Options Industry

Option Block 690: Debating XIV and SVXY


Volatility products are in the spotlight as VIX goes over 30

Listen to Option Block 690: Debating XIV and SVXY

Trading Block: A review of the week to date.

  • VIX back up over 30
  • S&P is back in selloff mode despite decent earnings.
  • We are all now living in a post VIX/Monday selloff world.
  • Everyone is attacking the "Frankenproducts" like XIV and SVXY.
  • VXX was briefly back above its post-split levels.
  • Earnings are getting lost in the macro maelstrom - TSLA, CMG, TWTR, SNAP
  • Earnings Highlights:
    • NVDA: ATM Straddle - $18, approx. 8%
    • ATVI: ATM Straddle - $5.50, approx. 8%
    • CBOE stock is getting crushed.

Odd Block: More Jan 2019 50 "catastrophe"puts in Tesla Motors (TSLA); Unloading Mar 30 calls in (UNP).

Strategy Block: Mike Tosaw discusses buying the dip

Mail Block: Options question of the week

VIX is moving like crazy today day. It's already blown past 23 and is threatening 35. So let's dial up our $VIX threshold for extra #ZombieApocalypse fun. You buying or selling these levels? Quite Simply: Where will $VIX close on Friday?

  • Crazy Town: 30-35
  • Zombie Apocalypse: >35
  • Crazy: 25-30
  • Mildly Crazy: <25

Listener questions and comments:

  • Question from Matt Williamson - What's up with FB $5 calls (yes, FIVE DOLLAR calls) in Jan 2019? OI climbing past 12k…
  • Question from Johnny Bananas - Quick question. If you buy a put option and the strike price is $5 and the drops to $3. Is it still worth money even if it's $3 under?

Around the Block/Earnings This Week:

  • Thursday - Twitter, Nvidia, Activision/Blizzard
  • Friday - CBOE

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.

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This Week in Futures Options

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

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The Business Show

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

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