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.

[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.