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The Option Alpha Podcast

140: Why Some Option Trades "Explode" In Your Face & What To Do About It

The Option Alpha Podcast

Kirk Du Plessis

Education, Options Trading, Trading, Investing, Stock Market, Business, Finance

4.81.2K Ratings

🗓️ 20 August 2018

⏱️ 29 minutes

🧾️ Download transcript

Summary

Show notes: http://optionalpha.com/show140 Have you ever gotten the feeling that some of your trades just end up exploding in your face and turn into "massive" losing positions? They just never seem to go the way you thought it would and always demand or steal your attention right? Well, there's likely a couple reasons why this happens and it gets back down to some of the most basic principles of options trading. In today's podcast, I'll walk through the psychology behind many of these "bad t...

Transcript

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0:00.0

You're listening to the Option Alpha Podcast from Option Alpha.com where we show you how to make

0:06.3

smarter trades learn how the stock market really works and generate consistent monthly

0:11.2

income. Now your host and head trader at option alpha.com, Kirk depluses.

0:17.0

Hey everyone, this is Kirkier again from Option're working every single week to make this the most popular investing podcast offered online because it's based on one thing and one thing only and that's helping you guys make smart trades.

0:31.0

So again, thank you so much for tuning in today on today's show.

0:34.2

We are going to be talking about why some option trades seem to explode in your face and what

0:40.5

you should do about it. And I really use this analogy of explode in your face because I think it's so fitting for what we're going to talk about today because some people get so wrapped up in these trades that are huge airfingers quotes, huge losers or that are completely going against them or

0:55.9

seems like the world is ending I mean you kind of interject whatever you want it's like

1:00.0

total dramatic effect of how a position is working against them or whatever the case is.

1:05.8

But I want to help you try to understand why that might be happening and then what we can do about it.

1:09.8

So kind of cause and then effect or what the symptom is and how we can

1:13.6

improve it what's the medication what's the the diagnosis so we're going to be

1:17.2

going through a couple of these things I think I've got about four or five

1:19.6

different things I want to kind of touch on here today but two quick stories and then I'll

1:23.9

describe and hopefully this analogy will work pretty well for describing what

1:28.1

I'm talking about here today so the first one is we actually just had a big barbecue

1:31.9

for my son and his baptism just

1:34.0

this past weekend so at the time that we released a show just this past weekend we

1:37.6

had a great baptism for my son and everyone was over for this huge family

1:41.6

barbecue and we have tons of people here and

1:43.6

thankfully the weather where I live actually cooperated because I felt like it's

1:47.2

been raining non-stop but it was actually a really nice day.

...

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