Options Industry

Option Block 681: The Great 2018 Kick-Off Show


And....we're off with the first Option Block of 2018.

Listen to Option Block 681: The Great 2018 Kick-Off Show

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?


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.

Author's web site: http://www.theoptionsinsider.com


View Mark S. Longo's post archive >

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The Options Insider Radio Network

The Options News Rundown

Your source for the most important news and information from the world of options.

The Options News Rundown

The Options Insider Radio Network

All of our radio programs in one convenient place.

The Options Insider Radio Network

Options Insider Radio

The original options podcast. Features interviews with leading options figures.

Options Insider Radio

The Option Block

This high-octane program features education, analysis, strategies and unusual activity.

The Option Block

Volatility Views

The premier radio program for volatility traders.

Volatility Views

The Long And Short Of Futures Options

Your source for futures options information.

The Long And Short Of Futures Options

The Advisor's Option

Arming advisors with the info necessary to manage risk.

The Advisor's Option

Options Boot Camp

Get into peak options trading shape.

Options Boot Camp

Options Insider Special Events

Compelling panel & special event recordings from the options world.

Options Insider Special Events

OIC's Wide World of Options

A dynamic mix of current events, investor resources, & strategy insights.

OIC's Wide World of Options

Trading Tech Talk

We break down all the amazing technology that takes your trades from the click of a mouse to the clearinghouse.

Trading Tech Talk

Options Playbook Radio

Break down cutting-edge options strategies and learn how to incorporate them into your portfolio

Options Playbook Radio

Options Oddities

We track all the unusual options trading activity on Options Oddities.

Options Oddities

This Week in Futures Options

The program designed to help active futures options traders stay on top of this ever-changing marketplace. 

This Week in Futures Options

The Business Show

If you like business, if you like humor, if you like stock symbols, this is the podcast for you.

The Business Show