Option Block 681: The Great 2018 Kick-Off Show
And....we're off with the first Option Block of 2018.
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?
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