Option Block 130: Nothing Short of Titillating
Trading Block: The VIX cash limbo strikes again - how low can it go? Greek deal in place since the last show. A lot of movement has continued in oil over the past few sessions. Sears posts huge Q4 loss, yet stock up 20% on news of spinning off assets. Tons of activity in SHLD options -- 23k ADV vs over 100k today.
Odd Block: Unusual activity for Odd Block newcomer TRW Automotive Holdings (TRW)
Listener Mail: U.S. Index Options
I am looking to short strangles on either the Dow Jones Industrial Index or the S&P 500. I not from the U.S. so not really familiar with the options industry here and am having trouble selecting the right options to trade. I've looked at the websites of CBOE and CME to try to figure out the right options, but the number of different contracts available has left me totally confused. Can someone guide as to which is the right contract to trade if I want to take monthly positions by selling OTM strangles. Also, is it better to trade the Dow or the S&P 500?
Around the Block: Getting close to some moving averages in silver, we could see some more upside ahead. Earnings season is slowing down since its heyday a few weeks ago.
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.
View Mark S. Longo's post archive >
