16:13 Fantasy Football and Trading 18:15 Question of the Week 22:22 Best Indicator for Covered Calls 23:58 Exotic Options Discussion 25:51 Options Trading Video Games 30:19 Favorite Option Strategies 33:02 Choosing the Right Exchange 36:22 Volume and Market Noise 40:28 Conclusion and Final Thoughts  

In this episode, hosts Mark Longo and Dan Passarelli dive into the world of Asian options, a type of exotic option. They explain how these options differ from standard "vanilla" options by basing their payoff on the average price of an underlying asset over a specific period, rather than its price at a single expiration date. The hosts break down the two main types: fixed-strike and average-strike options, providing clear examples of how their payoffs are calculated. They also discuss the historical origins of the name "Asian options" in the Singaporean commodity markets. The episode highlights the primary use case for these options: reducing volatility and hedging against wild price swings, making them particularly useful for industries like commodities, energy, and foreign exchange. The show also includes the popular "Mail Call" segment, where the hosts answer a listener's question about options flow and market volume statistics for August. Time Stamps [0:00] Intro and episode overview [2:50] Introduction to Exotic Options [4:05] What are Asian Options? [7:00] Average-Strike Asian Options [10:15] Fixed-Strike Asian Options [14:00] Use Cases for Asian Options [17:30] Mail Call: The hosts open the mailbag to answer a listener question about options flow and market volume in Q3. [29:00] Final Thoughts and Conclusion

Join your hosts, Mark Longo and Dan Passarelli as they dive deep into the world of exotic options, tackling questions about their name, their role in the 2008 financial crisis, and whether they're just a marketing gimmick. They also tackle more fundamental questions on scaling into a trade and the practicality of making all options cash-settled. The episode concludes with a forward-looking discussion on how algorithmic and AI trading are reshaping the options market.     Timestamps [00:00:00] - Intro & Sponsor [00:07:00] - What Are Exotic Options? [00:10:00] - Exotic Options & The 2008 Crash [00:15:00] - Scaling into a Trade [00:20:00] - Cash-Settled Options [00:25:00] - Open Interest Updates [00:30:00] - The Rise of Algo & AI Trading [00:35:00] - Outro  

In this episode, our hosts Mark Longo and Dan Passarelli dive into listener questions and hot topics shaping the options market. They break down a recent VIX trade, discuss the fascinating and volatile world of a popular new options stock, and answer a question about the increasing prevalence of exotic "event markets" on brokerage platforms. Timestamps 4:21 Mailbag: A review of a recent VIX flash poll.  5:34 The final outcome of the VIX 25 calls. 7:18 OPEN stock volatility and listener trades. 9:53 Results of a flash poll on trading OPEN. 11:00 The question of the week: Are you comfortable buying and holding the SPX right now? 13:41 Market Taker Question of the Week: How special cash dividends can lead to strike price adjustments, using an example from Pilgrim's Pride. 16:47 Listener question on the possibility of exotic options on major brokerage platforms. 21:48 Listener question about the rise of "event markets" (football binaries) on brokerage platforms.