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The Option Block

The leading program for active options traders
The Option Block

Description

The Option Block All-Star Panel breaks down the latest developments in the options market, analyzes unusual options activity, explains cutting-edge options strategies, answers listener questions and much more. Whether you're an active options trader or just getting started in the options market, The Option Block will keep you informed and entertained.

Categories

Business

Episodes

Option Block 797: TSLA Mysteries and Lyft Surprises Plus Adding Deltas

Apr 16, 2019 59:33

Description:

TRADING BLOCK

VIX : 12.70 - 0.6-points lower than last show.

Most active indices: VIX: 125k, SPY: 713k, SPX: 272k

Most active equity options: DIS, BAC, TSLA, AAPL, AMD, BABA, GE, NVDA, NFLX, WFC

Earnings Highlights:

Netflix (NFLX)

Walt Disney Company (DIS)

 

 

 

ODD BLOCK

Mystery put update in Tesla Inc (TSLA)

 

 

 

STRATEGY BLOCK

This week’s topic discusses applying technical analysis to option trading.

 

 

 

MAIL BLOCK

Question from Douglas Tilley - Hello!--Regarding long stock substitution:

1. With call options, are deltas additive?  ie. why are (2) 40-delta calls so much cheaper than (1) 80-delta call ?  This seems like buying equivalent total delta for about half the cost.

2. For more accurate stock substitution, do you ever use the technique of buying an ATM call while selling an ATM put ? (vs. buying calls for a desired total delta).

What are the pros and cons (or nuances) of the 2 methods?  I do notice that the 2nd method definitely requires more buying power, due to the short put. Thanks for all the education

 

 

 

AROUND THE BLOCK

This Week in the Market:

Apr 16 - Industrial Production

Apr 17 - International Trade, Beige Book

Apr 18 - Jobless Claims, Retail Sales, Business Inventories

Apr 19 - Housing Starts

 

Option Block 796: Mystery TSLA Puts and COTY Calls

Apr 12, 2019 01:01:23

Description:

TRADING BLOCK 

LYFT Options Update: Rumors of Uber IPO hitting stock and driving LYFT volume - 61k on the tape so far today.

Most active indices - VIX: 384k, SPY: 845k, SPX: 323k

Most active equity options - AAPL, TSLA, BAC, EBAY, BA, AMD, X, FB, NVDA, BBBY

TSLA, AMZN, AMD and AAPL - no surprises, often on the list of most traded.

 

 

 

ODD BLOCK

Mystery put update in Tesla Inc (TSLA)

Size put love in eBay Inc (EBAY)

Call write JetBlue Airways Corporation (JBLU)

Call love in Weight Watchers International Inc. (WTW)

 

 

 

 

MAIL BLOCK

The Broker Madness Final is upon us! Vote today!

TD Ameritrade vs tastyworks.

Question from Zack Maenpaa - Hi, long time listener, first time questioner. If you’ve covered it already can you point me to where in case I  have missed it. But what is going on at the $15 May (monthly) strike in COTY. Daily size opening transactions for two weeks now? Trying to figure out what they are trying to do here. Sorry if you receive this message more than once. I kept clicking submit on the website and nothing happens.  Many thanks. There is the share purchase offer, but thats at $11.65, not way up at the 15 strike.

Question from a Fidelity Customer - I’m thinking about selling covered calls on a stock that my father left to me and I don’t want to sell the shares, is this a good way to get some extra income?

 

 

 

AROUND THE BLOCK

Bank Earning coming up, JPM and WFC tomorrow and BAC next week. Macro headlines: China, Trade tariffs and Euro tariffs.

This week in the market:

Apr 12 - Import and Export Prices

Apr 13 - Consumer Sentiment

Option Block 795: OTM Gamma, New TSLA Puts, VIX and More

Apr 9, 2019 01:02:12

Description:

 

TRADING BLOCK

VIX - 13.3

Boeing cutting production, down around 4%.

TSLA - Jefferies cuts price target to $400 from $450, up 1%.

LYFT options update - $72.75, 15k today, ADV: 64k, Total 86k (54k Calls, 32k Puts)

Most active equity options - GE, AAPL, SNAP, BA, TSLA, AMD, BABA, FB, NVDA, CVE

 

 

 

ODD BLOCK

Call love in (BP)

Upside call roll in Lowes (LOW)

Upside call overwrite in AGNC Investment Corp (AGNC)

 

 

 

STRATEGY BLOCK

Uncle Mike Tosaw discusses out of the money gamma

 

 

 

MAIL BLOCK

Broker Madness!!! Final 4 voting continues until the end of today.

Question from Fidelity Customers - What should I know before trading options on the VIX/volatility products?

 

 

 

AROUND THE BLOCK

This week in the market

Apr 9: JOLTS

Apr 10: CPI, FOMC Minutes

Apr 11: Jobless Claims, PPI

Apr 12: Import and Export Prices

Apr 13: Consumer Sentiment

Option Block 794: LYFT Options plus TSLA, AMZN, VIX and more

Apr 5, 2019 01:01:41

Description:

TRADING BLOCK

LYFT options trading today

Tesla off 64 handle on the day

 

 

 

ODD BLOCK

Call love in BorgWarner Inc. (BWA)

Call love in Dana Inc (DAN) - review from 11/8

Call love in Broadridge Financial Solutions, Inc. (BR)

 

 

MAIL BLOCK

Broker Madness Round 3 - The Final Four!

TD Ameritrade vs. Fidelity Investments

Interactive Brokers vs. tasty works

Question from Joe and Linda - My question is for Trey: Being that you are the “Chart” guy...  I have had some success with The ADX, 50/200 SMA and Bollinger Bands. My question relates to time frame for those. Should I set the time for the option? Meaning, should I set those for 2-week view if I plan to sell a credit spread 2 weeks out, or keep it 6 months, 1 year, etc? I have been using the straddle for those time frames but was looking for another point of ref. Thanks.

 

 

AROUND THE BLOCK

Option Block 793: Getting a LYFT on April Fools

Apr 2, 2019 01:02:08

Description:

TRADING BLOCK

Lyft options coming on Thursday. Cboe Global Markets Plans Listing of Options on Lyft, Inc. (LYFT)

Most active indices - VIX: 181k, SPY: 1.4M, SPX:  662k

Most active equity options - AAPL, BAC, AMD, MSFT, JD, COTY, FB, TSLA, F, BA

Earnings:

Tuesday - Gamestop

Thursday - Duluth Trading Company

 

 

 

ODD BLOCK

Options palooza in SPDR S&P Oil & Gas (XOP) - review from 2/11

Opening put love in California Resources Corp (CRC) - review from 11/26

Opening call love in Analog Devices, Inc. (ADI) - review from 11/26

 

 

 

STRATEGY BLOCK

Colin Songer discusses three different ways a trader might use delta.

 

 

 

AROUND THE BLOCK

Round 2 of Broker Madness continues!! Vote today!

Option Block 792: The Options Mason-Dixon Line

Mar 29, 2019 01:00:09

Description:

TRADING BLOCK

Most active indices - VIX: 119k, SPY: 1M, SPX:  444k

Most active equity options - AAPL, FB, AMD, LULU, COTY TSLA BAC, NVDA, GE, AMZN

Earnings:

Monday - Winnebago Industries, Redhat

Tuesday - Cronos Group (marijuana stock)

Wednesday - Lennar, Lululemon

 

 

 

ODD BLOCK

Put love in (PAH) - review from 1/24

Opening Feb call love in (LEN) - review from 12/6

Size call love in Knight-Swift Transportation (KNX)

 

 

 

MAIL BLOCK

Broker Madness continues!!

Round 2: TD Ameritrade vs Schwab, Fidelity Investments vs TradeStation, Ally Invest vs Interactive Brokers, E*Trade vs tastyworks.

Cast your vote today!

 

 

 

AROUND THE BLOCK

This Week in the Market:

Mar 29 - Personal Income, New Home Sales, Consumer Sentiment

Option Block 791: Apple Credit Cards and Credit Spreads

Mar 26, 2019 01:02:07

Description:

TRADING BLOCK

VIX - 16.5, up 3-points from last show

Earnings:

Monday - Winnebago Industries, Redhat

Tuesday - Cronos Group (marijuana stock)

Wednesday - Lennar, Lululemon

Wall Street set for lower open. Apple's 'Show Time' event.

 

 

 

 

ODD BLOCK

Call love in PagSeguro Digital Ltd (PAGS)

Call overwrite in Viacom, Inc. Class B(VIAB)

Lits puts in Newmark Group Inc (NMRK)

 

 

 

STRATEGY BLOCK

Trey Jarrell discusses credit spreads.

 

 

 

MAIL BLOCK

It’s Broker Madness time!!! Round One continues.

 

 

 

AROUND THE BLOCK

This Week in the Market

Mar 26: Housing Starts, Consumer Confidence

Mar 27: International Trade

Mar 28: Jobless Claims, GDP

Mar 29: Personal Income, New Home Sales, Consumer Sentiment

Option Block 790: Bitter Apple Puts

Mar 22, 2019 01:03:30

Description:

TRADING BLOCK

Most active indices: VIX - 110k, SPY - 1.3M, SPX -  363k

Most active equity options: AAPL, MU, AMD, BAC, NVDA, FB, NFLX, AMZN, COTY, DIS

Earnings:

Monday - Tilray (TLRY), Lumber Liquidators (LL), Overstock.com (OSTK)

Tuesday - Michaels (MIK), China Telecom (CHA), FedEx (FDX)

Wednesday - General Mills (GIS), Guess (GES), Micron Technology (MU), Williams-Sonoma (WSM)

Thursday - Nike (NKE)

Friday - Hibbett Sports (HIBB), Tiffany & Co. (TIF)

 

 

 

ODD BLOCK

Put love in Nordstrom, Inc. (JWN)

Lits puts in Apple Inc. (AAPL)

Put love in Barclays PLC (BCS)

 

 

 

MAIL BLOCK

It’s Broker Madness time!!! Vote for your favorite at theoptionsinsider.com

Match-ups this round: TD Ameritrade vs. SogoTrade, Schwab vs. LightSpeed Trading, Fidelity Investments vs. Merrill Edge, TradeStation vs. Trading Block, Ally Invest vs. Firstrade, Interactive Brokers vs. TradeHawk by Tradier, E*Trade vs. Robin Hood, eOptions vs. Tastyworks

Question from JDog - Why don’t you guys talk about unusual index activity?

Question from Bob Lasy - What would you say is the #1 go-to options strategy? Is it just buying a call or is it something more elaborate?

 

 

 

AROUND THE BLOCK

This Week in the Market

Mar 22: Existing Home Sales, Treasury Budget

Option Block 789: Let the Madness Begin

Mar 19, 2019 01:00:01

Description:

TRADING BLOCK

A fairly quiet day in the market.

Most active indices - VIX: 329k, SPY: 1.2M, SPX: 500k

Most active equity options - AAPL, COTY, FB, BAC, TSLA, GE, BA, AMZN, NFLX, ACB

Earnings:

Monday - Tilray (TLRY), Lumber Liquidators (LL), Overstock.com (OSTK)

Tuesday - Michaels (MIK), China Telecom (CHA), FedEx (FDX)

Wednesday - General Mills (GIS), Guess (GES), Micron Technology (MU), Williams-Sonoma (WSM)

Thursday - Nike (NKE)

Friday - Hibbett Sports (HIBB), Tiffany & Co. (TIF)

 

 

 

ODD BLOCK

Call overwrite in Boston Scientific Corporation (BSX)

More call overwriting in USA Technologies, Inc (USAT) 

Call love in Fidelity National Information Services Inc (FIS)

 

 

 

 

STRATEGY BLOCK

This week Trey Jarrell discusses portfolio hedging.

 

 

 

MAIL BLOCK

March Madness is back! Vote for your favorite options firm today!

 

 

 

AROUND THE BLOCK

This Week in the Market:

Mar 18 - Housing Market Index

Mar 19 - Factory Orders

Mar 20 - FOMC Meeting

Mar 21 - Jobless Claims, Fed Balance Sheet

Mar 22 - Existing Home Sales, Treasury Budget

Option Block 788: Selling Supermodel Calls

Mar 15, 2019 01:05:45

Description:

Option Block 787: A New Era For The Option Block

Mar 11, 2019 58:01

Description:

TRADING BLOCK

Co-Host: Trey Jarrell, Fidelity Trading Strategy Desk

Most active indices: VIX - 224k, SPY - 1.06M, SPX: 432k

Most active equity options: LLY, AAPL, BA, FB, ELAN, GE, NIO, AMD, NVDA, TSLA

Boeing shares tumble 9% after deadly crash of popular 737 jet.

 

 

 

 

ODD BLOCK

Call activity in QuinStreet Inc (QNST) - from Feb 7

Harvesting risk premium in Plains GP Holdings LP(PAGP) - from Feb 4

More risk premium harvesting in Canadian Pacific Railway Ltd (CP) - from Feb 4

 

 

 

STRATEGY BLOCK

Uncle Mike Tosaw discusses the cover call strategy.

 

 

 

MAIL BLOCK

#QOTW: Everyone in our audience thought 2019's #options volume would eclipse 2018's record volume. But, through February, ADV is down nearly 19% from last year. 2019 is still young so we thought we'd take your pulse again  - will 2019 beat 2018's record  5.1B #options contracts?

69% - Yes

31% - No

Question from Fidelity Client - As an options seller, is it better to close out of my options positions early or let them expire worthless?

 

 

 

 

AROUND THE BLOCK

This Week in the Market:

Mar 11 - Retail Sales

Mar 12 - CPI

Mar 13 - Durable Goods, PPI

Mar 14 - Jobless Claims, Import and Export Prices

Mar 15 - Industrial Production, Consumer Sentiment

Option Block 786: Europeans Make VIX Slidey and Weak

Mar 8, 2019 57:56

Description:

TRADING BLOCK

Most active indices:

VIX - 352k, SPY - 1.65M, SPX - 567k

Most active equity options: LLY, NIO, AAPL, FB, GE, BAC, TSLA, AMD, BAB, MSFT

OCC February volume down 25.9% after strong 2018

 

 

ODD BLOCK

Put selling in Kraft Heinz Co (KHC)

Puts trading in General Electric Company (GE)

More puts trading in Kroger Co (KR)

 

 

 

MAIL BLOCK

#QOTW: Everyone in our audience thought 2019's #options volume would eclipse 2018's record volume. But, through February, ADV is down nearly 19% from last year. 2019 is still young so we thought we'd take your pulse again  - will 2019 beat 2018's record  5.1B #options contracts?

- Yes

- No

Question from Tosaw Client - I have a client and listener who asked me an interesting question we can talk about on the show. Why is a call calendar (both above the price of the underlying) more expensive than a put calendar on GOOGL and CRM? This could be a really good discussion.

 

 

 

AROUND THE BLOCK

This Week in the Market:

Mar 8 - Unemployment

Option Block 785: Time to Take About Premiums

Mar 5, 2019 59:36

Description:

TRADING BLOCK

Most active indices:

VIX - 599k, SPY - 1.67M, SPX - 708k

Uber/Lyft drivers may be able to participate in IPO

 

 

 

ODD BLOCK

Call love in (BUD)

Call overwrite in Workday Inc (WDAY)

Call love in SandRidge Energy Inc. (SD)

 

 

 

STRATEGY BLOCK

Uncle Mike Tosaw discuses how trading based on a breakout can be beneficial to risk management.

 

 

 

 

MAIL BLOCK

#QOTW: We'll keep it simple to wind down the week. What is your go-to #options strategy right now? Don't see your fav on the list? Reply/DM with your suggestions.

49% - Long Call/Put/Vertical

14% - Short Call/Put/Vertical

20% - Fly/Iron Fly/Condor

17% - Calendar/Diagonal

Question from Holscreen - Is it safe to say that a large amount of the options business is devoted to paying for puts?

Question from Dana Mac - I’ve heard a lot of talk about contract numbers but how much dollar value is actually transacted in the options market?

 

 

AROUND THE BLOCK

This Week in the Market

Mar 4: Construction Spending

Mar 5: New Home Sales, Treasury Budget

Mar 6: International Trade

Mar 7: Jobless Claims, Productivity and Costs

Mar 8: Unemployment

Option Block 784: Geopolitical Risk vs. VIX, Plus Crazy GE Puts

Mar 1, 2019 55:21

Description:

TRADING BLOCK

Most active indices: VIX - 138k, SPY - 800k, SPX:477k

Most active active equity options: GE, JD, SQ, AAPL, TSLA, CELG, NIO, LLY, BAC, BMY

Earnings:

Monday - Etsy, Shake Shack

Tuesday - Home Depot, Macy’s

Wednesday - Lowe’s, Best Buy, Square, Hewlett Packard, Box, Fitbit

Thursday - Nordstrom, JcPenney, Gap, Dell, Crocs

Friday - Foot Locker

 

 

 

ODD BLOCK

Call love in Dell Technologies Inc (DELL)

Call overwrite in Fitbit Inc (FIT)

Call overwrite plus puts in General Electric Company (GE)

 

 

 

MAIL BLOCK

#QOTW: We'll keep it simple to wind down the week. What is your go-to #options strategy right now? Don't see your fav on the list? Reply/DM with your suggestions.

- Long Call/Put/Vertical

- Short Call/Put/Vertical

- Fly/Iron Fly/Condor

- Calendar/Diagonal

Question from Ben K. - You guys were talking about getting your short spy calls called away on a recent episode. Is that something that occurs often and I should be concerned about it?

 

 

 

AROUND THE BLOCK

Option Block 783: Fighting the Flu and Volatility

Feb 26, 2019 57:40

Description:

TRADING BLOCK

Most active indices: VIX - 968k, SPY - 1.8M, SPX - 670k

Most active equity options: GE, AAPL, AMD, BAB, NIO, JD, TSLA, BAC, FB, NFLX

Earnings this week

Monday - (after the bell) Etsy, Shake Shack

Tuesday - Home Depot, Macy’s

Wednesday - Lowe’s, Best Buy, Square, Hewlett Packard, Box, Fitbit

Thursday - Nordstrom, JcPenney, Gap, Dell, Crocs

Friday - Foot Locker

 

 

 

ODD BLOCK

Call review from 2/7 in Mohawk Industries, Inc. (MHK)

Call palooza from 2/4 in Mattel Inc (MAT)

 

 

 

STRATEGY BLOCK

Uncle Mike Tosaw discusses using options with an IRA

 

 

 

MAIL BLOCK

5-Star Review from Jake Luttrell - Great content. Thank you

Question from Leg77 - MIAX making it official with 16 exchanges. What do you guys think about more players entering the options game?

 

 

 

AROUND THE BLOCK

Option Block 782: Profitable Puts, Death Benefits and More

Feb 22, 2019 01:03:30

Description:

TRADING BLOCK

More red on the street today.

VIX 14.75 - UP .75

Trader are focusing on FANG through Nasdaq futures - http://openmarkets.cmegroup.com/14669/traders-are-focusing-on-fang-through-futures

 

 

 

 

ODD BLOCK

Put review from 2/7 in (KAR)

Calls trade in (AGI)

Call sale in (PGR)

 

 

 

STRATEGY BLOCK

Uncle Mike Tosaw discusses his experience defending a client using the law.

 

 

 

MAIL BLOCK

Comment from Optionsgame: Translated from French: You should follow @Options. It's a good podcasts that will give you ideas.

Comment from Chris Imming: Maybe it is time to question the assumption about the accuracy of analysts estimates. Let's Make Analysts Great Again

Comment from Neil Wales - You should have another choice. Have no idea how to trader these things yet.

 

 

 

AROUND THE BLOCK

Best Of The Option Block: Back To The Beginning

Feb 18, 2019 01:04:15

Description:

Best Of The Option Block: Back To The Beginning

The markets are closed for President's day so the All-Star Panel gets a day off. But that doesn't mean you don't get a show! Join us for a trip down memory lane to the very first "sneak preview" episode of The Option Block from September 2010. Enjoy!

Option Block 781: Drinking a Stiff VIX and Playing Fortnite

Feb 15, 2019 01:00:09

Description:

TRADING BLOCK

Another mixed day of the street.

EA bouncing back after Fortnite crash and Apex rally.

Earning Highlights this Week:

Monday - Aurora Cannabis (ACB)

Tuesday - Activision Blizzard

Wednesday - Cisco

Thursday - Nvidia, The Coca-Cola Company, CME Group, Cannabis Growth (CGC), Applied Materials

Friday - PepsiCo

 

 

 

ODD BLOCK

Near-term ITM call love in Electronic Arts Inc (EA)

Call love in CBS Corporation Common Stock (CBS)

More paper trading in Centurylink Inc (CTL)

 

 

 

MAIL BLOCK
#QOTW - $VXX is dead! Long Live $VXXB! There's a (somewhat) new kid on the #Volatility trading block. Are you trading $VXXB #options yet? If not, how are you getting your #Volatility fix these days? $VIX $TVIX $SVXY

- Yes: Jumped into $VXXB

- No: Spreads are too wide

- No: Prefer $TVIX, etc

- No: Prefer $VIX #options

Question from Dave B. - Hi, I have a question about what is the best strategy to use for my trading system. I typically am only right on about three or four trades out of every 10 with long stock. The trades that I am wrong on, I take a small loss - somewhere between 5 to 10% but only 1-2% of the total capital as I typically take 10% positions. The trades that I am right on, I typically make 50% up to 200% over a 3 to 12 month period. I want to find an options strategy to increase returns via leverage, but keep total portfolio risk per trade about the same. Would DITM calls or spreads make sense to you?  Or is there another strategy I could (should) consider. Thank you! Dave B. Sent from my iPhone

Question from LLAZ - What do you think of call verticals in $USO here? Maybe 3-month 5 or 10% otm? Worth financing with a put?

Question from DaQuinta - I've been lured in by the ongoing selloff in crude oil and I'm thinking about setting up a longer-term stock replacement strategy in the USO ETF. I have a couple of questions:

A.) With $USO dropping below $11 is it even worth doing or should I just buy the shares instead? Is there a certain threshold where stock replacement stops making sense?

B.) My proposed construction is an almost six-month strategy with July 8 Calls for $3.10. So my outlay for 100 shares is $3100 versus $10,800.

C. Is it even worth selling a Jan 11.5 call and limiting all of my upside just to collect $.15 or should I keep it open from here?

 

 

 

AROUND THE BLOCK

This Week’s Economic Reports

Feb 15: Import and Export Prices, Industrial Production, Business Inventories, Consumer Sentiment

Option Block 780: XOP Calls, TSLA Puts and Bison Balls

Feb 11, 2019 58:55

Description:

TRADING BLOCK

Earnings Highlights this Week:

Monday - Aurora Cannabis (ACB)

Tuesday - Activision Blizzard

Wednesday - Cisco

Thursday - Nvidia, The Coca-Cola Company, CME Group, Cannabis Growth (CGC), Applied Materials

Friday - PepsiCo

Pot, soda and videogame earnings are on Wall Street’s to-do list - https://www.marketwatch.com/story/weed-soda-and-videogames-are-on-wall-streets-to-do-list-2019-02-09

 

 

ODD BLOCK

Size paper trading in SPDR S&P Oil & Gas Explore & Prod. (XOP)

Put palooza in Centurylink Inc (CTL)

Call palooza in Sangamo Therapeutics Inc (SGMO)

 

 

STRATEGY BLOCK

Uncle Mike Tosaw discusses the dangers of over trading.

 

 

MAIL BLOCK
#QOTW - $VXX is dead! Long Live $VXXB! There's a (somewhat) new kid on the #Volatility trading block. Are you trading $VXXB #options yet? If not, how are you getting your #Volatility fix these days? $VIX $TVIX $SVXY

- Yes. Jumped into $VXXB

- No. Spreads are too wide

- No. Prefer $TVIX, etc

- No. Prefer $VIX #options

Question from JVacx - Whatever happened to the $TSLA 50 put holders? Did they close out? Did they roll? Are they still slinging puts?

 

 

AROUND THE BLOCK

This Week’s Economic Reports

Feb 12: JOLTS

Feb 13: CPI

Feb 14: PPI, Jobless Claims

Feb 15: Retail Sales, Import and Export Prices, Industrial Production, Business Inventories, Consumer Sentiment

Option Block 779: Putting a Smackdown on Earnings

Feb 8, 2019 58:00

Description:

TRADING BLOCK

More Earnings Highlights This Week:

Monday - Clorox, Sysco

Tuesday - Walt Disney Company, Snap Inc., BP, TakeTwo, Electronic Arts, Viacom,

Wednesday - GM, Lilly, Spotify

Thursday - Twitter, WWE, Mattel, Grubhub

Friday - Cboe, Exelon, Hasbro

 

 

ODD BLOCK

Upside calls in Mohawk Industries, Inc. (MHK)

Calls trade in QuinStreet Inc (QNST)

Puts trade in KAR Auction Services Inc (KAR)

 

 

MAIL BLOCK
#QOTW - With everyone still shaking off #SuperBowl haze, let's start the week by applying your trading mindset to next season. If you had to buy a call on one team to make it into next year's big game - which team are you buying? Feeling another team - let us know below.

- Patriots

- Rams

- Bears (legally obligated)

- Saints

Question from T Mal - Thoughts on the best options trading platform if most don’t do it right?

 

 

AROUND THE BLOCK

Option Block 778: Volume Wars, Risk Reversals and GOOGL

Feb 4, 2019 59:36

Description:

TRADING BLOCK

Are we out of correction? You betcha! 

OCC January volume down 11.9% after record-breaking 2018

Earnings Highlights this week:

Monday - Clorox, Sysco

Tuesday - Walt Disney Company, Snap Inc., BP, ADM, Electronic Arts, Viacom,

Wednesday - GM, Lilly, Spotify

Thursday - Twitter, WWE, Mattel

Friday - Cboe, Exelon, Hasbro

 

 

 

ODD BLOCK

Harvesting the risk premium in Plains GP Holdings LP (PAGP)

Call palooza in Mattel, Inc. (MAT)

Harvesting more risk premium in Canadian Pacific Railway Ltd (CP)

 

 

 

 

STRATEGY BLOCK

Uncle Mike Tosaw discusses adjustments to a bullish butterfly and “line-in-the-sand” trades.

 

 

MAIL BLOCK
#QOTW - With everyone still shaking off #SuperBowl haze, let's start the week by applying your trading mindset to next season. If you had to buy a call on one team to make it into next year's big game - which team are you buying? Feeling another team - let us know below.

- Patriots
- Rams
- Bears (legally obligated)
- Saints

 

 

AROUND THE BLOCK

Option Block 777: Earnings Options Palooza - AAPL, TSLA, FB and More

Feb 1, 2019 01:01:37

Description:

TRADING BLOCK

Apple earnings: Did they do the right thing by pre-announcing the bad earnings?
Earnings Highlights:

Monday - Caterpillar (before bell), Whirlpool (after bell)

Tuesday - AMD, Apple, eBay, Harley-Davidson, Lockheed Martin, Pfizer, Verizon, 3M

Wednesday - Alibaba, AT&T, Boeing, Facebook, McDonalds, Microsoft, PayPal, Tesla, Visa

Thursday - Amazon, GE, MasterCard, Sprint, UPS

Friday - Chevron, ExxonMobil, Honeywell, Sony

 

 

ODD BLOCK

Opening call love in Dropbox Inc (DBX)

Opening line-in-the-sand puts in General Electric Company (GE)

Below bid puts in Tallgrass Energy LP (TGE)

 

 

MAIL BLOCK

#QOTW: It's that time again - #EarningsSeason! This week is a hot one! Which of the big #Tech names reporting are you most excited to trade in your #options account? Did we leave out your favorite? Let us know below.

- $AMZN

- $FB

- $AAPL

- $MSFT
Question from Jarryd Smith - I have a question for the podcast that, as a long-suffering Bills fan, I hope a long-suffering Bill can answer. I wouldn't turn down the greasy meatball, though. What is meant by 'the tent'? For example, stop the trade when it exits 'the tent'. Let's use an ATM Butterfly. Is it the ending 'tent', when at the end of the trade it would a max-loss? Or the end of the trade that would still be a profit? Or something else? For example, if I had a 100/150/200 ATM Butterfly on for $25, would I exit if it hit 100 or 200? Or 125/175? Or something else? Thanks!

Comment from David Lincoln - $NVDA and although it is not a tech stock I am still on that $TLRY kick....
Comment from FContangotrader - Check out $AAPL OI 215 and 210 put strikes

Comment from J3dingle - I'm going to leave a bad review for your pronunciation (Vale)!

Question from AllOrNothingRookieJan - $FB bought 2700 shares yesterday before ER......do I hold or lock in some profit guys?????...I’m thinking of moving it all over to amazon and seeing if I’m still lucky….I wish I could do Options but I don’t know enough and heard I can lose all my money?

 

 

AROUND THE BLOCK

Economic Reports This Week -

Feb 1: Unemployment, Construction Spending, Consumer Sentiment

 

Option Block 776: NVDA and CAT Driving Volatility

Jan 28, 2019 01:00:53

Description:

TRADING BLOCK

Caterpillar missed its market expectations

NVDA off 15%
VALE S.A. estimated to report earnings on Feb 26

Earnings Highlights:

Tuesday - AMD, Apple, eBay, Harley-Davidson, Lockheed Martin, Pfizer, Verizon, 3M

Wednesday - Alibaba, AT&T, Boeing, Facebook, McDonalds, Microsoft, PayPal, Tesla, Visa

Thursday - Amazon, GE, MasterCard, Sprint, UPS

Friday - Chevron, ExxonMobil, Honeywell, Sony

 

 

ODD BLOCK

Put love in Digital RLTY (DLR)

Harvesting premium in Yum China Holdings Inc (YUMC)

Harvesting 1-year premium in Iron Mountain Inc (IRM)

 

 

 

STRATEGY BLOCK

Uncle Mike Tosaw discusses options buying power

 

 

MAIL BLOCK

#QOTW: It's that time again - #EarningsSeason! This week is a hot one! Which of the big #Tech names reporting are you most excited to trade in your #options account? Did we leave out your favorite? Let us know below. $AMZN $FB $AAPL $MSFT

- $AMZN

- $FB

- $AAPL

- $MSFT

 

 

AROUND THE BLOCK

This Week’s Economic Reports

Jan 29: International Trade, Consumer Confidence

Jan 30: GDP, FOMC Meeting

Jan 31: Jobless Claims

Feb 1: Unemployment, Construction Spending, Consumer Sentiment

The Option Block 775: Whatever Happened To The Avon Lady

Jan 25, 2019 01:00:19

Description:

In this episode, Mark, Uncle Mike and the Rock Lobster discuss:

Trading Block

LUV, JBLU, XLNX, INTC Earnings VIX AAPL Today's most active options and more..

Odd Block

Unusual options activity in

PAH AVP SPWR

Strategy Block

Uncle Mike talks stock replacement strategies. 

Mail Block

Your 5,4 and 1 star Itunes reviews. 

Around the Block

Anything but macro...

The Option Block 774: Time to Dance Once again

Jan 15, 2019 58:13

Description:

 

The Option Block 774: Time to Dance Once again

HOST: MARK LONGO, THE OPTIONS INSIDER CO-HOST: ANDREW GIOVINAZZI/MARK SEBASTIAN, OPTION PIT CO-HOST: MIKE TOSAW, ST. CHARLES WEALTH MANAGEMENT

Trading Block

We discuss AAPL, VIX, SPY and more

Odd Block

Today's tickers:

TRU SIG KEY

Strategy Block

How to manage a covered call portfolio.

Mail Block

You guys have puts and stocks on the brain this week.

Around the Block

Looking ahead to earnings in GS, BAC, BNY, JPM, NFLX and more...

 

The Option Block 773: Getting Gossipy Live With The Rock Lobster

Jan 11, 2019 54:47

Description:

The Option Block 773: Getting Gossipy Live With The Rock Lobster

In this episode Mark is joined live in the studio by the Greasy Meatball AND the Rock Lobster (along with Uncle Mike beaming in from St. Charles). Gossipy madness ensues...

The Option Block 772 - Still A Market For Crazy People

Jan 8, 2019 56:40

Description:

The Option Block 772 - Still A Market For Crazy People

TSLA, AAPL, AMZN all in the news.
VIX still eerily flat. What were the Top 10 OB Episodes of 2018? Tune in to find out.

Odd Block

Today we review the following unusual activity:

DAN call love EXEL call love CSOD call love

Strategy Block

Uncle Mike's advice - in a nutshell Stay Vertical

Mail Block

Gauging your thoughts about AAPL at these levels Answering your questions about the mystery window after the close to exercise options on expiration.

Option Block 771: Kicking Off The New Year With Volatility

Jan 4, 2019 01:01:28

Description:

TRADING BLOCK

VIX: 207k, SPY: 1.7M, SPX: 694k, QQQ: 476k

MVP of the Year:

We've got quite the horse race now to see who will be crowned the most valuable company by the end of the year.

Amazon was briefly number one today, but closed in the second spot. Now we have:

$MSFT at 860.43 billion market cap. - 779.2B on 12/31

$AAPL at 877.04 billion market cap. -  Now 748.5B on 12/31

$AMZN at 866.63 billion market cap. - 734B on 12/31

 

 

ODD BLOCK

Put love in Avis Budget Group Inc. (CAR)

Call love in Bristol-Myers Squibb Co (BMY)

Opening call sale in Analog Devices, Inc. (ADI) - from 11/26

 

 

STRATEGY BLOCK

Uncle Mike Tosaw discusses selling call spreads.

 

 

MAIL BLOCK

#QOTW: Those $AAPL Jan 150 puts that everyone sold in our last poll for $2 are now ITM. So our question is - what do you do now? Do you keep the stock around $148? Sell covered calls to “wheel out?” Roll or close the position? Let us know here

- Happily buy $AAPL at $148

- Wheel out w/ Covered Call

- Roll Put down

- Close position

Question from NN56 - Have you used Robinhood for options? What’s your impression? The impressions of your listeners?

 

 

AROUND THE BLOCK

 

Best of Option Block: Revenge of Realized Volatility

Dec 31, 2018 01:02:09

Description:

Originally published January 30, 2018

Trading Block: VIX is back into the 13 handle.

Earnings this week:

Wednesday - FB, Microsoft Thursday - Alphabet, Amazon, Apple, Alibaba The ORATS earnings report for 1/29/2018

Odd Block: More Jan 2019 50 "Catastrophe" puts in Tesla Motors (TSLA). Size call diagonal in Anheuser Busch Inbev NV (BUD). Near-term call paper in Colgate-Palmolive Company (CL).

Mail Block: Options question of the week

Earnings Season is upon us once again! It's time for #Tech to put its best foot forward. Which big #tech names are you looking to sling some #options on this week?

Amazon ($AMZN) Microsoft ($MSFT) Alphabet ($GOOGL) Facebook ($FB)

Listener questions and comments:

Question from Michael Smith - Any recommendations on where I can find help on calculating implied move into earnings?

Around the Block/Economic Reports this Week:

Jan 30: Consumer Confidence Jan 31: Chicago PMI, FOMC Meeting Feb 1: Jobless Claims Feb 2: Unemployment, Consumer Sentiment, Factory Orders

Option Block 770: 2018 Year in Review

Dec 28, 2018 01:04:11

Description:

Trading Block: A look back at the year in trading

The worst holiday week ever? Dow rallies 1,000 points, logging its biggest single-day point gain ever

2018 YEAR END REVIEW

MVP of the Year: Now we've got quite the horse race to see who will be crowned the most valuable company by the end of the year. Amazon was briefly number one today, but closed in the second spot. Now we have:

MSFT at 860.43 billion market cap. - NOW 753B AAPL at 877.04 billion market cap. -  NOW 721B AMZN at 866.63 billion market cap. - NOW 693B

Mail Block: Options question of the week.

The final #QOTW for 2018 is a big one! Time to play along w/ #VolatilityViews and dust off your #CrystalBall. Quite simply - where do you think $VIX will close for 2019? Bonus points: Reply/DM/Email w/ your specific pick. Closest (within 1pt) will win Fabulous Prizes.

Low: 8-11.99 Normal: 12 -16.99 Elevated: 17- 23 Very Elevated: > 23

Around the Block: What to look forward to in 2019?

Option Block 769: Fed Doesn't Care About Volatility

Dec 21, 2018 01:00:19

Description:

TRADING BLOCK

Fed raises rates again - hints at slower raises to come, but not enough for the markets. Chair Powell pretty much says the Fed doesn’t need to respond to Trump or the market.

Most active:

SPY - 3.54M (ADV 3.72M)

VIX -  177k (584K ADV)

Earnings Highlights:

Thursday - Conagra, Nike

Friday - Carmax

 

 

ODD BLOCK

Tesla put summary

Call love in (PG)

Call love in (EXEL)

Put love in (GNW)

 

 

 

MAIL BLOCK

#Options #QOTW - Which upcoming #Volatility product are you most excited about trading in 2019? Or are you content to stay with the original despite lingering issues?

- #SPIKES

- #Realday/ #RealVol

- #Voldex/ #Skewdex

- I’ll stick with $VIX

 

Comment from StockCats - 6 trading days left in the year…

Comment from TinSoldier - RE: Disney - Stock buybacks are not happening, but you have to be blind not to see future growth in every business segment(media, parks, studio)

Comment from Danny_Desert - RE: Disney - I can give a couple trillion why it won’t.

Comment from Koopus - Recent market jolts is when fake & bloated stocks like TSLA will race to the bottom!

Comment from PaulDrew2006 - Uncle Mike’s comment that this is a market for crazy people - Not really, smart people will be buying a sale

Comment from Scott Somer: 10,000 Jan 18th $XLF 22 puts have traded….$SPY STILL has 5 dollar expected move in Dec 21 cycle.

 

 

AROUND THE BLOCK

 

Option Block 768: Buying Illuminati Calls

Dec 18, 2018 55:26

Description:

Trading Block: Looming government shutdown spooks the market.

Most active today:

SPY - 2.1M (ADV 3.44M) VIX - 326k (603K ADV)

Earnings Highlights:

Monday - Oracle (after bell) Tuesday - Darden, Navistar, FedEx Wednesday - Rite Aid, General Mills Thursday - Conagra, Nike Friday - Carmax

Odd Block: Tesla put summary, opening call sale in (ONB), opening call love in (CG) and put love in Macy's (M)

Strategy Block: Uncle Mike Tosaw discusses 1256 contracts and wash sales.

Mail Block: Options qusetion of the week

Which upcoming volatility product are you most excited about trading in 2019? Or are you content to stay with the original despite lingering issues?

SPIKES Realday/RealVol Voldex/Skewdex I'll stick with VIX

Listener question:

Question from CodeLife10 - What is your thought on JPM tomorrow?

Around the Block: What's on the radar for the pre-holiday week?

Option Block 767: A Market for Crazy People

Dec 14, 2018 56:06

Description:

Trading Block: A mixed day today after a crazy week.

Most active today:

SPY - 1.62M (ADV 3.44M) VIX - 332k (603k ADV)

Earnings Highlights:

Monday - Stitch Fix Tuesday - Dave & Busters, American Eagle Outfitters Wednesday - Vera Bradley, Peak Resorts Thursday - Costco, Adobe

And, Apple falls after Chinese court bans sale of most iPhones

Odd Block: Tesla put summary, put breakdown in General Electric Company (GE), call sale in Tenet Healthcare Corp (THC), and call love in Liveramp Holdings Inc (RAMP)

Mail Block: Options question of the week

Everyone loves trading $AAPL #Options. So the #OpenInterest is always very high. But a few interesting #Options dominate the rest. What do you think is the largest open position in $AAPL right now? No cheating - try to use your #SpideySense.

Jan 2020 200 Call Jan 250 Call Dec 180 Put Jan 100 Put

Listener questions and comments: Comment from Austyn41: Good shows today. The experienced and animated host makes it very entertaining and interesting to listen to.

Question from Bjorn L. - You still liking apple 150 puts here? Comment from Mark Brant - Bought AAPL 8d/15d Calendar Straddle for $1.40! On a nice streak with this strategy. Multi bagger profit potential if you get lucky. I have come to favor +EV plays that have big upside but uncertainty per trade. Question from Max Lee - What do you think about stock replacement in SPY here? How far out would you go?

Around the Block/This Week in the Markets:

Dec 14 - Retail Sales, Industrial Production

Options News Rundown: December 11, 2018

Dec 11, 2018 08:24

Description:

Options news you can use for Tuesday, December 11, 2018

Option Block 766: As the Worm Turns

Dec 11, 2018 55:33

Description:

Trading Block: Another day, another selloff

Most active today:

SPY - 2.71M (ADV 3.44M) VIX - 299k (603K ADV)

Earnings Highlights:

Monday - Stitch Fix Tuesday - Dave & Busters, American Eagle Outfitters Wednesday - Vera Bradley, Peak Resorts Thursday - Costco, Adobe

MVP of the Year: Now we've got quite the horse race to see who will be crowned the most valuable company by the end of the year. Amazon was briefly number one today, but closed in the second spot. Now we have:

AAPL at 877.04 billion market cap. AMZN at 866.63 billion market cap. MSFT at 860.43 billion market cap.

Odd Block: Tesla put summary; March put love in Tanger Factory Outlet Centers Inc. (SKT); puts lighting up in HD Supply Holdings Inc (HDS), and; call love in Hydrogenics Corporation (HYGS)

Strategy Block: Uncle Mike Tosaw discusses cash as a position.

Mail Block: Options question of the week.

Everyone loves trading $AAPL #Options. So the #OpenInterest is always very high. But a few interesting #Options dominate the rest. What do you think is the largest open position in $AAPL right now? No cheating - try to use your #SpideySense.

Jan 2020 200 Call Jan 250 Call Dec 180 Put Jan 100 Put

Listener questions and comments:

Comment by Austyn41 - You've been nuggeted! Question from RTS3 - Mark said he used to trade Activision a lot. Outside of trading it, do you also play their games? If so what's on your playlist these days? Also the Rock Lobster is a cool nickname. B52s?

Around the Block/This Week in the Markets:

Dec 11 - PPI Dec 12 - CPI, Treasury Budget Dec 13 - Jobless Claims Dec 14 - Retail Sales, Industrial Production

Option Block 765: Tariff Man Brings Back Volatility

Dec 7, 2018 58:09

Description:

Trading Block: A look back at the week in trading

Tariff Man spooks the market…again. Exchanges were closed on Wednesday, December 5 in observance of a National Day of Mourning for the late George HW Bush. Netflix blew $100M on Friends reruns for one year!

Most active this week:

SPY - 3.01M (ADV 1.43M) VIX - 476K

Earnings Highlights:

Tuesday - Dollar General, HP Wednesday - Five Below Thursday - The Kroger Co., Broadcom, Michaels, Ulta Friday - Big Lots

Odd Block: Tesla put summary, opening Dec put love in Signet Jewelers Ltd. (SIG), opening Jan put love in Teradyne, Inc. (TER), and opening Feb call love in Lennar Corporation (LEN)

Mail Block: Listener questions and comments

Question from Daleon - Hey! I'm something of an options noob but I'm learning from listening to you guys. Still haven't pulled the trigger on my first trade. My question - what's the best and easiest starting point for noobs? I mostly have SPY in my portfolio right now. Is it selling calls on SPY? Am I correct that those calls would be considered covered? Fun show. Also liking the playbook program.

Around the Block/This Week in the Markets:

Dec 7 - Unemployment, Consumer Sentiment

Option Block 764: Trade War, GE Palooza, Risk Management and More

Dec 4, 2018 59:29

Description:

Trading Block: Exchanges closed on Wednesday, December 5 in observance of a National Day of Mourning for the late George HW Bush.

Earnings Highlights:

Tuesday - Dollar General, HP Wednesday - Five Below Thursday - The Kroger Co., Broadcom, Michaels, Ulta Friday - Big Lots

Also:

Oil selling off - WTI Crude back in the $40 handle. Bitcoin crushed - BTC threatening 4000.

Odd Block: Tesla put summary, possible opening call sale in (GPOR), put love in (PVG), and put love in (BEL).

Strategy Block: Uncle Mike Tosaw discusses purchasing long delta in options.

Mail Block: Options question of the week

AAPL continues to take a beating - recently dropping below $175. We know many of you LOVE to trade $AAPL and this selloff creates opportunities. Looking ahead to Jan 2019 expiration- which trade would you prefer to make in AAPL right now?

Sell Jan 150P for $1.65 Buy Jan 150P for $1.65 Sell Jan 200C for $1 Buy Jan 200C for $1

Listener questions and comments:

Comment from Mark Brant: Bot a million DOGE because it was cheaper than BTC. Spikes off lows take about 60 days to show up. For free on Robinhood! Short put spreads USO OIH came in nicely! Andrew and Mark miss a lot of VIX trades because their bias is down. My bias is up. Always looking at the 16 delta Calls! NG RR is on fire! Eurodollar HV much lower than IV as per usual.

Around the Block/This Week in the Markets

Dec 3: Construction Spending Dec 5: Productivity and Costs, Beige Book Dec 6: Jobless Claims, Factory Orders Dec 7: Unemployment, Consumer Sentiment

Option Block 763: AAPL Options Debate, Return of the Bull and More

Nov 30, 2018 59:38

Description:

Trading Block/Earnings highlights from the week:

Tuesday - Salesforce Wednesday - Box Thursday - TD, GameStop, HP Clothing Retailers: Burlington, Chico's, J Jill, Guess, Express, Abercrombie & Fitch

Plus,

Oil sells off - WTI Crude back in the $40 handle. Bitcoin getting crushed - BTC threatening 4000

Odd Block: Tesla put summary, Dec lifts puts in (VOD), opening put love in (AEO), and opening call love in (IQV)

Mail Block/Options question of the week

AAPL continues to take a beating - recently dropping below $175. We know many of you LOVE to trade AAPL and this selloff creates opportunities. Looking ahead to Jan 2019 expiration- which trade would you prefer to make in AAPL right now?

Sell Jan 150P for $1.65 Buy Jan 150P for $1.65 Sell Jan 200C for $1 Buy Jan 200C for $1

Listener questions and comments

Question from Leot - Is Apple a good candidate for stock substitution here? If so how would you set it up? Question from Burns - Is buying a call actually the best way to get long stock in this market?

Around The Block/This Week in the Markets

Nov 29: Jobless Claims, Personal Income and Outlays

Option Block 762: We are Back Talking AAPL, TSLA, VIX, Risk Reversals and More

Nov 27, 2018 01:00:58

Description:

Trading Block: Earnings!

Tuesday – Salesforce Wednesday – box Thursday - TD, GameStop, HP Clothing Retailers: Burlington, Chico's, J Jill, Guess, Express, Abercrombie & Fitch

Also, Bitcoin (BTC) dropped to its lowest level since October 2017 on Monday, as losses are seen across the broader crypto market.

Odd Block: Tesla put summary, opening call sale in (ADI), opening put love in (CRC), and Jan call sale in (PAA)

Strategy Block: Tosaw discusses what a risk reversal is and how to use it.

Mail Block: listener questions and comments

Question from Khabib - What do you think is the best use for unusual activity? Is it the best for trading or for an indicator?

Around the Block/This Week in the Markets

Nov 27: Consumer Confidence Nov 28: GDP

Best of Option Block: 2017 Year-End Palooza - All Smoke, No Fire

Nov 22, 2018 01:00:24

Description:

Trading Block: Review of the last trading day of the year. VIX barely holding on to double digits. Big meh into the end of the year. Silver is on a tear. The highs and lows of Bitcoin. Cboe announces six Bitcoin ETFs. Uncle Mike creates a new product...Fitcoin.

2017 Year-in Review: The good, the bad, and the unexplicable.

Final Options Question of the Week for 2017: What is your enduring market memory/event/trend/etc of 2017? Have a suggestion of your own? We encourage you to choose "Other" and send in your thoughts.

Death of Volatility/VIX Rise of Bitcoin The Unstoppable Bull Other: Reply/DM w/ ideas Comment from OptionsAlliance: The surprise resurgence of #options volume in 2017. Comment from OliveWanaBroker: The oats bull market. Very important. Uncle Mike's silver collar was not, in fact, the second coming of AAPL. All smoke, no fire Crypto fever

Odd Block: Crazy paper from the year

TSLA options tracker: The explosion of interest in TSLA catastrophe puts. OI exploded in 2017. Interest also expanded to Jan 2020 50 puts. The 250,000 contract VIX three-way, rolled thrice Extended Stay America - giving up the ghost The way-out-of-the-money gold trade with a further out-of-the-money kicker.

Strategy Block: Uncle Mike waxes poetic about his trading strategy from 2017

Around the Block: Will the outlier trends continue? Andrew brings us down with debt talk. What would it take for volatility to return to normal?

Option Block 761: Apple Wreck, Nat Gas Blowout and More

Nov 20, 2018 01:09:57

Description:

Trading Block: Apple woes hitting the market again., Plus earnings.

Target Best Buy Lowe's Kohl's

And growth in US corporate earnings expectations remains strong.

Odd Block: Tesla put summary; call love in JD.Com Inc. (JD); line in the sand puts in Mattel, Inc. (MAT); put love in ENSCO PLC (ESV).

Strategy Block: Uncle Mike Tosaw discusses premium selling

Mail Block: Options question of the week

You guys did great on last week's crystal ball so we've upped the ante. Where will VIX be at the end of Volatility Views in TWO WEEKS - aka Fri 11/30? Closest (within 1 pt) wins signed book from Option Pit Good Luck!

Here: 18.5-20.99 Higher: 21-23.5 Lower: 16-18.49 Crazy: Above 23.5

Listener questions and comments:

Question from Steve Giannakopoulos - Seems right that you can write 1 put option when you already own 100 shares of the underlying stock. Brokerage can lock and keep the 100 shares as collateral instead of holding cash as collateral. It doesn't happen though. Why? You could have your long 100 shares forced sell at the put option strike price if it's ITM and you get assigned. I read you said I just don't understand it. Thank you. Question from Matthew Grabarczyk - First of all thank you for the programming and knowledge! Coming from the technical side of equities trading I need some help and I could not really find a direct answer in the archives. A trade I'm in went long at 149.05 with a target of 152.75. At 150.90 (midway) I legged into a diagonal spread long the Jan 151 calls, short the weekly 152.50 trying to optimize skew. It is currently at 152.20 and gamma is kicking my ass. If I wanted to be out completely by 152.75, how would you suggest adjusting this trade?

Around the Block/This Week in the Markets

Nov 20: Housing Starts Nov 21: Jobless Claims, Durable Goods, Consumer Sentiment, Existing Home Sales Nov 23: Fed Balance Sheet

Option Block 760: Option Block Quick Hit - TSLA, SPY and More

Nov 16, 2018 19:53

Description:

Trading Block: Vol creeping back in as Brexit woes. Bad numbers and Walmart spooking the market. Buffett likes financials. WMT, NVDA earnings.

Odd Block: TSLA Flash Poll

The top 10 TSLA options positions are DOMINATED by OTM puts. Only one Call position makes the list. Which one is it? No cheating - what does your gut tell you?

Feb 450 Call Dec 365 Call Jan 2020 465 Call Jan 600 Call

Mail Block: It's crystal ball time! Where will $VIX bet at 1pm central - aka the end of the show - next Friday? See if you can beat the Volatility Views crew.

Here: 17-18.50 Higher: 18.51 – 20 Even Higher: >20 Lower: 15.50-16.99

Question from J3dingle - Hi Mark, Thought you might like this: https://www.youtube.com/watch?v=fQa-sx39Ltw. I wonder how he'd vote in March Madness! Joseph

Around the Block/This Week in the Markets:

Nov 16 - Industrial Production, Treasury International Capital

Option Block 759: Rolling Short Calls and Puts

Nov 13, 2018 01:00:12

Description:

Trading Block: A look at the week in trading (so far).

Selloff mode is back - somewhat. Apple iPhone XR slack demand spooking markets. GE continues to decline on power weakness. Vol creeping back in. Equities: Growth in US corporate earnings expectations remains strong.

Odd Block: Tesla put summary Opening call love in (ZNGA) - from 11/5. Opening call love in (ETM) - from 11/1. Put love in (BCS).

Strategy Block: Uncle Mike Tosaw discusses adjusting a short call and short put.

Around the Block: What do we think will shake the market this week?

Option Block 758: Out of the Danger Zone

Nov 9, 2018 01:00:04

Description:

Trading Block: A look back at the week in options trading

Goodbye backwardation!

Earnings Highlights for the Week

Monday - Sysco, Mylan, Marriott Tuesday - Eli Lilly, CVS Health, Gogo, Etsy, Match, Papa John's Wednesday - Groupon, Roku, Square Thursday - Dropbox, Walt Disney Equities: Growth in US corporate earnings expectations remains strong.

Odd Block: TSLA put summary, calls trading in Ctrip.com Internation Ltd (CTRP), and call love in Cornerstone OnDemand, Inc. (CSOD)

Mail Block: Option block flash poll

All of these downgrades are crushing AAPL. It's back below $1T. Heresy! Are you part of the AAPL faithful or do you have your bear claws out? Quite simply - do you think AAPL will be above $200 one year from now?

72% - Yes: $Above $200 15% - No: Below $200 13% - I'm sick of $AAPL

Options question of the week - We always like to take the pulse of our audience. This week we're checking in on your favorite strategies. What is your go-to #options strategy?

Butterflies Covered Call/Short Put Verticals, call or put Calendars/Diagonals

Listener questions and comments:

Question from NVD2 - Are we now out of the danger zone? Where does the danger zone officially start? Question from Helio - Uncle Mike back in full bull mode? What's his biggest holding? Question from Ilya - Why is iron condor the iron fly for cowards? Don't get it. Question from Mark Brant - Sold SNAP 45d ATM Puts when it had the highest ATM IV of any stock! ATM IB is the one to watch for premium selling IMO.

Around the Block/This Week in the Markets:

Nov 9: PPI, Consumer Sentiment

Option Block 757: Apple Volatility and Knockout Collars

Nov 6, 2018 01:02:21

Description:

Trading Block: Earnings Highlights for the Week

Monday - Sysco, Mylan, Marriott Tuesday - Eli Lilly, CVS Health, Gogo, Etsy, Match, Papa John's Wednesday - Groupon, Roku, Square, Thursday - Dropbox, Walt Disney Apple screwed the pooch: Apple tumbles 7% after earnings on light guidance. Market cap back below $1T

Plus, OCC Sets All Time Monthly Volume Record - OCC Clears Record Monthly Volume in October: Over 567 million contracts cleared in October, up 48.9 percent compared to 2017

Odd Block: Put summary in Tesla Inc (TSLA), line in the sand puts in (TRU), opening call love in (ZNGA) and call love in (ETM).

Strategy Block: Tosaw discusses the knockout collar strategy

Mail Block: Options question of the week
We always like to take the pulse of our audience. This week we're checking in on your favorite strategies. What is your go-to options strategy?

Butterflies Covered Call/Short Put Verticals -call or put Calendars/Diagonals

Around the Block: Midterms elections 2018 tomorrow!

Option Block 756: The End of the Beginning or The Beginning of the End

Nov 2, 2018 01:01:02

Description:

Trading Block: Earnings Highlights for the Week

Tuesday - GE, Sony, BP, FB, ebay, Pfizer, Coca-Cola Wednesday - GM Thursday - Apple, Starbucks, Weight Watchers, Spotify, Cigna, Dow/DuPont Friday - ExxonMobil, Cboe, Alibaba, Chevron, Berkshire Hathaway Equities: Growth in US corporate earnings expectations remains strong.

Odd Block: More puts in Tesla Motors Inc. (TSLA) and "Line in the sand" puts in Yelp Inc (YELP)

Mail Block: Options question of the week

Volatility is all over the place these days. Some say it's too cheap, others say it's too expensive. Either way they want to trade it. What's your weapon of choice when trading the wacky world of volatility?

VIX options/futures VXX options/ shares TVIX shares SPX / $SPY options

Listener questions and comments:

Question from Mark Davis: Hello, I have written in previously and got some great feedback on my question, so hoping you can help me out again.I am still playing (paper trading) with options while in my real account I purchase shares outright. After having quite a few good years, with the increase in volatility lately I have taken some pretty rough hits, so far for the YTD I lost about 16% of my portfolio. I should also mention I currently only deal with Index funds (S&P, International, & Small cap). I go in and out of these stocks based on various parameters that may have me holding a certain stock for less than a month to a little more than a month. Is your stock replacement strategy a good use for this or maybe not since time horizon is generally not long.

Example. Tomorrow I may buy 100 Shares of SPY @ 25 each, likely selling the shares in about 20 days. I am trying to figure a way to get the same (or close to same) movement as if I owned the shares outright while limiting the downside of at least setting a li e in the sand. I am having trouble wrapping my head around the right strategy or if what I want to do is even possible. So in the example above my portfolio had I bought outright and the stock is at 30 in 20 days I'm at $500 but what do I do to get close to this using Options. On the flip side if SPY was at 20, I am thinking there is a way that I would can protect myself from losing some of that $500.

Another thing I'm not sure of when doing this should I only be buying enough Contracts that I could afford it were I to exercise the options, i.e. if I have $200 in my account and the underlying is $1/share would I only want to buy 2 calls even though I would ideally have enough money to buy more contracts? Thanks for your feedback.

Around the Block/This Week in the Markets

Nov 2 - Unemployment, International Trade, Factory Orders

Option Block 755: Talking Earnings, Volatility, IBM and More

Oct 30, 2018 58:19

Description:

Trading Block: And we're back up!

Earnings highlights for the week:

Tuesday - GE, Sony, BP, FB, eBay Wednesday - GM Thursday - Apple Friday - ExxonMobil, Cboe, Alibaba, Chevron IBM buys Red Hat for $34B

Odd Block: Put summary in Tesla Motors Inc. (TSLA), calls going up in Proctor & Gamble Co (PG), call love in Exelixis (EXEL) and put love in Ford Motor Company (F).

Strategy Block: Uncle Mike discusses butterflies for buying the dip

Around the Block/This Week in the Markets

Oct 29: Personal Income Oct 30: Consumer Confidence Nov 1: Jobless Claims, Construction Spending Nov 2: Unemployment, International Trade, Factory Orders

Option Block 754: What The Heck Is Going On?

Oct 26, 2018 58:45

Description:

Trading Block: Holy crap and holy crap!

Earnings:

World Wrestling Entertainment (WWE): Earnings topped views but revenue missed as ticket sales to live events fell, and the company plans to go ahead with an event in Saudi Arabia. Twitter (TWTR): The stock shot up 16%, near 32, during morning trading on the stock market today. Amazon (AMZN): ATM straddle: $102, approx. 6% Alphabet (GOOGL): ATM straddle: $57, approx. 5%

AND Chinese operatives were able to infiltrate motherboards made by a US company that sold to Apple and Amazon: Bloomberg

Odd Block: Put summary in Tesla Motors Inc. (TSLA), call sale in Plains All American Pipeline (PAA), and call sale in Magellan Midstream Partners (MMP)

Mail Block: Options question of the week

Earnings are back with big tech names on the docket. Which of the following will be lighting up your #Options trading this week? Bonus points for your preferred strategies - e.g. call vertical, straddle, etc.

Microsoft $MSFT Amazon $AMZN Alphabet $GOOGL Twitter $TWTR

Listener questions and comments

Question from RonS6 - What's your suggested minimum account size to start trading options? Question from Tony - Is $HMNY the most option-like stock on the planet?

Around the Block/This Week in the Markets

Oct 26: GDP, Consumer Sentiment

Option Block 753: VIX Prediction Umbrage, Plus AMZN, TWTR and more

Oct 23, 2018 59:52

Description:

Trading Block: Economic Calendar - Top 5 Things to Watch This Week and U.S. midterms a mere blip on equity options traders' radar.

Odd Block: Call sale in EnLink Midstream Partners LP (ENLK), puts trade in Mellanox Technologies, Ltd. (MLNX), and risk reversal/collar in Harley-Davidson Inc (HOG)

Mail Block: Options question of the week

Earnings are back with big tech names on the docket. Which of the following will be lighting up your options trading this week? Bonus points for your preferred strategies - e.g. call vertical, straddle, etc.

Microsoft MSFT Amazon AMZN Alphabet GOOGL Twitter TWTR

Listener questions and comments:

Comment from Kelly Lef - Thought the user tip to exercise deep ITM calls to save on the spread was a good one. So I checked a few of my stock replacement positions that had gone ITM. Turned out the spreads were fairly similar to the spread on the underlying stock index so the any savings were pretty small. Not really worth the hassle to go through the exercise process. Maybe I'm just trading a more liquid index than that listener or am I missing something?

Around the Block/This Week in the Markets

Oct 24 - New Home Sales, Beige Book Oct 25 - Durable Goods, International Trade, Jobless Claims Oct 26 - GDP, Consumer Sentiment

Option Block 752: The Funky Bunch

Oct 19, 2018 54:23

Description:

Trading Block: What a week - volatility is coming back down, and the crystal ball is looking nice! Dow tumbles 350 points as technology and communication-services stocks tank in midday trading.

Odd Block: Tesla put summary, funky put palooza in General Electric Company (GE), put sale in Activision Blizzard Inc. (ATVI) and call palooza in KeyCorp (KEY).

Mail Block: Options question of the week

Time to break out your crystal balls. Volatility is on everyone's mind these days. Will earnings season add to the growing storm? Or will cooler heads prevail this week? Quite simply - Where will $VIX close this Friday 10/19?

Here: 19-22 Higher: > 22 Lower: 17-18.99 Even Lower:

Option Block 751: What the Heck Is Going On?

Oct 16, 2018 01:00:51

Description:

Trading Block: What a week! Uncle Mike leaves and the market falls apart. Earnings move reports available now. Chinese operatives were able to infiltrate motherboards made by a US company that sold to Apple and Amazon: Bloomberg

Odd Block: TSLA 50 mystery put update. Plus, TSLA put palooza.

Strategy Block: Uncle Mike Tosaw discusses how to get bullish in a market like this. 20,360 RRC Jan20 13.0 puts traded for $1.19. 3599 HBAN Nov 15.0 calls trade for $0.24. 2000 LPI Nov 7.0 calls traded for $0.21.

Mail Block: Options Flash Poll

Time to break out your crystal balls. Volatility is on everyone's mind these days. Will #EarningsSeason add to the growing storm? Or will cooler heads prevail this week? Quite simply - Where will $VIX close this Friday 10/19?

Here: 19-22 Higher: > 22 Lower: 17 - 18.99 Even Lower: < 17

Around The Block/ This Week In the Markets

Oct 15: Retail Sales Oct 16: Industrial Production, JOLTS Oct 17: Housing Starts, FOMC Minutes Oct 18: Jobless Claims Oct 19: Existing Home Sales

Option Block 750: Live from Duke University

Oct 11, 2018 01:08:09

Description:

Trading Block: OCC cleared contract volume up 8.7% in September. Total cleared volume up 18.6% year-to-date. Equity options volume up 14.3% in September and up 21.7 percent year-to-date.

Odd Block: Call sale in Glu Mobile Inc. (GLUU), Puts trade in AMETEK, Inc. (AME), and Call-palooza in Delta Air Lines, Inc. (DAL)

Mail Block: Volatility flash poll, plus live questions from Duke University

VIX has soared to 18.50 & $VVIX hit 120. Is this the new normal or a quick blip? Let's put that to the test starting with this week. Quite simply - Where do you think VIX will close this Friday?

Here: 18-19.5 Higher: > 19.5 Lower: 16 - 17.99 Lowest: < 16

Around the Block: What's on the radar going into the weekend?

Option Block 749: Birthday Strategy and Question Palooza

Oct 5, 2018 59:14

Description:

Trading Block: An overview of STA 2018: Stocks, stocks and more stocks. Google searches for hedges is ticking up. VIX searches anemic compared to Feb.

Strategy Block: Uncle Mike Tosaw discusses 1x2 ratio spreads

Mail Block: Listener questions and comments

Question from David Kotlyar - Hey mark, Could you discuss the Jun 2019 400 SPY calls? Very cheap and getting some love (5000+ contracts OI) Question from JL Smith - How important is OI when you're trading options? Are there other indicators that you focus on instead? Question from One0761 - Are we in the midst of a major correction. Question from JustinCredible18 - Any thoughts on BBD Nov calls? Nice Brazil stock rally going on. Question from KBX32 - What is the cheapest way to hedge my portfolio with options?

Around the Block/This Week in the Markets

Oct 5: Unemployment, Consumer Credit

Option Block 748: Talking TSLA, Trade Wars and Cannabis Beverages

Oct 1, 2018 58:49

Description:

Trading Block: The Trump trade deal: Bringing Canada and Mexico back to the table. The Tesla investigation was a farce: seems like the SEC just wanted some headlines.

Odd Block: A summary of Tesla (TSLA) puts, options palooza in New Age Beverages Corp (NBEV), put love & call stupid in WisdomTree TR/Japan Hedged Equity (DXJ) and opening put palooza in AVEO Pharmaceuticals (AVEO)

Strategy Block: Uncle Mike Tosaw discusses investing 101.

Mail Block: Volatility Flash Poll

The CBOE Skew Index alarmed many when it soared above 150. Of course, every index tells its own skew story. Which index do you think has the steepest skew right now (aka 25D put vol vs. 25D Call vol)?

41% - Russell 2000 26% - S&P 500 30% - Nasdaq 3% - Other

Listner questions and comments:

Question from Oytrate - What is a reason that someone would write ITM covered calls? Seems like a waste of time to me since you're capping all of your upside. Comment from J3dingle - Thanks Mark, I really enjoyed that segment. There was so much going on at that time, I actually forgot all about the short selling ban. I remember seeing Morgan Stanley at sub-$10. Bear Stearns bought for $2, then up-ed to $10. Citi trading for less than a $1? (Pre-reverse split) Question from UpwardMomentum - Approximately what percentage of your unusual option activity trades are winners?

Around the Block/This Week in the Markets:

Oct 1 - Construction Spending Oct 4 - Jobless Claims, Factory Orders Oct 5 - Unemployment, Consumer Credit

Option Block 747: In Search of the Steepest Skew

Sep 28, 2018 01:01:21

Description:

Trading Block: Earnings!

Disney Blackberry

Plus, Google searches for hedges are ticking up.

Odd Block: Puts trade in Bed Bath & Beyond Inc. (BBBY), call love in Ally Financial Inc. (ALLY) and call love in Virtu Financial Inc. (VIRT).

Mail Block: Volatility Flash Poll

The CBOE Skew Index alarmed many when it soared above 150. Of course, every index tells its own skew story. Which index do you think has the steepest skew right now (aka 25D put vol vs. 25D Call vol)?

Russell 2000 S&P 500 Nasdaq Other

Around the Block/This Week in the Markets

Sep 28: Personal Income, Consumer Sentiment

Option Block 746: Paying for Puts, plus AMZN, SNAP, SIRI and P

Sep 24, 2018 59:16

Description:

Trading Block: Snap stock rises after company announces new Amazon partnership; Earnings: Walt Disney Co (DIS)

Odd Block: Aggressive call sale in TransUnion (TRU), call sale in Williams Companies Inc. (WMB) and puts/calls deal in Sirius XM Holdings Inc. (SIRI).

Strategy Block: Uncle Mike Tosaw discusses both trading in a low Vol market and how to pay for puts.

Mail Block: Is it just me?

Question from Niny3 - Is it me? I seem to only get filled on my limit option order when the stock moves aggressively against me. At that point I’m almost better off canceling the order. What am I doing wrong? Should I just go to market?

Around the Block/This Week in the Markets:

Sep 25 - Consumer Confidence Sep 26 - New Home Sales, FOMC Meeting Sep 27 - Jobless Claims, GDP, Durable Goods Sep 28 - Personal Income, Consumer Sentiment

Option Block 745: Reefer Madness

Sep 21, 2018 01:02:13

Description:

Trading Block: Earnings and major moves

Oracle Corporation (ORCL) after the bell - $49.25, ATM straddle: $2.75, approx. 5.5% FedEx Corporation (FDX) after the bell - $255.25, ATM straddle: $8.50, approx. 3.3% Reefer madness hits the options markets as cannabis shares continue to climb. $TLRY $CORE $MJ

Odd Block: Tesla Inc. (TSLA) put summary, call love in KKR & Co Inc. (KKR), put love in Meet Group Inc. (MEET) and call love in Delek US Holdings Inc. (DK).

Mail Block: Options question of the week

Some people look to analysts for their market outlook. We prefer to analyze actual #options positions. This week we're looking at $SPY. In a nutshell - what do you think is the largest #options position in $SPY right now? No cheating - what does your gut tell you?

SPY Mar 255.0 P SPY Oct 272.0 P SPY Dec 31st 320.0 C SPY Sep 300.0 C

Listener questions and comments:

Question from Gallion - I need an income trade that produces about 7-8% per year, what should I be looking at? Question from Salsot - Pennies! Did they help or hurt options?

Around the Block/This Week in the Markets

Sep 20: Jobless Claims, Existing Home Sales, Fed Balance Sheet

Option Block 744: AMZN Spinoff, plus Mastering the Wheel

Sep 18, 2018 57:03

Description:

Trading Block: Trade war concerns are renewed as Trump keeps turning up the rhetoric. $AMZN in Chicago! A new Amazon Go store opens down the street from our studio - the first outside of Seattle. Amazon spinoff AWS heats up. FedEx (FDX) - $255.23, ATM straddle: $8.50 approx. 3.3%. Oracle (ORCL) - $49.25, ATM straddle: $2.75 approx. 5.5%.

Odd Block: Call love in Cigna Corporation (CI), calls trade in Bed Bath & Beyond Inc. (BBBY), and call love in Antero Resources Corp (AR).

Strategy Block: Uncle Mike Tosaw discusses how to trade the Wheel strategy.

Mail Block: Listener questions and comments

Question from Liznder -If you had to start over with learning about and trading options what would you do differently? Question from Tamavil - Does it make sense for an active trader to become a member of the exchanges anymore or are those days gone?

Around the Block/This Week in the Markets:

Sep 18: Treasury International Capital Sep 19: Housing Starts Sep 20: Jobless Claims, Existing Home Sales, Fed Balance Sheet

Option Block 743: Is Volatility Making a Comeback?

Sep 14, 2018 58:12

Description:

Trading Block: Volatility Flash Poll!

VIX is threatening 15 and $VXX is back above 30. Is this the return of volatility or just a blip? Quite simply - where will we be at the end of next week?

14% - Here: VIX=14, VXX=30(ash) 32% - Low: VIX=

Option Block 742: FB Crazy Calls Plus TSLA, AAPL and Rickets

Sep 10, 2018 01:02:02

Description:

Trading Block: VIX is back to 14, and VXX is back below 30. Earnings. If Apple made phone in U.S. they would cost 20% more, according to BAML analyst. SEC rejects bitcoin ETFs.

Odd Block: Upside calls in Altice USA Inc. (ATUS), short puts in PagSeguro Digital Ltd (PAGS) from 4-16, and size calls in Regions Financial Corp (RF) from 2-26.

Mail Block: Listner questions and comments

Question from EB18 - What do you think of $FB calls profiled on Options Action last week? Question from Anzew - If I go out of the money with my options are they more sensitive to price movements in the stock? I've had out of the money positions move over 25% when the stock only moved 5%.

Around the Block/This Week in the Markets

Sep 10: JOLTS Sep 11: PPI Sep 12: CPI, Jobless Claims, Treasury Budget Sep 13: Retail Sales, Consumer Sentiment

Option Block 741: We Are Back Talking TSLA, VIX, SPY and More

Sep 7, 2018 01:05:29

Description:

Trading Block. There are still names reporting earnings. Namely, Barnes & Noble and GameStop.

Odd Block: Cheapie calls in Northern Oil & Gas, Inc. (NOG) from 5/21. Crazy put palooza in Dean Foods Co (DF) from 4/30. Call love in Devon Energy Corp (DVN) from 4/16

Mail Block: Listener questions and comments

Question from Jason Anstey: Would you or your followers have a recommendation on best discount brokerage? Ideally low cost per contract and the ability to enter spread orders on a mobile device. Thanks. Appreciate it. Question from Florence: When trades go against you do you close or roll the whole thing out or only the losing parts?

Around The Block/This Week In the Markets:

Sep 4 - Construction Spending Sep 5 - International Trade Sep 6 - Jobless Claims, Productivity and Costs, Factory Orders Sep 7 - Unemployment

Best of Option Block 648: Everyone Loves Cheap Lottery Tickets

Aug 30, 2018 01:02:11

Description:

This episode was originally posted on August 29th, 2017

Trading Block: A quiet day in the market.

Odd Block: Ratio put spread in Expedia Inc. (EXPE), ratio risk reversal in Dollar General Corp. (DG), and put-palooza in Pure Storage Inc. (PSTG).

Mail Block: Options Question of the Week

Look at #MayweatherMcGregor as #Options traders. @TheNotoriousMMA calls cost $1, pay $3. #Floyd calls cost $4, pay $1. Your trade?

30% - Buy #Connor Calls? 32% - Buy #Floyd Calls? 16% - I'd rather sell premium 22 - Whoever Wins We Love

Listener questions:

Question from Allan8 - Did Mark cash any calls on Floyd? Question from LAXX - Is it me or do the Vegas odds makers do a very similar job to options market makers?

Another Options Question of the Week:

Let's get cheap! If you had to buy "lottery ticket" December calls for $.05 in one name - which would you choose? #HomeRun

AMZN AAPL Tesla VIX

MORE listener questions:

Comment from The_Quantum_Revloution - Which options are trading at $0.05 though that's the question? Comment from Randy Wright - AAPL, and I just might join you. Question from NTT - Can you clarify the question from last show. Was that SPX put-call spread guy asking about selling OTM calls vs. OTM puts or same strike? Comment from Dennis Lyrintzis - Wow over 15,000 Jan 55 calls bought for AAL. Thanks for the Alert. Question from ReallyG? - Love your #podcasts! Question: market profile displays limit orders. Is there a service that displays stop orders? Just wondering Question from KBX32: What is the cheapest way to hedge my portfolio w options?

Around the Block: Upcoming Earnings LULU (8/31)

 

Best of Option Block 614: Unleash the Liberator Puts

Aug 27, 2018 01:01:19

Description:

This episode was originally posted on April 25th, 2017

Trading Block: Earnings today

Alcoa: $33, ATM Straddle $2 - approx. 6% Chipotle: ATM Straddle $25.25, approx. 5.4% VIX 'fear' gauge plummets as French election results spark global relief rally.

Odd Block: Calls and puts trade in GGP Inc. (GGP), puts trade in Exelon Corp. (EXC) and calls trade in MGM Resorts Intl. (MGM).

Mail Block: Question of the Week:

Earnings Season is upon us. Big names are reporting soon. Which is your pick for the largest % move post-earnings?

$AMZN $GOOGL $CMG $MSFT

Listener questions and comments:

Follow-up comments from GameDay Dog:

You nailed it. I was assigned on 2 of the options. I knew that, but the (-) in my margin account was "alarming". My main thought was losing more than my spread safety net. The math did not make sense immediately. Glad to ask a question that made others ask questions. My bad...just heard episode 608...Yeah, I got assigned 2 of 3 my put spread. Way too early! I will get into better detail next time. Episode 208 had an excellent answer. That big negative number was stupid scary! I closed all the positions & sold the stock. The 1 short put & 3 long puts made it a back ratio spread when I closed it. It's funny now! PS - thanks for managing to get my questions on air. Once I closed the positions, I was able to sleep that night!!! Feels like I lost more than $300 though. By getting assigned the shares, it felt like I had more at risk and loss was influenced by the price of the underlying instead of the option. If that makes sense. Seeing the large margin number was not pleasant. My credit spread had a 30% chance of being ITM when I sold it too! Hahaha.

Question from Lesnod -How do you get out of the straddles? One side of a straddle is always a loss correct?

Around the Block/This Week in the Market

Apr 25: New Home Sales, Consumer Confidence Apr 27: Jobless Claims, International Trade, Pending Home Sales Apr 28: GDP, Consumer Sentiment

Option Block 740: Trade Wars and Cannabis Stocks

Aug 24, 2018 01:01:10

Description:

Trading Block: Trump trade war is back on the tape - China implemented more tariffs on U.S. goods.

Earnings:

Thursday - HP, Intuit, Gap Friday - Foot Locker

Odd Block: Rolling calls in Union Pacific Corporation (UNP), bullish paper in Coty Inc. (COTY) and opening puts in CBL & Associates Properties, Inc. (CBL)

Strategy Block: Uncle Mike Tosaw discusses investing in marijuana stocks.

Mail Block: Options question of the week

We're talking about #Crypto #Derivatives at the upcoming @BlockchainVoice Conference (register at http://VoiceOfBlockChain.com). So this week we want to know which #Crypto product you'd like to see listed on a major venue next.

72% - Bitcoin Options 8% - Ripple Options/Futures 15% - Ether Options/Futures 5% - Litecoin Options/Futures

Listener questions and comments: What's on your mind?

Comment from TradingTrooper -$CGC begins trading weekly options today Comment from FContangotrader -@OptionPit @OptionVol greasy meatball and rock lobster combo lol Re: Olive Garden $300 all you can eat pass: Comment from Volatility Trading -Low carb diets be damned

Around the Block: What are we watching?

Option Block 739: TSLA Is Crazy

Aug 21, 2018 01:00:31

Description:

Trading Block: Earnings!

Wednesday - Target, Lowe's, Barnes & Noble Thursday - HP, Intuit, Gap Friday - Foot Locker

Plus, TSLA has major issues - SEC investigation, drug cartels, etc.

Odd Block: Put roll in QEP Resources Inc (QEP), Roling puts in Flower Foods Inc (FLO), Call palooza in PayPal (PYPL)

Mail Block: Options question of the week

This week we would like to know more about your level of #options expertise. Quite simply - how would you describe yourself at a dinner party?

13% - Current/Former Pro 18% - Retail Options Wiz 47% - Retail Options Dabbler 22% - Looking to Get Started

ANOTHER Options question of the week: We're talking about #Crypto #Derivatives at the upcoming @BlockchainVoice Conference (register at http://VoiceOfBlockChain.com ). So this week we want to know which #Crypto product you'd like to see listed on a major venue next. Reply/DM w/others #Bitcoin $XRT $ETH $LTC

Bitcoin Options Ripple Options/Futures Ether Options/Futures Litecoin Options/Futures

Listener questions and comments:

Question From Cbade: Looking to sell some Ford weekly 9.50 puts for $.25. My broker says I don't have enough cash in my account to cover a 10 lot. How much money do I need to have to sell 10 puts on a $9 stock?

Around the Block: What's coming up this week?

Option Block 738: Talking VIX, NVDA, WMT, TSLA and More

Aug 17, 2018 01:00:46

Description:

Trading Block: A look back at the week from a trading perspective

VIX briefly back over 14.

Earnings:

Wednesday - Macy's, Cisco Thursday - Walmart, JD.com, Nordstrom, Nvidia Friday - John Deere Walmart (WMT) had a blowout quarter and shares are surging. Nvidia (NVDA) - ATM straddle: $16.50, approx. 6%

Odd Block: Bullish risk reversal in Discovery Communications Inc.  (DISCA) (From 7/19), Well-timed bullish stupid in Cleveland-Cliffs Inc. (CLF) (From 7/16), and earning bet in Interpublic Group of Companies Inc. (IPG) (From 7/16).

Strategy Block: Uncle Mike Tosaw discusses bad practices in financial advisors who claim to know options.

Mail Block: Options question of the week

This week we would like to know more about your level of #options expertise. Quite simply - how would you describe yourself at a dinner party?

12% - Current/Former Pro 21% - Retail Options Wiz 48% - Retail Options Dabbler 19% - Looking to Get Started

Around The Block/This Week In the Markets:

Aug 16 - Jobless Claims, Housing Starts Aug 17 - Consumer Sentiment

Option Block 737: VIX Roars while Musk Dances

Aug 14, 2018 57:29

Description:

Trading Block: The week in trading (so far!)

VIX is back over 14!

Earnings:

Tuesday - Home Depot Wednesday - Macy's, Cisco Thursday - Walmart, JD.com, Nordstrom, Nvidia Friday - John Deere

Odd Block: Shares surge in Rent-A-Center Inc. (RCII) (from 6/18), put spread in IQIYI Inc. (IQ) (from 6/21), ratio call spread in Melco Resorts & Entertainment (MLCO) (from 6/4)

Mail Block: Listeners take over

QOTW: This week we would like to know more about your level of #options expertise. Quite simply - how would you describe yourself at a dinner party?

Current/Former Pro Retail Options Wiz Retail Options Dabbler Looking to Get Started

Listener questions and comments:

Comment from CNelsen - Puts, calls. Calls, puts. Does it really matter? Question from Ling - I've heard some educators say that you should never hold out for the max profit in an options spread trade because that means you held onto it too long. Is this the case? Do you agree? Thx. Question from GunPowderJim - How do you calculate profit/loss on a ratio spread? If I buy 1 call and then sell 2 more do I average across the 3 contracts to determine the P/L on the spread?

Around the Block/This Week in the Markets:

Aug 14 - Import and Export Prices Aug 15 - Retail Sales, Industrial Production, Treasury International Capital Aug 16 - Jobless Claims, Housing Starts Aug 17 - Consumer Sentiment

Option Block 736: New Bat Time, Same Bat Channel

Aug 10, 2018 01:02:03

Description:

Trading Block: A week in review from a trading perspective.

The 30 handle is in the rear-view mirror for VXX - more puts hotting the tape. OCC Cleared Contract Volume Up 15 Percent in July

Earnings:

Monday - Tyson, Marriott, Tenet, NeoPhotonics, Vericel Tuesday - Snap, Disney Wednesday - CVS, Roku Thursday - Coca-Cola, Viacom, Dropbox

Odd Block: Review from 7/9: Rolling July put spread in iShares Russell 2000 Growth Index (IWO), vertical opening in Endo International PLC (ENDP), and small verticals in Amgen, Inc. (AMGN)

Strategy Block: Uncle Mike Tosaw discusses both metals to buy now and WWF Champs from 1984-1988!

Mail Block: Volatility quesiton of the week

VXX has finally broken through the 30 handle. Many of you are fascinated with the ongoing saga of the $VXX Jan 10 Puts. OI is over 200k and thousands continue to trade for $.01. Our question: Would you trade these puts?

Yes: Buy for $.01 Yes: Sell for $.01 No. It's Just Gambling I have enough $VXX Puts

Around the Block/This Week in the Markets:

Aug 7 - JOLTS Aug 9 - Jobless Claims, PPI Aug 10: Consumer Price Index, Treasury Budget

Option Block Quick Hit: Volume Breakdown And Your Question

Aug 7, 2018 16:19

Description:

Sometimes technology gets the best of us. This was one of those cases.

We were able to discuss:

Picard vs. Kirk VXX breaking the 30-handle OCC volume numbers for July Options question of the week How to handle the fixed time aspect of trading options?

Option Block 735: The AAPL, TSLA, VIX Trifecta

Aug 3, 2018 56:43

Description:

Trading Block: A review of the week from a trading perspective.

APPL (earnings were on Tuesday) Apple makes history by becoming first U.S. company to reach $1 trillion market value

Earnings:

Thursday - Activision/Blizzard, Shake Shack, Blue Apron, Go Pro Friday - CBOE

Odd Block: WMB Call-palooza and GRPN Pre-Earnings Call 1x2.

Strategy Block: Uncle Mike Tosaw discusses the possible outcome of more rate hikes.

Mail Block: Listener questions and comments

Question of the week: EarningsSeason is still in full swing. Which names will dominate your #Options trading this week?

Apple - $AAPL Tesla- $TSLA GoPro - $GPRO CBOE - $CBOE

Listners weigh in:

Question from Andrew Lane - I tried searching for options on the major advisor news sources including Pensions & Investments and Financial Advisors magazine and came up blank. Why do these mainstream outlets ignore this space? Where should I go to learn more about options for advisors?

Around the Block: What's coming up of interest?

Option Block 734: Talking AAPL, TSLA, VIX and More

Jul 31, 2018 57:57

Description:

Trading Block: The week in trading (so far)

Social media tech stocks are taking a bath

Earnings:

Tuesday - Apple Wednesday - Tesla Thursday - Activision/Blizzard, Shake Shack, Blue Apron, Go Pro Friday - CBOE

Odd Block: More Jan 2019 50 Puts in Tesla Motors Inc. (TSLA), line-in-the-sand puts in Adient PLC (ADNT), and put sweeps in AK Steel Holding Corporation (AKS).

Mail Block: Options question of the week

EarningsSeason is still in full swing. Which names will dominate your options trading this week?

Apple, $AAPL Tesla, $TSLA GoPro, $GPRO CBOE, $CBOE

Listener comments:

Comment from Value Dissenter -Tesla. Yay puts. Question from Ellen - When would you buy those $TSLA Jan 50 puts? Question from LOO7 -I think the market is top heavy here. What should I be looking at in terms of options trades? I mostly own spy in my portfolio. Straight 5% OTM puts or something else?

Around the Block: What's on the radar for the rest of the week?

Option Block 733: Earnings Palooza - FB, AMZN, INTC, CMG and More

Jul 27, 2018 59:56

Description:

Trading Block: A review of the week from a trading perspective

Earnings: Thursday - Amazon, McDonalds, Comcast, Starbucks, Nokia Friday - Twitter, Merck Facebook (FB) is 'face-planting' after hours tonight.

Earnings Flash Poll: Facebook (FB) is getting crushed post-earnings, trading down nearly 20% after-hours. Assuming it opens at that level, what's your next FB options trade? Other suggestions? Submit them below:

Buy Calls/Spreads Buy Puts/Spreads Sell Puts/Spreads Sell Calls/Spreads Comment from ProBuck:Sell OTM monthly puts Comment JackDanielsTrades:Prob stay away

Odd Block: More Jan 2019 50 Puts in Tesla Motors

Strategy Block: Uncle Mike Tosaw discusses pros and cons of getting long Facebook.

Mail Block: Listener questions and comments

Volatility Flash Poll: VXX is back in the erosion zone. Many short vol traders are anxiously waiting for it to break the 30 handle. When do you think VXX will finally break 30? This week? Next Week? Never? Let us know below:

5% - Week Ending Fri 7/20 32% - Week Ending Fri 7/27 32% - Week Ending Fri 8/3 31% - Never! I'm Long Vol!

Listener question:

Question from Allen T. -Does it count as a calendar if it’s on two different underlyings? Or is that more of a pairs trade?

Around the Block/This Week in the Market:

Jul 27 - GDP, Consumer Confidence

Best of Option Block: Revenge of the Schwartzotron

Jul 24, 2018 57:33

Description:

This best of Option Block episode was originally p>osted on July 22nd, 2016

Trading Block: Most major markets off 0.5% or more. VIX cash watch. Earnings today (before) Dunkin Brands,General Motors, Marriott Vacations, Southwest Airlines; (after) AT&T, Chipotle Mexican Grill, E*Trade Financial (ETFC). Apple Watch is a flop!

Odd Block: Calls trade in Nobel Corporation (NE), calls trade in Teucrium Corn Fund (CORN), calls and puts trade in Ebay Inc (EBAY), and calls trade in Mattel Corp (MAT).

Mail Block: Listener questions and comments....LIVE!

Size aside, what are the primary benefits of using SPX instead of SPY. What is going on in the VIX Aug 13 puts? Which names are the most reliable premium writes each quarter? Is there a tradeable pair between VIX and another member of the family of volatility products? What to do with the upcoming UVXY reverse split?

Around the Block: Earnings on Friday: American Airlines, General Electric Company, TCF Financial, Whirlpool Corporation.

Option Block 732: Talking MSFT, TSLA, VIX, and VXX; plus Pairs Trading

Jul 20, 2018 01:01:57

Description:

Trading Block: A review of the week in trading

Amazon and Apple: The race to $1 trillion.

Earnings!

Thursday - Microsoft Friday - GE, Honeywell MSFT (after the bell) - $104.70, ATM straddle: $3.70, approx. 3.5%

Odd Block: Bullish risk reversal in Discovery Communications Inc. (DISCA), Rolling call speeds in Omnicom Group Inc. (OMC), Call 3-way in Hanesbrands Inc. (HBI)

Strategy Block: Uncle Mike Tosaw discusses options pairs vs. stock pairs.

Mail Block: Listeners weigh in

Volatility Flash Poll: $VXX is back in the erosion zone. Many short vol traders are anxiously waiting for it to break the 30 handle. When do you think $VXX will finally break 30? This week? Next Week? Never? Let us know below:

Week Ending Fri 7/20 Week Ending Fri 7/27 Week Ending Fri 8/3 Never! I'm Long Vol!

Last week's option question of the week: Yup it's earnings season once again. Options traders are gearing up for a busy season. Which names do you think will dominate your options trading this season?

17% - $NFLX 44% - $AMZN 22% - $TSLA 17% - $GOOGL

Around The Block/This Week in the Markets:

Jul 19 - Jobless Claims

Option Block 731: Mystery Risk Reversals and Funky Puts

Jul 17, 2018 01:02:07

Description:

Trading Block: A review of the week so far from a trading perspective

Amazon.com down on its biggest day of the year. The trade war continues to scare no one.

Earnings!

Monday - Netflix Tuesday - Goldman Sachs, Johnson & Johnson, United Wednesday - IBM, eBay, American Express Thursday - Microsoft Friday - GE, Honeywell NFLX - ATM Straddle: $35, approx. 9%

Odd Block: Bullish stupid in Cleveland-Cliffs Inc. (CLF). Risk reversal in Interpublic Group of Companies Inc. (IPG). Put roll in QEP Resources Inc. (QEP).

Mail Block: Listeners have their say

Options question of the week: Yup it's earnings season once again. Options traders are gearing up for a busy season. Which names do you think will dominate your options trading this season?

NFLX AMZN TSLA GOOGL

Listener questions and comments:

Question from FlyGuy - Hey what do you guys do with your long calendar spreads? Do you close out the short leg if the stock doesn't move then keep the long leg or just close the whole spread out? Question from Flyer - What are some of the best ways to trade put options?

Around the Block/This Week in the Markets:

Jul 17 - Industrial Production Jul 18 - Housing Starts, Beige Book Jul 19 - Jobless Claims Federal Reserve Chairman Jerome Powell is set to deliver the semiannual monetary policy statement on Tuesday and Wednesday.

Option Block 730: VIX vs the Negative Zone

Jul 13, 2018 58:57

Description:

Trading Block: Earnings!

Tuesday – PepsiCo Thursday - Delta Airlines Friday - JPMorganChase, Citi, Wells Fargo, PNC Bank

Plus, crude is taking it on the chin this week.

Odd Block: Call love in D.R. Horton Inc. (DHI), call vertical in PagSeguro Digital Ltd (PAGS), put/call palooza in Materials Select Sector SPDR (XLB).

Strategy Block: Uncle Mike Tosaw discusses premium buying vs selling.

Mail Block: Options question of the week

Options during earnings season can be challenging. Some live for it while others avoid it. Do you hold options positions through earnings announcements? If so, what is your approach? Or do you prefer to trade just before/after the event? Or is it all too risky?

Yes, Short Premium Yes, Long Premium No, Too Risky I trade around the event

Around the Block/This Week in the Markets:

Jul 13 - Import and Export Prices, Consumer Sentiment

Option Block 729: Market Loves a Trade War

Jul 10, 2018 57:45

Description:

Trading Block: The trade war scares no one???

Earnings:

Tuesday - PepsiCo Thursday - Delta Airlines Friday - JPMorganChase, Citi, Wells Fargo, PNC Bank SPX is celebrating its 35-year anniversary.

Odd Block: Rolling put spread in iShares Russell 2000 Growth Index (IWO), vertical roll in Endo International PLC (ENDP) and small verticals in Amgen, Inc. (AMGN)

Mail Block: Listeners have their say

Options question of the week: Traders generally fade vlatility going into holidays (today notwithstanding). What's your favorite vehicle when you want to wager on the dark side of volatility? Short-term or Long-term - that's up to you.

27% - Short VIX Futures 17% - Long $VIX Puts/Spread 33% - Long $VXX Puts/Spread 23% - Short $VIX Calls/Spreads

Another options question of the week: Trading options during earnings season can be challenging. Some live for it while others avoid it. Do you hold options positions through earnings announcements? If so, what is your approach? Or do you prefer to trade just before/after the event? Or is it all too risky?

Yes, Short Premium Yes, Long Premium No, Too Risky I trade around the event

Listener questions and comments:

Question from Splitsville - Why is long put/covered call a "collar" while short put/long call is a "risk reversal." Never understood that one. Question from Alto - Which do you think has a better chance of happening - no more earnings calls or after hours options trading? And which do you think would be more impactful for options traders? Do you have a preference?

Around the Block/This Week in the Markets:

Jul 10 - JOLTS Jul 11 - PPI Jul 12 - Jobless Claims Consumer Price Index, Treasury Budget Jul 13 - Import and Export Prices, Consumer Sentiment

Best of Option Block 633: Nukes, Volatility and Crazy Tesla Puts

Jul 5, 2018 59:59

Description:

Originally posted on July 7th, 2017

Trading Block: VIX ends near the top of the range. It was up to 13.05 at its highest. Tesla down 7.2% yesterday, due to concerns of slowing Model S and Model X sales. The numbers are out: OCC announced today that cleared contract volume in June reached 387,597,223 contracts, a 2% increase from the June 2016.

Odd Block: TSLA Jan 2019 50 puts and Jan 2018 20 puts continue to trade. Back and forth trading in Tesla Motors (TSLA). Puts trade in LG Display Company LTD. (LPL)

Strategy Block: Uncle Mike Tosaw discusses the recent silver environment.

Mail Block: Options question of the week

Blue Apron $APRN is down over 10% from its #IPO price. Assuming #Options were listed, what trade would you make?

Buy Dec 10 Call for $1 Buy Dec 9 Put for $1 Sell Dec 10 Call for $1 Not Touching $APRN

Listener Questions: What's on your mind?

Question from Sal06 - Do you think AAPL $147 call for June 30th is a good idea? Question from Nelly2 - Just so I am clear on the spread assignment thing. If I am in SPX, then I just get cash if the index closes inside my spread. But if I am in a stock, then I get the stock?

Around the Block: WTH is happening in North Korea? VIX responds in kind. S&P 2400. Non-farm payrolls. Google fine.

Option Block 728: Tariff-Ied of Killer Foxes

Jul 3, 2018 56:59

Description:

Trading Block: Canadian revenge tariff are on the docket today. VIX cash sits above 17. OCC Cleared Contract Volume up 6% in June - the highest June for total options volume on record.
It's SPX's 35-year anniversary.

Odd Block: July 4 calls in Limelight Networks, Inc. (LLNW), Funky multi-leg in BP Prudhoe Bay Royalty Trust (BPT), Rolling puts in (FLO).

Strategy Block: Uncle Mike Tosaw discusses trading short put spreads

Mail Block: Options question of the week

Traders generally fade volatility going into holidays (today notwithstanding). What's your favorite vehicle when you want to wager on the dark side of volatility? Short-term or Long-term - that's up to you.

Short VIX Futures Long $VIX Puts/Spread Long $VXX Puts/Spread Short $VIX Calls/Spreads

Around the Block: 'Murica. Mired in tariff talk. Negotiating trade deals is tough!

Option Block 727: Slinging VIX By Way of Mexico, Maine

Jun 29, 2018 01:00:56

Description:

Trading Block: A review of the week in trading

VIX Cash - started at 18.99, ended at 16.70 Earnings: Nike after the bell - $71.70, ATM straddle - $3.40, approx. 5%

Odd Block: Size money call roll in Devon Energy Corp (DVN). Call vertical in CVS Health Corp (CVS). Size puts in PowerShares DB US dollar Index (UUP)

Strategy Block: Uncle Mike discusses selling a call spread versus selling a call.

Mail Block:

Question form Jack Daniels trades: Pump me up $WWE don't fade! Huge TV deal billionsss. Let's go. Question from BuddyBoy79: Can you please explain what relative strength and weakness mean as they pertain to options trading?

Around the Block/This Week in the Market

Jun 28: Jobless Claims, GDP Jun 29: Personal Income, Consumer Sentiment

Option Block 726: Amazing VIX Predictions...and Hiccups

Jun 26, 2018 01:00:30

Description:

Trading Block: Trump's trade war spooks the market. Again. Bitcoin manipulation via tether. Who out there is trading or interested in Crypto? What are you trading?

Odd Block: Call writing frenzy in Campbell Soup Company (CPB). Call palooza in Market Vectors Oil Services ETF (OIH). Call love in Fiat Chrysler Automobiles (FCAU).

Mail Block: Listeners take over

Options question of the week. Let's have some fun. These "entertainment" stocks are pricing in big moves. Gun to your head: Which July ATM straddle would you rather own in your portfolio? $WWE $DIS $WYNN $SEAS #DegeneratePremiumBuyers #PalmsIn #FearNoTheta

17% - $WWE July ATM Strad: $7 37% - $WYNN July ATM Strad: $12 16% - $SEAS July ATM Strad: $2 30% - $DIS July ATM Strad: $5

Listener questions and comments:

Comment from SecretlyPsyched: Is it possible to short-sell a campaign? Or how about an entire state party? Some sort of derivative strategy? Question from Nowledg3ispowerl: So turns out you guys are absolutely right. I have a very poor understanding of options. What's the best podcast episode for beginners? Comment from the chat room re: TSLA. Question from HeyBartenderman: Hi. I have a question for you. If I'm interested in buying options in a stock, what's the best way to go about finding the best strike/expiry?...Basically, if I sold a stock for a nice profit, but then wanted to participate in a move higher should it keep going up (for example $IQ). Or if I've been watching something, and think it's about to break out, but don't know exactly when, which options should I be looking at? Weeklies, monthlies, leaps, etc....When is it better to do one length of option over another, I think is basically the question I have. Thanks.

Around the Block: Will they or won't they re: trade wars.

Option Block 725: Well-Timed Puts and Funky Verticals

Jun 22, 2018 01:00:10

Description:

Trading Block: Trump trade war spooks markets again. We are fully into zone two. Will vol explode, or is it just a bunch of nothing? Will there be a 50-handle move in the S&P within the next three days? Will this be another year of record volume? Which exchange is dominating the flow so far?

Odd Block: TSLA takes a drubbing. Returning to the Rent-A-Center trade from Tuesday. SBUX closing some locations. Is IQIY Inc. being impacted by the threat of trade war?

Strategy Block: Managing risk comes before sentiment. Going from a diagonal spread into a put spread.

Mail Block: Listener questions and comments

Options question of the week: Let's have some fun. These "entertainment" stocks are pricing in big moves. Gun to your head: Which July ATM straddle would you rather own in your portfolio? WWE? DIS? WYNN? SEAS? #DegeneratePremiumBuyers #PalmsIn #FearNoTheta

WWE July ATM Strad: $7 WYNN July ATM Strad: $12 SEAS July ATM Strad: $2 DIS July ATM Strad: $5 @PatrickSnoke: Just pull the trigger so I don't have to choose the least worst option.

Listener questions:

Question from Running Roger: Forgive me for asking but I need some help and have done something I didn't mean to. I bought ETSY puts at 40.00 strike and then wanted to sell to close. I accidentally sold a put contract, same strike price and same expiration date. Do they wash out? At this point I'm not even worried about the couple of hundred bucks I lost on the spread. I'm worried about selling the put contract. I used Robinhood on this one (instead of TOS) and I can't find a way to sell to close. Some help would be appreciated. Question from nowledg3ispower: I think I understand most things about calls. But I can't figure out and no one is able to give me an estimate if I have an option in the money. And I want to sell the option as opposed to letting the contract expire and buying the shares. What's my ballpark profit? I've been looking at this option for Twitter. If you have to provide an example.

Around the Block: What are we watching for the near future? Watching VIX. Andrew doubles down on a big move in the S&P.

Option Block 724: Live from the Southern Studio

Jun 19, 2018 01:00:00

Description:

Ttrading Block: Making up for lost ground. Weekend risk. Silver give up gains on tarriff talks.New low in the July VIX futures.Square up for no discernible reason. TWTR. TSLA. Put buyers. VIX zones. Fifty cent is back.Why are there so few market makers left? IL Rep takes it on. Where should regulators focus their attention?

Odd Block: Mystery TSLA puts. Rally-ho in Dropbox. Finding value in Rent-A-Center.

Mail Block: Listeners take over

Last week's question of the week: We've broken down the weekly ATM straddles expiring 6/22 for the follow popular names. Gun to your head, which ATM straddle would you reather buy? TSLA? FB? SPY? GLD?

42% - TSLA 25% - FB 15% - SPY 18% - GLD

This week's question of the week: : Let's have some fun. These "entertainment" stocks are pricing in big moves. Gun to your head: Which July ATM straddle would you rather own in your portfolio? WWE? DIS? WYNN? SEAS? #DegeneratePremiumBuyers #PalmsIn #FearNoTheta

WWE July ATM Strad: $7 WYNN July ATM Strad: $12 SEAS July ATM Strad: $2 DIS July ATM Strad: $5 Comment from ThetaSeller: Can't we just sell an O.T.M. strangle instead? LOL Comment from traderjrae: I'm trying to decide which would be worse... Placing an ATM straddle when long options are overpriced, or getting shot in the head. Comment from 1SimpleTrader: Re: TSLA. Musk sells $600 million worth of stock in 2016, nobody bats an eye. He buys $10 million back and everyone loses their s*#t.

Around the Block: Trade wars? Watching the POTUS Twitter account.

Option Block 723: Live from the Pro Trader Summit

Jun 15, 2018 30:57

Description:

In this episode, the all stars are live at the annual Option Pit Pro Trader Summit. Chaos, hilarity, and options discussion ensued.

Option Block 722: Prepare for the Meeting of the Minds

Jun 12, 2018 01:00:07

Description:

Trading Block: What is happening in the markets this week?

Stocks shake off G7 row as investors await US-North Korea summit Bitcoin tumbles as hackers hit South Korean exchange Coinrail New research shows European demand for US equity options remains strong

Odd Block: Funky closing spread in Owens Corning (OC), call love in BGC Partners, Inc. (BGC) and playing with house money in Beacon Roofing Supply (BECN).

Strategy Block: Uncle Mike Tosaw discusses Bitcoin/crypto future.

Mail Block/Options Question of the week

GoogleTrends is full of interesting, and surprising, data. When you analyze the "options" search data you uncover some surprising results. Which brings us to this week's question: Which "subregion" is currently ranked 1 for overall "options" interest by Google?

33% - Illinois 23% - California 32% - New York 12% - Maine

Listener questions and comments:

Question from EAQ -Can you always rely on the bid ask spread when you're analyzing unusual options activity? Seems like that can be gamed?

Around the Block/This Week in the Market

Jun 12 - Consumer Price Index, Treasury Budget Jun 13 - PPI, FOMC Meeting Jun 14 - Jobless Claims, Retail Sales Jun 15 - Industrial Production, Consumer Sentiment

Option Block 721: The Trade Hawks

Jun 8, 2018 58:17

Description:

Trading Block: Earnings!

Monday - Dell, PaloAlto, CSMC, Orion Tuesday - HD Supply, Duluth Trading, Navistar Wednesday - Signet, Knot, SecureWorks, Thursday - Smuckers, Broadcom, At Home Warren Buffett and Jamie Dimon join forces to convince CEOs to end quarterly profit forecasts

Odd Block: Size opening puts in Banco Bradesco (BBD), Size opening call sale in Analog Devices, Inc. (ADI).

Mail Block: Options question of the week

Google Trends is full of interesting, and surprising, data. When you analyze the "options" search data you uncover some surprising results. Which brings us to this week's question: Which "subregion" is currently ranked one for overall "options" interest by Google?

Illinois California New York Maine

Flash Poll: Let's stick with our Volatility theme to round out the week. Quite simply - which product do you think has the highest 30-day implied Volatility? No cheating (or checking with your broker)! What does your gut tell you? VIX? Bitcoin? TSLA? RUSSELL2000? RUT? IWM?

Tesla, TSLA VIX Bitcoin Russell 2000: Emini, RUT

Listener questions and comments:

Comment from Till - I'm looking forward to the rock lobster's ongoing webinar series on Asian options. Question from DollClub - How do you price ratio spreads. If it's a long 1x2 do you just multiply the cost of the second leg by 2 and then subtract it from the long leg? Is it just that simple? Question from Division1 - Why has there never been a cool trading video game? Options or stocks I don't care. Maybe Insider should do it?

Around the Block: What's on the radar for next week?

Option Block 720: Options Volume and Skew Breakdown

Jun 5, 2018 57:29

Description:

Trading Block: Last week in review

Is the trade war back on the table? The May number are in: OCC cleared contract volume increased 8% in May. Credit Suisse announces 1-to-10 reverse split for $TVIX and $TVIZ effective June 8th.

Odd Block: Ratio call spread in Melco Resorts & Entertainment (MLCO), put apocalypse in Nektar Therapeutics (NKTR), and put roll in iShares MSCI Turkey Index Fund (TUR).

Strategy Block: Uncle Mike Tosaw discusses how to trade skew.

Around the Block: What are we looking at for the upcoming week?

Option Block 719: The Rock Lobster Loves Asian Options

Jun 1, 2018 59:30

Description:

Trading Block: Trade wars are back on the table. Credit Suisse announces 1-to-10 reverse split for TVIX and TVIZ effective June 8th.

Odd Block: Put palooza in Deutsche Bank AG (DB). Opening size call sale in Exeton Corporation (EXC). Calls and puts trade in PagSeguro Digital Ltd (PAGS)

Mail Block: Options question of the week

Holiday Weekends are notoriously tough for VIX traders. The markets love to crush Volatility going into these events. So we thought we'd poll the savvy VIX traders in our audience - where do you think VIX will OPEN on Tues 5/29?

39% - Here: 12-14 30% - Higher: 14-16 18% - Lower: 10.5-12 13% - Much Higher: >16

Options Flash Poll: Let's stick with our Volatility theme to round out the week. Which product do you think has the highest 30-day implied Volatility? No cheating (or checking with your broker)! What does your gut tell you? VIX? Bitcoin? TSLA? RUSSELL2000/RUT? IWM?

Tesla, TSLA VIX Bitcoin Russell 2000: Emini, RUT

Listener questions and comments:

Comment from Charlie Tunsen - I would like to add my vote for after hours options trading. It's ridiculous that the underlyings keep trading while the derivatives of those products are locked in an artificial deep freeze. I don't care if it's entirely illiquid or just a resting order book. Some liquidity is better than none when everything is melting down. Question from Mads Melken - Why don't you guys talk about Asian options?

Around the Block: What is on our radar?

Option Block 718: Crazy HMNY, TSLA and DB Options Trades

May 25, 2018 50:52

Description:

Trading Block: Earnings!

Friday - Foot Locker Best Buy reaffirms guidance - renews concerns about the inroads of Amazon. Monday review: Intuit - 191.30, ATM straddle: 11, approx.7% Gap Inc. (GPS) - 33, ATM straddle: 2.60, approx. 8% Netlifx vs. Disney - Who will come out ahead in the long run?

Odd Block: Big selloff in Petroleo Brasil (PBR). Size opening risk reversal in iShares JPMorgan USD (EMB). Call buyer giving up the ghost in Deutsche Bank AG (DB).

Mail Block: Options question of the week

Holiday Weekends are notoriously tough for VIX traders. The markets love to crush Volatility going into these events. So we thought we'd poll the savvy VIX traders in our audience - where do you think VIX will OPEN on Tues 5/29?

Here: 12-14 Higher: 14-16 Lower: 10.5-12 Much Higher: >16

Listener questions and comments:

Question from Scott Somer - When doing earnings trades do you ALWAYS default to nearest Friday expiration. Question from Charlotte - How about that move in WWE? You buying calls like crazy? Question from Justin - I know you guys hate cheapie options trading but your comments about HMNY got me thinking. I could sell the June ½ straddle for about .25. If I could do that again in July then in two months I could have the stock almost for free. A free stock is even better than a cheap stock. Question from LTTW - HMNY AUG .5 strad is currently around .25-.30. I agree it makes no sense to buy that when the stock is .46 but I'm liking selling this straddle to get the stock for .16 by Aug exp. Maybe even work a .01 or .05 bid for some 1 calls further out on a ratio in case stock recovers aggressively?

Around the Block/Economic Reports:

May 25 - Durable Goods, Consumer Sentiment

If you are interested in what the Federal Reserve has to say or has been saying, this is the week for you. Not only are the notes from the last meeting going to be released on Wednesday, several Fed presidents will be talking this week including three on Monday and on Friday.

Option Block 717: The Dangerous Art of Buying OTM Calls

May 22, 2018 59:08

Description:

Trading Block: Earnings!

Tuesday - Kohl's Wednesday - Lowe's, Target Thursday - Best Buy Friday - Foot Locker Intuit - $191.30, ATM Straddle: $11, approx. 5.7%

Odd Block: Call palooza in PayPal Holdings Inc. (PYPL). Rolling calls in Union Pacific Corporation (UNP). Cheapie calls in Northern Oil & Gas, Inc. (NOG)

Strategy Block: Uncle Mike Tosaw discusses how to profitably buy OTM calls

Around the Block/Economic Reports:

May 23 - New Home Sales, FOMC Minutes May 24 - Jobless Claims, Existing Home Sales May 25 - Durable Goods, Consumer Sentiment

If you are interested in what the Federal Reserve has to say or has been saying, this is the week for you. Not only are the notes from the last meeting going to be released on Wednesday, several Fed presidents will be talking this week including three on Monday and on Friday.

Option Block 716: Secrets That Option Muggles Don't Know

May 18, 2018 01:05:35

Description:

Trading Block: Featuring special guest host Greg Stevens, VP of Product Development for Options at Fidelity.

Earnings!

Tuesday - Home Depot Wednesday - Cisco, Macy's Thursday - Walmart, Applied Materials, JC Penney, Nordstrom Friday - John Deere AMAT - 54.30, ATM straddle: 2.25, approx. 4%

Odd Block: Line in the sand puts in Teva Pharmaceutical Industries (TEVA). Call love in General Electric Company (GE). Roll/stupid in Mylan NV (MYL).

Mail Block: Options question of the week.

CME Group just announced a new Ether index this week - expanding the universe of Crypto indices. But, at the end of the day, we all want more tradeable products. Which derivatives product would you like to see next in the Crypto space? Bitcoin Ether Ripple LightCoin

Bitcoin Options Ether Futures Ripple Futures LightCoin Futures

Listener questions and comments:

Question from Litnic - What is the best "secret" options indicator that you use that isn't widely known or followed? Question from Brian P. - What's your favorite underlying to trade options on? Question from Alexi K. - How large do you think the universe of readily tradeable options is for the investing public? Question from QZ98 -Do you trade options on stocks below 5? What's the cutoff? 1

Around the Block: What are the all-stars keeping their eyes on?

Option Block 715: What Zone is VIX in Today?

May 15, 2018 59:03

Description:

Trading Block: Earnings!

Tuesday - Home Depot Wednesday - Cisco, Macy's Thursday - Walmart, Applied Materials, JC Penney, Nordstrom Friday - John Deere

Odd Block: Crazy call palooza in Caesars Entertainment Corp (CZR). Bullish risk reversal in QUALCOMM, Inc. (QCOM).

Strategy Block: Uncle Mike Tosaw discusses what skew is.

Mail Block: Options question of the week

CME Group just announced a new Ether index this week - expanding the universe of Crypto indices. But, at the end of the day, we all want more tradeable products. Which derivatives product would you like to see next in the Crypto space? Bitcoin Ether Ripple LightCoin

73% - Bitcoin Options 13% - Ether Futures 7% - Ripple Futures 7% - LightCoin Futures

Listner comment:

Shared from Sonic Merlin - My Monday SPY puts.

Around the Block/Economic Reports:

May 15 - Retail Sales, Business Inventories, Treasury International Capital May 16 - Housing Starts, Industrial Production May 17 - Jobless Claims

Option Block 714: Talking VXX, NVDA and VIX

May 11, 2018 59:34

Description:

Trading Block: Earnings!

Thursday - Nvidia NVDA - ATM straddle: 17, approx. 6.5%

Odd Block: More Jan 2019 50 “catastrophe” put in Tesla Motors (TSLA). Crazy option palooza in Helios and Matheson Analytics (HMNY). Line in the sand puts in HP Inc. (HPE). Call trade in Nabors Industries Ltd. (NBR).

Mail Block: Options Question of the Week

VIX is back in the mid-teens but the Volatility space is hotter than ever. This is breathing new life into old Volatility products as they try to elbow their way into the VIX spotlight. Which do you think has the best chance of hitting it big with traders?

23% - RealVol- S&P Realized Vol 16% - VolDex -S&P ATM Vol 29% - Spikes- aka SPY VIX 32% - None: There's Only 1 VIX

Around the Block/Economic Reports:

May 11 - Import and Export Prices, Consumer Sentiment

Option Block 713: More Mystery Option Paloozas

May 9, 2018 01:00:34

Description:

Trading Block: What's moving the options market?

Options Volume for April: OCC announced that total cleared contract volume in April reached 405,853,179 contracts, a 27% increase from April 2017 volume of 320,547,848 contracts and marking the highest April on record.

Earnings!

Tuesday - The Walt Disney Company Thursday - Nvidia

Odd Block: Bullish paper opening in Coty Inc. (COTY). Rolling calls in Marathon Oil Corporation (MRO). Near ATM earnings calls in Amicus Therapeutics, Inc. (FOLD).

Strategy Block: Uncle Mike Tosaw discusses when it might be better to use verticals or diagonal/calendars.

Around the Block/Economic Reports:

May 8: JOLTS May 9: PPI May 10: Jobless Claims, Consumer Price Index, Treasury Budget May 11: Import and Export Prices, Consumer Sentiment

Best of Option Block: Jedi vs. Sith vs. Earnings

May 5, 2018 57:55

Description:

Originally Posted January 24th, 2017

Trading Block: The Trump Effect: President Donald Trump is set to unleash a cascade of stock-market anxiety - The day of reckoning for the Wall Street is here. McDonalds (MCD) earnings today. Friday close - $122.26; ATM Straddle - $3.52, approx. 3%; Open down $.75, Traded as low as $2.44; No more love for all-day breakfast.

Odd Block: Calls and puts trade in Morgan Stanley (MS), calls trade in Home Depot Inc (HD) and calls trade in Lending Club Corp (LC)

Mail Block: Questions, Comments, Polls, and more

Options #QuestionOfTheWeek

Earnings Season awakens! How do you play earnings using options? Are you an Earnings #Jedi or #Sith?

41% - Dark Side (Short Premium) 26% - Light Side (Long Premium) 25% - No Side - Avoid earnings 08% - Other (Reply/DM w/ideas)

Options #QuestionOfTheWeek - Lots of earnings on the horizon. Which company will outperform their earnings straddle by the largest margin?

Alphabet - $GOOGL Microsoft - $MSFT Intel - $INTC Starbucks - $SBUX

Listener questions and comments

Comment from Steve Place - CREE it is always CREE Question from Chris - Is there a way to subscribe to your posts as they go up on the website so you can get notified via email or mobile phone? Thanks, Chris Question from Fundconcept - Do you think activist investors opportunities will rise considering their experience with mkt volatility?

Around the Block/Earnings Highlights this Week:

Tuesday - Alibaba Group, Verizon, Johnson & Johnson, 3M, Kimberly-Clark Wednesday - Boeing, Abbott Labs, eBay, Qualcomm, AT&T Thursday - Alphabet, PayPal, E-Trade, Microsoft, Southwest, Caterpillar, Intel Friday - Honeywell 

Option Block 712: AAPL, SNAP, TSLA Earnings Options Breakdown

May 2, 2018 01:02:16

Description:

Trading Block: Earnings!

Monday - McDonalds Tuesday - Apple, Snap Inc. Wednesday - Tesla Thursday - Activision/Blizzard, WWE Friday - CBOE

Odd Block: Jan 2020 50 "catastrophe" puts in Tesla Motors Inc. (TSLA). Closing/rolling paper in ILG Inc. (ILG). Buying a put stupid in PowerShares DB US Dollar Index (UUP). Crazy put-paoolza in Sea Foods Co (DF)

Strategy Block: Uncle Mike Tosaw discusses ways in which to look at covered calls in a channeling market.

Around the Block/Economic Reports:

Apr 30: Personal Income, Chicago PMI May 1: Construction Spending May 2: FOMC Meeting May 3: Jobless Claims, International Trade, Factory Orders May 4: Unemployment

Option Block 711: AMZN, MSFT and INTC Earnings Palooza

Apr 28, 2018 59:28

Description:

Trading Block: Earnings:

AMZN - 1460, ATM straddle 90, approx. 6% MSFT - 92, ATM straddle 4, approx. 4% INTC - 51.38, ATM straddle 2.40, approx. 5% GOOGL - ATM straddle 54, approx. 5%

Odd Block: More Jan 2019 50 "catastrophe" puts in Tesla Motors (TSLA). Apr 12.5 Puts in CNH Industrial NV (CNHI). Line in the sand puts in L Brands Inc. (LB). Line in the sand puts in Dicks Sporting Goods Inc. (DKS).

Mail Block: Options question of the week

We dig up many strange options positions at the Options Insider. Some seem credible while others are just head scratching. Which of the following open options positions do you think has the best chance of actually becoming a winner?

49K TSLA Jan 2019 50 P 197K VXX Jan 2019 10 P 65K GLD Jan 2019 200 C 146K SPY Dec 2019 150P

Listener questions and comments:

Question from BTavares -Hey great show. I'm looking at this chart from FT and it makes me wonder if I should concentrate my trading in the last 30 minutes of the day to increase the liquidity for my options trades. I wonder if this also applies to less-liquid options names. Question from Yancy - I heard Tom Sosnoff say on your interview show that there are 20 active names and 75 tradeable names in the options market for retail and that's about it. Do you concur?

Around the Block: What's on the radar for the all-stars?

Option Block 710: You Are All Stupid

Apr 25, 2018 01:02:40

Description:

Trading Block: VIX down. Vol futures down. Gold vol is very low. 10-year yield at 3%. Metals get the crap kicked out of them.

Earnings: GOOGL - ATM straddle: 54, approx. 5%. More tech earnings to come.

Odd Block: More Jan 2019 50 "catastrophe" puts in Tesla Motors (TSLA). Puts trade in Chicago Bridge & Iron Company (CBI). Calls trade in D. R. Horton Inc. (DHI). Puts trade in CBL & Associates Properties, Inc. (CBL).

Strategy Block: Uncle Mike Tosaw discusses hedging during earnings.

Mail Block: Options question of the week

VIX is back in the mid-teens. Are you buying this Volatility reprieve or is this merely calm before the storm? Quite simply - Where do you think VIX will end the week?

24% - Here: 16-18 19% - Higher: 18-20 18% - Even Higher: 20-25 39% - Lower: 14-16

Options Flash Poll: The proposed third exchange from @MIAXexchange will raise the total number of U.S. Options Exchanges to 16. Is this a good thing for the options market? Is it the straw that finally breaks the camel's back? Or are you too busy getting great fills to care?

44% - More Exchanges the Better 22% - Please Make It Stop 34% - Don't Care: I get filled

Listener feedback:

Question from LNC - SVXY calls suck now. What about selling the puts? Is there any juice in those or have they been drained as well by the bid redo last week?

Around the Block: GOOGL post-earnings. Andrew wants to let it all out. SVXY makes him angry. Will tech earnings produce a higher SPX?

Option Block 709: Tech Wreck, plus Well-Timed VIX Puts

Apr 21, 2018 59:49

Description:

Trading Block: That's right. We are up to 16 exchanges now. MIAX Options and MIAX PEARL options exchanges, today announced that it intends to launch MIAX Emerald as its third fully electronic options exchange in 2019.

Options Flash Poll: The proposed third exchange from MIAX exchange will raise the total number of U.S. Options Exchanges to 16. Is this a good thing for the options market? Is it the straw that finally breaks the camel's back? Or are you too busy getting great fills to care?

More Exchanges the Better Please Make It Stop Don't Care: I get filled

Earnings:

E-Trade - 58.50, ATM straddle ~ 2, approx. 3.5% Netflix (from Monday) - 307, ATM straddle ~ 28, approx. 9%

Odd Block: Well-times paper in VIX (VIX). Put love in Market Vectors Semiconductor ETF (SMH). Deep ITM calls in NXP Semiconductors NV (NXPI). Call spread in Alcoa Corp (AA).

Mail Block: Last week's options question of the week.

SPOT is the latest hot IPO to join the Options market. So many recent Options listings started off hot then suddenly cooled so we have to ask - which hot recent IPO will you be slinging Options on in 2019?

38% - SPOT 16% - DBX 41% - SNAP 5% - Other

This week's options question of the week:

VIX is back in the mid-teens. Are you buying this Volatility reprieve or is this merely calm before the storm? Quite simply - Where do you think VIX will end the week?

Here: 16-18 Higher: 18-20 Even Higher: 20-25 Lower: 14-16

Listener questions and comments:

Comment from J3dingle -Mark, do you realize this is what almost won your Broker Madness tournament? Question from Dhasone Riley -I have a general question because I'm struggling with hedges. Do most people buying calls or put options as hedges, hedge in, at or out the money?

Around the Block: ETrade rallied a bit after earnings, but still a meh. The more exchanges the better? Silver is moving again. Will the maket move back above 2700? Sebas is more bullish than Tosaw.

Option Block 708: VIX Is Dead...Long Live VIX

Apr 17, 2018 01:00:04

Description:

Trading Block: What is happening that might move the markets?

Calm coming soon? A silent Trump Twitter account helps. A calmer backdrop for equities would bring pain to speculators, or more kindly, reduce the value of their hedges. Earnings Season Is Set to Crush Volatility Once Again

Earnings:

Monday - Netflix (after the bell) $307, ATM straddle $28, approx. 9% Tuesday - IBM, Johnson & Johnson, United Wednesday - American Express, Alcoa, Abbott Thursday – E*Trade Friday - GE, P&G, Honeywell, Waste Management

Odd Block: More Jan 2019 50 "catastrophe" puts in Tesla Motors (TSLA). Closing roll to puts in Yandex NV (YNDX). Call love in Devon Energy Corp (DVN). Short puts in PagSeguro Digital Ltd (PAGS).

Strategy Block: Uncle Mike Tosaw discusses synthetic trades.

Around the Block/Economic Reports:

Apr 16 - Retail Sales, Business Inventories, Treasury International Apr 17 - Housing Starts, Industrial Production Apr 18 - Beige Book Apr 19 - Jobless Claims

Option Block 707: When to Roll Short Puts

Apr 13, 2018 58:00

Description:

Trading Block: A look back at what moved the market this week

Volatility ETFs nearly double. Top Performing ETFs of the Year Bitcoin’s Price Jumps $1,000 In 30 Minutes Of Market Growth Across The Board Why Bitcoin Behaves Like the Flu

Odd Block: More Jan 2019 50 "Catastrophe" puts in Tesla Motors (TSLA), sweep puts in CNH Industrial NV (CNHI), line in the sand puts in L Brands Inc (LB), call butterfly in Facebook (FB)

Strategy Block: ;Uncle Mike Tosaw discusses when to close shorts

Mail Block: Options question of the week

SPOT is the latest hot #IPO to join the #Options market. So many recent #Options listings started off hot then suddenly cooled. So we have to ask - which hot recent #IPO will you still be slinging #Options on in 2019?

SPOT DBX SNAP Other (Reply/DM w/choice)

Listener questions and comments:

Question from Ladmos - Feeling the pain on this TSLA rundown. Probably should have rolled my puts last week rather than waiting for this week when they are now ITM. If stock hits $295 then I’m definitely pulling the trigger. How do you guys determine when to roll? Is it stock based or option price/volatility based? Question from Bob Thompson: I would like to know the best options strategy to use with a small account? Around the Block/Economic Reports: Apr 13: Consumer Sentiment, JOLTS

Option Block 706: VIX Likes Stormy Daniels

Apr 10, 2018 01:01:47

Description:

Trading Block WWE stock selling off post Wrestlemania - still very lofty. Big contracts today - April 34 puts and April 40 calls. Spotify options starting on April 9. Big launch day for Dropbox with nearly 10k contracts.

Odd Block: Some of the stranger paper we saw trade today

More Jan 2019 50 "Catastrophe" puts in Tesla Motors (TSLA) Weekly call palooza in GameStop Corp. (GME) Someone spooked in VanEck Vectors Russia ETF (RSX) Rolling down calls in Yandex NV (YNDX)

Mail Block: Options question of the week

SPOT is the latest hot #IPO to join the #Options market. So many recent #Options listings started off hot then suddenly cooled. So we have to ask - which hot recent #IPO will you still be slinging #Options on in 2019?

SPOT DBX SNAP Other (Reply/DM w/choice)

Listener questions and comments:

Question from Mark Davis - Hello, I have written in previously and got some great feedback on my question, so hoping you can help me out again.I am still playing (paper trading) with options while in my real account I purchase shares outright. After having quite a few good years, with the increase in volatility lately I have taken some pretty rough hits, so far for the YTD I lost about 16% of my portfolio. I should also mention I currently only deal with Index funds (S&P, International, & Small cap). I go in and out of these stocks based on various parameters that may have me holding a certain stock for less than a month to a little more than a month. Is your stock replacement strategy a good use for this or maybe not since time horizon is generally not long. Example. Tomorrow I may buy 100 Shares of SPY @ 25 each, likely selling the shares in about 20 days. I am trying to figure a way to get the same (or close to same) movement as if I owned the shares outright while limiting the downside of at least setting a li e in the sand. I am having trouble wrapping my head around the right strategy or if what I want to do is even possible. So in the example above my portfolio had I bought outright and the stock is at 30 in 20 days I'm at $500 but what do I do to get close to this using Options. On the flip side if SPY was at 20, I am thinking there is a way that I would can protect myself from losing some of that $500. Another thing I'm not sure of when doing this should I only be buying enough Contracts that I could afford it were I to exercise the options, i.e. if I have $200 in my account and the underlying is $1/share would I only want to buy 2 calls even though I would ideally have enough money to buy more contracts? Thanks for your feedback

Around the Block/Economic Reports:

Apr 10 - PPI Apr 11 - CPI, FOMC Minutes, Treasury Budget Apr 12 - Jobless Claims Apr 13 - Consumer Sentiment, JOLTS

Option Block 705: The Bulls Strike Back

Apr 6, 2018 59:44

Description:

Trading Block: TSLA - up $50 in a few days. FB up over $7 since yesterday. SPOT options start on April 9. Dropbox has a big launch day with nearly 10k contracts. OCC cleared contract volume up 15% in March.

Odd Block: More Jan 2019 50"Catastrophe" puts in Tesla Motors (TSLA), weekly call-palooza in GameStop Corp. (GME), crazy call spread in Energy Transfer Partners LP (ETP), and call love in Array Biopharma Inc. (ARRY).

Strategy Block: Uncle Mike Tosaw discusses selling a spread vs buying a spread.

Mail Block: Options Broker Madness

The battle is over - there can only be one. Congratulations to the 2018 #Options #BrokerMadness champions @TheTastyWorks! Thanks to all who participated.

Listener questions and comments:

Question from Jilian - The whole inverse volatility thing has me spooked about other inverse ETFs like SQQQ (3X short nasdaq 100), UVXY and SDS (2X short S&P 500). Should I be worried that these can be wiped out next?

Around the Block/Economic Reports:

Apr 4: Jobless Claims, International Trade Apr 5: Unemployment

Option Block 704: The Streets Run With Blood

Apr 3, 2018 01:01:01

Description:

Trading Block: OCC Cleared contract volume up 15% in March. Highest first quarter volume and highest first quarter for equity options on record. Cleared futures average daily volume for quarter up six percent from Q1 2017.

Odd Block: More Jan 2019 50 "Catastrophe" puts in Tesla Motors (TSLA); put-palooza in SPDR S&P Biotech (XBI), call-palooza in GameStop Corp. (GME), and rolling puts in The Hartford Financial Services Group (HIG).

Mail Block: It's the finals!

TastyWorks vs Lightspeed! Comment from MarkClydeBrant1 -Got free options from Robin Hood and very impressed! Super-fast but only cash secured trades for now. Ideal for newbies because everything is explained simply at every step. Pros will love the speed! App trading is the best! Remember SS futures? Ha-ha Comment from KToddMorgan - WNSSS, while a cool new name, haven't fared much better lately. I'm betting that changes, but as of yet, they're getting whacked too.

Around the Block: What are we looking at for the rest of the week?

Option Block 703: Mystery TSLA Puts for the Win

Mar 30, 2018 59:03

Description:

TRADING BLOCK

Is the trade war over? Market back in rally mode. VIX off a few handles. Have the FANGs been de-fanged? Opinion: If the FAANGs have got you down, it's time to win with the WNSSS stocks https://www.marketwatch.com/story/if-the-faangs-have-got-you-down-its-time-to-win-with-the-wnsss-stocks-2018-03-29 Tesla hit $250 yesterday - off over $100 in a few weeks. Facebook annihilation continues - hit $150.80 yesterday.

ODD BLOCK

More Jan 2019 50 "catastrophe" puts in Tesla Motors (TSLA) Call love in Kellogg Company (K) Mid-market love in Eldorado Resorts Inc. (ERI)

STRATEGY BLOCK

The Rock Lobster discusses the "VIX Zone" concept

AROUND THE BLOCK

It's Final Four time!

Battle 1: Tasty vs. Ally Invest (TradeKing) Battle 2: Tradestation vs. Lightspeed

Option Block 702: The Apocalypse Is Over...For Now

Mar 27, 2018 59:18

Description:

Trading Block: The market is back in rally mode, is the trade war over? VIX off a few handles. Tesla breaks the magical $300 level. The Facebook selloff continues.

Odd Block: More Jan 2019 50 "Catastrophe" puts in Tesla Motors (TSLA), funky stupid in MGM Resorts International (MGM), buying Jan upside in Newmont Mining Corp (NEM), and size call sweep in Finish Line Inc. (FINL)

Mail Block: It's Madness

We have 2 more match ups to see who makes it to the #FinalFour of #BrokerMadness. Next up, @TradeStation vs. @IBKR. Second match up for #options #brokermadness #FinalFour placement sees @AllyInvest taking on @RobinhoodApp. @AllyInvest (as TradeKing) won the whole tournament two years ago. Will @RobinhoodApp crush that dream?

Around the Block: Will the uptick continue? What about Facebook?

Option Block 701: Revenge of the Trade War

Mar 23, 2018 57:20

Description:

Trading Block:

The market is tanking on trade war concerns: Trump is at it again. Volatility returns - VIX back in the 20s. The tech selloff continues - FB closed $185 on 3/16 - traded as low as $163.72 today, down nearly 12%. Fed hikes rates as expected. US weekly jobless claims total 226,000, in line with expectations Earnings: NKE: $65.30, ATM straddle - $3.60, approx. 5.5%

Odd Block: Calls trade in Deere & Company (DE), puts trade in CNH Industrial NV (CNHI) and split ticket calls in TC Pipelines LP (TRP).

Strategy Block: Uncle Mike Tosaw discusses selling naked puts

Mail Block: Listener questions and comments

Question from Ed Bankert - Debating on using covered calls or short puts. Which is better for a less experienced options trader who wants to make money? Question from Scott Somer‏ - WMT now below 100 premarket @Options @OptionPit @OptionVol How is that proposed @CBOE premarket earnings related equity options pilot going?

Around the Block/Economic Reports

Mar 23: Durable Goods, New Home Sales

Option Block 700: The Soft Underbelly of the Market

Mar 20, 2018 59:32

Description:

Trading Block: VIX is back in the 20's. Facebook is taking it on the chin as Russia fallout continues - down 7% and leading other tech stocks into the toilet. Fed Meeting with New Chairman on Wednesday. Earnings: Oracle - ATM straddle - $2.75, over 100k contracts on the tape.

Odd Block: Call palooza in Olin Corporation (OLN), put palooza in UnitedHealth Group Inc. (UNH), split ticket puts in Criteo SA (CRTO).

Mail Block: Vote in our Options Broker Madness competition each day by going to @Options on Twitter.

Results:

Interactive Brokers vs. Sogo - Interative Brokers TDAmeritrade (TOS) v. Choice Trade - TD Ameritrade Schwab (OptionsXpress) v. Tastyworks- Tastyworks Fidelity v. RobinHood- RobinHood Lightspeed v. eOption- Lightspeed E-Trade (OptionsHouse) v. TradeHawk- E-Trade

Listener questions and comments:

Question from Malthe Have Musaeus:If I buy a call option and afterwards sell it for a profit, I'm not the one obligated to sell 100 shares if that option is exercised later right? How do I close my call option position completely and take my profit/loss? Question from The Chazz - What do the option block all-stars think the skew will look like in bitcoin options? Question from Jack K. -How do people afford to sell puts in TSLA? In order to do any size (like a 10 lot) you have to be able to put up the cash to buy 330k worth of stock. Even a one lot costs 33k. Maybe we need some minis on TSLA?

Around the Block/Economic Reports:

Mar 21 - Existing Home Sales, FOMC Meeting Mar 22 - Jobless Claims Mar 23 - Durable Goods, New Home Sales

Option Block 699: Rihanna Clabpack Tanks SNAP

Mar 16, 2018 58:35

Description:

Trading Block: Looking back at the week's news:

US weekly jobless claims total 226,000, in line with expectations Dow up more than 200 points, attempts to snap 3-session skid, as Boeing's stock rises ToysRUs closing all stores. iHeartMedia files for Chapter 11 bankruptcy. SNAP tanks due to controversial Rihanna ad on platform. Spotify says it will begin trading shares April 3.

Strategy Block: Uncle Mike Tosaw discusses limit orders

Mail Block: Listener questions and comments

Question from Matt M. - Why does Mark always say that Andrew doesn't understand expiration of vertical spreads in SPX? Is that true or some inside joke I missed? Question from Jello Fan - VXX 1-yr 50% OTM puts plus VIX 3 month 15% OTM call verticals - 5 or 10 handles wide. Is that the secret sauce?

Around the Block/Economic Reports:

Mar 16: Housing Starts, Consumer Sentiment, JOLTS

Option Block 698: Madness

Mar 13, 2018 58:09

Description:

Trading Block: Discovering the plight of liquidity providers at CBOE RMC today. It's ironic timing since Spot Trading just shut down. Potentially changing tick sizes in VIX futures and options. VIX options breakdown is 90/10 standard vs weekly volume.

Odd Block: Line in the sand puts in Dick's Sporting Goods Inc (DKS). Buying more Tim in Johnson Controls International (JCI). Size put/call kickers in The Western Union Co (WU)

Mail Block: It's madness!

The Options Insider: It's time for our annual Options Broker Madness Tournament! Reply/DM to nominate your broker to compete in this year's BrokerBattle. 16 firms can enter....but in the end there can be only one. Get your nominations in now & prepare to battle. Broker Madness starts 3/12. Question from Scott Somer -VolView The $VIX Apr 29-35 call spread is going for about 40 cents, are you more willing to buy or sell it to open? Comment from Oscar Stanko:Hi Mark. I am an avid listener to your options podcasts and wanted to sincerely thank you for your time and energy you've put into creating this valuable (and often humorous) content! Question from BigBlanc -I'm liking the VXX erosion play. Question though - Why does everyone talk puts on this trade? Why not selling calls or call spreads? Or maybe the combo - buying puts and selling calls or call spreads? Any back tests on that?

Around the Block: What's coming up this week?

Option Block 697: Delicious Futures Melt

Mar 9, 2018 59:13

Description:

Trading Block: Markets unchanged mid-day. VIX back around the 17-handle. A rundown of CBOE RMC.

Earnings: Highlights:

Friday- Revlon, Big Lots A lot of big box retail this week, too - Costco, Target, Kroger, etc.

Odd Block: More Jan 2019 50 "Catastrophe" puts in Tesla Motors Inc (TSLA). Line in the sand puts in Victoria's Secret (LB). Size call fly/roll in Electronic Arts (EA).

Strategy Block: Mike Tosaw discusses rolling SPY puts.

Mail Block: Are you ready for Broker Madness?

The Options Insider: It's almost time for our annual Options Broker Madness Tournament! Nominate your broker to compete in this year's #BrokerBattle. 16 firms can enter....but in the end there can be only one. Get your nominations in now & prepare to battle. #BrokerMadness starts 3/12. Question from CVT -The Rock Lobster suggested other ways to play VXX erosion other than buying puts. What was he talking about?

Around the Block/Economic Reports:

Mar 9: Unemployment

Option Block 696: Trade War, Plus More SVXY Debate

Mar 7, 2018 01:04:14

Description:

Trading Block: Today we feature special guest host Lex Luthringshausen founder and CEO of Tradehawk, powered by Option Eyes.

Headlines of the day:

What trade war? SPX up over 1% intraday. VIX is back into the teens.

Earnings Highlights:

Tuesday - Target Wednesday - Dollar Tree, Costco Thursday - Kroger Friday - Revlon, Big Lots

Odd Block: More JAN 2019 50 "Catastrophe" puts in Tesla Motors Inc (TSLA). Trade war sparks put roll in Materials Select Sector SPDR (XLB). Long-term call action in Ultra Petroleum Corp (UPL).

Mail Block: Listeners have their say

It's almost time for our annual Options BrokerMadness Tournament! Reply/DM to nominate your broker to compete in this year's BrokerBattle. 16 firms can enter....but in the end there can be only one. Get your nominations in now & prepare to battle. BrokerMadness starts 3/12. Comment from AlphamakerChris - A lot of people were robbed in their sleep, it's absolutely disgraceful. They should've given several weeks notice, not 1 day. People lost fortunes overnight for reasons not of their own doing. Comment from Scott Somer - NO fun if you were long anything accept deep ITM Options on SVXY or UVXY. Highlights unexpected danger of trading options on leveraged products.  TVIX TVIZ...Would have caused disorderly option markets if they did during the trading day. SVXY UVXY Shot across the bow if you are trading options on VolocityShare products as well....Wonder how many of them took people to "The Horse"? Question from Stifl - Great show. Agree with Mark about the OI change graph in LiveVol it's very useful. Only problem is that it only goes back a few months. Any tools out there that go back farther? Comment from DannyBzak - These funds are tracking an index. The index itself was down 96% on 2/5. This is a flaw in index design, not a fund problem. ETP's just can't decide to suddenly not track the index they are mandated to track. Someone needs a better mousetrap to track short vol in index form….Or a more realistic conclusion is that short vol is not a realistically scalable concept in index/ETP form. IMO short vol is something that is better served by active management, not a passive index...Which is the design flaw of thinking one should make an index designed to replicate a short position on anything. In reality someone who is smart enough to be short is smart enough to manage the risks of being short. These indexes have zero risk management built in.

Around the Block/Economic Reports This Week

Mar 6: Factory Orders Mar 7: International Trade, Productivity and Costs, Beige Book Mar 8: Jobless Claims Mar 9: Unemployment

Option Block 695: Talking Trade Wars and SVXY Debacle

Mar 3, 2018 01:04:27

Description:

Trading Block: Trump's trade war is spooking the market. SPX off nearly 2%. VIX is back into the 20s. Equity Markets: It's worth noting that at a forward P/E ratio of just over 17x for the S&P 500, valuations do not appear to be stretched. The great SVXY debacle. The numbers are in for February, and they were good (surprise).

Odd Block: More Jan 2019 50 "Catastrophe" puts in Tesla Motors Inc. Puts roll in iShares S&P 500 Index Fund (XSP). Bullish call love in Salesforce (CRM).

Mail Block: Options question of the week.

There's much debate about SVXY these days. Will it survive 2018? Is it poised for serious upside? We'll table those questions for now and instead ask all of you out there slinging SVXY - what is your weapon of choice? Reply/DM with other suggestions.

59% - Naked Long SVXY 22% - Long SVXY Calls/Spreads 10% - Long SVXY Puts/Spreads 9% - Long SVXY w/ Put Hedge

Volatility FlashPoll. Three weeks ago out audience was evenly split on whether SVXY would survive 2018. But the recent changes to its investment objectives have us asking once more - Do you think SVXY will survive 2018?

50% - Yes 24% - No 26% - I'm done with inverse VIX Comment from Matt Thompson - Everyone say thank you to ProShares for de-levering SVXY for a day like today.

Around the Block/Economic Reports:

Mar 1: Jobless Claims, Personal Income Mar 2: Consumer Sentiment

Option Block 694: Let's all Trade SVXY

Feb 28, 2018 01:03:14

Description:

Trading Block: Earnings Highlights

Monday - Fitbit Tuesday - Macy's, Lumber Liquidators, Priceline.com, Weight Watchers, Papa John's Wednesday - Valeant, Lowe's, Mylan, Crocs Thursday - Best Buy, Kohl's, AMC Entertainment, Barnes & Noble, Nordstrom Friday - JCPenney, Foot Locker

In other news:

Warren Buffett: 'We've bought more Apple than anything else' in the last year Nearly half of 2017's Cryptocurrency 'ICO' Projects Have Already Died

Odd Block: More Jan 2019 50 "Catastrophe" puts in Tesla Motors Inc. (TSLA), size "line in the sand" in Dicks Sporting Goods Inc. (DKS), bullish risk reversals in American International Group Inc. (AIG), and size calls in Regions Financial Corp. (RF)

Mail Block: Options question of the week

There's much debate about SVXY these days. Will it survive 2018? Is it poised for serious upside? We'll table those questions for now and instead ask all of you out there slinging SVXY. What is your weapon of choice? Reply/DM with other suggestions.

Naked Long SVXY Long SVXY Calls/Spreads Long SVXY Puts/Spreads Long SVXY w/ Put Hedge Comment from Vixland‏ - Tight Covered Calls !!!!!!!!!!!!

Listener questions and comments:

Question from Mark Brandt - Has OIR discussed Peter Thiel buying $240M of SVXY puts days before the vol spike? He is smart but that smells fishy. Comment from Matt Williamson - @OptionVol $431 outlay ($430 for the covered spread, $1 for the put) to make $69.69/431 = 16% less assignment fees (likely just a few in large blocks) and commissions. Comment from CheeButter - We've been waiting for this day - RE: VIX EXPLOSION LAST WEEK Question from Allanc - What are the odds of a reverse split for SVXY?

Around the Block/Economic Reports:

Feb 26: New Home Sales Feb 27: Durable Goods, International Trade, Consumer Confidence Feb 28: GDP Mar 1: Jobless Claims, Personal Income Mar 2: Consumer Sentiment

Option Block 693: Back in the Saddle Again

Feb 24, 2018 01:03:35

Description:

Trading Block:

Half-time report for earnings: INTU - $173, ATM straddle - $10.50, approx. 6% GDDY - $55.45, ATM straddle - $4.30, approx. 7.8%

Odd Block:

More Jan 2019 50 "Catastrophe" puts in Tesla Motors Inc. Puts roll in iShares S&P 500 Index Fund (XSP) Size 1x2s in ILG Inc. (ILG)

Strategy Block: Mike Tosaw discusses the 1x2 ratio call spread

Around the Block: What are we looking at for the upcoming week?

Option Block 692: Mixing Things Up A Bit

Feb 17, 2018 01:01:14

Description:

Trading Block: Is the VIX "Whistleblower" just more noise or it there some teeth this time? Volatility's awakening spurs record long position in VIX futures.

Strategy Block: Discusses legging into OTM vertical call spreads

Odd Block: More JAN 2019 50 "Catastrophe" puts in Tesla Motors (TSLA), long-term put love in Community Health Systems (CYH), and calls trade in Radian Group Inc. (RDN).

Mail Block: Options question of the week

It's been a rocky week for the markets. People are understandably scared and confused. That raises the question: Which product are you most concerned about over the next 30 days? Which product would you not touch with a 10-foot pole?

VIX SVXY SPY Bitcoin: XBT, BTC, etc.

Listener questions and comments:

Comment from Matt Williamson - Good guesses and discussion. It's much simpler. $5 covered calls trading for $4.30. Again, why? How? Buy the $5 put and arb for 15% ROI!...Sure. I bought some 15s, some 20s, some 5s. Guess no one is concerned about a 97% correction over the next year... Question from J3dingle - Hi Mark, In yesterday's Option Block, you said you personally took an options position in SVXY. I was curious, if you could say, what kind of position a pro takes. Thanks, Joseph Comment from Scott Somer - Another day another day with a very large sell off heading into the start of the Option Block and an up move in the S&P Futures during the "Trading Block" #OptionInsiderRadio #OptionBlock #GreasyMeatball #RockLobster...If we get a Rule 80B Sell off, that will finish off $SVXY unless second month VIX Futures are north of 40. Comment from MrMagoo‏ - There are no regulators working under Trump. It's a free for all with HFTs eating retailers for lunch.

Around the Block: How will VIX run going forward? S&P closed three points above the 200-day moving average. Can we make another run at the all-time highs?

Option Block 691: The Calm After the Storm

Feb 14, 2018 01:02:15

Description:

Trading Block: One week later, how is everyone doing? SPY is back in rally mode. VIX back in the mid-20s. It's been a wild week for CBOE. Stock took a hit, threatened $100, now rallying up 4%. Earnings this week include APRN, before the bell tomorrow. ATM straddle $0.65, approx. 20%. Volatility's awakening spurs a record long position in VIX Futures

Odd Block: Review from 2/8: Someone unloading calls in (UNP), Pre earnings action in Under Armor (UAA).

Mail Block: Options question of the week

VIX is moving like crazy today. It's already blown past 23 and is threatening 35. So let's dial up our $VIX threshold for extra #ZombieApocalypse fun. You buying or selling these levels? Quite Simply: Where will $VIX close on Friday?

21% - Crazy Town: 30-35 22% - ZombieApocalypse: >35 19% - Crazy: 25-30 38% - Mildly Crazy:

Option Block 690: Debating XIV and SVXY

Feb 10, 2018 01:01:12

Description:

Trading Block: A review of the week to date.

VIX back up over 30 S&P is back in selloff mode despite decent earnings. We are all now living in a post VIX/Monday selloff world. Everyone is attacking the "Frankenproducts" like XIV and SVXY. VXX was briefly back above its post-split levels. Earnings are getting lost in the macro maelstrom - TSLA, CMG, TWTR, SNAP, ETC Earnings Highlights: NVDA: ATM Straddle - $18, approx. 8% ATVI: ATM Straddle - $5.50, approx. 8% CBOE stock is getting crushed.

Odd Block: More Jan 2019 50 "catastrophe"puts in Tesla Motors (TSLA); Unloading Mar 30 calls in (UNP).

Strategy Block: Mike Tosaw discusses buying the dip

Mail Block: Options question of the week

VIX is moving like crazy today day. It's already blown past 23 and is threatening 35. So let's dial up our $VIX threshold for extra #ZombieApocalypse fun. You buying or selling these levels? Quite Simply: Where will $VIX close on Friday?

Crazy Town: 30-35 Zombie Apocalypse: >35 Crazy: 25-30 Mildly Crazy:

Option Block 689: It's The End of the World

Feb 7, 2018 01:05:31

Description:

Trading Block: Dow loses over 1,000 points on the day. SPX opened at 2,683 on Jan 2. VIX cash now threatening 35! XBT below $7000; good thing for "uncorrelated assets."

Earnings Highlights this Week:

Tuesday - GM, Snap Inc., Walt Disney Company Wednesday - Tesla, ICE Thursday - Twitter, Nvidia, Activision/Blizzard Friday - CBOE

Odd Block: From last Monday: Near-term call paper in (CL)

Mail Block: Question of the week

Holy Crap! $VIX is threatening 23! Is this the beginning of the #ZombieApocalypse or a great time to sell some #Volatility? In a nutshell - how do you think $VIX will finish the week?

Elevated: 21-25 Crazy Town: 25+ Frothy: 17-21 Bubbly: < 17

Updated Question of the Week #2

$VIX is moving like crazy today day. It's already blown past 23 and is threatening 35. So let's dial up our $VIX threshold for extra #ZombieApocalypse fun. You buying or selling these levels? Quite Simply: Where will $VIX close on Friday?

Crazy Town: 30-35 ZombieApocalypse: >35 Crazy: 25-30 Mildly Crazy:

Option Block 688: The Great Earnings Palooza Returns

Feb 3, 2018 59:33

Description:

Trading Block: Earnings! Wednesday's big names: FB, MSFT. Thursday's big names: AAPL, GOOGL, AMZN, BABA. OCC cleared contract volume increased 42% in January; highest January for cleared volume, highest month ever for index options.

Odd Block: TSLA options tracker. Review from Monday's near-term call paper in CL.

Strategy Block: Uncle Mike takes us to strategy school.

Mail Block: Options question of the week, plus listener questions and comments

EarningsSeason is upon us once again! It's time for #Tech to put its best foot forward. Which big #tech names are you looking to sling some #options on this week?

Amazon - $AMZN Microsoft - $MSFT Alphabet - $GOOGL Facebook - $FB

Around the Block/Upcoming Economic Reports:

Feb 1: Jobless Claims Feb 2: Unemployment Feb 2: Consumer Sentiment Feb 2: Factory Orders

Option Block 687: Revenge of Realized Volatility

Jan 31, 2018 01:02:09

Description:

Trading Block: VIX is back into the 13 handle.

Earnings this week:

Wednesday - FB, Microsoft Thursday - Alphabet, Amazon, Apple, Alibaba The ORATS earnings report for 1/29/2018

Odd Block: More Jan 2019 50 "Catastrophe" puts in Tesla Motors (TSLA). Size call diagonal in Anheuser Busch Inbev NV (BUD). Near-term call paper in Colgate-Palmolive Company (CL).

Mail Block: Options question of the week

Earnings Season is upon us once again! It's time for #Tech to put its best foot forward. Which big #tech names are you looking to sling some #options on this week?

Amazon ($AMZN) Microsoft ($MSFT) Alphabet ($GOOGL) Facebook ($FB)

Listener questions and comments:

Question from Michael Smith - Any recommendations on where I can find help on calculating implied move into earnings?

Around the Block/Economic Reports this Week:

Jan 30: Consumer Confidence Jan 31: Chicago PMI, FOMC Meeting Feb 1: Jobless Claims Feb 2: Unemployment, Consumer Sentiment, Factory Orders

Option Block 686: Bridging the ETF-Options Divide

Jan 27, 2018 58:18

Description:

Trading Block: Earnings!

Monday: Netflix Tuesday: Johnson & Johnson, Procter & Gamble, Travelers, Verizon Wednesday: GE, United Technologies Thursday: Caterpillar, 3M, Intel (Caterpillar doing crazy volume today - over 130k contracts on the tape.) Netflix, Intel and Starbucks.

Odd Block: Size near-term put sales in (NWL). Crazy move sparks crazy volume in (MNKD). Size short call roll in (SAN).

Strategy Block: Mike Tosaw discusses his most recent SPY trades

Mail Block: Options questions of the week

Since we're down at #InsideETFs this week we thought we'd make our #Options #QOTW about #ETFOPTIONS. Quite simply - what is your favorite ETF/ETP #option to trade?

$SPY $GLD $VXX Other (reply w/answer)

Bitcoin #Futures are currently trading around $11,500. If #Options existed, how would you trade them? Assuming one-month to expiration would you...?

27% - Buy 5% OTM Call 32% - Buy 5% OTM Put 16% - Sell 5% OTM Covered Call 25% - Just Short The Future

Around the Block: Economic Reports This Week

Jan 26: GDP, Durable Goods

Option Block 685: Shutdown

Jan 24, 2018 58:14

Description:

Trading Block: The Dow sets all-time intraday record as Senate votes to end government shutdown

Earnings This Week:

Monday: Netflix Tuesday: Johnson & Johnson, Procter & Gamble, Travelers, Verizon Wednesday: GE, United Technologies Thursday: Caterpillar, 3M, Intel

Odd Block: Calls and puts trade in Patterson UTI Energy (PTEN). Puts trade in Harley Davidson Inc (HOG). Puts roll in HCA Healthcare Inc (HCA).

Strategy Block: Mike Tosaw discusses buying OTM calls in this current market

Mail Block: Options question of the week

Bitcoin futures are currently trading around $11,500. If #Options existed, how would you trade them? Assuming one-month to expiration would you...?

27% - Buy 5% OTM Call 32% - Buy 5% OTM Put 16% - Sell 5% OTM Covered Call 25% - Just Short the Future

Listener questions and comments:

Question from CharlieC - What's the weirdest thing you've seen in the options market? Question from Markit - What's the truth about all the talk about VIX being moved using SPX puts? Is this a thing? Can you please discuss on the network?

Around the Block/Economic Reports This Week:

Jan 24: Existing Home Sales Jan 25: Jobless Claims, International Trade, New Home Sales Jan 26: GDP, Durable Goods

Option Block 684: Is Uncle Mike Getting Bearish?

Jan 20, 2018 59:31

Description:

Trading Block: VIX at 12.40! In the double digits for the first time in a long while. Earnings season ahead. IBM - $168.70, ATM straddle - $7.20, approx. 4%. A rough start to the year for Bitcoin. Tuesday selloff hits crypto hard.

Odd Block: Yet more Jan 2019 50 "catastrophe" puts in Tesla Motors (TSLA). Massive call party in Guggenheim CurrencyShares Euro Trust (FXE). Size bullish strangle in Kinder Morgan Inc. (KMI). Size put roll in MBIA Inc. (MBI).

Strategy Block: Uncle Mike Tosaw discusses exercising caution in this current market.

Mail Block: Options question of the week.

Which name are you looking forward to trading options on during the upcoming earnings season? Your fav not here? Choose "Other" and send it in. Best will be shared on #OptionBlock

Apple ($AAPL) Tesla ($TSLA) Amazon ($AMZN) Other

Another options question of the week: Bitcoin futures are currently trading around $11,500. If options existed, how would you trade them? Assuming one-month to expiration would you...?

Buy 5% OTM Call Buy 5% OTM Put Sell 5% OTM Covered Call Just Short the Future

Listener Questions and Comments:

Question from PJamesLamar - Can you guys recommend an options platform for active option trader? I'll try to add a link to what I used to be able to do on my old platform but am no longer able to do. But I would like to find another platform that has single click entry and exit for options. If you know one please let me know. Thanks.

Around the Block: IBM off a little over 4%. Earnings. Shutdowns.

Option Block 683: Getting Crude with Pot Stocks and Crypto

Jan 13, 2018 59:02

Description:

Trading Block: Crude is hitting new near-term highs. Brent breaks above 70 for the first time since 2014. Kodak is now a crypto company!?

Odd Block: Massive call party in (FXE); Options-palooza in (XOP); Call frenzy in (XLE).

Strategy Block: Uncle Mike Tosaw discusses risk reversals.

Mail Block: Options question of the week

Another "easy" one to help kick off the New Year. Which name are you looking forward to trading options on during the upcoming earnings season? Your fav not here? Choose "Other" and send it in. Best will be shared on #OptionBlock.

Apple (AAPL) Tesla (TSLA) Amazon (AMZN) Other

Options Flash Poll: The options industry insists that things have never been better for retail traders. Do you agree?

Yes No

Options Flash Poll, Part Deux: Overhead at @stachicago: We need a #speedbump in #Options to create a "level playing field" for all participants. Agree?

Yes No What is a #speedbump?

Around the Block: Earnings! JPMorgan Chase (JPM) and Wells Fargo (WFC) release results before market open on Friday, January 12.

Option Block 682: INTC Insider Trading, Plus NVDA, TSLA, F and More

Jan 10, 2018 01:04:36

Description:

Trading Block: Nvidia stocks rises on new of chips being used in handle processing of driverless cars. Intel was aware of the chip vulnerability when its CEO sold off $24 million in company stock & options.

Odd Block: More Jan 2019 50 "Catastrophe" puts in Tesla Motors (TSLA). Massive call party in Guggenheim CurrencyShares Euro Trust (FXE). Buying more time in Johnson Controls International PLC (JCI)

Mail Block: Options question of the week

2017 was the "Year that Volatility Died." So our 1st #QOTW for 2018 is a puzzler: Where do you think $VIX will close at the end of the year?

16% - Between 7.5-9.99 35% - Between 10- 12.49 13% - Between 12.50 -14.99 36% - Above 15

Listener questions and comments:

Question from Ensco8651: Question for the Option Block crew. As learned from this program, cash secured puts are a great way to enter a position on a stock I want to own. Just recently, I sold 2 puts with a strike price of $24. At expiration, the stock was at $23.95 so I anticipated getting 200 shares assigned to me but only received 100. Upon contacting my broker, he explained that the holder of the other 100 shares had a "do not assign" flag on them. Please clarify. I don't believe I have to "option" to not accept the shares if they fall below the strike price. Why should he have the "option" to not assign the stock to me? Thanks guys, GREAT show.

Around the Block: Earnings are on the horizon. Will the SPX hit 2800 by the end of the week? Ally Invest clients are talking about options as protection. Momentum is ridiculous going into earnings.

Option Block 681: The Great 2018 Kick-Off Show

Jan 6, 2018 01:02:32

Description:

Trading Block: The numbers are in for 2017

OCC announced 2017 volume reached the third highest total cleared contract volume ever with 4,327,576,930 contracts, a 4% increase from 2016. December cleared volume was 346,006,092 contracts, up 3% from December 2016. OCC also reported record-breaking 2017 volume for cleared futures with 138,029,762 cleared contracts; a 32% increase from 2016. What were our top 5 Option Block episodes for 2017? Odd Block: Call spreads trade in (EWJ); Funky ratio call spreads in Marriott; Calls closing out in (DWDP).

Mail Block: Listener feedback

Our final options question of the week for 2017 was an easy one. Quite simply: What is your enduring market memory/event/trend/etc. of 2017? Have a suggestion of your own? We encourage you to choose "Other" and send in your thoughts. We'll share the interesting ones on the network. Happy New Year!

16% - Death of Volatility/VIX 32% - Rise of Bitcoin 49% - The Unstoppable Bull 3% - Other

2017 was the "Year that Volatility Died." So our first options question of the week for 2018 is a puzzler. Quite simply: where do you think $VIX will close at the end of the year?

Between 7.5-9.99 Between 10-12.49 Between 12.50-14.99 Above 15

Listener Questions and Comments:

Question from Scott Somer - At 11 AM on December 22, RIOT stock traded at 24.20 , normally you would expect the 23 call to trade for 1.20 more than the 23 put, this morning the January 19th 23 calls were only trading TEN CENTS above the 23 put, Am I missing something for this to be normal pricing? Or is there something else I need to know about this? With this stock at 4.24, I can buy a June 5 call and Sell a June 5 put for a credit of 2.30. Looks like I'm getting the stock for 2.70. What am I missing since we now the options market does NOT give money away? Comment from MCgILLmONTREAL -Had a question regarding $GIL and two large 3K 30 strike puts on 10/9 with earnings 11/2. Can you guys explain any rationale around that? Had a question regarding $GIL and two large 3K 30 strike puts on 10/9 with earnings 11/2. Can you guys explain any rationale around that?

Around the Block: VIX. Earnings are coming. Dow 25,000. SPX 2700. Non-farms. Will there be a sell-off in Q1?

Option Block 680: 2017 Year-End Palooza - All Smoke, No Fire

Dec 30, 2017 01:00:24

Description:

Trading Block: Review of the last trading day of the year. VIX barely holding on to double digits. Big meh into the end of the year. Silver is on a tear. The highs and lows of Bitcoin. Cboe announces six Bitcoin ETFs. Uncle Mike creates a new product...Fitcoin.

2017 Year-in Review: The good, the bad, and the unexplicable.

Final Options Question of the Week for 2017: What is your enduring market memory/event/trend/etc of 2017? Have a suggestion of your own? We encourage you to choose "Other" and send in your thoughts.

Death of Volatility/VIX Rise of Bitcoin The Unstoppable Bull Other: Reply/DM w/ ideas Comment from OptionsAlliance: The surprise resurgence of #options volume in 2017. Comment from OliveWanaBroker: The oats bull market. Very important. Uncle Mike's silver collar was not, in fact, the second coming of AAPL. All smoke, no fire Crypto fever

Odd Block: Crazy paper from the year

TSLA options tracker: The explosion of interest in TSLA catastrophe puts. OI exploded in 2017. Interest also expanded to Jan 2020 50 puts. The 250,000 contract VIX three-way, rolled thrice Extended Stay America - giving up the ghost The way-out-of-the-money gold trade with a further out-of-the-money kicker.

Strategy Block: Uncle Mike waxes poetic about his trading strategy from 2017

Around the Block: Will the outlier trends continue? Andrew brings us down with debt talk. What would it take for volatility to return to normal?

Option Block 679: Bitcoin and Levered SPY Risk Reversals

Dec 23, 2017 01:02:38

Description:

Trading Block: NKE after hours. ATM straddle - $3.40, approx. 5%. Looking back on 2017: The year without volatility.

Odd Block: More Jan 2019 50 "Catastrophe" puts in (TSLA). Size roll/diagonal in Autodesk Inc. (ADSK). Size call party in First Data Corp. (FDC). Closing call party in Blackstone Group LP (BX).

Strategy Block: Uncle Mike Tosaw discusses his most recent trading strategy in SPY.

Mail Block: Options question of the week.

Now it's a party! Bitcoin futures are live on both CME Group and CBOE. But everyone's asking us the $1M question, "When will we get Bitcoin Options?" So we thought we'd ask you: When will we be able to trade options on these futures?

Q1 2018 Q2 2018 Q3 2018 Q4 2018

Breaking News Poll: Are you interested in the new Bitcoin futures, except you hate futures? Maybe an ETF is more your speed? Are you interested in trading the new Bitcoin ETF announced today by ICE?

Yes No I prefer the Futures This is getting crazy!

Listener questions and comments:

Comment from Tom - Let's be honest. If any of us had size Bitcoin we would have sold out ages ago and probably be kicking ourselves right now.

Around the Block/Economic News: Dec 22: Durable Goods, Personal Income, New Home Sales, Consumer Sentiment

Option Block 678: Is Donald Trump Long Bitcoin?

Dec 20, 2017 01:03:35

Description:

Trading Block: JPMorgan is lighting up Twitter. It's one of the bank's best ideas for 2018. A lot of div plays lighting up the tape today. Now it's a party! CME Bitcoin futures are live! Volume a little lighter in XBT now. Taleb is not a fan of Bitcoin - at least not without options. Petterrfy also hates Bitcoin - but it didn't stop him from buying ads on the futures.

Odd Block: More Jan 2019 50 "Catastrophe" puts in Tesla Motors (TSLA). Size call party in Regions Financial Corp (RF). Ratio call vertical in CSX Corporation (CSX). Rolling puts in Synchrony Financial (SYF).

Mail Block: Time to hear from you.

This week's Options Break: Finally seeing Star Wars "The Last Jedi." Did you see it? What did you think?

24% - Better than Force Awakens 24% - Worse than Force Awakens 39% - Not a Star Wars fan 13% - Better than Empire

Options Question of the Week: Now it's a party! Bitcoin futures are live on both CME Group and CBOE. But everyone's asking us the $1M question - "When will we get Bitcoin Options?" So we thought we'd ask you - When will we be able to trade options on these futures?

Q1 2018 Q2 2018 Q3 2018 Q4 2018

Listener questions and comments

Question from LLN8 - What products would you like to see on the bitcoin/crypto front? Comment from TMal - Rumors that Donald Trump is long Bitcoin, hence why he hasn't opined on the big story of the year.

Around the Block/This Week in the Market

Dec 19: Housing Starts Dec 20: Existing Home Sales Dec 21: Jobless Claims, GDP Dec 22: Durable Goods, Personal Income, New Home Sales, Consumer Sentiment

Option Block 677: Bitcoin Is Destroying the World

Dec 16, 2017 56:45

Description:

Trading Block: Volume is a little lighter in XBT now. Taleb is not a fan of Bitcoin, at least not without options.

Apparently Bitcoin is destroying the world.

Question of the week: Everyone's caught Bitcoin fever these days. The first "real" futures launched at CBOE. Our question is simple - are you going to trade them this week?

Heck Yes! Hell No! I already traded them Sticking w/Coinbase et al

Odd Block: Closing vertical w/ puts in Time Warner Inc. (TWX). Closing upside calls in Symantec Corp. (SYMC). Size ITM put roll in Sanchez Energy Corp. (SN)

Mail Block: Options question of the week

Options during earnings is a coin flip. But you know you love to do it. What's your earnings options MO?

Buy Calls/Call Spreads Buy Puts/Put Spreads Sell Puts/Put Spreads Fly/Iron Fly/Iron Condor

Listener Questions: What's on your minds?

Comment from Tom - Let's be honest. If any of us had size bitcoin we would have sold out ages ago and probably be kicking ourselves right now. Question from GiddyFranciscan - Sell in May and go away. What option strategy benefits from the profound market malaise that occurs over the summer? Question from KBX32 - What is the cheapest way to hedge my portfolio with options?

Around the Block/Economic Reports:

Dec 15 - Industrial Production

Option Block 676: Everyone Has Bitcoin Fever

Dec 13, 2017 01:02:06

Description:

Trading Block: We are living in the Bitcoin futures world. At 5:00 pm CT on Sunday, XBT futures opened at $15,000 and 890 contracts were traded by 7:15 pm. Total volume Sunday overnight was a reported 3,001 contracts, with nearly 20 trading firms actively participating.

Apparently Bitcoin is destroying the world.

Options Question of the Week: Everyone's caught Bitcoin fever these days. The first "real" futures launched today on CBOE. Our question is simple - are you going to trade them this week?

Heck Yes! Hell No! I already traded them Sticking w/Coinbase et al

Odd Block: More Jan 2019 50 "catastrophe" puts in Tesla Motors Inc. (TSLA). Put-palooza in GameStop Corp. (GME). Call love in Nucor Corporation (NUE). Cheapie call roll in Glu Mobile Inc. (GLUU).

Mail Block: Last week's option question of the week

The war for Bitcoin derivatives is heating up again. CME Group is launching futures on 12/18. CBOE just announced a 12/10 launch date. Not enough? Nasdaq also announced futures with a planned Q2 2018 launch. With so many choices-How will you trade Bitcoin in 2018?

50% - CBOE Futures 12/10 28% - CME Futures 12/18 3% - Nasdaq Futures Q2 2018 19% - "Old School" Bitcoin

Listener questions and comments:

Question from WillyCat9 - Hi Mark great show keep up the good work! I am used to a diagonal call spread being buying a longer term call with lower strike while selling a shorter term call with higher strike, much like a covered call. However, the TOS platform option scanner often generate a diagonal spread with buying shorter long call while selling the longer term. Can you explain the difference between the two? Why is the TOS identifying selling the longer term while buying the shorter term as high probability trade? I want to trust the TOS scanning result but it seems kind of risky. Would love to hear your thoughts, Thanks! Question from Taj Penaso - Hi, will there be options for bitcoin once the futures are traded?? Or just the futures until there are tradeable ETFs available? Thanks

Around the Block/Economic Reports:

Dec 12 - PPI, Treasury Budget Dec 13 - CPI, FOMC Meeting Dec 14 - Jobless Claims. Retail Sales Dec 15 - Industrial Production

Option Block 675: Talking Skew, VIX, TSLA, Bitcoin, Taxes and More

Dec 9, 2017 01:00:49

Description:

Trading Block: Someone has the gall to downgrade Tesla, but the stock still rallies. OCC Cleared contract volume increased 1% in November. It was the highest November ever for options volume.

Odd Block: Jan 2019 50 "Catastrophe" puts in Tesla Motors Inc. (TSLA) Paper doubling down in (JBLU). Calls trade in Union Pacific Corp (UNP). Puts trade in Amgen, Inc. (AMGN).

Strategy Block: Uncle Mike Tosaw discusses how to trade skew.

Mail Block: Options question of the week.

The war for Bitcoin Derivatives is heating up again. CME Group is launching futures on 12/18. CBOE just announced a 12/10 launch date. Not enough? Nasdaq also announced futures w/ for a planned Q2 2018 launch. With so many choices-How will you trade Bitcoin in 2018?

CBOE Futures 12/10 CME Futures 12/18 Nasdaq Futures Q2 2018 "Old School" Bitcoin

Listener Question:

Question from Scott Somer -How would movement to treat capital gains to FIFO for the underlying stocks be good or bad for the options market?

Around the Block/Economic Reports:

Dec 7: Jobless Claims Dec 8: Unemployment, Consumer Sentiment

Option Block 674: Bitcoin Battles and Long Options Debate

Dec 6, 2017 01:03:12

Description:

Trading Block: GOP tax plan passes the Senate. CBOE Plans December 10 Launch of Bitcoin Futures Trading

Odd Block: Size OTM call paper in Plains GP Holdings LP (PAGP). Funky ratio verticals/stupid in Him Technologies Inc. (HIMX). Weird backwards post-earnings roll in L Brands Inc. (LB).

Mail Block: Options question of the week

The war for Bitcoin Derivatives is heating up w/ both CME Group and CBOE jumping into the fray. How do you think you'll be trading Bitcoin in 2018?

CME BRR Futures CBOE Gemini Futures Stick w/ Regular Bitcoin Still don't trust Crypto

Listeners weigh in:

Question from The Financial Grynch - Do you REALLY reckon long options is profitable?

Around The Block/ Economic Reports:

Dec 4: Factory Orders Dec 5: International Trade Dec 6: Productivity Costs Dec 7: Jobless Claims Dec 8: Unemployment, Consumer Sentiment

Option Block 673: TSLA, XRT, CZR, Olive Garden Babies and More

Dec 2, 2017 01:01:52

Description:

Trading Block: Dow sets new record by hitting 24,000 and SPX hits 2,657. This was the fifth 1,000-point milestone for the Dow this year, first hitting 20,000 on Jan. 25. The market is still in rally mode, awaiting tax deal. North Korea unable to spook the market.

Question from Henry Gannett - Is $VIX way up today due to call buying/pricing? It's at 11.70 right now, instead of maybe 9.0 at other, recent SPX all-time highs. The VIX is umbrage-ing me right now!

Odd Block: More Jan 2019 50 "Catastrophe" puts on the tape yesterday - OI breaks 30k. Funky ratio risk reversal in SPDR S&P Retail ETF (XRT). Put spread vs. near-term calls in Aetna Inc. (AET). Near-term Dec call love in Caesars Entertainment Corp. (CZR).

Strategy Block: Uncle Mike Tosaw discusses buying front month OTM calls and the power of gamma.

Mail Block: Listeners weigh in

Options question of the week: SPY always dominates the options volume charts. But what do you think people are actually trading in SPY? Take a guess at the Top OI position in SPY right now. No cheating (or checking with your broker) - use your grey matter & your "gut" to pick the right one.

Jan 262 Call Dec 2019 150 Put Dec 280 Call Jan 240 Put

Questions and comments:

Comment from FContangotrader - @OptionPit @Options @OptionVol The best way to show off your Italian heritage :) gluten free. RE: Couple names first child after Olive Garden. Question from Real Yute - I see that every strike have its own bid and ask prices, with different volatility. Now my question is.....can options be day trade....are scalped just like with stocks...? Are is volatility only move few times maybe a month....are from the options market open....the prices for options (strikes) will start to change just like how its changing in the stock market....?

Around the Block/ Economic Reports this Week:

Nov 30: Jobless Claims, Personal Income Dec 1: Construction Spending

The Option Block Episode 672: Comfortably Craptastic

Nov 28, 2017 01:01:49

Description:

The Trading Block: SQ and QCOM dominating the options charts today. Looks like QCOM activity is actually a dividend play. Light on earnings this week. Goldman execs cash out decade-old options just days before they expire.

The Odd Block: TSLA tracker; Weird house-money put roll in WDC; Tons of Dec 26 puts in DKS; Size near-term call love in NEM.

The Mail Block: Options question of the week

SPY always dominates the #options volume charts. But what do you think people are actually trading in SPY? Take a guess at the top OI position in SPY right now. No cheating (or checking with your broker) - use your grey matter and your "gut" to pick the right one.

Jan 262 call Dec 2019 150 put Dec 280 call Jan 240 put

Listener questions and comments

Question from PBiggers‏: how will the market react if the tax bill fails to pass in the senate on Thursday? Bullish, modest correction or major correction? Comment from Robert Baker: in response to your questions regarding TSLA catastrophe puts Jan 19 $50; I believe that they are insurance policies for model 3 depositors to recover their $5000 deposit in the event that Tesla goes bankrupt. After all, it's the cheapest form of insurance because the $50 put will be worth $5000 if TSLA goes to zero. Keep up with your show - it's fun.

Best of Option Block

Nov 25, 2017 58:55

Description:

We are not letting the Thanksgiving holiday get in the way of you getting your Option Block fix on.

Option Block 670: Thanksgiving Listener Question Palooza

Nov 22, 2017 01:02:12

Description:

Mail Block: It's all listener questions and comments today

Options question of the week: The war for Bitcoin Derivatives is heating up w/ both CME Group and CBOE jumping into the fray. How do you think you'll be trading Bitcoin in 2018?

CME BRR Futures CBOE Gemini Futures Stick w/ Regular Bitcoin Still don't trust Crypto

Questions and Comments:

Question from Nikbak - When do you think we'll have #bitcoin options? Question from Scott Somer - Another question I would like to see is - Do you think that Nasdaq PHLX will have the most volume on a given trading day over CBOE as the leading medallion. Question from MarkLitwin: Thank you for your time and explanation! Appreciate! I was thinking of using options leverage with a limited risk of losing premium by buying an option long enough to cover a span between earnings and the one which is already In the Money with the Delta of 1 and selling that option just before the next ER. Would you comment on that idea please! Question from Albert Deckel - Two questions: While I understand how to convert a "Delta" into meaning, I really don't understand what consists of a "high" vs. "low" Gamma, Theta or Vega. For example, when is theta so high that it makes the purchase of a contract dubious, or Vega so high that it makes the purchase of an OTM contract desirable? Also, if I were to write an ITM put, what combination of Delta, Gamma, Theta or Vega am I looking for? Thanks so much!! Al Question from USA Patriot - What is ADV?? Comment from Charlie T. - Not really an options guy. I don't need the headache of yet another unknown element aka time. It's hard enough just picking my stocks, deciding price points, exit points, etc. Question from L Penguin - I'm a new options trader and I want to buy a LEAP call because it looks like the stock is going to go to up in the next 12 months, but I don't want to commit yet. I also want to generate income while I hold that position. What are your thoughts on selling the call while I have the leap? Also, this stock has an attractive dividend that I'd like to capture. Is this even possible? Interested in your thoughts, thanks! I was thinking about buying a deep in the money call for the LEAP, and then depending on where the stock is trading at the time, sell closer to the money.

Option Block 669: Breaking Down the Binaries

Nov 18, 2017 01:02:16

Description:

Trading Block: Featuring special guest Dan Cook from NADEX.

What are the uses for binary options? Binaries as a way to trade options. VIX coming back to life. House passes tax reform, will congress unify behind a single plan? Uncle Mike speculates on winter weather and resulting oil demand. There is still earnings on the horizon, including: AMAT, GAP and WMT after the bell today.

Odd Block: More TSLA 50 "Catastrophe" puts. Put-palooza in Time Warner Inc. (TWX). Funky far OTM outs in Restoration Hardward (RH). Call vertical/roll in Dicks Sporting Goods Inc.DKS.

Strategy Block: Dan Cook discusses binary options.

Mail Block: Options question of the week

The war for #Bitcoin #Derivatives is heating up w/ both @cmegroup and @cboe jumping into the fray. How do you think you'll be trading #Bitcoin in 2018?

CME BRR Futures CBOE Gemini Futures Stick w/ Regular #Bitcoin Still don't trust #Crypto

Listners weigh in:

Question from JLC8 - What is shortest term option available? Is it equity or commodity?

Around the Block: After-the-close earnings update. Will option vol come down? Are people going to take the money and run?

Option Block 668: AMZN Loves Hobbits, and Your Questions

Nov 15, 2017 01:03:07

Description:

Trading Block: Earnings! Are we heading for more carnage? Putin says he didn't do anything to the election. GE gets smoked. Amazon up over 1% thanks to Lord of the Rings.

Odd Block: Catastrophe puts in Tesla Motors Inc. (TSLA). Size put roll in (SEAS). Put-palooza in Square.

Mail Block: Options question of the week

The war for Bitcoin derivatives is heating up w/ both CMEGroup and CBOE jumping into the fray. How do you think you'll be trading #Bitcoin in 2018?

CME BRR Futures CBOE Gemini Futures Stick w/ Regular #Bitcoin Still don't trust #Crypto

Listnener Questions: What's on your mind?

Question from Nikster1001 - I am new to options trading and have been following you for three weeks now...thanks for all your insights...I am still holding NVDA calls for end of this week...any update on NVDA?

Around the Block: Earnings! WMT, DKS, BBY, and more.Uncle Mike is looking at oil and financials. Sebas is wondering what will happen on Tuesday.

Option Block 667: Return of the Viceroy, Plus DIS and NVDA

Nov 11, 2017 01:08:59

Description:

Trading Block: The Return of the Viceroy! OCC cleared contract volume up 20% in October.

Earnings!

Disney - ATM straddle $5, approx. 4.5% NVDA - ATM straddle $16, approx. 8%

Odd Block: Put roll in Time Warner Inc. (TWX). Size call love ENSCO PLC (ESV).

Strategy Block: Uncle Mike Tosaw discusses the pulse of the market.

Mail Block: Options question of the week

Trading #Options during #Earnings is a coin flip. But you know you love to do it. What's your #Earnings #Options MO?

28% - Buy Calls/Call Spreads 5% - Buy Puts/Put Spreads 33% - Sell Puts/Put Spreads 34% - Fly/Iron Fly/ Iron Cond.

Around the Block: Earnings check-in from DIS and NVDA. Uncle Mike is looking for 2600 in S&P. How many tax brackets? Taxes. Taxes. Taxes. High-yield bond charts look ugly.

Option Block 666: Earnings Trades, 7 VIX and T-Rexes

Nov 8, 2017 01:00:56

Description:

Trading Block: Earnings!

Monday - Weight Watchers Tuesday - CBOE, Valeant, Snap Inc. Thursday - Nvidia, Macys, Kohl’s Friday - JCPenney

Odd Block: Size call love in MRO. Opening calendar/stupid in RSX. Call 1x3 in RCX.

Mail Block: So many questions!

Options question of the week: Bitcoin just blew past $100B in "market cap." If #Options were available how would you trade them?

52% - Buy Calls/Call Spreads 18% - Buy Puts/Put Spreads 13% - Sell Covered Calls 17% - Other/Hate #Crypto

Listener questions and comments:

Comment from Tony Varriale‏ - HODL Comment from Contrlkaos - Call broken wing butterflies

ANOTHER Options question of the week:

Earnings is a coin flip. But you know you love to do it. What's your #Earnings #Options MO?

Buy Calls/Call Spreads Buy Puts/Put Spreads Sell Puts/Put Spreads Fly/Iron Fly/ Iron Cond.

More comments!

Comment from Ophir Gottlieb‏ - $TSLA oh, if there was after hours option trading @Options Comment from Folfox - Do you prefer iron condor vs. iron butterfly? (I know 1 strategy wont work every time, but what scenario is preferred) Question from ThinkTankTrading - I have a question regarding funds like vxx and this quote from its prospectus...In connection with these limits, the Dodd-Frank Act has required the CFTC to adopt regulations establishing speculative position limits applicable to regulated futures and OTC derivatives and impose aggregate speculative position limits across regulated U.S. futures, OTC positions and certain futures contracts traded on non-U.S. exchanges. In December 2016, the CFTC re-proposed rules on position limits with respect to the 25 physical delivery commodity futures and options contracts, as well...What happens with cheap low Vol prices and this position limit, and they can't get the Vol exposure needed to track the benchmark? ...Positive or inverse ETFs?...One will have massive margin lending/ borrowing costs and the other won't be allowed to buy more futures at some point...The second that happens the Nav will be out of wack and become a closed end fund with Arb to Nav opportunities aka the death spiral - would you agree? Or am I missing something - thanks in advance...Asking for a friend hahahah kidding.

Around the Block: RCM webinar on Wednesday, November 8th, 12:00 CST - How to Webinar: Trading Options on Stocks & Futures

Economic Reports this Week:

Nov 7 - JOLTS Nov 8 - EIA Petroleum Status Report Nov 9 - Jobless Claims Nov 10 - Consumer Sentiment, Treasury Budget

 

Option Block 665: Debating Hobbitry; Plus Apple and Tesla

Nov 4, 2017 01:02:53

Description:

Trading Block: Earnings season review:

Apple after the bell. ATM straddle - $7.25, approx. 4.3% Facebook and Tesla

Odd Block: Options tracker in Tesla Inc. (TSLA), call-palooza ahead of earnings in Pandora Media Inc (P), and size upside buywrite in Marathon Oil Corporation (MRO).

Strategy Block: Uncle Mike Tosaw discusses tax savings.

Mail Block: Options question of the week

Bitcoin just blew past $100B in "market cap." If #Options were available how would you trade them?

52% - Buy Calls/Call Spreads 20% - Buy Puts/Put Spreads 19% - Sell Covered Calls 9% - Other/Hate #Crypto

Around the Block: RCM webinar on Wednesday, November 8th, 12:00 CST - How to Webinar: Trading Options on Stocks & Futures.

Option Block 664: The Great Invisible Leggings Debate

Nov 1, 2017 01:04:20

Description:

Trading Block: Earnings Season Review. This season's theme "Buy Premium"! Under Armor before the bell tomorrow. Review of: Chipotle, Twitter, Amazon, Google & Microsoft.

Odd Block: Size OTM call paper in Plains GP Holdings LP (PAGP). Pre-earnings put-palooza in Under Armor Inc. (UAA). Rolling puts in ENSCO PLC (ESV).

Mail Block: Options question of the week.

Bitcoin just blew past $100B in "market cap." If #Options were available how would you trade them.

Buy Calls/Call Spreads Buy Puts/Put Spreads Sell Covered Calls Other/Hate #Crypto

Around the Block: RCM webinar on Wednesday, November 8th, 12:00 CST - How to Webinar: Trading Options on Stocks & Futures.

Option Block 663: Earnings Palooza: AMZN, TWTR, GOOGL and More

Oct 28, 2017 01:02:52

Description:

Trading Block: Earnings!

Chipotle (CMG) - ATM straddle: $20, approx. 6.25% Twitter (TWTR) - ATM straddle: $1.50, nearly 9% Amazon (AMZN) - ATM straddle: $39, approx. 4% Google (GOOGL) - ATM straddle: $41, approx. 4% Microsoft (MSFT) - ATM straddle: $1.75, approx. 2.2%

Odd Block: Review from 8/7: Call frenzy in Procter & Gamble (PG)

Strategy Block: Uncle Mike Tosaw discusses SPY and risk reversals.

Mail Block: Listener questions and comments

Question from Hawkeye - To ye merry band of Magical Voice, grease laden Meatballs, favorite Uncles, and Lobsters with Tubs of butter: I already get that SVXY, XIV, and other short ETF/ETNs can go bust overnight due to the front 2 futures doubling. What would happen if I held long SVXY puts  in an IRA and the fund had to close because the SHTF? How would I exercise them if the fund doesn't trade? I can't cover due to underlying frozen, but I can't exercise without covering because that would put me short in an IRA? Or would they still allow it as an exception? How would it all unwind? Thanks for all you guys keeping me learning, laughing, and most of all, thinking.

Around the Block: Reviewing what's happening post-earnings. Earnings. Earnings. Earnings. Is North Korea testing hydrogen bombs? After-hours options trading would have been fun this week.

Option Block 662: The Great After Hours Debate Continues

Oct 25, 2017 01:02:39

Description:

Trading Block: Earnings!

Tuesday - McDonalds, GM, Chipotle, AT&T. Chipotle Mexican Grill (CMG), ATM straddle - $20, approx. 6.25% Wednesday - VISA Thursday - Twitter, Amazon, Google, Microsoft Friday - ExxonMobil, Merck

Odd Block: Calls trade in Fortuna Silver Mines Inc. (FSM). Combo/straddle trade in iShares MSCI Japan ETF (EWJ). Size buy/write in West Fraser Timber Co. Ltd.(WFT)

Mail Block: Options question of the week

It looks like you all REALLY want after-hours #Options trading. The question now - what is the best way to make it happen?

Pilot For Earnings Season Top Names Only -$AMZN,etc. Basic Limit Order Book Other

Listener Questions and Comments: What's on your mind?

Question from John Hopkins - Hi I was inquiring if Al Sherbin's spreadsheets from his book, how to price and trade options is still available, it is not on the Wiley website anymore. And I can not get it from my O'Reilly subscription service either. I have developed my own kelly spreadsheet, but I would like an experts to see if I am right, mine works ok, it has increased my winning trades greatly. Thanks I realize this is not part of your usual discussion, many apologies.

Around the Block: What are we looking at for the rest of the week? Earnings!

Option Block 661: Unhappy Anniversary

Oct 21, 2017 59:50

Description:

Trading Block: Black Monday 30th Anniversary, October 19, 1987.

Earnings:

GE Honeywell P&G SunTrust

Odd Block: Massive closing paper in Norfolk Southern Corp. (NSC), and review from 8/17 - Rolling winning puts in WisdomTree India Earnings Fund (EPI).

Strategy Block: Uncle Mike Tosaw discusses hedging stock

Mail Block: Options question of the week

EarningsSeason is here! Which name do you plan to trade most actively this cycle?

31% - Tesla, $TSLA 41% - Amazon, $AMZN 17% - Apple, $AAPL 11% - Alphabet, $GOOGL

Options question of the week, volume two:

Do you think #Options should be traded after-hours like stock?

71% - Yes! 25% - No! 4% - Don't Care!

Listener Questions and Comments: What is on your mind?

Question from Darqane - Assigned on short SPX puts means getting long the underlying? But how does that work if it’s cash settled? Question from ButcherBoyz - What options trading strategy would you say is best suited to people with absolutely zero knowledge of options? Thanks. Question from Axel D. - Why does open interest only update once a day?

Around the Block: Earnings, earnings, earnings.

Option Block 660: NFLX Kicks off Earnings Season

Oct 18, 2017 01:02:42

Description:

Trading Block: Earnings!

Netflix, ATM straddle - $15.30, approx. 7.5% Tuesday - IBM Wednesday - Alcoa Thursday - Verizon, PayPal, Etrade Friday - Honeywell, P&G

Odd Block: Size upside love in Comcast Corp. (CMCSA), size roll in Alerian MLP (AMLP) and funky ratio vertical/stupid in Himax Technologies, Inc. (HIMX).

Mail Block: Options question of the week

Earnings Season is almost upon us! What's your favorite way to trade earnings using #Options?

Sell Strad./Fly/Condor Buy Strad./Fly/Condor Sell Puts/Put Spreads Buy Calls/ Call Spreads

Listener questions and comments:

Comment from PeterPan @pierhk - ATM straddle...Buy with ATR>2 Comment from Trader J Rae @traderjrae - Usually a collar or protective put. Everything else held over earnings is a gamble, not a trade.

Another options question of the week:

Earnings Season is here! Which name do you plan to trade most actively this cycle?

Tesla - $TSLA Amazon - $AMZN Apple - $AAPL Alphabet - $GOOGL Comment from Trade With Bulls LLC - $INTC

Still more questions:

Question from McGillIMontreal: Had a question regarding $GIL and two large 3K 30 strike puts on 10/9 with earnings 11/2. Can you guys explain any rationale around that? Question from Ascentaa - What can happen to the current options being held of KITE which is acquired by GILD and is being delisted

Around the Block: GS tomorrow before the bell, ATM straddle - $6.10, approx. 2.5%.

Option Block 659: The Dark Side of Vertical Spreads

Oct 14, 2017 01:03:16

Description:

Trading Block: Roku hit the trading floor. We present some stats from the first week.

ADV: 4413 contracts OI: 12,800 contracts, puts slightly outnumber calls 1.2/1.

Plus, the craziest gold trade of the year.

Odd Block: Size put roll in iShares S&P 500 Index Fund (XSP), funky prints in Applied Materials, Inc. (AMAT) and combo Swap/Roll in Edwards Lifesciences Corp (EWW).

Strategy Block: Uncle Mike Tosaw discusses managing vertical spreads.

Mail Block: Options question of the week

EarningsSeasons is almost upon us! What's your favorite way to trade earnings using #Options?

Sell Strad./Fly/Condor Buy Strad./Fly/Condor Sell Puts/Put Spreads Buy Calls/Call Spreads

Around the Block: Everything macro and the lack of reactions to everything macro. VIX futures. Earnings are coming up. AI rally?

Best of Option Block: Does a High Skew Signal the Zombie Apocalypse

Oct 11, 2017 01:00:46

Description:

Recorded on March 20, 2017, this Best of Option block looks back on when the SKEW index finally popped.

Posted March 21st, 2017

Trading Block: Apple continues to rally. NASDAQ touches fresh intra-day record, but stocks fight for traction. CBOE Skew Index trending higher. It's about time.

Odd Block: Puts trade in GameStop Inc. (GME), call spreads trade in FireEye Inc. (FEYE) and puts trade in Grupo Televisa SAB (TV).

Mail Block: Polls, upsets, questions, and more.

Options #BrokerMadness tournament going on now.

Tough battle today in #options #BrokerMadness as @optionsXpress takes on @IBKR, Who will emerge to take on @TradingBlock? @LSFinancial crushing @tradier

Options #QuestionoftheWeek: In #BrokerMadness spirit, lets bring the fight to exchanges. What is your fav? Where do you send your business?

CBOE/BATS NYSE/Arca/AMEX NASDAQ/PHLX/ISE Other: BOX,MIAX, etc

Listener question:

Question from JVao - Sell put + buy call = long delta exposure = cheaper than buying the underlying = maximizing skew = why does everyone not do this?

Around the Block: What's coming up this week?

Earnings!

Tuesday - Nike, FedEx Thursday- GameStop

This week in the market:

Mar 22: Existing Home Sales Mar 23: Jobless Claims, New Home Sales Mar 24: Durable Goods

Option Block 658: Tree Blights and SKEW Funds

Oct 7, 2017 58:40

Description:

Trading Block: UPS and FedEx stocks fall as Amazon moves further into delivery space. CBOE Holdings plans listing of Roku (ROKU) options with an expected start date of October 6.

Odd Block: More TSLA “Catastrophe" puts. 8/28 - Ratio risk reversal in Dollar General (DG). 8/28 - Nickel put palooza in (PSTG). 8/17 - Call frenzy in (XLU).

Strategy Block: Tosaw discusses interest rates and a new fund through RCM.

Mail Block: Listeners have their say

Options question of the week: Everyone's got electric cars on the brain. How are you playing the shift to electric in your #Options trading? $TSLA $GM

Sell $TSLA Puts/Buy Calls Sell $GM Puts/Buy Calls Electric Cars Are A Fad! Other - Reply/DM w/Choice

Listener qusetions and comments: What's on your mind?

Question from Yieldhawk - @Options is it true that MM's give each other signals tough pre specified order size? Question from Nelly2 - Just so I’m clear on the spread assignment thing. If I’m in SPX then I just get cash if the index closes inside my spread. But if I’m in a stock then I get the stock?

Around the Block: What might happen to move the market?

Option Block 657: Trading Options on Electric Cars

Oct 4, 2017 01:03:44

Description:

Trading Block: A quick overview of our live show from last week. OCC cleared contract volume last month down 9% from September 2016.

Odd Block: A quick summary of the TSLA "catastrophe" puts. Size opening combo in General Motors Company (GM). Puts roll into collar in United States Natural Gas Fund (UNG). Size vertical roll in Caesars Entertainment Corp (CZR).

Mail Block: Listeners have their say

Options question of the week:

Everyone's got electric cars on the brain. How are you playing the shift to electric in your #Options trading?

Sell $TSLA Puts/Buy Calls Sell $GM Puts/Buy Calls Electric Cars Are A Fad! Other, Reply/DM w/Choice

Listener Questions: What's on your mind?

Question from Salman Azhar - When are $ROKU stock options going to start trading? Question from Intelligence Man - Where can I see existing active options contracts?

Around the Block: Las Vegas. Puerto Rico. Oil. VIX futures. Will we have five straight days of VIX below 10?

Option Block 656: Live from the Option Pit Pro Trader Summit

Sep 30, 2017 01:01:22

Description:

Featuring special guests Kevin "Lex" Luthringshausen, and Matt "Tubby" Benson.

Trading Block: What is the Pro Trader Summit? VIX is back in the single digits. Memories of trading floor days.

Mega Live Mail Block:

What's your favorite ETP? Questions from the audience. Question from Ryan Staddon - Any chance you could give me some information on how to or most effectively short ECB n feds QE programes or bond markets?? Question from ISU - Question for the option block: Let's say you're short naked a bunch of puts and the trade goes against you, and you don't have the money to pony up? What can your broker do? Question from Matthew - Where do you source your Unusual Options Activity data from? We use TOS Option Hacker which is OK but you are getting the spreads in the Activities - would love to know how or where you get that level of data Many thanks, Matthew Question from Tim - Why isn't it standard or maybe required to let people close out shorts for free below $.10?

Option Block 655: Return of the VIX Whale

Sep 27, 2017 01:04:56

Description:

Trading Block: VIX is back in the double digits hitting 11.21 today. VIX volume is exploding: Over 2.5M contracts traded so far. Will traders take a knee too? Return of the VIX whale?

Odd Block: Put palooza in the iShares MSCI Japan ETF (EWJ), Upside call vertical in United Parcel Service, Inc. (UPS).

Mail Block: Listener Questions and Comments

Comments regarding the possible Equifax insider trading: Comment from Jedi Markus -Sounds easy enough for a jury to understand it then....#GUILTY Comment from Sir Martin - Depends on which breach I guess? The one in March or the one which was discovered in July? Trying to say they definitely knew. If the first one was in March and they sold in August, they knew something was amiss. Comment from Yell0wbuddha - What they did was so illegal...it makes Pablo Escobar look like an amateur $EFX.

Options question of the week: $VIX products come in many flavors. Pick your poison! What's your favorite way to trade $VIX?

$VXX $UVXY $XIV $SVXY

More questions from listeners:

Question from Salman - Any recommendations on trading platform for mock trading? Options specifically Comment from FContangotrader - Its easier to make $ with $VXX puts when VIX is low Question from Molin - Why don't more options brokers offer trade recommendation engines like idea hub? I think a lot of people would like it and would trade more.

Around the Block: 2500. North Korea. Hurricanes. Presidential tweets.

Option Block 654: Looking into EFX Insider Trading

Sep 23, 2017 01:03:12

Description:

Trading Block: VIX is back in the single digits, hitting 9.54 today. AAPL and the iPhone X. The Key Question on Equifax Options Trade Is Who Initiated the Order.

Odd Block: A funky fly/stupid in Finish Line Inc. (FINL). Put spread vs. calls in SPDR Euro Stoxx 50 ETF(FEZ). Size collar trade in Amicus Therapeutics, Inc. (FOLD).

Strategy Block: The listeners pick the strategy block: Uncle Mike discusses selling premium with a 9 VIX.

Mail Block: Listeners take control of the show

Comment from Salman Azhar - I've been selling out of money debit diagonals during earning, on both upside and downside. Essentially exploiting vega during volatility crush. I lose some money at times but the overall strategy has been great. Have I been lucky or does this make sense? Comment from Jedi Marcus - Did the EFX executive know about the breach, but before they disclosed it to the public?

Around the Block: VIX futures have been consistently correct, VIX cash consistently wrong. What shoe will drop?

Option Block 653: Was There Insider Trading in EFX?

Sep 20, 2017 01:03:15

Description:

Trading Block: The S&P held 2500 today. Equifax gives away the keys to the kingdom. One exec even cashed in his options before the public disclosure. EFX options volume up is again today.

Odd Block: TSLA Options tracker is back. Size call vertical in Visa Inc. (V). Massive opening call print in T-Mobile US Inc. (TMUS).

Mail Block: Listeners have their say

Options question of the week: First #Harvey, then #Irma, now #Jose & more. We prep houses/cars/family for #disasters. How do you prep your portfolio?

Get Long $VIX/$VXX/$UVXY Go To Cash/T-bills Buy Index/Stock Puts "Risk Assets" - Gold, etc.

ANOTHER options question of the week: $EFX exec. cashes out #Options worth $584k a month before disclosing massive breach. $EFX off near 35%. Well-timed, lucky or illegal?

He Got Very Lucky He's a genius He acted on inside info Busy Freezing My Account

Listener Questions and comments:

Comment from Kathryn Corby: How do you guys know the put buyer is not selling near-the-money puts at the same time? That would be smart. Question from Richard D - Dear Derivative Dignitaries, Its your long time listener "Richard D" again. I couldn't write over the last few weeks because I did not have a new appropriate salutation for you!

I have recently been looking at some Apple calendars. I'll see for example I can get near term Apple calendars near the strike using puts for about 5% less than calls.

For example, recently, with the equity price around $161 a long 162.5 Sept 22 / 29 call calendar would go for about $.62 while the puts about $.59. Aren't these supposed to be the same and since they are not can you arb this, especially if you do not have commission charges.

Thanks and I appreciate the wealth of knowledge AND laughs I get from your show. V/R, Richard

Question from SacMan12: What are the odds that SVXY gets back to 70?

Around the Block: Will we hold 2500? Is it a buying opportunity in SLV? Risk reversals in VIX?

Option Block 652: VIX Iron Condors, Rolling Your Puts

Sep 16, 2017 01:01:28

Description:

 

Trading Block: Trading VIX iron condors. Crude up 10% over the last couple of weeks. New Apple iPhone rumored to cost $1,000.

Odd Block: Calls trade in Union Pacific Corp (UNP). calls trade in True Car Inc (TRUE), and puts trade in Amgen, Inc (AMGN).

Strategy Block: Uncle Mike Tosaw discusses rolling protective puts.

Question Block: Options question of the week.

First #Harvey, then #Irma, now #Jose & more. We prep houses/cars/family for #disasters. How do you prep your portfolio?

Get Long $VIX/$VXX/$UVXY Go To Cash/T-bills Buy Index/Stock Puts "Risk Assets" - Gold, etc.

Around the Block: Watching Tesla, just because you can't help it. Who is calling the volatility shots?

Option Block 651: Who Is the Best Online Broker?

Sep 13, 2017 01:00:25

Description:

Trading Block: Irma hits Florida, Jose next? Kiplingers releases its list of top online brokers:

7. Ally

6. Vanguard

5. TD Ameritrade

4. E-Trade

3. Charles Schwab

1. (Tie) Fidelity & Merrill Edge

Odd Block: Massive call vertical in PowerShares DB US Dollar Index (UUP), size roll in Guggenheim CurrencyShares Euro Trust (FXE) and calls trade in Array Biopharma Inc. (ARRY).

Mail Block: Options questions of the week:

As Q4 looms, where are you placing your bullish #Volatility bets? Which has most #Upside by end of 2017? $VIX $AMZN #WTI $GVZ

Gold Volatility Crude Oil Volatility S&P 500 Volatility - VIX Single Names - $AMZN, etc

First #Harvey, then #Irma, now #Jose & more. We prep houses/cars/family for #disasters. How do you prep your portfolio?

Get Long $VIX/$VXX/$UVXY Go To Cash/T-bills Buy Index/Stock Puts "Risk Assets" - Gold, etc.

Listener Questions and Comments:

Question from TT - What does it mean when an options trade is listed as SPIM? Question from Mubs - What must I analyze before buying an #option

Around the Block: Irma watch. Will volatility continue to move? The Jose wildcard.

Option Block 650: Talking Hurricanes, Missiles and Bankruptcy Puts with Fidelity

Sep 9, 2017 01:07:14

Description:

Joining the all-star panel is guest co-host Greg Stevens, VP of Product Development of Options at Fidelity Investments.

Trading Block: Hurricane Irma puts Florida in it's crosshairs. The numbers are in: August was surprisingly strong. Earnings season is in the rearview mirror now.

Odd Block: TSLA options tracker. Upside call love in Himax Technologies, Inc. (HIMX), massive put block in iShares MSCI Japan ETF (EWJ), and call frenzy from 8/17 in Utilities SPDR (XLU).

Mail Block: Options question of the week

As Q4 looms, where are you placing your bullish #Volatility bets? Which has most #Upside by end of 2017? $VIX $AMZN #WTI $GVZ

Gold Volatility Crude Oil Volatility S&P 500 Volatility - VIX Single Names - $AMZN, etc.

Listener Questions and comments: What's on your mind?

Question from Ejh4isu - Question for the option block: What happens to puts I'm holding if the company files bankruptcy or becomes insolvent? Am I just out of luck? Comment from Notyourcountry - What's the probability that Netflix $NFLX won't file for Chapter 11? Question from CLT - Heard a rumor that minis were making a comeback. Any truth to it?

Around the Block: Hurricane cannon pointed at the southeast. NFL season kicks off tonight. Tension between China and North Korea.

Option Block 649: Getting Naked in LULU

Sep 2, 2017 01:01:47

Description:

Trading Block: A thin day in the market. Lululemon (LULU) after the bell: ATM straddle - $6.75, approx. 12%. Will invisible yoga pants strike again?

Odd Block: A review of past paper:

Paper buying strangles in Tesla Motors (TSLA) on Aug 3rd. Call love in Extended Stay America (STAY) on Aug 7th.

Strategy Block: Uncle Mike Tosaw discusses call spread trades

Mail Block/Options Question of the Week:

Let's get cheap! If you had to buy "lottery ticket" December calls for $.05 in one name - which would you choose? #HomeRun

AMZN AAPL Tesla VIX

Listener Questions: What is on your mind?

Question from Bobster - Can you trade options outside of US trading hours? Question from Nanfran - What do you think would be a good option to buy right now heading into the end of summer?

Around the Block: One last look at Lululemon (LULU)

Option Block 648: Everyone Loves Cheap Lottery Tickets

Aug 30, 2017 01:02:11

Description:

Trading Block: A quiet day in the market.

Odd Block: Ratio put spread in Expedia Inc. (EXPE), ratio risk reversal in Dollar General Corp. (DG), and put-palooza in Pure Storage Inc. (PSTG).

Mail Block: Options Question of the Week

Look at #MayweatherMcGregor as #Options traders. @TheNotoriousMMA calls cost $1, pay $3. #Floyd calls cost $4, pay $1. Your trade?

30% - Buy #Connor Calls? 32% - Buy #Floyd Calls? 16% - I'd rather sell premium 22 - Whoever Wins We Love

Listener questions:

Question from Allan8 - Did Mark cash any calls on Floyd? Question from LAXX - Is it me or do the Vegas odds makers do a very similar job to options market makers?

Another Options Question of the Week:

Let's get cheap! If you had to buy "lottery ticket" December calls for $.05 in one name - which would you choose? #HomeRun

AMZN AAPL Tesla VIX

MORE listener questions:

Comment from The_Quantum_Revloution - Which options are trading at $0.05 though that's the question? Comment from Randy Wright - AAPL, and I just might join you. Question from NTT - Can you clarify the question from last show. Was that SPX put-call spread guy asking about selling OTM calls vs. OTM puts or same strike? Comment from Dennis Lyrintzis - Wow over 15,000 Jan 55 calls bought for AAL. Thanks for the Alert. Question from ReallyG‏ - Love your #podcasts! Question: market profile displays limit orders. Is there a service that displays stop orders? Just wondering Question from KBX32: What is the cheapest way to hedge my portfolio w options?

Around the Block: Upcoming Earnings LULU (8/31)

Option Block 647: Weird Rolls, Covered Call How-To and More

Aug 26, 2017 01:03:04

Description:

Trading Block: Amazon announces price cuts at Whole Foods, Hurricane Harvey bears down on oil central. Earnings are still happening! GameStop (GME) after the bell - ATM straddle $2, approx. 9%.

Odd Block: Rolling calls in Genworth Financial Inc. (GNW), rolling calls in SPDR S&P Metals and Mining (XME) and weird rolls in L Brand Inc. (LB).

Strategy Block: Uncle Mike Tosaw discusses strike price selection for a covered call.

Mail Block: Options Question of the Week

Look at #MayweatherMcGregor as #Options traders. @TheNotoriousMMA calls cost $1, pay $3. #Floyd calls cost $4, pay $1. Your trade?

Buy #Connor Calls? Buy #Floyd Calls? I'd rather sell premium Whoever Wins We Lose

Listener questions: What's on your mind?

Question from Salman Azhar: To sell wkly $SPX opts against a long $SPX quarterly opt. Are call or put diagonals better for bears. Math is same but practice?

Around the Block: ULTA pared off the earlier selloff. GME off almost 8%. What's happening in Jackson Hole? AMZN + WFM closes on Monday. GoFundMe to buy Twitter.

Option Block 646: Question Palooza

Aug 23, 2017 59:11

Description:

Trading Block: The eclipse hits the U.S. market. Steve Bannon gone from the White House. Elon Musk urges the UN against the use of AI in warfare.

Odd Block: 105 More $TSLA Jan 2019 50 "Catastrophe" puts hit the tape today. Put spreads trade in Starbucks Corporation (SBUX). Size put spreads in Utilities SPDR ETF (XLU).

Mail Block: Poll review

Question of theWeek: Taking a break from #FireandFury & $VIX to talk #Earnings. Which #Options are you looking forward to trading this week?

18% - CSCO 57% - BABA 18% - HD 7% - WMT

FlashPoll: Which major index has experienced the largest % change in 30-day ATM #Volatility year-to-date?

15% - S&P 500 38% - Nasdaq 100 8% - Dow 39% - Russell 2000

Listener Questions: What is on the minds of our listeners?

Question from For Profits: What do you mean by TSLA catastrphe puts? Question from Privateer - Hi guys, love the show. I have recently been learning about an exciting strategy called writing call options with CFDs. The claim by the teacher is that CFDs can leverage the return on premium selling by ten times, and reduce your break even significantly. I am very invested in how this could apply in selling both legs i.e covered strangles or straddles. Can you discuss the downsides, upsides and hedging strategies used in this scenario, and how to mitigate risk especially on the put leg? Sirs yes sir! Question from LJC6V - Is gold looking good for a collar here? Maybe 2-3 months out? Question from Tanzier - Who is left in broker world that has not been bought up? Any recs? Question from Vic - What is Tosaw up to in AAPL now? Question from Farimax - What options strategies do you use the most?

Around the Block: What is lurking in the misty ether of the future?

Option Block 645: Dragons and Funky 3-Ways

Aug 19, 2017 01:01:44

Description:

 

Trading Block: WMT and BABA earnings today before the bell. Donald Trump sympathizes with Confederate statues. A look at George Soros options positions.

Odd Block: More TSLA Jan 2019 50 "Catastrophe" puts hit the tape today. Call frenzy in Utilities SPDR ETF (XLU). Funky puts trade in Prospect Capital Corporation (PSEC). Rolling puts in WisdomTree India Earnings Fund (EPI).

Strategy Block: Uncle Mike Tosaw discusses his recent SPY diagonal spreads.

Mail Block/Options Question of the Week:

Taking a break from #FireandFury & $VIX to talk #Earnings. Which #Options are you looking forward to trading this week?

CSCO BABA HD WMT

Listener questions:

Question from Amir - Hi have Apple on a strangle put 155 and call 162.50 until the end of this week. With all the good news I thought it would pop over the 162.50 but now it is at 160.84. Do you think it will go back up or am dead in the water?

Around the Block: VIX and its aftershocks. Feigned rotational love. Watch interest rates.

Option Block 644: Talking Trades with Tub

Aug 16, 2017 01:01:34

Description:

Trading Block featuring Matt "Tubby" Benson.

VIX back in the 12 handle - is Fire and Fury over? Sept future down from 15.20 to 13.20 FIZZ and the Cook County soda tax

Odd Block: Puts trade in Urban Outfitters Inc. (URBN), risk reversal in Hewlett Packard Enterprise Co (HPE), calls trade in Teradyne Inc. (TER).

Mail Block/Question of the Week:

Taking a break from #FireandFury & $VIX to talk #Earnings. Which #Options are you looking forward to trading this week?

CSCO BABA HD WMT

Volatility Flash Poll:

$VIX Hit 16.17 Thursday. Is this the end of low #Volatility? Or a temporary blip? Which level will $VIX hit first?

51% - Serious Vol >20 28% - Sindle Digits

Option Block 643: Fire, Fury and VIX

Aug 12, 2017 01:00:53

Description:

Trading Block: VIX getting some life again thanks to "fire and fury."

Earnings after the bell:

NVDA - ATM straddle: $15, approx. 9% SNAP - ATM straddle: $2.25, approx.16.5%

Odd Block: Put spreads trade in iShares MCSI South Korea Index (EWY) , put rolls in SPDR Retail ETF (XRT) and puts sell and call in Urban Outfitters (URBN).

Strategy Block: Uncle Mike Tosaw discusses what happens when low volatility gets higher in the course of just one day.

Mail Block/Flash Poll:

BOX Options is opening a new trading floor. Do we need another floor to compete with Philly, NYSE, CBOE and all the rest?

Yes, for complex orders No, there are too many exchanges N/A, I only trade electronically I am dusting off my trading jacket

Around the Block: What's coming up?

Earnings this week:

Thursday - Macys, Kohl's, Nordstrom, Blue Apron, Snap Inc., Coca-Cola, Nvidia Friday -JCPenney

Big numbers:

Aug 11: Consumer Price Index

Get in the Middle of the Trading Action at the Professional Traders Summit

Option Block 642: The Mystery of LQD Combos

Aug 9, 2017 01:03:15

Description:

Trading Block: Investors Have Never Been More Short Volatility Futures

Odd Block: An update on the Tesla "Catastrophe Puts," call frenzy in Procter & Gamble Co (PG), size bullish combo/conversion/reversal in iShares IBoxx $ Invest Grade Corp. (LQD), and calls trade in Extended Stay America Inc (STAY).

Mail Block: More Tesla commentary

From Michael Smith - This is an obscene about of OI that far out of the money. From Bart S. - Are those Puts bought or sold? From Gary Paster - A very interesting Collar which I will watch until expiration - Re: TSLA MAR 250/470 strangle that paper bought 400 times last week.

Flash Poll: What do you think of the planned launch of cash-settled #Bitcoin futures later this year?

34% - I Can't Wait! 17% - I'm Not Interested! 41% - I'm Somewhat Curious 8% - I'm Waiting for Ethereum

Question from Upward Momentum: Is that a good thing you think?

#QuestionOfTheWeek: Which #Options Exchange or group has carved out the largest piece of the #Options market so far in 2017?

72% - CBOE/BATS 17% - NASDAQ 3% - NYSE 8% - MIAX & BOX

Comment from FContangotrader: Urban Dictionary: Scaramucci Maybe 2-week options should be called Scaramuccis?

Comment from Tim A. - For the guy who wrote in about trading with free commissions. What about a box?

Around the Block: Earnings!

Monday - Marriott Tuesday - The Walt Disney Company, Valeant Pharmaceuticals Wednesday - The Childre’s Place, Mylan, Live Nation, Office Depot Thursday - Macys, Kohls, Nordstrom, Blue Apron, Snap Inc., Coca-Cola, Nvidia Friday - JCPenney

Also this week:

Aug 8: JOLTS Aug 9: Productivity and Costs Aug 10: Jobless Claims, PPI, Treasury Budget Aug 11: Consumer Price Index

Option Block 641: Talking AAPL, TSLA and Call Scalping

Aug 5, 2017 01:01:49

Description:

Trading Block: Apple earnings after the bell on Tuesday. ATM straddle $6, approx. 4%

Options Earnings Poll - $AAPL earnings on Tuesday. The market is pricing a 4% move - approx. $6. Do you think $AAPL can do it?

32% - $6 is Cheap, Buy Straddle 25% - $6 is Rich, Sell Straddle 30% - $6 Seems Fair 13% - Can't Stand $AAPL

Tesla earnings on Wed - $322.87. ATM straddle - $22.50, approx. 7%

Odd Block: Puts trade in Flotek Industries Inc (FTK), calls trade in Mitek Systems, Inc. (MITK), risk reversal in InterActiveCorp (IAC).

Strategy Block: Uncle Mike Tosaw discusses recent trades within his SPY portfolio.

Around the Block: What's coming up this week?

Earnings: Aug. 4: CBOE Aug 4: Unemployment, International Trade

Option Block 640: Leprechauns v. Trolls v. Apple

Aug 2, 2017 01:03:16

Description:

Trading Block: AAPL earnings after the bell on Tuesday. ATM straddle $6, or approximately 4%.

Options Earnings Poll: $AAPL earnings on Tuesday. The market is pricing a 4% move, which is approximately $6. Do you think $AAPL can do it?

$6 is Cheap- Buy Straddle $6 is Rich- Sell Straddle $6 Seems Fair Can't Stand $AAPL

Odd Block: Puts trade in Altria Group Inc (MO), puts trade in Pantheon NV (PTHN)

Mail Block: Listener Questions and Comments

Comment from Shawn St.Peter - I think someone would buy those puts like a life insurance policy if for any reason something happened to Elon Musk, Tesla could drop like a stone. Elon is the reason they are successful and without him I'm not sure they could make it! Comment from Brian Collamer - I see 950 of the JAN19 50 puts go up @ $1.10 marked "spread". Market was 1.03x1.25. OI 28783 - FROM JULY 26 Question from Matthew Therrien: I would be interested to see the guys discuss this strategy. Question from Richard D: Mark and the Option Crusaders (last time I called you Option Luminaries so I'm going to keep inventing new titles until one sticks!), I'm on a roll and got my questioned answered Tuesday, and I figured I'd try my luck with two more.  I also included a 3rd less serious question!

Often on segments like the odd block or similar segments on your other shows you talk about someone going bullish or bearish on certain contracts. For example let's take the Tesla way OTM puts you have mentioned. You talk about someone wanting to be long those catastrophic Tesla puts, but for each trade there is some party taking the other side. Since there is always another party in these trades why isn't it the inverse analysis - in this case for example that someone really wants to sell way OTM TSLA puts? Thanks!

Around the Block:

Earning this week:

Tuesday - Apple, Lumber Liquidators, Herbalife Wednesday - Tesla, Groupon, Fitbit Thursday - Weight Watchers Friday - CBOE

This week in the market:

Aug 1: Personal Income, Construction Spending Aug 3: Jobless Claims, Factory Orders Aug 4: Unemployment, International Trade

 

Option Block 639: Amazon Earnings Umbrage

Jul 29, 2017 01:01:40

Description:

Trading Block: Amazon rallies 2%. Bezos surpassed Gates ever-so briefly as richest man in the world. Then there was a selloff.

Earnings Flash Poll - $AMZN is up next. ATM Straddle approx. $50 - aka 4.5%. Does a $50 earnings move seem reasonable or crazy to you?

39% - I'll buy that for $50 22% - I'll sell that for $50 28% - Seems Fair to Me 11% - I'm waiting for $AAPL

Odd Block: Call rolls in Dynavax Technologies Corporation (DVAX) and calls trade in JetBlue Airways Corporation (JBLU).

Strategy Block: Uncle Mike Tosaw gives us an update on the silver collar trade and discusses FAZ

Mail Block: Listner questions and comments

Tons of people giving us crap for not knowing the handle of our listener from the last show.

Comment from John King - Dude, Louis Wintrhope III. You must be overdue for a live cast Trading Places party - on a trading floor, of course. Question from USA Patriot - What is ADV? the cheapest way to hedge my portfolio w options?

Around the Block/This Week in the Market:

Jul 28: GDP, Consumer Sentiment Jul 28: ExxonMobil, AA

Option Block 638: GOOGL, AMZN, TSLA, FB, CMG and MORE

Jul 26, 2017 01:00:54

Description:

Trading Block: Earnings!

Monday - Alphabet earnings after close today

Earnings Flash Poll - $GOOGL is on deck. With $GOOGL around $993 the ATM Straddle is pricing in a 4% move. Are you a buyer or a seller?

Buy it - 4% is cheap Sell it: 4% is expensive 4% is just right I'm holding out for $AMZN

More earnings!

Tuesday - GM, McD, AT&T, Chipolte, AMD Wednesday - FB, Coca-Cola, Boeing Thursday - Amazon, Intel, UPS, Southwest Friday - ExxonMobil, AA

Odd Block: Puts trade in Sirius XM Holdings Inc. (SIRI) and size ratio vertical in Scientific Games Corp. (SGMS).

Mail Block: Listener questions and comments

Question from Alberto - How does this earnings straddle thing work again? What does that tell me? Question from Richard - Dear Option Luminaries, It has been a while years since I have written in (the last time I wrote in Alex was still one of the hosts)! Are there any trades that if you did not have a to pay brokerage fees would be excellent types of trades?  I recently have been given the opportunity to trade options and equities for a near zero trading costs for about a year. I had in the past found some multi-leg spreads or underlyings with a really low prices unworkable because the trading costs made the potential gains or expected value too low. Thank you for your time and for the great shows you consistently point out! Uncle Mike after that 12 days of Christmas options parody from 2015 I think you should be given a "license to inflict umbrage" for at least a decade! Question from Louis Winthrope III - What are best options trades for the upcoming earning release for Twitter?

Around the Block/This Week in the Market

Jul 25: Consumer Confidence Jul 26: New Home Sales, FOMC Meeting Jul 27: Jobless Claims, Durable Goods Jul 28: GDP, Consumer Sentiment

Option Block 637: Talking Earnings with Tubby

Jul 22, 2017 01:01:14

Description:

Trading Block: Earnings after the bell today:

Ebay - $37.19 Microsoft - $73.81

Earnings season is back! $MSFT & $EBAY are up next. $MSFT ATM Straddle = 3.5%. $EBAY ATM Straddle = 7% Which trade would you make?

Buy $MSFT Straddle 3.5% Buy $EBAY Straddle 7% Sell $MSFT Straddle 3.5% Sell $EBAY Straddle 7%

NFLX Closed $161.70 on 7/17, traded as high as $185 (up $23) the next day.

Odd Block: Put trade in Home Depot Inc (HD) and puts roll in Spider S&P Biotech (XBI).

Strategy Block: Uncle Mike Tosaw discusses call rolls

Mail Block: Listnener questions and comments

Comment from Roger Barone: Please advocate for ALL AMERICANS to be able to trade foreign equity or index options! Trying to get the SEC or Financial Services Committee to do the right thing is like talking to a wall. They are both controlled by the big banks and QIBs whose monopoly they protect. Insane archaic policy pushing Americans - and their money - offshore. Info: optionproject.wordpress.com/reform. I'm gonna try to change from the inside if all else fails: barone4congress2018.com.

Around the Block/This Week in the Market:

 

July 20: Jobless Claims

Option Block 636: Netflix Earnings with the Option Block Home Boys

Jul 19, 2017 01:00:27

Description:

Trading Block: NFLX earnings after the bell. Netflix trading around $161.19.

Options Flash Poll: Earnings season is back! $NFLX ($161.19) is currently pricing in a $13 ATM straddle (approx. 8%). What's your take?

$13 is WAY too Cheap $13 is WAY too expensive $13 is JUST RIGHT I'm sitting this one out

Amazon taking on Blue Apron - filing a trademark for a competing meal-kit service

Odd Block: Puts trade in (CHRW), puts roll in Harley-Davidson (HOG), size call diagonal in STZ.

Mail Block: Listener questions and comments

Question from FContangotrader: How about collaring a stock and seeing whats shakes out instead? Question from Fund Concept: Interesting piece on the 3D printing market. Do you think M&A is expected to rise in this area? 3D Printing Market by Offering, Process, Application, Vertical, and Geography. Global Forecast to 2023.

Around the Block/This Week in the Market:

July 18: Import and Export Prices, Treasury International Capital July 19: Housing Starts July 20: Jobless Claims

Option Block 635: TSLA Puts, VIX Calls, No Love For APRN

Jul 15, 2017 01:02:12

Description:

Trading Block: Amazon Prime Day today. Lots of closing VIX puts. Waiting on what Yellen may say.

Odd Block: TSLA options tracker - 145 "catastrophe" puts hit the tape today, 20 more Jan 2018 20 puts also trade today. APRN first week review - paper buys 1080 Aug 9 calls for $0.40. Crazy tree or put spread in iShares MCSI Taiwan Index (EWT).

Strategy Block: A double strategy today! A put roll down trade in silver and a modified collar trade in XLF.

Mail Block: Options question of the week.

$APRN #options are live! Aug 8 calls top the charts so far. With $APRN at $8.15 Aug 8 calls are $.65-$.75. Would you rather?

28% - Buy Aug 8 Call for $.75 33% - Sell Aug 8 Call for $.65 6% - Buy $APRN Stock for $8.15 33% - Rather Eat $APRN's Food

Listener Question from Darqane: Assigned on short SPX puts means getting long the underlying? But how does that work if it is cash settled?

Around the Block:

This Week in the Market:

Jul 14: Consumer Price Index, Industrial Production, Consumer Sentiment

Earnings This Week:

Friday - Wells Fargo, Citi, and JP Morgan

Option Block 634: APRN Calls Not So Tasty

Jul 12, 2017 58:30

Description:

Trading Block: Blue Apron options to list on CBOE exchanges on Monday."Amazon Prime Day" is today. A plan for new trading pit triggers a feud in the U.S. options market.

Odd Block: TSLA Options Tracker - 51 more "catastrophe" puts hit the tape today. Puts roll in L Brands Inc. (LB) Puts trade in Gap Inc. (GPS)

Mail Block: Listeners weigh in

Options question of the week: Blue Apron $APRN is down over 10% from its #IPO price. Assuming #Options were listed, what trade would you make?

Buy Dec 10 Call for $1 Buy Dec 9 Put for $1 Sell Dec 10 Call for $1 Not Touching $APRN

Listener questions and comments:

Question from Tomlyn - What the heck does StoppedIM mean? - From IB Website: SPIM Transaction was the execution of an order which was "stopped" at a price that did not constitute a Trade-Through on another market at the time of the stop. Process like a normal transaction except don't update "last". Comment from PBiggers - Costco Could not get filled to close, then this happens! Need a bounce next week. Question from Alfieg - Interesting artice in Barrons. Any truth to it? How to Tame Volatility? Nix VIX and Buy CBOE.

Around the Block:

This Week in the Market

Jul 11: JOLTS Jul 12: Beige Book, OPEC monthly crude oil report. Jul 13: Jobless Claims, Treasury Budget Jul 14: Consumer Price Index, Industrial Production, Consumer Sentiment

Earnings This Week:

Thursday - Delta Airlines Friday - Wells Fargo, Citi, and JP Morgan

Option Block 633: Nukes, Volatility And Crazy Tesla Puts

Jul 8, 2017 59:59

Description:

Trading Block: VIX ends near the top of the range. It was up to 13.05 at its highest. Tesla down 7.2% yesterday, due to concerns of slowing Model S and Model X sales. The numbers are out: OCC announced today that cleared contract volume in June reached 387,597,223 contracts, a 2% increase from the June 2016.

Odd Block: TSLA Jan 2019 50 puts and Jan 2018 20 puts continue to trade. Back and forth trading in Tesla Motors (TSLA). Puts trade in LG Display Company LTD. (LPL)

Strategy Block: Uncle Mike Tosaw discusses the recent silver environment.

Mail Block: Options question of the week

Blue Apron $APRN is down over 10% from its #IPO price. Assuming #Options were listed, what trade would you make?

Buy Dec 10 Call for $1 Buy Dec 9 Put for $1 Sell Dec 10 Call for $1 Not Touching $APRN

Listener Questions: What's on your mind?

Question from Sal06 - @Options you think AAPL $147 call for June 30th is a good idea? Question from Nelly2 - Just so I am clear on the spread assignment thing. If I am in SPX, then I just get cash if the index closes inside my spread. But if I am in a stock, then I get the stock?

Around the Block: WTH is happening in North Korea? VIX responds in kind. S&P 2400. Non-farm payrolls. Google fine.

Best of Option Block: 500th Episode Spectacular

Jul 5, 2017 01:19:57

Description:

Originally posted on February 19, 2016

Trading Block: Welcome to our 500th episode. Today's special panel includes: Mark Sebastian, Mike Tosaw, Andrew Giovanazzi, and our most beloved former panelist Alex "The Viceroy" Jacobson. They discuss:

How many exchanges are too many exchanges? Options Insider question of the week The SEC Citadel Transaction fees Talking free of compliance issues And so much more...

Odd Block: Rolling calls in Coca-Cola Company (KO), calendar spreads trade in Time Warner Cable (TWX), and put sellingHess (HES)

Mail Block: Listener questions and comments

Question from TennisGr8: I've been hearing a lot lately about gamma scalping. How does it work, and who should use it? Is this second-order greek becoming the new options darling?

Around the Block: Are the bulls back in force? Always be prepared for a downturn.

Option Block 632: Managing Your Trades When You're Away

Jul 1, 2017 09:18

Description:

It's all strategy in this abridged episode of the Option Block. Today, uncle Mike discusses what you an do when you're not connected to your computer, including:

Take your mobile device with you Have the phone number for the trading desk Contingent orders and alerts Why not to have a limit order on a contingency Setting alerts

Option Block 631: Talking VIX, Apple, Bitcoin, Oil And More

Jun 28, 2017 59:36

Description:

Trading Block: Wall St. boosted by tech stocks, rebound in oil prices; Bitcoin Tumbles to Lowest Level in More Than a Week

Odd Block: Put buying in Darden Restaurants (DRI), put spreads trading in iShares MSCI Taiwan Index (EWT) and puts trading in Iridium Communications (IRDM)

Mail Block: Options Question of the Week 1

Everyone is talking about #Bitcoin #Volatility these days. Where do you stand on #Bitcoin after last weeks aggressive downturn?

Too Volatile, I am out I am still bullish I want #Bitcoin #Options I am sick of #Bitcoin

Options Question of the Week 2

Let's get back to basics. #Options are great way to get long (bullish) exposure to stocks & futures. What's your fav way to go long?

Long Call/Call Spread Short Put/Put Spread Stock(Future) Replacement Bullish Risk Reversal

Listener Questions and Comments

Comment from FContangotrader - I cant wait to start trading options on bitcoin. Comment from Mrs Wartsoff - Paper trading does not count!!!! Question from Jeli - Can I buy longer term options than LEAPs? Question from Andrew Freeman: I know mike is out of AAPL but if he had to make an options trade out there now what would it be? Theres no bid on the 70 puts and they only list December puts down to 80 where they are bid for nine cents.

Around the Block/This Week in the Market

Jun 27: Consumer Confidence Jun 28: International Trade Jun 29: Jobless Claims, GDP Jun 30: Personal Income, Consumer Sentiment

Option Block 630: Don't Get too Cute when Closing Trades

Jun 24, 2017 58:03

Description:

Trading Block: Taking the weekend out of the market. Biotech and the effect of the AHCA bill. Crude and the energy section taking it on the chin.

Odd Block: Puts trade in Plains All American Pipeline, L.P. (PAA) call spreads trade in Praxair, Inc. (PX).

Strategy Block: Mike discusses trading size and closing positions.

Mail Block: Listener Questions and Comments

Question from Frank C. - Can you do a review of second order Greeks and when to use them? Thanks. Question from ZX45 - Is now actually a good time to become a market maker? I read in Barons that there are not many of them left, so there is not much competition. And how did Mike get in it if he was not a trader?

Around the Block: Bargain shopping for a sub-10 VIX close.

Option Block 629: Bitcoin, VIX and Becoming a Pro Trader

Jun 21, 2017 01:04:22

Description:

Trading Block: Green screens. Did we turn a corner? Channeling Don S. Do we have a lack of shellac? AMZN needs WFM to grow? Everyone wants to be everything. Mike's disclosure moment.

Odd Block: Puts trade in Marriott Vacation Club (VAC), puts roll in Alerian MLP (AMLP) and put buying in Pattern Energy Group (PEGI).

Mail Block: Options question of the week

Everyone is talking about #Bitcoin #Volatility these days. Where do you stand on #Bitcoin after last week's aggressive downturn?

Too Volatile - I'm out I'm still bullish I want #Bitcoin #Options I'm sick of #Bitcoin

Listener Questions:

Comment from Production One: SPX and VIX are far more fun Question from Ejh4isu: What qualifications do I need to work in the industry as a professional, i.e. as a trader? Is that a career path I'd even want to consider?

Around the Block: Watching tech. 2500 on the S&P, 8 on the VIX?

Option Block 628: Fed, Trump Tantrums And Closing Your Longs

Jun 17, 2017 01:01:57

Description:

Trading Block: The Federal Reserve announced a quarter-point rate hike Wednesday as expected. The market keeps shrugging off news about Trump. The news deluge, with its quasi facts, is making people numb.

Odd Block: Puts trade in Tesla Motors (TSLA), puts roll in Yamana Gold Inc (AUY) and puts trade in Accelerate Diagnostics, Inc. (AXDX).

Strategy Block: Uncle Mike Tosaw discusses closing out long SPY call spreads

Mail Block: VIX Limbo

Last Month 40+% of you said $VIX wouldn't break 9 in 2017. But recent events have us asking again: How low will $VIX get in 2017?

Still Won't Break 9 Won't Break 8.5 Won't Break 8.0 Lookout! 7 Handle in '17

Listener Questions and Comments:

Question from Sal06 - Hello, Just wondering if you could help me I have a $100 call strike for Shopify at a average of 5.88 I bought a week ago. Do you think I have a chance for it to recover? Question from NanFran - Tomorrow is a triple witching hour. What does that mean for options?

Around the Block/This Week in the Market:

Jun 16: Housing Starts, Consumer Sentiment

Option Block 627: VIX De-Synchronization

Jun 14, 2017 01:02:25

Description:

Trading Block: What is up with VIX today? NASDAQ sells off, S&P not so much, VIX pops. How low should VIX go? Are you in the Goldman camp or the Barclay's camp? Gaming segment hot today. Big news out of the E3 show.

MSFT: $69.71 - .8%. Company too big to move much on gaming news. Sony (SNE): Unchanged. Slight adv pop - about 2.5X EA: $108.90 - off over 1% TTWO: $73.83 - Off 2% ATVI: $56.76, off 2.2%

Odd Block: Puts trade in Technology Select Sector SPDR Fund (XLK), calls trade in United Parcel Service, Inc. (UPS) and calls trade in SBA Communications Corp (SBA).

Mail Block: VIX Limbo!

VIXLIMBO: Last Month 40+% of you said $VIX wouldn't break 9 in 2017. But recent events have us asking again: How low will $VIX get in 2017?

Still Won't Break 9 Won't Break 8.5 Won't Break 8.0 Lookout! 7 Handle in '17

Listener questions: What's on your mind?

Question from Sal06 - Hello, Just wondering if you could help me I have a $100 call strike for Shopify at a average of 5.88 I bought a week ago. Do you think I have a chance for it to recover? Comment from Lillith - I agree that the options market would benefit from more American options since the assignment process is confusing and risky.

Around the Block/This Week in the Market:

Jun 13: PPI Jun 14: CPI, FOMC Meeting Jun 15: Jobless Claims, Import and Export Prices Jun 16: Housing Starts, Consumer Sentiment

Option Block 626: Comey Fails VIX, TSLA Mystery Deepens

Jun 10, 2017 59:09

Description:

Trading Block: Comey talks before the Senate - the markets shrug. VIX still in double digits, barely. Silver and Alibaba.

Odd Block: Puts trade in Tesla Inc. (TSLA), calls trade in CIT Group Inc. (CIT).

Strategy Block: Mike discusses the importance of having different strategies for different underlying, in similar scenarios.

Mail Block/Options Question of the Week:

Weird Fact: #1 $TSLA position= 26,760 Jan 2019 50 P. Weird Fact #2: 10k OI added in last 2 months (200 today). Why buy these puts?

Extreme Catastrophe Hedge Newsletter Recommendation Model S Extended Warranty Only an idiot buys these

Comments on the QOTW:

Comment from BeardfistMcfist - Tesla bond holders Comment from Gabe Rich - That's Elon Musk buying? Insider buying? Comment from WallStChef - Because the company will be out of business in 2018? Comment from Option Drone - Agree, although other alternatives seem even more head scratching

State of the Union:

Comment from John King - #Fired #FBI director completes televised #Testimony negative for sitting #president & #VIX DOWN .41 to 9.98. Just plain crazy. @Options #USA

Listener Question:

Question from Butcher Boys: What options trading strategy would you say is best suited to people with absolutely zero knowledge of options?

Around the Block: Comey swing and miss. British elections. Will we make a new all-time high? Fed news conference next Wednesday.

Option Block 625: Dealing With Profound Market Malaise

Jun 7, 2017 59:34

Description:

Trading Block: VIX at 960! The VIX is back to flirting with its lowest levels ever. Keep an eye on APPL. The World Wide Developer Conference begins this week. The year-to-date performance of Apple, Amazon, Netflix and FB is +34% right now.

Odd Block: Calls trade in Cenovus Energy Inc. (CVE), puts and calls trade in Dynavax Technologies Corp. (DVAX) and calls trade in MSCI Hong Kong Index (EWH) , update from 4/3/17.

Mail Block: Options Question of the Week

Weird Fact: #1 $TSLA position= 26,760 Jan 2019 50 P. Fact 2: 10k OI added in last 2 months (200 today). Why buy these puts?

Extreme Catastrophe Hedge Newsletter Recommendation Model S Extended Warranty Only an idiot buys these

Listener questions and comments: What do you want to know?

Comment from Fed Zeppelin - Shorts are learning there's a better option than getting squeezed via equity… Comment from Option Drone‏ - Short CDS or an OTC put in the name. Question from Adam Linlan - Whats up OB? Thinking about getting a model S. It is not a small purchase (about 85k) so I am a little concerned about the future of Tesla motors. Will it be around to service my pricey vehicle in 3-5 years. So I thought I should purchase some insurance. The longest listed puts are Jan 19. I do not want to pay through the nose so I am thinking about picking up the Jan 100 puts for about $4. By my math if TSLA goes bankrupt I will be sitting on a cool 96k, more than the cost of my car. If it does not happen then I will probably roll about six months out so it will cost me a little more but all in all I do not foresee spending more than $1000 during the life of the car. Am I crazy for thinking about doing this? Question from Parallelism - What site are you using paper on? I would like to learn options using paper. Question from GiddyFranciscan - Sell in May and go away. What option strategy benefits from the profound market malaise that occurs over the summer?

Around the Block/This Week in the Market:

Jun 5: Productivity and Costs, Factory Orders Jun 6: JOLTS Jun 8: Jobless Claims

Option Block 624: Mystery Tesla Puts

Jun 3, 2017 01:03:48

Description:

Trading Block: Today we welcome guest co-host Matt Amberson from ORATS. AMZN finally hits $1000. Who is next? Google? Do we need to bring back mini options with all of these high-priced stocks? The crude rally continues.

Odd Block: TSLA Options Tracker: Guess what the number one position in Tesla is right now? Calls trade in Taubman Centers (TCO).

Strategy Block: Mike discusses his SPY diagonal spread trade put on last week.

Mail Block/Options Question of the Week:

AMZN just hit $1000. Will GOOGL do it next? The GOOGL $1000 call expiring Friday = $4, $1000 Put = $8. How would you trade?

Sell $1000 Call for $4 Buy $1000 Call for $4 Sell $1000 Straddle: $12 Sell $1000 Put for $8

Listener Question: What's on your mind?

Question from GuruHawk -How do you know the shares were purchased as well? I see the volume on the option... But to know workings of intent?

Around the Block: What is going on in the June 16 SPY contract? Market reaction to the decision to pull out of the Paris Climate Agreement. Non-farm payrolls. How low can VIX go? What else will hit the $1000 mark?

Option Block 623: How to Sell Premium With A Low VIX

May 27, 2017 01:02:01

Description:

Trading Block: A Retail Resurgence: Best Buy (BBY) - close $50.42, ATM straddle $4, approx. 8%. Earnings: Amazon, ULTA, Costco, GameStop.

Odd Block: Call spread buying in Southwestern Energy Corporation (SWN), calls buying in Macerish Co (MAC), puts and stock buying in Omega Healthcare Investors (OHI)

Strategy Block: Mike discusses what you can do to sell premium in this market environment.

Mail Block: Options Question Of The Week:

$VIX =11.20. $VIX June Future = 12.40 $VIX Weekly 11 puts = $.15, Weekly 13 Calls = $.15. What's your trade?

Buy 13 Call for $.15 Buy 11 Put for $.15 Sell 13 Call for $.15 Sell 11 Put for $.15

Listener Comment:

Comment from Production One - VR would excite the young to trade options! Not old fat guys for sure! MarketWatch: Who trades options the most? Millennial investors Industry should be OK going forward.

Around the Block/This Week in the Market:

A shortened week due to Memorial Day

Option Block 622: Selling Crazy Penny Calls

May 24, 2017 01:03:16

Description:

Trading Block: Earnings highlights include Lowes (Wednesday), Best Buy, Costco, TD Ameritrade, GameStop (Thursday).

Odd Block: Calls trade in Pandora Media Inc. (P), calls trade in Energy Transfer Equity LP (ETE) and calls trade in MGM Resorts Int. (MGM).

Mail Block: Questions. Comments. More

Options Question Of The Week: $VIX =11.20. $VIX June Future = 12.40 $VIX Weekly 11 puts = $.15, Weekly 13 Calls = $.15. What's your trade?

Buy 13 Call for $.15 Buy 11 Put for $.15 Sell 13 Call for $.15 Sell 11 Put for $.15

Listener Questions:

Question from Game Daydog - Whoo Hooo !! I made the boot camp show!!! He's right.. I did take a bruise, but my position was good. The stock gapped thru my position. Is there an option strategy that offers the most gap-thru protection? Question from Jlers -Best broker for Iron Condors?

Around the Block/This Week in the Market:

May 23: New Home Sales May 24: Existing Home Sales, FOMC Minutes May 25: Jobless Claims, International Trade May 26: Durable Goods, GDP, Consumer Sentiment

Option Block 621: Stumping The RockLobster With Vertical Spreads

May 20, 2017 01:03:17

Description:

Trading Block: Still in earnings season. Yesterday: Target, Cisco. Today: Alibaba, Walmart, Gap.

GAP (GPS) - $23.13, ATM Straddle: $1.85, approx. 8% BABA - $120.72, ATM Straddle $6, approx. 5% Dow moves higher amid Trump fears following worst drop of year The Volatility Buyer Known as '50 Cent' Just Had a Huge Payday

Odd Block: Calls trade in Pandora Media Inc (P), calls trade in SBA Communications Corp (SBA) and calls trade in Kimberly Clark Corp (KMB)

Strategy Block: Mike discusses his adjustment in his silver collar.

Mail Block/Options question of the week:

There are still a lot of big names reporting in earnings season. Which ones are on your options watchlist this week?

Walmart, $WMT Alibaba, $BABA Home Depot, $HD Cisco, $CSCO

Listener questions:

Question from Andrew McNichol: Big fan of your Options Bootcamp podcast. I appreciate how you start at square 1 and then walk listeners through every element of options and options trading. Is there another podcast you recommend that does the same but for stocks? Most of the ones I have found are all about what is hot now, or stock picking tips. Essentially, I am looking for a stock trading 101 podcast. If you do not know of any such podcast, what is the best stock 101 book? Thanks! Question from Ejh4isu: If I buy/sell a vertical on SPX (or any equity stock for that matter) and hold until expiration, and SPX settles between the strikes, what happens? Example: sell 2395/2400 and SPX settles at 2397.

Around the Block/This Week in the Market:

May 18: Jobless Claims

Option Block 620: Earnings, Questions, OIC Breakdown and More

May 17, 2017 59:03

Description:

Trading Block: A bull rally in the market. A short breakdown of the OIC 2017 Conference in Scottsdale, AZ.

Earnings Highlights:

Tuesday - Home Depot Wednesday - Target Thursday - Alibaba, Walmart, Gap

Odd Block: Calls trade in Fairmount Santrol Holdings (FMSA), calls trade in Ocwen Financial Corp (OCN) and calls trade in Home Depot Inc (HD).

Mail Block: Questions, comments, polls and more.

Options Question of the Week: Still a lot of big names reporting in earnings season. Which ones are on your options watchlist this week?

Walmart, $WMT Alibaba, $BABA Home Depot, $HD Cisco, $CSCO

Listener question:

 

Question from Abdallah Badwan - Hey I am new to options but I have been studying them for awhile and the only thing I don't understand is how do I know what stocks to choose if I want short term gains. In other words I want to be a short term investor and I want to know how to narrow down the stocks I want to invest in on a daily basis. How do I make a watchlist of stocks that I can invest in on a daily basis for short term gains.

Around the Block/ This Week in the Market:

May 15: Treasury International, Housing Market Index May 16: Housing Starts, Industrial Production May 18: Jobless Claims

Option Block 619: Look Out Below

May 13, 2017 38:12

Description:

Trading Block: Yesterday's earnings: SNAP. Today's Earnings: Macys, Kohls, Nordstrom.

Strategy Block: Uncle Mike Tosaw discusses horizontal ratio spreads

Mail Block: Listener questions and comments

Options Question Of The Week: This volatility implosion is starting to make people nervous. $VIX #Limbo Time: How Low Can It Go in 2017?

9.0 is the bottom (38%) No lower than 8.5 (18%) Cannot get below 8.0 (15%)

Option Block 618: Time for VIX Limbo

May 10, 2017 01:00:43

Description:

Trading Block: VIX near the single digits at the 10 handle. Is the VIX too low? Earnings: Tesla, Facebook, Disney and EA.

Odd Block: Puts trade in iShares MSCI Germany Index (EWI), call buying in JD.com Inc (JD) and calls trade in iShares MSCI South Korean Index (EWG)

Mail Block/Weekend Flash Poll:

These are crazy times for all markets from commodities to equities and volatility. Which crazy level will we hit first?

VIX Below 9 SPX Above 2500 WTI Below 40 AAPL Above $160

Listener Question:

Question from Paul - Mark, What is your take on the timing of an investment in silver right now? I just got out of the market and I am thinking of investing in silver - either the traditional options or an ETF that tracks physical bullion like SLV or SIVR. I am leaning towards SIVR for its lower expense ratio. Question Real Yute - Greetings, could you please explain how stock option is priced? My Internet provider will not allow me to access other page than Facebook. I only need to know how the pricing work. For example can $2 buy a contract? Comment from Charlie T. - Not really an options guy. I do not need the headache of yet another unknown element aka time. It’s hard enough just picking my stocks, deciding price points, exit points, etc.

Around the Block: Disney, EA and SNAP

Option Block 617: FB and TSLA Earnings Flashback

May 6, 2017 58:40

Description:

Trading Block: The Trumpcare bill and French election, how might they affect vol? Tesla: Close - $311, ATM Straddle - $17, approx. 5.5%. Stock off over $20 at the lowest point today, closing off nearly 5%. FB: Close - $151.80, ATM Straddle - $5.63, approx. 3.7% Facebook grew its revenue by 49% during the first three months of the year. Thank you to Steve A for the fan art!

Odd Block: Calls trade in Whiting Petroleum Corp (WLL), puts trade in Alerian MLP Index (AMJ) and puts trade in US Silica Holdings Inc (SLCA).

Strategy Block: Uncle Mike Tosaw discusses his most recent trades and moves from Monday.

Mail Block/Earnings Season Flash Poll:

$ZNGA reports earnings today. Stock is trading $2.87. #Options ADV 3K. Do you trade options on cheap stocks?

Yes, down to $10 Yes, down to $5 Rarely No, the stock is an Option

Around the Block/This Week in the Market

May 4: Jobless Claims, International Trade, Factory Orders May 5: Unemployment

Option Block 616: AAPL Earnings Preview Plus More Stupids

May 3, 2017 01:01:36

Description:

Trading Block: Green on the screen for the NASDAQ. Looking ahead to AAPL earnings. CNBC's Mr. Wonderful is loving AAPL right now. OCC cleared contract volume down 6% year over year.

Odd Block: Review of MGM time stupid from last week, puts trade in NBR, calls trade in CBI, and put buyers in NBL.

Mail Block/Options Question of the Week:

#Earnings #PopQuiz - $AAPL $146.50, #Weekly strad. $5 (3.5%). IV30 = 21%, Weekly 155 Call= $.27, 138 Put = $.27 Would you rather?

Buy Straddle/Iron Fly Sell Straddle/Iron Fly Buy Call Buy Put

Listener questions and comments:

Question from Ron: I hear you mention the term stupid, "That's a put stupid," or "That's a call stupid." Is that strategy or an term of endearment? Thanks Ron Question from Let's make best: Which broker is the best for option trading? Question from Sharkcake: I've been approved to trade options by my Brokerage but I have yet to execute my first trade. What trade do you recommend?

Around the Block/This Week in the Market

May 1: Personal Income May 1: Construction Spending May 3: FOMC Meeting May 4: Jobless Claims May 4: International Trade May 4: Factory Orders May 5: Unemployment

Earnings this week: Quarterly earnings continue to roll with one of the biggest names of the season set to announce Tuesday after the close. Technology giant Apple Inc. is set to release their latest numbers and the way they are perceived could push the stock to new highs like last release. In addition, there are other big names announcing as well including Tesla Motors and Pfizer.

Option Block 615: AMZN, GOOGL, SBUX Earnings, Plus Epic Strategy Block

Apr 29, 2017 01:02:02

Description:

Trading Block with very special guest co-host: Henry Schwartz, Trade Alert

Earnings today after the bell:

Alphabet/GOOGL - $889, ATM Straddle - $29, approx. 3.2% Amazon - $921.50, ATM Straddle - $37.50, approx. 4% Intel - $37.25, ATM Straddle - $1.20, approx. 3.2% Starbucks - $61.75, ATM Straddle - $2.40, approx. 4%

Odd Block: Calls trade in Applied Optoelectronics Inc. (AAOI), calls trade in Nabors Industries Ltd (NBR), and calls trade in Yandex NV (YNDX)

Strategy Block: Uncle Mike Tosaw discusses the six factors of option pricing.

Around the Block/Question of the Week:

Earnings Season is upon us. Big names are reporting soon. Which is your pick for the largest % move post-earnings?

$AMZN, 36% $GOOGL, 26% $CMG, 30% $MSFT, 8%

Earnings this week: 3M, ATT, Chipotle, JetBlue, Xerox, Boeing, PepsiCo, Nasdaq, Google, Amazon, Ford, Intel, Southwest, Starbucks, Exxon, General Motors.

Option Block 614: Unleash the Liberator Puts

Apr 26, 2017 01:01:19

Description:

Trading Block: Earnings today

Alcoa: $33, ATM Straddle $2 - approx. 6% Chipotle: ATM Straddle $25.25, approx. 5.4% VIX 'fear' gauge plummets as French election results spark global relief rally.

Odd Block: Calls and puts trade in GGP Inc. (GGP), puts trade in Excelon Corp. (EXC) and calls trade in MGM Resorts Intl. (MGM).

Mail Block: QuestionoftheWeek:

Earnings Season is upon us. Big names are reporting soon. Which is your pick for the largest % move post-earnings?

$AMZN $GOOGL $CMG $MSFT

Listner questions and comments:

Follow-up comments from GameDay Dog:

You nailed it. I was assigned on 2 of the options. I knew that, but the (-) in my margin account was "alarming". My main thought was losing more than my spread safety net. The math did not make sense immediately. Glad to ask a ? that made others ask ?s..

My bad...just heard episode 608...Yeah, I got assigned 2 of 3 my put spread.. Way too early! I will get into better detail next time. Episode 208 had an excellent answer. That big negative number was stupid scary! I closed all the positions & sold the stock.. the 1 short put & 3 long puts made it a back ratio spread when I closed it.. it's funny now!  PS - thanks for managing to get my questions on air.. once I closed the positions, I was able to sleep that night!!! Feels like I lost more than $300 though. By getting assigned the shares, it felt like I had more at risk and loss was influenced by the price of the underlying instead of the option. If that makes sense. Seeing the large margin number was not pleasant.. My credit spread had a 30% chance of being ITM when I sold it too! Hahaha..

Question from Lesnod -How do you get out of the straddles? One side of a straddle is always a loss correct?

Around the Block/This Week in the Market

Apr 25: New Home Sales, Consumer Confidence Apr 27: Jobless Claims, International Trade, Pending Home Sales Apr 28: GDP, Consumer Sentiment

 

Option Block 613: The Shiny New PHLX

Apr 22, 2017 01:00:16

Description:

Trading Block featuring guest co-host Jill Malandrino, Global Markets Reporter NASDAQ.

The brand spanking new PHLX trading floor. SPX and the VIX North Korea and Trump meeting Italian PM

Odd Block: Call rolls trade in Walmart (WMT), puts trade in Bank of America (BAC) and ratio call spreads trade in Starbucks (SBUX)

Strategy Block: Uncle Mike Tosaw discusses the importance of gamma.

Around the Block: What are we looking at that might move the markets next week?

Option Block 612: NFLX the Widowmaker Wimps Out

Apr 19, 2017 01:02:46

Description:

Trading Block: VIX preparing for the French election.

Earnings today (after the bell):

United Airlines - $UAL - 70.37USD, Price increase 1.29 (1.87%), ATM Straddle - $2.50, approx. 3.5% Netflix - $NFLX, 146.56USD Price increase 3.64 (2.55%), ATM Straddle - $12, approx. 8%

Odd Block: Call spread selling in Thor Industries Inc. (THO), call buying in Texas Instruments Inc. (TXN), and put spread buying in SPDR Euro STOXX 50 ETF (FEZ).

Mail Block/Options #QuestionOfTheWeek

With $TSLA threatening $315 how are you leaning in your #Options trades this month? Would you rather:

Buy 1-month $300 put Buy 1-month $330 call Sell 1-month $300 put Staying far away from it

Listener questions and comments concerning Game Day Dog question:

Question from Elio - Confused. How did that guy end up with only two of his short puts getting assigned to him? If he was short 3 should not all of them have been assigned? Question from AddJack - You answered a question from Gamedaydog on Tuesday's episode about a put spread gone bad. Is this a reason not to trade spreads if these sort of complications can pop up? Think I would rather stick with stock thank you. Question from Tony Rather - Fun show. Thanks to you and Rock Lobster and Uncle Mike for educating, informing and educating us each week. I have a follow up to the listener mail question from last show in which the listener and Uncle Mike said he was long stock against his put spread. They both said his stock would expire after seven days. But stock does not have an expiration date. Please clarify as I am obviously missing something.

Around the Block: What's on our trading screens for the rest of the week?

Earnings!

Bank of America Charles Schwab

This week in the market:

Apr 18: Housing Starts, Industrial Production Apr 19: Beige Book Apr 20: Jobless Claims Apr 21: Existing home Sales

Option Block 611: More All-Stars than You Can Handle

Apr 15, 2017 01:05:14

Description:

Trading Block: Today we have very special guest co-hosts: Nick Howard, QuickStirke. Ophir Gottlieb, CMLVIZ.com

VIX blowing out the down side MOAB bomb drops Commodity update Uncle Mike's silver collar

Odd Block: Puts trade in iShares Barclays 7-10 year bond ETF (IEF), puts trade in Hanesbrands Inc (HBI), calls trade in Whiting Petroleum Corp (WLL).

Strategy Block: Uncle Mike Tosaw discusses trading over a long weekend.

Mail Block/Options #QuestionOfTheWeek

With $TSLA threatening $315 how are you leaning in your #Options trades this month? Would you rather:

Buy 1-month $300 put Buy 1-month $330 call Sell 1-month $300 put Staying far away from it

Listener Question:

Question from AndersonInvesting - New to options. I use TD Ameritrade but currently I do not like it for options. I was looking at Charles Schwab. Any recommendations for an options newbie? Also looking at AMD puts to protect gains (averaged in at 13.23. Earnings date has been announced for May 1st.) Any suggestions there?

Around the Block/This Week in the Market:

April 14: Consumer Price Index, Retail Sales, Consumer Sentiment

Option Block 610: TSLA, VIX and More

Apr 12, 2017 01:03:47

Description:

Trading Block: Tesla is now more valuable than GM.

Odd Block: Calls trade in MOMO Inc. (MOMO), calls trade in SunPower Corp. SPWR and calls trade in First Solar, Inc. FSLR.

Mail Block/Options QuestionOfTheWeek

With $TSLA threatening $315 how are you leaning in your #Options trades this month? Would you rather:

Buy 1-month $300 put Buy 1-month $300 call Sell 1-month $300 put Staying far away from it

Around the Block: What is lighting up our trading screens for the coming week?

Option Block 609: VRX, Salvaging Good Trades, Umbrage and More

Apr 8, 2017 58:23

Description:

Trading Block: The 100-year anniversary of the vote to join WWI. VIX pops after Syrian attack. Valeant Pharmaceuticals International, VRX + $0.16 to $9.66.

Odd Block: Puts trade in iPath S&P 500 VIX Short Term Future ETN (VXX), puts trade in Ford Motor Co. (F) and calls trade in JetBlue Airways Corp (JBLU).

Strategy Block: Uncle Mike Tosaw discusses his most recent trade in SPY.

Mail Block: #Options #BrokerMadness

WINNER IS - Lightspeed

Around the Block/This Week in the Market:

Apr 7: Unemployment

Option Block 608: TSLA, FIT and BrokerMadness Champion

Apr 5, 2017 01:04:27

Description:

Trading Block: New 52-week highs (132 new highs today): Amazon Inc. (AMZN + $2.62 to $889.16), Red Hat Inc. (RHT + $0.88 to $87.33), Veeva Systems Inc. (VEEV + $0.01 to $51.29), Tesla (TSLA + $11. 11 to $289.41). Tesla Inc is now more valuable than Ford Motor Company, and could very well surpass General Motors Company this week. General Motors Co. (GM - $1.55 to $33.81), Ford Motor Company (F - $0.34 to $11.30).

Odd Block: Calls trade in iShares MSCI Hong Kong Index (EWH), puts trade in Fitbit Inc. (FIT) and calls trade in Carmax, Inc (KMX).

Mail Block: #Options #BrokerMadness finals ARE ON!

Who will claim the prize of your favorite broker: @OptionsHouse or @LSFinancial? The Winner is - Lightspeed Question from Game Day Dog - Aww man! My vertical put spread has gone bad. I have +3 options at 61.5 and sold -3 at 62.5 ... Yesterday it gapped down to 50. I now have +200 shares of LULU in my account +3 put options at 61.5 and -1 put option at 62.5. I thought it was a $300 max risk spread. Do I have to do anything? Do I sell the shares? Everything expires in 7 days. Please help. Thanks! So I learned about selling shares and back ratio spreads and even got an $19 credit.

 Around the Block/This Week in the Market:

Apr 4: International Trade, Factory Orders Apr 5: FOMC Minutes Apr 6: Jobless Claims Apr 7: Unemployment

Option Block 607: LULU Puts & House Money Rolls

Apr 1, 2017 57:11

Description:

Trading Block: AAPL records. LULU craps the bed. Stock market climbs after economic data, with banks in lead. Tesla produces more PR noise.

Odd Block: Calls trade in ConocoPhillips (COP), puts trade in Lululemon Atheltica Inc (LULU) and call trade in CIT Group (CIT)

Strategy Block: Uncle Mike Tosaw discusses Roth IRA vs a traditional IRA

Around the Block/This Week in the Market: Mar 31: Personal Income, Consumer Sentiment

Option Block 606: The Eye of Sauron is Fixed on Puts

Mar 28, 2017 01:00:22

Description:

Trading Block: Vol skew gets dumped. Should technical analysis be applied to VIX? Stock-market fear threatens a return, as Dow stares at longest losing streak in 6 years.

Odd Block: Puts trade in SPDR KBW Regional Banking (KRE), puts trade in GoldCorp (GG), puts trade in Bank of New York Mellon Corp (BK)

Mail Block: Quizzes, question and more.

Options #BrokerMadness tournament going on now. Current #Options #BrokerMadness battle (Monday/Tuesday). @OptionsHouse v. @TradingBlock https://twitter.com/Options/status/846361692544024577

Question from Zanzibar - What is max pain? Does it matter?

Comment from VoiceOfReason1 -Options seems far too complicated - too much thinking involved. I follow the penny stock community - they are usually dead accurate.

Question from Symphox -If you trade options correctly, is it true you will always have the advantage over outright stock purchase/shorting?

Around the Block:

Option Block 605: Broker Madness Is Taking Over

Mar 25, 2017 01:00:12

Description:

Trading Block: Earnings today - GameStop (GME). Why the bull run will stay in great shape even as the health bill troubles traders.

Odd Block: Calls roll in Fireeye Inc (FEYE), calls trade in Vale SA (VALE) and calls trade in GGP Inc. (GGP).

Strategy Block: Uncle Mike Tosaw discusses his latest put spread trade.

Mail Block: Quizzes, questions, comments and more.

With $SKEW so high we all need to prepare for the impending #ZombieApocalypse. What's your #Zombie weapon of choice?

Sword/Axe Club/Hammer Flame Thrower Rifle/Shotgun

Options #BrokerMadness tournament going on now. Today's #Options #BrokerMadness battles:

@LSFinancial v. @TradeKing @TradingBlock v. @IBKR

Around the Block:

Earnings this week:

Tuesday - Nike, FedEx

This Week in the Market:

Mar 24: Durable Goods

Option Block 604: Does a High Skew Signal the Zombie Apocalypse

Mar 22, 2017 01:00:46

Description:

Trading Block: Apple continues to rally. NASDAQ touches fresh intra-day record, but stocks fight for traction. CBOE Skew Index trending higher. It's about time.

Odd Block: Puts trade in GameStop Inc. (GME), call spreads trade in FireEye Inc. (FEYE) and puts trade in Grupo Televisa SAB (TV).

Mail Block: Polls, upsets, questions, and more.

Options #BrokerMadness tournament going on now.

Tough battle today in #options #BrokerMadness as @optionsXpress takes on @IBKR, Who will emerge to take on @TradingBlock? @LSFinancial crushing @tradier

Options #QuestionoftheWeek: In #BrokerMadness spirit, lets bring the fight to exchanges. What is your fav? Where do you send your business?

CBOE/BATS NYSE/Arca/AMEX NASDAQ/PHLX/ISE Other: BOX,MIAX, etc

Listener question:

Question from JVao - Sell put + buy call = long delta exposure = cheaper than buying the underlying = maximizing skew = why does everyone not do this?

Around the Block: What's coming up this week?

Earnings!

Tuesday - Nike, FedEx Thursday - GameStop

This week in the market:

Mar 22: Existing Home Sales Mar 23: Jobless Claims, New Home Sales Mar 24: Durable Goods

Option Block 603: Musk Magic

Mar 18, 2017 48:57

Description:

Trading Block: The stock market slipped following Fed rate-hike rally, declining in oil prices. The U.S. equity benchmarks slipped Thursday as investors reconsidered the Wednesday rally.

Odd Block: Calls trade in GoPro Inc (GPRO), calls trade in Hecla Mining Co. (HL) and calls trade in Momo Inc (MOMO)

Strategy Block: Andrew Giovinazzi discusses closing trades in his strategy block debut.

Mail Block: Options #QuestionoftheWeek

$VIX = 11.50, $SNAP IV30 =56, $AAPL IV30 = 14, $OIV= 33. If you had to buy #Volatility-which is the best value?

22% - $SNAP - aka Tween Vol 19% - $AAPL - aka #Iphone Vol 35% - $VIX - aka $VIX 24% - $OIV -aka #Crude $VIX

Listener questions and comments:

Question from NanFran - Tomorrow is a triple witching hour. What does that mean for options? Question from Goose - What is the difference between weekly options and standard options?

Around the Block/This Week in the Market: Mar 17: Industrial Production, Consumer Sentiment

Option Block 602: The Ides of Yellen

Mar 15, 2017 01:03:47

Description:

Trading Block: Are SNAP options set for strong demand on their market debut? Fed kicks off tomorrow.

Odd Block: Puts trade in Encana Corp. (ECA), calls trade in Texas Instruments Inc. (TXN) and calls trade in Rio Tinto PLC (RIO)

Mail Block:

Options #QuestionOfTheWeek - $VIX = 11.50, $SNAP IV30 = 56, $AAPL IV30 = 14, $OIV = 33. If you had to buy #Volatility, which is the best value?

$SNAP - aka Tween Vol $AAPL - aka #iPhone Vol $VIX - aka $VIX $OIV - aka #Crude $VIX

Listener questions and comments:

Question from Anthony Carter - Snap puts, what the heck!? Question from Dr X - I just saw The Big Short, what do you guys think of it? Also, check out Logan if you have not already.

Around the Block: Beware the Ides of Yellen. Earnings: Del Taco and Oracle.

Option Block 601: The Umbrage Hour

Mar 11, 2017 59:09

Description:

Trading Block: What's going on in the market?

The BBI explained. What would drive the VIX up? Interactive Brokers to Stop Options Market-Making Activities. Snap options set for strong demand on market debut. Crude oil prices fall below $50 as US stockpiles rise.

Odd Block: Puts trade in ILG Inc (ILG), puts trade in SPDR S&P Oil and Gas (XES) and puts call and puts trade in SPDR S&P Oil and Gas (XOP).

Strategy Block: Uncle Mike Tosaw discusses credit spreads.

Mail Block: Listener questions and comments

Question from C.J. Magnuson: Is Interactive Brokers basically being squeezed by pay for play? Question from Amy: What is the shortest expiration available for plain vanilla options?

Around the Block/This Week in the Market:

Mar 10: Unemployment, Export Prices

Option Block 600: SNAP Straddles and Earnings Bets

Mar 8, 2017 01:00:36

Description:

Trading Block: OCC announced that total cleared contract volume in February was 333,411,251 contracts, 1% from February 2016 volume. Index options volume was up 11% with 39,247,030 contracts in February. An escalating broker price war has begun.

Odd Block: Puts trade in iShares Iboxx $High Yield Corp (HYG), calls trade in NRG Energy, Inc. (NRG) and calls trade in Dicks Sporting Goods (DKS).

Mail Block: Options #QuestionOfTheWeek #Oscars Edition.

#WarrenBeatty screwed up Best Picture. What's your biggest #Options screwup?

37% - Held onto shorts too long 37% - Time Decay killed me 11% - Gamma Exploded In My Face 15% - Vega Snuck up on My Delta

Listener replies:

Comment from Matt Benson - Calls in TSLA last week, lol (in response to OQOTW) Comment from John Dakota - Too soon to tell. My one mistake was putting an Iron Butterfly on wrong had to lose 20 and a DT for it. Just took off BBY for 200+!

#QuestionOfTheWeek, part deux

SNAP #Options arrive Friday. Assuming $SNAP is still $25 - price the 1-week straddle exp. 3/17 (aka how much movement)

Between $1 - $2 Between $2 - $3 Between $3 - $4 Over $4

Listener questions and comments:

Question from Hopgrower - Mark and The meatball, love your shows. My question is as follows: How much heart burn does this thought process give you. I have a directional bias and I buy a slightly in the money call 45 to 60 days out. The stock moves in my favor then stalls or retraces slightly. I then turn it into a vertical. Please fire away. Always learning. Thanks, Hopgrower Question from Tom Drake - Whats up with Mike's SLV collar? Question from Sean - You have discussed closing positions prior to earnings on past shows. Why would I take an OTM options off the table before the announcement? Is that not exactly when I want to have the option?

Around the Block:/This Week in the Market:

Mar 6: Factory Orders Mar 7: International Trade Mar 8: Productivity and Costs Mar 9: Jobless Claims Mar 10: Unemployment Mar 10: Export Prices

Option Block 599: Pricing SNAP Straddles

Mar 4, 2017 01:04:25

Description:

Trading Block featuring special guest Ophir Gottlieb, CEO of Capital Market Laboratories, Editor in Chief @CMLviz

SNAP: The first big IPO of the year is off to the races. Supposed to list at $17, opened at $24 and traded up to nearly $26, up over 50% from the listing price.

Earnings earlier in the week:

Tuesday - Target Wednesday - Best Buy Earnings today: After the bell - Costco

Odd Block: Puts trade in Shake Shack Inc (SHAK), calls trade in Sirius XM Holdings (SIRI) and calls trade in Dollar Tree (DLTR).

Strategy Block: Uncle Mike Tosaw discusses profit-taking scenarios.

Mail Block: Options #QuestionOfTheWeek #Oscars Edition.

#WarrenBeatty screwed up Best Picture. What's your biggest #Options screwup?

37% - Held onto shorts too long 37% - Time Decay killed me 11% - Gamma Exploded In My Face 15% - Vega Snuck up on My Delta

Options Pop Quiz - If $SNAP opens at $17 what price would you give the ATM straddle expiring 3/10? AKA how much movement do you expect?

Between $1 - $2 Between $2 - $3 Between $3 - $4 Over $4

Around the Block/This Week in the Market: It is a very heavy week as far as economic reports go with a bulk of them coming on Tuesday and Wednesday. Where did February go? Mar 2 - Jobless Claims

Option Block 598: PCLN and the Dangers of Assignment

Mar 1, 2017 01:01:00

Description:

Trading Block: Dow sets sights on 12th straight record close. PCLN - $1631.25, ATM straddle approx. $69, approx. 4.2%.

Odd Block: Calls trade in CurrencyShares Euro Trust (FXE), calls trade in SPDR Euro Stoxx 50 (FEZ) and calls trade in Square Inc. (SQ).

Mail Block: Questions, polls, and more.

Options #QuestionOfTheWeek - #Oscars Edition. #WarrenBeatty screwed up Best Picture. What is your biggest #Options screwup?

Held onto shorts too long Time decay killed me Gamma exploded in my face Vega snuck up on my delta

Listener questions and comments

Question from Gabe Rich - Hi guys. Do you know of any instance where automatic assignment/exercise by the OCC failed? I am selling a lot of put spreads lately and I have this nightmare that if the stock drops (market crush) and my spread ends up big time in the money. It will be assigned the short leg but not exercised the long leg. Thus creating a huge stock position that might be fatal. I just wonder if that ever happened, something along the lines of flash crush but for options. I am assuming this automatic assignment/exercise process is computerized, and it could be subject to failures. This could be an interesting discussion with your panel of experts, with decades of experience! Thanks, and looking forward for some thoughts. Comment from Game Daydog -Just had a successful vertical spread and wanted to thank you for encouraging me to step out of my comfort zone and try different option strategies. That Iron Condor is next, even though it sounds like a move from an old kung-fu movie!

Around the Block:

This Week in the Market:

Feb 28 - GDP, International Trade, Consumer Confidence Mar 1 - Construction Spending, Beige Book Mar 2 - Jobless Claims

Earnings this week:

Tuesday - Target Wednesday - Best Buy Thursday - Costco

Option Block 597: The Impossible VIX Debate

Feb 25, 2017 01:02:55

Description:

Trading Block: Earnings!

Earlier this week: Tuesday - Home Depot, Macy's, Wal-Mart; Wednesday - Tesla, Fitbit TSLA: Close - $273.51, ATM straddle - $17.16, approx. 6%, Open - $264.08, down 3.4% FITBIT: Close - $5.88, ATM straddle - $.76, approx. 13%, Open - $5.92, effectively unchanged Earnings today: Before the bell - Kohls; After the bell - Nordstrom, BIDU, Herbalife NYSE plans a trial run for Snap IPO.

Odd Block: Calls trade in Carmax Inc (KMX), calls trade in Scientific Games Corp (SGMS) and calls trade in Fireeye Inc (FEYE)

Strategy Block: Uncle Mike Tosaw discusses specifics in a covered call wheel strategy

Mail Block: Quiz, questions and comments

Options #QuestionOfTheWeek - $VIX has already hit single digits under @realDonaldTrump. How low will it get during the rest of his term?

It will not break 10 again Between 9 -10 Between 8 - 9 Below 8

Listener feedback:

Question from Bigtonutz - 9372 $WY Jul21 35 calls went up in 1 block on the PHLX. Are they looking for this to probably going above 35 by July? Oh another question since I asked the other one and you did not answer, ahhh why do insiders keep selling shares? Do they feel this will drop for some reason? Just want to get your opinion.

Around the Block: Earnings Friday: JC Penney; Earnings next week: Best Buy, Costco, Target

Option Block 596: Disastrous 1x3 Call Spreads

Feb 18, 2017 57:06

Description:

Trading Block: Earnings earlier this week. Tuesday - Potbelly, T-Mobile
Wednesday - PepsiCo, Inc., Cisco Systems, Inc., Groupon, Marriott International
Earnings today. AVP - Crush, stock down 17% intraday.

Odd Block: Calls trade in Himax Technologies, Inc (HIMX), Calls trade in Health Care SPDR (XLV), Calls and puts trade in Mondelez International Inc (MDLZ).

Mail Block:
#Options #QuestionOfTheWeek - Trading single #Calls and #Puts is fine, but smart #Options traders use spreads. What is your go-to spread?
- Vertical/Ratio Vertical
- Calendar/Diagonal
- Butterfly/ Iron Butterfly
- Iron Condor
Question from Gramercy - So I am interested in $ATVI ahead of earnings. I buy 1 Feb 39.50 call for $1.50. The stock opens up the next day and I sell it out for $5. What am I missing? Why does everyone say this earnings stuff is so hard?
Question from NIZ - Are there options on Snap?
*Note from IPO filing - “Like many burgeoning tech startups, Snap warned that it “may never achieve or maintain profitability.”
Question from Mark Tucker - You think MaxPain was the reason to hold $AAPL below $132.40 for closing? Rest of Nasdaq seemed bright green. Thoughts? Thank you.
Question from Richard R. - At 14:00 of episode 553 you stat that a $6 straddle was pricing an 8% move following earnings. Is this just the current ATM straddle?


Around the Block: The market will be closed Monday, February 20 for Presidents Day.
This week in the market - Feb 16: Jobless Claims, Housing Starts
Earnings next week - TSLA, BIDU

Option Block 595: Rise of the Yield Hunters

Feb 15, 2017 01:03:08

Description:

Trading Block: Earnings! Apple did not reach all time highs, but its close price is an all time highs. All time highs happened on April 28, 2015 @ 134.54. MIAX launches 15th options exchange with MIAX-Pearl. ICE Cool on Options: Speaking at the Credit Suisse Financial Services Forum in Miami Beach, Fla., Jeff Sprecher, founder, CEO, and chairman of ICE, painted a less than rosy picture of the options market.

Odd Block: Calls trade in True Car Inc (TRUE), calls trade in Union Pacific Corp (UNP) and puts trade in Amgen, Inc (AMGN)

Mail Block: Questions, comments, quizzes.

Options #QuestionOfTheWeek - Trading single #Calls and #Puts is fine, but smart #Options traders use spreads. What is your go-to spread?

Vertical/Ratio Vertical Calendar/Diagonal Butterfly/ Iron Butterfly Iron Condor

Listener question:

Question from Game Day Dog - Hi. I have done well buying calls & puts, but have been practicing with credit & debit vertical spreads - see the DPZ trade picture. I am worried about max risk. How is this different than selling a naked option if my 195 protection is OTM at expiration? Can you discuss the "surprises" or things to watch for with vertical spreads? Thanks & great show.

Around the Block: What is on the radar for the rest of this week?

Earnings this Week:

Tuesday: Potbelly, T-Mobile Wednesday: PepsiCo, Inc., Cisco Systems, Inc., Groupon, Marriott International Thursday: Time Inc., Waste Management

This Week in the Market

Feb 14: Producer Price Index Feb 15: Consumer Price Index, Retail Sales, Industrial Production, Business Inventories Feb 16: Jobless Claims, Housing Starts

Option Block 594: Sports Retail Is Sexy. Who Knew?

Feb 11, 2017 01:01:46

Description:

Trading Block: Oil prices prop up Wall Street; NASDAQ hits record high. MIAX launches 15th options exchange with MIAX-Pearl.

Earnings Today:

Before the bell: Coca-Cola, Dunkin Brands Group, Twitter, Viacom After the bell: Activision, Nvidia, Zinga

DIS (earnings on Tuesday): Close: $109 - ATM straddle: $3.50, approx. 3.2%; Open: $109.52 - traded as high as $11.42, up 2.2%

Other earnings earlier this week:

Tuesday:General Motors, Walt Disney Company, Take Two Interactive Wednesday: GrubHub, Time Warner

Odd Block: Calls trade in Foot Locker Group (FL), calls trade in Chesapeake Energy Co (CHK) and calls trade in Dicks Sporting Goods Inc (DKS)

Strategy Block: Uncle Mike Tosaw discusses his recent trades in Chevron.

Mail Block: Options #QuestionOfTheWeek - With so many different #Options expiration cycles available (weekly, etc) - which duration do you prefer?

Longer than 1 month Monthly Weekly Daily/Intra-day

Listener Questions

Question from EdwardUhs - Hey guys, what do you think about CMG? (from Mixlr chat on Monday 2/6)

Around The Block/This Week in the Market:

Quarterly earnings continue to roll in as expected economic reports are very slow up until Friday. Feb 9: Jobless Claims Feb 10: Import and Export Prices, Consumer Sentiment, Treasury Budget

 

Option Block 593: Can You Trade Options On The Superbowl

Feb 8, 2017 01:02:04

Description:

Trading Block: Earnings Today

Before the bell - Hasbro After the bell - CBOE Holdings, Twenty-First Century Fox

But there is more than just earnings. OCC announces Total Cleared Contract Volume was down 9% in January. The Snapchat IPO looms ahead.

Odd Block: Calls trade in S&P 500 VIX Short Term (VXX), puts trade in T-Mobile Inc (TMUS), alls trade in TrueCar Inc (TRUE).

Mail Block: Options #QuestionOfTheWeek

Time for another Earnings #StraddleBattle : Which stock will outperform its straddle by the largest margin?

35% - Apple (AAPL) (ACTUAL WINNER) 13% - Facebook (FB) 39% - Amazon (AMZN) 13% - Chipotle (CMG)

Options #QuestionOfTheWeek - With so many different #Options expiration cycles available (weekly, etc) - which duration do you prefer?

Longer than 1 month Monthly Weekly Daily/Intra-day

Listener question:

Question from In-to-it - Why can I not trade options on the Super Bowl?

Around the Block: Earnings!

Tuesday: General Motors, Walt Disney Company, Take Two Interactive Wednesday: GrubHub, Time Warner Thursday: Twitter, Coca-Cola, Dunkin Brands Group, Activision, Nvidia, Zinga

This Week in the Market:

Feb 7: International Trade Feb 9: Jobless Claims Feb 10: Import and Export Prices, Consumer Sentiment Feb 10: Treasury Budget

Option Block 592: The Apple of Yesteryear

Feb 4, 2017 01:05:38

Description:

Trading Block: Earnings edition

AAPL: Closed: $121.35, ATM Straddle: $4.25 approx. 3.5%. Opened: $127.09 - up 4.7%, traded as high as $130.49 - up 7.5%. iPhone 7 sales blew away estimates. Apple still sitting on over a quarter of a trillion in cash - excluding debt. FB: Closed: $133.23, ATM Straddle: $6.70 approx. 5%. traded as high as $135.29 - up 1.5%, today down to $130.70, approx. 2%

After the bell: Amazon, Chipotle, Visa, GoPro

AMZN: $839.75, ATM Straddle: $41.50 - approx. 5% CMG: $424.1, ATM Straddle: $20.55 - approx. 5% GOPRO: $10.88, ATM Straddle: $1.25 - approx. 11.5%

Odd Block: Calls trade in Alcoa Inc (AA), calls trade in MetLife Inc (MET) and calls trade in Nordstrom, Inc (JWN).

Strategy Block: Uncle Mike Tosaw discusses hedging Apple going into earnings

Mail Block: Options #QuestionOfTheWeek

Time for another Earnings #StraddleBattle : Which stock will outperform its straddle by the largest margin?

Apple (AAPL) Facebook (FB) Amazon (AMZN) Chipotle (CMG)

Listener Questions and Comments

Question from Geoff - Are straddles really better than analysts estimates for predicting stocks? Question from Bob - Concerning earnings - I have been told to take an ATM call and a put and add them together and that is the expected move. Is that correct?

Around the Block: Numbers on the horizon

Feb 3: Unemployment Feb 3: Factory Orders

Option Block 591: Apple Earnings Preview, Strange VIX Spike

Feb 1, 2017 01:00:07

Description:

Trading Block: Earnings today include Apple, Under Armour.

Odd Bock: Call writer in Coach Inc. (COH), call spreads trade in Constellation Brands, Inc. (STZ) and calls trade in Pfizer Inc. (PFE)

Mail Block: Questions, comments, and more.

Options #QuestionOfTheWeek - Time for another earnings straddle battle. Which company will outperform their earnings straddle by the largest margin? Apple - $AAPL Facebook - $FB Amazon - $AMZN Chipotle - $CMG

Listner questions:

Question from Michael Gavriel - Hey guys, I appreciate all the programming. As far as I can tell, the Option Block podcasts sort of arrive a day late. Maybe its my podcast client? I have not looked into it. What I mean is - for example, the recent Option Block show - Option Block 572, it seems like that is a recap of Thursdays action. But when is it published? I sort of 'need' it to be published on Thursday night i.e. the 10th, or very early in the morning, I guess, on the 11th, if I am going to sort of use it to keep me abreast of action ahead of the trading day? Just curious if this is just how your guys schedules work, maybe you record the next morning, and release mid day, in which case I am a bit out of luck in terms of it being a super timely source. But if it is something I am doing wrong on my end, please do let me know! Thanks. Question from Tom - What does this article mean? Question from Koukas - Researchers say we were in the most narrow equity range since 1933 just before the elction. What's the best way to trade that? Sell out a far out straddle?

Around the Block: Earnings! AAPL, XOM, CMG, AMZN. Trump Twitter watch. Confirmations.

Option Block 590: Earnings Straddle Battle - GOOGL, MSFT, SBUX and More

Jan 28, 2017 59:04

Description:

Trading Block: Earnings!

Before the bell: Southwest, Caterpillar After the bell: Alphabet, PayPal, E-Trade, Microsoft, Intel GOOGL - $852.70. ATM Straddle: $34, approx. 4% MSFT - $64.05. ATM Straddle: $2.75, approx. 4.3% INTC - $37.6. ATM Straddle: $1.25, approx. 3.3% PAYPAL - $41.52. ATM Straddle: $2.12, approx. 5% SBUX - $58.51. ATM Straddle: $2.20, approx. 3.7%

Odd Block: Calls trade in Kate Spade Co. (KATE), calls trade in Technology SPDR (XLK) and puts trade in JPMorgan Alerian MLP index (AMJ)

Strategy Block: Uncle Mike Tosaw discusses dollar-cost averaging

Mail Block: Questions, comments, polls, and more.

Options #QuestionOfTheWeek: Lots of earnings on the horizon. Which company will outperform their earnings straddle by the largest margin?

Alphabet - $GOOGL Microsoft - $MSFT Intel - $INTC Starbucks - $SBUX

Listener questions:

Question from Tim Avery - If I choose an advisor that uses options do they traditionally charge higher fees than straight-up equity advisors? Question from Kddidy - I managed to buy 100 NAK Feb 3.00 Puts at .25 when the stock was trading at $3.30. Do you have any idea how this could happen? I am not sure if I should feel lucky or stupid. Question from Yukoner - Are covered calls still a viable strategy in a 401k these days?

Around the Block/This Week in the Market:

Jan 26: Jobless Claims, International Trade, New Home Sales Jan 27: Durable Goods, GDP, Consumer Sentiment

Option Block 589: Jedi vs. Sith. vs Earnings Season

Jan 25, 2017 57:55

Description:

Trading Block: The Trump Effect: President Donald Trump is set to unleash a cascade of stock-market anxiety - The day of reckoning for the Wall Street is here. McDonalds (MCD) earnings today. Friday close - $122.26; ATM Straddle - $3.52, approx. 3%; Open down $.75, Traded as low as $2.44; No more love for all-day breakfast.

Odd Block: Calls and puts trade in Morgan Stanley (MS), calls trade in Home Depot Inc (HD) and calls trade in Lending Club Corp (LC)

Mail Block: Questions, Comments, Polls, and more

Options #QuestionOfTheWeek

Earnings Season awakens! How do you play earnings using options? Are you an Earnings #Jedi or #Sith?

41% - Dark Side (Short Premium) 26% - Light Side (Long Premium) 25% - No Side - Avoid earnings 08% - Other (Reply/DM w/ideas)

Options #QuestionOfTheWeek - Lots of earnings on the horizon. Which company will outperform their earnings straddle by the largest margin?

Alphabet - $GOOGL Microsoft - $MSFT Intel - $INTC Starbucks - $SBUX

Listener questions and comments

Comment from Steve Place - CREE it is always CREE Question from Chris - Is there a way to subscribe to your posts as they go up on the website so you can get notified via email or mobile phone? Thanks, Chris Question from Fundconcept - Do you think activist investors opportunities will rise considering their experience with mkt volatility?

Around the Block/Earnings Highlights this Week:

Tuesday - Alibaba Group, Verizon, Johnson & Johnson, 3M, Kimberly-Clark Wednesday - Boeing, Abbott Labs, eBay, Qualcomm, AT&T Thursday - Alphabet, PayPal, E-Trade, Microsoft, Southwest, Caterpillar, Intel Friday - Honeywell

Option Block 588: Trump Dump, VIX Pop, NFLX Explosion

Jan 21, 2017 58:55

Description:

Trading Block: Stocks tumble ahead of Trump inauguration - Dow off 100. Netflix: Another crazy earnings for NFLX. Close = $133.26, straddle = $12.60 / 9.5%. Spiked to $145 in the after-hours, opened at $142 today. How a one-two, Trump-Yellen punch may move interest rates.

Strategy Block: Uncle Mike Tosaw discusses the importance of event risk

Odd Block: Puts trade in 3D Systems Corp (DDD); Calls trade in Avon Products, Inc (AVP); Calls trade in Union Pacific Corp (UNP)

Mail Block/Options QuestionOfTheWeek:

Earnings Season awakens! How do you play earnings using options? Are you an Earnings #Jedi or #Sith?

Dark Side (Short Premium) Light Side (Long Premium) No Side - Avoid earnings Other (Reply/DM w/ideas)

Listener questions and comments:

Comment from Scott Francis - Generally most short with puts unless stock has been hammered then you get short squeeze Question from Piggyback - Learned about Lightspeed from the last show. Checked out their site and saw $.60 per contract but didn't see a ticket charge. Do they have one? Answer from Kevin:No ticket charge on options. We will tier commissions based on activity, at the lowest activity level we will charge $0.60/contract with $1.00 min. (So a 5 lot is $3.00, a 1 lot will be $1.00.) We can go down to $0.20/contact for active accounts, tiering schedule is on our website. Mention Option Insider when you call Lightspeed we will give them another nickel off the commission. Question from Ski -As for the repealing and recall of Obamacare. How do you price LEAPs on spider biotech? Someone bought 340 Jan 2018 55 Puts on XBI. Is this a bet on the repel of Obamacare? If so, are LEAP puts a good way to go? Question from Sean - If a trader thought that a price was going down, would a put not have been the best trade in the asian session?

Around the Block:

This Week in the Market -Jan 19: Jobless Claims, Housing Starts

Earnings This Week

Thursday - Union Pacific - Thursday am; IBM - Thursday pm riday General Electric, Procter & Gamble Co.

 

Option Block 587: Epic Drone Smackdown - AMZN vs Trump

Jan 14, 2017 01:01:46

Description:

Trading Block: Stocks sharply lower: Dow drops about 150 points. Who can slow down the Amazon juggernaut?

Odd Block: Calls trade in Cheasepeake Energy (CHK), puts trade in Fiat Chrysler Auto NV (FCAU) and puts trade in Ford Motor Co (F).

Mail Block: #QuestionOfTheWeek

$VIX hit a high of 28 last year. How high will $VIX get in 2017?

About the same (27-29) Slightly Lower (24-26) Slightly Higher (30 - 33) Much Higher (Above 33)

Listner questions and comments:

Question from Ian Wagner: Overheard at #STACMWM retail #options panel: "Customers are market-takers. They do not deserve to trade on our bid." This would seem to be a pretty profound statement. Can you discuss on #OptionBlock? Comment from Max: Who can stop Amazon? Well Trump surely can. Question from RealRX: Hey fellas! Heavy call buying OTM in Bank of America. In particular the Jan 25.5 call expiring on the 20th, and other bank stocks. Looks like protection again massive short sales since smart money usually buys iTM (could be wrong). Do you guys see this as a sign of bearish sentiment on financials with the dollar weakness, multiple rate hikes priced in, etc? Smells funny to me. Comment from The Real Justin: I am think gold will continue to run up to inauguration.

Around the Block/This Week in the Market:

Jan 13: PPI, Retail Sales, Consumer Sentiment

Earnings Highlights this Week

Thursday - Delta Airlines Friday - Bank of America, JP Morgan, Wells Fargo, PNC, Blackrock

Option Block 586: Zombie Gold Back From the Dead

Jan 11, 2017 01:00:13

Description:

Trading Block: Oil drop stymies the Dows march to 20,000. Tech stocks send Nasdaq to record, Apple is celebrating the tenth anniversary of the iPhone. Gold prices settle at highest level in nearly 6 weeks. The options market is not too worried about retail (XRT) woes, but should it be? Is Amazon.com the mall killer?

Odd Block: Calls trade in 3D System Corp (DDD), calls trade in IAMGOLD Corp (IAG) and calls trade in Direxion Daily Junior Gold Minors (JNUG).

Strategy Block: Uncle Mike Tosaw discusses trading silver and other metals.

Around the Block:

This Week in the Market

Jan 10: JOLTS Jan 12: Jobless Claims, Treasury Budget Jan 13: PPI, Retail Sales, Consumer Sentiment

Earnings this Week

Thursday - Delta Airlines Friday - Bank of America, JP Morgan, Wells Fargo, PNC, Blackrock

Option Block 585: 2016 Year in Review Spectacular

Jan 7, 2017 01:05:39

Description:

Trading Block: Looking back at 2016! The thrills of victory. The agonies of defeat.

Odd Block: Andrew's favorite Odd Block trades from 2016

Big winner: Calls trade in Market Vectors Gold Miners ETF (GDX). Size upside calls trade (buy Jun expiration $5 ITM) - 2/4/16 Favorite House Money Roll: Calls trade in Advanced Mico Devices Inc. (AMD). Calls roll up in Jan 2017 - 8/23/16 Big Jury is still out: Calls trade in Financial Select SPDR (XLF). Size calls trade - 11/17

Mail Block: Happy New Year!

First #QuestionOfTheWeek for 2017. Total #Options volume dropped 2% last year. How will 2017 #Options volume compare?

About the Same (+- .5%) Modest Increase (up 1-2%) Modest Drop (down 1-2%) Big Change (+- over 2%)

Listener questions

 

Question from Scott - I benefited from your unusual activity report (of course there is due diligence on my part). Thank you! Do you have any subscription service for unusual activity? More in depth? Great insight, loved how you filtered the noise. Happy New Year!!" Question from WilliamPZE - Does it make sense to buy Rite Aids puts March 7, as Walgreens will close the deal on 01-27-17? Your reply is much appreciated. Thanks, Bill Question from RealRK - I just entered the industry. I passed the 7 and 66, but I will not be doing a lot in the options arena aside from hedging. I have a lot of time in the next month, do you guys have suggestions for furthering options knowledge and possibly becoming a specialist in the few years? Comment from ELXDX86 - Options Bootcamp is THE best way to start learning options!

Around the Block/This Week in the Market: Nonfarms payrolls for December on Friday, Jan 6.

Option Block 584: Winter in Chicago - Close Your Shorts

Dec 31, 2016 01:04:57

Description:

Trading Block: A look back at the year 2016 in the options market. An overview of Lightspeed Trading with guest co-host Kevin Ott. Oil falls for the first time in nine days as U.S. crude supplies climb.

Odd Block: Calls trade in Moblieye NV (MBLY), calls roll in Jetblue Corp (JBLU), puts trade in Kinross Gold (KGC).

Strategy Block: Uncle Mike Tosaw discusses 1256 contracts

Mail Block: Listener questions and comments

Question from Trader Taz1 - Do you have a broker recommendation for someone who is new to options? Maybe with a cash account since I do not want to do margin? Question from Yukoner - Are covered calls still a viable strategy in a 401k these days? Question from JLN84 - I bought a call on a major equity that is now in-the-money. What is my next step? Do I need to do something to get the stock?

Around the Block/This Week in the Market:

Will be a lighter trading week as many traders and investors will be taking the week off because of the holidays. There are a couple of economic reports worth noting listed below. Happy New Year!

Dec 27: Consumer Confidence Dec 28: Pending Home Sales Dec 29: Jobless Claims Dec 29: International Trade

Best of Option Block

Dec 28, 2016 57:33

Description:

We dug through the archives to bring you the very best of the Option Block.

Option Block 583: Dow 20,000?

Dec 24, 2016 53:49

Description:

Trading Block: Gold, the Fed and volatility on this last episode before the holiday weekend.

Odd Block: Calls trade in Globalstar, Inc. (GSAT), calls roll in Michael Kors Holdings, Ltd (KORS) and call buyers in Eldorado Gold Corp (EGO)

Strategy Block: Uncle Mike Tosaw discusses the strategy of "boxing off"

Mail Block: Options question of the week, listener questions and comments

#QuestionOfTheWeek: Major market indices are pushing record highs. Everyone has protection on the brain. How do you protect your portfolio?

Just Move to Cash/Bonds Protective ATM/OTM Put Put Spread/Ratio Put Spread Collar or Collar with a Kicker Question from Yukoner - Are covered calls still a viable strategy in a 401k these days? Question from Trader Taz1 - Do you have a broker recommendation for someone who is new to options? Maybe with a cash account, since I do not want to do margin?

Around the Block: Not much happening in the last week of the year.

Option Block 582: International Options After Dark

Dec 21, 2016 59:13

Description:

Trading Block: The polar vortex might have snuck into the S&P, a narrow range of movement today. Vol off half a handle. How likely is the Fed to make an announcement before the end of the year?

Odd Block: Calls trade in GlobalStar, Inc (GSAT), calls trade in Walgreens Boots Alliance (WBA) and calls trade in Energy Transfer Equity LP (ETE).

Mail Block: Listener questions, comments, and opinions

#QuestionOfTheWeek: Financial advisors represent the last options frontier. What level of options knowledge do you expect from your advisor?

None: I will do it myself Level 1: Buy Puts/Calls Level 2: Income & Vol Level 3:Option Specialist

Listener questions:

Question from Roiratpd81: @Options thanks! I am a new trader. How should I interpret this chart? Say for BAC? Thanks! Question from Hitman - Is the crash priced in yet? What about black sawn events? Any options indicators showing one of those may be on the horizon? Question from Martin Stann - I like to trade the 2X levered SSO ETF. What are your thoughts on this and is it a viable candidate for call writing and put writing? Question from Aldo2 - Hey Mark, Lobster and UM. Just wanted to get your guys thoughts on Vanguard as an options broker. I know most people use them for mutual funds but I have most of my assets there. Is it a viable platform for the type of trading you guys advocate? Hope you're surviving the big chill in Chicago.

Around the Block: Expecting a very quiet week.

Option Block 581: Reasons to Believe

Dec 17, 2016 42:45

Description:

Trading Block: The market and everything else rallied. Vol drops. Fed forecasting. What's the scoop with the shiny stuff?

Odd Block: Call trade in Financial Select Sector SPDR (XLF), call spreads trade in Michael Kors Holding LTD (KORS), calls trade in KEY Corp. (KEY)

Strategy Block: Uncle Mike Tosaw discusses how to choose a financial advisor.

Around the Block: The Fed has spoken. Now what?

Option Block 580: Bringing Sexy Back to Box Spreads

Dec 14, 2016 01:00:51

Description:

Trading Block: Stocks mixed as Dow hits another new record high, flirting with 20,000. Crude and XLE up too. Wealthy investors show a Trump bump in confidence, UBS Wealth Management Americas reported Thursday.

Odd Block: Puts trade in Transocean ltd (RIG), calls and puts trade in SPDR S&P 500 trust (SPY) and calls trade in Hain Celestial Group (HAIN).

Mail Block: Question of the week and listener questions

#QuestionOfTheWeek: Financial advisors represent the last options frontier. What level of options knowledge do you expect from your advisor?

None: I will do it myself Level 1: Buy Puts/Calls Level 2: Income & Vol Level 3: Option Specialist Question from Adam Sam - Hello again... I figured out a way to predict the direction of the market for the day with 75% accuracy. I am wondering what would be the smartest way to trade this info? Should i sell the opposite options OTM with 45 days? And buy them back at the end of the day? Or buy OTM in the direction it will move? I cannot predict the after hours so i want to get out at the end of the day. How would you hedge such trade? Thank you Question from BGT - What happens to options if the fed raises rates in December?

Around the Block/This Week in the Market:

Dec 12 - Treasury Budget Dec 13 - Import and Export Dec 14 - PPI, Retail Sales, FOMC Dec 15 - Jobless Claims, CPI Dec 16 - Housing Starts

Earning Highlights:

Thursday - Adobe, Oracle

Option Block 579: XLF Call Love and AAPL Box Spreads

Dec 10, 2016 59:01

Description:

Trading Block: Stocks rise as NASDAQ joins Dow, S&P and notch new record highs. Understanding the minutiae of VIX. The Tao of Don: Sell or sell not. There is no buy.

Odd Block: Calls trade in CBOE Holding Inc (CBOE), Massive calls trade in Financial Select SPDR (XLF), Calls trade in Bank of America Corp (BAC).

Strategy Block: Uncle Tosaw discusses trading collars in Apple

Mail Block/Options#QuestionOfTheWeek:

#CrudeOil has been volatile lately. $OIV, aka Oil $VIX, is 37.33. Where will #Crude #Volatility close on Friday?

Between 37 - 38.5 Between 38.5 - 40 Below 37 Above 40

Around the Block/This Week in the Market: Dec 9: Consumer Sentiment

Option Block 578: A Kung Fu Grip on the Options Market

Dec 7, 2016 01:02:18

Description:

Trading Block: CBOE sets record volume with S&P 500 Index and CBOE Volatility Index in November. Apple still up on the year. What might next year look like? Lululemon on Wednesday closed $57.16. The ATM straddle is trading at $5.35, or approx. 9%.

Odd Block: Puts trade in Barrick Gold Corp (ABX), Calls trade in Market Vectors Russia ETF (RSX), Calls trade in Pandora Media Inc (P)

Mail Block/Options#QuestionOfTheWeek:

#CrudeOil has been volatile lately. $OIV, aka Oil $VIX, is 37.33. Where will #Crude #Volatility close on Friday?

Between 37 - 38.5 Between 38.5 - 40 Below 37 Above 40 Question from Trader Chad - Are ATM straddles really a good way of predicting a stock or are they just more noise like whisper numbers?

Around the Block/This Week in the Market:

Dec 6: International Trade, Factory Orders Dec 7: JOLTS Dec 8: Jobless Claims Dec 9: Consumer Sentiment

Earnings Highlights:

Tuesday - Toll Brothers, Autozone Wednesday - Costco, Lululemon

Option Block 577: Mad Man Option Screeners

Dec 3, 2016 59:08

Description:

Trading Block: Earnings after the bell today: TD Ameritrade, Krogers, Lands End, Dollar General. OCC cleared contract volume increased 20% in November. Why was November such a massive month for markets around the world? XLE up 8% since Tuesday. Volume 1.5x ADV, calls slightly over puts.USO up over 10% since Tuesday - volume 2x ADV, calls over puts 2-to-1. VOLUME 2X ADV TODAY, CALLS OVER PUTS 2-TO-1. Trump plan to dismantle Dodd-Frank unlikely to be realized, says TABB Group.

Odd Block: (Review from Monday) Calls and puts trade in SPDR S&P Oil and Gas Exp (XOP), alls trade in Financial Select SPDR (XLF), calls trade in Seadrill LTD (SDRL) and calls trade in Ford Motor Co. (F).

Strategy Block: Uncle Mike Tosaw discusses his new modified collar strategy.

Mail Block/Options#QuestionOfTheWeek:

Commodities are capturing a lot of attention and generating a lot of #Volatility. What's your option of choice?

$GLD / Comex Gold $USO / $WTI $TLT / ED / 10YR EUR/USD, GPB/USD Question from Go Hoos - If I buy 10,000 XYZ calls at $1 and sell them for $2, who loses that $1M? The MMs who make $$ on expired option premiums? TIA!

Around the Block/This Week in the Market:

Friday - Nonfarm payrolls

Option Block 576: The Ducky of Maine

Nov 30, 2016 01:00:24

Description:

Trading Block: Jobs report and the Fed set the holiday table this week. Opinion: How the "Trump bump" to the U.S. economy could fall flat?

Odd Block: Calls trade in VALE SA (VALE), calls and puts trade in SPDR S&P Oil and Gas Exp (XOP) and calls trade in ArcelorMittal SA (MT)

Mail Block/Options#QuestionOfTheWeek:

Commodities are capturing a lot of attention and generating a lot of #Volatility. What is your option of choice?

$GLD / Comex Gold $USO / $WTI $TLT / ED / 10YR EUR/USD, GPB/USD

Listener questions: Listeners have their say

Question from Marco - Trading on election night was horses**t! What can an options trader do when the futures are plummeting but the options are not open? So frustrating. Question from Chris Brecher - Is legal pot driving squeeze in $DRYS? Debating now on. Maybe if I was high, I would have believed all the bull flags on the way up:)

Around the Block/Earnings Highlights:

Tuesday - Tiffany & Co. Thursday - TD Ameritrade, Krogers, Lands End, Dollar General

Option Block 575: Put Spreads Need Love to Grow

Nov 23, 2016 01:03:45

Description:

Trading Block: Stocks jump as S&P 500 and Nasdaq set new record highs. Goldman insiders underwater options were salvaged by the Trump election.There are still earnings being released.

Earnings today:

Tyson Foods (before the bell) Palo Alto Networks (after the bell)

Odd Block: Calls trade in NRG Energy Inc (NRG), calls trade in Ultra DJ - AIG Crude Oil ProShares (UCO) and calls trade in Cypress Semiconductor Corp (CY).

Mail Block: Listener questions and comments

Question from RealRK - Juice for free is always nice. I would have never thought of mixing in the call time spread. Musk uses the massive short interest, tweets and it goes up ten points. Thanks fellas! Also, check out the call/put ratio on CY (Cypress Semiconductors). OI near and out of the money in the next three months contracts shows huge call buying (Probably 100 million plus in value). Buyout rumors, so I got long a small amount of January 11 calls. Let me know what you guys think Thursday! Thanks

Options#QuestionOfTheWeek

Great traders need many weapons in their arsenals. But everyone has a favorite. What is yours? Reply/DM w/others.

Vertical/Ratio Vertical Iron Condor/Iron Fly Straddle/Strangle Covered Call/Short Put Addition from Options_Addict - Options ratio spreads and naked purchases.

More questions:

Question from Rico Landa - Did you guys see this? Is Cuban talking about buying puts or something else? Guess he has a savvy financial advisor? Question from JNic - When the market is rallying like it is now what is wrong with just buying calls? Seems to work or is that just too basic?

Around the Block/This Week in the Market:

Nov 22: Existing Home Sales Nov 23: Durable Goods, Jobless Claims, New Home Sales, Consumer Sentiment, FOMC Minutes Nov 24: Thanksgiving Day, markets closed Nov 25: International Trade, Markets close at 1:00 pm Eastern.

Option Block 574: Laterally Arabesque

Nov 19, 2016 01:03:39

Description:

Trading Block: A mild market rally today. VIX cash back below the 14-handle. TSLA recovering from some recent losses; was up over 2% at mid-day. Yellen says Fed might hike interest rates relatively soon. Jobless claims in U.S. declined to lowest level in four decades.

Odd Block: Size calls trade in Financial Select SPDR (XLF), calls trade in Advanced Micro Devices (AMD) and puts trade in Freeport Mc MoRan Inc. (FCX).

Strategy Block: Uncle Mike discusses trading in IBB

Mail Block: Listener questions and comments

Question from Mike The Bookie - Yeah, the ETF based volatility indexes. Is here a good place to bracket UVXY or VXX? Question from Ian Wagner ‏- Why trade volatility vs direction or income? Preference? More favorable risk/reward profile.

Around the Block/Earning Highlights this Week:

Friday - Foot Locker, Abercrombie & Fitch

Option Block 573: Tesla Tailspin and Dubious DRYS

Nov 16, 2016 01:05:01

Description:

Trading Block: U.S. stock market Trump rally loses steam. Oil gets left behind in post-Trump rally. Trump presidency raises questions on the future of Wall St. regulation.

Odd Block: Calls trade in Canadian Natural Resources LTD (CNQ), calls trade in Financial Select SPDR (XLF) and calls trade in Square Inc (SQ)

Mail Block/Options #Question of the Week:

$TSLA ($182.50, down 3%, IV30:41, HV30:31) Straddle says $8.20 move (4.5%) by Friday close. How much will $TSLA actually move

In line: ($8-$8.50) Beat Straddle: > $8 Less than Straddle: < $8] Sick of #Musk / $TSLA

Listener questions:

Question from Moolla - WTF is up with $DRYS? Thing is going nuts - takeover? Lots of calls trading? Comment from Burgh83: Can you explain what that means exactly?...thanks, I'm trying to figure options out still. But holding MRO, want to buy more...

Around the Block/Earnings Highlights:

Tuesday - Home Depot, Dick's Sporting Goods Wednesday - Lowe's, Target, Cisco Thursday - Walmart, Best Buy, Salesforce Friday - Foot Locker, Abercrombie & Fitch

Option Block 572: Post-Election Market Madness

Nov 12, 2016 01:00:36

Description:

Trading Block: Volume in non-U.S. trading hours sets a new daily record. Pharma pop on Hillary loss.

Earnings After the Bell:

DIS - $95.72, ATM Straddle = $2.70, approx. 3% NVDA - $68, ATM Straddle = $5.40, approx. 8% JWN - $57.10, ATM Straddle = $4.85, approx. 8.5%

Odd Block: Calls roll in YRC Worldwide Inc (YRC), calls trade in Huntington Bankshares Inc. (HBAN) and calls trade in Financial Select SPDR (XLF)

Strategy Block: Uncle Mike Tosaw discusses what to do when you get called away from a covered call.

Mail Block/Options #QuestionOfTheWeek:

$SPX Weds Weekly straddle says 2% move through election. How much will SPX / $SPY move through Weds 11/9?

Over 3% - crazy move Between 2-3% - big move Between 1-2% - mild move Less than 1% - meh

Comment:

Comment from Bongsong2: Trump win makes America great again.

Around the Block: Checking back on the earnings straddles from the top of the show. Who will be in the Trump cabinet? Funky sector rotation. Will tech buyers show up?

Option Block 571: TSLA Puts and Election Volatility

Nov 9, 2016 01:04:51

Description:

Trading Block: Dow soars 300 points after FBI clears Clinton again. Are certain volatility funds raising election risk for the stock market? Earnings today after the bell

Fogo de Chao Hertz Global Holdings Marriott International - ATM Straddle = $2.75, approx. 4% The Priceline Group - ATM Straddle = $82, approx. 5.5%

Odd Block: Calls trade in SPDR KBW Bank ETF (KBE), calls and puts trade in iShares MSCI Mexico Fund (EWW) and puts trade in Marathon Oil Company (MRO)

Mail Block/Options #QuestionOfTheWeek:

$SPX Weds Weekly straddle says 2% move through election. How much will SPX / $SPY move through Weds 11/9?

Over 3% - crazy move Between 2-3% - big move Between 1-2% - mild move Less than 1% - "meh"

Listener questions:

Question from RKintz - What do you guys think of out of the money puts on PBR? I noticed heavy buying across several expiries the last few weeks (possibly speculation of prolonged glut in oil supply) Question from Real RK - What do you guys think of being long a little less than one standard deviation puts OTM for Jan in everyones favorite hyperbolic name Tesla?

Around the Block/Earning Highlights This Week:

Tuesday - Valeant, CVS Health Wednesday - Valeant, Mylan, Shake Shack, Macys Thursday - The Walt Disney Company, Nvidia, Kohls, Nordstrom Friday - JCPenney

Option Block 570: Resigned to Groans

Nov 5, 2016 01:01:58

Description:

Trading Block: Wrapping up the week in options

Earnings this Week:

Alibaba (Wednesday before the bell). Close: $101.15, ATM Straddle: $5.46. Open up: $2.65, Traded up: $2.95. Facebook (Wednesday after the bell). Close: $127.17, ATM Straddle: $6.68. Open down: $5.17, Traded down: $7.56. Starbucks. Close: $52, ATM Straddle: $2.45 - 4.7%

OCC cleared contract volume down 13% in October.

Options #QuestionOfTheWeek: Special #Earnings, #Election, #WorldSeries edition $FB ATM strd=$7.30 $VIX=17.20. Which outcome is most likely?

$VIX > 20 before election $FB beats ATM Straddle @realDonaldTrump wins @Cubs win World Series

Odd Block: Calls trade in Itau Unibanco Holding SA (ITUB), puts trade in Electronic Arts Inc. (EA), calls trade in Powershares QQQ Trust (QQQ)

Strategy Block: Uncle Mike Tosaw discusses ways to use money management in your favor

Around the Block: Prescient polling...so many correct answers on the #QuestionOfTheWeek. Does that mean Trump will win?

Option Block 569: The Musical Halloween Spooktacular

Nov 2, 2016 01:03:10

Description:

Trading Block: The tumultuous presidential election could peak the VIX today. Emotional uncertain about the election? Stick to your investing plan.

Odd Block: Calls trade in Metlife Inc. (MET), calls and puts trade in Holly Frontier Corp (HFC) and puts trade in Encana Corp (ECA).

Mail Block/ Options #QuestionOfTheWeek:

Special #Earnings, #Election, #WorldSeries edition $FB ATM strd=$7.30 $VIX=17.20. Which outcome is most likely?

$VIX > 20 before election $FB beats ATM Straddle @realDonaldTrump wins @Cubs win World Series

Listener questions

Question from Nickel 45: Your talk of the P&G and COTY arb had my head spinning. So I did some research and came across terms like "put squeeze" and "GEX." Now my head is spinning even more. I included one of the links below for clarification. Is this stuff accurate or just noise? Thx. Question from PFC11: Whats up with $PG/Coty options arb? Any updates? Question from Barncat: I guess this is for the Options House crew. I am an Etrade customer but I am not happy with their platform. I have been thinking about making the switch to your firm for a few months. Will my account automatically switch over to Options House after the merger or I should I switch it manually now?

Around the Block/Earnings Highlights this Week:

Tuesday - Pfizer Wednesday - Alibaba, Facebook Thursday - Starbucks Friday - Berkshire Hathaway

Option Block 568: Honking Slingshot Swaps Plus AMZN, GOOGL and TWTR Earnings

Oct 29, 2016 59:45

Description:

Trading Block/Earnings Palooza!

Before the Bell:

TSLA: stock up 1.5%, $12.30 (6%) AAPL: stock closed $118.25, but dropped nearly $5 the next trading day - now trading around $115, straddle $5.25 (4.5%) TWTR: ATM straddle - $2.10, approx. 12% - stock nearly unchanged today.

After the Bell:

GOOG: ATM straddle - $39.45, approx. 5% AMZN: ATM straddle - $50 - approx. 6%

Odd Block: Calls trade in Gilead Sciences Inc (GILD), calls trade in Southwest Airlines Co. (LUV) calls trade in Marathon Petroleum Corp (MPC)

Strategy Block: Uncle Mike Tosaw discusses when you would sell a long-dated option.

Mail Block/Options #QuestionOfTheWeek

Is #Trumpocalypse done? Is $VIX already pricing in @HillaryClinton win? Where will $VIX close on election day?

UNCHD (Between 12-14) Elevated (15-18) Spike (Over 18) Selloff (Below 12)

Listener questions:

Question from Trader Onki - I think you recently attended two trading conferences. Would you please share anything new for some of us retail traders who were not able to attend? Or if you already shared them, please direct me to right place? Question from ItsGoodUntilTheBearRaid - @Options Does this mean someone picked up 19k $8 calls? Refers to this article.

Around the Block: The big story is the elections, even during earnings season. Will the VIX continue to roll up? 2016: A lot of up, a lot of down, but going nowhere.

Option Block 567: VIX Fades and Broker Buyouts

Oct 26, 2016 01:05:22

Description:

Trading Block: Earnings today before the bell: T-Mobile USA, Inc. Earnings today after the bell: Visa Inc. S&P 500 Skew Unwind Shows Complacency Over Clinton Win: Analysis. TD Ameritrade to buy Scottrade in two-step deal with TD Bank: Read more.

Odd Block: Calls trade in Fiat Chrysler Auto (FCAU), puts trade in Time Warner Inc. (TWX), calls and puts trade in CBS Corp. (CBS).

Mail Block/QuestionOfTheWeek:

Is #Trumpocalypse done? Is $VIX already pricing in @HillaryClinton win? Where will $VIX close on election day?

Unchaged (Between 12-14) Elevated (15-18) Spike (Over 18) Selloff (Below 12)

Listener question:

Question from Mark Brant: How do funds get orders routed to floor traders? If OH hosts HFs please discuss, thx. Starting one to run the Big Kahuna and favor OH!

Around the Block:

Earnings Highlights This Week:

Monday - Visa Tuesday - Apple Wednesday - Tesla Thursday - Alphabet, Amazon, Twitter Friday - Exxon Mobil

This Week in the Market:

Oct 25: Consumer Confidence Oct 26: International Trade, New Home Sales Oct 27: Jobless Claims, Durable Goods Oct 28: GDP, Consumer Sentiment

Option Block 566: Revenge of the Pit Traders

Oct 22, 2016 01:00:22

Description:

TRADING BLOCK

Earnings highlights today:

Before the bell: American Airlines, Dunkin Brands, Verizon Communications, Textron (TXT), Illinois Tool Works (ITW) and Union Pacific (UNP)

After the bell: E*Trade Financial Corporation, Microsoft Corporation, PayPal Holdings

The return of pit trading?

CFTCs Massad wants access to automated trader source code.

A Nasdaq speed upgrade is threatening IEX.

Resources mentioned in the show:

http://www.valuewalk.com/2016/10/cftc-automated-trading/

http://www.wsj.com/articles/a-nasdaq-speed-upgrade-is-threatening-iex-1476982856

ODD BLOCK

Calls trade in Activision Blizzard, Inc (ATVI), calls trade in Groupon Inc (GRPN), puts trade in Bunge LTD. (BG)

STRATEGY BLOCK

Uncle Mike Tosaw discusses the Wash sale

MAIL BLOCK

Question from James T - What do you think about HIMX ?

Question from TradeCraft - Are there options on carbon trading right? Do they trade much volume?

Question from Trader Onki - MTG Earnings MGIC Investment Corporation is expected to report earnings tomorrow before open. I attached the OI book, Heavy volume 10K contracts -Oct 8 call -Nov 7 puts -Jan17 5 puts -Jan17 10 calls. Would you please share your thoughts? Thank

AROUND THE BLOCK

Earnings Highlights this Week:

Friday - General Electric Company, Honeywell International, McDonalds Corporation

Option Block 565: Rise of the Widowmaker

Oct 19, 2016 01:04:41

Description:

Trading Block: Earnings today before the bell:

Bank of America (BAC) leading off before the market opened Monday with a positive result.

Earnings today after the bell:

IBM: $154.50, ADV 23K; Today over 50k, ATM Straddle: $6.50, approx. 4%

Resources mentioned in the show:

OptionsHouse blog Options market sees Netflix as a coiled spring ahead of earnings CEO sold millions in Wells Fargo stock before fraud revelations

Odd Block: Calls trade in SPDR KBW Bank (KBE), calls trade in Bank of America Corp (BAC) and calls trade in 3D Systems Corp (DDD)

Mail Block: Listener questions and comments

Question from Adam - Could you please explain what it means to "gamma scalp" and why this is not called delta scalping? Thanks and your show has saved me a lot of money now that I have come to the dark side! Question from Ian Wagner - Why trade volatility vs direction or income? Preference? More favorable risk/reward profile?

Around the Block/Earnings Highlights this Week:

Tuesday - Dominos, Goldman Sachs, Intel, Johnson & Johnson, UnitedHealth. Wednesday - Abbott Labs, American Express, eBay, Mattel Thursday - American Airlines, Dunkin Brands, E*Trade Financial Corporation, Microsoft Corporation, PayPal, Verizon Communications Friday - General Electric Company, Honeywell International, McDonalds Corporation

Option Block 564: Winter Is Coming

Oct 15, 2016 59:03

Description:

Trading Block: Dow drops amid weak China data and rate fears. Will it be a cold winter? Will that spike energy prices? WTF Fed? Airline earnings

Odd Block: Calls and puts trade in Johnson Controls Intl (JCI), call buyers in Blackstone Group LP (BX), calls trade in Tenet Healthcare Inc (THC)

Strategy Block: Mike Tosaw discusses income strategies.

Mail Block: Listener questions and comments

Question from TraderOnki Re: ULTA Guidance Increase - Wednesday Close: 238.97 - Thursday morning news: Ulta Beauty (ULTA) announced that is expects to report third quarter EPS of $1.35 to $1.38, up from prior expectations of $1.25 to $1.30. - Thursday Open: 246.35 - Stock traded as high as 266.74 (over 10%) as I write this 13:20 EST Looking at the yesterdays OI and Vol books - Oct 21 240 calls traded 1,066 contracts - Oct 21 230 puts traded 993 contracts - Oct 14 230 puts traded 680 contracts By looking at todays OI things I can say about yesterdays Vol - Most of Oct 21 240 calls were opening trades - Most of Oct 21 230 puts were closing trades - Most of Oct 14 230 puts were opening trades Would you please share some of your thoughts and conclusions about these trades? Do you think it was just a wide long strangle? Why do you think they closed the Oct 21 puts and opened more Oct 14 puts? Were they more certain about the timing of the news and wanted to decrease their insurance by buying cheaper puts??? Thank you in advance for your time. Question from Meravol - Interesting piece in current Modern Trader about selling break-even strangles. Have you seen? What are your thoughts of this technique? Is it me or are there new techniques for selling strangles all the time that always tend to blow out? Aren’t you better off selling IC or IB due to limited risk?

Around the Block/This Week in the Market:

Oct 14: PPI, Retail Sales, Consumer Sentiment

Earning Highlights this week:

Friday - Citigroup, JP Morgan, PNC Financial Services, Wells Fargo

Option Block 563: Stocks That Cause Great Sadness

Oct 12, 2016 01:04:27

Description:

Trading Block: Deutsche Bank says derivatives exposure fears overblown. Twitter shares plunge on report bidders are scarce. TWTR off 11% - back around $17.50. Dow soars as traders await earnings season; Nasdaq near record high.

Odd Block: Calls trade in Energy Transfer Partners LP (ETE), calls trade in Boston Scientific Corp (BSX), and calls trade in Nabors Industries LTD (NBR).

Mail Block/Options #QuestionOfTheWeek:

What is your fav way to trade #Volatility? $VIX? $VXX? $XIV? $SPX? $SPY? Other? DM/Reply with alternatives?

42% - VIX Options/Futures 29% - VXX 18% - XIV 11% - S&P Strad/delta-neutral

Listener question:

Question from Jack Schwartz - RE: Stock Replacement Strategy. Hello Option Block All Stars. My question refers to the Stock Replacement Strategy you advocated on a recent episode (I'm sorry but I don't remember the episode number). The benefits you listed included reducing your capital outlay since equities can only be margined at 50% while options offer substantially higher leverage. So can I assume that I can receive the same benefits from this strategy using a stock future that I can using an equity option? Or are there elements that options provide that futures do not? Thanks. Jack.

Around the Block/This Week in the Market: The Federal Reserve releases the notes from its last meeting. There are several other economic reports worth noting listed below as Alcoa kicks off another round of quarterly earnings.

Oct 12: JOLTS, FOMC Minutes Oct 13: Jobless Claims, Treasury Budget Oct 14: PPI, Retail Sales, Consumer Sentiment

Earnings Highlights This Week:

Tuesday - Alcoa Thursday - Delta Air Lines, Marriott Vacations Worldwide Corporation Friday - Citigroup, JP Morgan, Wells Fargo

Option Block 562: The Sexy Yield Party

Oct 8, 2016 01:02:26

Description:

Trading Block: An anemic day in the market. Deutsche Bank does not need a bailout for now, IMF says. DB-$13.50; normal ADV is around 30k, today it was over 65k. Twitter shares plunge on report bidders are scarce. TWTR off 20%.

Odd Block: Puts trade in JP MorganChase and Co. (JPM), calls trade in Wal-mart Stores, Inc (WMT), puts trade in Lowes Companies, Inc (LOW).

Strategy Block: Mike discusses weekend risk.

Mail Block/ Options #QuestionOfTheWeek

What is your preferred way to trade #Volatility? $VIX? $VXX? $XIV? $SPX? $SPY?
VIX Options/Futures?

VXX? XIV? S&P Strad/delta-neutral?

Around the Block/This Week in the Market:

Oct 6: Jobless Claims Oct 7: Unemployment (NonFarms Payroll)

Join us NEXT WEEK at Stocktoberfest

Thursday, October 13 - Saturday, October 15 Location: Hotel del Coronado, San Diego

Option Block 561: Dangerous Call Volatility

Oct 5, 2016 01:04:30

Description:

Trading Block: It is that time of the month: OCC Cleared Contract volume up 2% in September. Exchange-listed options volume reached 357,041,027 contracts in September, up one percent from September 2015 volume of 354,782,668 contracts. TSLA: Quarterly sales numbers are strong. 70% increase in delivered cars over Q2. Production up 35%.

Odd Block: Puts trade in Deutsche Bank AG (DB), alls roll out in Pfizer Inc (PFE) and calls trade in Wells Fargo Co (WFC).

Mail Block: Listener questions and comments

Last Week Options #QuestionOfTheWeek -How will the election impact $VIX? Are we heading for #Trump-ocalypse or #Clint-astrophe? Share your feelings.

43% Spike > 20 - Blame Trump 11% Spike >20 - Blame Clinton 17% No impact (12-14 range) 29% Modest Increase (15-20)

This Week Options #QuestionOfTheWeek - What is your preferred way to trade #Volatility? $VIX? $VXX? $XIV? $SPX? $SPY? DM/Reply with alternatives

VIX Options/Futures? VXX? XIV? S&P Strad/delta-neutral?

Comments for listeners:

Comment from Mark Brandt - About last episode, The Sex Appeal of Options: SPX is a hot chick! Liked the put diagonal collar concept for open upside! Comment from Charlesturro - @OptionsInsider These are looking good today!! - regarding this activity - 6136 $DVAX Jan2017 18 calls went up on the PHLX marked buy write

Around the Block:

Earnings highlights this week include:

Tuesday - Micron Technology, Inc. Wednesday - Monsanto Company and Yum! Brands, Inc.

This Week in the market:

Oct 5: International Trade, Factory Orders Oct 6: Jobless Claims Oct 7: Unemployment (NonFarms Payroll)

Join us at A Leg To Stand On's (ALTSO) Rocktoberfest

Date: Thursday, October 6 2016

Time: 6pm - 11pm

Location: City Winery, 1200 W Randolph Street, Chicago

For more information, please visit the Rocktoberfest website.

 

Option Block 560: The Sex Appeal of Options

Oct 1, 2016 01:03:52

Description:

Today we have a very special guest co-host, Benjamin Londergan, Executive Managing Director and Head of Options Trading and Technology, Convergex.

Trading Block: Most indices closed sharply lower. That means the VIX closed higher. Was Deutsche Bank the biggest story of the day? The media dropped the dreaded "D" word. Crude is up again. Revisiting the CBOE/BATS deal.

Odd Block: Size PFE time spread goes up, size BHI call buyers and VNDA parity calls and combos trade.

Strategy Block: Uncle Mike discusses the biggest frustrations with collars and alternatives to that.

Mail Block: Listener questions and comments

What's the deal with PG?

Around the Block: Will the markets move from the election? The post-debate analysis.

Options #QuestionOfTheWeek:

How will the election impact $VIX? Are we heading for #Trump-ocalypse or #Clint-astrophe? Share your feelings.

Spike > 20 - Blame Trump Spike > 20 - Blame Clinton No impact (12-14 range) Modest Increase (15-20)

Option Block 559: Options Buyout Frenzy

Sep 28, 2016 01:03:31

Description:

Trading Block: Vol begins to head north again after a big selloff in VIX on Friday. The debates are coming! Merkel has no love for Deutsche Bank. Golf loses a king, Arnold Palmer. What can investors learn from his endorsements? Are you seeing Trump in the rearview mirror? CBOE agrees to buy market operator Bats for $3.2 Billion. With a B. Interesting turn into exchange consolidation rather than fragmentation.

Odd Block: Puts trade in EWG, calls trade in TCK and calls trade in DVAX.

Mail Block: Listener questions and comments

Question from @investor17 - Can you please highlight if PG puts were sold or bought? And give perspective on what these high Oct puts strikes 120 mean? (The information in question came from the Hot Options Report for 9.23.16.)

Around the Block: Have you checked out the OptionsHouse blog? OPEC meeting coming up, and they invited Russia. Deutsche Bank aftermath? The Fed.

Option Block 558: Sucking Up the VIX Slurpee

Sep 24, 2016 56:32

Description:

Trading Block: VIX apocalypse post-Fed. It looks like we were not pessimistic enough on Vol Views last week! How will next weeks first Presidential debate effect vol? Wall Street extends rally after Fed rate decision. Fed is perilously close to losing its credibility, says economist.

Odd Block: Calls trade in ETSY Inc (ETSY), from Monday, calls trade in Bank of America Corp (BAC), calls trade in Encana Corp (ECA), and calls trade in Pandora Media Inc (P).

Strategy Block: Mike Tosaw discusses call spreads vs. put spreads.

Mail Block/Options #Questionoftheweek:

Where will $VIX close after FOMC decision on Wednesday 9/21? Between 15.51 - 16.50 Between 14.50 - 15.50 Below 14.50 Above 16.50 Question from Sean O - Are there any options that had lopsided trading to one side - either puts or calls - leading into the Fed announcement?

Around the Block/This Week in the Market:

Sep 22: Jobless Claims, Existing Home Sales

Option Block 557: Get Your Bowels in an Uproar

Sep 21, 2016 01:00:40

Description:

Trading Block: AAPL! It is no longer the Feds market, it is now Apple's market. Last week Apple essentially carried the S&P 500, Dow, and NASDAQ, having one of its best weeks ever climbing 12% in only 5 days, or more than $75B in market cap! NASDAQ: The NASDAQ is now less than 1% away from hitting fresh all-time highs - The current all-time high is 5,287.61.

Odd Block: Calls trade in Infoblox Inc (BLOX), calls trade in Etsy Inc. (ETSY) and calls and puts trade in Plains GP Holdings LP (PAGP)

Mail Block: Listener questions and comments

OptionMonster question of the week: What is the difference between buying a debit call spread versus selling a credit put spread? Question from Richard Russell: To clarify my question, at 14:00 of episode 553 you state that a $6 straddle was pricing an 8% move following earnings. is this just the current ATM straddle? Question from Fred: I have listened to some of your broadcast and they were over my head. Which one should I focus on to listen to as a beginner?

Around the Block/This Week in the Market:

Sep 20: Housing Starts

Sep 21: EIA Petroleum Status, FOMC Announcement Sep 22: Jobless Claims, Existing Home Sales

Earnings for the Week:

Tuesday: Adobe Systems Corporation, FedEx, KB Home, Lennar Corporation Wednesday: Bed Bath & Beyond, CarMax, General Mills, Herman Miller Thursday: Rite Aid

Option Block 556: Flimflammery and Skull Blockery

Sep 17, 2016 01:04:07

Description:

Trading Block: Volatility is coming back! Wall Street gains on Apple, dimmer chances of rate hike.

Odd Block: Calls trade in Lending Club Corp (LC), calls trade in Infoblox Inc (BLOX), and calls trade in Technology SPDR (XLK)

Mail Block: Listener questions and comments

Question from Yukoner: Do you ever do spreads in LEAPS? Why and how? So I used trade the LEAPS rather than guy the stock. Is that s good use case? Question from Trader Shawn: What is the difference between USO and UCO? Question from Vegs: I am seeing lots of big fat options OI tied to the big ES 2200 strike. Does this mean big traders are betting that the S&P will rally past 2200? Can all of this open interest have the net effect of forcing the S&P to that strike at expiration? Do you view this open interest solely coming from pros, or are retail reflecting there as well?

Strategy Block: Uncle Mike Tosaw discusses vertical LEAPS rolls.

Around the Block/This Week in the Market: Sep 16: CPI, Consumer Sentiment

Option Block 555: Will the Fed Please Shut Up

Sep 14, 2016 01:01:58

Description:

Trading Block: Dow rebounds 130 points amid rate hike debate. Vol explodes higher and the bulls' confidence is tested. TSLA: Shares of Tesla Motors Inc. fell in pre-market trading but was slightly higher after the open. SSNLF: Shares of the world's biggest smartphone maker plunged 7% Monday.

Odd Block: Calls trade in Gold Fields Ltd (GFI), calls trade in Southwestern Energy Co. (SWN), puts trade in HCA Holdings Inc. (HCA).

Mail Block: Listener questions and comments

Question from JDiggs - What is up with Uber IPO? They crapped away over $1B in the first half of this year already. I can't wait to buy puts on them! Although I guess those puts would probably be pretty pricey since I can't be the only one who think these numbers are crazy. Question from Begs - When ES shoots up and at an all-time high in summer, farms are slow. It was very likely Monday would be thin in the market. Is it possibly to sell premiums when this happens, and make money on quiet Monday?

Around the Block/This Week in the Market: It is a heavy week as far as economic reports go with Thursday at 7:30 CT being exceptionally busy for reporting. In addition, quadruple witching expiration takes place on Friday.

Sep 13: Treasury Budget Sep 14: Import and Export Prices Sep 15: Jobless Claims, PPI, Retail Sales Sep 16: CPI, Consumer Sentiment

Option Block 554: Crude Battle Plus the Collar-Risk Reversal Breakdown

Sep 10, 2016 01:03:16

Description:

Trading Block: August this year was the lowest average daily volume for puts and calls since October 2012.

Stocks to Watch:

TWTR - Stock off over 5% AAPL - World not enthused with new iPhone, stock off nearly 3% TSLA - Stock back below $200 - With the combined weight of SCTY deal controversy, cash squeeze and SpaceX explosion. SBUX - CEO endorses Hilary, stock off nearly 2%. Crude stock drop sparks rally. U.S. crude stocks fell by a whopping 14.5 million barrels last week.

Odd Block: Calls trade in TransOcean LTD (RIG), calls trade in Chesapeake Energy (CHK), and calls trade in iShares FTSE / China ETF (FXI)

Mail Block: Listener questions and comments

Question from JPMTrader: What is the call and put volume like for expirery for the 110s and 107s in Apple? Question from TradeCraft: Is there a correlation between high options OI and high options price levels?

Around the Block/ This Week in the Market:

Sep 7: JOLTS, Beige Book Sep 8: Jobless Claims, EIA Petroleum Status

Earnings tomorrow include:

The Kroger Company Mattress Firm Holding Corp

Option Block 553: Hearing Crickets

Sep 3, 2016 01:00:23

Description:

Trading Block: OCC Cleared Contract volume down 24% in August. Earnings today: (before the bell) Campbell Soup Co., Lands End, Vera Bradley; (after the bell) Lululemon Athletica Inc. Bill Gross says Janet Yellen has "Mastered the art of market manipulation." U.S. stocks turn lower to start September on unsteady footing as energy sinks.

Odd Block: Puts trade in Iridium Communications Inc. (IRDM), calls trade in Chevron Corp. (CVX) and calls trade in Pandora Media Inc. (P).

Strategy Block: Uncle Mike Tosaw discusses a real life collar example.

Mail Block: Listener questions and comments

Question from Richard Russell: Can you explain in detail how you use the spread trade parameters to predict the anticipated underlying movement at expiration? Question from Fred: Can you talk about how you assemble a watch list for options trades? Including individual stocks and options trades.

Around the Block: Reviewing LULU, non-farms number released tomorrow.

Option Block 552: Controversy Options: VRX, HLF, MYL and More

Aug 31, 2016 01:05:40

Description:

Trading Block: Stocks to Watch: Mylan, Herbalife, and Caesars Entertainment.

Mylan on Monday said it would launch a generic alternative to EpiPen at a 50% discount after being criticized for dramatically raising the price of the lifesaving drug. Shares gained 2.4% to $44.05 in premarket trading. Carl Icahn bought more shares in Herbalife on Friday, just days after he weighed selling his stake in the controversial nutritional-products maker. Herbalife shares rose 2.7% to $62.11 premarket. Federal Reserve Chair Janet Yellen speaking from Jackson Hole indicated that the U.S. central bank was nearing the point of raising the short-term Fed Funds rate once again, possibly at their September meeting. VIX index (13.65%) ticked slightly higher last week trading above 14% Friday, indicating that investors were once again increasing their bids for option premiums.

Odd Block: Reviewing a trade from last week in Big lots Inc. (BIG), MSFT strangle seller, Possible roll of MOMO calls, and breakout calls trading in GNW.

Mail Block: Listener questions and comments

Question from Hemet: What is the best way to trade diagonals on VRX? Question from Jesse: So, I am LOVING The Options Insider, wish I had discovered you a long time ago.  You were asking Rock Lobster listener feedback - and you mentioned something like "even though you get all your juice for free..." Was that a pop-culture reference, or is he somehow buying call options for free... or just super cheap that it seems free? Do you mind clarifying? Thanks for the great shows.

Around the Block/This Week in the Market:

Aug 29: Personal Income Aug 30: Consumer Confidence Aug 31: Chicago PMI Sep. 1: Jobless Claims Sep. 2: Unemployment, International Trade, Factory Orders

Option Block 551: Epic MYL Rant and HPQ Call Fail

Aug 27, 2016 01:02:57

Description:

Trading Block: Earnings today include: Gamestop, Ulta Salon, Cosmetics and Fragrance. Gamestop (GME) is at $32.21, ATM straddle: $1.50, or approx. 4.6%. Stocks to Watch: Mylan, Medtronic, Signet Jewelers, Sears, Guess. Mylan NV responded Thursday to backlash over price increases for its EpiPen emergency allergy treatment by promising to reduce the costs that some patients pay, though the drugmaker stopped short of saying it would roll back prices or limit future increases. Shares rose 2.18% to $44.09 premarket. What to expect from Fed Chair speech at Jackson Hole.

Odd Block: From 8/24) Earnings call buyers in HP Inc. (HPQ), Jan vertical buyers in United Continental Holding Inc. (UAL), call buying across strikes in Goldcorp Inc. (CG), and put spread buying in Big Lots Inc.(BIG).

Strategy Block: Uncle Mike Tosaw discusses trading covered calls, even when they are not paying a lot.

Mail Block/Options #QuestionOfTheWeek:

$USO is trading at $11, up 19% in Aug. The Sep ATM straddle is at $.80, 10 Puts at $.10, 12 Calls at $.09.

Would you:

Sell the Straddle Buy the Straddle Buy put/Collar Sell Put/Bull Risk Revers

Around the Block/This Week in the Market:

Aug 26: GDP, International Trade, Consumer Sentiment

Option Block 550: Buy Your War Bonds Now

Aug 24, 2016 01:03:07

Description:

Trading Block: The one- year anniversary of the 8/24 flash crash looms near. Yellen speech at Jackson Hole set to dominate mood on Wall Street. VRX continues its roller coaster ride. Up another 8% today - volume 1.5 ADV by 12PM. Calls 1.5 /1 over puts, IV 30 61. Sep. ATM straddle approx. $4, approx. 13%. Confirmed Monday that it has hired Zoetis executive Paul Herendeen as its new chief financial officer.

Odd Block: Calls trade in Starbucks Inc (SBUX), calls trade in Marvel Tech Group (MRVL), puts trade in General Growth Properties Inc (GGP)

Mail Block/Options #QuestionOfTheWeek:

$USO $11, up 19% in Aug, SEP ATM steaddle= $.80, 10 Put= $.10, 12 Call = $.09.

Would you:

Sell the Straddle Buy the Straddle Buy put/Collar Sell Put/Bull Risk Reversal Question from Natalie L. - I keep receiving email promotions from an “expert” who says his top rule of trading is that he never buys options. He only sells them. What is this about? Is this a reliable approach to options trading or should I delete these emails?

Around the Block: A look at this week in the market:

Aug 23: New Home Sales Aug 24: existing Home Sales Aug 25: Jobless Claims, Durable Goods Aug 26: GDP, International Trade, Consumer Sentiment

Option Block 549: Squeezy Mcheesenstein

Aug 20, 2016 01:04:17

Description:

Trading Block: Earnings today (before the bell): Wal-Mart, Hormel Foods, MSG Networks); (after the bell): Gap, Ross Stores. Wal-Mart closed at $73. ATM straddle $2.75, approx. 3.8%

Options #QuestionoftheWeek: $VRX $26.66 up 7% Monday. IV30 is 63. HV30 is 99. Looking out 1 month would you rather:

Buy Calls? Buy Puts? Sell Premium? Will not touch $VRX

Odd Block: Calls trade in JA Solar Holdings Co. (JASO), puts trade in iPath SP Crude Oil ETF (OIL), puts roll in Eli Lilly and Co (LLY), and puts trade in Harley-Davidson Inc (HOG).

Strategy Block: Uncle Mike Tosaw discusses long-term collars and bonds.

Mail Block: Listener questions and comments

Question from RealRK: Speaking about bonds, any better option than buying puts on HYG in anticipation of rate hikes and since it was lagged the price of oil? Question from Vegs: Lots of big fat options OI tied to big ES 2200. How do I see this information? Does this mean big traders are betting on 2200? Does that mean pros or retail?

Around the Block: Earnings highlights for Friday include: Deere & Company, Estee Lauder Companies, Foot Locker, Stein Mart

Option Block 548: Chatting About VRX, VIX, AMZN, PAAS and more

Aug 17, 2016 01:03:37

Description:

Trading Block: New all-time highs across most major indices. Oil rallies yet again; up 1.5%. VIX cash still below the 12-handle. Earnings Tuesday: BMO. Stock $137. ATM straddle approx. $4/3%.

Odd Block: Vertical put buying in Polaris Industries Inc. (PII), vertical call buying in Energy Transfer Partners LP (ETP), buying calls in Akamai Technologies Inc. (AKAM)

Mail Block/Options Question of the Week: What is your preferred way to trade crude oil? #QOTW

WTI Options/Futures USO Options/ETF XLE Options/ETF Brent Options/Futures Question from Joe736: Do you think VRX will selloff a buck to open tomorrow?

Around the Block: This Week in the Market

Aug 15: Treasury International Aug 16: CPI, Housing Starts, Industrial Production Aug 17: Fed Minutes Aug 18: Jobless Claims

Option Block 547: TWTR Frenzy, BABA Bounce and VRX Volatility

Aug 12, 2016 59:36

Description:

Trading Block: Strong earnings, surge in oil power Dow to record intraday high. Earnings today: Before the bell: Alibaba Group Holding Ltd, Kohls Corporation, Macys Inc.; After the bell: Cosi, Inc., Nordstrom Inc. VRX: ATM straddle approx. $3, 13%. So much for put buyers Stock opened $1.50 higher and closed nearly $6 higher - surrendered most of those gains today.

Odd Block: Calls trade in Twitter Inc (TWTR), calls trade in Alibaba Group Holdings (BABA), puts trade in SPDR Retail ETF (XRT)

Mail Block: Options Question of the Week

Options #QuestionoftheWeek. What is your preferred way to trade crude oil? #QOTW

WTI Options / Futures USO Options / ETF XLE Options / ETF Brent Options / Futures Question from Rpatel117 - Do you guys think DIS cross 100 this week?" Question from Matrix - Never sold options before. Why do some people prefer to sell them when they can buy them instead? Question from Cucas - What are the best resources for weeklies?

Around the Block: This Week in the Market

Aug 9: Productivity and Costs Aug 10: JOLTS, Treasury Budget Aug 11: Jobless Claims, Export Prices Aug 12: Retail Sales, Consumer Sentiment

Option Block 546: VRX and Buffett's Weapons of Mass Destruction

Aug 10, 2016 01:03:25

Description:

Trading Block: Earnings today include (before): Dean Foods, Sotheby's, Tyson Foods; (after) Hertz Global Holdings, Rackspace, WebMD Health Corp. Options bears descend on Valeant ahead of earnings. Traders are betting shares are due for even more pain. Non-farm payroll brightens the U.S. economic outlook.

Odd Block: Puts trade in Tupperware Brands Corp. (TUP), puts trade in SM Energy Co. (SM), calls trade in Targa Resources Corp. (TRGP)

Strategy Block: Uncle Mike Tosaw discusses money management

Around the Block: Earnings highlights for the week.

Tuesday: Coach, Exelon Corporation, Tribune Media Company, Valeant Pharmaceuticals, Walt Disney Company, Yelp Wednesday: Michael Kors Holdings, JD.com, Ralph Lauren, Shake Shack, The Wendy Company Thursday: Alibaba Group Holding Ltd, Kohls Corporation, Macys Inc., Nordstrom Inc. Friday: JC Penney Company

Option Block 545: Dump Like an Elephant

Aug 6, 2016 56:25

Description:

Trading Block: Earnings today: AMC Networks, HH Gregg, Icahn Enterprises, MGM Resorts International, Nokia Corporation, Starwood Property Trust, Time Inc. (before); Activision Blizzard, Almo Group, Bats Global Markets, LinkedIn Corporation, Lions Gate Entertainment Corporation, Weight Watchers International, Zillow (after). ATVI at $40.84, approx. 7%. Takeover rumor sparks busy day in Twitter options.

Odd Block: Aug call buyers in Comcast Corp (CMCSA), selling calls in Noble Corporation PLC (NE), and put buying in Market Vectors Gold Miners ETF (GDX).

Mail Block/Options Question of the Week: Twitter poll AND listener questions and comments

What is most important to you when choosing an options broker?

Commissions Platform Features Support/Service Educational Offerings Question from Grasshopper: I have heard options strategies may be vulnerable to "dump like an elephant" concerns criticism. Are the losses big, are high win rate strategies a cause for suspicion? Question from Fred: Would trading options change that way I look at/trade futures? Question from Anthony Cioffi: I have got a somewhat off-topic question from the show. I know Mark is a fight fan. What does he think of the recent sale of the UFC for $4.2 billion?Good deal, or did they dramatically over pay? What are the odds that the UFC will eventually go public as a result of this deal? It would be fun to trade options on that name. They would probably be very volatile heading into big fight cards.

Around the Block: Earnings on Friday:Virgin America.

This Week in the Market:

Aug 4: Jobless Claims, Factory Orders Aug 5: Non-Farm Payrolls, International Trade

Option Block 544: The Great Options Broker Debate: Commissions Vs. Platform

Aug 3, 2016 01:01:27

Description:

Trading Block: Earnings today include: AMC Entertainment Holdings, Loews Corporation (before), and Dunn & Bradstreet, General Growth Properties (after). U.S. stocks pressured as oil losses mount. Crude back below $40. BATS to launch “BAM” Options Auctions, offering competitive price improvement opportunity.

Odd Block: Calls selling and buying in MetLife (MET), calls selling in FDC First Data Corp (FDC), and LEAPS put buying in Trina Solar Limited (TSL).

Strategy Block: Uncle Mike Tosaw discusses portfolio margining

Options Question of the Week: What is most important to you when choosing an options broker?

Commissions Platform Features Support/Service Educational Offerings

Around the Block: Earnings Highlights for the Week.

Tuesday: Avis Budget Group, CVS Health Corporation, Ecolab, Electronic Arts, Etsy, Fitbit, Intercontinental Hotels Group, La Quinta, Pfizer, Potbelly Corporation, Royal Caribbean Cruises Wednesday: Cedar Fair, Crocs, GoDaddy, Herbalife, Intercontinental Exchange, Office Depot, Tesla Motors, Time Warner, Twenty-First Century Fox Thursday: Activision Blizzard, Almo Group, AMC Networks, Bats Global Markets, HH Gregg, Icahn Enterprises, LinkedIn Corporation, Lions Gate Entertainment Corporation, MGM Resorts International, Nokia Corporation, Starwood Property Trust, Time Inc, Weight Watchers International, Zillow Friday: Virgin America

Option Block 543: Broker Buying Sprees and Earnings Breakdowns

Jul 30, 2016 01:01:35

Description:

Trading Block: Big news! OptionsHouse is now the sponsor of The Option Block.

Earnings today include CME, FORD, DOW.

Ford off nearly 9% AMZN: $748.50. ATM Straddle approx. $50, 6.6% GOOG: $742. ATM Straddle approx. $38.50, 5%.

Odd Block: Calls trade in ETSY Inc. (ETSY), calls trade in The Technology SPDR (XLK), calls and puts trade in Yandex NV (YNDX)

Mail Block: Listener questions and comments

Question from AWorth: Can the Options House guys explain how their short buyback program works? Is it only for outright shorts, or if I have a short leg of a spread that is near the money on expiration but trading under $.10, can I close that out without commission or do I have to close the whole spread? Question from Thomas Hatch: I like dividend yield stocks. I listened to an earlier show and you mentioned writing covered calls to generate dividends. Can I apply this strategy to dividend yield stocks? Any risks I should watch out for when doing this? Question from 777: Are you aware of any specific gold arb between chinese gold derivatives and their U.S. equivalents?

Around the Block: Earnings on Friday include CBOE, Exxon-Mobil (XOM), Merck (MRK) and UPS (UPS). This weekin the market sees GDP, Consumer Sentiment on July 29.

Option Block 542: VZ Buys YHOO, plus AAPL Downgrade

Jul 27, 2016 01:01:37

Description:

Trading Block: Earnings! Not many earning today, but a big week is ahead. Apple after the bell tomorrow. Stock at $97.27, ATM Straddle approx. $2.90, or 3%. Oil prices fell to two-and-a-half month low. Verizon owns the internet from the 90s, AOL last year, Yahoo today.

Odd Block: Calls trade in Crown Castle Inter. (CCI), call buying in Bank of America (BAC), call selling in iShares MSCI Japan ETF (EWJ), and put selling in Lululemon Athletica Inc. (LULU).

Strategy Block: Uncle Mike Tosaw discusses selling put spreads on a dip in the marketplace.

Around the Block: Upcoming earnings include:

AMZN F GOOG TWTR FB

Option Block 541: Revenge of the Schwartzotron

Jul 23, 2016 57:33

Description:

Trading Block: Most major markets off 0.5% or more. VIX cash watch. Earnings today (before) Dunkin Brands,General Motors, Marriott Vacations, Southwest Airlines; (after) AT&T, Chipotle Mexican Grill, E*Trade Financial (ETFC). Apple Watch is a flop!

Odd Block: Calls trade in Nobel Corporation (NE), calls trade in Teucrium Corn Fund (CORN), calls and puts trade in Ebay Inc (EBAY), and calls trade in Mattel Corp (MAT).

Mail Block: Listener questions and comments....LIVE!

Size aside, what are the primary benefits of using SPX instead of SPY. What is going on in the VIX Aug 13 puts? Which names are the most reliable premium writes each quarter? Is there a tradeable pair between VIX and another member of the family of volatility products? What to do with the upcoming UVXY reverse split?

Around the Block: Earnings on Friday: American Airlines, General Electric Company, TCF Financial, Whirlpool Corporation.

Option Block 540: Free Trades with Every Pokemon

Jul 20, 2016 01:07:52

Description:

Trading Block: The coup that wasn't. Earnings today include Bank of America, Hasbro, Charles Schwab Corp., (before) and IBM, Netflix, Yahoo (after). A Brexit swoon boosts US options volume to a 10-month high.

Odd Block: Size puts in IZE iShares MSCI Turkey Market Index ETF (TUR), calls trade in Nobel Energy (NE), calls trade in Market Vectors Russia ETF (RSX), and calls and puts trade in ArcelorMittal SA (MT).

Strategy Block: Uncle Mike Tosaw diagonal spreads and when to know the market is at a low.

Around the Block: Earnings!

Tuesday: Discover Financial Services, Electronic Arts, Goldman Sachs, Interactive Brokers, Microsoft Corporation, TD Ameritrade Wednesday: Abbott Labs, American Express, eBay, Intel Corporation, MB Financial, Morgan Stanley, Northern Trust Thursday: AT&T, Chipotle Mexican Grill, Dunkin Brands, E*Trade Financial, General Motors, Marriott Vacations, Pandora Media, PayPal, Southwest Airlines, Visa, Inc. Friday: American Airlines, General Electric Company, TCF Financial, Whirlpool Corporation

Option Block 539: Transaction Taxes, Call Frenzies, and Fake Dividends

Jul 16, 2016 01:02:11

Description:

Trading Block: Earnings today include: JPMorgan Chase, Delta Air Lines. Legislation to impose financial transactions tax introduced. Clinton aims "Wall Street" tax at Flash Boys, not banks.

Odd Block: Calls trade in ConAgra Foods Inc. (CAG), calls trade in HollyFrontier Corp (HFC) and calls trade in Credit Suisse Group (CS).

Mail Block: Listener questions and comments

Question from Dmitry: What happens to Leaps for tickers that get delisted before expiration? Question from Mark Davis: Hello, I am a new listener. There was a mention of using covered calls to generate a "dividend". I am having trouble tracking down more information on this. Being still new to all of this, I am hoping to get a clearer picture of how it works. How far out on expiration should I look at to figure the stock price? Thanks!

Around the Block: Earnings on Friday include Citigroup, PNC Financial Services, US Bancorp, Wells Fargo

Option Block 538: The Hottest Girl at the Dance

Jul 13, 2016 01:04:05

Description:

Trading Block: Today we have a specail co-host, Steve Claussen, Chief Investment Strategist, OptionsHouse. What do the all-stars discuss?

Earnings today: Alcoa Inc. ATM Straddle approx. $.65-6.5%. The S&P hits new all-time high, Nasdaq above 5,000. CBOE to list SPX Monday-expiring Weeklys Options. Pokemon Go craze sends Nintendo stock soaring.

Odd Block: Short-term bulls go shopping at Macy's (M); calls trade in Sprouts Farmers Market Inc. (SFM); calls trade in Lifelock Inc (LOCK), and; puts trade in Deutsche Bank AG (DB)

Strategy Block: Uncle Mike Tosaw discusses alternatives to covered call trading.

Mail Block: Listener questions and comments

Around the Block: Earnings!

Wednesday: Yum! Brands, Inc. Thursday: JPMorgan Chase, Delta Air Lines Friday: Citigroup, PNC Financial Services, US Bancorp, Wells Fargo

Option Block 537: Surprise Options Successes and Failures

Jul 9, 2016 57:44

Description:

Trading Block: Post-Brexit market update. OCC Cleared contract volume up 11% in June. The urgency of the Fed to hike has faded away as Brexit further clouded the outlook. SEC approves NYSE request for new market volatility rules.

Twitter Poll Options Question of the Week: Which products' performance post-#Brexit surprised you the most?

43%: Volatility (VIX, etc) 0%: Rates (10yr, etc) 52%: Equity Index: (SPY, etc) 5%: FX (GBP/USD, EUR/USD etc)

Odd Block: Size call seller in Kinross Gold Corp (KGC), call buyer in General Electric (GE) and put seller in Interval Leisure Group Inc (IILG)

Mail Block: Listener questions and comments

Question from RazMichaghian: Info on how to set my stock scan on TOS on pre meters? Thank you Question from JViz: Why do people trade options with stock? Why do they buy calls and then sell stock in the same trade? What advantage does that offer? Question from AJones: Shame about Mini options. Great breakdown of the failing that doomed that product. Are there any other products out there that surprised you-either with their success or failure?

Around the Block: Friday, July 8: The health of the job market (Non Farm Payrolls Report)

Option Block 536: Hershey Insiders and VIX Iron Condors

Jul 2, 2016 50:25

Description:

Trading Block: Earnings today before the bell: ConAgra. U.S. lawmakers seek more money, authority for derivatives regulators. CFTC charges ex-Chicago Board Options Exchange director with fraud.

Options Question of the Week Twitter Poll: Where will $VIX close on Friday in this first trading week post-#Brexit? #QOTW

6%: Above 25 13%: 22-24.99 22%: 19-21.99 59%: Below 19

Odd Block: Calls go up in Hershey Co. (HSY), call buyers in Mondelez International Inc. (MDLZ), and put spread buyers in Encana Corp (ECA)

Mail Block: Listener questions and comments

Comment from Frank: @OpenOutcrier He must have ripped off somebody really important then... Comment from BruceX555: Some nimble-footed traders have made a lot on Brexit, and I reckon plenty have lost plenty. Question from Robert K.: ‏Hi, on a debit spread is the most you could lose is your credit? Question from Tor: Hello, I am (restarting) my options trading on a shoestring; any thoughts on mini-options? Thanks.

Around the Block: Vol coming in due to holiday weekend. Non-farms next week. Will there be a selloff due to quarter end? Will bonds come down at all? Mike is married....in gold.

Option Block 535: The Brexit Maelstrom

Jun 29, 2016 01:02:11

Description:

Trading Block: Brexit provides a review of pitfalls for options and futures traders. Oil extends decline as Brexit fallout spurs market volatility. Could the Fed potentially reverse course and cut rates?

Odd Block: Calls trade in Crown Castle Inter. (CCI), puts trade in Starbucks Corporation (SBUX)

Strategy Block: Uncle Mike Tosaw discusses how to select the correct collar size.

Listener Mail: Listener questions and comments

Question from David Shanabrook: Can you check the $AAPL weekly options for this week? Huge open interest (put and call) at $100, $105 accelerated repurchase by Apple? What is the effect?

Around the Block: Earnings!

Tuesday: Nike, Inc. Wednesday: General Mills, Monsanto Company, Pier1 Imports Thursday: ConAgra Foods

Option Block 534: Should I Stay or Should I Go?

Jun 25, 2016 43:30

Description:

Trading Block: Brexit, Brexit, Brexit! Results due late Thursday night. Tesla owner Elon Musk wants to acquire SolarCity, another company he owns. Gold. Oil.

Odd Block: Bull call spreads trade in RiteAid Corp. (RAD), bull call spreads trade in Vanguard FTSE Europe ETF (VGK)

Mail Block: Listener questions and comments

Question from Robert K.: I would like to use strategy regarding naked puts. If the naked put is far out of money what strategy could I use to protect myself. Could I use some type of order in case it was getting close to naked put strike price. Thanks Question from Tor: Hello. I am (restarting) my options trading on a shoestring; any thoughts on mini-options? Thanks. Question from Cristoff: Do you guys only trade options, or do you trade futures too? How do you decide when to use which? Question from 777: Are you aware of any specific gold arb between Chinese gold derivatives and their U.S. equivalents?

Around the Block: Brexit, Brexit, Brexit!

Option Block 533: Brexit Volatility Annihilation

Jun 22, 2016 01:01:28

Description:

Trading Block: Brexit: Much ado about nothing? Market rallies and VIX Cash sells off 2 handles, Dow jumps 200 points. Is that it for volatility? Goldman slashes stock demand estimates.

Odd Block: Puts trade in Newmont Mining Corp (NEM), calls trade in Credit Suisse Group AG (CS), and puts trade in Community Health Systems (CYH)

Strategy Block: Uncle Mike Tosaw discusses iron condors

Around the Block: Earnings!

Tuesday: Adobe Systems Incorporated, CarMax, FedEx Corporation, La-Z-Boy Wednesday: Barnes & Noble, Bed, Bath & Beyond Thursday: Accenture, BlackBerry Limited, Sonic Corp.

RCM Alternatives Event: Beyond The Stock Market: Investing 2.0
Tuesday, June 28, 2016
6:00 pm - 8:00 pm
1871 Auditorium | 222 W. Merchandise Mart Plaza Fl 12 | Chicago, IL

The CBOE & Option Pit Professional Traders Summit
Wednesday & Thursday July 20 & 21, 2016 (VIP session Friday morning July 22nd)
8:30 am to 5:30 pm
Chicago Board Options Exchange | 400 South LaSalle Street | Chicago, IL

Option Block 532: Dead Pro Wrestlers. And Brexit

Jun 18, 2016 01:01:13

Description:

Trading Block: Fed keeps rates unchanged, lowering odds for future hikes. Weak Nonfarms number derailed any Fed plans to raise in June. Earnings today: (before the bell) Oracle Corporation; (after the bell) the Kroger Co, Rite Aid Corporation.

CME Fedwatch tool:

July probability: 7% Sep: 29% Nov: 31% Dec: 47%

Options Question of the Week: $VIX surging ahead of FOMC, but for how long? Where will $VIX cash close Friday 6/17?

19% - 18-20 range 47% - 15-17.99 range (Winner) 25% - Above 20 09% - Below 15

Odd Block: Calls trade in Activision Blizzard Inc. (ATVI), calls trade in iShares Barclays 20+ year Treasury ETF (TLT) and calls roll in Wells Fargo & Co. (WFC).

Mail Block: Listener questions and comments

Question from Vegan: For an options newbie, how would I construct a trade with most possibilities to win? I understand that the potential profit might be small. What time frame is good as well? Question from Jim Duggan: FOMC and Brexit are approaching. What are some good ways to use options to play Brexit or FOMC? Question from John Doe: Do you have any specific strategies near or on expiration to profit from theta decay.

Around the Block: Brexit coming up on 6/23. Fade it? Buy into it? Much ado about nothing?

Option Block 531: Shady Options Activity in LinkedIn

Jun 15, 2016 01:02:27

Description:

Trading Block: Today we have a special guest co-host: Steve Claussen, Chief Investment Strategist, OptionsHouse.

What's going on:

VIX/VVIX surging ahead of FOMC - VIX Cash over 20, VVIX: 117. Suspicious options activity in LNKD/MSFT ahead of deal A group from Silicon Valley has a serious plan for creating a totally new US stock exchange.

Options Question of the Week Results: How are you prepping your portfolio for #BREXIT:

23% Buying S&P / Index Puts 27% Buying Vol -VIX, VXX, etc 15% Moving to Cash 35% BREXIT will not happen was the winner, but down from 50% earlier in the week.

Odd Block: Calls trade in JPMorgan Alerian MLP (AMJ), calls trade in SunPower Corp. (SPWR), calls trade in Barclays PLC (BCS)

Strategy Block: Uncle Mike Tosaw discusses being a bull ahead to the FOMC and Brexit.

Around the Block: What are the all-stars thinking about?

Earnings This Week: The Kroger Co, Rite Aid Corporation, Oracle Corporation. Federal Reserve Meeting on Wednesday.

Option Block 530: Option Block from a Train

Jun 11, 2016 57:48

Description:

Trading Block: VIX remains somewhat muted heading into FOMC new week as well as Brexit the following week. Billionaire George Soros returns as a Brexit bear. He's also loading up on gold and GLD options, SPY puts.

Odd Block: Calls trade in Market Vectors Oil Services ETF (OIH), calls trade in AT&T (T), and calls trade in Marathon Petroleum Corp (MPC).

Mail Block: Listener questions and comments

Question from JMFarrare: Do you guys have a service that alerts on unusual options activity in the mornings on a daily basis? If not can you direct me to someone that does? Thanks, your website is great! Question from 777: What adjustments should I make when trading options on expensive stocks vs. regular priced stocks vs. cheap stocks. Question from Eric: The last few days I have traded October OIX calls. I made money, but felt like I left a lot of money on the table due to the bid ask spread. How could I have improved on this?

Around the Block: Triple witching plus FOMC equals wild week ahead.

Option Block 529: Options Scandals and Brexit Battles

Jun 8, 2016 01:01:52

Description:

Trading Block: Market not spooked by Yellen today. Brexit worry has radiated around world as poll puts traders on edge.

Odd Block: Calls trade in Calpine Corp (CPN), calls trade in EI Dupont (DD), and calls trade Enterprise Products Partners (EPD)

Listener Questions: In which the listeners take over

Question from Andy Noble: What do you guys think about this scandal over the super trader? Another black eye for options? Question from Andre Chiles: I am new to the market, but I was wondering if you could help me learn and make some money. Question from Mr. Niggles: Saw the headline link on Options Insider about the stock replacement strategy. What do you think of using this strategy in the current market conditions?

Around the Block: Earnings!

Tuesday: Michaels, Dave & Busters Wednesday: Lululemon Athletica, Restoration Hardware Thursday: H&R Block

Option Block 528: Staring into the Eye of Sauron

Jun 4, 2016 01:03:49

Description:

Trading Block featuring guest co-host Todd Rich, President of OM Media (an affiliate of OptionsHouse).

Crude oil and energy stocks It is that time of the month - volume time. OCC announced that cleared contract volume in May reached 319,533,636 contracts, a four percent increase from the May 2015 volume of 308,639,215 contracts. YTD average daily cleared contract volume is also up four percent from 2015 with 16,734,689 contracts.

Odd Block: Calls trade in Xilinx Inc. (XLNX), calls trade in iShares MSCI UK (EWU), calls and puts trade in Macys Inc. (M), and calls trade in Marriott International Inc. (MAR).

Mail Block: Listener questions and comments

Question from Niles - Are there any triple witching levels coming soon? If so, how do they influence the options market and expiration? Question from Fred - I kind of hit a wall in my options development. Maybe my focus was too split between learning about futures and learning about options. Are you familiar with the books by Jim Dalton? He wrote a book about options trading but he does not like the greeks and he does not like many conventional options trading strategies. He only uses them when necessary. I guess this is a long way to asking when I should use options vs. futures Question from Jack - Have you ever used the PREM indicator? It is for arbitrage traders. If so, how does it play out in the options market?

Around the Block: Non-Farms on Friday (to be released at 7:30 a.m. CDT Friday)

Option Block 527: Dubious Calls and Silly Stupids

May 28, 2016 01:04:03

Description:

Trading Block Featuring guest co-host Nick Howard, Bantix

Soybean rundown: Is the collar skew still favorable? Gold rundown: GLD vs Futures options. The SEC has obtained a court order to freeze the profits of a trader who allegedly manipulated a technology stock through a false regulatory filing traced to a computer in Pakistan.

Odd Block: Calls trade in WisdomTree India Earnings (EPI); calls trade in CurrencyShares Euro Trust (FXE); puts trade in Royal Bank of Canada (RY)

Mail Block Question of the Week:

How many US options exchanges will there be at the end of 2016?

1.) 14

2.) 15

3.) More than 15

4.) Less than 14

Question from Ms Fidious: What the heck is a stupid? Question from MDavis82: Just started listening to the show. In one of the first few shows it was mentioned that you can use selling of options to in essence create a dividend on a non dividend stock. Is there more information about this laid out somewhere (puts, calls, how far out, what strike price, what if underlying goes up or down). Thank you and love the show!

Around the Block: What's coming up from the Fed? Holiday weekend. What's happening with the ag markets? Brexit and pound skew. Should we sell in May and go away?

Option Block 526: Options on a Sunny Day

May 25, 2016 58:13

Description:

Trading Block: Will anything useful come out of the Fed meeting? Will the United Kingdom leave the EU? Bayer offers to buy Monsanto for $62B

Odd Block: Calls trade in Comcast Corp (CMCSA), calls and puts trade in Bed Bath and Beyond (BBBY), calls trade in Corning Incorporated (GLW)

Strategy Block: Uncle Mike Tosaw discusses how not to force a trade.

Mail Block: Listener questions and comments

Question from Trader Shawn - With the recent rise and fall of crude oil, is there an options tell that we can use intraday to see when these movements are setting up? Question from T. Nguyen - G'day Options Insider! Just wanted to know if the members of the Option Block panel ever make use of offline options position modeling software and if so, which would be their recommendations and why? What about tablet/phone apps that model option positions? I am frequently in transit and do not always have the luxury of an internet connection to access my brokerage account, but I love testing and modeling positions, hence the question. Cheers

Around the Block: Earnings: Retail Earnings Parade Continues

Tuesday - Best Buy Co, Inc., DSW Inc., Hewlett Packard Enterprise Company, Intuit, Kirklands Wednesday - Costco, Express, Guess?, Lions Gate Entertainment, Popeyes Louisiana Kitchen, Tiffany & Co, Williams-Sonoma Thursday - Sears (before bell), Abercrombie & Fitch, Burlington Stores, Dollar General, Dollar Tree, GameStop, Movado, Ulta Salon Friday - Big Lots

Option Block 525: Causing Confusion and Delay

May 21, 2016 01:00:38

Description:

Trading Block: Earnings Thursday (retail heavy)

After the bell: Gap, Inc., Ross Stores, Shoe Carnival, Before the bell: Wal-Mart, Dick's Sporting Goods, HH Gregg, Stein Mart, The Bon-Ton Stores Stocks to watch: Wal-Mart, Monsanto, Advance Auto Parts, Tesla, Urban Outfitters. This S&P 500 Death Cross could be the real deal.

Odd Block: Calls trade in Kinross Gold Corp (KGC), call buyers trade Coeur Mining Inc. (CDE) and puts trade in Market Vectors Gold Miners (GDX)

Mail Block: Listener questions and comments

Question from 777 - With commodity based ETF options - anyway to trade roll risk?

Around the Block: Earnings on Friday- Campbell Soup Company, Deere & Company, Foot Locker Inc. Rate hike watch: key dates and data.

Option Block 524: From Footloose to Options Trading

May 18, 2016 57:41

Description:

Trading Block: Weekend Review: VIX Options and Futures 5/9 through 5/13. Has VIX bottomed? Yen volatility surges as Central Bank meetings loom. Hedge funds are not what they used to be.

Odd Block: Puts trade in Twitter Inc. (TWTR), puts trade in Materials Select Sector SPDR (XLB), and puts trade in CF Industries Holdings inc. (CF)

Strategy Block: Uncle Mike Tosaw discusses ratio spreads and sector investing.

Mail Block: Last week, the options question of the week was "What is your favorite options trading film?" TWTR weighed in with the following:

69% Trading Places 23% Rogue Trader 8% Quicksilver and Mark B. offered up 9 1/2 weeks because Mickey Rourke was an arbitrageur. Have you ever used the FCOJ scene from Trading Places to explain to people what you do?

Around the Block : Where will we see SPX, GLD, crude this week? Fed on Wednesday.

Option Block 523: How to Get Caught Cheating

May 14, 2016 34:24

Description:

Trading Block: S&P was all over the place, to settle down only 0.2%. A little flip on volatility. Apple is no longer the most valuable company in the world. Will online retailers take over retail stores? Are malls dead? Monsanto cheater, could you be more obvious?

Odd Block: Big call buying in JNK, massive long-term call buying in JD, and UPS calendar put trades.

Around the Block: Bears mini camp. Retail sales numbers. Standard options expiration next week.

Option Block 522: Options Civil War

May 11, 2016 59:32

Description:

Trading Block: Options Civil War: Which side are you on? Earnings today before the bell: Tyson Foods, Liberty Media Group, Sothebys. Traders on edge as Staples-Office Depot deal decision looms. Are markets more sensitive to the Fed these days? Stocks to watch: LendingClub, Krispy Kreme, Freeport-McMoRan, Valeant.

Odd Block: Call roll in American Capital LTD (ACAS), buying time call stupid in Nokia Corp (NOK), and put spread buyers in JPMorgan Alerian MLP Index (AMJ).

Strategy Block: Tosaw discusses long-dated covered call writing

Mail Block: Which Team are you on?

29% - Team Cap 71% - Team Iron Man

Listener questions:

Question from 777 - Have you heard any rumors that CME or CBOE will be acquired by a bank or insurance company? Question from SkyTrader - If I see a trend, what spread works best for capturing that spread - straight vertical or calendar?

Around the Block: This week the big retailers take the earnings stage, and names include:

Tuesday - Electronic Arts, Walt Disney Company, Dean Foods, Credit Suisse, Allergan Wednesday - Macy's, Wendy's Thursday - Kohls (before bell), Nordstrom (after bell), Shake Shack Friday - JC Penney, Honda

Option Block 521: TSLA and BABA Straddle Battle

May 7, 2016 01:02:22

Description:

Trading Block: Earnings "Straddle Battle" pitted Tesla against Alibaba. Who won? Other interest in Blizzard, XLE

Odd Block: OTM call buyers in Weatherford International PLC (WFT), long-term collar trades in Market Vectors Oil Services ETF (OIH), and put spread trades in SPDR S&P Metals and Mining ETF (XME).

Mail Block: Listener questions and comments

Question from Oarmin333 - Hi. I have been learning and using MProfile for a year now, all on an intraday basis using futures, mainly ES. I would like to expand my time horizon a bit to a few days to a few weeks. I have a 25k account I am working with. I understand the mechanics of futures, but I am considering using options due to longer holding periods, specifically being long premium, due to the defined risk. I am really not interested in selling options. Some people say that buying options is a fools errand and better to sell spreads, other say they only buy premium. I am not sure which way to go. If I hold for longer periods, I have to cut size way down in futures, which is fine. However, If I get good at options, there is a lot of flexibility. I am a discretionary trader and a directional trader. I would love to get your opinion on the matter, if you do not mind. Thanks a bunch! Also I can still play intraday moves with weekly options if I see that opportunity. If I am good at picking direction, can simple long/calls (non spreads) be a viable option, no pun intended. Question from Billy Boy: What's your opinion on the binary options from Nadex? Question from Flyer: What are the first steps to learn about options?

Around the Block: Earnings!

Friday: Cigna Corporation

Option Bbock 520: Imagine an Apple Tesla Mashup

May 4, 2016 01:01:14

Description:

Trading Block: What is going on in the market?

Options #QuestionOfTheWeek:

Earnings Straddles - $AAPL(4.5%), $FB(7%) & $AMZN(8%). Which will be the most accurate?

45% Facebook - Close $108.89 (Straddle. $7.62) - Open $119.57: Difference. $10.68 / 9.8% - Missed by 40% 29% Amazon - Close $602 (Straddle. $48.16), Open $666 - Difference. $64 / 10.6% - Missed by 33% - WINNER!! 24% Apple - Close $104.35 (Straddle.$4.70), Open $96 - Difference. $8.35 / 8% - Missed by 77% 02% Other

Earnings Straddle Battle:

TSLA - $241.75, Approx. 8.3% BABA - $4.70, Approx. 6%

Odd Block: Call buyer in Direxion Daily S&P 500 Bear 3x Shares, call buyers in Weatherford International PLC (WFT), and put buyers in Cabela’s Inc (CAB).

Strategy Block: Uncle Mike Tosaw discusses selling a put to get into a stock

Around the Block: Earnings!

Tuesday - CVS Health, Pfizer, Etsy, Avis Rental Car, Hyatt Hotels, GrubHub, Spring Corporation, Starwood Hotels Wednesday - Tesla, Whole Foods, Merck & Company, Priceline Group, Zynga, Anheuser-Busch InBev, Kraft Heinz, FITBIT Thursday - Alibaba, Occidental Petroleum, Chesapeake Energy, Friday - Cigna Corporation

On the economic calendar this week are the ISM manufacturing index, international trade data and jobless claims on Thursday. Lastly, the week ends with the all-important monthly employment report for April.

Option Block 519: OptionsXpress CEO Joins the All-Star Panel

Apr 30, 2016 01:05:28

Description:

Xpress Block: We have special guest co-host: Barry Metzger, CEO of optionsXpress. He discusses:

The latest developments at OX. Interesting platform upgrades and tech overhauls What are the OX clients trading during the height of earnings season? Any interesting customer questions/feedback?

Trading Block: Options Traders Brace for Amazon Earnings. Amazon at $612.60. ATM straddle $49, approx. 8%. LinkedIn Corporation - $123. ATM straddle $16.20, approx. 13%. Earnings before the bell: CME, Coca-Cola, Ford Motor Company, Honda Motor Company, MasterCard Incorporated, MSCI Inc, Time Warner Cable, United Parcel Service, Viacom Inc. It was a rough week for Apple - $96.20 today. Stock crushed post-earnings, opened down $8.35 or 8%. Icahn bails out on Apple stock. Nasdaq mulls new exchange to ease trading in illiquid ETFs.

Odd Block: Calls trade in Methanex Corp (MEOH), calls and stock trade in Ebay Inc. (EBAY), and calls trade in KKR and Co. (KKR).

Mail Block: Listener questions and comments

Question from Mohammed - Hi Mark! The Options Insider website is superb resource for new and experienced options traders. I know your weekly newsletter you folks you report significant/unusual done options trading activity across stock and ETFs. After searching on your site and overall online, I have found it quite difficult to locate a website which details some of the terminology used when describing the large blocks traded (e.g. "price variation"). If you could compile a glossary or an overview of how to view/assess options order flow that would be excellent. Keep up the great work! Thanks. Question from Maha - How difficult is it to become a successful options day trader?

Around the Block: A review of after-hours prices for LNKD, AMZN. Earnings parade continues with CBOE and XOM. Will the Icahn dump of AAPL have a longer-term impact. Central bank flim flammery.

Option Block 518: Earnings Preview: AAPL, AMZN, FB and More

Apr 27, 2016 01:01:21

Description:

Trading Block: Stocks drop ahead of earnings onslaught. Traders may just be forced to unwind all those VIX bets.

Earnings today before the bell: Xerox, Haliburton Earnings today after the bell: The Container Store AAPL - ATM straddle: $4.90, approx. 4.6% FB - ATM straddle: $8, approx. 7.2% AMZN - ATM straddle: $49.50, approx. 7.9%

Odd Block: Calls trade in Health Care SPDR (XLV), calls trade in BankRate Inc. (RATE), and calls trade in Dollar Tree Inc (DTLR)

Strategy Block: Uncle Mike Tosaw discusses dollar cost averaging.

Around the Block: Earnings!

Tuesday - Apple, Fiat Chrysler, 3M Company, Ally Financial, Buffalo Wild Wings, Canon, Chipolte Mexican Grill, ebay, Eli Lilly & Co, Hershey Company, JetBlue, Office Depot, Panera, Procter & Gamble, Spirit Air, Whirlpool Wednesday - Facebook, Boeing, Hilton, Nasdaq, Six Flags, Speedway Motorsports, Thursday - Amazon (after bell), Ford Motor Company (before bell), CME (before bell), Coca-Cola (before bell) Also, the Fed breaks from its two-day policy meeting Wednesday at 2 p.m. ET and investors around the globe will be watching to see what the U.S. central bank says about the timing of its next interest rate.

Option Block 517: Mega Earnings Spectacular: GOOG, MSFT, SBUX and More

Apr 23, 2016 59:07

Description:

Trading Block: Earnings!

Thursday - (Before the Bell): General Motors Company, Southwest Airlines, Under Armour, Verizon Communications; (After the Bell): Microsoft, Alphabet Inc., E*Trade Financial Company, Starbucks Corporation, Visa Inc. MSFT - $56, ATM Straddle $2.37 - approx. 4.2% GOOG - $756.40, ATM Straddle $41.50 - approx. 5.5% SBUX - $60.77, ATM Straddle $2.25 - approx. 3.7%

Odd Block: Call spread buyers in Marathon Petroleum Corp (MRO), call buying in Tronox Ltd (TROX), and paper buying in Kilroy Realty Corp (KRC)

Mail Block: Listener questions and comments

Question from Nick C.: Heard any chatter about CME or CBOE leaving Chicago? Question from Bob: Is the options market the most transparent financial marketplace? Question from Willy: What does the Option Block crew think of the TOS platform? Do you like it for pricing volatility and analyzing the Greeks?

Around the Block: Earnings on Friday - American Airlines, Caterpillar, General Electric Company, Honeywell International, Kimberly-Clark Corporation, McDonald’s Corporation.

This Week in the Market:

Monday - National Association of Home Builders' Housing Market Index Tuesday - Commerce Department releases new figures Wednesday - National Association of Realtors existing home sales data Thursday - Weekly jobless claims from the Labor Department

Option Block 516: Dueling NFLX Butterflies

Apr 20, 2016 01:02:12

Description:

Interview Block: Today we are joined by special guest Mal Clissold President and Owner of SCC Capital Group, LLC. We discuss:

How frequently and with what percentage do they delve into the individual stock world? What positions do you have that are designed to protect and potentially profit against a major one-day move? What kind of fund does he run? How does he control risk for his positions? What attracts him to a short vol position? What does he have on that he really likes right now?

Trading Block: Earnings today after the bell: Netflix. Earnings today before the bell: PepsiCo, Hasbro, Morgan Stanley. Options traders brace for another big move for Netflix shares.
Stocks to Watch: Pepsi, Chiasma, Hasbro, Morgan Stanley.

Odd Block: Calls trade in The Carlye Group LP (CG), giant call roll in - Western Gas Partners, LP (WES), and upside calls trade in - AK Steel Holdings Corp (AKS).

Strategy Block: Uncle Mike Tosaw discusses the importance of diversification.

Around the Block: Earnings!

Tuesday - Intel Corporation, Discover Financial Services, Goldman Sachs, Interactive Brokers Group, Johnson & Johnson, TD Ameritrade, Yahoo, Inc. Wednesday - Coca-Cola Company, Abbott Laboratories, American Express Company, Mattel Thursday - Before: General Motors Company, Southwest Airlines, Under Armour, Verizon Communications; After: Microsoft, Alphabet Inc., E*Trade Financial Company, Starbucks Corporation, Visa Inc. Friday - American Airlines, Caterpillar, General Electric Company, Honeywell International, Kimberly-Clark Corporation, McDonald’s Corporation

Option Block 515: The Many Joys of Limit Display Rules

Apr 16, 2016 58:49

Description:

Trading Block: U.S. stocks fluctuate on earnings a crude oil retreats with gold. CITI before the bell tomorrow. Stock = $45, ATM straddle - $1.40 / approx. 3%. CME traders say chances of April interest rate hike are zero. Earnings: Thursday (all before bell) - Bank of America, Wells Fargo, Delta Air Lines, PNC Financial Services, BlackRock.

Odd Block: Calls trade in Kate Spade Inc (KATE), puts trade in Seagate Technology PLC (STX), and calls trade in Freeport-McMoran (FCX)

Mail Block: Listener questions and comments

Question from AJ M. - I hope you guys can calm my frayed nerves over this DOL thing. What exactly is going on? Am I not going to be able to sell calls in my IRA anymore? Since the vast majority of my assets are in retirement accounts this would be a HUGE hit to my savings. Please tell me this is not the case. Is there anything I as a retail stock and options trader can do to help prevent this? What if I open an international trading account? Would that do the trick? Help - I need you guys to talk me off the ledge. Question from Jeremy M. - Hey Folks: I thought this might be a great question for The Option Block: Would you mind talking about the "Limit Order Display Rule: Exchange Act Rule 11Ac1-4." How it can help the retail investor? How the rule is applied to SPX and VIX options? When reading the actual rule, it can get a bit confusing because its talking about "odd lots" and "block size order," etc. Would be good to get your take on it. Perhaps the Rock Lobster may have an interesting perspective as a former market maker. Great program! Cheers, JM

Around the Block: This Week in the Market

Apr 15: Consumer Sentiment Earnings on Friday - Citigroup

Option Block 514: The Many Flavors of Skew

Apr 13, 2016 01:01:18

Description:

Trading Block: The fear gauge just hit an all-time high. Turbulence for Delta Air Lines, Inc.: Two earnings trades for DAL stock. Under Armor selling off over 5% today, and over 50% since last week. Earnings today after the bell: Alcoa, Bank of the Ozarks

Odd Block: Calls trade in SPDR GLD Gold Trust (GLD), puts trade Avon Products, Inc (AVP), and calls trade in Steel Dynamic, Inc (STLD)

Strategy Block: Uncle Mike Tosaw selling a call spread against a stock you own vs. selling a covered call.

Mail Block: Listener questions and comments

Twitter Conversation/Question from @4tee7 - Time to heavy my position $UA #masters #jordanspeith #chef #curry #goldenstate #dubnation.
‎‏@jfhotte Apr 8 @4tee7 UA was overbought already before the split. I see the stock @ 38$ next week
@4tee7 3h3 hours ago @jfhotte, good call (sold the class c shares before I felt too much pain), get back into class A once the dust settles $ua
@4tee7 I do not understand man... My puts premium at 1.5 day before split.. Today stock is down 4.5% and my option is worth 1.4 ...thoughts?
@jfhotte I got nothing, you should collecting on that one??? Is there a trade cost (whose the broker)?
@4tee7 what I got after split UA1160715P70 (UA1) it is up only 15% today while the stock down 5%, does not make sense.. @sellputs @Options
@jfhotte @sellputs @Options let me know when you find out, I am curious Question from Fayecuzername - Hey all, quick question. I am a hopium addict at times. Andrew discussed puts and stock, rolling down the put as the stock drops. Is the play to buy stock with the proceeds and dollar cost average or use the proceeds on another trade? This assumes you continue to like the stock. Thanks, you all are my trading methadone.

Around the Block: There is still time to make IRA contributions

Option Block 513: Why, Why, Why

Apr 9, 2016 01:03:58

Description:

Trading Block: Today we are joined by Nick Howard, Founder & CEO of Bantix Technologies, LLC, and creator of QuikStrike. Stocks tumble amid choppy start to April; Dow drops more than 150. OCC gratified by changes to DOL fiduciary rule that benefit users of listed options. Ally Financial jumps into brokerage business. Earnings: Thursday - Rite Aid, CarMax, ConAgra Foods (all before bell).

Odd Block: Calls trade in Crown Castle Inter. (CCI), calls and puts trade in iPath S&P 500 VIX mid term futures (VXZ), and calls trade in PowerShares DB US Dollar index ETF (UUP).

Mail Block: Listener questions and comments.

March Madness Poll: TradeKing was the final winner. Also, big congratulation to all our contest winners. Question from MJHill - Earnings season is approaching. What are your views on using an ATM long straddle as an earnings play? I plan on buying the ATM straddle about a week before earnings and closing the position the day before earnings are released. I am hoping to make some money on the increased volatility that comes immediately before earnings, but would like to hear your opinions.

Around the Block: This Week in the Market: The first full week of April and of the new quarter gets under way as the Federal Reserve releases the minutes from its last session. A new round of quarterly earnings is not far off.

Option Block 512: Do Not Smoke the Hopium

Apr 6, 2016 01:00:07

Description:

Trading Block: March Madness Poll - Winner: TradeKing, which (beat Interactive Brokers in the finals. Drawing winners will be announced on Thursday's Option Block. An update on March options activity from ISE. OCC cleared contract volume up 4% in March. CME Group notches record ADV in Q1, while FX volumes fall. Stocks to Watch: Apple, Tesla, Alaska Air, Intel, Brocade.

Odd Block: Calls trade in Nike Inc. (NKE), calls trade in KKR & Co. (KKR), and calls trade in Reynolds American, Inc (RAI).

Strategy Block: Uncle Mike Tosaw discusses the importance of knowing your exit in a trade before your entrance.

Mail Block: Listener questions and comments

Question from Bruno - Unusual activity in CPD puts. The customer bought and the stock rallied the next day. Does UA actually predict anything?

Around the Block: Earnings!

Tuesday - Walgreen's, Darden Restaurants, International Speedway Corporation Wednesday - Bed, Bath & Beyond, Constellation Brands, Monsanto Company Thursday - Rite Aid, CarMax, Con Agra Foods

This Week in the Market:

The first full week of April and of the new quarter gets under way as the Federal Reserve releases the minutes from its last session. A new round of quarterly earnings is not far off. Apr 4: Factory Orders Apr 5: International Trade, JOLTS Apr 6: FOMC Minutes Apr 7: Jobless Claims

Option Block 511: Revenge of the Time Combo

Apr 2, 2016 58:37

Description:

Trading Block: March Madness Poll - Vote today for TradeKing or E*Trade to find out who will go to the finals against Interactive Brokers, who beat OptionsHouse to make the final round. Stocks higher as the end to a rocky quarter nears. Yellen killed the strong dollar rally.

Stocks to watch:

Tesla – new electric Model 3 unveiled today. A modest rally for Tesla – up only 5% intraday. Lululemon – earnings announced yesterday and stock looks good, trading up about 10% post-earnings.

Odd Block: Calls and puts trade in Dynavax Technologies Corp. (DVAX), calls trade in SPDR Homebuilders ETF (XHB), and calls and puts trade in Pure Storage, Inc. (PSTG).

Mail Block: Listener questions and comments

Question from Gabe Rich: Mark, this is weird; huge buys for $INTC Apr 33 calls and the IV goes down?! I thought the market makers will push the price up when more buyers are around demand/supply. Thanks, I thought you might explain this since you are a former $INTC market maker. Question from 777 - with commodity based ETF options - anyway to trade roll risk? Question from Flyguy - If I sold a put $1 on Jan 16 with a current trading price of $.50 and stock goes to $5 -what happens and what is my risk?

Around the Block: What’s coming up in the week ahead?

Thursday - The USDA Prospective Plantings report will provide the official estimate on what farmers across the United States are planting this year. Friday, April 1 - The biggest economic release of the month, the Employment Situation Report, will hit newswires before the market opens on Friday. Earnings: Blackberry

Option Block 510: Trading Size Stupids in VIX

Mar 30, 2016 01:00:23

Description:

Trading Block: A bull market in the S&P 500 goes AWOL as history rewards patience. Could Jan. 1, 2018 become the next "Perfect Banking Storm"? Appeals court upholds determination that CBOE patents are invalid. Stocks to Watch: Pandora, Avon, GameStop, Cal-Maine

Odd Block: Selling paper in The CBOE Volatility Index (VIX), Aug call buyer in iShares FTSE/Xinhua China 20 ETF (FXI), and strange seller in Pinnacle Foods Inc. (PF)

Strategy Block: Uncle Mike Tosaw discusses diagonal call spreads.

Mail Block: Listener questions and comments

Question from Mike G. - Hello, Mike here. My father got me into selling covered calls by keeping me interested in his trading as a child. Recently, I started learning about other strategies and started listening to programs on the options insider radio network. Thanks. I recently convinced my father to use collars as opposed to simple covered calls, and I am starting to use long deep in the money leaps instead of stock to cover my calls. I have two questions. Given that I can use calls to cover my calls, is there any benefit to owning the underlying? Thanks a lot. Comment from Fayecuzername - Listened to episode 509 today. The listener question about Viceroys favorite Andrew butterfly answer is from episode 389. In the mail block I asked about a fly on expiration date and Andrew set me straight.

Around the Block: Earnings!

Tuesday - Dave & Busters Wednesday - Lululemon Athletica, Micron Technology, Carnival Corporation, Paychex. Friday - BlackBerry.

This Week in the Market:

Tuesday - Janet Yellen speech to the Economic Club of New York Thursday - The USDA Prospective Plantings report will provide the official estimate on what farmers across the United States are planting this year. Friday, April 1 - The biggest economic release of the month, the Employment Situation Report, will hit newswires before the market opens on Friday.

Best of Option Block: Theoretical Value & Implied Volatility

Mar 26, 2016 45:28

Description:

It may be a trading holiday, but you still need your Option Block fix, right? We dug through the archives to bring you some of the best of Option Block. This episode was posted in November, 2015.

Option Block 509: Phenomenally Ingenious Tree Trade

Mar 24, 2016 01:00:11

Description:

Trading Block: The most up-to-date result of our March Madness Poll. Stocks to Watch: Valeant, Tesla, Starwood, Marriott, Markit, IHS. Stocks dip, dollar advances in wake of Fed comments.

Odd Block: Bullish call action in iShares Dow Jones US Homebuilder ETF (ITB), upside call buyer in Kraft Heinz Co. (KHC), and christmas put tree in US Steel Corp (X).

Strategy Block: Uncle Mike Tosaw discusses out-of-the-money call buying.

Mail Block: Listener questions and comments

Question from Groose - Regarding Eurodollar futures options, are there different quirks between the months? Question from Trunghi Nguyen - Hey, hello Options Insider. Big fan of al of your work - listen to your shows all the time. Many Option Blocks ago, (around the Viceroys last show before he left, may have been his last show) he mentioned a past show where the Rock Lobster discussed how to trade a butterfly at expiration, and Alex thought it was pure gold. I cannot recall what type of butterfly trade it was, i.e. standard, iron, or broken wing, but Alex seemed impressed by Andrews explanation. Unfortunately, I have not been able to locate which episode this was aired on. Any chance you can find out and let me know? Love your work - when it comes to Options Insider, I go long. Comment from Joseph A. - Good morning Options Insider. Wanted to stop by and say thank you for providing me and many others with a free source of invaluable knowledge. I hope you do not mind, but I shared your page with a couple of trading groups that I am a member of. Thank again - happy trading!

Around the Block: Earnings!

Tuesday - Nike, Krispy Kreme Donuts Wednesday - General Mills Thursday - GameStop (after bell), Signet Jewelers (before bell), Cosi (after bell)

Option Block 508: The Lobster Flies Solo

Mar 19, 2016 43:01

Description:

Trading Block: U.S. crude options volatility sinks as prices bounce off Feb lows. CBOE to list options on FTSE 100 and China 50. Options traders prepare for "worst of all worlds".Fed scales back rate-rise forecasts as global risks remain. Earnings after the bell: Adobe Systems Inc., Aeropostale

Odd Block: Calls trade in iShares MSCI Emerging Markets ETF (EEM), calls trade in Genesis Energy LP (GEL), and calls trade in Technology SPDR (XLK)

Mail Block: Listener questions and comments

Question from Alex - Mark and the Options Block Dream Team, I have to keep it going in the same spirit since this is extremely educational and I am still not converted to shorter term selling. I was unfair to ask such a broad question so I will try to be as specific as possible. Let's revisit why I shorted 1y 25d (cash-secured) Put Option Vol was at its 2 year high (~57%). Vega($70/bp) further out is much higher than shorter term. Example: 14bp drop in 1 year Vol would result in an easy $1000(6% yield) profit in my strategy where 15% yield is if the option expires worthless. A similar kind of theta($5.55/day) premium of $1000 would require around 180 calendar days. Clearly theta premium collection is not interesting in my strategy (yet). Gamma is virtually 0 and hence the underlying needs to both trend down and Gap sharply (30%+) before I need to start worrying.
Most likely the next time the underlying will GAP down significantly is during earnings. Hence I can either avoid the period around earnings (close prior to earnings and reopen after) or gamble and keep my position through and essentially taking a risk of becoming a 'long term' investor with the underlying being in high 70s and then do a Wheel of Fortune kind of strategy on it.
Speculation aspect of my simple strategy - 1) Volatility will mean revert down 2) I strongly believe that this is a Side-Ways year for the entire US Market including the technology sector. Hence I believe I can capitalize on this speculation if I extend further out in my short selling.
Regarding Baby Sitting question. I can do some low frequency rolling on the Delta. I have done once already. I agree there is nothing much else to do here.
Lets forget about Shorter Term Selling and Theta Premium for a second and its nice exponential properties near expiry.
The follow up question is which is hopefully more particular: are there any practical ways of locking in on Vega Premium for a longer term Short Puts? Vol dropped 7bp since I entered but there is room for much more. I understand that drawing a line in the sand (say I close when vol drops to 40s or 30s) is a very good and practical way. But are there any other ways to lock in some Vega premium without fully closing on the strategy?
My background. I am a hardcore Quant guy who understands the theoretical part of Options valuation and Greeks inside out including some very exotic derivatives structures(calendar year asian options, swaptions, generation assets etc). That said, ironically, most folks like me are not very good with the practical aspects of Options trading so I hope I am not dumbing down the show with my impractical questions smile emoticon. Cheers, Alex.

Around the Block: Earnings on Friday in Tiffany & Co.

Option Block 507: Waiting for a Bonehead Political Soundbite

Mar 16, 2016 45:05

Description:

Trading Block: ICE would keep London Stock Exchange if it bought LSE Group. Fed to sit tight on rates at March meet, hint at hikes to come. Earnings today before the bell:
3D Systems Corp.

Odd Block: Put buying in Banco Bradesco SA (BBD), 1-by-2 put spread in CarMax Inc. (KMX), and calls trade in Delta Air Lines Inc (DAL).

Strategy Block: Uncle Mike Tosaw discusses short put spreads.

Listener Mail: Listener questions and comments

Question from Bob - I have heard pros say that when too many retail jump into a trade, then do the opposite - Does that apply to options as well? Question from 777 - What are the industry sectors least positively correlated to the major indexes? Are there any quirks to trading those using options?

Around the Block: Earnings!

High expectations for Adobe earnings, not so much for Oracle. Tuesday - Oracle Corporation, Constellium, DSW, Gerdau, HD Supply Wednesday - FedEx Corporation, Williams-Sonoma Thursday - Adobe Systems Inc., Aeropostale Friday - Tiffany & Co.

Option Block 506: Uncovered Covered Calls and IRA Options Debate

Mar 12, 2016 01:00:20

Description:

Trading Block: Big news today from an options exchange perspective: Nasdaq announced it has agreed to acquire International Securities Exchange (ISE), an operator of three electronic options exchanges, from Deutsche Borse Group. Investors greeted the Nasdaq deal to buy International Securities Exchange, the US options business of Deutsche Borse, with some skepticism on Thursday, sending Nasdaq shares down as much as 3.5 per cent. Earnings: Dollar General

Odd Block: Calls trade in Club Corp. Holdings Inc. (MYCC), puts trade in Peabody Energy Corp (BTU), and calls and puts trade Hilton Worldwide Holdings Inc (HLT)

Mail Block: Listener questions and comments

Twitter: The Options Insider- With a potential ban on trading options in IRAs looming - Tell us how you trade options in your IRA right now? Question from Alex - In OptionBlock503, we agreed that while it is very unusual, the 25D 1Y Cash-secured Put was entered for all the right reasons. The follow up question is then. What are the various practical ways to Risk Manage/Baby Sit a Long Term CashSecured Put under different scenarios of the underlying (underlying is trending up, down or sideways) and for different regimes of volatility? Cheers.

Around the Block: This Week in the Market

Mar 10: Jobless Claims, Treasury Budget Mar 11: Import and Export Prices

Option Block 505: Just Buy Upside Calls

Mar 9, 2016 01:01:50

Description:

Trading Block: Goldman Sachs sees best time in two decades to buy S&P 500 calls. Traders are betting the Federal Reserve will next raise U.S. short-term interest rates about six weeks earlier than previously thought, after the government reported U.S. employers added many more jobs than expected in February. Earnings today after the bell: Shake Shack.

Odd Block: Calls trade in Alcoa Inc. (AA), puts trade in Linn Energy LLC (LINE), and calls trade in VALE SA (VALE).

Strategy Block: Uncle Mike Tosaw discusses getting back into a trade you got out of, that has continued to go your way since.

Mail Block: Listener questions and comments

Question from FlyGuy - Do I day trade options anymore?

Around the Block: Earnings!

Tuesday - Barnes & Noble, Dick’s Sporting Goods Wednesday - Vera Bradley

Thursday - Dollar General

This Week in the Market: Mar 9: EIA Petroleum Report Mar 10: Jobless Claims, Treasury Budget Mar 11: Import and Export Prices

Option Block 504: What Makes a Butterfly Take Flight?

Mar 5, 2016 36:04

Description:

Trading Block: Continued relief rally. VIX now has a 16-handle. Huge contango in the VIX. Who blew the all-clear signal? Cage match in junk stocks. CBOE reported that total trading volume in February was 92.9 million contracts. OCC announces cleared contract volume increased in February. OCC announced that total cleared contract volume in February was 338,300,969 contracts. . Why CME would want to buy the London Stock Exchange? Why buy when you can make your own? What is Europe going to do?

Odd Block: Puts trade in Chesapeake Energy Inc. (CHK), puts trade in iShares Barclays 20+ year Treasuries (TLT), and calls and puts trade in Boardwalk Pipeline Partners (BWP).

Strategy Block: In his first ever strategy block, Andrew discusses what makes a butterfly take off.

Mail Block: Listener comments and questions

Question from Adam - Thank you for your shows. I am wondering if you know where can I get p/c ratio and call sizzle index and out sizzle index history? I use TOS but this info is not available for the past. Thanks Question from FutureMD - Is there a directional options strategy that you would suggest for someone who wants to play the 2016 election?

Around the Block: Earnings! Friday - Staples, Big Lots

This Week in the Market

Mar 3: Jobless Claims, Factory Orders Mar 4: Unemployment Report

Option Block 503: Tried and True Beats Bold and New

Mar 2, 2016 56:56

Description:

Trading Block: Traders are now taking the possibility of a Trump presidency seriously. What was once thought to be a flight of fancy is moving ever closer to becoming reality, with one of the real estate moguls rivals, Texas Senator Ted Cruz, declaring that Trump may be "unstoppable" if he dominates the upcoming Super Tuesday contests. Gold allure burnished by Fed outlook as treasuries lag: analysis - U.S. Treasury 10-year futures may continue to underperform gold over the medium-term in a global fixed-income environment punctuated by negative rates as the relative opportunity cost of holding the yellow metal decreases. Stocks mixed as oil prices rise above $33 a barrel - Stocks were mixed in lackluster trading Monday as oil prices rose and global stocks fell after a meeting of G20 finance officials ended without pledges for joint action to stimulate sagging global economic growth.

Earnings today:

Crocs, Inc. (before) Hertz Global Holdings (before) AMC Entertainment Holdings Icahn Enterprises Lumber Liquidators Holdings Tribune Media Company

Odd Block: Calls trade in Charles Schwab (SCHW), calls trade in Enbridge Inc (ENB), and calls trade in Signet Jewelers Ltd (SIG)

Mail Block: Listener questions and comments

Question from Alex - Mark, Thanks again for covering my question. I agree that I am not capitalizing on the Theta curve as much (although $5.3/per day is also decent). However my intention was more to capitalize on the Vega Surface where Vega tends to be much higher at longer maturities and it was especially bloated during the earnings date when volatility spiked to the highest ever level. Given that the Volatility levels are at its highest then Vega itself is expected to be at its highest ever. That said I am not really set-and-forget strategy and collect on theta premium. I just have to wait until the volatility normalizes for LNKD and collect on a decent Vega premium. In a sense I am shorting both Volatility and Vega. Hence further out months give richer Vega to short. And if i were to write shorter maturity puts, then Vega would have lost its juice in a month or two. As a side note, I entered into a CashSecuredPut, I do not trade on margin yet. Yield is approximately 15%. It would be a separate exercise to compute the Vega surface for LNKD. Maybe this question is an overkill for the show but at least this were some of my reasons why I shorted a 1-year put. Cheers, Alex Question from JM - Hey Folks. I thought this might be a great question for The Option Block: Would you mind talking about the "Limit Order Display Rule: Exchange Act Rule 11Ac1-4." How it can help the retail investor? How the rule is applied to SPX and VIX options? When reading the actual rule, it can get a bit confusing because its talking about “odd lots” and "block size order," etc. Would be good to get your take on it. Perhaps the Rock Lobster may have an interesting perspective as a former market maker. Great program! Cheers, JM. Question from 777 -Do I trade Eurodollar futures options? what drives massive OI? Question from TradersOM - Can a trader make a decent living buying calls and puts - or do you have to get crazy with the complex stuff like iron condors?

Around the Block: Earnings!

Tuesday - JD.com Ross Stores Wednesday - Costco Wholesale Corporation, American Eagle Outfitters, Goldman Sachs, Tribune Publishing Company Thursday - Kroger, Alamo, Barnes & Noble, Burlington Stores Friday - Staples, Big Lots

Option Block 502: Is Put/Call Worthless

Feb 27, 2016 01:00:07

Description:

Trading Block: Gold goes for a ride. SeaWorld earnings today after the bell and taking it on the chin. Off approx. 9%.

Odd Block: Calls and puts go up in Restoration Hardware Inc. (RH), call spreads go up in Marathon Petroleum Corp. (MPC), and puts go up in Cypress Semiconductors (CY).

Mail Block: Listener questions and comments

Question from Matt M1000 - Hello Mr. Longo and All Star Cast. I have been enjoying The Option Block and Volatility Views shows for years. You guys are the best! Keep up the great work! I would like you folks to discuss the "put-call ratio"...its use and merits as a tool. I have always discounted this metrics value, since both put and call options could be either bearish or bullish depending on how they are being used (i.e. purchased or sold). So what logic I have leads me to believe a put-call ratio would be pointless. Set me straight on this please. -Beanbag. Question from SkyTrader - If I see a trend, what spread works best for capturing that spread - straight vertical or calendar?

Around the Block: Earnings!

Friday - JC Penney Company, Hilton Worldwide

This Week in the Market

Feb 26: GDP, Consumer Sentiment

Option Block 501: More Drama in FIT, VIX and GLD

Feb 24, 2016 01:01:15

Description:

Trading Block: Options market sees 50% chance of massive S&P plunge. Stocks may have rebounded from their recent lows, but the option market still implies a big chance that stocks plummet anew before the year is out. Earnings today after the bell: Fitbit, Inc., ATM Straddle: $2.90 - 18.3%, calls 2/1 over puts; stock nearly hit $52 last summer: Now a pale shadow of what it used to be. Earnings today before the bell: Dean Foods.

Odd Block: Puts trade in Zoetis Inc. (ZTS), puts trade in Rio Tinto PLC (RIO), and puts trade in Prospect Captial Corp (PSEC).

Strategy Block: Tosaw dicusses ways to construct a wheel trade.

Listener Questions: Listener questions and comments

Question from Alex - Thanks Mark for the funny intro of me and featuring my question. I felt honored to get my simple question dissected so well. I loved it! You started the discussion with "there are not that many scenarios to short long term puts as a way to enter into equity unless there is some extreme volatility distortion where the 1 year put is extremely bid from a volatility perspective". My follow up question is then: Does the 1 year LNKD Implied Volatility not qualify as a such "extreme volatility scenario distortion". Check attached screenshot from OptionXpress below. The highlighted region is when I shorted the 25 Delta Put and ATM Implied Vol is at its highest ever. Definitely I would suggest a boot camp on commission fees and slippage costs and why even with those it is still better to do shorter term vs longer term dark side trades. Cheers, Alex Putting it concisely: Vega, Theta, low commissions and slippage costs are working for me in this one.

Around the Block: Earnings!

Tuesday - Home Depot, Avis Budget Group, Caesars Entertainment, Coca Cola, Dreamworks, Macys, Office Depot Wednesday - Target, Salesforce.com Thursday - Best Buy, Sears, Anheuser- Busch, Gap, Gogo Inc., Herbalife, Kohls, Marriott Vacations Worldwide, SeaWorld Entertainment, Starwood Property Trust, Weight Watchers Friday - JC Penney Company, Hilton Worldwide

It is fairly a heavy week as far as economic reports go including GDP and Consumer Sentiment. The market looks to keep the bullish rally going.

Feb 23: Consumer Confidence, Existing Home Sales Feb 24: New Home Sales Feb 25: Durable Goods, Jobless Claims Feb 26: GDP, Consumer Sentiment

The Option Block 500th Episode Spectacular

Feb 20, 2016 01:19:57

Description:

Trading Block: Welcome to our 500th episode. Today's special panel includes: Mark Sebastian, Mike Tosaw, Andrew Giovanazzi, and our must beloved former panelist Alex "The Viceroy" Jacobson. They discuss:

How many exchanges are too many exchanges? Options Insider question of the week The SEC Citadel Transaction fees Talking free of compliance issues And so much more...

Odd Block: Rolling calls in Coca-Cola Company (KO), calendar spreads trade in Time Warner Cable (TWX), and put sellingHess (HES)

Mail Block: Listener questions and comments

Question from TennisGr8: I've been hearing a lot lately about gamma scalping. How does it work, and who should use it? Is this second-order greek becoming the new options darling?

Around the Block: Are the bulls back in force? Always be prepared for a downturn.

Option Block 499: Crazy Call Skew in Gold

Feb 13, 2016 59:35

Description:

Trading Block: TSLA: Options traders are betting on a 16% move in Tesla shares in either direction through the end of the week. Four of the five most traded Tesla options on Wednesday were put options, but it was not clear whether investors were buying or selling them. It has been a rough year for Elon Musk - off $3.3B between TSLA and SCTY. Earnings today: Before the bell: Nokia, PepsiCo, After the bell: Activision Blizzard, Groupon, Pandora Media Group.

Odd Block: Calls trade in SPDR Gold Trust (GLD), calls trade in Yamana Gold Inc., and calls trade in IAMGOLD Corp (IAG)

Mail Block: Listener questions and comments

No love for daily options - Twitter poll has 40% of respondents saying heck no to dailies!! Comment from KDDiddy - Position Delta is a stupid term you must learn to get an Options license in Canada. Sure, we rule the hockey world, eh? But we are the Jamaican bobsled team of the Options industry. On behalf of all Canadians, I apologize for the term and, for the Montreal Exchange. Perhaps you hosers could suggest some reading on the subject of Delta. After Andrew pulled my jersey over my head and lobster clawed me with "Beta weighted to SPY" and "Extra curvature," I thought I better grab some books 'n start givn'er in the library." Question from Michael - @Options $15 put Twitter drops off the map; yet the premium still has been declining. Can you explain? Question from Alex - Insider Trading, What are your thoughts on Shorting 1Y 25 Delta Puts on LNKD midday today (LNKD is at 105 as I write this message)? Puts are quite juicy right now with quite acceptable break even points. I am very interested in hearing your feedback. Cheers, Big Options Trading Podcast fan, Alex.

Around the Block: Reminder: No show on Monday, February 15 due to the market holiday. Next show on Thursday, February 18 is our live 500th episode spectacular!

Option Block 498: Gold and Apple Lead the Charge

Feb 10, 2016 58:09

Description:

Trading Block: Stocks take another beating: Dow down 400. Gold tops $1,200 for first time since June on economic woes. Earnings today after the bell: Yelp - $16.17, down nearly $2 - over 10%; Before the bell: Hasbro, Loews

Odd Block: Calls trade in Market Vectors Gold Miners ETF (GDX), calls trade in Goldcorp Inc. (GG), calls trade in iShares MSCI EAFE Index fund (EFA), and calls and puts trades in Paypal Holdings Inc. (PYPL)

Strategy Block: Tosaw discusses when he is going to get back into this market.

Around the Block: Earnings!

Tuesday - Walt Disney Company, Coca-Cola Company Wednesday - Time Warner, Cisco Systems, Tesla Thursday- Nokia, PepsiCo, Activision Blizzard, Groupon, Pandora Media Group

Option Block 497: The Very Immediate Roll

Feb 6, 2016 01:03:19

Description:

Trading Block: Today we have guest co-host Dan Cook from NADEX. LNKD after the bell. ATM straddle: $22, approx. 11.5%. Wall St. fluctuates as equities track oil prices. Is oil driving the stock market - and should traders care? As energy rout deepens, CME, ICE reap benefit from record volumes.

Earnings today - Before the bell: ConocoPhillips, Intercontinental Exchange.

Odd Block: Calls trade in SPDR S&P Metal and Mining ETF (XME), calls trade in Market Vectors Gold Miners ETF (GDX), and calls and puts trade in BHP Biliton Ltd (BHP).

Mail Block: Listener questions and comments

Question from KDDiddy - Hey guys, Getting back to the great Stupid debate....I wrote in a few weeks ago regarding the use of a put stupid to hedge a stock 2% below market. You mentioned there is a better way using position delta. I understand position delta and delta neutral but sadly, although I have tried for a couple of weeks, I am too stupid to figure this out! Is there a formula? Would you explain? Regards, Mr. Not So Smart Sent from my iPhone

Around the Block: Upcoming activity in non-farms product on NADEX. Earnings on Friday for CME Group Inc.

Option Block 496: TWTR Bulls Piling In

Feb 3, 2016 54:02

Description:

Trading Block: OCC announced total cleared contract volume for the month of January was up four percent from January 2015 with 371,870,087 contracts, marking the third highest January on record. CBOE announced that it plans to list S&P 500 Index (SPX) Wednesday - expiring Weeklys options beginning February 23, 2016. ISE Mercury to launch on February 16, 2016.
Earnings today after the bell: Options on Google parent Alphabet Inc were busy on Monday ahead of the its quarterly results that could help it unseat Apple Inc as the most valuable company in the world.

Odd Block: Calls trade in The Kroger Co. (KR), calls and puts trade in Twitter Inc . (TWTR), and calls and puts trade in PVH Corp (PVH)

Strategy Block: Tosaw discusses the knockout collar.

Mail Block: Listener questions and comments

Question from JDon - Congrats on your milestone. Howd you get such a cool handle?

Around the Block: Earnings!

Tuesday - Chipolte Mexican Grill, Exxon Mobil Corporation, Merck & Company, Sirius, UPS, Yahoo Wednesday - CBOE Holdings, Exelon Corporation, General Motors Company, GoPro Inc., Pfizer Thursday - ConocoPhillips (before), Intercontinental Exchange (before), LinkedIn (after) Friday - CME Group Inc.

Option Block 495: The Pablum of QE

Jan 30, 2016 59:55

Description:

Trading Block: Earnings!

Ford Alibaba Amazon - rocking and rolling!

Odd Block: Calls trade in ICICI Bank Ltd (IBN), calls trade in Abbott Laboratories (ABT), and call buyers in JA Solar Holding Co. (JASO)

Mail Block: Listener questions and comments

Question from BillyMo - Hey, any new updates with after hours options trading on earnings stocks? Question from NVid - The junk bond market is melting down and interest rates are hovering around zero. Is the best place to find income these days via options writing rather than investing in fixed income or related products?

Around the Block: More earnings! How did AMZN do? What about EA? Will OPEC and Russia trust each other?

Option Block 494: Bulls Pile into Crude Oil ETF

Jan 27, 2016 45:26

Description:

Trading Block: Earnings today before the bell

Hess Corp. ConocoPhillips fell at least 6.1 percent. Banks retraced their best rally in more than a month Friday, with Bank of America Corp. down 3.1 percent. McDonalds Corp. gained after the fast-food giant earnings beat analysts forecasts as all-day breakfast helped fuel U.S. sales.

The Fed begins a two-day meeting tomorrow. The probability of a rate increase this week has stayed low after the December liftoff, and chances of a March boost have fallen to one-in-four from even odds at the start of the year.

Odd Block: Calls trade in Consumer Discretionary SPDR (XLY), and calls and puts trade in Patterson-UTI Energy, Inc. (PTEN)

Mail Block: Listener questions and comments

Question from Sean - What is the characteristic for trading options when the price nears even strike levels?

Around the Block: Earnings!

Tuesday - Apple Inc., AT&T, Procter & Gamble Wednesday - Facebook Thursday - Amazon, Electronic Arts, Ford Motor Company, Microsoft, Alibaba Group Holdings, Xerox Corporation Friday - Google

Option Block 493: Searching for the Dark Source of Volatility

Jan 23, 2016 01:00:42

Description:

Trading Block: Stocks rebound as Dow up more than 200 points and oil jumps 5%. Wall Street pay takes a hit, braces for deeper cuts. Yellen to keep Fed rate options open amid turbulent markets. Earnings today (Thursday):

Before the bell: Southwest Airlines, Verizon Communications After the bell: American Express Company, E-Trade Financial Corporation

Odd Block: Calls trade in NewCastle Investment Corp. (NCT), puts trade in Anadarko Petroleum Corp (APC), and calls trade in United Parcel Service, Inc (UPS)

Mail Block: Listener questions and comments

Question from AV56 - When is a good time to start trading options? Is there any certain time of the week or year that options traders are focused on? Question from Bob - I have heard pros sat that when too many retail jump into a trade then do the opposite. Does that apple to options as well? Question from Nina - Is this a good time to buy calls on indexes? If so, how far out should I trade?

Around the Block: Earnings! Friday - General Electric Company

Option Block 492: The Great Stupid Debate

Jan 16, 2016 58:56

Description:

Trading Block: U.S. stocks rally from 3-Month lows as energy, healthcare lead. Goldman plans to cut up to 10% of fixed-income traders, salespeople. Before the bell: JP Morgan Chase. What crisis? JPMorgan Chase reports $5.4 billion profit. After the bell: Intel Corporation. ATM Straddle - $1.45, ADV 72K contracts, today: 115K.

Odd Block: Puts trade in Fiat Chrysler Auto NV (FCAU), calls trade in KKR and Co. LLP (KKR), and calls trade in Blackstone Group (BX)

Mail Block: Listener questions and comments

Question from Kddidy - Thanks for answering my questions! I want to protect a stock position with puts at a strike 2% below market but there is not a strike there. I thought of dividing my purchase between two different strikes to get an average of 2% but I do not want all the guys to call me stupid. Mom always said I was a genius but it is hard to feel like one when buying something called a Put Stupid. What should I do instead? Regards, Mr. Smart Question from Mark B. - How would u have structured the short stock hedged by long calls trade that made 10 milly on OB 477?

Around the Block: Earnings season kicks off: The Big Banks: Citigroup Inc., Blackrock, PNC Financial, US Bancorp, and Wells Fargo and Company

Option Block 491: Buy Andrew a Generator

Jan 13, 2016 56:33

Description:

Trading Block: Last week was the worst start to a trading year in history. An early rally lost steam later in the session. Intra day S&P high - 1935. Does the lack of IPOs signal a looming recession? Fear makes oil options increasingly expensive.

Odd Block: 1-by-2 call spread in The CBOE Volatility Index (VIX), buy to close short in Teva Pharmaceutical (TEVA), and bullish risk reversal in Powershares QQQ Trust (QQQ).

Strategy Block: Tosaw discusses the importance of "drawing a line in the sand" and having a plan.

Mail Block: Listener questions and comments

Question from Pepe - Who is paper?

Around the Block: This Week in the Market

Alcoa kicks off another round of quarterly earnings on Monday and there are several economic reports worth nothing particularly on Friday. Jan 12: JOLTS Jan 13: Beige Book, Treasury Budget Jan 14: Jobless Claims Jan 15: PPI, Retail Sales and Consumer Sentiment

Option Block 490: We Are All Doomed. Flee for your Lives

Jan 9, 2016 01:01:15

Description:

Trading Block: Hysterics are creeping back into the market in the New Year. This question seems to be popping up all over the place this week. Is this 2008 all over again? Chinas 29 minutes of chaos: stunned brokers and a race to sell. Apple Inc. said App Store billings topped a record $20 billion in 2015, but growth from the business appeared to slow even as the company introduced apps on new devices such as Apple TV and Apple Watch. The selloff continues - Apple broke $100 for the first time since Oct 2014 - barring the brief selloff in August. Apple crossed the $200B cash level last summer - but also about $50B in debt. Apple cash per share: $3.79

Odd Block: Calls trading in SPDR S&P Homebuilders ETF (XHB), calls trade in CONSOL Energy Inc (CNX), and puts roll in Weatherford International PLC (WFT)

Mail Block: Listener questions and comments

Question from Charlie C. - Do second order greeks have any relevance for retail traders? Question from 777 - How do you adjust your options trading for cheap stocks below $10.

Around the Block: Earnings! Another quiet earnings week.  The fourth-quarter earnings season begins in mid-January. Thursday - Bed, Bath & Beyond (after bell), The Container Store (after bell). The market kicks off its first week of 2016 with several economic reports including Fed minutes on Wednesday and the jobs report on Friday.

Option Block 489: Biggest Winners and Losers of 2015

Jan 6, 2016 55:28

Description:

Trading Block: OCC 2015 cleared contract volume third highest ever at 4.2B. Options traders adding to bullish bets on Europe stocks for 2016. Stocks plunge as Dow tumbles about 420; S&P falls below 2,000.

Odd Block “Best of” 2015:
Weird trade of the year - 11/30/15 - Put rolls and calls going up in Ascena Retail Group Inc (ASNA) Loser of the year - 6/1/15 - Possible upside Anadarko Petroleum Corp. (APC) butterfly. Most ironic winner of the year - 10/26/15 - Mens Wearhouse (MW) buy call/sell stock.

Strategy Block: Tosaw discusses what to do if you are selling a put and the market goes against you.

Around the Block: This Week in the Market.

The market kicks off its first week of 2016 with several economic reports including Fed minutes on Wednesday and the jobs report on Friday. Jan 4: Construction Spending Jan 6: International Trade, Factory Orders and FOMC Minutes Jan 7: Jobless Claims Jan 8: Unemployment

Best of Option Block: The Most Epic Strategy Block Ever

Jan 1, 2016 56:23

Description:

Originally posted on December 24th, 2014, we bring you "The Most Epic Strategy Block Ever"

Trading Block: A shortened holiday week, so not much is moving on the street. Upside move in Taser. Facebook and Amazon.

Odd Block: Calls trade in Cobalt International Energy (CIE), opening calls trade in U.S. Bancorp (USB), and calls going up in Alibaba Holding Group Ltd (BABA).

Xpress Block: Another new tool is being rolled out by OX - IRIS.

Strategy Block: In the spirit of the season, Uncle Mike presents The Twelve Rules of Options Trading!

Around the Block: Have a wonderful holiday week everyone!

Option Block 488: A Bold Way to Make Twenty-Five Cents

Dec 30, 2015 58:23

Description:

Trading Block: The S&P 500 surged 2.8 percent last week, buoyed by gains in oil and raw-material companies, some of the year’s least-loved stocks. VIX jumped 14 percent Monday to 17.91. Oil led an early retreat among commodities Monday, sliding more than 3 percent from a three-week high as Iran repeated its goal of boosting exports after sanctions on the country are lifted.

Odd Block: Calls trading in Royal Caribbean Cruises Ltd (RCL), calls trade in Franklin Resources Inc (BEN), puts trade in Zillow Group, Inc. Class C (Z)

Strategy Block: Uncle Mike Tosaw discusses evaluating your overall financial portfolio.

Mail Block: Listener questions and comments

Question from Nelson - This is question is for Andrew from Maine. During my morning run yesterday I was listening to Episode 484.  At the 14:10 minute mark Andrew mentioned a strategy that the end result was that money from one IRA account was moved to a different IRA account. I listened to that portion of the podcast a few times but just could not quite understand the strategy. Could you please help me understand this strategy? Thanks for any help you could give me. Also, thanks so much for the podcast. I travel 30 minutes each way to work and it is very educational. Thanks, Nelson.

Around the Block: No quarterly reports of note are scheduled for this holiday-shortened week. After the first of the year, Walgreens and Monsanto are among those set to report. The fourth-quarter earnings season begins in mid-January.

Best of Option Block: A Terrifying Bloodbath

Dec 25, 2015 01:00:18

Description:

Originally published on August 25, 2015, this episode focused on the biggest single point drop ever in the DJIA. Also, chicken little was referenced.

Trading Block: The DJIA briefly slumped more than 1,000 points, its biggest point-drop ever. VIX Cash hit 53.29 at 10am. The VIX jumped as much as 90 percent to 53.29, its highest since January 2009. VIX didn’t update for 30 minutes as options quotes got erratic. AAPL hit a low of $92 before rebounding.

Around the Block: Retail earnings season winds down this week

Option Block 487: Peppermint Sticks for Old St. VIX

Dec 23, 2015 55:55

Description:

Trading Block: The Force is not strong with Disney. “Star Wars: The Force Awakens” had a record-breaking $238 million opening weekend at box offices in the U.S. and Canada, in addition to a near-record $279 million overseas, but DIS was off 2% today and off nearly $10 since the movie launched on Thursday. Dow sets mark for most volatile December since 2008. Wall St. slides on lower crude prices, stock options expiry. The Bad of apple of the stock market this month: Apple. Oil prices hit 11-year low as global supply balloons.

Odd Block: Calls trade in iShares MSCI Brazil Index (EWZ), calls trade in Direxion Daily Financial Bull 3x ETF (FAS), calls trade in Mosaic Co. (MOS)

Strategy Block: Tosaw discusses twelve-month LEAP knock-out collar strategy.

Mail Block: In which the listeners weigh in

Question from 777 - Is there a specific reason OI in SPY puts has big cluster at the even strikes?

Around the Block: Pre-Christmas earnings coming from Nike, Micron and few others.

Best of Option Block

Dec 19, 2015 01:21:13

Description:

This week, we are digging through the archives to bring you highlights from the Option Block catalog.

First up, a look back at a live raucous show, taped in July, 2012. Remember when AAPL was at $600? Mini contracts. AAPL vs. Samsung. And more...

Option Block 486: Uncle Mike Says Buy Oil

Dec 16, 2015 55:41

Description:

Trading Block: Crude oil futures fell to seven-year lows - below $35. VIX: On Friday, it was up 28 percent at 24.72. Volatility the surest bet in stocks after Fed meets. Three U.S. fund sectors fear SEC proposal on derivatives may hurt ETFs.

Odd Block: Buying vertical call spreads in Console Energy (CNX), upside call purchase in Royal Caribbean Cruises LTD (RDL), selling June 37 puts in Mondale International Inc (MDLZ)

Strategy Block: Uncle Mike Tosaw discusses his recent SPY trades

Around the Block: All eyes and ears will be the Federal Reserve as they are expected to announce a possible rate change on Wednesday. But, there are several other economic events worth noting as well.

Dec 15: Consumer Price Index Dec 16: Housing Starts, FOMC Announcement Dec 17: Jobless Claims

 

 

Option Block 485: What Will the Fed Do?

Dec 12, 2015 36:55

Description:

Trading Block: Oil was down, but energy stocks seemed to drive the market upward. Natural gas down around $2 level today.

Odd Block: Call buyers in SPDR Gold Trust (GLD), call buyers in Whole Food Market (WFM), and calls trade in Mens Warehouse (MW)

Around the Block: What will the Fed do?

Option Block 484: Terrifying Charts of Doom

Dec 9, 2015 01:00:19

Description:

Trading Block: There is an even weirder thing happening in financial markets. SEC to crack down on derivatives. Oil tumbles to six-year low as OPEC abandons production target.

Odd Block: Calls trade in JP Morgan Alerian MLP index (AMJ), calls trade in SPDR S&P 500 ETF (SPY), and calls trade in Sunedison Inc. (SUNE)

Strategy Block: Uncle Mike Tosaw discusses a different way to execute a stock repair strategy.

Around the Block: The Fed - Will they or will they not?

Dec 8: JOLTS Dec 10: Jobless Claims, Treasury Budget Dec 11: PPI, Retail Sales, Business Inventories, Consumer Sentiment

Option Block 483:  The Fed Is a Bunch of Ninnies

Dec 5, 2015 54:42

Description:

Trading Block: A bit of a selloff today - Yellen signals growing likelihood of a December rate hike. OCC cleared contract volume increased 10% in November. SEC charges twin brothers with fraud for options trading Spoofing and order mismarking.

Odd Block: Call buyers in Medtronic PLC (MDT), call sellers in Emerson Electric Co. (EMR), and put sellers in InvenSense Inc. (INVN)

Around the Block: Non Farms tomorrow (12/4)

Option Block 482: Channeling Zoolander

Dec 2, 2015 31:46

Description:

Trading Block: VIX and the egocentricity of the Fed.

Odd Block: Calls trade in Qunar Cayman Islands Ltd (QUNR), puts trade in Ascena Retail Group Inc. (ASNA), and puts trade in Zoetis Inc. (ZTS)

Strategy Block: Uncle Mike Tosaw gives us an update on his most recent SPY positions.

Around the Block: Non-Farms and the Fed are the main events we will be watching this week.

Option Block 481: Theoretical Value & Implied Volatility

Nov 25, 2015 45:28

Description:

Trading Block: Earnings! Before the bell today: Gamestop Corporation, Tyson Foods, Trina Solar. After the bell:  Palo Alto Networks. S&P 500 profits fall $25 Billion in first three quarters of 2015. Oil slides back lower after spike on Saudi statement. CME: Shrinking locally to grow abroad.

Odd Block: Puts trade in Freeport McMoran Inc (FCX), puts trade in Chesapeake Energy Corp (CHK), and calls and puts trade in Burlington Stores Inc. (BURL)

Listener Mail: Questions and comments from listeners

Question from Vega - Do puts and calls become more expensive ahead of events due to the risk premium? If so, how do I avoid that in the market?

Question from Peter Davies - Stocks are being hit by latency sensitive strategies like HFT. Is that happening in options as well?

Around the Block: Economic reports this week:

Nov 23: Existing Home Sales Nov 24: GDP, Consumer Confidence Nov 25: Durable Goods, Jobless Claims, New Home Sales, Consumer Sentiment

Option Block 480: Getting Naked with the Options All-Stars

Nov 21, 2015 57:36

Description:

Trading Block: Apple plummets to 4th place among hedge holdings, from No. 1. Square surges after raising less than sought in IPO. BATS reports successful launch of EDGX Options - The new market launched on November 2nd and implemented a phased rollout of symbols, which was completed November 17th.

Odd Block: Calls trade in The CBOE Volatility Index (VIX), calls trade in CurrencyShares Euro Trust (FXE), and calls trade in Mosaic Inc. (MOS).

Listener Mail: Listener questions and comments

Question from McDuff - What is a naked options position? Question from Kimble - Could a naked call pose huge risks - perhaps unlimited? Question from Fayecuzername - I expected more "Rocktobers" out of shear umbrage. As to my question regarding hedging with ratio spreads, on Friday I put on a SPY 11/20/2015 195-190 put 1x2 for a $.02 credit. Discuss and deride. Thanks.

Around the Block: Earnings on Friday - Abercrombie & Fitch, Foot Locker. Nov 19: Jobless Claims Report

Option Block 479: Stretching Deltas

Nov 18, 2015 59:16

Description:

Trading Block: Rally Ho post Paris. U.S. stocks rise slightly as markets see muted reaction to Paris attacks. Getting Bullish on Yahoo! Heavy call action today. Getting bullish on Bank of America (BAC).

Odd Block: Puts trade in TJX Companies Inc (TJX), calls trade in Lions Gate Entertainment Corp (LGF), and dalls trade in Burlington Stores Inc. (BURL).

Strategy Block: Tosaw discusses how he has stretched deltas since October 26.

Mail Block: Listener questions and comments

Question from Carmine - Hi guys, awesome site, great info Since I actually think you guys are for real, I have a simple question. I have just put my toes into options, I know I need help in education, but there are so many places that are more interested in taking your money than helping you. So I am asking you guys, where do you think is a good place to go and learn the simple things at first, such as, when, why, and how to use spreads, or maybe not use them. To day trade or not? I am hungry, with a small account. I am asking for your help. Thank you.

Around the Block: The earnings spotlight is on Wal-Mart and other retail giants this week. Also, numbers!

Nov 17: Consumer Price Index, Industrial Production Nov 18: Housing Starts, FOMC Minutes Nov 19: Jobless Claims

Option Block 478: What the Hell Are Second Order Greeks

Nov 14, 2015 56:38

Description:

Trading Block: Stocks fall as ECB, Fed weigh next moves. White says short selling getting her "intense attention."

Earnings:  

Before the bell today:  Kohls Corporation, Viacom After the bell today:  Applied Materials, Inc., Cisco Systems CSCO - $27.94, ATM Straddle: $1.40 - Approx. 5% Stocks to Watch: Kohls, Advance Auto Parts, Derma Sciences

Odd Block: Puts trading in United States Steel Corp. (X), calls trade in Microsoft Corp (MSFT), and puts trade in Atwood Oceanics Inc. (ATW)

Listener Mail: Listener questions and comments

Question from OptionDummy: Are there any additional nuances with a name reporting earnings on Expiration Friday? Question from Cookie: What is the best online broker for stocks and futures options? Question from Cspell: I'm interested to get OI's thoughts on second order greeks. I don't recall them ever being mentioned on any of your shows before. I don't see too much mentioned about them in general, even in the hinterlands although I have recently seen them talked about on another site and they tout them as the holy grail so to speak. Thanks!

Around the Block: Earnings on Friday: J.C. Penney, Tyco International; Nov 12: Jobless Claims, JOLTS and Treasury Budget; Nov 13: PPI, Retail Sales and Consumer Sentiment; on Friday, the Commerce Department reports U.S. retail sales for the month of October, when retail sales likely increased 0.3%.

Option Block 477: How to Make 10 Million in Two Weeks

Nov 11, 2015 55:43

Description:

Trading Block: Who was right about volatility? What will the Fed do? Crude doubletalk from OPEC. Crude curve looking interesting.

Odd Block: Calls trade in EFA-big upside call closer, calls trade in MW, and puts trade in MDT.

Strategy Block: You, too, can be a winner. Or, the importance of looking at your whole portfolio.

Mail Block: Listener questions and comments.

Question from 777: What quirks are there with time decay, [especially] during [the] last few weeks with ITM vs. OTM? Question from Topcat: Are options less risky than contracts for difference?

Around the Block: Retailers begin to step into earnings spotlight this week, including J.C. Penney and Macy's. Other highlights will include reports from tech giants Applied Materials and Cisco Systems.

Option Block 476: Star Wars Straddles

Nov 7, 2015 01:00:13

Description:

Trading Block: Earnings!

Before the bell today:  Apache, Celgene Corporation, Crocs, Inc., After the bell today:  Walt Disney Company, DreamWorks Animation

News:

DIS: $113. ATM straddle: $4.85, 4.3%. On a huge rally since massive selloff in August. OCC Cleared Contract Volume Declined 26% in October. Market falls in line with Yellen, but now Fed credibility at stake.

Odd Block: Calls and puts trade in Bank of America Corp. (BAC), calls trade in Metlife Inc. (MET), and puts trade in Straight Path Communication (STRP)

Listener Mail: Listener questions and comments

Question from Kevin - How do you put on such a small trade for a client and still get paid? Question from David - There is huge open interest for TWTR at the 30 strike for the Nov monthly, almost 240,000 contracts evenly split. Can you talk about the possible implications? Is it interesting?

Around the Block: Earnings!

Friday - Humana

Numbers:

Nov 5: Jobless Claims Nov 5: GDP Nov 6: Unemployment

Option Block 475: The Real Magic Mike

Nov 4, 2015 52:47

Description:

Trading Block: Earnings!

Before the bell today: Visa, Cardinal Health, Estee Lauder, After the bell today: Allstate Corporation, AMC Entertainment, Avis Budget, Fitbit, Inc., Tenant Healthcare Corporation Chipotle tumbles after e. coli outbreak is linked to chain.

Odd Block: Calls trade in Tyson Foods, Inc. (TSN), puts trade in Pilgrims Pride Corp. (PPC), and calls trade in Sprouts Farmers Market Inc. (SFM).

Strategy Block: Tosaw discusses his all bullish client

Mail Block: Listener questions and comments

Comment from CSpell - With SC down 14% so far on 10/29/15 and what looks like some investigation pending, it seems our friend was on the wrong side on this one. I think you should have a follow up on odd blocks as part of the show, could be fun. Question from RBolen22 - Are there active listed options markets outside the US that are worth trading? Have you ever covered this?

Around the Block: High hopes for Facebook, Disney earnings this week.

 

Option Block 474: The Fed Is Ruining Everything

Oct 31, 2015 59:18

Description:

Trading Block: Earnings!

Before the bell today: Coca-Cola, CME Group Inc., the biggest futures-market operator, said profit soared in its third quarter, lifted by higher trading volume and growth in the company’s market data and information services business. After the bell today: BAIDU, Electronic Arts, Expedia, LinkedIn Corporation, Starbucks. EA - ATM Straddle $4.70 - Approx. 6.2%

Also, on this day (October 29) in 1929: The New York Stock Exchange crashed in what would be called the Crash of '29 or "Black Tuesday."

Odd Block: Calls trade in CBS Corp (CBS), calls and puts trade in Walgreens Boots Alliance Inc. (WBA), and calls trade in Kate Spade and Co. (KATE)

Listener Mail: Listener questions and comments

Question from 603 - Before a report like FOMC, is buying calls bad due to Vol premiums? Question from 777 - What quirks are there with time decay - during the last few weeks with ITM vs. OTM? Question from Angus G - On your TopStep radio show just now you mentioned "buying WTI Crude Oil calls". What is the ticker symbol for these products?! When I put WTI into my broker I get "W&T Offshore". I thought USO was the best/only way to speculate on CL using options? You mentioned however that there might be better options that more directly mirror crude... Thanks

Around the Block: Earnings on Friday: CBOE Holdings, CVS, Chevron.

Option Block 473: Behold the Power of Deo

Oct 28, 2015 58:23

Description:

Option Block 473: Behold the Power of Deo

Trading Block: What is happening right now? Earnings! Before the bell today: Xerox Corporation. Wall Streets next test: Profits, data, and the Fed. The S&P 500 rallied 2.1% last week - its fourth consecutive week of gains. Once again, Apple is expected to fuel earnings. Gold rally brings out options bulls.

Odd Block: Calls and puts trade in Diageo PLC (DEO), calls trade in the Coca-Cola Co. (KO), and calls trade in Mens Wearhouse Inc. (MW).

Strategy Block: St. Charles awakens, andTosaw discusses his latest trading strategies.

Mail Block: Listener questions and comments

Question from Veg - I do not know much about options - apologize for my noobness. In August, during the mini crash, were traders selling premium in the equity options? If so, how does that work? Is the spread wide?

Around the Block: What are we watching? Earnings! This week will be one of the busiest of the third-quarter earnings reporting season. Tuesday - Alibaba (before bell), Apple (after bell), Gilead Sciences (after bell), Jet Blue (before bell).

Option Block 472: GOOGL, AMZN and Binary Palooza

Oct 24, 2015 01:00:34

Description:

Trading Block: Today we feature special guest Dan Cook from NADEX.

Earnigns:

Before the bell today:  Eli Lilly, 3M, Dow Chemical, McDonalds, Nasdaq, Sirius, Southwest Airlines After the bell today:  Alphabet Inc., Amazon, AT&T, Microsoft, Pandora

News:

Dow surges more than 275 on McDonald's, ECB stimulus talk - McRevenge! McDonald's turns table on Chipotle. Now that Google Is Alphabet, options suggest another big stock move. Barclays: Use bullish options to play gold rally.

Odd Block: Calls trade in Prudential Financial Inc. (PRU), calls trade in eBay Inc (EBAY), and calls trade in Corning Incorporated (GLW).

Listener Mail: Listener questions and comments

Question from Fred - I trade futures all day but not options. Trying to trade on a longer term cycle to avoid juggling positions. What advice do you have for someone who wants to trade options but cannot babysit their options daily? Question from Peter D. - Stocks are being hit by latency sensitive strategies like HFT. Is that happening in options as well?

Around the Block: Earnings on Friday - American Airlines (before bell), Procter & Gamble (before bell), Whirlpool (before bell).

Option Block 471: Oprah vs. Howard Stern Options Blowout

Oct 21, 2015 58:55

Description:

Trading Block: Oprah buys 10% of Weight Watchers, stock soars. Also, earnings!

Walmart (WMT) stock plunged 10% last week on sharply lower guidance from the company. Analysts expect Amazon (AMZN) to report a 21% jump in revenue compared with the year-ago period. Yahoo (YHOO) is also expected to notch a 15% jump in revenue. Analysts are betting on Microsoft (MSFT) and IBM (IBM) to maintain reasonably healthy profits amid falling revenue, while American Airlines (AAL) is likely to see a big jump in earnings on plummeting fuel prices.

Odd Block: Calls trade in Santander Consumer USA (SC), calls trade in Sirius XM Holdings (SIRI), and uts trade in Weight Watchers Intl. (WTW).

Strategy Block: Tosaw discusses his most recent trading activities and why he has been staying away from bonds.

Mail Block: Listener questions and comments

Question from ONV - Do you focus on all stock options that trade at large multiples, or is there some other way that you determine which names to analyze?

Around the Block: Google stands out amid low earnings expectations.

Option Block 479: Maximum Gamma

Oct 17, 2015 01:03:13

Description:

Trading Block: VIX - The Chicago Board Options Exchange Volatility Index fell 4.6 percent Thursday to 17.21, after back-to-back gains for the first time since Sept. 28. VIX is down 30 percent this month, on track for the most since July.

Earnings:  The third-quarter earnings crunch begins this week.

Mattel (MAT) - $22.26, Oct 22 straddle - Approx. $2 / 9% move. Netflix (NFLX) added fewer subscribers in the U.S. in the September quarter than it had anticipated. Amazon (AMZN) is up 1.6% at $553.29, as traders celebrate lackluster subscriber statistics for programming rival Netflix, Inc. Odd Block: Calls trade in Micron Technology Inc. (MU), calls trade in Solarwinds Inc. (SWI), and puts trade in Market Vectors Russia ETF (RSX).

Listener Mail: Listener questions and comments

Question from Angelo M - I have been listening to the Options Playbook Radio episodes on iron butterflies and skip strike butterflies. I wondered what you guys on the All-Star Panel thought about maybe combining those concepts with a ratio iron butterfly that sells an extra put on the downside leg. My thought process is to do this in stocks where I expect a big move but I also do not mind buying the underlying at the level of the lower leg? It would also help reduce the outlay of the trade and make it easier to break even. Thoughts? Great show and great discussions. Question from Futures MD - Does theta increase or change intraday - perhaps around lunch?

Around the Block: Earnings on Friday, October 16 include GE, Honeywell International and WW Grainger.

Option Block 469: Introducing the Juicy Put Newsletter

Oct 10, 2015 01:01:20

Description:

Trading Block: S&P over 2000. Is Tosaw a bull again? VIX weekly options launch today - after a long wait they are finally here! BlackRock proposes remedy for extreme volatility. Insider trading spreads outside of stocks - New York attorney general Eric T. Schneiderman has launched an inquiry into DraftKings and FanDuel

Odd Block: Strange and unusual activity in P, UUP, and AMX.

Listener Mail: Listeners take over

Question from Dave - Would you say the options market leads the underlying from a price perspective? Question from NKX - How do entries work on options strategies? Is entry random? Should we care when we are filled? Should we adjust often? How often should we adjust on a strategy like an iron condor?

Around the Block: Earnings season kicks off with Alcoa

Option Block 468: Bernanke vs. Skeletor

Oct 7, 2015 50:01

Description:

Trading Block: The streak is broken - VIX Cash finally breaks 20! "More execs should have gone to jail after financial crisis" Bernanke says. Stocks jump as expectations ease of U.S. rate hike; oil gains. The London Metal Exchange (LME) introduces measures to grow options trading on exchange.

Odd Block: Puts trade in Materials Select Sector SPDR (XLB), calls trade in Conoco Phillips (COP), and calls and puts trade in Valeant Pharmaceuticals Intl. (VRX)

Strategy Block: Tosaw discusses dealing with covered calls that are going against you.

Around the Block: Alcoa, PepsiCo kick off Q3 earnings season.

Option Block 467: Energy Options Smackdown

Oct 3, 2015 01:01:06

Description:

Trading Block: A mild selloff at the end of another volatile session: S&P High - 1927, Low - 1900. The S&P 500 slumped 2.6% in September, and posted its first back-to-back quarterly decline in four years. VIX Cash 23.42. US stocks advance, shaving worst quarterly rout in four years. Short sellers cash in Apple bets as stock declines. Metals are getting massacred.

Odd Block: Calls trade in SPDR S&P Metal and Mining (XME), calls trade in EV Energy Partners, LP (EVEP), and puts trade in Apache Corp (APA).

Listener Mail: Listener questions and comments

Question from TennisGr8 - Last week you mentioned being a market maker made you quick on your feet. This would be similar to a doctor in the emergency room. Does a retail trader need to be that fast and, if so, where can they learn to be that fast? Question from Pat - Can you discuss the pros and cons of hedging a portfolio with put back spreads in the respective index, done for a credit? Love all the shows. Thanks for all the education. PS Please do not say Rocktober this year.

Around the Block: September jobs report issued by the Labor Department Friday

Option Block 466: China Sucker Punches Market, VIX Shrugs

Sep 30, 2015 57:59

Description:

Trading Block: An aggressive selloff on the street today. Profits from Chinese industrial companies down 8.8%. GLD taketh away recently.

Odd Block: Strange and unusual activity in BBY, KRE, and MU.

Strategy Block: Uncle Mike discusses trading and managing risk as a perpetual bull.

Around the Block: Will the Chinese bloodbath continue?

Option Block 465: The Feckless Fed

Sep 26, 2015 56:28

Description:

Option Block 465: The Feckless Fed

Trading Block

Auto-parts suppliers option implied volatility increases on Volkswagen probe.

U.S. stocks decline as investors crave more guidance from the Fed.

 

Odd Block

Calls and puts trade in DISH network Corp. (DISH)

Calls trade in Horizon Pharma PLC (HZNP)

Puts trade in Merck & Co. (MRK)

 

Strategy Block

Uncle Mike Tosaw discusses rolling options on vertical and single-leg puts

 

 

Listener Mail

Question from Fred - Being a market maker on the floor was a good way to learn options trading. Can you explain how MM worked and why it was the best way to learn options trading?

 

 

Around the Block

Nike and BlackBerry highlight another quiet earnings week.

The Option Block 465: The Great Internet Meltdown

Sep 22, 2015 42:37

Description:

The Option Block 465: The Great Internet Meltdown

Trading Block

The Skype Gods conspired against the All-Star Panel on this episode. But we're back nonetheless with more options analysis, unusual activity, listener mail and more.  Topics covered in the Trading Block today include: the still wonky VIX futures term structure, the endless debate over the FED, 70X returns on Volkswagen puts and much more

ODD Block

Strangle Selling Palooza! Ensco PLC - ESV Boardwalk Pipeline Partners -  BWP FMC Technologies Inc. - FTI

The Mail Block

This week the listeners want to know what the All-Star Panel thinks about pin risk.

Around the Block

Keep your powder dry while this crazy volatility shakes itself out of the market

Option Block 464: A Colossal Waste of Time

Sep 19, 2015 54:09

Description:

Trading Block: August US listed options volumes grew 12% compared to July, reaching a new monthly high in 2015. VIX dips below 20.00 for the first time since August 20th after FOMC statement. No hike: Fed keeps benchmark rate near zero. Citing global economic weakness and financial market turmoil, the Federal Reserve agreed Thursday to keep its benchmark interest rate near zero despite the rapidly improving U.S. labor market. Alt-Options launches Bitcoin derivative market.

 

Odd Block: Strange and unusual activity in PBR, WLL, and QLIK.

Strategy Block: Uncle Mike Tosaw discusses trading the Fed.

Listener Mail: Listener questions and comments.

Comment from Hawkeye - Mark- A few things- Too bad the daily dose of Lobster was too much of a cholesterol bomb for those guys at TOS.  Bummer.  I liked the show. With respect to the OIC study on various options strategies since 2003 - Are you really surprised the highest return was gained by a synthetic short put stupid in what has mostly been a bull market?  (covered strangle => short call + long stock = ITM short put, plus OTM short put). So, YES!  Selling 2 puts brings in more money than selling only 1! Yes, the Lobster and Meatball have taught me enough to figure this out and they should feel good that something has stuck.

Keep the great shows coming- Hawkeye

 

PS- A while back Uncle Mike answered a question I had about holding.  I sent a thank you back, but I was not sure you ever got it.  Anyways, please tell Uncle Mike THANKS that that was an outstanding answer and it made perfect sense.

Option Block 463: Fed Fever

Sep 16, 2015 56:43

Description:

Trading Block: Alibaba - Shares of Alibaba Group Holding Ltd. (BABA -4.05%) have tumbled recently amid an array of problems. U.S. stocks decline amid focus on Fed rate decision this week. Traders are preparing for massive Fed-driven volatility. The SPDR S&P 500 (NYSE:SPY) put-call ratio dropped hard to well below its 20 DMA on Friday.

Odd Block: Calls trade in Anheuser Busch Inbev SA (BUD), puts trade in Chesapeake Energy Corp. (CHK), and calls trade in EMC Corp (EMC).

 

Mail Block: Listener questions and comments

Question from Mark Brant - I guess if you place the long side first then your margin will be lower for the short side so maybe the long side is hard? Question from Joe Joe - What happens when I sell a call? Does that money hit my account right away, or do I have to wait until I close the position?

 

Around the Block: Fed Meeting this Wednesday and Thursday.

Option Block 462: The Great Fed Fake out

Sep 12, 2015 59:00

Description:

Trading Block: Federal Reserve may bring new life to fed-funds options pit. Apple plans land with a thud. Apple is pulling out all the stops, but nothing it seems, can get the stock moving or get investors jazzed again.

 

Odd Block: Calls trade in Whiting Petroleum Corp. (WLL), calls trade in Qualcomm Inc. (QCOM), and calls trade in Rite Aid Inc. (RAD).

Listener Mail: Listener questions and comments

Question from MB2 - Heard you chat about legging spreads on the show. The strategy guy seemed to not be a fan of legging. Can he expand on that and his reasoning behind it? I have utilized legging many times as a way to improve my execution prices on spreads. I think it is a legitimate trading technique.

 

Around the Block: Earnings season is coming? 

Option Block 461: Can Hedging Gamma Move the Stock Market?

Sep 5, 2015 59:57

Description:

Trading Block: Panel of ex-Fed officials say no rate hike will come at September meeting

 

Monthly Volume Breakdown:

OCC cleared contract volume rose 33% in August. Year-to-date average daily cleared contract volume is up 0.15 percent from 2014 with 16,809,864 contracts in 2015. Exchange-listed options volume reached 426,328,677 contracts in August, a 33 percent increase from August 2014 volume of 320,155,407 contracts. Year-to-date average daily options volume is up 0.21 percent from 2014 with 16,554,221 contracts in 2015. Equity options volume in August was 373,616,786 contracts, a 30 percent increase from August 2014. Index options volume in August was up 60 percent from August 2014 with 52,711,891 contracts.

Odd Block: Puts trade in Cobalt International Energy Inc. (CIE), calls trade in CIENA Corp. (CIEN), and puts trade in Wisdom Tree India Earnings (EPI)

Listener Mail: Listener questions and comments

Question from Mousin - Could it be that the huge options portfolios in macro hedge funds are to blame for the big vow in the market on Monday? Question from ADM - During activities on Monday, were there any options exchanges that failed?

 

Around the Block: Non-Farms out tomorrow. 

Option Block 460: The Creepy VIX

Sep 2, 2015 01:02:04

Description:

Trading Block: Dow off about 100 points in choppy trade, tries to stay out of correction. Goldman Sachs thinks this volatility index should be much lower:  The VIX is trading like the U.S. is in a recession. If the options market is right, China stock rescue is doomed.

 

Odd Block: Calls trade in UltraShort Euro ProShares (EUO), calls trade in Xerox Corp. (XRX), and calls trade in Arch Coal Inc. (ACI).

Strategy Block: Tosaw gives us an update of the things he has been doing, and why he has been doing them.

Around the Block: Earnings highlights of this week:

Tuesday - Ambarella, Dollar Tree, H&R Block Thursday - Ciena, Medtronic

Option Block 460: Imploding Apple Puts

Aug 29, 2015 01:02:40

Description:

Trading Block: Selloff or rally? The market needs to make up its mind. Whither the VIX: there was a brief flirtation with 50 handle now back into the more “sensible” 20 handle. So, it takes a massive selloff in the marketplace to get VIX over 50. AAPL had a 20 handle range this week. We missed the deal of the century on the AAPL Sep 75 puts.

 

Odd Block: Calls trade in BTU, calls trade in P, and puts trade in LL

Mail Block: Listener questions and comments.

Question from Leon187: Is it true that Apple sells puts to buy back their own stock? Do you feel that large volume of Sep 75 puts was a part of that program? Question from tennisgr8t: Can you give examples of managing positions using Greeks and is it a good strategy? Your show is awesome.

Around the Block: Earnings on Friday include Deere and Company, Foot Locker, Inc.

Option Block 459: A Terrifying Bloodbath

Aug 26, 2015 01:00:18

Description:

Trading Block: The DJIA briefly slumped more than 1,000 points, its biggest point-drop ever. VIX Cash hit 53.29 at 10am. The VIX jumped as much as 90 percent to 53.29, its highest since January 2009. VIX didn’t update for 30 minutes as options quotes got erratic. AAPL hit a low of $92 before rebounding.

 

Around the Block: Retail earnings season winds down this week

Option Block 458: Risk and Reward via Ashley Madison

Aug 22, 2015 43:35

Description:

Trading Block: 6.5 month low. Breaking through big technical levels in the S&P. Huge move in VIX. A rundown of soft and hard losers. When Wal-Mart becomes a flight-to-safety. Everything is NOT awesome.

 

Odd Block: Strange and unusual activity in MSFT, PNK, and POT.

Mail Block: Listener questions and comments in response to Monday’s show.

Comment 1 from @MarkBrant1KM: One thing I learned from Dr. J. that you guys don't discuss much is how return on margin is paramount to retail traders! Comment 2 from ‏@MarkBrant1KM: Main focus should be maximizing return on margin when trading options!

Mystery Block: Mark Sebastian discusses risk and reward.

 

Around the Block: Not going to hit all-time highs this week. What will the Fed do?

Option Block 457: To Roll or Not to Roll

Aug 19, 2015 45:37

Description:

Trading Block: Stocks to watch include: Tesla, Zulilly, Pentair, and Estee Lauder. Gold trading outlook: Futures extend gains on US rates speculations. U.S. stocks rise as investors turn focus on economic strength.

Odd Block: Call spreads go up in Williams Companies Inc. (WMB), giant call roll in Hartford Financial Services Group, Inc. (HIG), and calls trade in Xilinx Inc. (XLNX).

Strategy Block: Tosaw discusses when to roll and when not to roll.

Mystery Block: Sebastian discusses his thoughts on trading and how it relates to putt-putt golf.

 

Around the Block: Be cautious. Fed minutes might be interesting.

Option Block 456: A Constitutional Amendment for Options

Aug 15, 2015 57:36

Description:

Trading Block: Bearish options bets on Apple are spiraling higher. Stocks to Watch: Tesla Motors Inc. (TSLA) +2.26%), American Apparel Inc. (APP), Lenovo Group Ltd. (HKG). OCC and U.S. Securities Market Coalition ask U.S. Department of Labor to allow use of listed options in retirement accounts.

 

Odd Block: Calls trade in SYSCO Corp (SYS), puts trade in SPDR Barclays Capital High Yield (JNK), and puts trade in Technology SPDR (XLK).

Mail Block: Listener questions and comments

Question from Mark Brant - Is insurance against assignment legal? Why not pay a fee for the broker to absorb assignment risk if your strategy prefers it?

Around the Block: Shake Shack, Inc. (SHAK) will be listed Aug 14.

Option Block 455: The Peril of Legging Spreads

Aug 12, 2015 01:00:38

Description:

Trading Block: Our special guest today is Vlad Karpel, Founder of Tradespoon. Dow jumps triple digits; oil recovery boosts energy 2%. How should investors play falling Apple stock? Earnings today after the bell: Rackspace Hosting, Inc., Shake Shack, Inc., Take Two Interactive - TTWO $31.38, Straddle - $3.10 - Approx. 10%. BATS gets regulatory nod for second U.S. options exchange.

 

Odd Block: Calls and puts trade in Ensco PLC (ESV), calls trade in Oasis Petroleum Inc. (OAS), and calls roll in SYSCO Corp. (SYY)

Strategy Block: Tosaw analyzes SPX and SPY

Around the Block: Earnings!

Tuesday - Fogo de Chao, Inc., Red Robin Gourmet Burgers, Tribune Publishing Company Wednesday - Cisco, Macy’s, Aramark, Roundy’s, Inc., BABA and CSCO Thursday - Applied Materials, Inc., Kohl’s, King Digital Entertainment, El Pollo Loco Holdings, Inc., Nordstrom Inc., Tribune Media Company, Friday - J.C. Penney

Option Block 454: Why the Heck Are You Closing?

Aug 8, 2015 57:36

Description:

Trading Block: Stocks getting crushed post-earnings.

 

Disney - stock closed @ $121 prior to earnings on 8/4. ATM straddle $4.10 or 3.4%. Stock off over 10% in the past two days - off 2% today. Tesla - stock $270 prior to earnings. ATM straddle $22.25 or 8.2%. Down 28 handles, over 10% today. A massive sell-off is underway in media stocks, and Viacom is by far the biggest loser.

Odd Block: Calls trade in Allscripts Healthcare Solutions (MDRX), puts trade in Noble Corp. (NE), and calls trade in SPDR S7P Oil and Gas (XOP)

Mail Block: Listener questions and comments

Question from RJR357 - On the CBOE blog you see comments such as Bulls are piling into XZY or calls outnumber puts 6 to 1. Is it prudent to follow the herd? Is this info of any value? I'm guessing this is the big money traders. Great show. Question from Charles Vela - My friend recommended Dough as an options starter platform. It seems a little silly to me. How do you like it?

 

Around the Block: Earnings: FitBit (FIT)

Option Block 453: Steak with a Side of Lobster

Aug 5, 2015 59:36

Description:

Trading Block: Thanks to everyone that came out last week to our live show! We had a wonderful seeing all of our listeners in person.

 

Earnings today after the bell: Brookdale Senior Living, Avis Budget Group, Allstate Corp, General Growth Properties. Media & retail highlight earnings this week: CVS, Office Depot Inc., Walt Disney Co. Highlights of this week: Wednesday: Tesla, Time Warner, and Twenty-First Century Fox; Thursday: Allergan       

Odd Block: Calls trade in Williams Companies Inc. (WMB), calls trade in NorthStar Asset Management (NSAM), and calls and puts trade in Merck & Co., Inc. (MRK)

Strategy Block: Tosaw discusses the importance of patience, especially when trading.

Mail Block: Listener questions and comments

Question from Beacher454 - Last week Mark S. said the free options training is ok, but you need paid training to really make money. Can you give an example how paid training is better?

 

Around the Block: Upcoming earnings: Disney, Tesla, Office Depot. Plus, macroeconomics. Options on VIX weekly futures. Will they? Won’t they? 

Option Block 451: What Happens When We Go Live?

Aug 1, 2015 01:09:16

Description:

Trading Block: Still in the thick of earnings season. LNKD straddle going out at over $25. Talking FB, VIX. Trading the Sebastian bottom. The introduction of VIX weekly futures. Whole Foods prices weigh on earnings. Who’s afraid of insider trading? Chinese equity vol. Will Gold fall to $350/ounce? SO MANY new CBOE indexes. SO MANY.

 

Odd Block: Ratio/vertical calls roll in MDLZ.  Ratio buy-write in NOW. Taking the short off in NOK.

The Mail Block: Listener questions and comments.

What happened to Options Oddities? What is the worst beginner options trade? Beware of paying through the offer

Around the Block: Still some earnings coming: XOM, CBOE, CVX. Introducing the inverse mullet: the tellum. Greece. Jobs report next week.

Option Block 451: Chinese Implosion

Jul 31, 2015 50:42

Description:

Trading Block: China meltdown. Chinese equities have suffered the sharpest one-day crash in eight years. Earnings: Bidu, Facebook, Twitter, Exxon Mobil. Will option traders ‘pin’ gold to $1,100/oz?

 

Odd Block: Call buyers in EXCO Resources Inc. (XCO), calls trade in Knowles Corp (KN), and calls trade in Pfizer Inc. (PFE)

Strategy Block: What is going on in the S&P 500?

Mail Block: Listener questions and comments.

Question from Jose - Avengers, JPW, Minions, so many big summer movies. What is a good way to play big movie releases with options? I have got about 10k in my trade account to use for fun spec stuff like this. Ideas? Question from Brian Collamer - Hi. Last week Uncle Mike was talking about a customer who had a call calendar on in Netflix. The customer got assigned on the short call. Does that mean the strikes went in the money? If so, would not you exercise the back month long call to cover the assignment? Thanks for the great content you folks make available!

 

Around the Block: Earnings!

Option Block 450: Earnings Madness Continues

Jul 25, 2015 57:49

Description:

Trading Block: Earnings!

MSFT: $47.28 on earnings. Straddle: $2.40 / 5%. Opens down approx. $2. Microsoft lost 3.7 percent after posting its largest-ever quarterly loss. AAPL: Closed near $131 on earnings. Straddle: $6.15 / approx. 4.7%. Opened $122 - down $8.75. Apple fell 4.2 percent after iPhone sales and revenue forecast missed estimates. Nasdaq retreats amid tech selloff after Apple, Microsoft results Odd Block: Calls trade in Chevron Corp. (CVX), calls trade in Direxion Daily Financial Bear 3X ETF (FAZ), and calls and puts trade in Patterson-UTI Energy, Inc (PTEN)

Mail Block: Listener questions and comments

Question from Sam A, Houston, TX - Is it a good idea to sell credit spreads in leveraged ETFs to benefit from the con tango? Question from 999 - How do you spec on the market falling out of bed using options?

 

Around the Block: Earnings: Apple earnings not the only huge story this week. Watch GM, Boeing, Coke, Amazon, Microsoft & others. Friday: Johnson Controls, Xerox

Option Block 449: Earnings Surprises Aplenty

Jul 22, 2015 01:01:42

Description:

Trading Block: In which we feature special guest co-host: Fred Ruffy from Trade Alert

 

Earnings Today: Before the Bell: Morgan Stanley, Haliburton, Hasbro; After the Bell: IBM. Tech names blowing through their straddles: NFLX: 8%, GOOG: 3.5%. Stocks slightly higher as NASDAQ hits new record.

Odd Block: Puts trade in Ford Motor Company (F), puts trade in Windstream Holdings Inc. (WIN), and calls trade in ONEOK, Inc. (OKE).

Mail Block: Listener questions and comments:

Question from Adam Sam - ‏How come no one saw GOOG jump coming. Do you ever share where you get your info from? I would love to know. Thanks. Question from big George: Hola options amigos. Fun program. Just found it on Stitcher and now it’s on the top of my business playlist. You guys make options fun. I would like to know if there’s any way that I can enter after hours orders for options. I can access afterhours books for my stocks but I don’t see that choice for options. Do I need to use a special broker or platform? This would really help me with my earnings season trading. Thanks, George.

 

Around the Block: What to watch for in Apple earnings. Also watching GM, Boeing, Coke, Amazon, Microsoft & others.

Option Block 448: Slings and Arrows of Umbrage

Jul 18, 2015 57:00

Description:

Trading Block: GOOG after the bell. ATM Straddle: Approx. $21 - a 3.5% move. Last earnings: 19 handle move from close to open, approx. 3.5%. Volume: Approx. 3x ADV. Calls nearly 3 to 1 over puts. Bank of England urges longer jail terms for market manipulators. On July 16th, 2004 - Martha Stewart was sentenced for insider trading, conspiracy, and obstruction of justice in the ImClone trading scandal.

 

Odd Block: Calls trade in C&J Energy Services Ltd (CJES), calls trade in Regions Financial Corp (RF), and calls roll in US Bancorp (USB)

Mail Block: Listener questions and comments

Comment from Anonymous - I listened to your talk on Options Insider Radio. (That is a very good program!) It seems that there are a lot of misunderstandings about the cracking down on short sales in China.

In fact, there is no limit on short short sales in China as long as you can borrow shares. Very similar to the US shorting stocks. But the main problem in China is the leverages with loans from outside financial companies.

A subsidiary of BABA is enabler of such outsider loans. That subsidiary company in Hangzhou (where I am from) has software called HOMS, which expand the single brokerage account into a multiple user account with or without brokerage firms knowledge. The original intended users are fund management firms. But the loan companies use the software to provide loans and control the account for margin risk management. They provide margin loans up to 1:10 ratio.

When the market initially dropped 15~20%, many accounts will have margin problem. Later on, the loan companies started manipulation operation: They purposely push down the index futures at certain hours, trigger the market sales, and then they forcefully close customer accounts.

Finally the Chinese police department stepped in. That really scared those loan operators.

Overall, I think it is great idea to forceful interrupt the vicious feedback loop, and return the market to more normal operations.

In China, the communist part[y] has to take responsibilities for the wellbeing of the general population, instead of "following the rules" to allow or protect a few successful guys who figured out how to take advantage of the system shortcomings.

So I think it is a good. In the US, no one was charged and put into jail for 2008 crisis. Here, we think that following rules is more important than the results. But the rules have been set up the guys who purposely keep holes they can exploit.

In this case, I totally support the Chinese government. It demonstrates that Chinese government can correct the problem much more effectively and efficiently.

For a society, it is better to protect 1,000,000 people from losing $1,000 each than to allow a guy to make $1B through "successful" trading.

Question from SB94 - What’s up with Chinese stock options? Are options going to be listed in China anytime soon? Question from Sean - I like to follow an indicator that determines the strength of a trend going in a certain direction. How do these typically reflect in the options market?

 

 

 

 

Around the Block: Earnings! Citigroup, Google, eBay, UnitedHealth Group, America Movil, Blackstone, Goldman Sachs, Philip Morris International, Schlumberger, Advanced Micro Devices, Mattel, General Electric, Honeywell

Option Block 447: VIX Apocalypse Redux

Jul 15, 2015 57:19

Description:

Trading Block: July and the VIX weigh heavily on the S&P. U.S. stocks rise after Greece reaches an agreement with creditors. Netflix hits new high price in advance of stock split, earnings. Fitbit shares are in uncharted territory as analysts initiate coverage.

 

Odd Block: Puts trade in IAMGOLD Corp. (IAG), calls trade in Marathon Petroleum Corp. (MPC), calls trade in Market Vectors Oil Services (OIH).

Strategy Block: Tosaw discusses synthetics and his most recent trading strategies.

Mail Block: Listener questions and comments

Question from Fred - I heard options traders like to have multiple positions in their trading accounts. How many should I have?

Around the Block: Earnings: Google, Netflix and big banks highlight earnings expectations this week.

 

Tuesday - JPMorgan, Wells Fargo, Johnson & Johnson, Yum! Brands. Wednesday - Intel, Netflix, Bank of America, Delta Airlines, US BankCorp, BlackRock, Kinder Morgan, PNC Financial Services. Thursday - Citigroup, Google, eBay, UnitedHealth Group, America Movil, Blackstone, Goldman Sachs, Philip Morris International, Schlumberger, Advanced Micro Devices, Mattel. Friday - General Electric, Honeywell

Option Block 446: Getting Into Trouble with Unusual Activity

Jul 11, 2015 57:53

Description:

Trading Block: What glitch? Competition eases NYSE shut-down. Fed increase are little more than a coin flip for derivative traders. Apple stock chart points to more downside ahead. Earnings today: Before the bell: PepsiCo, Walgreens

 

Odd Block: Calls trade in CBS Inc. (CBS), calls trade WisdomTree EuropeHedged ETF (HEDJ), and calls trade in JCPenney Co. (JCP).

Mail Block: Listener questions and comments

Question from N198UA - I'm a big fan of all your radio shows - especially Options Oddities. I've always had an interest in unusual activity and even attended your forum in Chicago a couple of years ago. My question: if a retail trader makes an options trade based on unusual activity that is later deemed "insider" (or something not legal); could the retail trader - and anyone who copied the "insider" trade be in trouble? What are the possible outcomes?        

 

Question from 999 - Brokers typically charge more to short stocks that are hard to borrow. What are examples of the extra fees or commissions that you pay when you trade options in hard to borrow stocks? Question from Jose Aprile - Any quirks with interest rates options that show the Fed might act soon?

 

Around the Block: Greece is the word.

Option Block 445:  Pricing Straddles at the Nasty Point

Jul 8, 2015 55:40

Description:

Trading Block: CBOE and C2 Options Exchange total trading volume up 16% in June. Surge in Europe stock options volume shows race to hedge Greece. A few dozen Chicago traders will don their multicolored jackets to trade soybean and forex futures the old-fashioned way one last time on Monday, marking the end of 167 years of open-outcry trading in the city where it was born. Oil at 3-months low as outlook darkens again.

Odd Block: Rolling calls in Office Depot (ODP), calls trade in Hilton Worldwide Holdings Inc. (HLT), puts trade in Chevron Corp. (CVX), and calls trade in Blackstone Group LP (BX).

Strategy Block: Tosaw discusses how he prepared for the holiday weekend.

 

Mail Block: Listener questions and comments

 

Question from Fred - Been having problems finding an options paper trading account that does not require me to fund an account. Any suggestions?

Around the Block: Earnings - New earnings season kicks off with Alcoa, PepsiCo, and Walgreens.

 

Option Block 444: Return of the Flowmaster

Jul 7, 2015 54:25

Description:

Today we have Special Guest Star Henry Schwartz from Trade Alert

 

 

Trading Block: Jobs data disappoints. OCC cleared contract volume grew 4% in June. Tesla Motors Inc. (TSLA) shares gain momentum after record quarterly deliveries.

Odd Block: Calls trade in Targa Resources Partners LP (NGLS), calls trade in Market Vectors Gold Miners (GDX), and puts trade in ARM Holdings plc (ARMH)

 

 

Mail Block: Listener questions and comments:

Question from Steamboat Willie - What would you say is the best buy and hold strategy using options? I am interested in using some options in my retirement account but I do not have the time to manage them on a daily basis. I would like to put something on and only check on it every few weeks or months. I am mostly interested in large cap stocks, although I am not averse to dipping my toes into alternative assets such as oil. Question from LeanMean: Is it possible for retail to capture dividends using options? Do you have any good dividend capture strats for me?

Around the Block: Will the U.S. be a safe haven? August earnings fireworks? Will U.S. bonds rally?

 

Option Block 443: Revenge of the Gyro

Jul 1, 2015 51:26

Description:

Trading Block: Dow falls 225 points, in the red for the year amid Greece; VIX spikes 24%. Biggest one-day loss since 2011 for European stocks as Greek crisis deepens. FitBit options listed on 6/26: 1st day volume = 4,600 contracts. 2,500 on Friday, 2,500 so far today. Oil falls to three-week low amid risk of Greek exit from Euro.

Odd Block: Calls trade in US Silica Holdings (SLCA), calls trade in Yandex NV (YNDX), and puts trade in NorthStar Realty Finance Corp (NRF).

Strategy Block: Uncle Mike Tosaw discusses his trading, or lack thereof, on this particular day.

Mail Block: Listener questions and comments

Question from Malki k. - I was surprised to see that FIT options are trading already, listed a little quicker than I thought. I like the stock but not at these levels, so I am looking at some downside strats. One that caught my eye was Aug 30-26 1x2 put spread - looks like I can buy the spread for somewhere around $.60 - $.90 depending on current prices. What is your opinion of that strategy? Not married to that time frame so I could also go longer term to November for $.10 - $.70. Seems like Nov puts are a little bit pricier. Before you say it, I know that this strategy can potentially get me long the stock from $26, but I am more comfortable with that price level than $33.50. And I would have all of the profits from my spread to reduce the effective purchase price of the stock to the low-20s range. Question from Andrew J. - FIT Nov 25/40 bullish risk reversal for even money - thoughts?

 

Around the Block: Earnings! Tuesday - ConAgra Foods Inc. Wednesday - Constellation Brands, Inc., General Mills, Paychex, Inc.

Option Block 442: What to Do During Extended Stock Halts

Jun 24, 2015 58:54

Description:

Trading Block: A Greek deal drives the rally ho! Dow briefly adds 150 points, NASDAQ sets intraday high on Greece hopes. Crude and gold both drop - gold off 1.5%. Hilton: Why are so many traders betting on this hotel giant? Amberella getting crushed.

 

Odd Block: Puts trade in Ford Motor Company (F), calls trade in Owens Corning (OC), and calls trade in Green Plains Inc. (GPRE).

 

Strategy Block: Uncle Mike discusses selling calls to hedge, post rally.

 

Mail Block: Listener questions and comments

 

Question from Kevin Duggan: to info Hi Mark, I love your shows! Question - What happens to my options if the underlying gets halted permanently? Would I ever be able to close them? I am remembering Sino Forest from a few years ago in Canada- stock got halted pending a fraud investigation and never came back. I am worried that I will not be able to cash in on my BABA Puts! Thanks, Kevin

Around the Block: Are there still earnings left? Evidently, with Blackberry reporting later. Will there be new all-time highs? Greece default date: 6/30.

Option Block 441: Bring in the Punt Team

Jun 20, 2015 59:22

Description:

Trading Block: Rally ho on the street.

Fitbit IPO prices at $20 a share, above expectations. Fitbit Inc., the maker of wearable fitness-tracking devices, priced its initial public offering above its estimated range at $20 a share, raising $732 million. That makes it the biggest tech IPO this year and gives it a market cap of roughly $4 billion. Apple Bands - Apple (AAPL) shares are in focus in early trading. The tech giant is reportedly amassing major profits from its Apple Watch band. Reuters reports that nearly 22% percent of Apple Watch buyers purchase one or more spare bands. Apple has sold approximately 2.8 million watches since of mid-June, according to an estimate from research firm Slice Intelligence. Oracle tumbles - shares are tanking in early trading. Shares of Oracle tanked 7.6% in premarket action after the software company late Wednesday reported a drop in fourth-quarter earnings.

Odd Block: Calls trade in Williams Companies Inc. (WMB), calls trade in Toll Brothers Inc. (TOL), and puts trade in iShares MSCI EAFE Index Fund (EFA)

 

 

Mail Block: Listener questions and comments:

Question from TennisGr8t - Longos Odd Block show. If technical analysis is not good for options how then do you get trade ideas? Are any of the newsletters that get hawked daily any good? I am leaning NO. Great show gents. Question from Anthony Sontakis - Hi, this message pertains to futures options. I currently trade futures options on Tradestation Futures+ platform. I was hoping someone might be able to recommend a Futures Options trading platform for a solo trader like myself. I need the ability to enter advanced orders like OCO and OSO based on the underlying price, and I need the ability for profit/loss graphs, neither of which features Tradestation platform supports right now. The only platform I have found that supports what I need is OptionsCity, but the pricing is for institutions ($2500/month) - that is cost prohibitive for me. Are there any good but affordable platforms out there to trade Futures Options for a little guy like me? Thanks, Anthony

 

 

Around the Block: Oracle, Rite-Aid earnings. Continuing to punt on the Fed. NASDAQ closes at record high. Another summit on the Greece bailout.

Option Block 440: Lions, Tigers and Bears. Oh, My!

Jun 17, 2015 54:57

Description:

Trading Block: Trade bodies urge regulators to sort out derivatives reporting. Stocks to watch: CVS, Lumber Liquidators, Actavis. CBOE extends VIX and SPX options trading hours as global growth in VIX continues to build.

 

Odd Block: Puts trade in SPDR S&P Homebuilders ETF (XHB), calls trade in iShares MSCI Germany Index (EWG), and calls roll in TASER International, Inc. (TASR).

 

 

Strategy Block: Tosaw discusses hedging bond portfolios.

 

Option Pit Mystery Block: Sebastian discusses crisis management.

 

 

Around the Block: Earnings: Oracle, Rite Aid & FedEx Highlight Quiet Earnings Week.

Option Block 439: Rise of the Delta Neutraler

Jun 13, 2015 01:00:09

Description:

Trading Block: Apples big meeting is a loser for investors - the Apple (AAPL) faithful are breathlessly awaiting the company's latest announcements at its confab starting Monday. But investors know better – it's a bust. VXX - closed the day at $18 (a change of -2.33%) at a relative volume of 0.95. Lululemon founder, Chip Wilson, files to sell his stake in the company.

Odd Block: Calls trade in iShares FTSE/Xinhua China (FXI), puts trade in iShares MSCI Germany Index (EWG), and big call buy in DISH Network Group (DISH)

Mail Block: Listener questions and comments

Question from RJR 357: Are the Options Bootcamps worth it? Question from Mr. Fed: Can you explain how to use gamma around earnings. Question from Roger Lee: were the calls sold or bought for Tyco? There are about 14K calls that are expiring in July as well. I'm not sure if it was a buy or sell as well.

Around the Block: Earnings: Sears, Lululemon.

Option Block 438: Newsletter Huckster Front-Runs Himself

Jun 10, 2015 58:19

Description:

Trading Block: Down day on the market: weekend coming in; selloff. TSLA up $7, but why? What is going on with Greece? If they can get out of their debt, why not the rest of the EU? Theta vs. delta. Could AAPL go over the trillion dollar market cap level? AVP rumor redux: making up stories to manipulate the market & SEC.

Odd Block: Puts trade in TUR, puts trade in AU, and calls trade in CCL.

Strategy Block: Ratio spreads on bonds.

Around the Block: Shaking fists at Greece. Vol blip. LULU earnings leak?

Option Block 437: Are Oil Puts Too Cheap

Jun 6, 2015 55:58

Description:

Trading Block: A pronounced selloff across the market today. The IMF calls out the Fed - says rates should be not raised until 2016. Goldman is long puts in USO and XLE - saying volatility is just too low.

Odd Block: Puts trade in Ocwen Financial Group (OCN), puts trade in Intel Corp. (INTC), and Aug calls trade in Cisco Systems, Inc. (CSCO)

Mail Block: Listener questions and comments

Question from Value Investrader: Question for you regarding unusual options activity, when Vol & OI increase, how do we know whether they were bought vs sold? Question from Tom_Inc: What is a good intraday options trading strategy for SPY? Question from Sin City: Why do you not use hashtags for each of the show to sort out the questions? For example: #OptionBlock, #VolatilityViews, etc.

Around the Block: Greek deadline coming up. Non-farm payrolls. Fed Watch: June.

Option Block 436: The Most Shameful Odd Block Yet

Jun 3, 2015 53:24

Description:

Trading Block: Embrace options in the TWTR stock fire sale. Intel to buy Altera in nearly $17B cash deal. Euronext to launch volatility contracts.

Odd Block: Calls and puts trade in CSX Corp (CSX), puts trade in IAMGOLD Corp (IAG), and calls trade in EV Energy Partners LP (EVEP)

Strategy Block: Anything you can do with stock, I can do with options.

Around the Block: June kicks off the close of earnings season.

Option Block 435: The Dark Heart of the Soul

May 30, 2015 50:10

Description:

Trading Block: Wall Street is using the power of Dodd-Frank against itself. Shake Shacks (SHAK) unhedgeable risk. Chipotle (CMG) stock rallying following higher analyst rating. Google (GOOGL) tech deals on pace to surpass 1999.

Odd Block: Calls trade in CONSOL Energy Inc. (CNX), calls trade in McDonalds Corp (MCD), and puts trade in iPath S&P 500 VIX Short Term ETN (VXX).

Mail Block: Listener questions and comments

Question from Gerry Engle - Hola fellows. Like the programs especially Option Block and Volatility Views. I noticed you guys do not talk much about technicals. The few times you have mentioned them you seem to take a dim view of them. Why is that? Are there no technicals that you feel are useful for options traders to pay attention to? Question from Calls vs Puts - Why is there not just one product that you can sell and buy to express your bullish or bearish outlook instead of two - calls and puts? Is that not a bit of overkill? Question from Georges Sinclair - Why are iron condors so popular? Seems like many other strategies can offer similar performance. Why has that one strategy become so dominant?

Around the Block: Early summer doldrums? Any action in anything anytime soon?

Option Block 434: Buy SPY Calls and Go Away

May 23, 2015 59:31

Description:

Option Block 434: Buy SPY Calls and Go Away

Trading Block: Buying SPY for the summer. The absence of fear - How low can the VIX go? Stocks rise to near records; oil jumps above $60. Someone made a quick buck trading cable mergers - Cablevision soared 18 percent on Wednesday

Odd Block: Calls trade in Sphere 3D corp. (ANY), calls trade in TYCO Intl PLC (TYC), and calls trade in Advance Auto Parts, Inc. (AAP)

Mail Block: Listener questions and comments

Question from David S. - I think Apple is writing/buying options. Check my blog post for an option oddity: - http://bravo0123.tumblr.com. Why would they do this? I do not know, it’s only 6 million shares for Apple. Can I profit off this guess? Not sure.

Around the Block: Earnings: Big-box retailers step into the spotlight for earnings this week - i.e. Best Buy.

Option Block 433: New Competitor for the Volatility Crown

May 20, 2015 56:11

Description:

Trading Block: Icahn says "dramatically undervalued" Apple should trade at $240.

AccuShares is set to list a couple of interesting products on Tuesday: AccuShares Spot CBOE VIX Fund Up Shares (VXUP) and AccuShares Spot CBOE VIX Fund Down Shares (VXDN).

Odd Block: Calls and puts trading in CBRE Group Inc. (CBRE), puts trade in DSW Inc. (DSW), and calls trade in Molson Coors Brewing Company (TAP)

Strategy Block: Uncle Mike Tosaw discusses trading in SPY

Around the Block: Earnings: Consensus estimates from Wall Street analysts call for year-on-year earnings growth from big-box retailers Home Depot Inc. and Target Corporation, but for earnings declines from Best Buy Co Inc., Staples, Inc. and Wal-Mart Stores, Inc. when they report this week.

Option Block 432: Brazen Illegal Activity in AVP

May 16, 2015 57:51

Description:

Trading Block: Rally ho on the market today. Is Avon in play? Stock halted after rallying over 20%. ADV 11k contracts - today over 75k! Avon Products Inc. said it never received a takeover bid from PTG Capital Partners Ltd., a firm listed in a securities filing as offering $18.75 a share for the struggling cosmetics company.

Odd Block: Calls trade in Michael Kors Holdings (KORS), calls trade in PowerShares DB Agriculture (DBA), and puts trade in Healthcare SPDR (XLV)

Mail Block: Listener questions and comments

Question from Dmitry Shesterin ‏- @Options Some equities have more active options than others, why is $BAC so disproportionately more active? Some contracts beat $SPY, $VIX. Question from Fred Decker - Mark, I am nearing the end of reading Natenberg - I have even been going back to some basic concepts in the earlier chapters to refresh myself. While I like the book, I do not see much of a trading edge in Natenberg. The market models he uses assume frictionless trades and that volatility is constant. Is Natenberg a good book to get an edge in the market, or do you have another secret book to add to the trader's arsenal?

Around the Block: Earnings: Major retailers highlight this week's earnings outlook.

Option Block 431: Why Is No One Trading Options?

May 13, 2015 55:29

Description:

Trading Block: OPEC: Oil prices to stay below $100 for next decade. April U.S. options volume at 327.6m, down from March as spreads tighten. Highlights from The Options Industry Conference in Miami last week.

Odd Block: Calls and puts trade in the SPDR S&P 500 ETF (SPY), puts trade in Altisource Portfolio Solutions (ASPS), and calls trade in Iron Mountain Inc. (IRM)

Strategy Block: Tosaw discusses selling calendar spreads

Mail Block: Listener questions and comments

Question from Nicolas Bougie: Many Thanks for [Russell] Rhodes podcast you guys put online. Very educational! My question to you guys is: What is your personal favorite trading platform and why? What platform would you suggest to someone starting in this business?

Around the Block: Earnings! Wednesday - Cisco, JC Penney, Macys. Thursday - Kohls, Nordstrom, King Digital

Option Block 430: Shaken, Not Stirred

May 9, 2015 39:43

Description:

Trading Block: Bond, James Bond. A bullish bond market rally could be in our future. VIX going into Non-Farm Payroll - could we see a big move?

Odd Block: Puts trade in Whole Foods Market, Inc. (WFM), puts go up in iShares iBoxx High Yield Corp ETF (HYG), calls trade in Alibaba Group Holding Ltd (BABA)

Mail Block: Listener questions and comments

Question from Dmitry Shesterin: Where do you see more HFT activity, in equities markets or options? Question from Tom: When should I adjust a credit spread? What percentage of profit should I aim for? Question from Fred: I am a futures guy dabbling in options. Do options traders need different tool than futures traders? If so, what tools or services do you recommend outside of the broker platforms? Question from Karl: What is the better way to get "free juice" on a bullish position - bullish risk reversal for a credit/even, vertical ratio call spread for a credit/even or just a short put for a credit (obviously). This would be for a near term (a few months), but not explosive (maybe to 5%) rally in the underlying. When is buying the stock the best option?

Strategy Block: Uncle Mike Tosaw discusses selling puts.

Around the Block: Looking ahead to non-farms

Option Block 429: Avenging Pacquiao

May 6, 2015 56:57

Description:

Option Block 429: Avenging Pacquiao

Trading Block: Bonds taking it on the chin. Disney stock soars, lifted by the superhero power of The Avengers. CBOE reports 35% of their total volume is from weeklys.

 

 

Odd Block: Puts roll in iShares Russell 2000 index ETF (IWM), massive put block trade in SouFun Holdings Ltd (SFUN), and puts trade in Clean Energy Fuels Corp. (CLNE)

 

Outside Trading Hours: In his brand new segment, Mark Sebastian discusses the NFLs latest move to remove tax-except status.

 

 

Around the Block: Earnings

Option Block 428: The Thorax of the Trade

May 2, 2015 38:01

Description:

Option Block 428: The Thorax of the Trade

Trading Block: Tattoo snafu inks Apple iWatch wearers. Options volume slid in first quarter. Bad sign? Retail investors all in: TD Ameritrade. The dollar is on its longest losing streak since 2011. India VIX caps monthly advance as futures rollover below average. Tesla loses ground ahead of battery event.

 

 

Odd Block: Calls trade in PowerShares DB US Dollar Index (UUP), calls trade in Kinder Morgan Inc. (KMI), and puts trade in Youku Tudou Inc. (YOKU)

 

Mail Block: Listener questions and comments

Question from Nick - I have heard markets spend 30% of time trending and 70% of time bracketing. Can I use options to trade both of these environments? Question from Alan - Why is rolling a position so prominent? Is that not just averaging into a losing trade? Question from Anglo Jim - We saw a trending bull market for most of 2014. Is it simplistic to say that you could have just bought out-of-the-money calls and done fairly well? What about that decay that you are always talking about? Does that become a factor in that strategy, or does the bull market overcome it? Question from Orlando - I am thinking of using weeklys to initiate debit vertical call spreads. Is that a good use case for them? Comment from Mark Brant - @Options Great Option Block episode! I got even smarter about options again! The gift that keeps on giving: OIR. Thx!

 

 

Around the Block: Earnings: Apple & other earnings expected to dominate the week of April 27. Friday - Chevron, Weyerhaeuser

Option Block 427: Rocking AAPL Earnings

Apr 29, 2015 58:53

Description:

Option Block 427: Rocking AAPL Earnings

Trading Block: AAPL earnings after the bell.

AAPL Stats:

·  ATM weekly straddle: $7.20 - approx 5.4%.

·  ADV: 988K contracts.

·  Today: 1.7M contracts.

·  Call/put ratio: 2.1/1.

·  Net deltas: short 670k.

·  Calls sold on bid roughly equal to calls bought on ask - puts also evenly divided.

·  AAPL volatility bets surge in options market as buyback beckons.

Investors seek protection against healthcare stock decline - Healthcare companies on a seven-year tear have been top performers so far in 2015. Love ’em or Hate ’em, China Stocks Are Red Hot in Options Market - Bearish options bets on the Deutsche X-trackers Harvest CSI 300 China A-Shares ETF.

Odd Block: Calls go up in iShares MSCI Taiwan Index (EWT), call blocks trading in Joy Global Inc. (JOY), and OTM puts trade in Direct TV (DTV)

Strategy Block: Tosaw discusses hedging AAPL and other earnings strategies.

Mail Block: Listener questions and comments

Question from Cab 65 - What account size do you recommend to sell wide iron condors?

Rock Block: In which the all-stars discuss movies in the Michael Bay oeuvre. Let us know your thoughts on Facebook, Twitter, or by email

Which Nicholas Cage movie is the best?

The Rock Con Air Face Off

Who does the best “Welcome to the rock” interpretation?

Uncle Mike  The greasy meatball Mark “the voice of options” Longo

Around the Block: Earnings: AAPL & other earnings expected to dominate the week of April 27.

 

 

Option Block 426: Hedging Crude Oil Is Not Rocket Science

Apr 25, 2015 42:47

Description:

Option Block 426: Hedging Crude Oil Is Not Rocket Science

Trading Block: NASDAQ composite rises above March 2000 record close. Roots of 'flash crash' go back further than you thought at CME. Oil jumps 3 percent, hits 2015 high on Yemen, supply concern. Earnings today include (before the bell): GM, Procter and Gamble, Caterpillar, Dow Chemical, Southwest Airlines, Dunkin Brand Groups; and (after the bell): Google, Microsoft, Starbucks, Amazon, Capital One, E-Trade Financial, Pandora.

 

Odd Block: Giant put buyer in The CBOE Volatility Index (VIX), and calls trade in iShares MSCI Taiwan Index (EWT)

Mail Block: Listener questions and comments

Question from Vegan - What oil products do airlines use to hedge their crude exposure? Question from Nick - I have heard markets spend 30% of time trending and 70% of time bracketing. Can I use options to trade both of those environments? Question from Alan - Why is rolling a position so prominent? Is that no just averaging into a losing trade? Question from Evan - For Uncle Mike - I am long the Apple July 130-140 call spread. What do you think about this both for an earnings play, as well as for some longer term bullish exposure to Apple? What are some other bullish strategies you could recommend for a modest ten-point rally over the next three months? Comment from Mark Brant - Great Option Block episode! I got even smarter about options again! The gift that keeps on giving: OIR. Thx! 

 

Around the Block: More earnings. Friday, April 24 - American Airlines, Xerox, Tyco International. Monday, April 27 - Apple, Inc.

Option Block 425: Scratching Heads & Taking Names

Apr 22, 2015 56:05

Description:

Option Block 425: Scratching Heads & Taking Names

Trading Block: A mild day on the street. IBM Earnings after the bell today - IBM trading around $164.30. Costco stock rises today after upping dividend - reauthorizing $4B buyback program. This is how one trader made millions on Disney - shares of Walt Disney have had a great year.

 

 

Odd Block: Calls trade in Owens Corning (OC), puts trade in Wolverine World Wide, Inc. (WWW), and calls trade in Spectra Energy Corp. (SE).

Strategy Block: Tosaw discusses ways in which to protect your portfolio.

 

 

Mail Block: Listener questions and comments

Question from Sean - Can you do a quick overview of binary options? How do they differ from regular options, and when should people use them? How do I choose my strike with binary options?

Around the Block: Earnings: Morgan Stanley, Facebook, Coke. Some huge names report earnings this week.

 

Option Block 424: NFLX and the Roll to Oblivion

Apr 19, 2015 59:29

Description:

Option Block 424: NFLX and the Roll to Oblivion

Trading Block: The "Widowmaker" rides again - NFLX has a HUGE post-earnings rally, up $56. BATS to file for second U.S. options exchange. IPO: Stock of online marketplace Etsy surges in trading debut. Shares of high-speed trading company Virtu Financial Inc. have risen 17 percent in their stock market debut Thursday. Ben Bernanke is not the problem, the system is the problem.

 

Odd Block: Calls trade in Kinder Morgan Inc. (KMI), puts trade in iShares MSCI Turkey ETF (TUR), and broken wing put flies go up in Royal Bank of Canada (RY)

 

Mail Block Palooza: Listener questions and comments

 

 

Question from Tom - When should I adjust a credit spread? What percentage of profit should I aim for? Question from DuckTape - Can you guys recommend any good movies about options trading?

Option Block 423: Unusual Activity Palooza

Apr 15, 2015 58:14

Description:

Option Block 423: Unusual Activity Palooza

Trading Block: How traders cashed in big on the GE deal. VIX does record volume - it’s been a while.

 

Odd Block: Calls trade in Dunkin Brands Group (DNKN), puts trade in Valero Energy Corp. (VLO), calls trade in AT&T (T).

 

Strategy Block: A special strategy block from Andrew about volatility

 

 

Mail Block: Question from Ingles - I like options, but the commissions are killing me! Why are they so expensive?

 

Around the Block: Earnings!

Tuesday - JP Morgan, Wells Fargo, Intel Corporation Wednesday - Bank of America, Netflix, Inc., SanDisk Corporation Thursday - Goldman Sachs, Citigroup Inc., American Express Company Friday - General Electric Company

The Great Derivatives Guessing Game

Apr 11, 2015 58:36

Description:

TRADING BLOCK

Crazy realized volatility going down in Hong Kong markets - EWH. The Apple Watch release. Its time for the "Global Derivatives" guessing game.  

ODD BLOCK

Calls trade in ConocoPhillips (COP) Puts trade in Crestwood Equity Partners LP (CEQP) Calls trade in New Oriental Education & Tech (EDU

MAIL BLOCK

Question from Mark Brant - When to close weekly short option positions on expiration friday?  Morning or afternoon? Plus Mark wins the Options Insider Radio Network devoted listener prize for listening to EVERY episode of every program on the network. Very impressive. Question from NJay - OTM options are reasonably priced - should I buy them? 

 

Option Block 421: The Tesla Options Protection Package

Apr 9, 2015 59:41

Description:

Option Block 421: The Tesla Options Protection Package

Trading Block: A sea of green on the street today. Tesla having its best day in five months - Back over $200. Oil leaps 5% on tempered Iran view, slower U.S. inventory rise.

 

Odd Block: Calls trade in Market Vectors Oil Services ETF (OIH), calls trade in Outerwall Inc. (OUTR), calls trade in Harley-Davidson Inc. (HOG)

 

 

Strategy Block: When is it ok to take profits early?

 

Mail Block: Question from NYSE Trader - Is it possible for hedge funds to press on options of illiquid stocks to manipulate prices? Can they do that?

 

Around the Block: Alcoa earnings on Wednesday. Last week’s jobs report. Looking at gold and oil. Don’t diddle in the middle.

 

 

Option Block 420: Farewell to the Viceroy

Apr 1, 2015 58:15

Description:

Option Block 420: Farewell to the Viceroy

Trading Block: A sea of green in the market today - everything up! Wall Street regulator fears up for labor fight with its workers. High-frequency trading worries are fading, ConvergeX finds. Tesla CEO Elon Musk teases new product. Spoiler Alert: It is not a car.

 

Odd Block: Puts go flying is Tyson Foods (TSN), calls trade in HCP, Inc. (HCP), and puts trade in Dicks Sporting Goods Inc. (DKS)

 

Strategy Block:  Uncle Mike Tosaw recollects on his first meeting with Alex Jacobson and the subsequent years following.

 

 

 

Xpress Block: The Viceroy tips his hat in a final goodbye.

Option Block 419: The Great Weekly Option Trading Debate

Mar 28, 2015 58:35

Description:

Option Block 419: The Great Weekly Option Trading Debate

Trading Block: The market off just a fraction. Call option trades target return of $100 US crude oil. Options traders getting paid following Buffett to Kraft takeover.

Odd Block: Calls trade in EOG Resources Inc. (EOG); puts trading in iShares Emerging Markets ETF (EEM), and; puts trade in Market Vectors Semiconductor ETF (SMH)  

 

Xpress Block: Alex discusses many of the functions in the OX mobile platform.

 

Mail Block: Listener questions and comments

Question from Joseph Anthony - I appreciate your input on the following issues. I know that I am not alone in dealing with these questions. I continue to be confused on which weekly strike to choose when trading for a one or two day hold. I realize if issue does not move in my desired direction by Tuesday afternoon I risk theta decay and it increases rapidly as week progresses toward expiry. My thoughts in trading weeklies is to trade the ATM or most liquid on Monday and Tuesday. Trade one strike in the money on Wednesday and Thursday and trade two strikes in the money on Friday. I have read many articles recommending to trade DITM options (+-90) for a close to $1 for $1 effect. But the DITM are often quite illiquid and expensive. My model generates 75%+ success rate in choosing issues that move according to my projections and I choose to use weekly options to trade a small universe (AAPL, AMZN, GOOGL, AND NFLX) but I am still struggling to definitively choose the "right" option. My model is predicated on an immediate move and if it does not transpire in a bar or two I tighten my stop or exit. I am looking to trade naked or use strips and straps in order to implement my models signals. Thank you in advance.

 

Question from NJay - What should I be using to value my index options properly, the cash index or the actual underlying futures? Thank you for all your insight.       

 

Around The Block: Earnings today (before the bell): ConAgra Foods, Lululemon Athletica Inc., Accenture, Cosi, Inc. After the Bell: GameStop Corporation.  Friday: BlackBerry Ltd, Carnival Corp.

Option Block 418: Something Has To Work

Mar 25, 2015 01:02:59

Description:

Option Block 418: Something Has To Work

Trading Block: Earnings before the bell today: Geopark (GPRK) Posts Quarterly Earnings Results, Beats Estimates By $0.17 EPS. Earnings after the bell today: Flexion Therapeutics, Concord Medical Services Holdings Limited, Vericel Corporation. Senator Warren questions SEC chair on broker reforms. Volcker Outlines Plan for Overhauling Financial Regulation. Oil rises as weakening dollar outweighs OPEC oversupply.

 

 

Odd Block: Put traders in Neustar Inc. (NSR), calls trade in Caesars Entertainment Corp (CZR), and puts trade in ENSCO PLC (ESV) are up .10 to 21.15 today.

 

Xpress Block: Come on in and try out an OX virtual trade account.

 

Strategy Block: It’s tax season - Tosaw discusses regular vs Roth IRAs

 

 

Around the Block: Earnings: A relatively quiet week on the earnings front. Thursday: ConAgra Foods, GameStop, Lululemon. Friday: BlackBerry Ltd, Carnival Corp.

Option Block 417: Big Boy AAPL and Crazy VIX Settlement

Mar 21, 2015 57:23

Description:

Option Block 417: Big Boy AAPL and Crazy VIX Settlement

Trading Block: The Dow welcomes Apple. Informed traders prefer options says academic research. Options market sees bottom in gold with urgency on hold at Fed.  Earnings today (before the bell): Lennar (LEN); after the bell: Nike.

 

Odd Block: Unusual traders in Sina Corp. (SINA)

 

Xpress Block: Alex discusses covered writing strategies

 

 

Mail Block: Listener questions and comments

Question from Mark Brant - Thanks to the crew for a great show and for answering my question! When the cat was away the mice did play! ...@Options Do block trades show up on the retail brokerages position ledgers as volume and OI... AAPL 1M ATR is at the top of its 20yr range so I bot April straddles for way less! Question from Nico - Do I need to understand the Black-Scholes formula to trade options? Question from James Mile - I am currently reading the options books by McMillan and Natenberg (thanks for the great suggestions). The latter chapters of some of these books get pretty deep into the mathematical underpinnings of the options market. I have to wonder if most of the people who are trading these products really understand this stuff. Do you share my concerns that there are potentially millions of people out there slinging calls and puts that really don’t understand how any of this stuff works? Great program. Glad OX/Schwab is a supporter of such fine content.

Option Block 416: Blasting Out Cheap XLE Puts

Mar 18, 2015 01:00:03

Description:

Option Block 416: Blasting Out Cheap XLE Puts

Trading Block: Rally ho on the street! Options traders are starting to pay up for crash protection, according to a recent note from Goldman Sachs. Long-dated crash put protection costs on the [S&P 500] have more than doubled over the past 9 months.

 

S&P 500 declines for third straight week as dollar resumes rally. OPEC says low oil prices may hit U.S. output by late 2015.

 

Odd Block: Puts trade in US Silica Holdings Inc. (SLCA), put trade in iShares MSCI Brazil Index (EWZ), and calls trade in Lowes Co. (LOW).

 

Xpress Block: Check out both the Xpresso and Xpound blogs.

 

Strategy Block: Tosaw discusses breaking his rules in a recent put spread trade.

 

Mail Block: Listener questions and comments

Question from Rahul Tondulkar - Hey guys I want to know how much minimum open in required to say that the option has liquidity? Can anyone please help me out?? Question from Neal Tompkins - How do I know when an option is going to be less liquid? What are some good suggestions for dealing with less liquid options?

Around the Block: Upcoming Earnings: Tuesday – Oracle; Wednesday - FedEx, Silver Wheaton; Thursday - Nike, Lennar

 

Option Block 415: How to Play the Lottery

Mar 14, 2015 01:04:44

Description:

Option Block 415: How to Play the Lottery

Trading Block: Nasdaq enters energy futures trading to compete with CME, ICE. Lumber Liquidators’ stock soars after company offers business update. Shake Shack gets burned: Stock falls 7%. Earnings today before the bell Dollar General reported record fourth quarter and full year 2014 financial results. After the bell includes Aeropostale Inc. and ULTA Beauty.   

 

 

Odd Block: Calls go up Steel Dynamics, Inc. (STLD), combos trade in Pinnacle Entertainment, Inc. (PNK), and combos trade in International Business Machines (IBM)

 

Xpress Block: Alex discusses the OX Idea Hub.

 

Strategy Block: Some fun stories about not playing the lottery.

 

Mail Block: Listener questions and comments

Question from Mark Brant - Do block trades show up on the retail brokerages position ledgers as volume and OI? Question from Fred - What is the best way to use an option to speculate on the S&Ps intraday movement?

 

Around the Block: Watching the sovereign 10-years, VIX, higher Dow. What about the price of oil? Will the contagion spread? Fed. Fed. Fed. Can we get off the road to nowhere?

 

 

Option Block 414: The Princess Bride Fed

Mar 11, 2015 01:03:27

Description:

Option Block 414: The Princess Bride Fed

Trading Block: A mild day on the street. Earnings after the bell today include: Urban Outfitters and Qihoo 360 Technology. Nymex reports incorrect energy prices. Oil rebounds from early drop on modest Cushing stock build. What will the Apple Watch do to the stock?

 

Odd Block: Puts trade in iShares Dow Jones US Real Estate ETF (IYR); puts trade in CIT BioPharma Corp (CTIC), and; call buyers in Gaming and Leisure Properties (GLPI)

 

 

Xpress Block: The best OX feature: The Walk Limit

Strategy Block: Uncle Mike discusses the importance of timing

 

Mail Block: Listener questions and comments

 

Question from IJay - Are a lot of people trading weekly options? If so what are they using them for?

Around the Block: Earnings!

 

Tuesday, March 10:  FuelCell Energy,   Barnes & Noble, VeriFone Systems Wednesday, March 11:  Shake Shack, Express, Krispy Kreme Doughnuts, Mens Wearhouse, Vera Bradley, XOMA Corporation Thursday, March 12:  Aeropostale Inc, Dollar General Corp., JA Solar Holdings, Synta Pharmaceuticals, ULTA Beauty

 

 

Option Block 413: When Not To Use Options

Mar 7, 2015 59:48

Description:

Option Block 413: When Not To Use Options

Trading Block: A quiet day on the street today. ISE preps third options exchange. Expect more volatility in oil says Exxon CEO. NASDAQ near 5000 amid ECB plans, big pharma deal. Earnings today include: Costco, Kroger.

 

Odd Block: Calls roll in T-Mobile US Inc. (TMUS), big moves in Canadian Solar Inc. (CSIQ), and OTM puts trade in Inc. yet Corporation (INCY).

 

 

Xpress Block: Alex discusses the OX Virtual Trade Account and Schwab Mobile

 

Mail Block: Listener questions and comments.

Question from Alejandro Vergoza - When is it right to use options and when is it right to use the stock instead? Question from Jay - If the market is really falling out of bed what are some good strategies to take advantage of that movement while also minimizing option decay? Question from Fred - Is there a problem in the options market with novice options traders not understanding the risks they are taking? Do you think that will that lead to regulatory action down the road?

 

 

Around the Block: Earnings tomorrow includes Staples. February jobs report comes out on Friday. Can non-farms save the bulls?

Option Block 412: Sneaky Deltas

Mar 4, 2015 59:11

Description:

Option Block 412: Sneaky Deltas

Trading Block: Earnings after the bell today: Caesars Entertainment: Late to the party but still a star. Nasdaq hits 5000. Stocks just registered their largest monthly gains in nearly four years. CBOE to expand VIX options trading hours from Monday. Option activity in Lumber Liquidators. What would the Dow look like if it included Apple?

 

 

Odd Block: Closing and rolling in The Energy Select Sector SPDR (XLE), bullish bets in National Bank of Greece (NBG), and calls trade in Mens Wearhouse (MW)

 

Xpress Block: Alex discusses the Virtual Trade tools

 

Strategy Block: A special Strategy Block from Mark Sebastian about sneaky delta!

 

Mail Block: questions and comments from listeners

Question from Evan J. - Are there fundamental differences between European and Asia options markets versus the American options market?

 

 

Around the Block: Earnings: Tuesday, March 3 - Best Buy, Dick’s Sporting Goods; Wednesday, March 4 - Abercrombie & Fitch, PetSmart, H&R Block; Thursday, March 5 - Costco, Kroger; Friday, March 6 - Staples

Option Block 411: Futures Traders vs. Stock Traders

Mar 1, 2015 56:43

Description:

Option Block 411: Futures Traders vs. Stock Traders

Trading Block: Earnings today include: (Before the Bell) Kohl’s, 3d Systems Corp, SeaWorld Entertainment, LifeTime Fitness, Marriott Vacations Worldwide, Magellan Health, Anheuser-Busch InBev, Sears, Avago Technologies. After the bell:  Gap, JC Penney, Weight Watchers, Crocs, Herbalife. Oil edges higher towards $62, ample supplies still weigh. Apple rains on stock market parade.

 

 

Odd Block: Puts trade in Exelixis, Inc (EXEL), puts trade in SPDR S&P Metals and Mining ETF (XME), and all sellers in iShares MSCI Japan ETF (EWJ)

 

Xpress Block: The Schwab mobile app hits 1 million downloads. Also, its tax season!

 

Mail Block: Listener questions and comments

Question from Brian Collamer - Hi Mark, back in October I sent this question and I see you ran with it in a couple of other shows: You mentioned that when selling options the fastest theta decay occurs in the 45-30 day range.  I thought that was only true for ATM options? Do OTM options decay the fastest at 60-70 days and then kind of flatten out? In each show you had asked where I had seen/heard this. LiveVol blog and forum. What do you think? Thanks for the great content! PS: Futures Roundtable needs to be twice a month IMHO. Question from Thomas: Is there an active spread market for options on crude futures? Also do you feel that futures traders make better options traders than stock traders?

 

Around the Block: More earnings: Friday, February 27:  Goodrich Petroleum, Isis Pharmaceuticals

Option Block 409: Talking PCLN, Crude and Pairs Trading

Feb 21, 2015 01:01:10

Description:

Option Block 409: Talking PCLN, Crude and Pairs Trading

Trading Block: There is still no real agreement among Fed officials on rate hike timing. Oil cuts loss as supply hike not as large as anticipated. Earnings today: before the bell: Wal-Mart, Priceline Group Inc., T-Mobile; after the bell: Intuit

 

Odd Block: Calls roll in (BWP), calls and puts trading in Microsoft Corp (MSFT), and calls trade in Boston Properties, Inc. (BXP)

 

 

Xpress Block: Alex discusses OX and Schwab mobile trading

 

Mail Block: Listener questions and comments.

Comment from Martin - Thank you that you share this precious information on your show for free. A great job. Well done. Martin from Germany. Comment from Kevin Duggan - Hi Mark, Love your shows! Not to be an ingrate for all the great, free info and entertainment but, could you put out your podcast the same day you record it? It is always strange hearing you talk about Thursday’s market after Fridays close. It is not a big deal, more of a first-world problem really, but posting sooner would significantly bump up your cool factor. Thanks. Question from John D. - Hi, Love your show. You guys do a great job. Keep up the good work. My question...If I am looking at a pair trade (e.g. long Facebook, short Twitter), obviously I can do it by buying/shorting the stocks. I was trying to figure out if there is any way to effective do the same thing with options what the advantages might be, if any. I thought of doing a synthetic long/short, but did not see any advantage since I will be naked short an option for both names... but maybe margin treatment is different? Long call on one and log put on the other does not seem to make sense since I am pretty much guaranteed to lose the premium on both those positions. Is there another or better way to structure this type of trade using options? Thanks, John D

 

 

Around the Block: Earnings coming up down the road.

Option Block 408: Juicy Apple Puts

Feb 14, 2015 01:03:50

Description:

Option Block 408: Juicy Apple Puts

Trading Block: Earnings today after the bell:  AIG, Groupon, King Digital Media (Candy Crush). Earnings before the bell today: Avon, McGraw Hill, Kellogg Co. Insuring against Apple blow-up just got a lot more expensive. Tesla shares fall after earnings, despite musk apple comparison. Oil prices rally from sharp losses.

 

 

Odd Block: Call buyers in Domtar Corp (UFS), call buyers on fire in FireEye Inc (FEYE), and put spreads trade in Morgan Stanley (MS)

 

Xpress Block: Alex discusses the OX Help Desk.

 

Mail Block: Listener questions and comments

Question from Nick Snow - Hello Mark and other guests. I was wondering if you have ever put together a quick review of other people or newsletters in the industry. For years I have come to options insider because it doesn't spam me, it does not ask for my credit card, and above all I find the information on all shows greatly beneficial. There seem to be so many hacks out there ready to take others money, I think it is time you rate a bunch of other professionals with a simple "Put or Call" rating meaning that company or person is worthless to listen to or actually useful. So of course the options insider would get a call rating from me since it is about the only premium I would be willing to purchase. Thanks again look forward to listening into the future. Question from Tom A Bomb - Distinguished Gentlemen, This is a follow-on to a question I posted a few weeks ago regarding a back-of-the-envelope method to price vertical spreads. Last time, I got a vote of at least 50% crap, and I am really shooting to get the crap content down to around 25%. The panel identified that skew and vol estimates were the weak spots in my method. I am somewhat disappointed on the skew aspect. I do not think there is any quick way to incorporate skew into a calculation on a napkin. So, bummer there… But on to my real question: Some of the panel members speculated I might be getting my vol estimates from delta. Not true. I am not using implied either. In large part, the point of my method is to remove any short-term noise to arrive at a “stable” or “normal” estimate. To that end, I will usually match my input vol figure to realized vol of over a comparable period. For example: I want to buy a XYZ 95-100 vert call spread that is 100 days from expiration. 100-day realized vol is currently around 15%. I use that 15% vol input and calculate there is a 30% chance that XYZ will finish above $100 at expiration. Therefore, $5 (width between strikes) x 30% would put the mid-price of the spread around $1.50… Now, I totally understand that historical performance is not an indicator of future yada-yada-yada. The main goal here is to avoid buying when, historically speaking, prices are pumped; or selling when prices are depressed. So, there is my volatility angle. Admittedly, I’m still beat on the skew angle. I will get back to you on that I suppose. Gentlemen, estimates on the crap content...? (Sorry Longo I know this is a long question – tried 3 times to make is shorter! Please cover this on the Option Block again, if you can! Thanks!)

 

Around the Block: Earnings before the bell today: Avon, McGraw Hill, Kellogg Co.Earnings tomorrow: Time Inc.

 

Option Block 407: Cracking Down on Insider Trading

Feb 11, 2015 57:10

Description:

Option Block 407: Cracking Down on Insider Trading

Trading Block: A light day on the market. Oil rallies for third day after OPEC sees greater crude demand. Oil rose for a third straight session on Monday as OPEC forecast greater demand for crude this year than previously thought and projected less supply from countries outside the group. Does Germany owe Greece war reparations?  Toys for boys push Hasbro earnings above Wall Street expectations. SEC probes Blackberry options trading ahead of Reuters report about Samsung talks.

 

 

Odd Block: Early put closer in Fidelity National Financial Inc. (FNF), quick call sale in LinnCo LLC (LNCO), and put trader in SPDR S&P Biotech ETF (XBI)

 

Xpress Block: An in depth look at the Trade and Volatility Calculator and other tools from OX.

 

Strategy Block: Uncle Mike talks the virtues of patience, how to be wrong in the right way and factoring in losses.

 

Around The Block: Earnings!

 

Tuesday, February 10:  Omnicon, Starwood Hotels & Resorts Worldwide, Molson Coors Brewing, MillerCoors, Dean Foods Wednesday, February 11:  Tesla, Thomson Reuters, Whole Foods Market, Nvidia Corp, AOL Inc, Time Warner, Metlife, Cisco Thursday, February 12:  AIG, Groupon, Avon, McGraw Hill, Kellogg Co. Friday, February 13:  Time Inc.

Option Block 406: Selling Nonsense Apple Puts

Feb 7, 2015 01:00:14

Description:

Option Block 406: Selling Nonsense Apple Puts

Trading Block: Earnings today after the bell: Twitter, Amazon, LinkedIn, Activision. Traders silenced: CME to close most futures trading pits. Open-outcry trading stood no chance, says futures 'father' Melamed.

 

 

Odd Block: Upside calls trade in Youku Tudou Inc. (YOKU), put sellers in Apple Inc. (AAPL), and puts trade in Oasis Petroleum Inc. (OAS)

 

Xpress Block: A recap of Idea Hub, Trade and Probability Calculator and All-in-One Trade Ticket.

 

Mail Block: Listener questions and comments

Question from Mark Brant - @Options (14,922 AGNC Mar 22 calls went up in 1 giant block marked buy-write with 360800 shares going up marked derivative.) Where did it "go up" and where was it "marked"? Where are you seeing these trades? Thx!

 

 

Around the Block: Earnings - Before the bell today: ISE, Sprint, Keurig Green Mountain. On Friday, February 6:  CBOE

Option Block 405: Neither Rain nor Snow

Feb 4, 2015 59:01

Description:

Option Block 405: Neither Rain nor Snow

Trading Block: Chicago digs out from under the snow. Patriots win! Sorry investors.

 

Shake Shack shares are getting pummeled. Apple taps bond markets for $5bn. Oil advances on US slowdown hopes.

 

Odd Block: Call spreads in iShares MSCI Brazil Index (EWZ), 3-way in Danaher Corp (DHR), and time spreads trade in Chimerix Inc. (CMRX)

 

Xpress Block: New 2015 OX ads - featuring The Walk Limit, The Trading Probably Calculator, and Idea Hub.

 

Strategy Block: Uncle Mike Tosaw and his current SPY trading strategy

 

 

Around the Block: Earnings after the bell tomorrow (February 3):  Disney; on Wednesday (February 4):  GM & Merck; on Thursday (February 5):  Sprint & Twitter

Option Block 404: Earnings Palooza: GOOG, AAPL, AMZN, BABA, F, and More

Jan 31, 2015 01:02:57

Description:

Option Block 404: Earnings Palooza: GOOG, AAPL, AMZN, BABA, F, and More

Trading Block: Apple crushes it on earnings - Uncle Mike, did this change your bearish sentiment from the last show? Earnings this morning: Ford and Alibaba. Earnings today after the bell: Amazon and Google.

 

Odd Block: Put spreads trade in Assured Guaranty LTD. (AGO), puts roll in Newfield Exploration Co. (NFX), and calls trade in American Eagle Outfitters (AEO)

 

Xpress Block: A ton of volume in AAPL, AMZN and BABA - not much time for anything after B.

Mail Block: Listener questions and comments

Question from Ernatine14 - If vol was not high enough to be sold in Apple, then is it low enough to be bought in Google? Is it priced this way for a reason or is the options market clearly wrong? Question from Rohan - Do you think it’s viable for an active retail trader to become a professional retail trader using primarily the freely available tools from OX and other retail brokers? How viable is that in the current environment? Would I always be at a disadvantage from the pros picking me off? Is this just a pipe dream? How much would you say the average pro trader needs to make to be viable? Thanks again for all the great programs you guys have put out for free. Congratulations for making it all the way to 400, and thanks to OX for making the whole dance happen.

 

 

Around the Block: Updates on Google and Amazon.

Option Block 403: Frozen Dolls and Apple Puts

Jan 28, 2015 01:01:25

Description:

Option Block 403: Frozen Dolls and Apple Puts

Trading Block: Not much movement in the market today. Greek elections had little to no effect. Earnings after the bell today: MSFT. Mattel: Barbie being crushed by Frozen, CEO stepping down.

 

Odd Block: Puts seller trade in United States Oil Fund LP (USO), put blocks trade in NextEra Energy Inc. (NEE), possible OTM put sellers in Micron Technology (MU)

 

 

Xpress Block: Alex discusses the walk limit and the all in one trade ticket features on the OX website.

 

 

Strategy Block: Uncle Mike talks about his most recent strategy in everyone’s favorite fruit company - Apple.

 

 

Around the Block: Update on MSFT earnings. Tomorrow: AAPL, YHOO. Boeing, FB - 1/28, AMZN, GOOG - 1/29

Option Block 402: Yield Hunters Out In Force

Jan 24, 2015 57:34

Description:

Option Block 402: Yield Hunters Out In Force

 

Trading Block: A sea of green across the board today. After the bell today:  Starbucks - Time to get your Starbucks (stock) again? - ATM straddle approx. $1.70

 

 

Odd Block: Calls trade in W&T Offshore, Inc. (WTI), Put buyers in Nielsen Holdings NV (NLSN), and Calls trade in KB Home (KBH)

 

 

Xpress Block: Alex discusses the FX markets and also the covered write tool in the Idea Hub

 

Mail Block: Questions from our listeners.

Question from Tom A Bomb - Fine-hatted Gentlemen, A question for the Option Block regarding verticals:  First, you all rock. Best show on the network! Thank you OX.  I have been trading high-leverage verticals for a while now and I am looking for a quick way to price em. I place emphasis on quick. I.e. Without running a model on the individual legs.  I have taken (rightly or wrongly) to using the probability of a finish beyond the short strike multiplied by the width of the spread.  For example, XYZ has a 30% chance of finishing above $50 by expiration. I am long a 45/50 call spread. So, at 30% times 5, I would expect the mid-price to be around $1.5 for the spread.  On balance, this method seems to under-price positive delta, and often significantly over-price negative delta.  Is this method complete crap? Any suggestions?

 

 

Around the Block: Lots of earnings around the corner. 

Option Block 401: Apple vs. Swiss Franc

Jan 17, 2015 01:00:28

Description:

Option Block 401: Apple vs. Swiss Franc

Trading Block: Switzerland stuns markets by giving up on currency peg. Big moves in gold. The Tesla free fall: Elon Musk now $2.8B poorer. US stocks head lower; crude oil price falls again. Intel moving up again.

 

 

Odd Block: Puts go up in Taiwan Semiconductor Mfg (TSM), calls roll in WeyerHaeuser Co. (WY), and size call buyer in Brisol-Meyers Squibb Co. (BMY)

 

Startegy Block: Uncle Mike discusses long SPY positions

 

Mail Block: Listener questions

 

Question from Faye Cuzername - On 10/24 I bought 2 Dec 305/315/325 call fly in AMZN for $0.91. Stock moved through the fly so today (11/14) when AMZN @ 326, I sold it for $1.50. A whopping $.55/ contract after commissions. What adjustments should I have considered with the fly since I do not see AMZN retracing during the Christmas season? Note that I have a 9-5 so I am not watching the screen all day if that affects what you suggest. 

Option Block 400th Episode Spectacular

Jan 14, 2015 01:02:02

Description:

Option Block 400th Episode Spectacular

Our favorite episodes, listener questions and memories from 400 episodes of the Option Block.

 

Listener Mail Palooza:

Question from Charles B - Great show guys. Congrats on your continued success. I recently stopped trading options on Google and PCLN because the spreads were just too wide. Why do the market makers do this? Is it not in their best interest to provide an incentive for traders like me to actually trade the product? If I cannot afford the spread then everyone loses. Question from S Davis - Love all your UA shows on the network including Oddities and the Odd Block on The Option Block. I find this stuff endlessly fascinating. I wonder if you could clear up an issue for me. I do not really understand the rules about insiders and options. I know that an “insider” cannot just sell his stock before a non-public event without a great deal of disclosure. But what are the rules regarding options? Is buying a put considered analogous to selling the stock from a disclosure perspective? Is it illegal for an insider to buy puts ahead of a material non-public event? Thanks for clearing up this very basic question and for creating such great programs. Question from Alan Pinkman - Hello Mark along with the Viceroy, Uncle, Lobster and Meatball. I know many of you came from a market making background. But I also note that all of you are “former” market makers. What was it that prompted your exit from the business? Do you think it is even worth exploring that as a career path any longer or is options market making pretty much done as a career these days? 

 

Looking ahead to future episodes: What would you guys like to see on the show in future episode?

Option Block 399: The Gamma Rage Monster

Jan 10, 2015 01:02:54

Description:

Option Block 399: The Gamma Rage Monster

Trading Block: A reversal of the selloff we saw earlier this week. Big Apple numbers. S&P 500 erases 2015 loss, euro weakens on stimulus bets

 

 

Odd Block: Puts trade in iPath S&P 500 Short Term VIX ETN (VXX), calls go up in Brunswick Corp. (BC), and puts roll in Vanguard Emerging Markets ETF (VWO)

 

Xpress Block: What was the most notable change in the business in 2014? And what will that mean for 2015?

 

Mail Block: Listener Questions & Comments

Question from Neil Joyce - Hello Option Block crew. It is that time of year. I have some stocks I want to take gains in for 2014, but I do not want to sit on the sidelines for the mandatory 30 days before I get back in. What if I buy a one-month call to cover the wash sale period, then buy the stock again on day 31? Is that legit from an IRS perspective, or does buying the call effectively make the stock trade a wash sale? Great show! Look forward to more fun in the New Year. Question from Joseph G: ‏@Options Gamma? Are them those rays that turned Dr. Bruce Banner into the Hulk? lol...Seriously - can you sum up what I need to be concerned about with gamma when selling weekly put options? Mostly OTM with 4-7 days to expiration. Question from Mark Brant:  @Options AAPL front-week trend trade: Near Mon. close buy the C/P reflecting the day's direction, and TP near Fri. close. +ev over a year.

 

Around the Block: Employment numbers out Friday.

Option Block 398: Getting Burned By Deltas

Jan 7, 2015 53:56

Description:

Option Block 398: Getting Burned By Deltas

Trading Block: A selloff of the market today. Facebook options turning bearish on 2015 after 195% rally. Crude oil falls below $50 a barrel for the first time in 5 1/2 years. OCC announces cleared contract volume up 4% in 2014 and a record year for cleared futures volume.

 

Odd Block: Calls trade in iShares MSCI Italy Index (EWI), opening call buyers in Lifelock Inc. (LOCK), and puts roll in Lumber Liquidators Holdings (LL)

 

Strategy Block: Mike Tosaw discusses his current strategies with the S&P 500 and SPY.

 

 

 

Around the Block: What can we expect for 2015?

Option Block 397: 2014 Year in Review

Dec 31, 2014 01:03:15

Description:

Option Block 397: 2014 Year in Review

Trading Block: Looking Back at 2014

The crash in the price of oil. The potential for Apple to move. GDP growth at 5% in the US. The 10-year trading about 100 basis points below expectations. Changes in portfolio margin. VIX becoming more and more mainstream. The Ukrainian crisis of Q1/Q2. The October volatility. Continuing consolidation in the brokerage community. How about the speed of the VIX spikes?   Despite "low" VIX options, volume still strong in 2014.

Around The Block: What strategies should work well in 2015 depending on market conditions? What to keep in mind for 2015?

Option Block 396: The Most Epic Strategy Block Ever

Dec 24, 2014 57:09

Description:

Option Block 396: The Most Epic Strategy Block Ever

Trading Block: A shortened holiday week, so not much is moving on the street. Upside move in Taser. Facebook and Amazon.

 

Odd Block: Calls trade in Cobalt International Energy (CIE), opening calls trade in U.S. Bancorp (USB), and calls going up in Alibaba Holding Group Ltd (BABA).

 

 

Xpress Block: Another new tool is being rolled out by OX - IRIS.

 

Strategy Block: In the spirit of the season, Uncle Mike presents The Twelve Rules of Options Trading!

 

 

Around the Block: Have a wonderful holiday week everyone!

Volatility Views 140: It All Starts with Onion Volatility

Dec 23, 2014 57:08

Description:

Volatility Views 140: It All Starts with Onion Volatility

Volatility Review: The week in vol

VIX Cash: High - 25.2, Low - 16.07. S&P: 10 day HVOL - 22, 30 day HVOL - 13, Skew Index - 126.4, at the low end of the chart for the past three months. VVIX: High - 141.22, Low - 109.4, nearly doubled over the past two weeks. VIX Options: Total 4.29m (2.97m Calls, 1.32m Puts), only one day over 1M contracts this week despite significant market movement. VXST: High - 25.47, Low - 14.06, another week of anemic volume. RVX: 227 contracts OI, still no appreciable volume. Oil: Another crazy week for oil - a pronounced selloff followed by a dramatic rally that triggered circuit breakers on ice. 2-3 month vol hovering between 38-50, depending on the product. Putin tell the world to "get ready of $40 oil". Oil slump blindsided bulls that wagered on rout ending.

Volatility Voicemail: Listener questions and comments

Question from Vic Taylor - What is the problem with OVX? USO trades a ton of options, yet OVX averages 100 contracts on a good day. I am looking for a good way to add some oil volatility to my portfolio. Since OVX is DOA, are there other dedicated oil volatility products out there that actually trade? Maybe something listed on the WTI or Brent contracts? Cool show. Love all the commodity focus you have added in recent months. Question from Jim Andrade - I know you have mentioned bullish risk reversals in CL as potential ways to play a bullish bet in crude. I have been a little slow pulling the trigger. Is the environment still favorable for this type of trade in CL? I'd consider Brent as well if that is more suitable. In case you cannot tell, I am a bit of an oil bull, but I've been waiting for the worm to turn. I think we may have finally hit that point. What about an iron fly, where I buy ATM sell 5% OTM? Would that be preferable from a volatility skew perspective? Maybe I should throw in a time value of money question also. I like it when Jared gets worked up over futures term structure and roll yield. Comment from Mark Brant - The sum of new Friday weekly SPY and VXX ATM calls is lower than each’s range, so bought both calls! 52-wk. +ev?

Option Block 395: Janet Yellen vs. Farrah Fawcett

Dec 20, 2014 56:05

Description:

Option Block 395: Janet Yellen vs. Farrah Fawcett

Trading Block: A very aggressive day on the street. The market is off to the races - up nearly 2% in the session today. Brent triggers a circuit breaker - to the upside? U.S. stocks lead global equities rally on Fed rate policy.

Odd Block: Upside calls trade in ProShares Ultra DJ-UBS Crude Oil (UCO), puts trade in Mylan Inc (MYL), calls trade in Quicksilver Inc. (ZQK), and puts trade in Noble Corp. (NE)

 

Xpress Block: A review of some of the milestones at OX this year. Also, this is the time to start thinking about taxes.

 

Mail Block: Listener questions and comments

Question from Evatar - I would like to know if a surprise rate increase by the Fed in the near term would make rho a more useful or necessary greek going forward? Question from Jack - Hi guys. I had 17 BLMN Jan 2015 $20 call contracts. BLMN was (as of 12/17/2014 during the final trading hour) trading in a range between $23.44 and $23.54. The spread on the calls was $3.00-$3.60. It had been $3.00-$3.80, but my order to sell at $3.60 moved the ask, but then sat there doing nothing for almost a half hour. This is my question. Even with BLMN in the $23.52-$23.54 area, I could not sell out of these calls at $3.60, with over a month left to expiration. That is unusual in my experience. Is it just that options on this stock have a crazy low volume? Note: at about 15:50, BLMN jumped to $23.64 and my sell order filled before I could cancel and re-enter it at a higher price. I am still surprised that there was no apparent real, sellable time value left in these calls. Tweet from @MarkBrant1KM - Committed to absorbing the entire archive on the app, learning a lot! Thx! Question from Ricky - I would like to know about trading on index with option.

 

 

Around the Block: Will the market finally slow down and the VIX back off? Or, will there be a lot of activity in volatility? The all-stars discuss.

Option Block 394: Oil Speculators Get Burned

Dec 17, 2014 01:01:53

Description:

Option Block 394: Oil Speculators Get Burned

Trading Block: Oil and oil related issues are still dominating trading - crude taking it on the chin. Brent and WTI hovering at crazy ranges. Most recent CFTC data shows increased net long positions. VIX, VXST and VVIX

 

 

Odd Block: Golar LNG Limited (GLNG), AGCO Corporation (AGCO), and Neptune Technologies & Bioressources-Ord (NEPT)

 

Xpress Block: A look at one of the coolest tools OX offers - The Walk Limit.

 

Mail Block: Listener questions and comments.

Question from Josh B - What is your favorite product to use for an options play on oil?

Question from Elian04 - I think we got a bounce coming in crude back to the 75 handle in the next month or two. Best bets?

 

 

Around the Block: Earnings this week: Blackberry and Nike. Fed coming up this week. 

Option Block 393: Oil, LULU, Swaps, and More

Dec 13, 2014 01:02:08

Description:

Option Block 393: Oil, LULU, Swaps, and More

Trading Block: A mild day on the street. Swap Talk: Why are people fighting over Dodd-Frank and derivatives? Traders hedge oil ETF while energy stocks lure buyers. U.S. oil prices drop below $60

 

 

Odd Block: Bullish calls trade in Dex Media Inc., synthetic covered calls trade in Sandridge Energy (SD), and looking for a rebound in Whiting Petroleum Corp (WLL)

 

Xpress Block: Lululemon earnings and futures volume.

 

Mail Block: Question from Nico Bellic - There are many options exchanges in the U.S. all trading the same products. How does this affect the way options trade in the U.S.? Is this more of a problem or a benefit to options traders? Anything I need to be aware of there?

 

 

Around the Block: OptionsXpress Workshop - Boca Raton - 12/13/2014

Option Block 392: The Great Broken Wing Butterfly Debate

Dec 6, 2014 58:51

Description:

Option Block 392: The Great Broken Wing Butterfly Debate

Trading Block: A mild day on the street. Oil futures slide on Saudi price cut to U.S. VIX shunned as few bumps seen for S&P 500 at years end.

 

 

Odd Block: Call rolls in Opko Health Inc. (OPK), calls trade in Avago Technologies (AVGO), and calls trade in Adobe Systems Incorporated (ADBE).

 

Xpress Block: Insight into oil and gas. The Xpresso newsletter.

Mail Block: Listener questions and comments

 

Question from Anthony Fields - I was just reading through a book (I will not name them here to give them a free plug) that blamed the crash in 2008 on derivatives. What is your take on stuff like that? Drive you crazy or is there some truth? Question from Milano Fan - Hello to all members of the all-star panel including but not limited to uncle mike, the viceroy, the rock lobster, the greasy meatball and the mighty host himself. I am working my way through the back catalog of episodes. I am somewhere around episode 250. I have a lengthy commute and probably a few flights a week so I should burn through the rest in a couple of months. I have heard a number of panelists mention a strategy called a broken wing butterfly on multiple episodes. I am a little confused about this. What exactly is it? Is there a standard construction for this type of strategy or is it more of a number of similar strategies being lumped under the broken wing umbrella? Hope you guys can answer this. It would be hilarious to hear my letter read on the mail block. Last - I am planning a trip to Chicago early next year. Which pizza place should I hit? I know you guys treat pizza like religion in Chicago. Happy trading. 

Option Block 391: Crude Oil Madness

Dec 3, 2014 01:03:13

Description:

Option Block 391: Crude Oil Madness

Trading Block: A bloodbath in the tech and commodities sectors. Mini Apple crash catches the market off-guard. Energy and oil had their own crash on Friday. The Options Industry Council (OIC) announced today that 294,770,356 options contracts traded in November, down 6.26 percent compared to last November.

 

 

Odd Block: Puts trade in Marathon Oil Corp. (MRO), calls trade in Bristol-Myers Squibb Co (BMY), and call ratios trade in Barnes and Noble Inc (BKS)

 

Xpress Block: Energy alternatives and futures options

Strategy Block: Tosaw discusses diagonal risk reversals

 

 

 

Around the Block: Keeping an eye on crude and Apple

Option Block 390: Squeezing Out the Vol

Nov 26, 2014 48:09

Description:

Option Block 390: Squeezing Out the Vol

Trading Block: Short holiday week - When might the market come out? Answer: Monday! Implied Vol in the basement. VIX crushed. 

Odd Block: Calls trade in TIVO Inc. (TIVO), size calls trade in Demand Media Inc (DMD), and calls trade in Tiffany and Co. (TIF)

Xpress Block: With the Viceroy out with the flu, we will play the Trading Patterns guessing game. 

Strategy Block: Uncle Mike Tosaw discusses hedging using futures. 

 

Around the Block:Only Option Block of this week.

Option Block 389: Fly Adjustments and Dividends

Nov 22, 2014 01:01:50

Description:

Option Block 389: Fly Adjustments and Dividends

Trading Block: A mild day on the street. Best Buy profit beats estimates as costs fall. Fresh SEC crackdown on ‘flash crashes.’ Correlation gauge for S&P 500 falls at fastest rate ever.

 

 

Odd Block: Upside call buyers in Axiall Corp. (AXLL), put roll in Stillwater Mining Company (SWC), and calls roll in Huntsman Corp (HUN)

 

Xpress Block: Behind the scenes at Schwab featuring the roll ticket.

 

Mail Block: Listener questions and comments

Question from Faye Cuzername - Thanks for the feedback on my Goldman trades by the way. It worked ok but I think I understand what I should have done. Got a new one for you. Bought an 11/7 weekly SPX fly 2010/2030/2050 for 6.80 on 11/5. The fly did not really move in value until Friday, even though SPX was slowly moving to short strike. Trade did everything I wanted but I thought I would be able to capture more profit on Thursday. What did I miss or am I just being greedy?

Question from Cuda6 - What is an easy way to spot an upcoming dividend using options? Thanks.

 

 

Around the Block: Presidential speech on immigration tonight. Crude and the 10-year.

Option Block 388: Japanese Volatility

Nov 19, 2014 55:05

Description:

Option Block 388: Japanese Volatility

Trading Block: U.S. stocks open lower as Japanese recession weighs. American markets poised for a pullback after four straight weeks of gains. Japan shocks as economy slips into recession. Cracks widen at OPEC as oil prices tumble.

 

 

Odd Block: Size combo in Standard and Poor’s 500 Index (SPX), puts trade in iShares MSCI Japan (EWJ), call traders in Buckeye Partners, LP (BPL)

 

Xpress Block: Today was stock pickers day. OX named one of the top 100 places to work by the Chicago Tribune.

 

Strategy Block: Uncle Mike talks about the importance of doing stuff, BUT also the importance of not doing stuff

 

 

Around the Block: Keeping an eye on the unease in Japan, especially with regard to forex, the Yen and the Euro in particular, and debt instruments. VIX indicates a lot of concern in the market. Will OPEC hold the 70-level? Premium sellers aren’t there right now.

Option Block 387: Crude Oil Put Palooza

Nov 15, 2014 56:51

Description:

Option Block 387: Crude Oil Put Palooza

Trading Block: Gold struggles to find buyers in third quarter. Lower oil prices give a lift to the American economy. Buffett to trade P&G stock to buy Duracell.

 

 

Odd Block: Calls trade in Cyberark Software LTD (CYBR), calls trade in Demand Media Inc. (DMD), call ratios trade in Charter Communications, Inc. (CHTR)

 

Xpress Block: Amazon and Apple hit near-term highs.

 

Mail Block: Listener questions and comments

Question from DJSpin - What is your best play for a Santa Claus rally in SPY? Question from Eliac - Which OTM call strike performs the best when the underlying rallies?

 

 

Around the Block: Looking at crude and the 10-year. What will the bottom be in crude? More all-time highs in AAPL. Will it be a happy Christmas for holders of AAPL?

Option Block 386: Massive GLD Adjustment Breakdown

Nov 12, 2014 59:39

Description:

Option Block 386: Massive GLD Adjustment Breakdown

Trading Block: U.S. stocks move higher again. Twitter shares could move 5 percent in either direction by Friday. BABA soars in China ahead of "Singles Day"

 

Odd Block: Large buy writes go up in Wal-Mart Stores (WMT), call buyers in Lions Gate Entertainment (LGF), and call sweeps in Hovnanian Enterprises, Inc. (HOV).

 

Xpress Block: Alex discusses preparing for tax season

 

Strategy Block: Uncle Mike Tosaw and GLD

 

Around the Block: CSCO earnings 11/12 - after. Schwab to host live interactive trader education day on 11/13. 

 

Option Block 385: Theta Decay

Nov 8, 2014 01:05:25

Description:

Option Block 385: Theta Decay

Trading Block: Business welcomes midterm GOP takeover, what can the market hope for from the GOP congress? U.S. stocks mixed as investors’ eye oil prices. Euro falls to two-year low after Draghi signals more ECB action. Tesla shares rallying after earnings.

 

 

Odd Block: Giant call traders in SPDR S&P Oil and Gas Explorers (XOP), puts trade in Geron Corp. (GERN), and large calls trade in Education Management Corp (EDMC)

 

Xpress Block: Alex discusses the methodology behind premium harvesting and the IdeaHub.

 

Mail Block: Listener questions and comments
Question from Mukund Ambarge - Hi Team, I had a question on theta decay. I understand that delta is in constant flux with every tick move in stock, the delta/gamma changes. IV is in constant flux with buying and selling of options and volume etc. So Vega changes with option transactions. But theta decay is the only one which is always in a steady pace i.e. it’s not like it will decay quickly today and slowly tomorrow. The question is, when the theta decay is really adjusted in the prices of options. Do the theta decay get adjusted at every tick move - or every hour? If it is adjusted daily. Then when is the theta decay taken out of options. Early morning before start of trading? Or late in the day like last few minutes that whole days theta is taken out? Also I do not know when is weekend theta taken out of prices? Friday early morning or Friday ending or middle of the day? Basically when does market maker run the prices with the model and set the prices? Only once before trading starts or does he keep adjusting every minute/hour/tick based on demand/supply?

 

 

Around the Block: Where’s OX this week? Option Pit is hosting “Using Options to Trade Direction.”

Option Block 384: BABA Preview and Ratio Spread Breakdown

Nov 5, 2014 59:50

Description:

Option Block 384: BABA Preview and Ratio Spread Breakdown

Trading Block: A mild day on the street. The bloodbath in crude continues - closing down on the day. Alibaba now worth more than Wal-Mart. Apple iWatch to be delayed - not affecting AAPL on the day.

 

 

Odd Block: Calls trade in CBS Corp. (CBS), puts trade in Gerdau SA (GGB), and giant call buyer in Autodesk (ADSK).

 

Xpress Block: Amazon, declining oil and other conversation topics from OX social.

 

Strategy Block: Uncle Mike Tosaw discusses the ratio spread strategy in combination with stock.

 

 

Around the Block: Non-Farms on Friday. BABA before the bell. ATVI - 11/4, DIS - 11/6 after, PCLN - 11/4 before, TSLA - 11/5 after.

Option Block 383: The Crazy VIX

Nov 1, 2014 56:47

Description:

Option Block 383: The Crazy VIX

Trading Block: Starbucks and LinkedIn earnings after the bell. SEC warned before about early release weak spot. U.S. stocks fall amid GDP, jobless data; Visa boosts Dow.

Odd Block: Calls trade in Generac Holdings Inc. (GNRC), size buy writes go up in Itau Unibanco Holdings Inc. (ITUB), and call selling in SPDR S&P 500 ETF Trust (SPY)

Xpress Block: Now introducing a light version of premium harvesting for Schwab mobile

 

Around the Block: Loads of earnings on the horizon. CBOE tomorrow before the bell. Tesla 11/5.

Option Block 382: TWTR Drops and the Viceroy Returns

Oct 29, 2014 01:02:28

Description:

Option Block 382: TWTR Drops and the Viceroy Returns

Trading Block: A mild back on the street today. The return of the Viceroy! Twitter options pricing in big stock move - earnings after the bell.

Odd Block: Combos trade in Gentherm Inc. (THRM), put spreads trade in Altisource Portfolio Solutions (ASPS), and calls trade in Alaska Air Group, Inc. (ALK)

Xpress Block: Alex is back!!! Three- and four-leg spread trades are now available on the OX trading platform

 

Strategy Block: Uncle Mike Tosaw discusses tweaking diagonal spreads

Mail Block: Listener questions and comments

Question from Richard D: Hey Options Insider Team! I cannot seem to figure out how to post comments under the individual shows, so I will use this route. Below I have 3 questions that hopefully you can read on Volatility Views or Option Block. I am wondering what the key reports are that affect the Agricultural future options (corn, soy, wheat . . .) and where I can get more info and track these reports? Also, do options on these ags typically behave the same way equity options behave leading up an earnings report? Finally, what are the most liquid futures options besides gold, silver, and oil? I do not typically listen to the Futures Roundtable because the episodes I have listened to are too deep for my level of knowledge. Thank you for all of your great work! The network is a fantastic resource.

 

Around the Block: Earnings tomorrow FB and EA.

Option Block 381: AMZN Sinks while MSFT Soars

Oct 25, 2014 01:02:19

Description:

Option Block 381: AMZN Sinks while MSFT Soars

Trading Block: A mild day on the street.  Stocks rally after 3M, Caterpillar profits beat estimates. Exclusive: U.S. stock options markets agree to need for trading halts on big moves. Earnings Report.

 

Odd Block: Puts trade Cisco Systems, Inc. (CSCO), calls trade in ZIOPHARM Oncology Inc. (ZIOP), and buy-write trades in SPDR S&P Metals and Mining ETF (XME)

 

Xpress Block: It’s time once again for the Trading Patterns guessing game!

 

Mail Block: Listener Questions and Comments

Question from George Orsos - Dear Sir or Madam, I would like to ask you to inform me about the cash account. I heard that a trader, who has cash account, can trade unlimited number of day trade even if his or her fund is bellow $25 000. Is it correct? I look forward to your response. Question from Tony - Mark, love the show. I was lucky enough to have a fairly significant weekly put spread position in DIA this week (long puts at 166-167 and short at 161-162.5). I was making good money on Wednesday and ran into a problem. The bid ask spread on my long puts were so wide, I could not close out, roll or adjust the trade. I thought about buying futures contracts to hedge my delta risk and suck out the theta. Is there any other strategy to adjust or hedge a successful trade without getting haircut on the executions? Should I just calculate the extrinsic value add a spread and put in a limit order for the long leg? Is it always harder to close out a spread trade in a volatile market...i.e. if i want to close a spread trade does one person have to want to enter the same trade? Or can the trade go to two counter parties?

 

 

Around the Block: More earnings around the corner. 

Option Block 380: Apple Bores Us to Tears

Oct 22, 2014 01:00:45

Description:

Option Block 380: Apple Bores Us to Tears

Trading Block: Apple earnings rundown: weekly straddle at approx. $4.40 going into earnings. Upside in the stealth Apple: CMG.

 

Odd Block: Buy write trades in Digital Realty Trust, Inc.  (DLR), calls trade in Yahoo! Inc. (YHOO), and combos trade in iShares MSCI Brazil Index (EWZ).

 

Strategy Block: Uncle Mike Tosaw discusses the benefits of long premium

 

 

Xpress Block: It’s time once again for the Trading Patterns guessing game.

 

Around the Block: Watching the grass grow in Apple. Plenty of other earnings on the horizon.

 

 

Option Block 379: Explosion of VIX Stupidity

Oct 18, 2014 01:01:14

Description:

Option Block 379: Explosion of VIX Stupidity

Trading Block: Rocktober in full effect - hot on the heels of the madness yesterday, we saw another day with record swings and volume. Can nothing derail the bulls? NFLX earnings apocalypse? HBO Go spooking people?

Odd Block: Combo unwind in iShares iBoxx $ High Yield ETF (HYG), puts close in Global X FTSE Greece 20 ETF (GREK), and collar closing in Yingli Green Energy Holding (YGE)

 

Xpress Block: With the Viceroy still out, we will play the Trading Patterns Guessing Game in his absence.

Mail Block: Listener questions and comments

Question from Ajax11 - What is your take on the big VIX pop yesterday? Over 30 a bit overdone? Time to short some VIX here? Maybe time for a new term - Ebola premium?  Question from Ian Taylor - We always hear about buying VIX calls or verticals during big spikes. How come no one ever talks about selling VIX puts or put spreads instead? Should they not also perform well under that situation? Question from Fargo Fan - Question for Uncle Mike: Where does he stand on his beloved Apple now that it’s below the $100 strike? Any changes to position? I am thinking about potentially wheeling in starting with the Nov 90 weekly puts for $1.20 - thoughts?

 

 

Around the Block: Can VIX close at a low vol for the day? Google earnings after the bell. ‘Tis the season…earnings season. AAPL earnings coming up on Monday.

Option Block 378: Market Apocalypse Redux

Oct 11, 2014 58:47

Description:

Option Block 378: Market Apocalypse Redux

Trading Block: A crazy time in the markets today - the biggest rally of the year, sparked by the Fed minutes, followed by one of the worst down days. VIX Cash back up over 19. Icahn - Apple trading at half value.

Odd Block: Put spreads trade in AECOM Technology Corp (ACM), puts trade in Babcock and Wilcox Co. (BWC), and puts trade in Frontier Communications Corp. (FTR)

 

Mail Block: Listener questions and comments

Question from Larry Sanders - Hey crew minus the Viceroy. Do you ever think we will see a tradeable skew product? Something like the CBOE Skew Index but as a real product? Does that even make sense? Comment from Lawrence Silverberg - Hi Mark. Thanks for reading my bond question. I heard it today. Your discussion was very helpful. I have some research to do now. Uncle Mike and Andrews input were very helpful. Like you said advice of what not to do is also helpful. I liked the idea of far OTM puts are good bankruptcy protection. My bond portfolio is at Merrill and I think you and I know more about options than my financial planner. Thank you very much for reading my question. Larry. Question from Tim - Futures and options are both leveraged instruments. So trading an option on a future is like using leverage to trade an already leveraged instrument. How is that legal? Did they not crack down on something similar with options on levered ETFs? Are you not essentially trading a derivative of a derivative at that point? Does this not call into question the entire futures options market? Question from Jim - Dear editor, I like your programs, but have been wondering why the recordings are not made available the same day?  Listening something a day late with today’s actual market results dramatically reduces your programs relevance."

Around the Block: Will the freefall continue? What about the Fed schism? Laser focus on the S&P. Watch for volatility creep.

 

 

Option Block 377: Covering The Cost of Your Put

Oct 8, 2014 51:15

Description:

Option Block 377: Covering The Cost of Your Put

Trading Block: A mild day on the street. The dollar weakened the most in six months, dropping from a four-year high. U.S. stocks fell, with the Standard & Poor’s 500 Index retreating after touching its average price for the past 50 days, as small-cap shares resumed a selloff following a fifth weekly decline. Beginning Monday, October 6, 2014, CBOE will calculate the spot value of the CBOE Volatility Index (VIX) using S&P 500 Index (SPX) options with weekly and standard 3rd Friday expirations that more closely bracket the 30-day target timeframe. Hewlett-Packard Co. (HPQ) is splitting into two companies, using a breakup to become nimbler after failing to keep up with the shift away from the printing and personal-computing businesses it pioneered.

Odd Block: Calls trade in Earthlink Holding Corp (ELNK), call stupids trade in Spansion Inc. (CODE), and put sellers in FedEx Corp (FDX)

Strategy Block: Mike Tosaw revisits buying a longer term call option and then sell calls against it. 

Mail Block: Listener Questions and comments

Question from Allen Manning, Las Vegas - Hello everyone, I just started listening to the podcast, and I'm really enjoying it!  I have a question about a strategy you’ve discussed in the past. As a covered call alternative, I was interested in possibly buying a LEAP with a 1 or 2 year expiration and selling monthly calls against it.  When I looked up a few stocks and ran some preliminary numbers, I noticed that the cost to purchase a deep in the money LEAP (about 80 Delta) option was usually higher than the total money I would make selling monthly calls for the duration of the LEAPS.

What I did to get these rough numbers was to take the money earned from selling the initial 1-month call (after commission cost) and multiplying it by 12 or 24.  I'm assuming one or more of these possibilities:

1. The method I used to get these figures is wrong, even as a rough estimate.

2. This strategy will only work with certain stocks/underlying that have optimal greek numbers.

3. This method only works when assuming the underlying LEAP also appreciates in value to offset its own cost.

4. Commission costs make this strategy less successful.

Any information you can provide about this strategy is greatly appreciated. Thank you, and keep up the good work on a great program!

 

Around the Block: What is going to happen in Hong Kong?

Option Block 376: Rebar and Rapeseed - the Stealth Titans

Oct 4, 2014 52:28

Description:

Option Block 376: Rebar and Rapeseed - the Stealth Titans

Trading Block: Another selloff - pulling ever farther away from the 2000 level. VIX Cash moving into the high teens. OCC announced today that total cleared contract volume in September reached 371,034,038 contracts. It’s time for the global futures and options guessing game!

 

Odd Block: Calls trade in RF Micro Devices (RFMD), puts roll in SPDR S&P Oil and Gas Exploration ETF (XOP), and calls roll down in Toll Brothers Inc. (TOL)

 

Mail Block: Listener questions and comments

Question from DCruz - Hello All-Stars. You said on the show last week that you guys never exercise you long options except for a few very rare occasions. I would imagine that is the same for most options traders. That make me wonder whether they should just make all options European. Does that not more accurately reflect the reality of the market? And can you ask Tosaw if he can share his tale of pain with Cisco - it might be a good learning experience for the rest of us. Question from Anon - On several of your programs you mention that it is important to understand the VIX Cash level at a given SPX level. Can you please explain this further? As an example, what are the implications of a 12 VIX at 1800 VS a 9 VIX at 1800? Likewise, how does a 15 VIX at 1800 compare?  

 

 

Around The Block: Non-farms coming out tomorrow - could be a resounding "meh."

Option Block 375: How to Hedge Your 401K

Oct 1, 2014 56:56

Description:

Option Block 375: How to Hedge Your 401K

Trading Block: Alibaba options active in U.S. trading debut. OCC and U.S. options exchanges announce new risk control standards to strengthen industry protections.

ISE Holdings files for third exchange license to launch ISE Mercury.

 

Odd Block: Fun and unusual trading activity in TTPH, MX, and TAP.

 

Strategy Block: Uncle Mike discusses how to hedge a 401k or other retirement accounts?

 

 

Around the Block: Hong Kong: how much can it impact the market?

Option Block 374: When To Exercise An Option...Never

Sep 27, 2014 58:39

Description:

Option Block 374: When To Exercise An Option...Never

Trading Block: An aggressive selloff in the market today. VIX up 3 handles - about 22%. Apple off 3%. Nike, the other big player in the market today - up about $4. 

Odd Block: Calls and puts trade in EXH- looks like a straddle seller, puts close in KO- could be a put closer but not rolling, and calls trade in PBF- existing roll for calls

Mail Block: Listener questions and comments

Question from Sinclair - What do the all stars expect for the big BABA options launch on monday? iTunes comment from Princk - Listening gives tremendous insight into options trading, strategies and trends. Great team that combines risk management, speculation and investment wisdom. Superb. Thoughtful, funny and wide ranging show for learning and understanding options trading. iTunes comment from Bajasakee - Love the show very informative, looking forward to more fresh insight every episode. iTunes comment from PuntPass Shoot - There are a lot of financial podcasts out there..not a lot of good ones though. It’s even harder to find something useful about options. The Option Block really gets it right. Just the right amount of information, banter and market insight to make it something I look forward to listening to every week. Great energy between the guys, interesting guests and useful traders of all rangers. IF you’re thinking about subscribing...stop thinking. Just do it. Question from KaiserDog -  I have a question for the "Guardians Of The Gama"......Hehe.  When do you like to exercise an option?  Is anyone a fan? Do you ever like taking the stock over "Rolling"? Thanks again! By the way, the Shows have been stellar. Keep em coming.

Around the Block: Closely watching the S&P. Will vol come down? Mike wants to sell an AAPL put spread on the bent phone pullback. Nike reports after the bell. 

Option Block 373: Talking BABA, YHOO, AAPL and more

Sep 24, 2014 58:07

Description:

Option Block 373: Talking BABA, YHOO, AAPL and more

Trading Block: A sea of red on the street today. Bad news out of China.

Apple announced opening weekend iPhone 6 sales were over 10 million. Alibaba I.P.O. underwriters increased deal size to a record-setting $25 billion. Yahoo options went bonkers on Friday.

Odd Block: Puts roll in Cliffs Natural Resources Inc. (CLF) risk reversal goes up in iShares Russell 2000 Growth Index (IWO), and call buyers in Shares of Global X Social Media Index ETF (SOCL).

 

Strategy Block: Mike Tosaw discusses ways to diversify your portfolio with non-correlated assets.

 

 

Around the Block: Vol is higher, emerging economies are growing, how stimulating was the stimulus? How will the market act into and out of the elections?

Option Block 372: Call Stupids and Bond Hedges

Sep 20, 2014 59:30

Description:

Option Block 372: Call Stupids and Bond Hedges

 

Trading Block: Alibaba IPO on Friday. Fed Meeting on Wednesday. Scots vote whether or not to stay in UK.

Odd Block: Calls trade in Energy Transfer Partners (ETP) ratio spreads in Petroleo Brasilieiro Petrobras (PBR), put buyers jump into PDL Biopharma Inc. (PDLI).

 

Mail Block: Listener questions and comments

Question from Lawrence Silverberg - Hi! “Doctor Larry” back again. Thanks for reading and answering my previous two questions / comments on the show! I’m a huge fan!  I am considering a way to insure my bond portfolio with options. Honestly I'm not too concerned with rising interest rates in the next two to three years but I understand the risk exists. Additionally, a market crash seems like a bigger risk to me. Either way I see bonds having downside risk.

Here's my thought process below: I'd love to hear your comment.

Situation: I'm about 8-10 years to retirement. I have about 80% of my savings in just below investment grade bonds. These are big companies like Goodyear, Burger King, US steel, Morgan Stanley, Levi’s, Hertz, Ford, and many more. It's a very diverse bond ladder. Average return is just under 7%. They have appreciated a great deal over the past 8-9 years too.

By rule of 72 I'm doubling my money every 10-11 years with interest. Hopefully faster with appreciation of the bonds too. The risk is if there is a period of rising rates (although I plan to hold to maturity) or a market crash like what happened in 2008.

I was considering insuring this portfolio with LEAPS in HYG. A high yield bond EFT. It appears to be the most liquid options compared to other similar bond ETFs. As for stock volume it is second to only JNK.

I can buy the Jan '16 puts ATM pretty cheap. These Leaps are trading at less than a 10% Implied Volatility. In the 2008 crash, HYG went from 105 to 65 and IV went from 10 to 22%. (NOTE: HYG TRADING $93 & JAN 2016 93 PUTS OFFERED @$9.30 - SO HAVE TO BE WILLING TO SPEND 10% OF YOUR HOLDING ON PROTECTION)

I did not want to just buy puts naked but was looking at backspreads. This way I’m selling premium to get much less short theta and I’m buying more puts to get long Vega and short delta.

The best spread I found was a Jan16 put backspread 1 by 4. Short one 85 put for each long four 70 puts.  With theoretical pricing I can put the spread on for even money and possibly a $0.10 credit. I’d close this spread when the Jan 17 leaps are listed and add 12 more months of insurance.

In summary, I have some upside risk as IV can go down to around 5% based on history but that’s the cost of insurance. When I roll to Jan17 I’d lose some money.

Questions:

How do I weight a bond portfolio to figure out how many contracts to trade?

Similarly, how do I estimate downside risk of the bonds?

Is HYG my best underlying?

Is there a different spread that’s long Vega and short delta that you’d recommend?

Would you use a diagonal instead of trading only one month? I can get a similar protection by trading a 1 by 2 diagonal. Short one Dec 90 put for each long two Jan 2016 $85 puts for around even money. I could then sell more (90 *or other strike) puts when the Dec expire. My hesitation here is that it’s harder to predict IV of two months. I think the short Dec will increase IV in a crash more than my long Jan16 and hurt performance.

 

If you read this (long) question on the air I’d really appreciate it. “Dr. Larry.”

Option Block 371: Talking TSLA, SCTY, YHOO and Alibaba

Sep 17, 2014 49:27

Description:

Option Block 371: Talking TSLA, SCTY, YHOO and Alibaba

Trading Block: NOTE: No Alex for the next six weeks. Our thoughts and prayers with him while he undergoes surgery. Alibaba IPO & Yahoo - Barron’s telling people to buy Nov 43-48 call spread to benefit from the IPO. TSLA & SCTY over 10%. A bad day for the wallet of Elon Musk.

Odd Block: Puts filled in The Market Vectors Russia ETF (RSX), puts trade in Commscope Holding Co. (COMM) - newsletter?, calls trade in Itau Unibanco Holding SA (ITUB).

Strategy Block: Ways to defend short premium when there might be a lot of movement in the market. 

Around the Block: Andrew thinks that this is the big one re: interest rates. Also looking at YHOO, Brazil, after the Fed, maybe selling some juice. Fed Wednesday: how will bonds react?

Option Block 370: Live Episode Spectacular!

Sep 12, 2014 01:20:41

Description:

Option Block 370: Live Episode Spectacular!

Trading Block:

Apple trading above $100 post iWatch/Mega - any changes to outlook/trading strategy here? CBOE Futures ExchangeSM (CFE) announced today that it plans to launch futures trading on the CBOE/CBOT 10-year U.S. Treasury Note Volatility IndexSM. 9/11 Anniversary - Bin Laden Put Options

Odd Block:

Puts spreads trade in Market Vectors Russia ETF (RSX)

Call Buyers Jump into Control4 Corp (CTRL)

Giant Butterfly Trades in Autodesk, Inc. (ADSK)

Long Term Call Options Rolling in BankAmericaCorp. (BAC)

Mail Block:

iTunes Comment from LivHK - I am a relatively new listener. However, I had to turn the show off after 5 minutes - I am here to learn about option strategies, not listen to Apple hating rhetorics. I get it you do not like Apples platform but at least show you are not ignorant of Apple products if do decide to talk about it...I would love to hear your analysis on valuation, but a baseless claim that “3 years later the stock will definitely be worth a lot less than today?” Such thoughtless comments leads me to seriously doubt the quality of the content on the main topic.

Question from Charlie - I am prepping for my series 7. What should I expect from an options perpsective? Any tips? Sorry I could not be there in Chicago as I would have loved to see the show live. But this is the next best thing. Thanks for all that you do.

Question from Tom:  First, huge fan. Second, question about the wheel-o-fun trade:  Recently assigned on a short call in a collar position.  Monday morning, I was long my protective put (a far-OTM leap), and decided to sell a weekly put that positioned me long about 25 delta.  Now, I am wondering how all this will affect my margin SMA.  From the margin perspective - is this a put spread, or is this a naked short put?  After I put this on, I realized the margin was a bit fuzzy.  Since I just rolled out of a covered call, I am obviously cash-secured, but I want to work this out before I find my foot in a bear trap.  Thanks guys!  Nice hats!

AROUND THE BLOCK

Where will we go from here?

Option Block 369: Short Puts and Ratios in AAPL

Sep 10, 2014 54:30

Description:

Option Block 369: Short Puts and Ratios in AAPL

Trading Block:

S&P glued to the 2000 handle. Go Pro very active today - Yahoo as well. TLT - blame the Viceroy.

Odd Block:

Puts trade in Valero Energy Corp. (VLO)

Calls trade in Pattern Energy Group (PEGI)

Calls trade in Apple Inc. (AAPL)

Strategy Block:

Good greed vs. Bad greed

Mail Block:

Comment from KaiserDog76 - Oh that Granny Smith tasted sour today! Lol I have to admit I ditched my calls shortly after the open and I am very, very glad I did, It got ugly for "Retail's" favorite fruit. NFLX could not even hold gains after announcing streaming rights to the new "Origins" Bat Man TV show. Yet.....Yet GPRO tacked on another $3...(clearing of the throat)..Ok.Oh, but wait! It gets better, Mobile Eye continues to make elderly and the "Peripherally" challenged excited as now whats the Market Cap? 10 Billion? An even bigger, Ok. I am interested to see how H&R Block HRB trades post earnings. Morgan Stanley looks very interesting to me as well. The Nat Gas export commodity play is looking juicy and unrealized. I had a good day so I have no reason to be surly. I just thought some of you might enjoy my commentary. Thanks for everything you do Mr. Longo. You and the fellow Rouge Scholars are the dose of sanity that this insane Market needs!. P.S.I love the new show! Reminds me of some of my favorite Old School Comics, Strange Tales..... Keep Up the Great work. I am loving all of it!

Question from Catherine - I want to set up an options trading account for my son (who is 23 years old) and I want him to learn to trade options in a risk-managed way - do not really want him to know that he can use options for taking stupid risks (he will probably figure that out on his own soon enough).  I contacted the customer services people at my broker  (Options Express) to see how an account could be set up to achieve my goals and was told that initially all he could do would be to buy puts and buy calls. Seriously?  That is exactly what I do not want him to do.  I want him to control his risks better than that and to learn to put on spreads from the git go.  Is there any way that my goal can be accomplished? - Cat

Around the Block:

Option Block Live! - This Thursday, Sept 11, 4pm Central @ Bennys Chop House (444 N Wabash) here in Chicago. 

Option Block 368: Selling Premium in a Quiet Market

Sep 6, 2014 49:14

Description:

Option Block 368: Selling Premium in a Quiet Market

Trading Block:

A mild day on the street today. BP fiasco slaughters everything oil related. Apple had a four point loss. CBOE announces weeklies on SPX

Odd Block:

Calls buyers flood into QuickSilver, Inc (ZQK)

Calls trade in JAKKS Pacific, Inc (JAKK)

Calls trade in Corning Inc. (GLW)

Mail Block:

Question from Mandel - What is a premium writer to do in this market? Any suggestions for good income trades here? 

Strategy Block:

Today, Uncle Mike Tosaw discusses the ratio spread

Around the Block:

Non-farms coming up on the horizon.

FDA approves Merck cancer drug.

Option Block 367: Talking AAPL Collars

Aug 30, 2014 59:03

Description:

Option Block 367: Talking AAPL Collars

Trading Block: A relatively quiet day on the street. GoPro and Twitter were the only two names Apple still seems to be reaching new high. How did Tosaw play it?

Odd Block: Big put seller in Wells Fargo & Co. (WFC), puts trade in 21Vianet Group Inc. (VNET), and bullish paper in EZCHIP Semiconductor LTD (EZCH).

Xpress Block: A very quiet day on the OX desk. 3 to 4 leg trade tickets on Street Smart is tentatively scheduled to release on Friday, Sept 5.

Strategy Block: What you can do as a trader if you are not getting filled on your spread? Understanding the rules of risk management.

Mail Block: Listener questions and comments

Question from Dr. Lawrence - Could you comment on a trade I did that was inspired by your talk about collars. I own apple at split adjusted $26. I bought Jan16 $80 puts for $4.50. I then sold the nov $120 calls for $1.05. I have many months to sell calls to pay for the puts. I really do not want to sell my underlying so I figure I will roll up and out if it goes up 20% in the next three months. I am content with the downside protection and will roll my long put when the Jan 17s are listed. On the upside I figure it cannot go up forever and will roll up and out as long as necessary but will try to continually sell calls to pay for my long puts. I would love to hear your opinions of my strategy. Question from Samuel - I am really enjoying your website as a trader. I read it every day. My question is, is there any scanner to show us unusual volume for options on future or FX? As we have one or two on equity, or to show you if the options been bought or sold. Thank you kindly.

Around the Block: Holiday weekend, so keep an eye on decay. Will S&P stay above 2000?

Option Block 366: The Knife Edge of Volatility

Aug 27, 2014 58:07

Description:

Option Block 366: The Knife Edge of Volatility

Trading Block: Most major indices up today on the street. Vol saw a bit of a rally as well. S&P briefly hit 2,000, but couldn't stay there.

 

Odd Block: Calls trade in Credit Suisse Group AG (CS), calls trade in H&R Block (HRB), and risk reversal trades in Lennar Corp (LEN).

 

Xpress Block: What’s new with IdeaHub? Futures side and securities side premium harvesting.

 

Mail Block: Listener questions and comments

Question from Seven - With all the talk about exposure fees and excessive customer risk, is there any talk at OX or Schwab about raising the bar for options certification? Perhaps making it harder to qualify for options level 3 or even taking a test to qualify? I know you do not want to put barriers in front of customers but is that not preferable to the alternative? Question from Jack Schwartz - On a recent episode, Alex Jacobson from OX said that the OCC would never force a taxable event in the case of a corporate action. However, I am pretty sure I have seen OCC do exactly that in all-cash corporate deals. In those scenarios do the options not essentially expire on the transaction date, and the customer is left with the resulting debit or credit in their account?

 

 

Around the Block: Keeping an eye on the 10-year. Interest rates, where will the Fed go?

Option Block 365: The Great Apple $107 Debate

Aug 23, 2014 56:33

Description:

Option Block 365: The Great Apple $107 Debate

Trading Block: A mild day on the street. Apple finally passes $100. What will Yellen say tomorrow and how will it affect the market? New study show advisors use of options increased 13% since 2011.

 

Odd Block: Calls trade in Jarden Corp. (JAH) calls trade in China Finance Online Co. (JRJC), and calls trade in Macerich Co. (MAC).

 

Xpress Block: Free pizza day at every Schwab/OX site today in celebration of the importing of the 3- and 4-leg trade ticket from OX to Schwab which is coming in Sept.

 

Strategy Block: A strategy of patience. Waiting for the right time to make a move in Apple and gold.

 

Mail Block: Goldman Fly

Question from Pat - Love the show, it's really great and even though I'm clueless (as is shown by the following). Here's one that might be good for your "could've done the trade better" segment in Options Block. The following is the list of trades that I have made around Goldman. Sorry I don't have the volatilities or any other data from the trades but hopefully you'll be able to explain the error of my ways without them. Once I made the initial trade and GS didn't rebound quickly, I was trying to offset the cost of keeping the calls since I expected that Oct was plenty of time to get back to the 175 area.

3/27 - buy 2 10/18 170-180 call spreads for $3 debit (6.42/3.42)

4/25 - closed 180 call for $1.75

4/28 - closed 180 call for $1.50

5/1 - sold 175 call for 2.75

5/5 - closed 175 call for 1.60

6/6 - sold 175 call for 2.40 (the first one worked but I think they were both actually mistakes)

7/28 - closed 175 call for 5.37 debit, closed 170 call for 8.53 credit, sold 2 180 calls for 3.16 (each), bought 185 call for 1.65

(Resulting position is 170-180-185 fly) (Now it seems really inefficient)

8/7 - closed both 180 calls for 1.88 (each), 185 call for 0.96

Order currently in to sell 2 180s and a 185 for a 3.50 credit

 

I have the order in to recreate the fly to reduce the cost of the 170 since I don't think GS will get above 180. Besides discussing what I've done and any suggestions you have, what would be a better way to implement my current view of GS given that I own the 170 call? Thanks for all the help already and the future I'm sure I'll get.

Option Block 364: Dollar General Madness Continues

Aug 20, 2014 58:43

Description:

Option Block 364: Dollar General Madness Continues

Trading Block: Rally ho on the street today! German 10-year realized vol was 100%!

The social media trio - FB, LKDN and TWTR mixed today.

 

Odd Block: Unusual options activity in DG, AMSC, EGHT, and TASR.

 

Xpress Block: Schwab tools: The 4-legged trade ticket is coming to Schwab the first-second week of September.

 

Mail Block: Question from Ted Schwartz

Hi, I'm working my way through the Options Boot Camp and Option Block, learning lots of good stuff.  I was wondering what kind of options strategies exist to hedge my 401K mutual funds gains?  Would it be practical to use protective puts on some indexes, etc. to offset my risk of fund losses? Thanks!

 

 

Around the Block: What can we expect from Yellen and the Fed?

Option Block 363: The Last Train to Pallookaville

Aug 16, 2014 59:05

Description:

Option Block 363: The Last Train to Pallookaville

Trading Block: The market rallied about half a handle. Putin talks up the street. Bonds: TLT & IEF. Berkshire A crosses $200,000 a share. Red Robin taking it on the chin today.

 

Odd Block: Some unusual activity in TSRA, NM, and NKTR

 

Xpress Block: The social networking triplets (Twitter, LinkedIn and Facebook) were all active today. Amazon surprisingly active as well.

Mail Block: Listener questions and comments

Question from Everett: Really enjoy the show, and find it incredibly useful in helping break down the complexities of more technical trades.  That said, is it possible to point to 3 key technical-focused factors that you believe to be the most important factors for consideration when trading biotech options around a catalytic event (E.g FDA marketing approval). I doubt an example is necessary, but to clarify, I don't mean examining the strength of the company’s clinical trial submissions in anticipation of an FDA decision; rather, are there 3-5 stock/options-focused factors (E.g. implied volatility, Delta, Vega, etc.) that you would recommend analyzing in anticipation of trading options around a biotech's upcoming catalytic event?  I recognize these factors might be different based on the strategy one chooses to employ, but if possible, what would say those 3-5 factors should be just generally, if I am willing to employ a diversity of strategies? Thank you in advance for your time and consideration, Everett Question from Joe: Option Block Question: Greetings.  My question deals with order fulfillment on a spread.  During the wild few days that TWTR had a few months back the IV shot through the roof, the vol skew went way out of whack, and it was possible to put on long spreads for even money or credit...but I had to leg into the spread because my broker said "I could not get filled for even money on a spread."  Which leads to my question, how are the smaller lots (I usually trade 10-50 contract lots) handled on the market with respect to their fulfillment?  Logic and the current state of technology leads be to believe that like strike prices are grouped together and sold on the market in order to obtain a better leverage when trying to obtain a sale price.  If this is not the case, how does fulfillment take place with spreads? Question from MrLami: Hello...What parameters can one use to scan for unusual options activity real-time (OR) what is the thought process behind it (I can use my intellect or practice for how I can start spotting these myself)? Is there a way to receive alerts for "Unusual Activity" section on this website?

 

 

Around the Block: Bonds. US global affairs. Ukraine and Iraq.

Option Block 362: You, Too, Can Own a Piece of History

Aug 13, 2014 58:00

Description:

Option Block 362: You, Too, Can Own a Piece of History

Trading Block: Big momentum days for PriceLine, LinkedIn and Tesla. Zynga rallies. A picture of Alex is up for sale on Ebay.

Odd Block: Diagonal puts trade in Yahoo Inc. (YHOO) ratio call spread buy - Earnings trade goes up in Fossil Group Inc. (FOSL), and calls roll in iShares Dow Jones US Home (ITB) - sell Aug buy Sep.

 

Xpress Block: Three- and four-legged trade tickets to be released early to mid-September. Premium harvesting in the IdeaHub.

 

Strategy Block: Finding your happy, comfortable spot as a trader.

 

Mail Block: Question from the OX community - Hull’s Quant ETF coming, will it change the way folks invest?

 

 

Around the Block: Some more earnings left: Cisco 8/13

Option Block 361: The Happy Bottom

Aug 9, 2014 01:00:47

Description:

Option Block 361: The Happy Bottom

Trading Block: A little bit of a down day on the street, but nothing like last week. Zynga and Groupon after the bell. ZNGA closing south of the 3 handle. VIX futures trading below the VIX cash. Grains and wheat options and the Russia embargo.

 

Odd Block: Combos trade in Flotek Industries Inc. (FTK), puts trade in Gerdau SA (GGB) wheel trade.

 

Xpress Block: LULU has been running hot, but cooled down during the day. Three-to-four leg tickets coming in September. IdeaHub adding 8 names into premium harvesting. What is we see of a Whaley product?

 

Mail Block: Listener questions and comments

Question from Reuben Brooks - A few months back, on one of your shows, I think option block, Uncle Mike from RCM was talking about some kind of special offer for individuals in the "wealth accumulation" phase. You jumped in and pointed out that we listeners would be "stupid" to not take advantage of this. So, I am trying to not be stupid. I was not able to follow up right away on that (and in fact I have fallen behind on my podcasts), but I would like to find out more. Can put me in touch with Mike? If you have any other resources for me, i would love to hear it. I am 25, an engineer, I am intrigued by active trading but a bit dubious of technical analysis, and trying to find more edge, and use options to exploit that (either long-term or short-term). Have been trading options in 1 lots to learn. Your podcasts have been a HUGE help in blasting through the steep initial learning curve. Question from Christian C Caropolo - If you buy an option on a company that ends up merging or being bought out with another. What happens to the option you own? Comment/Question from Kaiserdog76: Thanks for the Option Block update today. Missed Longo’s presence but Sebastian did a decent job. Worlds shortest Odd block, but after looking on the web page I found the "Juicy" unusual activity I crave!! That VNDA trade is intriguing. There are some heavy OTM open interest in VNDA all over the strikes and going well out into the future. I do love me some Bio-Tech!  So today I have two stories for you. One of failure and one of success. Let’s start with the failure. Back when PBYI was around $49-50ish I had bought 100 shares in small chunks. When the stock popped to $70 I thought how smart I was and sold every last share. For a decent profit. I know you are thinking well how is that failure? That 4-5 thousand dollar investment would be worth over $20,000 now, so yeah. It can be hard to sleep at night FML for real. My second tale is a much happier one. I own shares on WIN and love the dividend and super well defined uptrend the stock has been in for quite some time. I wanted leverage though. So I took the proceeds from my dividend on WIN and financed some OTM call options on WIN. Well on Tuesday when WIN announced the IRS had "Okayed" them spinning some of their assets into a REIT. WIN popped and I realized over a %1,200 percent gain that day. Now I was able to sell those calls and lock in some fantastic profit all while not selling a single share. So you win some and you lose some I guess. Thanks for everything you guys do! Love the underground radio!! Mark- Kudos again for covering Barclay's and the HFT shakedown that has been going on. It is the biggest thing no one seems to be talking about. Please keep it coming! OX Question - Maker / Taker goes away in the UK. Are we next?

 

 

Around the Block: What will the US do, and how will it affect the markets?

Option Block 360: Return of the Voice

Aug 6, 2014 52:00

Description:

Option Block 360: Return of the Voice

Trading Block: Some of the Thursday selloff coming back into the market. Where could the VIX go in the next few weeks? VXST trading below the VIX cash.

 

Odd Block: Ratio roll calls in Select Sector SPDR Financials (XLF), a ratio time "Tosaw Stupid" in SM Energy Co. (SM), size ITM call buyer with stock in AmerisourceBergen Corp. (ABC), and closing call roll in NQ Mobile (NQ).

 

Xpress Block: A little technical hiccup with Idea Hub. Amazon got a lot of attention today.

 

Strategy Block: Doing stuff - put spreads, managing risk and staying bullish.

 

 

Around the Block: Earnings still left: Activision, Groupon, and Disney. All on 8/5.

Option Block 359: Thursday, Bloody Thursday

Aug 2, 2014 56:29

Description:

Option Block 359: Thursday, Bloody Thursday

Trading Block: A bloody day on the street. A default, a bankruptcy, and bad Fed news. Massive FLEX trades went up today. Professor Whaley and the VIX term structure

 

 

Odd Block: Revisiting a position in iShares MSCI Taiwan Index (EWT)

 

Xpress Block: Alex discusses about the changing metrics in portfolio margining and the risk tools.

 

Strategy Block: Uncle Mike highlights his strategy using the Long SPY Long Oct 190 Put

 

Mail Block: Listener questions and comments.

Question from Steven, San Diego, CA: Listing to the July 24th show on the 25th. So, with the benefit of hindsight, I can you see the majority of the activity in AMZN being discussed was pretty much completely wrong.  It was down, not up, and way past the expected move. So that brings me to the question. Is there any study or statistical evidence that shows that the unusual activity should be followed? Or should be faded? Really think the retail crowd are chasers, which works until it doesn't. The trend is your friend? Bah-humbug! It makes for interesting press, but is it really actionable? Rather than glorifying, would your listeners be better served to be cautioned on this topic rather than enticed? Love the show. Sometimes customer of the Pit and RCM because of the show.

 

Around the Block: Non-farm payrolls: could it possibly turn around the market?

 

 

Option Block 357: AMZN Call Buyers Get Crushed

Jul 26, 2014 57:31

Description:

Option Block 357: AMZN Call Buyers Get Crushed

Trading Block: Markets mostly unchanged in modest volume. Apple posts decent numbers but disappoints overall. Amazon earnings after the bell. OX clients still buying far OTM calls? Facebook rallies $4.50 post earnings and trades over 1m contracts. Ford announced before open. Not much of an event.

Odd Block: Call buyers trade in Wisconsin Energy Corp (WEC), spreads go up in iShares Dow Jones US Homebuilders Index ETF (ITB), call buyers trade in Navios Maritime Holdings Inc (NM), and block prints in WhiteWave Foods Co. (WWAV)

Xpress Block: Alex showcases "The Dragon,” an OX tool that allows you to find unusual activity. 

Mail Block: Listener questions, comments, and suggestions

Question from Sea Biscuit: How do the market makers figure into open interest? Do they essentially double all of the OI because they are taking the other sides of every trade? Should i divide all OI numbers by two to get the real activity or is that already done for me? Question from Avon Man: Just to clarify on the conversation from last week, Alex said OI was broken down from each exchange and then netted with market maker activity. So if customer A buys 10 calls on Arca and then customer b sells 10 of those same calls on Arca, both opening, that would be net 0 open interest because they are on the same exchange? But if customer B sells those same calls on a different exchange, let's say NASDAQ, then it would be net 20 calls open on the strike because it’s two different exchanges? Is that right? Question from Alex C: Facebook looking strong post earnings. What option trades do you guys like out there right now, if any? Thanks for the shows. Just checked out Advisors Option for the first time as well. Very timely as I am in the process of picking an advisor.

Around the Block: Earnings-palooza continues

Option Block 356: CME and NFLX Earnings Rundown

Jul 23, 2014 58:23

Description:

Option Block 356: CME and NFLX Earnings Rundown

Trading Block: A relatively quiet day on the street, after a crazy week. Earnings so far: NFLX after the close, CME (the stealth Apple) after the close. Positioning for Apple tomorrow.

Odd Block: Call buyers trade in Steel Dynamics (STLD), call spreads buyers trade in Orexigen Therapeutics, Inc. (OREX), calls buyer trade in Crocs, Inc. (CROX), call spreads, rolls selling Dec, buying March trade in CytRx Corp. (CYTR).

 

Xpress Block: Herbalife taking a pounding. News on The Walk Limit tool.

 

Strategy Block: An expiration day lesson from Uncle Mike Tosaw and how to avoid unnecessary weekend risk.

 

 

Around the Block: A quick earnings review in CME, NFLX. MSFT and APPL tomorrow. On 7/24: AMZN, F, GM.

Option Block 355: Bleeding Out Into the Pillow

Jul 19, 2014 01:04:57

Description:

Option Block 355: Bleeding Out Into the Pillow

The Trading Block: A bit of a bloodbath on the street. Dire world news out of Ukraine and Israel/Palestine. Yellen's comments reverberating around the market. A 33% spike in the VIX. Microsoft slashing jobs. U.S. House passes spending bill with Dodd-Frank changes. 

The Odd Block: Opening put buy in Currency Shares Canadian Dollar ETF (FXC), short puts with stock trade in Gerdau SA (GGB), big block of puts traders in Janus Capital Group Inc. (JNS), and buying puts in Entergy Corp. (ETR)

Mail Block: Questions and comments from you, our listeners

Comment from Jake -  I just wanted to let you guys know that I can’t go a week without getting my fix of lobsters, bubble pipes, fancy hats and of course Mark’s baritone pipes. Keep the shows coming. It makes my week fly by. Question from Series 7 - Hey Mark and his all-stars. I know you guys have touched on a stock being hard to borrow impacting the pricing of the options. But I’m still confused. Can you break it down for me please? Thanks. I know I’ve come to the right place. Question from Connor Mac - If I own a stock and I write an in-the-money call against it is that the same thing as selling the stock? If so what price am I selling the stock for? The strike price? If not am I increasing my probability of my stock being called away before expiration by selling an in-the-money call?

Around the Block: Thursday earnings: Morgan Stanley, Google and IBM.  

Option Block 354: When to Close Out a Spread

Jul 16, 2014 54:27

Description:

Option Block 354:  When to Close Out a Spread

Trading Block: VIX and VIX cash. LULU taking it on the chin. It’s time for the Trading Patterns Guessing Game once again!

 

Odd Block: Calls roll in Danaher Corp (DHR), calls roll in Wisconsin Energy Corp (WEC) - Buy Jul, Sell Jan., closing collar in AGCO Corp (AGCO) - Buy call/sell put, and ratio call spread unwind in Beazer Homes USA, Inc (BZH) - Sell 1, Buy 2.

 

Xpress Block: Alex discusses the development of migrating the OX tools to Schwab, including the 3 and 4-legged trade ticket, due to Schwab Mobile and Street Smart Edge by September.

 

Mail Block: Listener questions and comments.

Question from Neal Augustin - Like the discussion on the recent show about getting free gamma going into earnings. It makes sense since the contracts should experience minimum decay. But do you not have to use a contract that expires after earnings, preferably the earnings week, in order to get that bump? If you use the contract that expires prior to earnings, it should decay like normal, correct?

Question from Trader64 - Spread decay question: Mark said in the mail block in response to a listener question about spread pricing, that the at-the-money and in-the-money options would decay at different rates to make the spread widen. Since this takes a substantial amount of time, should I always count on only capturing a portion of the maximum profit in each of my spreads? If so, what percentage is reasonable? Thanks for the show Mr. Options Voice!

 

Around the Block: More earnings on tap for this week. Citigroup - 7/14. JP Morgan Chase and Goldman Sachs - 7/15. Bank of America - 7/16. Morgan Stanley - 7/17.

Option Block 353: Crazy Combos and the Great Open Interest Debate

Jul 12, 2014 56:28

Description:

Option Block 353: Crazy Combos and the Great Open Interest Debate

Trading Block:  A volatile day on the street - S&P got as low as 1952. VIX cash ticking up nearly one handle. Gold a big mover today - to the delight of Uncle Mike Tosaw. It’s time for the Trading Patterns guessing game again - this time with GLD!  Lumber Liquidators (LL) gets crushed, down over 20% today. Options volume already 10x ADV on new that they are cutting 2014 earnings outlook. Sprecher calls for market-wide purge for order types. Chicago Fed joins the HFT conversation calling for curbs. 

Odd Block: Calls roll in Thermo Fisher Scientific (TMO), closing combos trade in CBS Outdoor Americas Inc. (CBSO), call buyers trade in Goodyear Tire and Rubber Co. (GT), dividend trade calls trade in Freeport McMoRan Copper (FCX)

Xpress Block: A reminder at IdeaHub for futures is out. Please be aware that firms are trying to rein in exposure fees.

Mail Block: Listener questions and comments

Question from Nico Belle: Am I correct in assuming that open interest refers to the number of contracts that are available for exercise on a particular strike and not just the trading volume seen on the strike? Question from Rick: What does the term spot refer to? Also how is change calculated? These terms are used with unusual activity. Thank you, Rick Question from T Jon: Hey all stars - great show Mark and the gang. Please say hi to Uncle Mike, the rock lobster and the viceroy for me. I enjoy all of their segments including the strategy block. On a recent episode Uncle Mike referred to selling put spreads to help finance the cost of a longer term put. Can he explain his methodology for this strategy - if he buys a six month ATM put is he also selling ATM put spreads against it for a straight up calendar? Or is he selling OTM put spreads and going for diagonals? What frequency is he doing this on - weekly? Monthly? Does he ever combine the short put (spreads) with a short covered call essentially turning it into a long term put vs a short term strangle (plus)? Question for viceroy as well - what is your favorite question you’ve ever been asked at one of your seminars? Mark - thanks again for this great show. Your network will always have a home on my iPhone.

Around the Block: On Thursday: weekly jobless claims, May wholesale inventories as well as Fed talk: Stanley Fischer, Vice Chair of the Fed Reserve, gives his first speech (financial reform in Cambridge, MA) and KC Fed President Esther George (economy and monetary policy in Oklahoma). Problems in Portugal: parent of Portuguese banks delayed payments on some short-term debt.

 

Option Block 352: Hot GoPro Action

Jul 9, 2014 58:35

Description:

Option Block 352: Hot GoPro Action

Trading Block: A mild selloff ahead of earnings. The newcomer GoPro was very active today, as well as everyone’s favorite fruit company, Apple.

 

Odd Block: Call buyers trade in URS Corp. (URS), puts buyers with stock trade in King Digital Entertainment (KING), call buyers trade in Zions Bancorp (ZION), and put spread buyers trade in iShares MSCI Germany Index (EWG).

 

Xpress Block: A lot of speculation in fixed income.

 

Strategy Block: Tosaw discusses how not trading can also be an option when you can get what you want.

 

Mail Block: Listener Question
Question from T. Simpson: Hey all-star panel (viceroy, meatball, lobster, uncle and the voice)! I’m sitting on some gains in ford and would like to protect it. I’m looking at the December 17 put (currently trading for 82 cents). I know you guys have said aim for about 2% of your portfolio for protection. But my math shows this to be about 5% of my portfolio for decent near-ATM protection. What are some ways that i can do stuff to make this protection more affordable? I very much enjoy the show and i am wearing a fancy hat as i write this letter. – Tom

 

 

Around the Block: ALCO kicks off the earnings madness again tomorrow. 

Option Block 351: Dollar General Insider Loses Millions

Jul 2, 2014 56:42

Description:

Option Block 351: Dollar General Insider Loses Millions

Trading Block: A quiet day on the street, given the shortened trading week. A stealth rally in Gold. Traders preparing pre Google earnings. Under 400K ADV in VIX today.

 

Odd Block: Call spreads trade in Dollar General Corp. (DG), size ratio spreads trade in Carnival Corp (CCL), puts sellers trade in Companhia Energetica Minas. (CIG), and small call buyers trade in Amicus Therapeutics, Inc (FOLD).

 

Xpress Block: Alex discusses premium harvesting in IdeaHub.

 

Strategy Block: Uncle Mike Tosaw discusses when it’s OK to break the rules and to make new ones.

 

Mail Block:

Question from Aviatrix - Hello all-star panel! Great program. I have a question about option open interest. I don’t really understand it. I’ve read some blogs that say open interest can impact a stock’s direction during expiration week. Is this just, as Mark would say, the “tin foil hat crowd” or is there something to this? Should I be tracking open interest as an indicator?  Keep the “wit and wisdom” coming!

 

 

Around the Block: Be aware - this is a shortened holiday week.

Option Block 350: TWTR Risk Reversal Rundown

Jun 28, 2014 54:55

Description:

Option Block 350: TWTR Risk Reversal Rundown

Trading Block: Interesting intra-day activity, but ended up closing basically unchanged. VIX cash back in the 11 handle range. A resurgence in Twitter. A banner day for Valero.

Odd Block: Calls trade in PowerSecure International, Inc (POWR), calls roll in Ashland Inc. (ASH), puts trade in SM Energy Co. (SM), put spreads roll in Tractor Supply Co. (TSCO), puts trade in MagicJack Volactec ltd. (CALL).

Mail Block: Listener questions and comments

Question from JG - Hi guys! Love the show(s), I like really really love the show(s). Last Option Block you mentioned us providing our trades and you dissecting them. Just happens to be a very opportune time because I am currently in a trade and I'll provide my analysis and would like to hear you guys discuss.

Question from Roger Edwards - Hi.

Unusual options activity has drawn my attention to company A, which led me to discover that it's a takeover target by company B. Of course takeover timing is the big challenge. I know that company A has an upcoming ex-div date. Is an ex-div date relevant (factored into takeover timing) at all? Is there any advantage in company B timing its takeover of company A before or after the ex-div date? I'm just trying to use whatever information I can to select the right option expiration. Thanks so much.

Question from Kaiserdog76 •  - "The Dumbest Investor In the World"  - Made good money on UA stupids and FB. Played for a bounce in IWM using options. As that one looks like it has the most room to run. Decent jobs numbers and the "Goldilocks" rally continues. - P.S. Rock Lobster would be proud of me. I even traded a couple Apple calls for a nice pop….Oh, Bita,bita,bita,bita........ Gotta love those China Tech stocks that Retail usually has no clue about. Excellent heads up. Maybe I will look for a bottom and get long again. I had bought 100 shares back when it was trading at $30. In less than a week I was up $600 and figured it could go down just as fast as it went up. Sold and never looked back. I might be breaking some rules here but I like to circle back to winning trades after I feel enough time has passed. Is that a bad habit? I do not have % stats or anything but I know that many have worked more than once. Thanks for refreshing my memory on BITA!

 

Around the Block: Andrew is amazed. Short trading week next week. Not expecting too much activity. Look out for early cash-settled indexes. Be prepared.

Option Block 349: A Bonafide Covered Strangle

Jun 25, 2014 54:55

Description:

Option Block 349: A Bonafide Covered Strangle

Trading Block: Lululemon had a big move today, as did Facebook and Tesla. Is time once again for the Trading Patterns Guessing Game!.

Odd Block: Put butterflies trade in Dow Jones Industrial Average ETF (DJX), call sellers trade in AerCap Holidings NV (AER), call and put sellers (covered strangle?) trade in PG&E Corp. (PCG), and same month call rolls trade in Six Flags Entertainment Corp (SIX)

Xpress Block: What is your take of the covered strangle? Adding names to the IdeaHub. 

Strategy Block: Tosaw discusses the enhanced collar strategy.

Around the Block: How long can the market continue to ignore what happens in Iraq, higher oil prices, etc.? Whoa to the complacent. Where’s the conviction?

Option Block 348: Rampant Insider Trading

Jun 21, 2014 01:02:57

Description:

Option Block 348: Rampant Insider Trading

The Trading Block: More of a micro, rather than a macro day today. Gold up on the day. Is VIX too low? Lululemon had a stealth rally last week. New Amazon Fire phone. Visa popped up the day.  A study by professors at NYU and McGill University in Montreal shows insider options trades precede about a fourth of US M&A deals.

Odd Block:Call sales trade in Verso Paper Corp. (VRS), and bullish risk reversal/Combos trade in Exterran Holdings Inc. (EXH)

Xpress Block: New premium harvesting tools now available in IdeaHub. New features for the Walk Limit. 

Mail Block: Listener Questions & Comments

Question from Shane Hamilton - Hey Mark, How about a new segment called the "Success Block" where listeners submit winning trades and your cohorts comment how it could have been improved, done differently or kudos exactly the way it was played. Just an idea that seems like that might be fun. Besides we all love to talk about our winners.

Question from ITrumpDoom - Hello. If I expect a stock to move significantly over the next six months, but I do not  have a prediction for direction: Is it reasonable to sell a short put butterfly, and a short call butterfly on that stock, with all the long strikes at or very near the money? I think I would cover the risk in one of the flys, by the profit in the other, since it would be impossible for both of them to expire with maximum loss (not that I would hold to expiration). Is my logic sound on this? Is six months an unreasonable expiration to use on these given potential IV increases?

 

Around the Block:  Weekly jobless claims and Regional manufacturing survey (Philly Fed). Keeping an eye on the Iraq situation, crude and Brent oil prices.

Option Block 347: Bringing Guns to the Trading Pit

Jun 18, 2014 57:26

Description:

Option Block 347: Bringing Guns to the Trading Pit

Trading Block: A very mild day on the street. Everyone still loves Tesla. What is up with gold volatility?

 

Odd Block: Calls spreads trade in Fairchild Semiconductor Intl. (FCS), calls trade in Nexstar Broadcasting Group, Inc (NXST), calls trade in St Jude Medical, Inc. (STJ), puts roll trade in SPDR Barclays Capital High Yield (JNK).

 

Xpress Block: You could quality for a commission waiver on options trading if you belong to the Schwab Private Client Group. Idea Hub did very well in May. Premium harvesting now available for both securities options and futures options.

 

Strategy Block: Remember, this week is the ex-dividend date on SPY

 

 

Around the Block: Monday - NY Fed Empire Manu survey. Industrial production and capacity utilization for May and June. NAHHB Homebuilders survey.

Option Block 346: Say Hello to Exposure Fees

Jun 14, 2014 50:47

Description:

Option Block 346: Say Hello to Exposure Fees

Trading Block: A sea of red on the broad street today. VIX: more fear than fear itself? A big day for energies. Lululemon missed their earnings mark. 

Odd Block: An update of recent activity in Dollar General (DG), newsletter put seller trade in Galena BioPharma Inc (GALE), risk reversals/collar in Jet Blue Airways Corp (JBLU), and size put buyers trade in the iShares Dow Jones Transport (IYT)

Xpress Block: A lot of activity in portfolio margining. More news on the upcoming futures for IdeaHub.

Strategy Block: An update on the ratio-hedged risk reversal on Apple. Finding ways to finance the hedge. 

Mail Block: Listener questions and comments. 

Question from Ivan - I have heard some people say I should not sell naked short puts because of “gap risk”. I always respond that it is the same thing as working a limit order in the stock. Who is right - me or these worry warts?

 

Around the Block: Thursday: Import price index and business inventories are estimated to climb. The World Cup begins and the rest of the world will be on vacation for the next month.

Option Block 345: Beating the Street on Dollar General

Jun 11, 2014 56:35

Description:

Option Block 345: Beating the Street on Dollar General

Trading Block: A mild day on the street. Apple stock split. A possible Deutsche Bourse sale of ISE.

Odd Block: Activity review from last week: Carl Icahn disclosed a 9.4% stake in Dollar General (DG) and shares soared. We knew something was up last week. Call buyers in USG Corp (USG), puts rolls trade in Kodiak Oil and Gas Corp. (KOG), and crazy call buying in Clorox Group (CLX)

Xpress Block: Apple dominates the housekeeping, speculating on Lululemon earnings, and a stealth rally in Oil

 

Mail Block: Listener questions and comments

Question from Alexander Soja - Love the program. I listen on my commute to and from work. I would like to know more about the broken wing butterfly. What is this strategy and why would it be useful? Question from MrTeenzy - All this talk about colocation for HFT firms. But do brokers like OX not also co-locate to speed up transaction times? In which case, is colocation not benefiting the retail guy like me?

 

Around the Block: S&P 500 edging toward the 2,000 mark. It could happen in the next few weeks. Lululemon earnings 6/12.

 

Option Block 344: Premium Palooza in Dollar General

Jun 7, 2014 58:23

Description:

Option Block 344: Premium Palooza in Dollar General

Trading Block: A great day on the market. Amazon rises after announcing that they will be making an announcement. What is lurking under the low VIX? Complacency?

Odd Block: Unusual activity in Tesoro Corp (TSO), Target Corp. (TGT), Dollar General Corp. (DG), and NuStar (NS)

Xpress Block: Alex discusses about how a few select clients may be able to trade commission free. Enhanced capabilities in Schwab mobile, including Hub for Futures. 

 

Around the Block: Friday = Unemployment Numbers and Non-Farms

Option Block 343: AAPL Ratio Spread Madness

Jun 4, 2014 58:58

Description:

Option Block 343: AAPL Ratio Spread Madness

Trading Block: A slow day on the street today. All Apple - all Amazon - nothing below the "A"s. OCC announces cleared contract volume declined in May, while 2014 volume remains up.

 

Odd Block: Call ratio spreads trade in Apple Inc. (AAPL), long-term closing call sale in Fortress Investment Group LLC (FIG), closing put buys before earnings trade in Ascena Retail Group Inc. (ASNA), and opening call seller in The Western Union Co (WU)

 

Xpress Block: Alex discusses Idea Hub for Schwab Mobile and possibly Futures Trading.

 

Strategy Block: Ratio Spreads: when and how to use them and why they teeter on the edge of dangerous.

 

Around the Block: ADP private-sector job growth & weekly jobless claims on the horizon. 

Option Block 342: Mini Death Knell

Jun 3, 2014 01:00:17

Description:

Option Block 342: Mini Death Knell

Trading Block: A mild uptick on the street today. Apple rallies and the market follows. With the VIX moving closer to its 9.39 historic low, many commentators are now discussing it as a "complacency index," writes John Nyaradi of Wall Street Sector Selector

 

Odd Block: Risk Reversal trades in iShares MSCI Australia Fund (EWA), call buyers trade in Scientific Games Corp. (SGMS), and call buy-writes trade in Ambev SA (ABEV)

 

Xpress Block: Alex discusses the recent NASDAQ notice and the death of minis.

 

Mail Block: Listener questions and comments

Comment/Question from Kaiser Dog - Enjoyed todays podcasts. I felt the Viceroy came back with some very pertinent information. I myself have been using my iPad and even My iPhone a few times to initiate trades. The Mobile Trading option is gaining traction and I agree with Alex's sentiment that this has smoothed out trading flow. Especially in times that would be historically light volume. I myself prefer my Laptop trading station I have custom built. With that said the reality is that raising a 4 year old son takes a lot of time and attention. My Mobile App allows me to stay on top of things and still be a parent. The Mobile trading option is a huge success. The Polar Opposite of "Mini Options" in my opinion. I enjoyed the swing to a positive story from the depression that HFT and Minis cause me. lol.

Question from DeGaul - What does the OH/Monster merger mean for the options brokerage landscape going forward?

Question from Mr Teenzy - All this talk about colocation for HFT firms, but do brokers like OX not also co-locate to speed up transaction times? In which case, is colocation benefiting the retail guy like me?

 

Around the Block: Economic Data: First-quarter GDP revision (Thursday) and Personal Income and Spending, Chicago PMI and University of Michigan consumer sentiment (Friday).

Fed talk:  Fed's Pianalto: 'Inflation and Monetary Policy'

Option Block 341: Weird Activity In Colgate-Palmolive

May 24, 2014 01:00:23

Description:

Option Block 341: Weird Activity In Colgate-Palmolive

Trading Block:  A surprising VIX given the upcoming holiday weekend. Record low levels in some beloved Option Block names. We saw a massive upside call going up in VIX early this week. The U.S. options exchanges are working jointly toward the development of a uniform obvious error rule to nullify or adjust transactions that meet the definition of an obvious or catastrophic error. OCC and US Options Exchange adopt pre and post-trading risk control principles. 

Odd Block:

Closing puts buyers trade in HMS Holdings Corp. (HMSY) Puts sellers trade in Big Lots, Inc (BIG) Call sellers trade in Colgate-Palmolive Co. (CL) Closing put sale in US Steel Corp (X)

Xpress/Mail Block: XpressMail….get it?

OX questions this week:

Comment from CBarles - I agree with Mark and the Viceroy - OX needs a "caps lock" detector on the website login page. I am always forgetting that and having to log in twice - very annoying. Please save me from myself.  Comments/Questions from Kaiser Dog - Mark, First let me thank you for using my post in the Mail Call. Made my day yesterday. If you liked that? I have a lot more where that came from.  Just got done listening to "Talking Volatility" and enjoyed the show. I must confess I am not an "Option Pit" guy. Just a retail investor who has a big hunger for anything option related and A fan of the "MeatBall" and the Show in general. I bought Flash Boys the day it was released and have read it about 5 times. Thank you for your work on this front as well. Kudos to your unbiased reports. Please keep them coming. My question for the panel today is as follows: There has been allot of talk about Bubbles. I thought Hubba Bubba and Big League Chew were filling for IPO's there has been so much chatter on CNBC and other media sites. lol. The element that seems to be missing? Undue euphoria and enthusiasm. I do not see it. I do not see Retail participating in any big way. Volume is anemic and artificial (HFT) in my opinion. I would love to hear the panel's take on the topic of A Market Bubble. In addition I would like to hear every ones take on the "State" of the "Retail" investor. Thanks again! Cheers.

 

Around the Block:  Initial Jobless Claims Data and Homes Sales Report on Thursday -- Claims are expected to be higher. Notes from the FOMC meeting.

Option Block 340: Revenge of the Guts Strangle

May 21, 2014 59:05

Description:

Option Block 340: Revenge of the Guts Strangle

Trading Block: What will bring back volatility? A black swan event? Russell Rhoads said via MarketWatch that investors are showing a “justified complacency” given that recent VIX jumps don't stay at those levels for long. "One-off events," such as the Ukraine, get investors' attention for a while and then wanes. It's enough for a VIX spike but not enough to sustain it. From a black swan event in the economy and markets, it would have a greater, deeper effect.

Odd Block: Calls buyers trade in Oncothyreon Inc. (ONTY), closing call buyers and put buyers trade in Gastar Exploration Inc (GST) - a closing guts strangle? Closing call sellers trade in Chemtura Corp (CHMT), and calls roll in iShares MSCI Brazil Index (EWZ).

Xpress Block: Alex talks recent news from Charles Schwab (CEO suggests regulators require brokerage firms to disclose payment for order flow), as well as VIX ETNs.

Around the Block: Is the housing market really coming back? The National Association of Realtors will release April existing home sales data Thursday and the U.S. Census Bureau reports sales numbers for newly constructed homes is out Friday.  Earnings this week include Home Depot, Lowe's, Campbell Soup and Hewlett-Packard.

Option Block 339: Potential Front Running Activity

May 17, 2014 57:55

Description:

Option Block 339: Potential Front Running Activity

Trading Block: Today we have a very special trading block segment from Uncle Mike Tosaw about Russell and RVX vol. Is VIX in a deep sleep?

Odd Block: Combos trade in the iShares MSCI Emerging Markets (EEM), call spreads trade in Travelers Companies (TRV), calls trade in Expeditors International of Washington (EXPD), and calls trade in Chemtura Corp (CHMT)

Xpress/Mail Block: We are mixing it up today with some questions from OX clients:

Please explain put/call parity.   A very successful trader friend says ITM debit spreads are superior to credit spreads and I do not get it. Can the probability of a calendar be easily calculated?

Option Block 338: The Great Mobile Trading Debate

May 14, 2014 56:05

Description:

Option Block 338: The Great Mobile Trading Debate

Trading Block: A strong surge to the upside, Russell leading the charge. Russell 2000 index (RTY) option costs at Feb 2007 levels. Who is playing out in this product? Apple and Beats headphones - two Tosaw favorites.

 

Odd Block: Combos, rolling short stock position in Denderon Corp. (DNDN), call buyers trade in VeriFone Systems Inc. (PAY), call buyers trade in Hillshire Brands Co. (HSH), and put spread sellers trade in WisdomTree India Earnings (EPI)

 

Xpress Block: Alex talks about mobile app usage by the OX clientele and market-wide.  

 

Strategy Block: Mike Tosaw discusses covered calls going in the money - and how that is a good thing.

 

 

Around the Block: Upcoming economic reports: Retail Sales (Tuesday), PPI (Wednesday) and CPI (Thursday). Still more earnings: CSCO - 5/14 after, COSI - 5/15 after, TTWO - 5/13 after. 

Option Block 337: Looking Back on the Flash Crash

May 10, 2014 55:00

Description:

Option Block 337: Looking Back on the Flash Crash

Trading Block:  Options traders were preparing for 10% swings of Tesla before week's end based on a straddle. On Wednesday, volume in Twitter options increased fivefold, all but erasing value in a series of bullish contracts. ICE reports record Q1 profit. After its June IPO, Euronext plans to be listed on three of its exchanges. May 6 marks the fourth anniversary and it's a reminder that not much has changed. 

Odd Block: Put sellers in BBEP, call spreads trade in Cameco Corp., calls trade in DLX, closing put seller in FTR.

Strategy Block: Calendars vs. verticals, part deux. 

Comment from Erik Ruehr re: Mike Tosaw’s survey. I say vertical spreads are better now. Thanks for the show. Comment from Tom S.: In response to Uncle Mike’s survey: In general, I’d say vertical spreads trade much better now. Comment from LJO: Put me down in the plus column for verticals.

Around the Block: Some earnings left: CSCO, TTWO, CBOE, GRPN. Macro, macro, macro, 10-year, 30-year, the Fed. Will social media/tech stocks hold up?

Option Block 336: Earnings and the Death of Minis

May 7, 2014 01:03:53

Description:

Option Block 336: Earnings and the Death of Minis

Trading Block: A mild day on the street. Apple catching a bid. Tuesday’s computer error at NYSE ACRA and NYSE AMEX options markets resulted in almost 20,000 erroneous trades.

 

Odd Block: Call buyers trade in Nike Inc. (NKE), call sellers trade in Gilead Sciences, Inc. (GILD), put spreads trade in iShares Barclays 7-10 year Treasury ETF (IEF) - closing roll, and closing put buyers trade in NQ Mobile Inc. (NQ).

 

Xpress Block: Late May/Early June is the target date for enhancements to OX mobile, which will include single-leg walk limits, as well as OSO and OTO orders.

 

Mail Block: In which Option Pit steals the show.

Website comment from Kaiserdog76: Loved todays Option Block. Especially the focus on Mini Options and their total failure. Mark Sebastian said it best when he talked about the people that really need a break in the Market getting "Bo Didley Squat" when the dust settles. I have all ways hated Minis. Talk about a getting "Stupid" on an option trade. One tenth the size but %100 the commission. Spreads wider than Honey Boo Boo. This product is a total joke and in my humble opinion never really lived. This was dead on takeoff.

Website comment from Meatball-in-training:  Great show. The question from one of your listeners about the trade scanner that keeps popping up two standard deviation ITM debit spreads was very interesting. Is it perhaps the case that the scanner is ignoring the cost of carry on the premium itself when looking at prospective trades? That is the sort of thing I can imagine someone overlooking when programming a trade scanner and for wide verticals with lots of time to expiration, it might be enough to make expensive debit spreads look superior to their synthetically equivalent credit spreads. I am one of Mark and Andrews’s students, so if this is all wrong, feel free to blame them.

Tweet from OtC bOuNcEr$ @stevesokol21 - Is there a way to run a scan anywhere to find more stocks with that pattern? Thanks a lot for the help

 

 

 Around the Block: Still some more earning left out there: ATVI - 5/6, CBOE - 5/6, DIS - 5/6, EA - 5/6, GRPN - 5/6, TSLA - 5/7 & PCLN - 5/8

Option Block 335: The Giovinazzi/Tosaw Spectacular

May 2, 2014 38:53

Description:

Option Block 335: The Giovinazzi/Tosaw Spectacular 

Trading Block:

A slow day on the market today. TLT was one of the few things to light up the tape. Yellen, the Fed and bond buying. An update of the VIX and S&P with Andrew. 

Odd Block:

Call buyers in Auxilium Phramaceuticals, Inc (AUXL)

Call buyers jump into EQT Corp. (EQT)

Call spreads trade in Verso Paper Corp (VRS)

Calls roll in Mechel OAO (MTL)

Strategy Block:

A question/poll for our audience: Given the level of the VIX, is this market a better environment for doing verticals spreads or horizontal spreads?

Around the Block:

More earnings: XOM, LNKD, KRFT and EXPE. The biggest news will come for the jobs report on Friday. Will gold continue to slide? GDP?

Option Block 334: Are Mini Options Dead?

Apr 30, 2014 55:01

Description:

Option Block 334: Are Mini Options Dead?

Trading Block:

Close to close is only half the story today. Russell and the NASDAQ lead the way. Stocks that pay a nice dividend are clear outperforming stocks that do not. Three candidates selected to oversee OPRA. 

Odd Block:

Puts go up in Diebold Inc (DBD)

A three-way trade goes up in Range Resources Corp. (RRC)

Calls buyers go up in Norhtstar Realty Finance Corp. (NRF)

Put spread sales trade in Bank of America Corp (BAC) - potential roll down

         

Xpress Block:

A continuing rotation out of momentum into more quality names. Apple, Amazon IBM and Microsoft were all hot on the OX desk today.

Strategy Block:

A two-part strategy block today. First, a few current strategies Uncle Mike is employing. Second, a trade for people who may not have been able to pull the trigger on a selling a bull put spread when the market was down today.  

Mail Block:

Question from Jason Kruse - Has probably been asked & answered many times, and I have missed it.. Will $AAPL minis continue to trade after the split?

Around the Block:

A lot of economic news this week, including the Fed two-day FOMC meeting. On Monday, pending home sales and Dallas Fed manufacturing. More earnings: TWTR, MAR, CME & LKND

Option Block 333: AAPL, AMZN Earnings Roundup

Apr 26, 2014 59:33

Description:

Option Block 333: AAPL, AMZN Earnings Roundup

Trading Block:

A mild rally on the street today. Apple earnings play-by-play with Uncle Mike Tosaw. A very boring Apple earnings - will this become the next Microsoft? What is the future for Apple? What is the future of the Minis? Will 7 to 1 be the death nail?

Odd Block:

Strangles, calls and puts trade in Eagle Rock Energy Partners LP (EROC), closing call buys trade in SandRidge Energy Inc (SD), closing call buys in iShares MSCI Japan ETF (EWJ), and put buyers trade in AmerisourceBergen Corp. (ABC) 

Xpress Block:

A very busy day at OX, but one that is not represented in the numbers. A lot of paper in FB and APPL going into earning.

Mail Block:

Question from Nick Snow - Hey Mark. Second time writer here. I was recently scanning brokers out there and have listened to almost everything on options insider. I found one that is highly regarded by barons and some there's for price and technology recently. One of their "proprietary scanning" functions is meant for spread traders. I opened a virtual trade account and played with it and it is all out of the money low Vol 2 standard deviations debit spreads. Is this not a complete love your broker trade? Is there something more that they can build in a spread debit trade that I do not know?

Question from George - You posted a chart recently on Options Insider and unfortunately I do not know what "P/C" mean. Would you please explain it for me? Many thanks. Your site is very interesting and readable.

Question from A. Berger - When are futures options going live in Idea Hub? Thanks and I love the show. P.S. - Can OX add a caps lock indicator to the website like they have in iTunes? It would make it easier to log on since I am always forgetting about my caps lock.

Question from Doc Phil - Why do so many options traders fall to the “dark side?” You do not see many short sellers in equities. Is premium selling just more attractive or is there something about options traders?

Around the Block:

A final look at MSFT, AMZN and APPL after the bell. 

More earning on the horizon: MAR - 4/29, NOK - 4/29, TWTR - 4/29, LNKD - 5/1 & CME - 5/1.

Option Block 332: How to Waste a Good Hedge

Apr 23, 2014 52:11

Description:

Option Block 332: How to Waste a Good Hedge

Trading Block: Back to rally mode on the street. Vol retreats yet again. Names before the bell: Haliburton (HAL), Hasbro (HAS) - After: Netflix (NFLX)

 

Odd Block: Put sellers trade in SBA Communications Corp. (SBAC), call buyers trade in Merrill Lynch/Market Vectors Semiconductors ETF (SMH), review from 3/27/14 - calls trade in Ares Capital Corp. (ARCC) (this was a loser), and a review from 3/24/14 - call buyers jump in Quest Diagnostics Inc. (DGX) (possible winner).

 

Xpress Block: Apple and Facebook dominate trades, though, a lighter than expected day today.

 

Strategy Block: This week Uncle Mike talks about expiration day risk - just in case some of you got burned last week.

 

Around the Block: Earnings season shifts into full gear. On tap for this week:

 

APPL - 4/23, FB - 4/23, F - 4/25, GM - 4/24 before, MSFT - 4/24 after, UAL - 4/24 before & AMZN - 4/24 after.

Option Block 331: Maximizing Your IRA

Apr 21, 2014 57:33

Description:

Option Block 331: Maximizing Your IRA

 

Trading Block: It was a pretty slow day, with all major indices basically unchanged on the day. Expiration issues prompted many phone calls to the optionsXpress desk. Earnings aren’t running over premium sellers like the last time. Pit trading helped out the CME last week. HFT narrative still active in the market. 

Odd Block: Big call buy in Wal-Mart Stores Inc., May call spread trades in Western Digital Corp. (WDC), put buying in Target Corp. (TGT), and closing out a huge position in Lloyds Bank of London (LYG).

Xpress Block: Frenzy about a shortened expiration week, particularly with indexes. 

Mail Block: Listener questions drive the conversation.

 

What to do with a losing position? Day trading commissions and tax implications. Maximizing a Roth IRA.

Option Block 330: Falklands War Volatility

Apr 16, 2014 59:55

Description:

Option Block 330: Falklands War Volatility

Trading Block: A mild day on the street. The Russian incursion of Ukraine is still having its effects on the market. CBOE VXST off to a good start. Hedge fund VIX bets on the decline.

Odd Block: Calls go up in Carnival Corp. (CCL), calls trade in Millennial Media (MM), call spreads trade in IAC Interactive Corp (IACI), and puts trade in Dean Foods Co. (DF).

 

Xpress Block: Happy Tax Day! Market are thin, given this shortened week. Yahoo and Google on the tape at OX.

 

Strategy Block: Uncle Mike revisits the topic of selling puts in a down market.

 

Around the Block: A big earnings week! 4/15: SCHW (before) YHOO, INTC; 4/16: BAC (before), GOOG, IBM; 4/17: GS (before), AMD, CMD; 4/21: NFLX.

 

 

Option Block 329: The Great SPY vs. SPX Iron Condor Debate

Apr 12, 2014 57:33

Description:

Option Block 329: The Great SPY vs. SPX Iron Condor Debate

Trading Block: A sea of red on the street today. A lot of directional paper going through OX today. Terrible data coming out of China. CBOE Short-Term VIX product (VXST) launches.

 

Odd Block: Getting the RDA of RDA puts (RDA), big put blocks trade in Bill Barrett Corp. (BBG), and IV jumping in Tower Group International Ltd. (TWGP).

 

Xpress Block: A mass exodus from momentum stocks. What exactly caused this?

 

Mail Block: Commissions and Buy/Writes

Question from Brian Collamer - Mark mentioned he thought U.S. retail accounts should be trading SPY rather than SPX options in a recent Options Block episode. I 'm selling Iron condors in SPX {2 contracts, just learning...} When I looked at the same size trades in SPY {20 contracts}. The commissions were killer. I like the idea of better fills in SPY and no open outcry trading, but seems like the commissions/fees really make them untenable at my levels. Am I missing something? Thanks for the great podcasts!! Brian Question from AJ - I was listening to The Option Block #266 Juice & Paper and you guys mentioned how you saw unusual activity in FCX which looked like a Buy/Write trade. My question: How can you tell when an option trade is a Buy/Write or options paired with shares trade? Thanks.

 

Around the Block: What will pick up the market?

Option Block 328: Earnings Season Is Back

Apr 9, 2014 40:02

Description:

Option Block 328: Earnings Season Is Back

Trading block: Momentum has been taken out of the market for the past two days - which way will we move? Earnings season is upon us. GLD rundown with Uncle Mike.

 

Xpress Block: Some hedges were being lifted today. Google the big name on the OX desk.

 

Strategy Block: This week, Uncle Mike Tosaw discusses selling puts in a down market.

 

 

Around the Block: Bank earnings a little later this week. What more could come out of Ukraine? Is "buy the dip" still there?

Option Block 327: You, Too, Can Be an FBI Junior Agent

Apr 5, 2014 01:02:21

Description:

Option Block 327: You, Too, Can Be an FBI Junior Agent

Trading Block: March options volume rose 14%. ADV was 16,931,924 contracts, equity options volume was 321,641,596 contracts. FBI to investigate high frequency trading - the FBI wants your help!

 

Odd Block: Big call purchases in DFC Global (DLLR), buy-write in Williams Companies, Inc. (WMB), bullish bet in Resolute Energy (REN), and big block of puts trade in Corning (GLW)

Xpress Block: Google now trades on an adjusted basis: Class A and Class C shares.

 

Mail Block: Tell us what you want to know.

Question from Wael Randa - What service do you offer to help options traders. Also I am looking for a scanner to spot big order block by investors. Any free or paid service. Thanks a lot, Samuel. Question from John King - @Options could you discuss trade entry for Iron butterfly/condor (ignoring commish)-all at once vs. leg verticals vs. buy strangle then sell straddle? Question from Fred Blackes - Geez, you guys are great.  Why is it that you were the only ones who read the FIO options actions April 25 2013 correctly?  Everybody else had the trader/Hedgie buying the Sept 24 calls. Do you offer any service for learning/advisory

 

 

Around the Block: S&P 500 hits another record. Unemployment report Friday. Earnings coming up next week. 

Option Block 326: Options Trading for Bitcoin

Apr 3, 2014 55:20

Description:

Option Block 326: Options Trading for Bitcoin

Trading Block

The Fed is not turning off the spigot anytime soon. Ukraine easing tensions combine to boost the market. Options trading for Bitcoins - Atlas 2.0 launched in Hong Kong and North America. Regulatory rule unlikely for HFT. Author Michael Lewis releases a new HFT book - Flash Boys.

Odd Block

Puts trade in Genpact Limited (G), Call spreads trade in Grupo Televisa SAB (TV) and Call sales trade in iShares MSCI Emerging Markets ETF (EEM)

Xpress Block

Tesla and Amazon still retreating. Idea Hub for Schwab mobile is in its final days of testing - should be out in the next couple of weeks.

Strategy Block

Today, Uncle Mike discusses the importance of closing out short options.

Mail Block

Question from Dylan Harris - Hi, I started trading options about a year and a half ago and got burned a few times which made me realize I did not know nearly what I thought I did and sent me back to the drawing boards. I have spent the time since then learning as much as I can about different options strategies and trying them in virtual accounts. I have come to the conclusion that diagonal spreads fit me pretty well. The question I have is whether there are ways to use delta as a trigger to (in the case of diagonals) roll the short strike down and/or out and if so how successful have these been in implementation and which brokers have them? Thanks! Dylan

Around the Block

March 31 planting report. Janet Yellens speech. End of the first quarter.

Option Block 325: SPX vs. SPY vs. Steven Seagal

Mar 29, 2014 56:13

Description:

Option Block 325: SPX vs. SPY vs. Steven Seagal

Trading Block: A mild day on the street. VIX cash taking a little breather. A lot of put buying in Google, Tesla, Netflix, Priceline, etc. Lululemon gets its first big pop in a while. TLT reaches a one year high.

Odd Block: Combos trade in the VIX, straddle trades in EQT Corporation (EQT), calls trade in Ares Capital Corp. (ARCC), and puts trade in SPDR Barclays Capital High Yield (JNK)

 

Xpress Block: Growth was in short supply today on the OX desk - a mass exodus. A mixed bag for the biotechs. Idea Hub is coming to Schwab mobile soon! Plus spot VIX products!

 

Listener Mail Extravaganza: Because if it’s going to be an extravaganza, why not make it about mail?

Question from John King - Could you discuss SPX vs SPY vs ES opts? Bid/Ask slip VS commish, Margin treatment, ex-div/exercise annoyance, etc.? Thanks! - Commish in my case are flat .75/cntr, no tkt chg. For ES opt its $3.65 thx!

Question from Nick Snow - Options block 323 - You mentioned on this show that RBS had a bunch of Aug 10 ATM volume today.  I noticed this also and I am not sure I get it. RBS has lots of problems with the queen and the LIBOR fees they pay from loans. I am not sure how I can phrase this so it’s tradeable but if any company where to have an IPO of a company owned with in. Would you buy calls on the company that was public because you assume the cash injection from the IPO would boost the stock of the parent? If you want to get more clarity around that I can but I am sure it will kill your ability to trade RBS. And as an options express account holder tell them to get flies on their scans instead of just condors. :)

Question from Nishant Pant - I love your show so much. Every morning at gym, I am listening to your podcasts instead of music like everybody else. One thing I am frustrated on the internet is everybody is just busy explaining what a straddle or strangle or any other thing is...instead of telling the practical things you need to keep in mind and you guys do such a great job in explaining the gotchas and the greeks which matter. Is it possible for you to add actionable ideas? Tomorrow GRPN is releasing earnings. Maybe you can build upon what you have already taught us and explain an actionable idea and tell us why you think a particular trade you are suggesting makes sense. I would pay for such a podcast at the blink of an eye. Just for the learning aspect of it.  Thanks again for your awesomeness.

 

 

Around the Block: Treasuries. Volatility. What will Russia do next? Buy the dip…a 52% guarantee. Short supply in growth issues. 

Option Block 324: Behold the Power of the Stupid

Mar 26, 2014 54:05

Description:

Option Block 324: Behold the Power of the Stupid

Trading Block: A mild day on the street. Controversy over SPX settlement on Friday. Mutual fund use of options: public holding and trends (presented at RMC). Minis one year later - boom or bust? 

Odd Block: Call buyers jump in Quest Diagnostics Inc, (DGX), big call roll in Coronado Biosciences Inc. (CNDO), puts trade in Spectrum Pharmaceuticals, Inc. (SPPI), and call sellers in Prologis Inc. (PLD).

Xpress Block: Alex talks in depth about the SPX settlement controversy on Friday

Strategy Block: Tosaw discusses the "Stupid." What is it and when do you use it?

 

Around the Block: Watching and waiting to see what happens in the Ukraine. Parade of Fed people. What’s happening with the super cheap treasury vol?

 

 

Option Block 323: Rebar Futures Extravaganza

Mar 22, 2014 01:04:09

Description:

Option Block 323: Rebar Futures Extravaganza

Trading Block: Russian President Vladimir Putin is an investor in Swiss-based oil trader Gunvor Group Ltd. Time for the global derivatives volume guessing game! Put on your thinking caps and guess the winners in the various product categories: indexes, ags, metals, and more.

 

Odd Block: Calls spreads trade in Alpha Natural Resources Inc. (ANR); calls trade in Mast Therapeutics Inc. (MSTX); calls trade in Royal Bank of Scotland PLC (RBS), and: puts trade in iShares Japan fund (EWJ).

 

Xpress Block: New enhancements to the OX trading platform.

 

Mail Block: Thumped by Theta

Question from Theta Thumper: Here's a question for one of your shows (Options Insider maybe?): You often talk about hedging a portfolio. If you decide to do it the simple way and hedge by buying a long dated 'put' on the SPY (instead of using the VIX) is it better to buy a put at say 15-20% below the market for the full amount of your portfolio or use the same amount of cash you would have used for that to hedge closer to the money but with a smaller percentage of the portfolio? My concept is to use 1% of my portfolio per year as a hedge. Jim (Theta Thumper) Sisters, OR

 

 

Around the Block: Stock market edges higher after encouraging economic reports offset interest rate concerns.

Option Block 322: When 50 is the New 70

Mar 19, 2014 37:09

Description:

Option Block 322: When 50 is the New 70

Trading Block: The VIX was up 25% in the last week. FIA Boca update.  US derivatives exchanges have seen improved trading volume. In the US, three of the top five US exchanges grew in Feb.

Odd Block: Calls trade in UQM Technologies (UQM), call buyers jump into Silicon Image, Inc. (SIMG), puts trade in Montage Technology Group (MONT), and call sellers try on some DSW Inc. (DSW).

Xpress Block: A quiet day at OX. Some activity in triple digit names and the 10-year and the Bund.

 

Around the Block: Ukraine worries, Sundays referendum, US sanctions and Feb US data numbers.

Option Block 321: Old School Bullish Paper

Mar 15, 2014 01:01:54

Description:

Option Block 321: Old School Bullish Paper

Trading Block:  A big selloff on the market today. Angela Merkel yells at Putin. A big day for the banks. The numbers are in! $21.64B derivatives traded in 2013. $12.22B of futures. $11.7B in equity names. VXST options coming in April. More exchanges are on the way - for better or worse.

Odd Block: Some very interesting paper in IRDM, AG, TSM, and XRAY.

Xpress Block:  Three new OX products are nearly ready for release, IRIS - Integrated Rapid Information System, Idea Hub for Schwab mobile and Idea Hub for Futures.

Mail Block: 

Question from Illin' - Are the new Mt. Gox IOUs essentially the first Bitcoin derivatives? Question from Joseph Riggs - Has OX ever thought about creating its own options product, that it could then promote to its customers? Is that even possible (legal), or are new products the sole domain of the exchanges? Is that why there are so many? They are all trying to get into the new product biz.  Question from Ian Getz -  Basic question, is there HFT in the options market as there is in the equities?

Around the Block:  Still keeping an eye on Ukraine, as well as China banking. There might be some quite literal weekend risk. 

Option Block 320: Filling Your Britches with Fear

Mar 13, 2014 56:27

Description:

Option Block 320: Filling Your Britches with Fear

 

Trading Block: A mild selloff on the street today - a resounding meh! Congrats to Andrew for passing the Series 65 exam! A big day for energy. VXST: Is there any interest there?

 

Odd Block: Calls trade in Plug Power Inc. (PLUG), calls trade in MeetMe Inc. (MEET), call buyer with stock in Technology SPDR ETF (XLK), and buy-write in Encana Corp. (ECA)

 

Xpress Block: An update on energy/nat gas trading at OX. A very quiet day; are we in the eye of the storm.

 

Strategy Block: Uncle Mike Tosaw discusses some things to consider if you want to collect some income while still being long a stock.

 

 

Around the Block: Not much on the earnings front. Ukraine. Boeing.

Option Block 319: Why Would Anyone Do That?

Mar 8, 2014 57:15

Description:

Option Block 319: Why Would Anyone Do That?

Trading Block

Indexes are at the same level as this morning but the S&P 500 could hit another record close. VIX high on the continuing drama in Ukraine. Staples falls on disappointing quarterly numbers. Federal Reserve data released on Thursday. Ukraine and Nat Gas. Jobless claims Thursday - Nonfarms Friday. 

Odd Block

Puts trade in James River Coal Company (JRCC), puts trade in CommonWealth REIT (CWH), buy-write traders in MeetMe (MEET) and long close in SPDR KBW Regional Bank ETF (KRE)

Xpress Block

Alex clears up the confusion caused by the upcoming dividend of the Qs. Soda Stream lit up the tape late in the session.

Mail Block

Question from J. Charles - My question for the all-star panel is about analytics platforms. I have heard you guys mention a variety of different suites, live LiveVol. I pretty much just use my brokers tools and they work fine for me. I can pull up the options chains, click on the strikes and options I want to trade, click on the option to enter a trade and all that stuff. I can also pull up skews and research. It really does the job for me. What is ti that these other platforms offer you that would be worth paying $200+ a month in extra fees? Sorry but I am no an OX customer - although the show is pulling me in that direction. Hope that does not hurt my chances of being featured on the program.

Comment from Bryan Nic - @Options Just pulled up OB on your app. Hundreds of episodes waiti