The Weekly Option
Episode 415 Option Trading Podcast February 20, 2026
The Weekly Option
•February 21, 2026•14 min
0
The Weekly Option•Feb 21, 2026
Why It Matters
Understanding that debit and credit spreads carry the same risk helps traders make more objective decisions and avoid bias toward one structure. The detailed trade reviews and new setups provide actionable insights for both novice and seasoned options traders, especially as February’s monthly options expire and March opportunities arise.
Key Takeaways
- •Debit and credit spreads share identical risk when margins equal
- •Cypher Mining covered call stays above breakeven despite price drop
- •Core Scientific cash‑secured put remains profitable, breakeven far out
- •New Scale Power debit spread may convert to iron condor
- •New trades aim 10‑30% returns using March expirations
Pulse Analysis
The weekly episode opens with a deep dive into risk inversion, challenging the common belief that debit spreads are inherently safer than credit spreads. Eric demonstrates that when a brokerage treats margin uniformly, the dollar amount at risk—whether you pay a premium or receive it—remains the same. This mathematical truth forces traders to focus on capital efficiency rather than the psychological comfort of paying versus receiving money, a nuance essential for disciplined options risk management.
The show then reviews four recent positions. A covered call on Cypher Mining stayed marginally above its breakeven point despite a $1.76 price decline, allowing the trade to remain viable without immediate adjustment. The cash‑secured put on Core Scientific stayed comfortably out‑of‑the‑money, preserving a solid 10% weekly return. Carnival Cruise’s short put spread continued to sit out‑of‑the‑money, while the New Scale Power debit spread slipped to at‑the‑money, prompting a potential conversion to an iron condor to improve probability of profit. These real‑world examples illustrate how dynamic adjustments and margin considerations shape outcomes.
Looking ahead, Eric outlines four new March‑expiration strategies targeting 10‑30% returns. A covered call on the 2X Long VIX Futures ETF seeks a 27% upside, while a cash‑secured put on Sellus Life Sciences offers a 10% yield. A credit spread on First Majestic Silver and a debit call spread on BitMine Immersion round out the lineup, each designed to capitalize on specific price expectations and volatility profiles. By aligning trade structures with market outlooks and capital constraints, the episode equips professional traders with actionable ideas for the coming week.
Episode Description
The Weekly Option trading podcast
Episode 415 February 20, 2026
Welcome to The Weekly Option, a weekly program that offers practical trades and discussion for beginners and professionals alike.
The topic of the week is the personal history.
In this week’s show, we will cover the trades from last week on Cipher Mining, Core Scientific Inc, Carnival Cruise Lines, and NuScale Power Corp.
And we discuss four new trades on the 2x Long VIX Futures ETF, SELLAS Life Sciences Group, First Majestic Silver Corp, and BitMine Immersion Technologies.
The equity markets managed to finish the week a bit higher than last week. The Dow Jones Industrial Average grew 125 points, closing at 49,625 points on Friday. The S&P 500 picked up 73 points, ending the week at 6,909 points.
It’s always great to hear from listeners. If you have any questions about the trades presented here or about your own positions, feel free to email me.
Email questions to me: eric@theweeklyoption.com
Visit our YouTube Channel for The Weekly Option.com.
PODCAST LINKS FOR EPISODE POST
Listen on iTunes: https://itunes.apple.com/us/podcast/the-weekly-option/id1375267155
Listen on YouTube Music: https://music.youtube.com/channel/UCTo2yTkZPhqvlE8PdZkyTZA
Listen on Spotify: https://open.spotify.com/show/6HoYh2XxVCWaidJP4dJiSD
Listen on Audible by Amazon: https://www.audible.com/podcast/The-Weekly-Option/B08K57QL6S?language=en_US
Listen on PodBean: https://www.podbean.com/podcast-detail/r5aam-6a884/The-Weekly-Option-Podcast
YouTube Channel: https://goo.gl/u7JKJd
Option Trading Basics: My Favorite Strategies: https://youtu.be/8UmPK5tuez0
How to Trade Stock Using Technical Analysis: https://youtu.be/wAATt0RpE0w
Technical Analysis Videos: https://www.youtube.com/channel/UCnpPLl3EB_RBC5kyrCnsHow
TradingView Stock Charts For Analysis: https://www.tradingview.com/gopro/?share_your_love=TraderEric
Show Notes
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