The Automated Trading Podcast by Advanced AutoTrades

Send us Fan Mail This episode presents a comprehensive, systematic methodology for selecting optimal strike prices for bull put spread options, asserting that correct strike choice is paramount for successful trading. The core of this logic is the use of delta , which represents the probability an option will expire worthless, with the hosts favouring the 0.50–0.60 delta zone for core income trade...

Send us Fan Mail This episode is an article providing a deep dive into the application of Artificial Intelligence (AI) in options trading as of 2025. The hosts examine where AI successfully adds value, such as in advanced pattern recognition, signal filtering, and adaptive risk modelling , stressing that AI acts primarily as a high-speed analytical assistant rather than a predictive tool. Converse...

Send us Fan Mail This episode is a financial guide explaining how options traders can proactively spot and prepare for IV Crush , a common phenomenon where option premiums rapidly decrease after a major event due to a collapse in implied volatility (IV). The hosts focus on two specific metrics, IV Rank and IV Percentile , which quantify whether the current IV is high or low relative to its histori...

Send us Fan Mail This episode provides an extensive guide to the Iron Condor strategy , a defined-risk options setup designed to generate profit when the market experiences low volatility and trades within a tight, sideways range. Authored by an institutional options trader, the guide meticulously explains that this strategy is constructed by combining a bull put spread and a bear call spread , al...

Send us Fan Mail This episode offers a detailed comparison of the term "credit spread" as it is used in two different financial markets: bonds and options trading. In the bond market, the credit spread measures the yield difference between a risky bond (like corporate debt) and a risk-free bond (such as a U.S. Treasury), thus reflecting perceived default risk and acting as a barometer of...

Send us Fan Mail This episode provides a detailed comparison between credit spreads and debit spreads , which are defined-risk options strategies used by traders, particularly on SPX and SPY indices. It explains that a credit spread involves receiving a net premium upfront and profits when the market remains stable or moves slowly, capitalising on theta (time decay). Conversely, a debit spread req...

Send us Fan Mail This episode provides an extensive guide to the risks associated with credit spreads , an options trading strategy often confused with being risk-free despite having defined potential losses. Authored by an institutional options trader, the text covers critical dangers such as Max Loss calculations , the specific threat of Assignment Risk in American-style options like SPY versus...

Send us Fan Mail This episode provides an ultimate guide to automated options trading for 2025, promoting services from Advanced AutoTrades built by an institutional veteran. It explains how automation works, detailing a four-step process from strategy selection to execution via bots, and champions defined-risk strategies like credit spreads and iron condors on highly liquid instruments like SPX a...

Send us Fan Mail This episode provides an extensive guide to credit spreads , an options trading strategy designed to generate consistent returns while defining maximum risk upfront . It explains that a credit spread involves selling one option and buying another at a different strike price to collect a net premium, which represents the maximum profit, with the maximum loss determined by the strik...

Send us Fan Mail This episode provides an extensive explanation of credit spreads , an income-generating options strategy defined by selling one option and buying another at a different strike price, thereby collecting a net premium. It details how these defined-risk strategies work, offering concrete examples such as the Bull Put Spread used on the SPX index, which the author claims has a high hi...

Send us Fan Mail This episode provides an educational overview concerning the differences between cash accounts and margin accounts for options trading. A cash account mandates that the customer must possess the full amount of funds for any security purchased, precluding the use of leverage. Conversely, a margin account permits the broker to loan the customer capital, using existing securities and...

Send us Fan Mail The episode provides an educational overview of the VIX , which is the ticker symbol for the CBOE Volatility Index and is frequently called the "Fear Index" by investors. This index functions by measuring the implied volatility of S&P 500 options , which helps in determining if option pricing is relatively expensive or cheap. The VIX reading, quoted in percentage poi...

Send us Fan Mail This episode provides eight key tips for options traders aiming to improve trade execution speed and pricing . The advice emphasises the importance of patience , suggesting that forcing trades is rarely beneficial. We also recommend using "odd" lot sizes for orders and "legging into" complex strategies by entering individual components separately. Further tips...

Send us Fan Mail This episode differentiates between historical volatility and implied volatility in options trading. Historical volatility quantifies past price fluctuations of a stock, often expressed as an annualised standard deviation of its movements over a specific timeframe, typically calculated using actual trading days. Conversely, implied volatility is a forward-looking measure, not base...

Send us Fan Mail This episode primarily explains option moneyness , categorising options as in-the-money (ITM) , out-of-the-money (OTM) , or at-the-money (ATM) based on the strike price's relationship to the underlying stock price. It clarifies how these classifications apply differently to call options and put options , offering examples to illustrate each type. Furthermore, the source diffe...

Send us Fan Mail This episode  explains how "Greeks" measure an option's sensitivity to market variables. These "Greeks" are Delta, Gamma, Theta, Vega, and Rho, each representing a specific influence on an option's price. Delta indicates price change based on underlying stock movement, while Gamma measures the rate of change in Delta. Theta quantifies the daily decay...

Send us Fan Mail This episode explores the concept of automated options trading , addressing common concerns about its safety and efficacy. It identifies key risks such as technical failures, market volatility, and strategy flaws, while also offering methods to mitigate these dangers , emphasising the importance of reliable brokers and defined-risk strategies. The hosts promote their "Weekly...

Send us Fan Mail This episode focuses on understanding option profit and loss (P&L) diagrams . These diagrams are visual representations that illustrate how an options strategy's profitability changes based on the underlying asset's price at expiration. The hosts explain how to interpret these graphs , identifying key elements like break-even points, maximum gain, and maximum loss ....

Send us Fan Mail This episode talks about options trading alerts. It details three distinct service tiers —each tailored to different trading styles, risk tolerances, and schedules, boasting verified historical performance and average annual returns . The hosts explain the criteria for a superior alert service , emphasising transparency, consistent results, and seamless broker integration for auto...

Send us Fan Mail This episode focuses on Tradier , a US-based brokerage firm specifically designed for automated options trading through its API-first approach . It highlights Tradier's low commissions and its compatibility with third-party signal services like "Global AutoTrading" to facilitate hands-free investing. The hosts promote their "Monthly Trend" service, which,...

Send us Fan Mail This episode explains "IV Crush" in options trading , a phenomenon where the implied volatility (IV) of an option sharply declines after a significant event, like an earnings announcement or Federal Reserve meeting. The hosts clarify that IV is the market's expectation of future price movement, and it inflates option prices before such events. However, once the even...

Send us Fan Mail This episode discusses the concept of max pain in options trading, specifically relating to the SPY ETF . It explains that max pain represents the strike price where the largest number of options will expire worthless, causing the most financial difficulty for option holders while benefiting sellers. The hosts argue that while not a perfect predictor, understanding max pain can be...

Send us Fan Mail This episode explains the fundamental differences between buying and selling options , outlining the rights of the buyer and the obligations of the seller for both call and put contracts . It clarifies how buyers pay a debit for a right and sellers receive a credit for an obligation , impacting potential profit and risk. The hosts also differentiate between trading with cash and t...

Send us Fan Mail This episode serves as an educational resource for those learning about options trading, specifically focusing on the components of an options contract . It highlights that there are five key elements to understand: the underlying stock , the expiration date , the strike price , the option type (call or put), and the premium paid or received. The hosts explain these parts through...

Send us Fan Mail This episode contrasts stock trading and options trading, highlighting the differences in their approaches and potential outcomes. While stock trading typically involves a single directional choice (buy or sell) and requires significant capital, the text explains that options trading offers more flexibility and potentially greater leverage. Crucially, options strategies allow trad...