Options Playbook Radio 192: Taking a LEAP with ISRG
Options Playbook Radio · The Options Insider Radio Network
January 18, 201816m 5s
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Show Notes
In this episode, we are looking beyond the Options Playbook and are selling a put credit spread to pay for a long call. You can find more on p. 76 of The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.
Specifically:
- Looking at Intuitive Surgical, Inc. (ISRG), which has been on a tear lately
- Earnings pushed the stock even higher
- Expensive underlying = expensive options
- Taking a long view using LEAPS
- Selecting strikes for the put spread
- Buying the at-the-money call
- How does the trade work?
- What is the cost?
- What is the risk?
- How to close it out?
- Alternatives to the trade as described
Do you have a question that you want answered on a future episode? Send them to Brian at [email protected], or to the Options Insider at [email protected].