Option Block 95: Kodak vs. American Airlines

Trading Block:

• The Greek yo-yo has struck again! Greek debt outlook was not as rosy as last week -- market down again in response.
• Apple down again, amid rumors of an Amazon tablet continue.
• Whack-a-Bankruptcy -- just when rumors of one bankruptcy subside, more emerge to take its place.
• Airline stocks are taking a nose dive today due to fears the weak economy will reduce travel demands and hit fares over the coming months.
• BAC taking it on the chin - down 7.5% and blew through their $6 support level
• Kodak denies bankruptcy rumors - the stock is all over the map, cut by 66% on Friday and up 300% today. Some advantageous and amazing trading opportunities during the fast market on Friday.

Odd Block:

AMR Corp. (AMR)
The parent company of American Airlines, is the worst performer with its stock trading 17% lower today and currently sitting at a two year low. Shares in AMR Corp. went down in flames today, falling nearly 40.0% this afternoon to $1.83, before trading in the stock was halted for a second time...and then a third, fourth, and fifth time at current count.

McDermott International, Inc. - (MDR)
Worldwide energy services company McDermott International, Inc. (MDR) sees its shares set a new 52 week low of $10.45 this morning and it looks like some option investors are using the recent drop in share price to open a Bullish two month position.

Las Vegas Sands Corp. - (LVS)
Interesting trade structure - call spread/stupid spread.
At least one options trader is positioning for the recovery story to continue to play out on LVS through October expiration. It looks like the investor effectively established two call spreads on the stock to prepare for limited gains in the price of the underlying.


Xpress Block: Mr. Grigus takes the reins and discusses SPXpm, the new CBOE product which debuts tomorrow. Also, a few listener questions are addressed: Exercise Fee. "If a brokerage says the fee for option assignment is $20, is that per share, per contract (100 shares) or per order? So if I have 10 contracts of 100 shares each, do I pay 2000, 200, or 20 assuming they are all assigned?"

• Greece! - The endless question mark lurking off the horizon.
• Jobless claims Thursday, 10/6 and Non-farms Friday, 10/7
• Looking forward the release of SPXpm.
  

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.