Option Block 90: The Voice of Options
Option Block 90: The Voice of Options
TRADING BLOCK: Research in Motion (RIMM) - The future looksbleak. ìThe Widowmakerî strikes again - Netflix (NFLX), which wastrading $300 just two months ago, down 40%. Yet another ìrogue traderîon the loose - this time it costs UBS $2 billion. Commodities rundown -gold is coming down, is this the right time tighten up your hedges?
ODD BLOCK: Unusual and interesting options activity in: UBS AG(UBS) - a staggering $2 billion lost in trading as a rogue trader rackedup unauthorized dealings. Call buying and put selling on the stockappear to be the most employed strategies of the day, with investorsexpecting shares to recover in the next five weeks. Amerigroup Corp.(AGP) - ahead of the companyís analyst meeting in New York tomorrowmorning, an opening buyer appeared in the September 45 Calls, paying theoffers of $0.25-$0.35 for approximately 3500 contracts. These optionsexpire tomorrow after the close so these trades will need the stock toclimb another 4.6% to begin to see any profits.
XPRESS BLOCK: Tim Navabi takes the reins and discusses the hecticday today at OX due to "The Widowmaker" aka Netflix, as well as theupcoming expiration of September futures.
STRATEGY BLOCK: Mike Tosaw illuminates us on some in-depthoptions strategy. First, with the upcoming expiration, if you're notready to hold a stock and you're short a put, maybe you'll want to closeout those penny options. Second, make sure you know position deltabefore doing ratio spreads.
AROUND THE BLOCK: An update on RIMM. Still some concern overGreece, also some concern about expiration upcoming. Not too much elselighting up the tape on the earnings front though. Play it safe thisweekend.
About Mark S. Longo
Mark S. Longo is the founder of The Options Insider Inc. - a firm dedicated to providing free options information, education, news and analysis for options users. Whether it's on TheOptionsInsider.com, a leading online options destination; through Options Insider Radio, the world's only radio network for options users; or through a growing number of newsletters and live events, Mr. Longo continues to provide new ways to spread the word about options.Mr. Longo's analysis of the options market has appeared in a wide variety of domestic and international publications, including The Wall Street Journal, Financial Times, Reuters, Futures Magazine, and more. As one of the few industry commentators with practical options experience, he has developed a substantial following among industry veterans and newcomers looking for insight into this complex market.Mr. Longo began his career as an options trader on the floor of the Chicago Board Options Exchange.
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