In this episode of Options Boot Camp, your drill instructors Mark Longo and Dan Passarelli dive back into the trenches to tackle a recurring nightmare for retail traders: why "perfect" vertical spreads sometimes result in losses. Following up on a "horror story" from a previous episode involving Marvell (MRV), the team breaks down the mechanics of spread books, broker liquidations, and the hidden risks of trading around major events.

• The Marvell Meltdown: A deep dive into a listener's trade where a winning call vertical on MRV resulted in a loss due to after-hours volatility and broker liquidation.

• The Reality of Vertical Spreads: Why the P&L diagram is only half the story. We discuss why vertical spreads often perform worse than expected prior to expiration and the role theta plays in the final payoff.

• Legging vs. Spread Orders: When should you attempt to "leg out" of a spread? Dan and Mark discuss the risks of delta exposure when breaking apart a vertical in a fast-moving market.

• Broker Routing & PFOF: How Payment for Order Flow and specific broker "spread books" (like Robinhood's) can impact your execution quality, especially in illiquid names.

• Market Maker Psychology: What determines the width of a bid-ask spread? Dan explains how volatility risk and liquidity determine the "toll" you pay to enter and exit a trade.

• Mail Call: The team answers listener questions about avoiding spreads during earnings and the rise of prediction markets (binary betting).

• 00:00 – Introduction and The Quintuple Content Palooza

• 03:15 – Follow-up: The Marvell Vertical Spread Disaster

• 07:45 – The pros and cons of "Legging" out of a trade

• 12:20 – Tips for dealing with unresponsive brokers during liquidations

• 16:30 – Market Taker Question: What drives the Bid-Ask Spread?

• 21:10 – Prediction Markets: Is it a trade or a bet?

• 25:40 – Silver and Crypto: The Question of the Week

Special thanks to our sponsor: TastyTrade.com/podcasts

In this episode of Options Boot Camp, hosts Mark Longo and Dan Passarelli (Market Taker Mentoring) dive deep into the mechanics of the Wheel Strategy—one of the most popular frameworks for generating consistent options income. Whether you are selling cash-secured puts or managing covered calls, the "Wheel" is a powerful tool for any trader's playbook, but what happens when the market moves against you?

Mark and Dan break down the specific scenarios traders face when a trade goes south, offering a masterclass in position management and cost basis reduction.

• Managing Losing Trades: What to do when your initial put sale goes in-the-money.

• Stock Repair Strategies: How to use the "Repair Manual" to recover from underwater positions without adding more capital.

• Averaging Down vs. Rolling: The pros and cons of lowering your entry price in a declining market.

• The Importance of Objectives: Why a clear "exit plan" is the most critical part of the Wheel Strategy.

• Advanced Covered Calls: Strategic strikes for when you've been assigned the underlying stock.

In this vital Options Bootcamp episode, host Mark Longo from The Options Insider provides an in-depth tutorial on butterfly spread strategies alongside guest Brian Overby from OptionsPlaybook.com.

They explore both traditional and advanced butterfly strategies—including the Open Wing Butterfly (often known as a Broken Wing Butterfly) and the Intrinsic Value Butterfly—explaining their practical options trading applications and defined risk/reward benefits. This is essential options trading education for neutral, low-volatility markets.

Additionally, they address a listener's puzzling options scenario involving Marvell ($MRVL) stock and offer clear resolution strategies for similar trading challenges, emphasizing proper broker interaction and order management.