Peter Lusk

Peter Lusk

Peter B. Lusk is an instructor at the Options Institute, the educational arm of the Chicago Board Options Exchange. He teaches option courses for public and institutional traders and has contributed educational type articles to various financial publications. Peter has spoken to thousands of investors across North America the past few years including over 200 webinars for the CBOE and member firms on trading options. He can also be seen each week on CBOE-TV with his show, Strategy of the Week. In addition to his responsibilities at the Options Institute, Peter serves as an Instructor for the Options Industry Council – an organization representing the options industry in the U.S. Prior to working at the Options Institute, Peter was a highly successful market maker for many years on the floor of the CBOE trading equity options. He was also involved in options training for new market makers at Lakota Trading in Chicago. As a professional trader, Peter enjoys sharing his knowledge of proven option strategies and risk management at the Options Institute.

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Who Am I? – Quiz Review

OK class, it’s time to go over the options quiz that you took last week. We had good participation, and I sent CBOE hats to winners in California, Colorado, New Jersey, Illinois and the United Kingdom. 1)    I work 7 days a week. I’m like a sculptor chipping away at time premium every day. When […]






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‘Twas the Night Before Expiration – A Holiday Tale

‘Twas the night before expiration, when all through the floor Nothing was trading, not even a Condor My trades were placed electronically with care In hopes that a market maker would soon be there Gutsy traders all snuggled in their big brass beds While visions of arbitrage played out in their heads Eileen in her […]






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#Twitter and Other Internet IPO’s

IPO’s can generate as much excitement as a Hollywood movie premier but can sometimes disappoint too.  Not so with Twitter (TWTR).  So far it has proved to be much more than a bad Will Ferrell movie. But over time every stock has a story to tell and Twitter will too. Do you remember some of […]






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Who’s Hungry for Potbelly?

Chicago based sandwich maker Potbelly (PBPB) went public last Friday at $14 and is now trading $31 confirming investors hunger for restaurant chains.  (Noodles (NDLS) has more than doubled since its $18 IPO last June.)   Potbelly started out as an antique store on Lincoln Avenue in Chicago that sold sandwiches to help make ends […]






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Protecting a Diversified Portfolio

So what are you worried about?  If you’re a Cub fan you’re worried all the time!  That I can’t help you with because you should be worried.  But how about your $300,000 stock portfolio?  It’s been a nice run but now you’re thinking all good things got to come to an end.  For example, let’s […]






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AMZN Volatility Post Earnings

OK AMZN traders, hopefully you were on the right side of volatility. Yesterday, both calls and puts were on the expensive side in advance of the earnings release. Do you remember the February weekly ATM 270 straddle was trading about $25 bucks? Well today it closed at about $6.55 Volatility got CRUSHED!!! Amazon Volatility Index […]






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Amazon Earnings and Implied Volatility

As traders anxiously await Amazon (AMZN) earnings announcement after the close today implied volatility has made both call and puts rather expensive. Uncertainty of earnings along with supply and demand will do that to option prices. Amazon volatility index VXAZN here at CBOE is 48.75 up 4.11  The February weekly 270 straddle is trading around […]






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How Bad do You Want It?

The New Year has a way of bombarding us with so many swell ideas on self-improvement.  Like the mindless magazine in the checkout line at the grocery store boasting rippled abs in just 10 days. A shopper confidently beams while placing the magazine in the cart alongside the greasy chips, synthetic cheese dip and high […]






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The Tale of Two Traders

Traders tell their tales of risk and reward all the time. Of course some only tell you about the reward. It kind of reminds me of that Danny O’Keefe song where he sings “You forget about the losses, you exaggerate the wins.” I’ve got friends just like that.  In October, two friends of mine placed […]






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Where Are They Now?

Do you remember the guy in high school who never had a job but he did have that shiny new Camaro daddy bought him? And that kid drove around in that car with that cheerleader while I was biking to my part time job. Where are they now? Who cares.  Do you remember some of […]






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SPY: What Happened to My Dividend?

The S&P 500 ETF (SPY) recently went Ex-Dividend and a major firm neglected to exercise a sizable amount of In-The-Money calls to capture that dividend for its customers.  The SPY pit traders here at CBOE tell me that it is normal to see about 8% of the call volume go unexercised.  With this painful oversight […]






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Option Trading Terminology

A market maker who stood next to me in the pit for 10 years here at CBOE used to always say option trading is the closest thing to professional sports. With the NFL football season now underway I thought it would be a good time to review option terminology to see if his assessment is […]






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The Week Ahead

Facebook (FB) – FB ($19.15) becomes eligible for inclusion in the Nasdaq-100 Index on Saturday but it probably won’t happen until December when NASDAQ reviews its list of 100 components and makes whatever adjustments it deems appropriate. Could an inclusion give FB a much needed boost? Federal Reserve Chairman Ben Bernanke will be speaking in […]