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The Option Block


The Option Block All-Star Panel breaks down the latest developments in the options market, analyzes unusual options activity, explains cutting-edge options strategies, answers listener questions and much more. Whether you're an active options trader or just getting started in the options market, The Option Block will keep you informed and entertained.

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Show Archive

Option Block 621: Stumping The RockLobster With Vertical Spreads

Trading Block: Still in earnings season. Yesterday: Target, Cisco. Today: Alibaba, Walmart, Gap. GAP (GPS) - $23.13, ATM Straddle: $1.85, approx. 8% BABA - $120.72, ATM Straddle $6, approx. 5% Dow moves higher amid Trump fears following worst drop of...
Posted May 19th, 2017

Trading Block: Still in earnings season. Yesterday: Target, Cisco. Today: Alibaba, Walmart, Gap.

Odd Block: Calls trade in Pandora Media Inc (P), calls trade in SBA Communications Corp (SBA) and calls trade in Kimberly Clark Corp (KMB)

Strategy Block: Mike discusses his adjustment in his silver collar.

Mail Block/Options question of the week:

There are still a lot of big names reporting in earnings season. Which ones are on your options watchlist this week?

  • Walmart, $WMT
  • Alibaba, $BABA
  • Home Depot, $HD
  • Cisco, $CSCO

Listener questions:

  • Question from Andrew McNichol: Big fan of your Options Bootcamp podcast. I appreciate how you start at square 1 and then walk listeners through every element of options and options trading. Is there another podcast you recommend that does the same but for stocks? Most of the ones I have found are all about what is hot now, or stock picking tips. Essentially, I am looking for a stock trading 101 podcast. If you do not know of any such podcast, what is the best stock 101 book? Thanks!
  • Question from Ejh4isu: If I buy/sell a vertical on SPX (or any equity stock for that matter) and hold until expiration, and SPX settles between the strikes, what happens? Example: sell 2395/2400 and SPX settles at 2397.

Around the Block/This Week in the Market:

  • May 18: Jobless Claims

Option Block 620: Earnings, Questions, OIC Breakdown and More

Trading Block: A bull rally in the market. A short breakdown of the OIC 2017 Conference in Scottsdale, AZ. Earnings Highlights: Tuesday - Home Depot Wednesday - Target Thursday - Alibaba, Walmart, Gap Odd Block: Calls trade in Fairmount Santrol...
Posted May 16th, 2017

Trading Block: A bull rally in the market. A short breakdown of the OIC 2017 Conference in Scottsdale, AZ.

Earnings Highlights:

  • Tuesday - Home Depot
  • Wednesday - Target
  • Thursday - Alibaba, Walmart, Gap

Odd Block: Calls trade in Fairmount Santrol Holdings (FMSA), calls trade in Ocwen Financial Corp (OCN) and calls trade in Home Depot Inc (HD).

Mail Block: Questions, comments, polls and more.

Options Question of the Week: Still a lot of big names reporting in earnings season. Which ones are on your options watchlist this week?

  • Walmart, $WMT
  • Alibaba, $BABA
  • Home Depot, $HD
  • Cisco, $CSCO

Listener question:

 

  • Question from Abdallah Badwan - Hey I am new to options but I have been studying them for awhile and the only thing I don't understand is how do I know what stocks to choose if I want short term gains. In other words I want to be a short term investor and I want to know how to narrow down the stocks I want to invest in on a daily basis. How do I make a watchlist of stocks that I can invest in on a daily basis for short term gains.

Around the Block/ This Week in the Market:

  • May 15: Treasury International, Housing Market Index
  • May 16: Housing Starts, Industrial Production
  • May 18: Jobless Claims

Option Block 619: Look Out Below

Trading Block: Yesterday's earnings: SNAP. Today's Earnings: Macys, Kohls, Nordstrom. Strategy Block: Uncle Mike Tosaw discusses horizontal ratio spreads Mail Block: Listener questions and comments Options Question Of The Week: This volatility...
Posted May 12th, 2017

Trading Block: Yesterday's earnings: SNAP. Today's Earnings: Macys, Kohls, Nordstrom.

Strategy Block: Uncle Mike Tosaw discusses horizontal ratio spreads

Mail Block: Listener questions and comments

Options Question Of The Week: This volatility implosion is starting to make people nervous. $VIX #Limbo Time: How Low Can It Go in 2017?

  • 9.0 is the bottom (38%)
  • No lower than 8.5 (18%)
  • Cannot get below 8.0 (15%)
  • <8.0, Lookout below! (29%)
  • Question from Fund Concept: Doubt that Trump will get rid of H1Bs considering global talent is crucial for U.S economy. Any thoughts?

Around the Block/This Week in the Market:

  • May 11: Jobless Claims, PPI
  • May 12: Consumer Price Index, Retail Sales, Consumer Sentiment

Option Block 618: Time for VIX Limbo

Trading Block: VIX near the single digits at the 10 handle. Is the VIX too low? Earnings: Tesla, Facebook, Disney and EA. Odd Block: Puts trade in iShares MSCI Germany Index (EWI), call buying in JD.com Inc (JD) and calls trade in iShares MSCI South...
Posted May 9th, 2017

Trading Block: VIX near the single digits at the 10 handle. Is the VIX too low? Earnings: Tesla, Facebook, Disney and EA.

Odd Block: Puts trade in iShares MSCI Germany Index (EWI), call buying in JD.com Inc (JD) and calls trade in iShares MSCI South Korean Index (EWG)

Mail Block/Weekend Flash Poll:

These are crazy times for all markets from commodities to equities and volatility. Which crazy level will we hit first?

  • VIX Below 9
  • SPX Above 2500
  • WTI Below 40
  • AAPL Above $160

Listener Question:

  • Question from Paul - Mark, What is your take on the timing of an investment in silver right now? I just got out of the market and I am thinking of investing in silver - either the traditional options or an ETF that tracks physical bullion like SLV or SIVR. I am leaning towards SIVR for its lower expense ratio.
  • Question Real Yute - Greetings, could you please explain how stock option is priced? My Internet provider will not allow me to access other page than Facebook. I only need to know how the pricing work. For example can $2 buy a contract?
  • Comment from Charlie T. - Not really an options guy. I do not need the headache of yet another unknown element aka time. It?s hard enough just picking my stocks, deciding price points, exit points, etc.

Around the Block: Disney, EA and SNAP


Option Block 617: FB and TSLA Earnings Flashback

Trading Block: The Trumpcare bill and French election, how might they affect vol? Tesla: Close - $311, ATM Straddle - $17, approx. 5.5%. Stock off over $20 at the lowest point today, closing off nearly 5%. FB: Close - $151.80, ATM Straddle - $5.63,...
Posted May 5th, 2017

Trading Block: The Trumpcare bill and French election, how might they affect vol? Tesla: Close - $311, ATM Straddle - $17, approx. 5.5%. Stock off over $20 at the lowest point today, closing off nearly 5%. FB: Close - $151.80, ATM Straddle - $5.63, approx. 3.7% Facebook grew its revenue by 49% during the first three months of the year. Thank you to Steve A for the fan art!

Odd Block: Calls trade in Whiting Petroleum Corp (WLL), puts trade in Alerian MLP Index (AMJ) and puts trade in US Silica Holdings Inc (SLCA).

Strategy Block: Uncle Mike Tosaw discusses his most recent trades and moves from Monday.

Mail Block/Earnings Season Flash Poll:

$ZNGA reports earnings today. Stock is trading $2.87. #Options ADV 3K. Do you trade options on cheap stocks?

  • Yes, down to $10
  • Yes, down to $5
  • Rarely
  • No, the stock is an Option

Around the Block/This Week in the Market

  • May 4: Jobless Claims, International Trade, Factory Orders
  • May 5: Unemployment

Option Block 616: AAPL Earnings Preview Plus More Stupids

Trading Block: Green on the screen for the NASDAQ. Looking ahead to AAPL earnings. CNBC's Mr. Wonderful is loving AAPL right now. OCC cleared contract volume down 6% year over year. Odd Block: Review of MGM time stupid from last week, puts trade in...
Posted May 2nd, 2017

Trading Block: Green on the screen for the NASDAQ. Looking ahead to AAPL earnings. CNBC's Mr. Wonderful is loving AAPL right now. OCC cleared contract volume down 6% year over year.

Odd Block: Review of MGM time stupid from last week, puts trade in NBR, calls trade in CBI, and put buyers in NBL.

Mail Block/Options Question of the Week:

#Earnings #PopQuiz - $AAPL $146.50, #Weekly strad. $5 (3.5%). IV30 = 21%, Weekly 155 Call= $.27, 138 Put = $.27 Would you rather?

  • Buy Straddle/Iron Fly
  • Sell Straddle/Iron Fly
  • Buy Call
  • Buy Put

Listener questions and comments:

  • Question from Ron: I hear you mention the term stupid, "That's a put stupid," or "That's a call stupid." Is that strategy or an term of endearment? Thanks Ron
  • Question from Let's make best: Which broker is the best for option trading?
  • Question from Sharkcake: I've been approved to trade options by my Brokerage but I have yet to execute my first trade. What trade do you recommend?

Around the Block/This Week in the Market

  • May 1: Personal Income
  • May 1: Construction Spending
  • May 3: FOMC Meeting
  • May 4: Jobless Claims
  • May 4: International Trade
  • May 4: Factory Orders
  • May 5: Unemployment

Earnings this week: Quarterly earnings continue to roll with one of the biggest names of the season set to announce Tuesday after the close. Technology giant Apple Inc. is set to release their latest numbers and the way they are perceived could push the stock to new highs like last release. In addition, there are other big names announcing as well including Tesla Motors and Pfizer.


Option Block 615: AMZN, GOOGL, SBUX Earnings, Plus Epic Strategy Block

Trading Block with very special guest co-host: Henry Schwartz, Trade Alert Earnings today after the bell: Alphabet/GOOGL - $889, ATM Straddle - $29, approx. 3.2% Amazon - $921.50, ATM Straddle - $37.50, approx. 4% Intel - $37.25, ATM Straddle -...
Posted April 28th, 2017

Trading Block with very special guest co-host: Henry Schwartz, Trade Alert

Earnings today after the bell:

  • Alphabet/GOOGL - $889, ATM Straddle - $29, approx. 3.2%
  • Amazon - $921.50, ATM Straddle - $37.50, approx. 4%
  • Intel - $37.25, ATM Straddle - $1.20, approx. 3.2%
  • Starbucks - $61.75, ATM Straddle - $2.40, approx. 4%

Odd Block: Calls trade in Applied Optoelectronics Inc. (AAOI), calls trade in Nabors Industries Ltd (NBR), and calls trade in Yandex NV (YNDX)

Strategy Block: Uncle Mike Tosaw discusses the six factors of option pricing.

Around the Block/Question of the Week:

Earnings Season is upon us. Big names are reporting soon. Which is your pick for the largest % move post-earnings?

  • $AMZN, 36%
  • $GOOGL, 26%
  • $CMG, 30%
  • $MSFT, 8%

Earnings this week: 3M, ATT, Chipotle, JetBlue, Xerox, Boeing, PepsiCo, Nasdaq, Google, Amazon, Ford, Intel, Southwest, Starbucks, Exxon, General Motors.


Option Block 614: Unleash the Liberator Puts

Trading Block: Earnings today Alcoa: $33, ATM Straddle $2 - approx. 6% Chipotle: ATM Straddle $25.25, approx. 5.4% VIX 'fear' gauge plummets as French election results spark global relief rally. Odd Block: Calls and puts trade in GGP Inc. (GGP),...
Posted April 25th, 2017

Trading Block: Earnings today

  • Alcoa: $33, ATM Straddle $2 - approx. 6%
  • Chipotle: ATM Straddle $25.25, approx. 5.4%
  • VIX 'fear' gauge plummets as French election results spark global relief rally.

Odd Block: Calls and puts trade in GGP Inc. (GGP), puts trade in Excelon Corp. (EXC) and calls trade in MGM Resorts Intl. (MGM).

Mail Block: QuestionoftheWeek:

Earnings Season is upon us. Big names are reporting soon. Which is your pick for the largest % move post-earnings?

  • $AMZN
  • $GOOGL
  • $CMG
  • $MSFT

Listner questions and comments:

  • Follow-up comments from GameDay Dog:

You nailed it. I was assigned on 2 of the options. I knew that, but the (-) in my margin account was "alarming". My main thought was losing more than my spread safety net. The math did not make sense immediately. Glad to ask a ? that made others ask ?s..

My bad...just heard episode 608...Yeah, I got assigned 2 of 3 my put spread.. Way too early! I will get into better detail next time. Episode 208 had an excellent answer. That big negative number was stupid scary! I closed all the positions & sold the stock.. the 1 short put & 3 long puts made it a back ratio spread when I closed it.. it's funny now!  PS - thanks for managing to get my questions on air.. once I closed the positions, I was able to sleep that night!!! Feels like I lost more than $300 though. By getting assigned the shares, it felt like I had more at risk and loss was influenced by the price of the underlying instead of the option. If that makes sense. Seeing the large margin number was not pleasant.. My credit spread had a 30% chance of being ITM when I sold it too! Hahaha..

  • Question from Lesnod -How do you get out of the straddles? One side of a straddle is always a loss correct?

Around the Block/This Week in the Market

  • Apr 25: New Home Sales, Consumer Confidence
  • Apr 27: Jobless Claims, International Trade, Pending Home Sales
  • Apr 28: GDP, Consumer Sentiment

 


Option Block 613: The Shiny New PHLX

Trading Block featuring guest co-host Jill Malandrino, Global Markets Reporter NASDAQ. The brand spanking new PHLX trading floor. SPX and the VIX North Korea and Trump meeting Italian PM Odd Block: Call rolls trade in Walmart (WMT), puts trade in...
Posted April 21st, 2017

Trading Block featuring guest co-host Jill Malandrino, Global Markets Reporter NASDAQ.

  • The brand spanking new PHLX trading floor.
  • SPX and the VIX
  • North Korea and Trump meeting Italian PM

Odd Block: Call rolls trade in Walmart (WMT), puts trade in Bank of America (BAC) and ratio call spreads trade in Starbucks (SBUX)

Strategy Block: Uncle Mike Tosaw discusses the importance of gamma.

Around the Block: What are we looking at that might move the markets next week?


Option Block 612: NFLX the Widowmaker Wimps Out

Trading Block: VIX preparing for the French election. Earnings today (after the bell): United Airlines - $UAL - 70.37USD, Price increase 1.29 (1.87%), ATM Straddle - $2.50, approx. 3.5% Netflix - $NFLX, 146.56USD Price increase 3.64 (2.55%), ATM...
Posted April 18th, 2017

Trading Block: VIX preparing for the French election.

Earnings today (after the bell):

  • United Airlines - $UAL - 70.37USD, Price increase 1.29 (1.87%), ATM Straddle - $2.50, approx. 3.5%
  • Netflix - $NFLX, 146.56USD Price increase 3.64 (2.55%), ATM Straddle - $12, approx. 8%

Odd Block: Call spread selling in Thor Industries Inc. (THO), call buying in Texas Instruments Inc. (TXN), and put spread buying in SPDR Euro STOXX 50 ETF (FEZ).

Mail Block/Options #QuestionOfTheWeek

With $TSLA threatening $315 how are you leaning in your #Options trades this month? Would you rather:

  • Buy 1-month $300 put
  • Buy 1-month $330 call
  • Sell 1-month $300 put
  • Staying far away from it

Listener questions and comments concerning Game Day Dog question:

  • Question from Elio - Confused. How did that guy end up with only two of his short puts getting assigned to him? If he was short 3 should not all of them have been assigned?
  • Question from AddJack - You answered a question from Gamedaydog on Tuesday's episode about a put spread gone bad. Is this a reason not to trade spreads if these sort of complications can pop up? Think I would rather stick with stock thank you.
  • Question from Tony Rather - Fun show. Thanks to you and Rock Lobster and Uncle Mike for educating, informing and educating us each week. I have a follow up to the listener mail question from last show in which the listener and Uncle Mike said he was long stock against his put spread. They both said his stock would expire after seven days. But stock does not have an expiration date. Please clarify as I am obviously missing something.

Around the Block: What's on our trading screens for the rest of the week?

Earnings!

  • Bank of America
  • Charles Schwab

This week in the market:

  • Apr 18: Housing Starts, Industrial Production
  • Apr 19: Beige Book
  • Apr 20: Jobless Claims
  • Apr 21: Existing home Sales

Option Block 611: More All-Stars than You Can Handle

Trading Block: Today we have very special guest co-hosts: Nick Howard, QuickStirke. Ophir Gottlieb, CMLVIZ.com VIX blowing out the down side MOAB bomb drops Commodity update Uncle Mike's silver collar Odd Block: Puts trade in iShares Barclays 7-10...
Posted April 14th, 2017

Trading Block: Today we have very special guest co-hosts: Nick Howard, QuickStirke. Ophir Gottlieb, CMLVIZ.com

  • VIX blowing out the down side
  • MOAB bomb drops
  • Commodity update
  • Uncle Mike's silver collar

Odd Block: Puts trade in iShares Barclays 7-10 year bond ETF (IEF), puts trade in Hanesbrands Inc (HBI), calls trade in Whiting Petroleum Corp (WLL).

Strategy Block: Uncle Mike Tosaw discusses trading over a long weekend.

Mail Block/Options #QuestionOfTheWeek

With $TSLA threatening $315 how are you leaning in your #Options trades this month? Would you rather:

  • Buy 1-month $300 put
  • Buy 1-month $330 call
  • Sell 1-month $300 put
  • Staying far away from it

Listener Question:

Question from AndersonInvesting - New to options. I use TD Ameritrade but currently I do not like it for options. I was looking at Charles Schwab. Any recommendations for an options newbie? Also looking at AMD puts to protect gains (averaged in at 13.23. Earnings date has been announced for May 1st.) Any suggestions there?

Around the Block/This Week in the Market:

  • April 14: Consumer Price Index, Retail Sales, Consumer Sentiment

Option Block 610: TSLA, VIX and More

Trading Block: Tesla is now more valuable than GM. Odd Block: Calls trade in MOMO Inc. (MOMO), calls trade in SunPower Corp. SPWR and calls trade in First Solar, Inc. FSLR. Mail Block/Options QuestionOfTheWeek With $TSLA threatening $315 how are you...
Posted April 11th, 2017

Trading Block: Tesla is now more valuable than GM.

Odd Block: Calls trade in MOMO Inc. (MOMO), calls trade in SunPower Corp. SPWR and calls trade in First Solar, Inc. FSLR.

Mail Block/Options QuestionOfTheWeek

With $TSLA threatening $315 how are you leaning in your #Options trades this month? Would you rather:

  • Buy 1-month $300 put
  • Buy 1-month $300 call
  • Sell 1-month $300 put
  • Staying far away from it

Around the Block: What is lighting up our trading screens for the coming week?


Option Block 609: VRX, Salvaging Good Trades, Umbrage and More

Trading Block: The 100-year anniversary of the vote to join WWI. VIX pops after Syrian attack. Valeant Pharmaceuticals International, VRX + $0.16 to $9.66. Odd Block: Puts trade in iPath S&P 500 VIX Short Term Future ETN (VXX), puts trade in Ford...
Posted April 7th, 2017

Trading Block: The 100-year anniversary of the vote to join WWI. VIX pops after Syrian attack. Valeant Pharmaceuticals International, VRX + $0.16 to $9.66.

Odd Block: Puts trade in iPath S&P 500 VIX Short Term Future ETN (VXX), puts trade in Ford Motor Co. (F) and calls trade in JetBlue Airways Corp (JBLU).

Strategy Block: Uncle Mike Tosaw discusses his most recent trade in SPY.

Mail Block: #Options #BrokerMadness

  • WINNER IS - Lightspeed

Around the Block/This Week in the Market:

  • Apr 7: Unemployment

Option Block 608: TSLA, FIT and BrokerMadness Champion

Trading Block: New 52-week highs (132 new highs today): Amazon Inc. (AMZN + $2.62 to $889.16), Red Hat Inc. (RHT + $0.88 to $87.33), Veeva Systems Inc. (VEEV + $0.01 to $51.29), Tesla (TSLA + $11. 11 to $289.41). Tesla Inc is now more valuable than...
Posted April 4th, 2017

Trading Block: New 52-week highs (132 new highs today): Amazon Inc. (AMZN + $2.62 to $889.16), Red Hat Inc. (RHT + $0.88 to $87.33), Veeva Systems Inc. (VEEV + $0.01 to $51.29), Tesla (TSLA + $11. 11 to $289.41). Tesla Inc is now more valuable than Ford Motor Company, and could very well surpass General Motors Company this week. General Motors Co. (GM - $1.55 to $33.81), Ford Motor Company (F - $0.34 to $11.30).

Odd Block: Calls trade in iShares MSCI Hong Kong Index (EWH), puts trade in Fitbit Inc. (FIT) and calls trade in Carmax, Inc (KMX).

Mail Block: #Options #BrokerMadness finals ARE ON!

  • Who will claim the prize of your favorite broker: @OptionsHouse or @LSFinancial?
  • The Winner is - Lightspeed
  • Question from Game Day Dog - Aww man! My vertical put spread has gone bad. I have +3 options at 61.5 and sold -3 at 62.5 ... Yesterday it gapped down to 50. I now have +200 shares of LULU in my account +3 put options at 61.5 and -1 put option at 62.5. I thought it was a $300 max risk spread. Do I have to do anything? Do I sell the shares? Everything expires in 7 days. Please help. Thanks! So I learned about selling shares and back ratio spreads and even got an $19 credit.

 Around the Block/This Week in the Market:

  • Apr 4: International Trade, Factory Orders
  • Apr 5: FOMC Minutes
  • Apr 6: Jobless Claims
  • Apr 7: Unemployment

Option Block 607: LULU Puts & House Money Rolls

Trading Block: AAPL records. LULU craps the bed. Stock market climbs after economic data, with banks in lead. Tesla produces more PR noise. Odd Block: Calls trade in ConocoPhillips (COP), puts trade in Lululemon Atheltica Inc (LULU) and call trade in...
Posted March 31st, 2017

Trading Block: AAPL records. LULU craps the bed. Stock market climbs after economic data, with banks in lead. Tesla produces more PR noise.

Odd Block: Calls trade in ConocoPhillips (COP), puts trade in Lululemon Atheltica Inc (LULU) and call trade in CIT Group (CIT)

Strategy Block: Uncle Mike Tosaw discusses Roth IRA vs a traditional IRA

Around the Block/This Week in the Market: Mar 31: Personal Income, Consumer Sentiment


Option Block 606: The Eye of Sauron is Fixed on Puts

Trading Block: Vol skew gets dumped. Should technical analysis be applied to VIX? Stock-market fear threatens a return, as Dow stares at longest losing streak in 6 years. Odd Block: Puts trade in SPDR KBW Regional Banking (KRE), puts trade in GoldCorp...
Posted March 28th, 2017

Trading Block: Vol skew gets dumped. Should technical analysis be applied to VIX? Stock-market fear threatens a return, as Dow stares at longest losing streak in 6 years.

Odd Block: Puts trade in SPDR KBW Regional Banking (KRE), puts trade in GoldCorp (GG), puts trade in Bank of New York Mellon Corp (BK)

Mail Block: Quizzes, question and more.

Options #BrokerMadness tournament going on now. Current #Options #BrokerMadness battle (Monday/Tuesday). @OptionsHouse v. @TradingBlock https://twitter.com/Options/status/846361692544024577

Question from Zanzibar - What is max pain? Does it matter?

Comment from VoiceOfReason1 -Options seems far too complicated - too much thinking involved. I follow the penny stock community - they are usually dead accurate.

Question from Symphox -If you trade options correctly, is it true you will always have the advantage over outright stock purchase/shorting?

Around the Block:


Option Block 605: Broker Madness Is Taking Over

Trading Block: Earnings today - GameStop (GME). Why the bull run will stay in great shape even as the health bill troubles traders. Odd Block: Calls roll in Fireeye Inc (FEYE), calls trade in Vale SA (VALE) and calls trade in GGP Inc. (GGP). Strategy...
Posted March 24th, 2017

Trading Block: Earnings today - GameStop (GME). Why the bull run will stay in great shape even as the health bill troubles traders.

Odd Block: Calls roll in Fireeye Inc (FEYE), calls trade in Vale SA (VALE) and calls trade in GGP Inc. (GGP).

Strategy Block: Uncle Mike Tosaw discusses his latest put spread trade.

Mail Block: Quizzes, questions, comments and more.

With $SKEW so high we all need to prepare for the impending #ZombieApocalypse. What's your #Zombie weapon of choice?

  • Sword/Axe
  • Club/Hammer
  • Flame Thrower
  • Rifle/Shotgun

Options #BrokerMadness tournament going on now. Today's #Options #BrokerMadness battles:

Around the Block:

Earnings this week:

  • Tuesday - Nike, FedEx

This Week in the Market:

  • Mar 24: Durable Goods

Option Block 604: Does a High Skew Signal the Zombie Apocalypse

Trading Block: Apple continues to rally. NASDAQ touches fresh intra-day record, but stocks fight for traction. CBOE Skew Index trending higher. It's about time. Odd Block: Puts trade in GameStop Inc. (GME), call spreads trade in FireEye Inc. (FEYE)...
Posted March 21st, 2017

Trading Block: Apple continues to rally. NASDAQ touches fresh intra-day record, but stocks fight for traction. CBOE Skew Index trending higher. It's about time.

Odd Block: Puts trade in GameStop Inc. (GME), call spreads trade in FireEye Inc. (FEYE) and puts trade in Grupo Televisa SAB (TV).

Mail Block: Polls, upsets, questions, and more.

Options #BrokerMadness tournament going on now.

  • Tough battle today in #options #BrokerMadness as @optionsXpress takes on @IBKR, Who will emerge to take on @TradingBlock?
  • @LSFinancial crushing @tradier

Options #QuestionoftheWeek: In #BrokerMadness spirit, lets bring the fight to exchanges. What is your fav? Where do you send your business?

  • CBOE/BATS
  • NYSE/Arca/AMEX
  • NASDAQ/PHLX/ISE
  • Other: BOX,MIAX, etc

Listener question:

  • Question from JVao - Sell put + buy call = long delta exposure = cheaper than buying the underlying = maximizing skew = why does everyone not do this?

Around the Block: What's coming up this week?

Earnings!

  • Tuesday - Nike, FedEx
  • Thursday - GameStop

This week in the market:

  • Mar 22: Existing Home Sales
  • Mar 23: Jobless Claims, New Home Sales
  • Mar 24: Durable Goods

Option Block 603: Musk Magic

Trading Block: The stock market slipped following Fed rate-hike rally, declining in oil prices. The U.S. equity benchmarks slipped Thursday as investors reconsidered the Wednesday rally. Odd Block: Calls trade in GoPro Inc (GPRO), calls trade in Hecla...
Posted March 17th, 2017

Trading Block: The stock market slipped following Fed rate-hike rally, declining in oil prices. The U.S. equity benchmarks slipped Thursday as investors reconsidered the Wednesday rally.

Odd Block: Calls trade in GoPro Inc (GPRO), calls trade in Hecla Mining Co. (HL) and calls trade in Momo Inc (MOMO)

Strategy Block: Andrew Giovinazzi discusses closing trades in his strategy block debut.

Mail Block: Options #QuestionoftheWeek

$VIX = 11.50, $SNAP IV30 =56, $AAPL IV30 = 14, $OIV= 33. If you had to buy #Volatility-which is the best value?

  • 22% - $SNAP - aka Tween Vol
  • 19% - $AAPL - aka #Iphone Vol
  • 35% - $VIX - aka $VIX
  • 24% - $OIV -aka #Crude $VIX

Listener questions and comments:

  • Question from NanFran - Tomorrow is a triple witching hour. What does that mean for options?
  • Question from Goose - What is the difference between weekly options and standard options?

Around the Block/This Week in the Market: Mar 17: Industrial Production, Consumer Sentiment


Option Block 602: The Ides of Yellen

Trading Block: Are SNAP options set for strong demand on their market debut? Fed kicks off tomorrow. Odd Block: Puts trade in Encana Corp. (ECA), calls trade in Texas Instruments Inc. (TXN) and calls trade in Rio Tinto PLC (RIO) Mail Block: Options...
Posted March 14th, 2017

Trading Block: Are SNAP options set for strong demand on their market debut? Fed kicks off tomorrow.

Odd Block: Puts trade in Encana Corp. (ECA), calls trade in Texas Instruments Inc. (TXN) and calls trade in Rio Tinto PLC (RIO)

Mail Block:

Options #QuestionOfTheWeek - $VIX = 11.50, $SNAP IV30 = 56, $AAPL IV30 = 14, $OIV = 33. If you had to buy #Volatility, which is the best value?

  • $SNAP - aka Tween Vol
  • $AAPL - aka #iPhone Vol
  • $VIX - aka $VIX
  • $OIV - aka #Crude $VIX

Listener questions and comments:

  • Question from Anthony Carter - Snap puts, what the heck!?
  • Question from Dr X - I just saw The Big Short, what do you guys think of it? Also, check out Logan if you have not already.

Around the Block: Beware the Ides of Yellen. Earnings: Del Taco and Oracle.


Option Block 601: The Umbrage Hour

Trading Block: What's going on in the market? The BBI explained. What would drive the VIX up? Interactive Brokers to Stop Options Market-Making Activities. Snap options set for strong demand on market debut. Crude oil prices fall below $50 as US...
Posted March 10th, 2017

Trading Block: What's going on in the market?

Odd Block: Puts trade in ILG Inc (ILG), puts trade in SPDR S&P Oil and Gas (XES) and puts call and puts trade in SPDR S&P Oil and Gas (XOP).

Strategy Block: Uncle Mike Tosaw discusses credit spreads.

Mail Block: Listener questions and comments

  • Question from C.J. Magnuson: Is Interactive Brokers basically being squeezed by pay for play?
  • Question from Amy: What is the shortest expiration available for plain vanilla options?

Around the Block/This Week in the Market:

  • Mar 10: Unemployment, Export Prices

Option Block 600: SNAP Straddles and Earnings Bets

Trading Block: OCC announced that total cleared contract volume in February was 333,411,251 contracts, 1% from February 2016 volume. Index options volume was up 11% with 39,247,030 contracts in February. An escalating broker price war has begun. Odd...
Posted March 7th, 2017

Trading Block: OCC announced that total cleared contract volume in February was 333,411,251 contracts, 1% from February 2016 volume. Index options volume was up 11% with 39,247,030 contracts in February. An escalating broker price war has begun.

Odd Block: Puts trade in iShares Iboxx $High Yield Corp (HYG), calls trade in NRG Energy, Inc. (NRG) and calls trade in Dicks Sporting Goods (DKS).

Mail Block: Options #QuestionOfTheWeek #Oscars Edition.

#WarrenBeatty screwed up Best Picture. What's your biggest #Options screwup?

  • 37% - Held onto shorts too long
  • 37% - Time Decay killed me
  • 11% - Gamma Exploded In My Face
  • 15% - Vega Snuck up on My Delta

Listener replies:

  • Comment from Matt Benson - Calls in TSLA last week, lol (in response to OQOTW)
  • Comment from John Dakota - Too soon to tell. My one mistake was putting an Iron Butterfly on wrong had to lose 20 and a DT for it. Just took off BBY for 200+!

#QuestionOfTheWeek, part deux

SNAP #Options arrive Friday. Assuming $SNAP is still $25 - price the 1-week straddle exp. 3/17 (aka how much movement)

  • Between $1 - $2
  • Between $2 - $3
  • Between $3 - $4
  • Over $4

Listener questions and comments:

  • Question from Hopgrower - Mark and The meatball, love your shows. My question is as follows: How much heart burn does this thought process give you. I have a directional bias and I buy a slightly in the money call 45 to 60 days out. The stock moves in my favor then stalls or retraces slightly. I then turn it into a vertical. Please fire away. Always learning. Thanks, Hopgrower
  • Question from Tom Drake - Whats up with Mike's SLV collar?
  • Question from Sean - You have discussed closing positions prior to earnings on past shows. Why would I take an OTM options off the table before the announcement? Is that not exactly when I want to have the option?

Around the Block:/This Week in the Market:

  • Mar 6: Factory Orders
  • Mar 7: International Trade
  • Mar 8: Productivity and Costs
  • Mar 9: Jobless Claims
  • Mar 10: Unemployment
  • Mar 10: Export Prices

Option Block 599: Pricing SNAP Straddles

Trading Block featuring special guest Ophir Gottlieb, CEO of Capital Market Laboratories, Editor in Chief @CMLviz SNAP: The first big IPO of the year is off to the races. Supposed to list at $17, opened at $24 and traded up to nearly $26, up over 50%...
Posted March 3rd, 2017

Trading Block featuring special guest Ophir Gottlieb, CEO of Capital Market Laboratories, Editor in Chief @CMLviz

SNAP: The first big IPO of the year is off to the races. Supposed to list at $17, opened at $24 and traded up to nearly $26, up over 50% from the listing price.

Earnings earlier in the week:

  • Tuesday - Target
  • Wednesday - Best Buy
  • Earnings today: After the bell - Costco

Odd Block: Puts trade in Shake Shack Inc (SHAK), calls trade in Sirius XM Holdings (SIRI) and calls trade in Dollar Tree (DLTR).

Strategy Block: Uncle Mike Tosaw discusses profit-taking scenarios.

Mail Block: Options #QuestionOfTheWeek #Oscars Edition.

#WarrenBeatty screwed up Best Picture. What's your biggest #Options screwup?

  • 37% - Held onto shorts too long
  • 37% - Time Decay killed me
  • 11% - Gamma Exploded In My Face
  • 15% - Vega Snuck up on My Delta

Options Pop Quiz - If $SNAP opens at $17 what price would you give the ATM straddle expiring 3/10? AKA how much movement do you expect?

  • Between $1 - $2
  • Between $2 - $3
  • Between $3 - $4
  • Over $4

Around the Block/This Week in the Market: It is a very heavy week as far as economic reports go with a bulk of them coming on Tuesday and Wednesday. Where did February go? Mar 2 - Jobless Claims


Option Block 598: PCLN and the Dangers of Assignment

Trading Block: Dow sets sights on 12th straight record close. PCLN - $1631.25, ATM straddle approx. $69, approx. 4.2%. Odd Block: Calls trade in CurrencyShares Euro Trust (FXE), calls trade in SPDR Euro Stoxx 50 (FEZ) and calls trade in Square Inc....
Posted February 28th, 2017

Trading Block: Dow sets sights on 12th straight record close. PCLN - $1631.25, ATM straddle approx. $69, approx. 4.2%.

Odd Block: Calls trade in CurrencyShares Euro Trust (FXE), calls trade in SPDR Euro Stoxx 50 (FEZ) and calls trade in Square Inc. (SQ).

Mail Block: Questions, polls, and more.

Options #QuestionOfTheWeek - #Oscars Edition. #WarrenBeatty screwed up Best Picture. What is your biggest #Options screwup?

  • Held onto shorts too long
  • Time decay killed me
  • Gamma exploded in my face
  • Vega snuck up on my delta

Listener questions and comments

  • Question from Gabe Rich - Hi guys. Do you know of any instance where automatic assignment/exercise by the OCC failed? I am selling a lot of put spreads lately and I have this nightmare that if the stock drops (market crush) and my spread ends up big time in the money. It will be assigned the short leg but not exercised the long leg. Thus creating a huge stock position that might be fatal. I just wonder if that ever happened, something along the lines of flash crush but for options. I am assuming this automatic assignment/exercise process is computerized, and it could be subject to failures. This could be an interesting discussion with your panel of experts, with decades of experience! Thanks, and looking forward for some thoughts.
  • Comment from Game Daydog -Just had a successful vertical spread and wanted to thank you for encouraging me to step out of my comfort zone and try different option strategies. That Iron Condor is next, even though it sounds like a move from an old kung-fu movie!

Around the Block:

This Week in the Market:

  • Feb 28 - GDP, International Trade, Consumer Confidence
  • Mar 1 - Construction Spending, Beige Book
  • Mar 2 - Jobless Claims

Earnings this week:

  • Tuesday - Target
  • Wednesday - Best Buy
  • Thursday - Costco

Option Block 597: The Impossible VIX Debate

Trading Block: Earnings! Earlier this week: Tuesday - Home Depot, Macy's, Wal-Mart; Wednesday - Tesla, Fitbit TSLA: Close - $273.51, ATM straddle - $17.16, approx. 6%, Open - $264.08, down 3.4% FITBIT: Close - $5.88, ATM straddle - $.76, approx. 13%,...
Posted February 24th, 2017

Trading Block: Earnings!

  • Earlier this week: Tuesday - Home Depot, Macy's, Wal-Mart; Wednesday - Tesla, Fitbit
  • TSLA: Close - $273.51, ATM straddle - $17.16, approx. 6%, Open - $264.08, down 3.4%
  • FITBIT: Close - $5.88, ATM straddle - $.76, approx. 13%, Open - $5.92, effectively unchanged
  • Earnings today: Before the bell - Kohls; After the bell - Nordstrom, BIDU, Herbalife
  • NYSE plans a trial run for Snap IPO.

Odd Block: Calls trade in Carmax Inc (KMX), calls trade in Scientific Games Corp (SGMS) and calls trade in Fireeye Inc (FEYE)

Strategy Block: Uncle Mike Tosaw discusses specifics in a covered call wheel strategy

Mail Block: Quiz, questions and comments

Options #QuestionOfTheWeek - $VIX has already hit single digits under @realDonaldTrump. How low will it get during the rest of his term?

  • It will not break 10 again
  • Between 9 -10
  • Between 8 - 9
  • Below 8

Listener feedback:

  • Question from Bigtonutz - 9372 $WY Jul21 35 calls went up in 1 block on the PHLX. Are they looking for this to probably going above 35 by July? Oh another question since I asked the other one and you did not answer, ahhh why do insiders keep selling shares? Do they feel this will drop for some reason? Just want to get your opinion.

Around the Block: Earnings Friday: JC Penney; Earnings next week: Best Buy, Costco, Target


Option Block 596: Disastrous 1x3 Call Spreads

Trading Block: Earnings earlier this week. Tuesday - Potbelly, T-Mobile Wednesday - PepsiCo, Inc., Cisco Systems, Inc., Groupon, Marriott International Earnings today. AVP - Crush, stock down 17% intraday. Odd Block: Calls trade in Himax Technologies,...
Posted February 17th, 2017

Trading Block: Earnings earlier this week. Tuesday - Potbelly, T-Mobile
Wednesday - PepsiCo, Inc., Cisco Systems, Inc., Groupon, Marriott International
Earnings today. AVP - Crush, stock down 17% intraday.

Odd Block: Calls trade in Himax Technologies, Inc (HIMX), Calls trade in Health Care SPDR (XLV), Calls and puts trade in Mondelez International Inc (MDLZ).

Mail Block:
#Options #QuestionOfTheWeek - Trading single #Calls and #Puts is fine, but smart #Options traders use spreads. What is your go-to spread?
- Vertical/Ratio Vertical
- Calendar/Diagonal
- Butterfly/ Iron Butterfly
- Iron Condor
Question from Gramercy - So I am interested in $ATVI ahead of earnings. I buy 1 Feb 39.50 call for $1.50. The stock opens up the next day and I sell it out for $5. What am I missing? Why does everyone say this earnings stuff is so hard?
Question from NIZ - Are there options on Snap?
*Note from IPO filing - ?Like many burgeoning tech startups, Snap warned that it ?may never achieve or maintain profitability.?
Question from Mark Tucker - You think MaxPain was the reason to hold $AAPL below $132.40 for closing? Rest of Nasdaq seemed bright green. Thoughts? Thank you.
Question from Richard R. - At 14:00 of episode 553 you stat that a $6 straddle was pricing an 8% move following earnings. Is this just the current ATM straddle?


Around the Block: The market will be closed Monday, February 20 for Presidents Day.
This week in the market - Feb 16: Jobless Claims, Housing Starts
Earnings next week - TSLA, BIDU


Option Block 595: Rise of the Yield Hunters

Trading Block: Earnings! Apple did not reach all time highs, but its close price is an all time highs. All time highs happened on April 28, 2015 @ 134.54. MIAX launches 15th options exchange with MIAX-Pearl. ICE Cool on Options: Speaking at the Credit...
Posted February 14th, 2017

Trading Block: Earnings! Apple did not reach all time highs, but its close price is an all time highs. All time highs happened on April 28, 2015 @ 134.54. MIAX launches 15th options exchange with MIAX-Pearl. ICE Cool on Options: Speaking at the Credit Suisse Financial Services Forum in Miami Beach, Fla., Jeff Sprecher, founder, CEO, and chairman of ICE, painted a less than rosy picture of the options market.

Odd Block: Calls trade in True Car Inc (TRUE), calls trade in Union Pacific Corp (UNP) and puts trade in Amgen, Inc (AMGN)

Mail Block: Questions, comments, quizzes.

Options #QuestionOfTheWeek - Trading single #Calls and #Puts is fine, but smart #Options traders use spreads. What is your go-to spread?

  • Vertical/Ratio Vertical
  • Calendar/Diagonal
  • Butterfly/ Iron Butterfly
  • Iron Condor

Listener question:

Question from Game Day Dog - Hi. I have done well buying calls & puts, but have been practicing with credit & debit vertical spreads - see the DPZ trade picture. I am worried about max risk. How is this different than selling a naked option if my 195 protection is OTM at expiration? Can you discuss the "surprises" or things to watch for with vertical spreads? Thanks & great show.

Around the Block: What is on the radar for the rest of this week?

Earnings this Week:

  • Tuesday: Potbelly, T-Mobile
  • Wednesday: PepsiCo, Inc., Cisco Systems, Inc., Groupon, Marriott International
  • Thursday: Time Inc., Waste Management

This Week in the Market

  • Feb 14: Producer Price Index
  • Feb 15: Consumer Price Index, Retail Sales, Industrial Production, Business Inventories
  • Feb 16: Jobless Claims, Housing Starts

Option Block 594: Sports Retail Is Sexy. Who Knew?

Trading Block: Oil prices prop up Wall Street; NASDAQ hits record high. MIAX launches 15th options exchange with MIAX-Pearl. Earnings Today: Before the bell: Coca-Cola, Dunkin Brands Group, Twitter, Viacom After the bell: Activision, Nvidia, Zinga ...
Posted February 10th, 2017

Trading Block: Oil prices prop up Wall Street; NASDAQ hits record high. MIAX launches 15th options exchange with MIAX-Pearl.

Earnings Today:

  • Before the bell: Coca-Cola, Dunkin Brands Group, Twitter, Viacom
  • After the bell: Activision, Nvidia, Zinga

DIS (earnings on Tuesday): Close: $109 - ATM straddle: $3.50, approx. 3.2%; Open: $109.52 - traded as high as $11.42, up 2.2%

Other earnings earlier this week:

  • Tuesday:General Motors, Walt Disney Company, Take Two Interactive
  • Wednesday: GrubHub, Time Warner

Odd Block: Calls trade in Foot Locker Group (FL), calls trade in Chesapeake Energy Co (CHK) and calls trade in Dicks Sporting Goods Inc (DKS)

Strategy Block: Uncle Mike Tosaw discusses his recent trades in Chevron.

Mail Block: Options #QuestionOfTheWeek - With so many different #Options expiration cycles available (weekly, etc) - which duration do you prefer?

  • Longer than 1 month
  • Monthly
  • Weekly
  • Daily/Intra-day

Listener Questions

  • Question from EdwardUhs - Hey guys, what do you think about CMG? (from Mixlr chat on Monday 2/6)

Around The Block/This Week in the Market:

  • Quarterly earnings continue to roll in as expected economic reports are very slow up until Friday.
  • Feb 9: Jobless Claims
  • Feb 10: Import and Export Prices, Consumer Sentiment, Treasury Budget

 


Option Block 593: Can You Trade Options On The Superbowl

Trading Block: Earnings Today Before the bell - Hasbro After the bell - CBOE Holdings, Twenty-First Century Fox But there is more than just earnings. OCC announces Total Cleared Contract Volume was down 9% in January. The Snapchat IPO looms ahead....
Posted February 7th, 2017

Trading Block: Earnings Today

  • Before the bell - Hasbro
  • After the bell - CBOE Holdings, Twenty-First Century Fox

But there is more than just earnings. OCC announces Total Cleared Contract Volume was down 9% in January. The Snapchat IPO looms ahead.

Odd Block: Calls trade in S&P 500 VIX Short Term (VXX), puts trade in T-Mobile Inc (TMUS), alls trade in TrueCar Inc (TRUE).

Mail Block: Options #QuestionOfTheWeek

Time for another Earnings #StraddleBattle : Which stock will outperform its straddle by the largest margin?

  • 35% - Apple (AAPL) (ACTUAL WINNER)
  • 13% - Facebook (FB)
  • 39% - Amazon (AMZN)
  • 13% - Chipotle (CMG)

Options #QuestionOfTheWeek - With so many different #Options expiration cycles available (weekly, etc) - which duration do you prefer?

  • Longer than 1 month
  • Monthly
  • Weekly
  • Daily/Intra-day

Listener question:

  • Question from In-to-it - Why can I not trade options on the Super Bowl?

Around the Block: Earnings!

  • Tuesday: General Motors, Walt Disney Company, Take Two Interactive
  • Wednesday: GrubHub, Time Warner
  • Thursday: Twitter, Coca-Cola, Dunkin Brands Group, Activision, Nvidia, Zinga

This Week in the Market:

  • Feb 7: International Trade
  • Feb 9: Jobless Claims
  • Feb 10: Import and Export Prices, Consumer Sentiment
  • Feb 10: Treasury Budget

Option Block 592: The Apple of Yesteryear

Trading Block: Earnings edition AAPL: Closed: $121.35, ATM Straddle: $4.25 approx. 3.5%. Opened: $127.09 - up 4.7%, traded as high as $130.49 - up 7.5%. iPhone 7 sales blew away estimates. Apple still sitting on over a quarter of a trillion in cash -...
Posted February 3rd, 2017

Trading Block: Earnings edition

  • AAPL: Closed: $121.35, ATM Straddle: $4.25 approx. 3.5%. Opened: $127.09 - up 4.7%, traded as high as $130.49 - up 7.5%. iPhone 7 sales blew away estimates. Apple still sitting on over a quarter of a trillion in cash - excluding debt.
  • FB: Closed: $133.23, ATM Straddle: $6.70 approx. 5%. traded as high as $135.29 - up 1.5%, today down to $130.70, approx. 2%

After the bell: Amazon, Chipotle, Visa, GoPro

  • AMZN: $839.75, ATM Straddle: $41.50 - approx. 5%
  • CMG: $424.1, ATM Straddle: $20.55 - approx. 5%
  • GOPRO: $10.88, ATM Straddle: $1.25 - approx. 11.5%

Odd Block: Calls trade in Alcoa Inc (AA), calls trade in MetLife Inc (MET) and calls trade in Nordstrom, Inc (JWN).

Strategy Block: Uncle Mike Tosaw discusses hedging Apple going into earnings

Mail Block: Options #QuestionOfTheWeek

Time for another Earnings #StraddleBattle : Which stock will outperform its straddle by the largest margin?

  • Apple (AAPL)
  • Facebook (FB)
  • Amazon (AMZN)
  • Chipotle (CMG)

Listener Questions and Comments

  • Question from Geoff - Are straddles really better than analysts estimates for predicting stocks?
  • Question from Bob - Concerning earnings - I have been told to take an ATM call and a put and add them together and that is the expected move. Is that correct?

Around the Block: Numbers on the horizon

  • Feb 3: Unemployment
  • Feb 3: Factory Orders

Option Block 591: Apple Earnings Preview, Strange VIX Spike

Trading Block: Earnings today include Apple, Under Armour. Odd Bock: Call writer in Coach Inc. (COH), call spreads trade in Constellation Brands, Inc. (STZ) and calls trade in Pfizer Inc. (PFE) Mail Block: Questions, comments, and more. Options...
Posted January 31st, 2017

Trading Block: Earnings today include Apple, Under Armour.

Odd Bock: Call writer in Coach Inc. (COH), call spreads trade in Constellation Brands, Inc. (STZ) and calls trade in Pfizer Inc. (PFE)

Mail Block: Questions, comments, and more.

  • Options #QuestionOfTheWeek - Time for another earnings straddle battle. Which company will outperform their earnings straddle by the largest margin?
  • Apple - $AAPL
  • Facebook - $FB
  • Amazon - $AMZN
  • Chipotle - $CMG

Listner questions:

  • Question from Michael Gavriel - Hey guys, I appreciate all the programming. As far as I can tell, the Option Block podcasts sort of arrive a day late. Maybe its my podcast client? I have not looked into it. What I mean is - for example, the recent Option Block show - Option Block 572, it seems like that is a recap of Thursdays action. But when is it published? I sort of 'need' it to be published on Thursday night i.e. the 10th, or very early in the morning, I guess, on the 11th, if I am going to sort of use it to keep me abreast of action ahead of the trading day? Just curious if this is just how your guys schedules work, maybe you record the next morning, and release mid day, in which case I am a bit out of luck in terms of it being a super timely source. But if it is something I am doing wrong on my end, please do let me know! Thanks.
  • Question from Tom - What does this article mean?
  • Question from Koukas - Researchers say we were in the most narrow equity range since 1933 just before the elction. What's the best way to trade that? Sell out a far out straddle?

Around the Block: Earnings! AAPL, XOM, CMG, AMZN. Trump Twitter watch. Confirmations.


Option Block 590: Earnings Straddle Battle - GOOGL, MSFT, SBUX and More

Trading Block: Earnings! Before the bell: Southwest, Caterpillar After the bell: Alphabet, PayPal, E-Trade, Microsoft, Intel GOOGL - $852.70. ATM Straddle: $34, approx. 4% MSFT - $64.05. ATM Straddle: $2.75, approx. 4.3% INTC - $37.6. ATM Straddle:...
Posted January 27th, 2017

Trading Block: Earnings!

  • Before the bell: Southwest, Caterpillar
  • After the bell: Alphabet, PayPal, E-Trade, Microsoft, Intel
  • GOOGL - $852.70. ATM Straddle: $34, approx. 4%
  • MSFT - $64.05. ATM Straddle: $2.75, approx. 4.3%
  • INTC - $37.6. ATM Straddle: $1.25, approx. 3.3%
  • PAYPAL - $41.52. ATM Straddle: $2.12, approx. 5%
  • SBUX - $58.51. ATM Straddle: $2.20, approx. 3.7%

Odd Block: Calls trade in Kate Spade Co. (KATE), calls trade in Technology SPDR (XLK) and puts trade in JPMorgan Alerian MLP index (AMJ)

Strategy Block: Uncle Mike Tosaw discusses dollar-cost averaging

Mail Block: Questions, comments, polls, and more.

Options #QuestionOfTheWeek: Lots of earnings on the horizon. Which company will outperform their earnings straddle by the largest margin?

  • Alphabet - $GOOGL
  • Microsoft - $MSFT
  • Intel - $INTC
  • Starbucks - $SBUX

Listener questions:

  • Question from Tim Avery - If I choose an advisor that uses options do they traditionally charge higher fees than straight-up equity advisors?
  • Question from Kddidy - I managed to buy 100 NAK Feb 3.00 Puts at .25 when the stock was trading at $3.30. Do you have any idea how this could happen? I am not sure if I should feel lucky or stupid.
  • Question from Yukoner - Are covered calls still a viable strategy in a 401k these days?

Around the Block/This Week in the Market:

  • Jan 26: Jobless Claims, International Trade, New Home Sales
  • Jan 27: Durable Goods, GDP, Consumer Sentiment

Option Block 589: Jedi vs. Sith. vs Earnings Season

Trading Block: The Trump Effect: President Donald Trump is set to unleash a cascade of stock-market anxiety - The day of reckoning for the Wall Street is here. McDonalds (MCD) earnings today. Friday close - $122.26; ATM Straddle - $3.52, approx. 3%;...
Posted January 24th, 2017

Trading Block: The Trump Effect: President Donald Trump is set to unleash a cascade of stock-market anxiety - The day of reckoning for the Wall Street is here. McDonalds (MCD) earnings today. Friday close - $122.26; ATM Straddle - $3.52, approx. 3%; Open down $.75, Traded as low as $2.44; No more love for all-day breakfast.

Odd Block: Calls and puts trade in Morgan Stanley (MS), calls trade in Home Depot Inc (HD) and calls trade in Lending Club Corp (LC)

Mail Block: Questions, Comments, Polls, and more

Options #QuestionOfTheWeek

Earnings Season awakens! How do you play earnings using options? Are you an Earnings #Jedi or #Sith?

  • 41% - Dark Side (Short Premium)
  • 26% - Light Side (Long Premium)
  • 25% - No Side - Avoid earnings
  • 08% - Other (Reply/DM w/ideas)

Options #QuestionOfTheWeek - Lots of earnings on the horizon. Which company will outperform their earnings straddle by the largest margin?

  • Alphabet - $GOOGL
  • Microsoft - $MSFT
  • Intel - $INTC
  • Starbucks - $SBUX

Listener questions and comments

  • Comment from Steve Place - CREE it is always CREE
  • Question from Chris - Is there a way to subscribe to your posts as they go up on the website so you can get notified via email or mobile phone? Thanks, Chris
  • Question from Fundconcept - Do you think activist investors opportunities will rise considering their experience with mkt volatility?

Around the Block/Earnings Highlights this Week:

  • Tuesday - Alibaba Group, Verizon, Johnson & Johnson, 3M, Kimberly-Clark
  • Wednesday - Boeing, Abbott Labs, eBay, Qualcomm, AT&T
  • Thursday - Alphabet, PayPal, E-Trade, Microsoft, Southwest, Caterpillar, Intel
  • Friday - Honeywell

Option Block 588: Trump Dump, VIX Pop, NFLX Explosion

Trading Block: Stocks tumble ahead of Trump inauguration - Dow off 100. Netflix: Another crazy earnings for NFLX. Close = $133.26, straddle = $12.60 / 9.5%. Spiked to $145 in the after-hours, opened at $142 today. How a one-two, Trump-Yellen punch may...
Posted January 20th, 2017

Trading Block: Stocks tumble ahead of Trump inauguration - Dow off 100. Netflix: Another crazy earnings for NFLX. Close = $133.26, straddle = $12.60 / 9.5%. Spiked to $145 in the after-hours, opened at $142 today. How a one-two, Trump-Yellen punch may move interest rates.

Strategy Block: Uncle Mike Tosaw discusses the importance of event risk

Odd Block: Puts trade in 3D Systems Corp (DDD); Calls trade in Avon Products, Inc (AVP); Calls trade in Union Pacific Corp (UNP)

Mail Block/Options QuestionOfTheWeek:

Earnings Season awakens! How do you play earnings using options? Are you an Earnings #Jedi or #Sith?

  • Dark Side (Short Premium)
  • Light Side (Long Premium)
  • No Side - Avoid earnings
  • Other (Reply/DM w/ideas)

Listener questions and comments:

  • Comment from Scott Francis - Generally most short with puts unless stock has been hammered then you get short squeeze
  • Question from Piggyback - Learned about Lightspeed from the last show. Checked out their site and saw $.60 per contract but didn't see a ticket charge. Do they have one? Answer from Kevin:No ticket charge on options. We will tier commissions based on activity, at the lowest activity level we will charge $0.60/contract with $1.00 min. (So a 5 lot is $3.00, a 1 lot will be $1.00.) We can go down to $0.20/contact for active accounts, tiering schedule is on our website. Mention Option Insider when you call Lightspeed we will give them another nickel off the commission.
  • Question from Ski -As for the repealing and recall of Obamacare. How do you price LEAPs on spider biotech? Someone bought 340 Jan 2018 55 Puts on XBI. Is this a bet on the repel of Obamacare? If so, are LEAP puts a good way to go?
  • Question from Sean - If a trader thought that a price was going down, would a put not have been the best trade in the asian session?

Around the Block:

This Week in the Market -Jan 19: Jobless Claims, Housing Starts

Earnings This Week

  • Thursday - Union Pacific - Thursday am; IBM - Thursday pm
  • riday General Electric, Procter & Gamble Co.

 


Option Block 587: Epic Drone Smackdown - AMZN vs Trump

Trading Block: Stocks sharply lower: Dow drops about 150 points. Who can slow down the Amazon juggernaut? Odd Block: Calls trade in Cheasepeake Energy (CHK), puts trade in Fiat Chrysler Auto NV (FCAU) and puts trade in Ford Motor Co (F). Mail Block:...
Posted January 13th, 2017

Trading Block: Stocks sharply lower: Dow drops about 150 points. Who can slow down the Amazon juggernaut?

Odd Block: Calls trade in Cheasepeake Energy (CHK), puts trade in Fiat Chrysler Auto NV (FCAU) and puts trade in Ford Motor Co (F).

Mail Block: #QuestionOfTheWeek

$VIX hit a high of 28 last year. How high will $VIX get in 2017?

  • About the same (27-29)
  • Slightly Lower (24-26)
  • Slightly Higher (30 - 33)
  • Much Higher (Above 33)

Listner questions and comments:

  • Question from Ian Wagner: Overheard at #STACMWM retail #options panel: "Customers are market-takers. They do not deserve to trade on our bid." This would seem to be a pretty profound statement. Can you discuss on #OptionBlock?
  • Comment from Max: Who can stop Amazon? Well Trump surely can.
  • Question from RealRX: Hey fellas! Heavy call buying OTM in Bank of America. In particular the Jan 25.5 call expiring on the 20th, and other bank stocks. Looks like protection again massive short sales since smart money usually buys iTM (could be wrong). Do you guys see this as a sign of bearish sentiment on financials with the dollar weakness, multiple rate hikes priced in, etc? Smells funny to me.
  • Comment from The Real Justin: I am think gold will continue to run up to inauguration.

Around the Block/This Week in the Market:

  • Jan 13: PPI, Retail Sales, Consumer Sentiment

Earnings Highlights this Week

  • Thursday - Delta Airlines
  • Friday - Bank of America, JP Morgan, Wells Fargo, PNC, Blackrock

Option Block 586: Zombie Gold Back From the Dead

Trading Block: Oil drop stymies the Dows march to 20,000. Tech stocks send Nasdaq to record, Apple is celebrating the tenth anniversary of the iPhone. Gold prices settle at highest level in nearly 6 weeks. The options market is not too worried about...
Posted January 10th, 2017

Trading Block: Oil drop stymies the Dows march to 20,000. Tech stocks send Nasdaq to record, Apple is celebrating the tenth anniversary of the iPhone. Gold prices settle at highest level in nearly 6 weeks. The options market is not too worried about retail (XRT) woes, but should it be? Is Amazon.com the mall killer?

Odd Block: Calls trade in 3D System Corp (DDD), calls trade in IAMGOLD Corp (IAG) and calls trade in Direxion Daily Junior Gold Minors (JNUG).

Strategy Block: Uncle Mike Tosaw discusses trading silver and other metals.

Around the Block:

This Week in the Market

  • Jan 10: JOLTS
  • Jan 12: Jobless Claims, Treasury Budget
  • Jan 13: PPI, Retail Sales, Consumer Sentiment

Earnings this Week

  • Thursday - Delta Airlines
  • Friday - Bank of America, JP Morgan, Wells Fargo, PNC, Blackrock

Option Block 585: 2016 Year in Review Spectacular

Trading Block: Looking back at 2016! The thrills of victory. The agonies of defeat. Odd Block: Andrew's favorite Odd Block trades from 2016 Big winner: Calls trade in Market Vectors Gold Miners ETF (GDX). Size upside calls trade (buy Jun expiration...
Posted January 6th, 2017

Trading Block: Looking back at 2016! The thrills of victory. The agonies of defeat.

Odd Block: Andrew's favorite Odd Block trades from 2016

Mail Block: Happy New Year!

First #QuestionOfTheWeek for 2017. Total #Options volume dropped 2% last year. How will 2017 #Options volume compare?

  • About the Same (+- .5%)
  • Modest Increase (up 1-2%)
  • Modest Drop (down 1-2%)
  • Big Change (+- over 2%)

Listener questions

 

  • Question from Scott - I benefited from your unusual activity report (of course there is due diligence on my part). Thank you! Do you have any subscription service for unusual activity? More in depth? Great insight, loved how you filtered the noise. Happy New Year!!"
  • Question from WilliamPZE - Does it make sense to buy Rite Aids puts March 7, as Walgreens will close the deal on 01-27-17? Your reply is much appreciated. Thanks, Bill
  • Question from RealRK - I just entered the industry. I passed the 7 and 66, but I will not be doing a lot in the options arena aside from hedging. I have a lot of time in the next month, do you guys have suggestions for furthering options knowledge and possibly becoming a specialist in the few years?
  • Comment from ELXDX86 - Options Bootcamp is THE best way to start learning options!

Around the Block/This Week in the Market: Nonfarms payrolls for December on Friday, Jan 6.


Option Block 584: Winter in Chicago - Close Your Shorts

Trading Block: A look back at the year 2016 in the options market. An overview of Lightspeed Trading with guest co-host Kevin Ott. Oil falls for the first time in nine days as U.S. crude supplies climb. Odd Block: Calls trade in Moblieye NV (MBLY),...
Posted December 30th, 2016

Trading Block: A look back at the year 2016 in the options market. An overview of Lightspeed Trading with guest co-host Kevin Ott. Oil falls for the first time in nine days as U.S. crude supplies climb.

Odd Block: Calls trade in Moblieye NV (MBLY), calls roll in Jetblue Corp (JBLU), puts trade in Kinross Gold (KGC).

Strategy Block: Uncle Mike Tosaw discusses 1256 contracts

Mail Block: Listener questions and comments

  • Question from Trader Taz1 - Do you have a broker recommendation for someone who is new to options? Maybe with a cash account since I do not want to do margin?
  • Question from Yukoner - Are covered calls still a viable strategy in a 401k these days?
  • Question from JLN84 - I bought a call on a major equity that is now in-the-money. What is my next step? Do I need to do something to get the stock?

Around the Block/This Week in the Market:

Will be a lighter trading week as many traders and investors will be taking the week off because of the holidays. There are a couple of economic reports worth noting listed below. Happy New Year!

  • Dec 27: Consumer Confidence
  • Dec 28: Pending Home Sales
  • Dec 29: Jobless Claims
  • Dec 29: International Trade

Best of Option Block

We dug through the archives to bring you the very best of the Option Block.
Posted December 27th, 2016

We dug through the archives to bring you the very best of the Option Block.


Option Block 583: Dow 20,000?

Trading Block: Gold, the Fed and volatility on this last episode before the holiday weekend. Odd Block: Calls trade in Globalstar, Inc. (GSAT), calls roll in Michael Kors Holdings, Ltd (KORS) and call buyers in Eldorado Gold Corp (EGO) Strategy Block:...
Posted December 23rd, 2016

Trading Block: Gold, the Fed and volatility on this last episode before the holiday weekend.

Odd Block: Calls trade in Globalstar, Inc. (GSAT), calls roll in Michael Kors Holdings, Ltd (KORS) and call buyers in Eldorado Gold Corp (EGO)

Strategy Block: Uncle Mike Tosaw discusses the strategy of "boxing off"

Mail Block: Options question of the week, listener questions and comments

#QuestionOfTheWeek: Major market indices are pushing record highs. Everyone has protection on the brain. How do you protect your portfolio?

  • Just Move to Cash/Bonds
  • Protective ATM/OTM Put
  • Put Spread/Ratio Put Spread
  • Collar or Collar with a Kicker
  • Question from Yukoner - Are covered calls still a viable strategy in a 401k these days?
  • Question from Trader Taz1 - Do you have a broker recommendation for someone who is new to options? Maybe with a cash account, since I do not want to do margin?

Around the Block: Not much happening in the last week of the year.


Option Block 582: International Options After Dark

Trading Block: The polar vortex might have snuck into the S&P, a narrow range of movement today. Vol off half a handle. How likely is the Fed to make an announcement before the end of the year? Odd Block: Calls trade in GlobalStar, Inc (GSAT),...
Posted December 20th, 2016

Trading Block: The polar vortex might have snuck into the S&P, a narrow range of movement today. Vol off half a handle. How likely is the Fed to make an announcement before the end of the year?

Odd Block: Calls trade in GlobalStar, Inc (GSAT), calls trade in Walgreens Boots Alliance (WBA) and calls trade in Energy Transfer Equity LP (ETE).

Mail Block: Listener questions, comments, and opinions

#QuestionOfTheWeek: Financial advisors represent the last options frontier. What level of options knowledge do you expect from your advisor?

  • None: I will do it myself
  • Level 1: Buy Puts/Calls
  • Level 2: Income & Vol
  • Level 3:Option Specialist

Listener questions:

  • Question from Roiratpd81: @Options thanks! I am a new trader. How should I interpret this chart? Say for BAC? Thanks!
  • Question from Hitman - Is the crash priced in yet? What about black sawn events? Any options indicators showing one of those may be on the horizon?
  • Question from Martin Stann - I like to trade the 2X levered SSO ETF. What are your thoughts on this and is it a viable candidate for call writing and put writing?
  • Question from Aldo2 - Hey Mark, Lobster and UM. Just wanted to get your guys thoughts on Vanguard as an options broker. I know most people use them for mutual funds but I have most of my assets there. Is it a viable platform for the type of trading you guys advocate? Hope you're surviving the big chill in Chicago.

Around the Block: Expecting a very quiet week.


Option Block 581: Reasons to Believe

Trading Block: The market and everything else rallied. Vol drops. Fed forecasting. What's the scoop with the shiny stuff? Odd Block: Call trade in Financial Select Sector SPDR (XLF), call spreads trade in Michael Kors Holding LTD (KORS), calls trade...
Posted December 16th, 2016

Trading Block: The market and everything else rallied. Vol drops. Fed forecasting. What's the scoop with the shiny stuff?

Odd Block: Call trade in Financial Select Sector SPDR (XLF), call spreads trade in Michael Kors Holding LTD (KORS), calls trade in KEY Corp. (KEY)

Strategy Block: Uncle Mike Tosaw discusses how to choose a financial advisor.

Around the Block: The Fed has spoken. Now what?


Option Block 580: Bringing Sexy Back to Box Spreads

Trading Block: Stocks mixed as Dow hits another new record high, flirting with 20,000. Crude and XLE up too. Wealthy investors show a Trump bump in confidence, UBS Wealth Management Americas reported Thursday. Odd Block: Puts trade in Transocean ltd...
Posted December 13th, 2016

Trading Block: Stocks mixed as Dow hits another new record high, flirting with 20,000. Crude and XLE up too. Wealthy investors show a Trump bump in confidence, UBS Wealth Management Americas reported Thursday.

Odd Block: Puts trade in Transocean ltd (RIG), calls and puts trade in SPDR S&P 500 trust (SPY) and calls trade in Hain Celestial Group (HAIN).

Mail Block: Question of the week and listener questions

#QuestionOfTheWeek: Financial advisors represent the last options frontier. What level of options knowledge do you expect from your advisor?

  • None: I will do it myself
  • Level 1: Buy Puts/Calls
  • Level 2: Income & Vol
  • Level 3: Option Specialist
  • Question from Adam Sam - Hello again... I figured out a way to predict the direction of the market for the day with 75% accuracy. I am wondering what would be the smartest way to trade this info? Should i sell the opposite options OTM with 45 days? And buy them back at the end of the day? Or buy OTM in the direction it will move? I cannot predict the after hours so i want to get out at the end of the day. How would you hedge such trade? Thank you
  • Question from BGT - What happens to options if the fed raises rates in December?

Around the Block/This Week in the Market:

  • Dec 12 - Treasury Budget
  • Dec 13 - Import and Export
  • Dec 14 - PPI, Retail Sales, FOMC
  • Dec 15 - Jobless Claims, CPI
  • Dec 16 - Housing Starts

Earning Highlights:

  • Thursday - Adobe, Oracle

Option Block 579: XLF Call Love and AAPL Box Spreads

Trading Block: Stocks rise as NASDAQ joins Dow, S&P and notch new record highs. Understanding the minutiae of VIX. The Tao of Don: Sell or sell not. There is no buy. Odd Block: Calls trade in CBOE Holding Inc (CBOE), Massive calls trade in...
Posted December 9th, 2016

Trading Block: Stocks rise as NASDAQ joins Dow, S&P and notch new record highs. Understanding the minutiae of VIX. The Tao of Don: Sell or sell not. There is no buy.

Odd Block: Calls trade in CBOE Holding Inc (CBOE), Massive calls trade in Financial Select SPDR (XLF), Calls trade in Bank of America Corp (BAC).

Strategy Block: Uncle Tosaw discusses trading collars in Apple

Mail Block/Options#QuestionOfTheWeek:

#CrudeOil has been volatile lately. $OIV, aka Oil $VIX, is 37.33. Where will #Crude #Volatility close on Friday?

  • Between 37 - 38.5
  • Between 38.5 - 40
  • Below 37
  • Above 40

Around the Block/This Week in the Market: Dec 9: Consumer Sentiment


Option Block 578: A Kung Fu Grip on the Options Market

Trading Block: CBOE sets record volume with S&P 500 Index and CBOE Volatility Index in November. Apple still up on the year. What might next year look like? Lululemon on Wednesday closed $57.16. The ATM straddle is trading at $5.35, or approx. 9%....
Posted December 6th, 2016

Trading Block: CBOE sets record volume with S&P 500 Index and CBOE Volatility Index in November. Apple still up on the year. What might next year look like? Lululemon on Wednesday closed $57.16. The ATM straddle is trading at $5.35, or approx. 9%.

Odd Block: Puts trade in Barrick Gold Corp (ABX), Calls trade in Market Vectors Russia ETF (RSX), Calls trade in Pandora Media Inc (P)

Mail Block/Options#QuestionOfTheWeek:

#CrudeOil has been volatile lately. $OIV, aka Oil $VIX, is 37.33. Where will #Crude #Volatility close on Friday?

  • Between 37 - 38.5
  • Between 38.5 - 40
  • Below 37
  • Above 40
  • Question from Trader Chad - Are ATM straddles really a good way of predicting a stock or are they just more noise like whisper numbers?

Around the Block/This Week in the Market:

  • Dec 6: International Trade, Factory Orders
  • Dec 7: JOLTS
  • Dec 8: Jobless Claims
  • Dec 9: Consumer Sentiment

Earnings Highlights:

  • Tuesday - Toll Brothers, Autozone
  • Wednesday - Costco, Lululemon

Option Block 577: Mad Man Option Screeners

Trading Block: Earnings after the bell today: TD Ameritrade, Krogers, Lands End, Dollar General. OCC cleared contract volume increased 20% in November. Why was November such a massive month for markets around the world? XLE up 8% since Tuesday. Volume...
Posted December 2nd, 2016

Trading Block: Earnings after the bell today: TD Ameritrade, Krogers, Lands End, Dollar General. OCC cleared contract volume increased 20% in November. Why was November such a massive month for markets around the world? XLE up 8% since Tuesday. Volume 1.5x ADV, calls slightly over puts.USO up over 10% since Tuesday - volume 2x ADV, calls over puts 2-to-1. VOLUME 2X ADV TODAY, CALLS OVER PUTS 2-TO-1. Trump plan to dismantle Dodd-Frank unlikely to be realized, says TABB Group.

Odd Block: (Review from Monday) Calls and puts trade in SPDR S&P Oil and Gas Exp (XOP), alls trade in Financial Select SPDR (XLF), calls trade in Seadrill LTD (SDRL) and calls trade in Ford Motor Co. (F).

Strategy Block: Uncle Mike Tosaw discusses his new modified collar strategy.

Mail Block/Options#QuestionOfTheWeek:

Commodities are capturing a lot of attention and generating a lot of #Volatility. What's your option of choice?

  • $GLD / Comex Gold
  • $USO / $WTI
  • $TLT / ED / 10YR
  • EUR/USD, GPB/USD
  • Question from Go Hoos - If I buy 10,000 XYZ calls at $1 and sell them for $2, who loses that $1M? The MMs who make $$ on expired option premiums? TIA!

Around the Block/This Week in the Market:

  • Friday - Nonfarm payrolls

Option Block 576: The Ducky of Maine

Trading Block: Jobs report and the Fed set the holiday table this week. Opinion: How the "Trump bump" to the U.S. economy could fall flat? Odd Block: Calls trade in VALE SA (VALE), calls and puts trade in SPDR S&P Oil and Gas Exp (XOP) and calls...
Posted November 29th, 2016

Trading Block: Jobs report and the Fed set the holiday table this week. Opinion: How the "Trump bump" to the U.S. economy could fall flat?

Odd Block: Calls trade in VALE SA (VALE), calls and puts trade in SPDR S&P Oil and Gas Exp (XOP) and calls trade in ArcelorMittal SA (MT)

Mail Block/Options#QuestionOfTheWeek:

Commodities are capturing a lot of attention and generating a lot of #Volatility. What is your option of choice?

  • $GLD / Comex Gold
  • $USO / $WTI
  • $TLT / ED / 10YR
  • EUR/USD, GPB/USD

Listener questions: Listeners have their say

  • Question from Marco - Trading on election night was horses**t! What can an options trader do when the futures are plummeting but the options are not open? So frustrating.
  • Question from Chris Brecher - Is legal pot driving squeeze in $DRYS? Debating now on. Maybe if I was high, I would have believed all the bull flags on the way up:)

Around the Block/Earnings Highlights:

  • Tuesday - Tiffany & Co.
  • Thursday - TD Ameritrade, Krogers, Lands End, Dollar General

Option Block 575: Put Spreads Need Love to Grow

Trading Block: Stocks jump as S&P 500 and Nasdaq set new record highs. Goldman insiders underwater options were salvaged by the Trump election.There are still earnings being released. Earnings today: Tyson Foods (before the bell) Palo Alto...
Posted November 22nd, 2016

Trading Block: Stocks jump as S&P 500 and Nasdaq set new record highs. Goldman insiders underwater options were salvaged by the Trump election.There are still earnings being released.

Earnings today:

  • Tyson Foods (before the bell)
  • Palo Alto Networks (after the bell)

Odd Block: Calls trade in NRG Energy Inc (NRG), calls trade in Ultra DJ - AIG Crude Oil ProShares (UCO) and calls trade in Cypress Semiconductor Corp (CY).

Mail Block: Listener questions and comments

  • Question from RealRK - Juice for free is always nice. I would have never thought of mixing in the call time spread. Musk uses the massive short interest, tweets and it goes up ten points. Thanks fellas! Also, check out the call/put ratio on CY (Cypress Semiconductors). OI near and out of the money in the next three months contracts shows huge call buying (Probably 100 million plus in value). Buyout rumors, so I got long a small amount of January 11 calls. Let me know what you guys think Thursday! Thanks

Options#QuestionOfTheWeek

Great traders need many weapons in their arsenals. But everyone has a favorite. What is yours? Reply/DM w/others.

  • Vertical/Ratio Vertical
  • Iron Condor/Iron Fly
  • Straddle/Strangle
  • Covered Call/Short Put
  • Addition from Options_Addict - Options ratio spreads and naked purchases.

More questions:

  • Question from Rico Landa - Did you guys see this? Is Cuban talking about buying puts or something else? Guess he has a savvy financial advisor?
  • Question from JNic - When the market is rallying like it is now what is wrong with just buying calls? Seems to work or is that just too basic?

Around the Block/This Week in the Market:

  • Nov 22: Existing Home Sales
  • Nov 23: Durable Goods, Jobless Claims, New Home Sales, Consumer Sentiment, FOMC Minutes
  • Nov 24: Thanksgiving Day, markets closed
  • Nov 25: International Trade, Markets close at 1:00 pm Eastern.

Option Block 574: Laterally Arabesque

Trading Block: A mild market rally today. VIX cash back below the 14-handle. TSLA recovering from some recent losses; was up over 2% at mid-day. Yellen says Fed might hike interest rates relatively soon. Jobless claims in U.S. declined to lowest level...
Posted November 18th, 2016

Trading Block: A mild market rally today. VIX cash back below the 14-handle. TSLA recovering from some recent losses; was up over 2% at mid-day. Yellen says Fed might hike interest rates relatively soon. Jobless claims in U.S. declined to lowest level in four decades.

Odd Block: Size calls trade in Financial Select SPDR (XLF), calls trade in Advanced Micro Devices (AMD) and puts trade in Freeport Mc MoRan Inc. (FCX).

Strategy Block: Uncle Mike discusses trading in IBB

Mail Block: Listener questions and comments

  • Question from Mike The Bookie - Yeah, the ETF based volatility indexes. Is here a good place to bracket UVXY or VXX?
  • Question from Ian Wagner ?- Why trade volatility vs direction or income? Preference? More favorable risk/reward profile.

Around the Block/Earning Highlights this Week:

  • Friday - Foot Locker, Abercrombie & Fitch

Option Block 573: Tesla Tailspin and Dubious DRYS

Trading Block: U.S. stock market Trump rally loses steam. Oil gets left behind in post-Trump rally. Trump presidency raises questions on the future of Wall St. regulation. Odd Block: Calls trade in Canadian Natural Resources LTD (CNQ), calls trade in...
Posted November 15th, 2016

Trading Block: U.S. stock market Trump rally loses steam. Oil gets left behind in post-Trump rally. Trump presidency raises questions on the future of Wall St. regulation.

Odd Block: Calls trade in Canadian Natural Resources LTD (CNQ), calls trade in Financial Select SPDR (XLF) and calls trade in Square Inc (SQ)

Mail Block/Options #Question of the Week:

$TSLA ($182.50, down 3%, IV30:41, HV30:31) Straddle says $8.20 move (4.5%) by Friday close. How much will $TSLA actually move

  • In line: ($8-$8.50)
  • Beat Straddle: > $8
  • Less than Straddle: < $8]
  • Sick of #Musk / $TSLA

Listener questions:

  • Question from Moolla - WTF is up with $DRYS? Thing is going nuts - takeover? Lots of calls trading?
  • Comment from Burgh83: Can you explain what that means exactly?...thanks, I'm trying to figure options out still. But holding MRO, want to buy more...

Around the Block/Earnings Highlights:

  • Tuesday - Home Depot, Dick's Sporting Goods
  • Wednesday - Lowe's, Target, Cisco
  • Thursday - Walmart, Best Buy, Salesforce
  • Friday - Foot Locker, Abercrombie & Fitch

Option Block 572: Post-Election Market Madness

Trading Block: Volume in non-U.S. trading hours sets a new daily record. Pharma pop on Hillary loss. Earnings After the Bell: DIS - $95.72, ATM Straddle = $2.70, approx. 3% NVDA - $68, ATM Straddle = $5.40, approx. 8% JWN - $57.10, ATM Straddle =...
Posted November 11th, 2016

Trading Block: Volume in non-U.S. trading hours sets a new daily record. Pharma pop on Hillary loss.

Earnings After the Bell:

  • DIS - $95.72, ATM Straddle = $2.70, approx. 3%
  • NVDA - $68, ATM Straddle = $5.40, approx. 8%
  • JWN - $57.10, ATM Straddle = $4.85, approx. 8.5%

Odd Block: Calls roll in YRC Worldwide Inc (YRC), calls trade in Huntington Bankshares Inc. (HBAN) and calls trade in Financial Select SPDR (XLF)

Strategy Block: Uncle Mike Tosaw discusses what to do when you get called away from a covered call.

Mail Block/Options #QuestionOfTheWeek:

$SPX Weds Weekly straddle says 2% move through election. How much will SPX / $SPY move through Weds 11/9?

  • Over 3% - crazy move
  • Between 2-3% - big move
  • Between 1-2% - mild move
  • Less than 1% - meh

Comment:

  • Comment from Bongsong2: Trump win makes America great again.

Around the Block: Checking back on the earnings straddles from the top of the show. Who will be in the Trump cabinet? Funky sector rotation. Will tech buyers show up?


Option Block 571: TSLA Puts and Election Volatility

Trading Block: Dow soars 300 points after FBI clears Clinton again. Are certain volatility funds raising election risk for the stock market? Earnings today after the bell Fogo de Chao Hertz Global Holdings Marriott International - ATM Straddle =...
Posted November 8th, 2016

Trading Block: Dow soars 300 points after FBI clears Clinton again. Are certain volatility funds raising election risk for the stock market? Earnings today after the bell

  • Fogo de Chao
  • Hertz Global Holdings
  • Marriott International - ATM Straddle = $2.75, approx. 4%
  • The Priceline Group - ATM Straddle = $82, approx. 5.5%

Odd Block: Calls trade in SPDR KBW Bank ETF (KBE), calls and puts trade in iShares MSCI Mexico Fund (EWW) and puts trade in Marathon Oil Company (MRO)

Mail Block/Options #QuestionOfTheWeek:

$SPX Weds Weekly straddle says 2% move through election. How much will SPX / $SPY move through Weds 11/9?

  • Over 3% - crazy move
  • Between 2-3% - big move
  • Between 1-2% - mild move
  • Less than 1% - "meh"

Listener questions:

  • Question from RKintz - What do you guys think of out of the money puts on PBR? I noticed heavy buying across several expiries the last few weeks (possibly speculation of prolonged glut in oil supply)
  • Question from Real RK - What do you guys think of being long a little less than one standard deviation puts OTM for Jan in everyones favorite hyperbolic name Tesla?

Around the Block/Earning Highlights This Week:

  • Tuesday - Valeant, CVS Health
  • Wednesday - Valeant, Mylan, Shake Shack, Macys
  • Thursday - The Walt Disney Company, Nvidia, Kohls, Nordstrom
  • Friday - JCPenney

Option Block 570: Resigned to Groans

Trading Block: Wrapping up the week in options Earnings this Week: Alibaba (Wednesday before the bell). Close: $101.15, ATM Straddle: $5.46. Open up: $2.65, Traded up: $2.95. Facebook (Wednesday after the bell). Close: $127.17, ATM Straddle: $6.68....
Posted November 4th, 2016

Trading Block: Wrapping up the week in options

Earnings this Week:

  • Alibaba (Wednesday before the bell). Close: $101.15, ATM Straddle: $5.46. Open up: $2.65, Traded up: $2.95.
  • Facebook (Wednesday after the bell). Close: $127.17, ATM Straddle: $6.68. Open down: $5.17, Traded down: $7.56.
  • Starbucks. Close: $52, ATM Straddle: $2.45 - 4.7%

OCC cleared contract volume down 13% in October.

Options #QuestionOfTheWeek: Special #Earnings, #Election, #WorldSeries edition $FB ATM strd=$7.30 $VIX=17.20. Which outcome is most likely?

  • $VIX > 20 before election
  • $FB beats ATM Straddle
  • @realDonaldTrump wins
  • @Cubs win World Series

Odd Block: Calls trade in Itau Unibanco Holding SA (ITUB), puts trade in Electronic Arts Inc. (EA), calls trade in Powershares QQQ Trust (QQQ)

Strategy Block: Uncle Mike Tosaw discusses ways to use money management in your favor

Around the Block: Prescient polling...so many correct answers on the #QuestionOfTheWeek. Does that mean Trump will win?


Option Block 569: The Musical Halloween Spooktacular

Trading Block: The tumultuous presidential election could peak the VIX today. Emotional uncertain about the election? Stick to your investing plan. Odd Block: Calls trade in Metlife Inc. (MET), calls and puts trade in Holly Frontier Corp (HFC) and...
Posted November 1st, 2016

Trading Block: The tumultuous presidential election could peak the VIX today. Emotional uncertain about the election? Stick to your investing plan.

Odd Block: Calls trade in Metlife Inc. (MET), calls and puts trade in Holly Frontier Corp (HFC) and puts trade in Encana Corp (ECA).

Mail Block/ Options #QuestionOfTheWeek:

Special #Earnings, #Election, #WorldSeries edition $FB ATM strd=$7.30 $VIX=17.20. Which outcome is most likely?

  • $VIX > 20 before election
  • $FB beats ATM Straddle
  • @realDonaldTrump wins
  • @Cubs win World Series

Listener questions

  • Question from Nickel 45: Your talk of the P&G and COTY arb had my head spinning. So I did some research and came across terms like "put squeeze" and "GEX." Now my head is spinning even more. I included one of the links below for clarification. Is this stuff accurate or just noise? Thx.
  • Question from PFC11: Whats up with $PG/Coty options arb? Any updates?
  • Question from Barncat: I guess this is for the Options House crew. I am an Etrade customer but I am not happy with their platform. I have been thinking about making the switch to your firm for a few months. Will my account automatically switch over to Options House after the merger or I should I switch it manually now?

Around the Block/Earnings Highlights this Week:

  • Tuesday - Pfizer
  • Wednesday - Alibaba, Facebook
  • Thursday - Starbucks
  • Friday - Berkshire Hathaway

Option Block 568: Honking Slingshot Swaps Plus AMZN, GOOGL and TWTR Earnings

Trading Block/Earnings Palooza! Before the Bell: TSLA: stock up 1.5%, $12.30 (6%) AAPL: stock closed $118.25, but dropped nearly $5 the next trading day - now trading around $115, straddle $5.25 (4.5%) TWTR: ATM straddle - $2.10, approx. 12% - stock...
Posted October 28th, 2016

Trading Block/Earnings Palooza!

Before the Bell:

  • TSLA: stock up 1.5%, $12.30 (6%)
  • AAPL: stock closed $118.25, but dropped nearly $5 the next trading day - now trading around $115, straddle $5.25 (4.5%)
  • TWTR: ATM straddle - $2.10, approx. 12% - stock nearly unchanged today.

After the Bell:

  • GOOG: ATM straddle - $39.45, approx. 5%
  • AMZN: ATM straddle - $50 - approx. 6%

Odd Block: Calls trade in Gilead Sciences Inc (GILD), calls trade in Southwest Airlines Co. (LUV) calls trade in Marathon Petroleum Corp (MPC)

Strategy Block: Uncle Mike Tosaw discusses when you would sell a long-dated option.

Mail Block/Options #QuestionOfTheWeek

Is #Trumpocalypse done? Is $VIX already pricing in @HillaryClinton win? Where will $VIX close on election day?

  • UNCHD (Between 12-14)
  • Elevated (15-18)
  • Spike (Over 18)
  • Selloff (Below 12)

Listener questions:

  • Question from Trader Onki - I think you recently attended two trading conferences. Would you please share anything new for some of us retail traders who were not able to attend? Or if you already shared them, please direct me to right place?
  • Question from ItsGoodUntilTheBearRaid - @Options Does this mean someone picked up 19k $8 calls? Refers to this article.

Around the Block: The big story is the elections, even during earnings season. Will the VIX continue to roll up? 2016: A lot of up, a lot of down, but going nowhere.


Option Block 567: VIX Fades and Broker Buyouts

Trading Block: Earnings today before the bell: T-Mobile USA, Inc. Earnings today after the bell: Visa Inc. S&P 500 Skew Unwind Shows Complacency Over Clinton Win: Analysis. TD Ameritrade to buy Scottrade in two-step deal with TD Bank: Read more....
Posted October 25th, 2016

Trading Block: Earnings today before the bell: T-Mobile USA, Inc. Earnings today after the bell: Visa Inc. S&P 500 Skew Unwind Shows Complacency Over Clinton Win: Analysis. TD Ameritrade to buy Scottrade in two-step deal with TD Bank: Read more.

Odd Block: Calls trade in Fiat Chrysler Auto (FCAU), puts trade in Time Warner Inc. (TWX), calls and puts trade in CBS Corp. (CBS).

Mail Block/QuestionOfTheWeek:

Is #Trumpocalypse done? Is $VIX already pricing in @HillaryClinton win? Where will $VIX close on election day?

  • Unchaged (Between 12-14)
  • Elevated (15-18)
  • Spike (Over 18)
  • Selloff (Below 12)

Listener question:

  • Question from Mark Brant: How do funds get orders routed to floor traders? If OH hosts HFs please discuss, thx. Starting one to run the Big Kahuna and favor OH!

Around the Block:

Earnings Highlights This Week:

  • Monday - Visa
  • Tuesday - Apple
  • Wednesday - Tesla
  • Thursday - Alphabet, Amazon, Twitter
  • Friday - Exxon Mobil

This Week in the Market:

  • Oct 25: Consumer Confidence
  • Oct 26: International Trade, New Home Sales
  • Oct 27: Jobless Claims, Durable Goods
  • Oct 28: GDP, Consumer Sentiment

Option Block 566: Revenge of the Pit Traders

TRADING BLOCK Earnings highlights today: Before the bell: American Airlines, Dunkin Brands, Verizon Communications, Textron (TXT), Illinois Tool Works (ITW) and Union Pacific (UNP) After the bell: E*Trade Financial Corporation, Microsoft Corporation,...
Posted October 21st, 2016

TRADING BLOCK

Earnings highlights today:

Before the bell: American Airlines, Dunkin Brands, Verizon Communications, Textron (TXT), Illinois Tool Works (ITW) and Union Pacific (UNP)

After the bell: E*Trade Financial Corporation, Microsoft Corporation, PayPal Holdings

The return of pit trading?

CFTCs Massad wants access to automated trader source code.

A Nasdaq speed upgrade is threatening IEX.

Resources mentioned in the show:

http://www.valuewalk.com/2016/10/cftc-automated-trading/

http://www.wsj.com/articles/a-nasdaq-speed-upgrade-is-threatening-iex-1476982856

ODD BLOCK

Calls trade in Activision Blizzard, Inc (ATVI), calls trade in Groupon Inc (GRPN), puts trade in Bunge LTD. (BG)

STRATEGY BLOCK

Uncle Mike Tosaw discusses the Wash sale

MAIL BLOCK

Question from James T - What do you think about HIMX ?

Question from TradeCraft - Are there options on carbon trading right? Do they trade much volume?

Question from Trader Onki - MTG Earnings MGIC Investment Corporation is expected to report earnings tomorrow before open. I attached the OI book, Heavy volume 10K contracts -Oct 8 call -Nov 7 puts -Jan17 5 puts -Jan17 10 calls. Would you please share your thoughts? Thank

AROUND THE BLOCK

Earnings Highlights this Week:

Friday - General Electric Company, Honeywell International, McDonalds Corporation


Option Block 565: Rise of the Widowmaker

Trading Block: Earnings today before the bell: Bank of America (BAC) leading off before the market opened Monday with a positive result. Earnings today after the bell: IBM: $154.50, ADV 23K; Today over 50k, ATM Straddle: $6.50, approx. 4% ...
Posted October 18th, 2016

Trading Block: Earnings today before the bell:

  • Bank of America (BAC) leading off before the market opened Monday with a positive result.

Earnings today after the bell:

  • IBM: $154.50, ADV 23K; Today over 50k, ATM Straddle: $6.50, approx. 4%

Resources mentioned in the show:

Odd Block: Calls trade in SPDR KBW Bank (KBE), calls trade in Bank of America Corp (BAC) and calls trade in 3D Systems Corp (DDD)

Mail Block: Listener questions and comments

  • Question from Adam - Could you please explain what it means to "gamma scalp" and why this is not called delta scalping? Thanks and your show has saved me a lot of money now that I have come to the dark side!
  • Question from Ian Wagner - Why trade volatility vs direction or income? Preference? More favorable risk/reward profile?

Around the Block/Earnings Highlights this Week:

  • Tuesday - Dominos, Goldman Sachs, Intel, Johnson & Johnson, UnitedHealth.
  • Wednesday - Abbott Labs, American Express, eBay, Mattel
  • Thursday - American Airlines, Dunkin Brands, E*Trade Financial Corporation, Microsoft Corporation, PayPal, Verizon Communications
  • Friday - General Electric Company, Honeywell International, McDonalds Corporation

Option Block 564: Winter Is Coming

Trading Block: Dow drops amid weak China data and rate fears. Will it be a cold winter? Will that spike energy prices? WTF Fed? Airline earnings Odd Block: Calls and puts trade in Johnson Controls Intl (JCI), call buyers in Blackstone Group LP (BX),...
Posted October 14th, 2016

Trading Block: Dow drops amid weak China data and rate fears. Will it be a cold winter? Will that spike energy prices? WTF Fed? Airline earnings

Odd Block: Calls and puts trade in Johnson Controls Intl (JCI), call buyers in Blackstone Group LP (BX), calls trade in Tenet Healthcare Inc (THC)

Strategy Block: Mike Tosaw discusses income strategies.

Mail Block: Listener questions and comments

  • Question from TraderOnki Re: ULTA Guidance Increase - Wednesday Close: 238.97 - Thursday morning news: Ulta Beauty (ULTA) announced that is expects to report third quarter EPS of $1.35 to $1.38, up from prior expectations of $1.25 to $1.30. - Thursday Open: 246.35 - Stock traded as high as 266.74 (over 10%) as I write this 13:20 EST Looking at the yesterdays OI and Vol books - Oct 21 240 calls traded 1,066 contracts - Oct 21 230 puts traded 993 contracts - Oct 14 230 puts traded 680 contracts By looking at todays OI things I can say about yesterdays Vol - Most of Oct 21 240 calls were opening trades - Most of Oct 21 230 puts were closing trades - Most of Oct 14 230 puts were opening trades Would you please share some of your thoughts and conclusions about these trades? Do you think it was just a wide long strangle? Why do you think they closed the Oct 21 puts and opened more Oct 14 puts? Were they more certain about the timing of the news and wanted to decrease their insurance by buying cheaper puts??? Thank you in advance for your time.
  • Question from Meravol - Interesting piece in current Modern Trader about selling break-even strangles. Have you seen? What are your thoughts of this technique? Is it me or are there new techniques for selling strangles all the time that always tend to blow out? Aren?t you better off selling IC or IB due to limited risk?

Around the Block/This Week in the Market:

  • Oct 14: PPI, Retail Sales, Consumer Sentiment

Earning Highlights this week:

  • Friday - Citigroup, JP Morgan, PNC Financial Services, Wells Fargo

Option Block 563: Stocks That Cause Great Sadness

Trading Block: Deutsche Bank says derivatives exposure fears overblown. Twitter shares plunge on report bidders are scarce. TWTR off 11% - back around $17.50. Dow soars as traders await earnings season; Nasdaq near record high. Odd Block: Calls trade...
Posted October 11th, 2016

Trading Block: Deutsche Bank says derivatives exposure fears overblown. Twitter shares plunge on report bidders are scarce. TWTR off 11% - back around $17.50. Dow soars as traders await earnings season; Nasdaq near record high.

Odd Block: Calls trade in Energy Transfer Partners LP (ETE), calls trade in Boston Scientific Corp (BSX), and calls trade in Nabors Industries LTD (NBR).

Mail Block/Options #QuestionOfTheWeek:

What is your fav way to trade #Volatility? $VIX? $VXX? $XIV? $SPX? $SPY? Other? DM/Reply with alternatives?

  • 42% - VIX Options/Futures
  • 29% - VXX
  • 18% - XIV
  • 11% - S&P Strad/delta-neutral

Listener question:

  • Question from Jack Schwartz - RE: Stock Replacement Strategy. Hello Option Block All Stars. My question refers to the Stock Replacement Strategy you advocated on a recent episode (I'm sorry but I don't remember the episode number). The benefits you listed included reducing your capital outlay since equities can only be margined at 50% while options offer substantially higher leverage. So can I assume that I can receive the same benefits from this strategy using a stock future that I can using an equity option? Or are there elements that options provide that futures do not? Thanks. Jack.

Around the Block/This Week in the Market: The Federal Reserve releases the notes from its last meeting. There are several other economic reports worth noting listed below as Alcoa kicks off another round of quarterly earnings.

  • Oct 12: JOLTS, FOMC Minutes
  • Oct 13: Jobless Claims, Treasury Budget
  • Oct 14: PPI, Retail Sales, Consumer Sentiment

Earnings Highlights This Week:

  • Tuesday - Alcoa
  • Thursday - Delta Air Lines, Marriott Vacations Worldwide Corporation
  • Friday - Citigroup, JP Morgan, Wells Fargo

Option Block 562: The Sexy Yield Party

Trading Block: An anemic day in the market. Deutsche Bank does not need a bailout for now, IMF says. DB-$13.50; normal ADV is around 30k, today it was over 65k. Twitter shares plunge on report bidders are scarce. TWTR off 20%. Odd Block: Puts trade in...
Posted October 7th, 2016

Trading Block: An anemic day in the market. Deutsche Bank does not need a bailout for now, IMF says. DB-$13.50; normal ADV is around 30k, today it was over 65k. Twitter shares plunge on report bidders are scarce. TWTR off 20%.

Odd Block: Puts trade in JP MorganChase and Co. (JPM), calls trade in Wal-mart Stores, Inc (WMT), puts trade in Lowes Companies, Inc (LOW).

Strategy Block: Mike discusses weekend risk.

Mail Block/ Options #QuestionOfTheWeek

What is your preferred way to trade #Volatility? $VIX? $VXX? $XIV? $SPX? $SPY?
VIX Options/Futures?

  • VXX?
  • XIV?
  • S&P Strad/delta-neutral?

Around the Block/This Week in the Market:

  • Oct 6: Jobless Claims
  • Oct 7: Unemployment (NonFarms Payroll)

Join us NEXT WEEK at Stocktoberfest

  • Thursday, October 13 - Saturday, October 15
  • Location: Hotel del Coronado, San Diego

Option Block 561: Dangerous Call Volatility

Trading Block: It is that time of the month: OCC Cleared Contract volume up 2% in September. Exchange-listed options volume reached 357,041,027 contracts in September, up one percent from September 2015 volume of 354,782,668 contracts. TSLA: Quarterly...
Posted October 4th, 2016

Trading Block: It is that time of the month: OCC Cleared Contract volume up 2% in September. Exchange-listed options volume reached 357,041,027 contracts in September, up one percent from September 2015 volume of 354,782,668 contracts. TSLA: Quarterly sales numbers are strong. 70% increase in delivered cars over Q2. Production up 35%.

Odd Block: Puts trade in Deutsche Bank AG (DB), alls roll out in Pfizer Inc (PFE) and calls trade in Wells Fargo Co (WFC).

Mail Block: Listener questions and comments

Last Week Options #QuestionOfTheWeek -How will the election impact $VIX? Are we heading for #Trump-ocalypse or #Clint-astrophe? Share your feelings.

  • 43% Spike > 20 - Blame Trump
  • 11% Spike >20 - Blame Clinton
  • 17% No impact (12-14 range)
  • 29% Modest Increase (15-20)

This Week Options #QuestionOfTheWeek - What is your preferred way to trade #Volatility? $VIX? $VXX? $XIV? $SPX? $SPY? DM/Reply with alternatives

  • VIX Options/Futures?
  • VXX?
  • XIV?
  • S&P Strad/delta-neutral?

Comments for listeners:

  • Comment from Mark Brandt - About last episode, The Sex Appeal of Options: SPX is a hot chick! Liked the put diagonal collar concept for open upside!
  • Comment from Charlesturro - @OptionsInsider These are looking good today!! - regarding this activity - 6136 $DVAX Jan2017 18 calls went up on the PHLX marked buy write

Around the Block:

Earnings highlights this week include:

  • Tuesday - Micron Technology, Inc.
  • Wednesday - Monsanto Company and Yum! Brands, Inc.

This Week in the market:

  • Oct 5: International Trade, Factory Orders
  • Oct 6: Jobless Claims
  • Oct 7: Unemployment (NonFarms Payroll)

Join us at A Leg To Stand On's (ALTSO) Rocktoberfest

Date: Thursday, October 6 2016

Time: 6pm - 11pm

Location: City Winery, 1200 W Randolph Street, Chicago

For more information, please visit the Rocktoberfest website.

 


Option Block 560: The Sex Appeal of Options

Today we have a very special guest co-host, Benjamin Londergan, Executive Managing Director and Head of Options Trading and Technology, Convergex. Trading Block: Most indices closed sharply lower. That means the VIX closed higher. Was Deutsche Bank...
Posted September 30th, 2016

Today we have a very special guest co-host, Benjamin Londergan, Executive Managing Director and Head of Options Trading and Technology, Convergex.

Trading Block: Most indices closed sharply lower. That means the VIX closed higher. Was Deutsche Bank the biggest story of the day? The media dropped the dreaded "D" word. Crude is up again. Revisiting the CBOE/BATS deal.

Odd Block: Size PFE time spread goes up, size BHI call buyers and VNDA parity calls and combos trade.

Strategy Block: Uncle Mike discusses the biggest frustrations with collars and alternatives to that.

Mail Block: Listener questions and comments

  • What's the deal with PG?

Around the Block: Will the markets move from the election? The post-debate analysis.

Options #QuestionOfTheWeek:

How will the election impact $VIX? Are we heading for #Trump-ocalypse or #Clint-astrophe? Share your feelings.

  • Spike > 20 - Blame Trump
  • Spike > 20 - Blame Clinton
  • No impact (12-14 range)
  • Modest Increase (15-20)

Option Block 559: Options Buyout Frenzy

Trading Block: Vol begins to head north again after a big selloff in VIX on Friday. The debates are coming! Merkel has no love for Deutsche Bank. Golf loses a king, Arnold Palmer. What can investors learn from his endorsements? Are you seeing Trump in...
Posted September 27th, 2016

Trading Block: Vol begins to head north again after a big selloff in VIX on Friday. The debates are coming! Merkel has no love for Deutsche Bank. Golf loses a king, Arnold Palmer. What can investors learn from his endorsements? Are you seeing Trump in the rearview mirror? CBOE agrees to buy market operator Bats for $3.2 Billion. With a B. Interesting turn into exchange consolidation rather than fragmentation.

Odd Block: Puts trade in EWG, calls trade in TCK and calls trade in DVAX.

Mail Block: Listener questions and comments

  • Question from @investor17 - Can you please highlight if PG puts were sold or bought? And give perspective on what these high Oct puts strikes 120 mean? (The information in question came from the Hot Options Report for 9.23.16.)

Around the Block: Have you checked out the OptionsHouse blog? OPEC meeting coming up, and they invited Russia. Deutsche Bank aftermath? The Fed.


Option Block 558: Sucking Up the VIX Slurpee

Trading Block: VIX apocalypse post-Fed. It looks like we were not pessimistic enough on Vol Views last week! How will next weeks first Presidential debate effect vol? Wall Street extends rally after Fed rate decision. Fed is perilously close to losing...
Posted September 23rd, 2016

Trading Block: VIX apocalypse post-Fed. It looks like we were not pessimistic enough on Vol Views last week! How will next weeks first Presidential debate effect vol? Wall Street extends rally after Fed rate decision. Fed is perilously close to losing its credibility, says economist.

Odd Block: Calls trade in ETSY Inc (ETSY), from Monday, calls trade in Bank of America Corp (BAC), calls trade in Encana Corp (ECA), and calls trade in Pandora Media Inc (P).

Strategy Block: Mike Tosaw discusses call spreads vs. put spreads.

Mail Block/Options #Questionoftheweek:

  1. Where will $VIX close after FOMC decision on Wednesday 9/21?
  2. Between 15.51 - 16.50
  3. Between 14.50 - 15.50
  4. Below 14.50
  5. Above 16.50
  • Question from Sean O - Are there any options that had lopsided trading to one side - either puts or calls - leading into the Fed announcement?

Around the Block/This Week in the Market:

  • Sep 22: Jobless Claims, Existing Home Sales

Option Block 557: Get Your Bowels in an Uproar

Trading Block: AAPL! It is no longer the Feds market, it is now Apple's market. Last week Apple essentially carried the S&P 500, Dow, and NASDAQ, having one of its best weeks ever climbing 12% in only 5 days, or more than $75B in market cap!...
Posted September 20th, 2016

Trading Block: AAPL! It is no longer the Feds market, it is now Apple's market. Last week Apple essentially carried the S&P 500, Dow, and NASDAQ, having one of its best weeks ever climbing 12% in only 5 days, or more than $75B in market cap! NASDAQ: The NASDAQ is now less than 1% away from hitting fresh all-time highs - The current all-time high is 5,287.61.

Odd Block: Calls trade in Infoblox Inc (BLOX), calls trade in Etsy Inc. (ETSY) and calls and puts trade in Plains GP Holdings LP (PAGP)

Mail Block: Listener questions and comments

  • OptionMonster question of the week: What is the difference between buying a debit call spread versus selling a credit put spread?
  • Question from Richard Russell: To clarify my question, at 14:00 of episode 553 you state that a $6 straddle was pricing an 8% move following earnings. is this just the current ATM straddle?
  • Question from Fred: I have listened to some of your broadcast and they were over my head. Which one should I focus on to listen to as a beginner?

Around the Block/This Week in the Market:

Sep 20: Housing Starts

  • Sep 21: EIA Petroleum Status, FOMC Announcement
  • Sep 22: Jobless Claims, Existing Home Sales

Earnings for the Week:

  • Tuesday: Adobe Systems Corporation, FedEx, KB Home, Lennar Corporation
  • Wednesday: Bed Bath & Beyond, CarMax, General Mills, Herman Miller
  • Thursday: Rite Aid

Option Block 556: Flimflammery and Skull Blockery

Trading Block: Volatility is coming back! Wall Street gains on Apple, dimmer chances of rate hike. Odd Block: Calls trade in Lending Club Corp (LC), calls trade in Infoblox Inc (BLOX), and calls trade in Technology SPDR (XLK) Mail Block: Listener...
Posted September 16th, 2016

Trading Block: Volatility is coming back! Wall Street gains on Apple, dimmer chances of rate hike.

Odd Block: Calls trade in Lending Club Corp (LC), calls trade in Infoblox Inc (BLOX), and calls trade in Technology SPDR (XLK)

Mail Block: Listener questions and comments

  • Question from Yukoner: Do you ever do spreads in LEAPS? Why and how? So I used trade the LEAPS rather than guy the stock. Is that s good use case?
  • Question from Trader Shawn: What is the difference between USO and UCO?
  • Question from Vegs: I am seeing lots of big fat options OI tied to the big ES 2200 strike. Does this mean big traders are betting that the S&P will rally past 2200? Can all of this open interest have the net effect of forcing the S&P to that strike at expiration? Do you view this open interest solely coming from pros, or are retail reflecting there as well?

Strategy Block: Uncle Mike Tosaw discusses vertical LEAPS rolls.

Around the Block/This Week in the Market: Sep 16: CPI, Consumer Sentiment


Option Block 555: Will the Fed Please Shut Up

Trading Block: Dow rebounds 130 points amid rate hike debate. Vol explodes higher and the bulls' confidence is tested. TSLA: Shares of Tesla Motors Inc. fell in pre-market trading but was slightly higher after the open. SSNLF: Shares of the world's...
Posted September 13th, 2016

Trading Block: Dow rebounds 130 points amid rate hike debate. Vol explodes higher and the bulls' confidence is tested. TSLA: Shares of Tesla Motors Inc. fell in pre-market trading but was slightly higher after the open. SSNLF: Shares of the world's biggest smartphone maker plunged 7% Monday.

Odd Block: Calls trade in Gold Fields Ltd (GFI), calls trade in Southwestern Energy Co. (SWN), puts trade in HCA Holdings Inc. (HCA).

Mail Block: Listener questions and comments

  • Question from JDiggs - What is up with Uber IPO? They crapped away over $1B in the first half of this year already. I can't wait to buy puts on them! Although I guess those puts would probably be pretty pricey since I can't be the only one who think these numbers are crazy.
  • Question from Begs - When ES shoots up and at an all-time high in summer, farms are slow. It was very likely Monday would be thin in the market. Is it possibly to sell premiums when this happens, and make money on quiet Monday?

Around the Block/This Week in the Market: It is a heavy week as far as economic reports go with Thursday at 7:30 CT being exceptionally busy for reporting. In addition, quadruple witching expiration takes place on Friday.

  • Sep 13: Treasury Budget
  • Sep 14: Import and Export Prices
  • Sep 15: Jobless Claims, PPI, Retail Sales
  • Sep 16: CPI, Consumer Sentiment

Option Block 554: Crude Battle Plus the Collar-Risk Reversal Breakdown

Trading Block: August this year was the lowest average daily volume for puts and calls since October 2012. Stocks to Watch: TWTR - Stock off over 5% AAPL - World not enthused with new iPhone, stock off nearly 3% TSLA - Stock back below $200 - With...
Posted September 9th, 2016

Trading Block: August this year was the lowest average daily volume for puts and calls since October 2012.

Stocks to Watch:

  • TWTR - Stock off over 5%
  • AAPL - World not enthused with new iPhone, stock off nearly 3%
  • TSLA - Stock back below $200 - With the combined weight of SCTY deal controversy, cash squeeze and SpaceX explosion.
  • SBUX - CEO endorses Hilary, stock off nearly 2%.
  • Crude stock drop sparks rally. U.S. crude stocks fell by a whopping 14.5 million barrels last week.

Odd Block: Calls trade in TransOcean LTD (RIG), calls trade in Chesapeake Energy (CHK), and calls trade in iShares FTSE / China ETF (FXI)

Mail Block: Listener questions and comments

  • Question from JPMTrader: What is the call and put volume like for expirery for the 110s and 107s in Apple?
  • Question from TradeCraft: Is there a correlation between high options OI and high options price levels?

Around the Block/ This Week in the Market:

  • Sep 7: JOLTS, Beige Book
  • Sep 8: Jobless Claims, EIA Petroleum Status

Earnings tomorrow include:

  • The Kroger Company
  • Mattress Firm Holding Corp

Option Block 553: Hearing Crickets

Trading Block: OCC Cleared Contract volume down 24% in August. Earnings today: (before the bell) Campbell Soup Co., Lands End, Vera Bradley; (after the bell) Lululemon Athletica Inc. Bill Gross says Janet Yellen has "Mastered the art of market...
Posted September 2nd, 2016

Trading Block: OCC Cleared Contract volume down 24% in August. Earnings today: (before the bell) Campbell Soup Co., Lands End, Vera Bradley; (after the bell) Lululemon Athletica Inc. Bill Gross says Janet Yellen has "Mastered the art of market manipulation." U.S. stocks turn lower to start September on unsteady footing as energy sinks.

Odd Block: Puts trade in Iridium Communications Inc. (IRDM), calls trade in Chevron Corp. (CVX) and calls trade in Pandora Media Inc. (P).

Strategy Block: Uncle Mike Tosaw discusses a real life collar example.

Mail Block: Listener questions and comments

  • Question from Richard Russell: Can you explain in detail how you use the spread trade parameters to predict the anticipated underlying movement at expiration?
  • Question from Fred: Can you talk about how you assemble a watch list for options trades? Including individual stocks and options trades.

Around the Block: Reviewing LULU, non-farms number released tomorrow.


Option Block 552: Controversy Options: VRX, HLF, MYL and More

Trading Block: Stocks to Watch: Mylan, Herbalife, and Caesars Entertainment. Mylan on Monday said it would launch a generic alternative to EpiPen at a 50% discount after being criticized for dramatically raising the price of the lifesaving drug....
Posted August 30th, 2016

Trading Block: Stocks to Watch: Mylan, Herbalife, and Caesars Entertainment.

  • Mylan on Monday said it would launch a generic alternative to EpiPen at a 50% discount after being criticized for dramatically raising the price of the lifesaving drug. Shares gained 2.4% to $44.05 in premarket trading.
  • Carl Icahn bought more shares in Herbalife on Friday, just days after he weighed selling his stake in the controversial nutritional-products maker. Herbalife shares rose 2.7% to $62.11 premarket.
  • Federal Reserve Chair Janet Yellen speaking from Jackson Hole indicated that the U.S. central bank was nearing the point of raising the short-term Fed Funds rate once again, possibly at their September meeting.
  • VIX index (13.65%) ticked slightly higher last week trading above 14% Friday, indicating that investors were once again increasing their bids for option premiums.

Odd Block: Reviewing a trade from last week in Big lots Inc. (BIG), MSFT strangle seller, Possible roll of MOMO calls, and breakout calls trading in GNW.

Mail Block: Listener questions and comments

  • Question from Hemet: What is the best way to trade diagonals on VRX?
  • Question from Jesse: So, I am LOVING The Options Insider, wish I had discovered you a long time ago.  You were asking Rock Lobster listener feedback - and you mentioned something like "even though you get all your juice for free..." Was that a pop-culture reference, or is he somehow buying call options for free... or just super cheap that it seems free? Do you mind clarifying? Thanks for the great shows.

Around the Block/This Week in the Market:

  • Aug 29: Personal Income
  • Aug 30: Consumer Confidence
  • Aug 31: Chicago PMI
  • Sep. 1: Jobless Claims
  • Sep. 2: Unemployment, International Trade, Factory Orders

Option Block 551: Epic MYL Rant and HPQ Call Fail

Trading Block: Earnings today include: Gamestop, Ulta Salon, Cosmetics and Fragrance. Gamestop (GME) is at $32.21, ATM straddle: $1.50, or approx. 4.6%. Stocks to Watch: Mylan, Medtronic, Signet Jewelers, Sears, Guess. Mylan NV responded Thursday to...
Posted August 26th, 2016

Trading Block: Earnings today include: Gamestop, Ulta Salon, Cosmetics and Fragrance. Gamestop (GME) is at $32.21, ATM straddle: $1.50, or approx. 4.6%. Stocks to Watch: Mylan, Medtronic, Signet Jewelers, Sears, Guess. Mylan NV responded Thursday to backlash over price increases for its EpiPen emergency allergy treatment by promising to reduce the costs that some patients pay, though the drugmaker stopped short of saying it would roll back prices or limit future increases. Shares rose 2.18% to $44.09 premarket. What to expect from Fed Chair speech at Jackson Hole.

Odd Block: From 8/24) Earnings call buyers in HP Inc. (HPQ), Jan vertical buyers in United Continental Holding Inc. (UAL), call buying across strikes in Goldcorp Inc. (CG), and put spread buying in Big Lots Inc.(BIG).

Strategy Block: Uncle Mike Tosaw discusses trading covered calls, even when they are not paying a lot.

Mail Block/Options #QuestionOfTheWeek:

$USO is trading at $11, up 19% in Aug. The Sep ATM straddle is at $.80, 10 Puts at $.10, 12 Calls at $.09.

Would you:

  • Sell the Straddle
  • Buy the Straddle
  • Buy put/Collar
  • Sell Put/Bull Risk Revers

Around the Block/This Week in the Market:

  • Aug 26: GDP, International Trade, Consumer Sentiment

Option Block 550: Buy Your War Bonds Now

Trading Block: The one- year anniversary of the 8/24 flash crash looms near. Yellen speech at Jackson Hole set to dominate mood on Wall Street. VRX continues its roller coaster ride. Up another 8% today - volume 1.5 ADV by 12PM. Calls 1.5 /1 over...
Posted August 23rd, 2016

Trading Block: The one- year anniversary of the 8/24 flash crash looms near. Yellen speech at Jackson Hole set to dominate mood on Wall Street. VRX continues its roller coaster ride. Up another 8% today - volume 1.5 ADV by 12PM. Calls 1.5 /1 over puts, IV 30 61. Sep. ATM straddle approx. $4, approx. 13%. Confirmed Monday that it has hired Zoetis executive Paul Herendeen as its new chief financial officer.

Odd Block: Calls trade in Starbucks Inc (SBUX), calls trade in Marvel Tech Group (MRVL), puts trade in General Growth Properties Inc (GGP)

Mail Block/Options #QuestionOfTheWeek:

$USO $11, up 19% in Aug, SEP ATM steaddle= $.80, 10 Put= $.10, 12 Call = $.09.

Would you:

  1. Sell the Straddle
  2. Buy the Straddle
  3. Buy put/Collar
  4. Sell Put/Bull Risk Reversal
  • Question from Natalie L. - I keep receiving email promotions from an ?expert? who says his top rule of trading is that he never buys options. He only sells them. What is this about? Is this a reliable approach to options trading or should I delete these emails?

Around the Block: A look at this week in the market:

  • Aug 23: New Home Sales
  • Aug 24: existing Home Sales
  • Aug 25: Jobless Claims, Durable Goods
  • Aug 26: GDP, International Trade, Consumer Sentiment

Option Block 549: Squeezy Mcheesenstein

Trading Block: Earnings today (before the bell): Wal-Mart, Hormel Foods, MSG Networks); (after the bell): Gap, Ross Stores. Wal-Mart closed at $73. ATM straddle $2.75, approx. 3.8% Options #QuestionoftheWeek: $VRX $26.66 up 7% Monday. IV30 is 63. HV30...
Posted August 19th, 2016

Trading Block: Earnings today (before the bell): Wal-Mart, Hormel Foods, MSG Networks); (after the bell): Gap, Ross Stores. Wal-Mart closed at $73. ATM straddle $2.75, approx. 3.8%

Options #QuestionoftheWeek: $VRX $26.66 up 7% Monday. IV30 is 63. HV30 is 99. Looking out 1 month would you rather:

  • Buy Calls?
  • Buy Puts?
  • Sell Premium?
  • Will not touch $VRX

Odd Block: Calls trade in JA Solar Holdings Co. (JASO), puts trade in iPath SP Crude Oil ETF (OIL), puts roll in Eli Lilly and Co (LLY), and puts trade in Harley-Davidson Inc (HOG).

Strategy Block: Uncle Mike Tosaw discusses long-term collars and bonds.

Mail Block: Listener questions and comments

  • Question from RealRK: Speaking about bonds, any better option than buying puts on HYG in anticipation of rate hikes and since it was lagged the price of oil?
  • Question from Vegs: Lots of big fat options OI tied to big ES 2200. How do I see this information? Does this mean big traders are betting on 2200? Does that mean pros or retail?

Around the Block: Earnings highlights for Friday include: Deere & Company, Estee Lauder Companies, Foot Locker, Stein Mart


Option Block 548: Chatting About VRX, VIX, AMZN, PAAS and more

Trading Block: New all-time highs across most major indices. Oil rallies yet again; up 1.5%. VIX cash still below the 12-handle. Earnings Tuesday: BMO. Stock $137. ATM straddle approx. $4/3%. Odd Block: Vertical put buying in Polaris Industries Inc....
Posted August 16th, 2016

Trading Block: New all-time highs across most major indices. Oil rallies yet again; up 1.5%. VIX cash still below the 12-handle. Earnings Tuesday: BMO. Stock $137. ATM straddle approx. $4/3%.

Odd Block: Vertical put buying in Polaris Industries Inc. (PII), vertical call buying in Energy Transfer Partners LP (ETP), buying calls in Akamai Technologies Inc. (AKAM)

Mail Block/Options Question of the Week: What is your preferred way to trade crude oil? #QOTW

  1. WTI Options/Futures
  2. USO Options/ETF
  3. XLE Options/ETF
  4. Brent Options/Futures
  • Question from Joe736: Do you think VRX will selloff a buck to open tomorrow?

Around the Block: This Week in the Market

  • Aug 15: Treasury International
  • Aug 16: CPI, Housing Starts, Industrial Production
  • Aug 17: Fed Minutes
  • Aug 18: Jobless Claims

Option Block 547: TWTR Frenzy, BABA Bounce and VRX Volatility

Trading Block: Strong earnings, surge in oil power Dow to record intraday high. Earnings today: Before the bell: Alibaba Group Holding Ltd, Kohls Corporation, Macys Inc.; After the bell: Cosi, Inc., Nordstrom Inc. VRX: ATM straddle approx. $3, 13%. So...
Posted August 12th, 2016

Trading Block: Strong earnings, surge in oil power Dow to record intraday high. Earnings today: Before the bell: Alibaba Group Holding Ltd, Kohls Corporation, Macys Inc.; After the bell: Cosi, Inc., Nordstrom Inc. VRX: ATM straddle approx. $3, 13%. So much for put buyers Stock opened $1.50 higher and closed nearly $6 higher - surrendered most of those gains today.

Odd Block: Calls trade in Twitter Inc (TWTR), calls trade in Alibaba Group Holdings (BABA), puts trade in SPDR Retail ETF (XRT)

Mail Block: Options Question of the Week

Options #QuestionoftheWeek. What is your preferred way to trade crude oil? #QOTW

  1. WTI Options / Futures
  2. USO Options / ETF
  3. XLE Options / ETF
  4. Brent Options / Futures
  • Question from Rpatel117 - Do you guys think DIS cross 100 this week?"
  • Question from Matrix - Never sold options before. Why do some people prefer to sell them when they can buy them instead?
  • Question from Cucas - What are the best resources for weeklies?

Around the Block: This Week in the Market

  • Aug 9: Productivity and Costs
  • Aug 10: JOLTS, Treasury Budget
  • Aug 11: Jobless Claims, Export Prices
  • Aug 12: Retail Sales, Consumer Sentiment

Option Block 546: VRX and Buffett's Weapons of Mass Destruction

Trading Block: Earnings today include (before): Dean Foods, Sotheby's, Tyson Foods; (after) Hertz Global Holdings, Rackspace, WebMD Health Corp. Options bears descend on Valeant ahead of earnings. Traders are betting shares are due for even more pain....
Posted August 9th, 2016

Trading Block: Earnings today include (before): Dean Foods, Sotheby's, Tyson Foods; (after) Hertz Global Holdings, Rackspace, WebMD Health Corp. Options bears descend on Valeant ahead of earnings. Traders are betting shares are due for even more pain. Non-farm payroll brightens the U.S. economic outlook.

Odd Block: Puts trade in Tupperware Brands Corp. (TUP), puts trade in SM Energy Co. (SM), calls trade in Targa Resources Corp. (TRGP)

Strategy Block: Uncle Mike Tosaw discusses money management

Around the Block: Earnings highlights for the week.

  • Tuesday: Coach, Exelon Corporation, Tribune Media Company, Valeant Pharmaceuticals, Walt Disney Company, Yelp
  • Wednesday: Michael Kors Holdings, JD.com, Ralph Lauren, Shake Shack, The Wendy Company
  • Thursday: Alibaba Group Holding Ltd, Kohls Corporation, Macys Inc., Nordstrom Inc.
  • Friday: JC Penney Company

Option Block 545: Dump Like an Elephant

Trading Block: Earnings today: AMC Networks, HH Gregg, Icahn Enterprises, MGM Resorts International, Nokia Corporation, Starwood Property Trust, Time Inc. (before); Activision Blizzard, Almo Group, Bats Global Markets, LinkedIn Corporation, Lions Gate...
Posted August 5th, 2016

Trading Block: Earnings today: AMC Networks, HH Gregg, Icahn Enterprises, MGM Resorts International, Nokia Corporation, Starwood Property Trust, Time Inc. (before); Activision Blizzard, Almo Group, Bats Global Markets, LinkedIn Corporation, Lions Gate Entertainment Corporation, Weight Watchers International, Zillow (after). ATVI at $40.84, approx. 7%. Takeover rumor sparks busy day in Twitter options.

Odd Block: Aug call buyers in Comcast Corp (CMCSA), selling calls in Noble Corporation PLC (NE), and put buying in Market Vectors Gold Miners ETF (GDX).

Mail Block/Options Question of the Week: Twitter poll AND listener questions and comments

What is most important to you when choosing an options broker?

  1. Commissions
  2. Platform Features
  3. Support/Service
  4. Educational Offerings
  • Question from Grasshopper: I have heard options strategies may be vulnerable to "dump like an elephant" concerns criticism. Are the losses big, are high win rate strategies a cause for suspicion?
  • Question from Fred: Would trading options change that way I look at/trade futures?
  • Question from Anthony Cioffi: I have got a somewhat off-topic question from the show. I know Mark is a fight fan. What does he think of the recent sale of the UFC for $4.2 billion?Good deal, or did they dramatically over pay? What are the odds that the UFC will eventually go public as a result of this deal? It would be fun to trade options on that name. They would probably be very volatile heading into big fight cards.

Around the Block: Earnings on Friday:Virgin America.

This Week in the Market:

  • Aug 4: Jobless Claims, Factory Orders
  • Aug 5: Non-Farm Payrolls, International Trade

Option Block 544: The Great Options Broker Debate: Commissions Vs. Platform

Trading Block: Earnings today include: AMC Entertainment Holdings, Loews Corporation (before), and Dunn & Bradstreet, General Growth Properties (after). U.S. stocks pressured as oil losses mount. Crude back below $40. BATS to launch ?BAM?...
Posted August 2nd, 2016

Trading Block: Earnings today include: AMC Entertainment Holdings, Loews Corporation (before), and Dunn & Bradstreet, General Growth Properties (after). U.S. stocks pressured as oil losses mount. Crude back below $40. BATS to launch ?BAM? Options Auctions, offering competitive price improvement opportunity.

Odd Block: Calls selling and buying in MetLife (MET), calls selling in FDC First Data Corp (FDC), and LEAPS put buying in Trina Solar Limited (TSL).

Strategy Block: Uncle Mike Tosaw discusses portfolio margining

Options Question of the Week: What is most important to you when choosing an options broker?

  • Commissions
  • Platform Features
  • Support/Service
  • Educational Offerings

Around the Block: Earnings Highlights for the Week.

  • Tuesday: Avis Budget Group, CVS Health Corporation, Ecolab, Electronic Arts, Etsy, Fitbit, Intercontinental Hotels Group, La Quinta, Pfizer, Potbelly Corporation, Royal Caribbean Cruises
  • Wednesday: Cedar Fair, Crocs, GoDaddy, Herbalife, Intercontinental Exchange, Office Depot, Tesla Motors, Time Warner, Twenty-First Century Fox
  • Thursday: Activision Blizzard, Almo Group, AMC Networks, Bats Global Markets, HH Gregg, Icahn Enterprises, LinkedIn Corporation, Lions Gate Entertainment Corporation, MGM Resorts International, Nokia Corporation, Starwood Property Trust, Time Inc, Weight Watchers International, Zillow
  • Friday: Virgin America

Option Block 543: Broker Buying Sprees and Earnings Breakdowns

Trading Block: Big news! OptionsHouse is now the sponsor of The Option Block. Earnings today include CME, FORD, DOW. Ford off nearly 9% AMZN: $748.50. ATM Straddle approx. $50, 6.6% GOOG: $742. ATM Straddle approx. $38.50, 5%. Odd Block: Calls trade...
Posted July 29th, 2016

Trading Block: Big news! OptionsHouse is now the sponsor of The Option Block.

Earnings today include CME, FORD, DOW.

  • Ford off nearly 9%
  • AMZN: $748.50. ATM Straddle approx. $50, 6.6%
  • GOOG: $742. ATM Straddle approx. $38.50, 5%.

Odd Block: Calls trade in ETSY Inc. (ETSY), calls trade in The Technology SPDR (XLK), calls and puts trade in Yandex NV (YNDX)

Mail Block: Listener questions and comments

  • Question from AWorth: Can the Options House guys explain how their short buyback program works? Is it only for outright shorts, or if I have a short leg of a spread that is near the money on expiration but trading under $.10, can I close that out without commission or do I have to close the whole spread?
  • Question from Thomas Hatch: I like dividend yield stocks. I listened to an earlier show and you mentioned writing covered calls to generate dividends. Can I apply this strategy to dividend yield stocks? Any risks I should watch out for when doing this?
  • Question from 777: Are you aware of any specific gold arb between chinese gold derivatives and their U.S. equivalents?

Around the Block: Earnings on Friday include CBOE, Exxon-Mobil (XOM), Merck (MRK) and UPS (UPS). This weekin the market sees GDP, Consumer Sentiment on July 29.


Option Block 542: VZ Buys YHOO, plus AAPL Downgrade

Trading Block: Earnings! Not many earning today, but a big week is ahead. Apple after the bell tomorrow. Stock at $97.27, ATM Straddle approx. $2.90, or 3%. Oil prices fell to two-and-a-half month low. Verizon owns the internet from the 90s, AOL last...
Posted July 26th, 2016

Trading Block: Earnings! Not many earning today, but a big week is ahead. Apple after the bell tomorrow. Stock at $97.27, ATM Straddle approx. $2.90, or 3%. Oil prices fell to two-and-a-half month low. Verizon owns the internet from the 90s, AOL last year, Yahoo today.

Odd Block: Calls trade in Crown Castle Inter. (CCI), call buying in Bank of America (BAC), call selling in iShares MSCI Japan ETF (EWJ), and put selling in Lululemon Athletica Inc. (LULU).

Strategy Block: Uncle Mike Tosaw discusses selling put spreads on a dip in the marketplace.

Around the Block: Upcoming earnings include:

  • AMZN
  • F
  • GOOG
  • TWTR
  • FB

Option Block 541: Revenge of the Schwartzotron

Trading Block: Most major markets off 0.5% or more. VIX cash watch. Earnings today (before) Dunkin Brands,General Motors, Marriott Vacations, Southwest Airlines; (after) AT&T, Chipotle Mexican Grill, E*Trade Financial (ETFC). Apple Watch is a...
Posted July 22nd, 2016

Trading Block: Most major markets off 0.5% or more. VIX cash watch. Earnings today (before) Dunkin Brands,General Motors, Marriott Vacations, Southwest Airlines; (after) AT&T, Chipotle Mexican Grill, E*Trade Financial (ETFC). Apple Watch is a flop!

Odd Block: Calls trade in Nobel Corporation (NE), calls trade in Teucrium Corn Fund (CORN), calls and puts trade in Ebay Inc (EBAY), and calls trade in Mattel Corp (MAT).

Mail Block: Listener questions and comments....LIVE!

  • Size aside, what are the primary benefits of using SPX instead of SPY.
  • What is going on in the VIX Aug 13 puts?
  • Which names are the most reliable premium writes each quarter?
  • Is there a tradeable pair between VIX and another member of the family of volatility products?
  • What to do with the upcoming UVXY reverse split?

Around the Block: Earnings on Friday: American Airlines, General Electric Company, TCF Financial, Whirlpool Corporation.


Option Block 540: Free Trades with Every Pokemon

Trading Block: The coup that wasn't. Earnings today include Bank of America, Hasbro, Charles Schwab Corp., (before) and IBM, Netflix, Yahoo (after). A Brexit swoon boosts US options volume to a 10-month high. Odd Block: Size puts in IZE iShares MSCI...
Posted July 19th, 2016

Trading Block: The coup that wasn't. Earnings today include Bank of America, Hasbro, Charles Schwab Corp., (before) and IBM, Netflix, Yahoo (after). A Brexit swoon boosts US options volume to a 10-month high.

Odd Block: Size puts in IZE iShares MSCI Turkey Market Index ETF (TUR), calls trade in Nobel Energy (NE), calls trade in Market Vectors Russia ETF (RSX), and calls and puts trade in ArcelorMittal SA (MT).

Strategy Block: Uncle Mike Tosaw diagonal spreads and when to know the market is at a low.

Around the Block: Earnings!

  • Tuesday: Discover Financial Services, Electronic Arts, Goldman Sachs, Interactive Brokers, Microsoft Corporation, TD Ameritrade
  • Wednesday: Abbott Labs, American Express, eBay, Intel Corporation, MB Financial, Morgan Stanley, Northern Trust
  • Thursday: AT&T, Chipotle Mexican Grill, Dunkin Brands, E*Trade Financial, General Motors, Marriott Vacations, Pandora Media, PayPal, Southwest Airlines, Visa, Inc.
  • Friday: American Airlines, General Electric Company, TCF Financial, Whirlpool Corporation

Option Block 539: Transaction Taxes, Call Frenzies, and Fake Dividends

Trading Block: Earnings today include: JPMorgan Chase, Delta Air Lines. Legislation to impose financial transactions tax introduced. Clinton aims "Wall Street" tax at Flash Boys, not banks. Odd Block: Calls trade in ConAgra Foods Inc. (CAG), calls...
Posted July 15th, 2016

Trading Block: Earnings today include: JPMorgan Chase, Delta Air Lines. Legislation to impose financial transactions tax introduced. Clinton aims "Wall Street" tax at Flash Boys, not banks.

Odd Block: Calls trade in ConAgra Foods Inc. (CAG), calls trade in HollyFrontier Corp (HFC) and calls trade in Credit Suisse Group (CS).

Mail Block: Listener questions and comments

  • Question from Dmitry: What happens to Leaps for tickers that get delisted before expiration?
  • Question from Mark Davis: Hello, I am a new listener. There was a mention of using covered calls to generate a "dividend". I am having trouble tracking down more information on this. Being still new to all of this, I am hoping to get a clearer picture of how it works. How far out on expiration should I look at to figure the stock price? Thanks!

Around the Block: Earnings on Friday include Citigroup, PNC Financial Services, US Bancorp, Wells Fargo


Option Block 538: The Hottest Girl at the Dance

Trading Block: Today we have a specail co-host, Steve Claussen, Chief Investment Strategist, OptionsHouse. What do the all-stars discuss? Earnings today: Alcoa Inc. ATM Straddle approx. $.65-6.5%. The S&P hits new all-time high, Nasdaq above...
Posted July 12th, 2016

Trading Block: Today we have a specail co-host, Steve Claussen, Chief Investment Strategist, OptionsHouse. What do the all-stars discuss?

  • Earnings today: Alcoa Inc. ATM Straddle approx. $.65-6.5%.
  • The S&P hits new all-time high, Nasdaq above 5,000.
  • CBOE to list SPX Monday-expiring Weeklys Options.
  • Pokemon Go craze sends Nintendo stock soaring.

Odd Block: Short-term bulls go shopping at Macy's (M); calls trade in Sprouts Farmers Market Inc. (SFM); calls trade in Lifelock Inc (LOCK), and; puts trade in Deutsche Bank AG (DB)

Strategy Block: Uncle Mike Tosaw discusses alternatives to covered call trading.

Mail Block: Listener questions and comments

Around the Block: Earnings!

  • Wednesday: Yum! Brands, Inc.
  • Thursday: JPMorgan Chase, Delta Air Lines
  • Friday: Citigroup, PNC Financial Services, US Bancorp, Wells Fargo

Option Block 537: Surprise Options Successes and Failures

Trading Block: Post-Brexit market update. OCC Cleared contract volume up 11% in June. The urgency of the Fed to hike has faded away as Brexit further clouded the outlook. SEC approves NYSE request for new market volatility rules. Twitter Poll Options...
Posted July 8th, 2016

Trading Block: Post-Brexit market update. OCC Cleared contract volume up 11% in June. The urgency of the Fed to hike has faded away as Brexit further clouded the outlook. SEC approves NYSE request for new market volatility rules.

Twitter Poll Options Question of the Week: Which products' performance post-#Brexit surprised you the most?

  • 43%: Volatility (VIX, etc)
  • 0%: Rates (10yr, etc)
  • 52%: Equity Index: (SPY, etc)
  • 5%: FX (GBP/USD, EUR/USD etc)

Odd Block: Size call seller in Kinross Gold Corp (KGC), call buyer in General Electric (GE) and put seller in Interval Leisure Group Inc (IILG)

Mail Block: Listener questions and comments

  • Question from RazMichaghian: Info on how to set my stock scan on TOS on pre meters? Thank you
  • Question from JViz: Why do people trade options with stock? Why do they buy calls and then sell stock in the same trade? What advantage does that offer?
  • Question from AJones: Shame about Mini options. Great breakdown of the failing that doomed that product. Are there any other products out there that surprised you-either with their success or failure?

Around the Block: Friday, July 8: The health of the job market (Non Farm Payrolls Report)


Option Block 536: Hershey Insiders and VIX Iron Condors

Trading Block: Earnings today before the bell: ConAgra. U.S. lawmakers seek more money, authority for derivatives regulators. CFTC charges ex-Chicago Board Options Exchange director with fraud. Options Question of the Week Twitter Poll: Where will...
Posted July 1st, 2016

Trading Block: Earnings today before the bell: ConAgra. U.S. lawmakers seek more money, authority for derivatives regulators. CFTC charges ex-Chicago Board Options Exchange director with fraud.

Options Question of the Week Twitter Poll: Where will $VIX close on Friday in this first trading week post-#Brexit? #QOTW

  • 6%: Above 25
  • 13%: 22-24.99
  • 22%: 19-21.99
  • 59%: Below 19

Odd Block: Calls go up in Hershey Co. (HSY), call buyers in Mondelez International Inc. (MDLZ), and put spread buyers in Encana Corp (ECA)

Mail Block: Listener questions and comments

  • Comment from Frank: @OpenOutcrier He must have ripped off somebody really important then...
  • Comment from BruceX555: Some nimble-footed traders have made a lot on Brexit, and I reckon plenty have lost plenty.
  • Question from Robert K.: ?Hi, on a debit spread is the most you could lose is your credit?
  • Question from Tor: Hello, I am (restarting) my options trading on a shoestring; any thoughts on mini-options? Thanks.

Around the Block: Vol coming in due to holiday weekend. Non-farms next week. Will there be a selloff due to quarter end? Will bonds come down at all? Mike is married....in gold.


Option Block 535: The Brexit Maelstrom

Trading Block: Brexit provides a review of pitfalls for options and futures traders. Oil extends decline as Brexit fallout spurs market volatility. Could the Fed potentially reverse course and cut rates? Odd Block: Calls trade in Crown Castle Inter....
Posted June 28th, 2016

Trading Block: Brexit provides a review of pitfalls for options and futures traders. Oil extends decline as Brexit fallout spurs market volatility. Could the Fed potentially reverse course and cut rates?

Odd Block: Calls trade in Crown Castle Inter. (CCI), puts trade in Starbucks Corporation (SBUX)

Strategy Block: Uncle Mike Tosaw discusses how to select the correct collar size.

Listener Mail: Listener questions and comments

  • Question from David Shanabrook: Can you check the $AAPL weekly options for this week? Huge open interest (put and call) at $100, $105 accelerated repurchase by Apple? What is the effect?

Around the Block: Earnings!

  • Tuesday: Nike, Inc.
  • Wednesday: General Mills, Monsanto Company, Pier1 Imports
  • Thursday: ConAgra Foods

Option Block 534: Should I Stay or Should I Go?

Trading Block: Brexit, Brexit, Brexit! Results due late Thursday night. Tesla owner Elon Musk wants to acquire SolarCity, another company he owns. Gold. Oil. Odd Block: Bull call spreads trade in RiteAid Corp. (RAD), bull call spreads trade in...
Posted June 24th, 2016

Trading Block: Brexit, Brexit, Brexit! Results due late Thursday night. Tesla owner Elon Musk wants to acquire SolarCity, another company he owns. Gold. Oil.

Odd Block: Bull call spreads trade in RiteAid Corp. (RAD), bull call spreads trade in Vanguard FTSE Europe ETF (VGK)

Mail Block: Listener questions and comments

  • Question from Robert K.: I would like to use strategy regarding naked puts. If the naked put is far out of money what strategy could I use to protect myself. Could I use some type of order in case it was getting close to naked put strike price. Thanks
  • Question from Tor: Hello. I am (restarting) my options trading on a shoestring; any thoughts on mini-options? Thanks.
  • Question from Cristoff: Do you guys only trade options, or do you trade futures too? How do you decide when to use which?
  • Question from 777: Are you aware of any specific gold arb between Chinese gold derivatives and their U.S. equivalents?

Around the Block: Brexit, Brexit, Brexit!


Option Block 533: Brexit Volatility Annihilation

Trading Block: Brexit: Much ado about nothing? Market rallies and VIX Cash sells off 2 handles, Dow jumps 200 points. Is that it for volatility? Goldman slashes stock demand estimates. Odd Block: Puts trade in Newmont Mining Corp (NEM), calls trade in...
Posted June 21st, 2016

Trading Block: Brexit: Much ado about nothing? Market rallies and VIX Cash sells off 2 handles, Dow jumps 200 points. Is that it for volatility? Goldman slashes stock demand estimates.

Odd Block: Puts trade in Newmont Mining Corp (NEM), calls trade in Credit Suisse Group AG (CS), and puts trade in Community Health Systems (CYH)

Strategy Block: Uncle Mike Tosaw discusses iron condors

Around the Block: Earnings!

  • Tuesday: Adobe Systems Incorporated, CarMax, FedEx Corporation, La-Z-Boy
  • Wednesday: Barnes & Noble, Bed, Bath & Beyond
  • Thursday: Accenture, BlackBerry Limited, Sonic Corp.

RCM Alternatives Event: Beyond The Stock Market: Investing 2.0
Tuesday, June 28, 2016
6:00 pm - 8:00 pm
1871 Auditorium | 222 W. Merchandise Mart Plaza Fl 12 | Chicago, IL

The CBOE & Option Pit Professional Traders Summit
Wednesday & Thursday July 20 & 21, 2016 (VIP session Friday morning July 22nd)
8:30 am to 5:30 pm
Chicago Board Options Exchange | 400 South LaSalle Street | Chicago, IL


Option Block 532: Dead Pro Wrestlers. And Brexit

Trading Block: Fed keeps rates unchanged, lowering odds for future hikes. Weak Nonfarms number derailed any Fed plans to raise in June. Earnings today: (before the bell) Oracle Corporation; (after the bell) the Kroger Co, Rite Aid Corporation. CME...
Posted June 17th, 2016

Trading Block: Fed keeps rates unchanged, lowering odds for future hikes. Weak Nonfarms number derailed any Fed plans to raise in June. Earnings today: (before the bell) Oracle Corporation; (after the bell) the Kroger Co, Rite Aid Corporation.

CME Fedwatch tool:

  • July probability: 7%
  • Sep: 29%
  • Nov: 31%
  • Dec: 47%

Options Question of the Week: $VIX surging ahead of FOMC, but for how long? Where will $VIX cash close Friday 6/17?

  • 19% - 18-20 range
  • 47% - 15-17.99 range (Winner)
  • 25% - Above 20
  • 09% - Below 15

Odd Block: Calls trade in Activision Blizzard Inc. (ATVI), calls trade in iShares Barclays 20+ year Treasury ETF (TLT) and calls roll in Wells Fargo & Co. (WFC).

Mail Block: Listener questions and comments

  • Question from Vegan: For an options newbie, how would I construct a trade with most possibilities to win? I understand that the potential profit might be small. What time frame is good as well?
  • Question from Jim Duggan: FOMC and Brexit are approaching. What are some good ways to use options to play Brexit or FOMC?
  • Question from John Doe: Do you have any specific strategies near or on expiration to profit from theta decay.

Around the Block: Brexit coming up on 6/23. Fade it? Buy into it? Much ado about nothing?


Option Block 531: Shady Options Activity in LinkedIn

Trading Block: Today we have a special guest co-host: Steve Claussen, Chief Investment Strategist, OptionsHouse. What's going on: VIX/VVIX surging ahead of FOMC - VIX Cash over 20, VVIX: 117. Suspicious options activity in LNKD/MSFT ahead of deal A...
Posted June 14th, 2016

Trading Block: Today we have a special guest co-host: Steve Claussen, Chief Investment Strategist, OptionsHouse.

What's going on:

  • VIX/VVIX surging ahead of FOMC - VIX Cash over 20, VVIX: 117.
  • Suspicious options activity in LNKD/MSFT ahead of deal
  • A group from Silicon Valley has a serious plan for creating a totally new US stock exchange.

Options Question of the Week Results: How are you prepping your portfolio for #BREXIT:

  • 23% Buying S&P / Index Puts
  • 27% Buying Vol -VIX, VXX, etc
  • 15% Moving to Cash
  • 35% BREXIT will not happen was the winner, but down from 50% earlier in the week.

Odd Block: Calls trade in JPMorgan Alerian MLP (AMJ), calls trade in SunPower Corp. (SPWR), calls trade in Barclays PLC (BCS)

Strategy Block: Uncle Mike Tosaw discusses being a bull ahead to the FOMC and Brexit.

Around the Block: What are the all-stars thinking about?

  • Earnings This Week: The Kroger Co, Rite Aid Corporation, Oracle Corporation.
  • Federal Reserve Meeting on Wednesday.

Option Block 530: Option Block from a Train

Trading Block: VIX remains somewhat muted heading into FOMC new week as well as Brexit the following week. Billionaire George Soros returns as a Brexit bear. He's also loading up on gold and GLD options, SPY puts. Odd Block: Calls trade in Market...
Posted June 10th, 2016

Trading Block: VIX remains somewhat muted heading into FOMC new week as well as Brexit the following week. Billionaire George Soros returns as a Brexit bear. He's also loading up on gold and GLD options, SPY puts.

Odd Block: Calls trade in Market Vectors Oil Services ETF (OIH), calls trade in AT&T (T), and calls trade in Marathon Petroleum Corp (MPC).

Mail Block: Listener questions and comments

  • Question from JMFarrare: Do you guys have a service that alerts on unusual options activity in the mornings on a daily basis? If not can you direct me to someone that does? Thanks, your website is great!
  • Question from 777: What adjustments should I make when trading options on expensive stocks vs. regular priced stocks vs. cheap stocks.
  • Question from Eric: The last few days I have traded October OIX calls. I made money, but felt like I left a lot of money on the table due to the bid ask spread. How could I have improved on this?

Around the Block: Triple witching plus FOMC equals wild week ahead.


Option Block 529: Options Scandals and Brexit Battles

Trading Block: Market not spooked by Yellen today. Brexit worry has radiated around world as poll puts traders on edge. Odd Block: Calls trade in Calpine Corp (CPN), calls trade in EI Dupont (DD), and calls trade Enterprise Products Partners (EPD)...
Posted June 7th, 2016

Trading Block: Market not spooked by Yellen today. Brexit worry has radiated around world as poll puts traders on edge.

Odd Block: Calls trade in Calpine Corp (CPN), calls trade in EI Dupont (DD), and calls trade Enterprise Products Partners (EPD)

Listener Questions: In which the listeners take over

  • Question from Andy Noble: What do you guys think about this scandal over the super trader? Another black eye for options?
  • Question from Andre Chiles: I am new to the market, but I was wondering if you could help me learn and make some money.
  • Question from Mr. Niggles: Saw the headline link on Options Insider about the stock replacement strategy. What do you think of using this strategy in the current market conditions?

Around the Block: Earnings!

  • Tuesday: Michaels, Dave & Busters
  • Wednesday: Lululemon Athletica, Restoration Hardware
  • Thursday: H&R Block

Option Block 528: Staring into the Eye of Sauron

Trading Block featuring guest co-host Todd Rich, President of OM Media (an affiliate of OptionsHouse). Crude oil and energy stocks It is that time of the month - volume time. OCC announced that cleared contract volume in May reached 319,533,636...
Posted June 3rd, 2016

Trading Block featuring guest co-host Todd Rich, President of OM Media (an affiliate of OptionsHouse).

  • Crude oil and energy stocks
  • It is that time of the month - volume time.
  • OCC announced that cleared contract volume in May reached 319,533,636 contracts, a four percent increase from the May 2015 volume of 308,639,215 contracts.
  • YTD average daily cleared contract volume is also up four percent from 2015 with 16,734,689 contracts.

Odd Block: Calls trade in Xilinx Inc. (XLNX), calls trade in iShares MSCI UK (EWU), calls and puts trade in Macys Inc. (M), and calls trade in Marriott International Inc. (MAR).

Mail Block: Listener questions and comments

  • Question from Niles - Are there any triple witching levels coming soon? If so, how do they influence the options market and expiration?
  • Question from Fred - I kind of hit a wall in my options development. Maybe my focus was too split between learning about futures and learning about options. Are you familiar with the books by Jim Dalton? He wrote a book about options trading but he does not like the greeks and he does not like many conventional options trading strategies. He only uses them when necessary. I guess this is a long way to asking when I should use options vs. futures
  • Question from Jack - Have you ever used the PREM indicator? It is for arbitrage traders. If so, how does it play out in the options market?

Around the Block: Non-Farms on Friday (to be released at 7:30 a.m. CDT Friday)


Option Block 527: Dubious Calls and Silly Stupids

Trading Block Featuring guest co-host Nick Howard, Bantix Soybean rundown: Is the collar skew still favorable? Gold rundown: GLD vs Futures options. The SEC has obtained a court order to freeze the profits of a trader who allegedly manipulated a...
Posted May 27th, 2016

Trading Block Featuring guest co-host Nick Howard, Bantix

Soybean rundown: Is the collar skew still favorable? Gold rundown: GLD vs Futures options. The SEC has obtained a court order to freeze the profits of a trader who allegedly manipulated a technology stock through a false regulatory filing traced to a computer in Pakistan.

Odd Block: Calls trade in WisdomTree India Earnings (EPI); calls trade in CurrencyShares Euro Trust (FXE); puts trade in Royal Bank of Canada (RY)

Mail Block Question of the Week:

  • How many US options exchanges will there be at the end of 2016?

1.) 14

2.) 15

3.) More than 15

4.) Less than 14

  • Question from Ms Fidious: What the heck is a stupid?
  • Question from MDavis82: Just started listening to the show. In one of the first few shows it was mentioned that you can use selling of options to in essence create a dividend on a non dividend stock. Is there more information about this laid out somewhere (puts, calls, how far out, what strike price, what if underlying goes up or down). Thank you and love the show!

Around the Block: What's coming up from the Fed? Holiday weekend. What's happening with the ag markets? Brexit and pound skew. Should we sell in May and go away?


Option Block 526: Options on a Sunny Day

Trading Block: Will anything useful come out of the Fed meeting? Will the United Kingdom leave the EU? Bayer offers to buy Monsanto for $62B Odd Block: Calls trade in Comcast Corp (CMCSA), calls and puts trade in Bed Bath and Beyond (BBBY), calls...
Posted May 24th, 2016

Trading Block: Will anything useful come out of the Fed meeting? Will the United Kingdom leave the EU? Bayer offers to buy Monsanto for $62B

Odd Block: Calls trade in Comcast Corp (CMCSA), calls and puts trade in Bed Bath and Beyond (BBBY), calls trade in Corning Incorporated (GLW)

Strategy Block: Uncle Mike Tosaw discusses how not to force a trade.

Mail Block: Listener questions and comments

  • Question from Trader Shawn - With the recent rise and fall of crude oil, is there an options tell that we can use intraday to see when these movements are setting up?
  • Question from T. Nguyen - G'day Options Insider! Just wanted to know if the members of the Option Block panel ever make use of offline options position modeling software and if so, which would be their recommendations and why? What about tablet/phone apps that model option positions? I am frequently in transit and do not always have the luxury of an internet connection to access my brokerage account, but I love testing and modeling positions, hence the question. Cheers

Around the Block: Earnings: Retail Earnings Parade Continues

  • Tuesday - Best Buy Co, Inc., DSW Inc., Hewlett Packard Enterprise Company, Intuit, Kirklands
  • Wednesday - Costco, Express, Guess?, Lions Gate Entertainment, Popeyes Louisiana Kitchen, Tiffany & Co, Williams-Sonoma
  • Thursday - Sears (before bell), Abercrombie & Fitch, Burlington Stores, Dollar General, Dollar Tree, GameStop, Movado, Ulta Salon
  • Friday - Big Lots

Option Block 525: Causing Confusion and Delay

Trading Block: Earnings Thursday (retail heavy) After the bell: Gap, Inc., Ross Stores, Shoe Carnival, Before the bell: Wal-Mart, Dick's Sporting Goods, HH Gregg, Stein Mart, The Bon-Ton Stores Stocks to watch: Wal-Mart, Monsanto, Advance Auto Parts,...
Posted May 20th, 2016

Trading Block: Earnings Thursday (retail heavy)

  • After the bell: Gap, Inc., Ross Stores, Shoe Carnival,
  • Before the bell: Wal-Mart, Dick's Sporting Goods, HH Gregg, Stein Mart, The Bon-Ton Stores
  • Stocks to watch: Wal-Mart, Monsanto, Advance Auto Parts, Tesla, Urban Outfitters.
  • This S&P 500 Death Cross could be the real deal.

Odd Block: Calls trade in Kinross Gold Corp (KGC), call buyers trade Coeur Mining Inc. (CDE) and puts trade in Market Vectors Gold Miners (GDX)

Mail Block: Listener questions and comments

  • Question from 777 - With commodity based ETF options - anyway to trade roll risk?

Around the Block: Earnings on Friday- Campbell Soup Company, Deere & Company, Foot Locker Inc. Rate hike watch: key dates and data.


Option Block 524: From Footloose to Options Trading

Trading Block: Weekend Review: VIX Options and Futures 5/9 through 5/13. Has VIX bottomed? Yen volatility surges as Central Bank meetings loom. Hedge funds are not what they used to be. Odd Block: Puts trade in Twitter Inc. (TWTR), puts trade in...
Posted May 17th, 2016

Trading Block: Weekend Review: VIX Options and Futures 5/9 through 5/13. Has VIX bottomed? Yen volatility surges as Central Bank meetings loom. Hedge funds are not what they used to be.

Odd Block: Puts trade in Twitter Inc. (TWTR), puts trade in Materials Select Sector SPDR (XLB), and puts trade in CF Industries Holdings inc. (CF)

Strategy Block: Uncle Mike Tosaw discusses ratio spreads and sector investing.

Mail Block: Last week, the options question of the week was "What is your favorite options trading film?" TWTR weighed in with the following:

  • 69% Trading Places
  • 23% Rogue Trader
  • 8% Quicksilver
  • and Mark B. offered up 9 1/2 weeks because Mickey Rourke was an arbitrageur.
  • Have you ever used the FCOJ scene from Trading Places to explain to people what you do?

Around the Block : Where will we see SPX, GLD, crude this week? Fed on Wednesday.


Option Block 523: How to Get Caught Cheating

Trading Block: S&P was all over the place, to settle down only 0.2%. A little flip on volatility. Apple is no longer the most valuable company in the world. Will online retailers take over retail stores? Are malls dead? Monsanto cheater, could you...
Posted May 13th, 2016

Trading Block: S&P was all over the place, to settle down only 0.2%. A little flip on volatility. Apple is no longer the most valuable company in the world. Will online retailers take over retail stores? Are malls dead? Monsanto cheater, could you be more obvious?

Odd Block: Big call buying in JNK, massive long-term call buying in JD, and UPS calendar put trades.

Around the Block: Bears mini camp. Retail sales numbers. Standard options expiration next week.


Option Block 522: Options Civil War

Trading Block: Options Civil War: Which side are you on? Earnings today before the bell: Tyson Foods, Liberty Media Group, Sothebys. Traders on edge as Staples-Office Depot deal decision looms. Are markets more sensitive to the Fed these days? Stocks...
Posted May 10th, 2016

Trading Block: Options Civil War: Which side are you on? Earnings today before the bell: Tyson Foods, Liberty Media Group, Sothebys. Traders on edge as Staples-Office Depot deal decision looms. Are markets more sensitive to the Fed these days? Stocks to watch: LendingClub, Krispy Kreme, Freeport-McMoRan, Valeant.

Odd Block: Call roll in American Capital LTD (ACAS), buying time call stupid in Nokia Corp (NOK), and put spread buyers in JPMorgan Alerian MLP Index (AMJ).

Strategy Block: Tosaw discusses long-dated covered call writing

Mail Block: Which Team are you on?

  • 29% - Team Cap
  • 71% - Team Iron Man

Listener questions:

  • Question from 777 - Have you heard any rumors that CME or CBOE will be acquired by a bank or insurance company?
  • Question from SkyTrader - If I see a trend, what spread works best for capturing that spread - straight vertical or calendar?

Around the Block: This week the big retailers take the earnings stage, and names include:

  • Tuesday - Electronic Arts, Walt Disney Company, Dean Foods, Credit Suisse, Allergan
  • Wednesday - Macy's, Wendy's
  • Thursday - Kohls (before bell), Nordstrom (after bell), Shake Shack
  • Friday - JC Penney, Honda

Option Block 521: TSLA and BABA Straddle Battle

Trading Block: Earnings "Straddle Battle" pitted Tesla against Alibaba. Who won? Other interest in Blizzard, XLE Odd Block: OTM call buyers in Weatherford International PLC (WFT), long-term collar trades in Market Vectors Oil Services ETF (OIH), and...
Posted May 6th, 2016

Trading Block: Earnings "Straddle Battle" pitted Tesla against Alibaba. Who won? Other interest in Blizzard, XLE

Odd Block: OTM call buyers in Weatherford International PLC (WFT), long-term collar trades in Market Vectors Oil Services ETF (OIH), and put spread trades in SPDR S&P Metals and Mining ETF (XME).

Mail Block: Listener questions and comments

  • Question from Oarmin333 - Hi. I have been learning and using MProfile for a year now, all on an intraday basis using futures, mainly ES. I would like to expand my time horizon a bit to a few days to a few weeks. I have a 25k account I am working with. I understand the mechanics of futures, but I am considering using options due to longer holding periods, specifically being long premium, due to the defined risk. I am really not interested in selling options. Some people say that buying options is a fools errand and better to sell spreads, other say they only buy premium. I am not sure which way to go. If I hold for longer periods, I have to cut size way down in futures, which is fine. However, If I get good at options, there is a lot of flexibility. I am a discretionary trader and a directional trader. I would love to get your opinion on the matter, if you do not mind. Thanks a bunch! Also I can still play intraday moves with weekly options if I see that opportunity. If I am good at picking direction, can simple long/calls (non spreads) be a viable option, no pun intended.
  • Question from Billy Boy: What's your opinion on the binary options from Nadex?
  • Question from Flyer: What are the first steps to learn about options?

Around the Block: Earnings!

  • Friday: Cigna Corporation

Option Bbock 520: Imagine an Apple Tesla Mashup

Trading Block: What is going on in the market? Options #QuestionOfTheWeek: Earnings Straddles - $AAPL(4.5%), $FB(7%) & $AMZN(8%). Which will be the most accurate? 45% Facebook - Close $108.89 (Straddle. $7.62) - Open $119.57: Difference. $10.68 /...
Posted May 3rd, 2016

Trading Block: What is going on in the market?

Options #QuestionOfTheWeek:

Earnings Straddles - $AAPL(4.5%), $FB(7%) & $AMZN(8%). Which will be the most accurate?

  • 45% Facebook - Close $108.89 (Straddle. $7.62) - Open $119.57: Difference. $10.68 / 9.8% - Missed by 40%
  • 29% Amazon - Close $602 (Straddle. $48.16), Open $666 - Difference. $64 / 10.6% - Missed by 33% - WINNER!!
  • 24% Apple - Close $104.35 (Straddle.$4.70), Open $96 - Difference. $8.35 / 8% - Missed by 77%
  • 02% Other

Earnings Straddle Battle:

  • TSLA - $241.75, Approx. 8.3%
  • BABA - $4.70, Approx. 6%

Odd Block: Call buyer in Direxion Daily S&P 500 Bear 3x Shares, call buyers in Weatherford International PLC (WFT), and put buyers in Cabela?s Inc (CAB).

Strategy Block: Uncle Mike Tosaw discusses selling a put to get into a stock

Around the Block: Earnings!

  • Tuesday - CVS Health, Pfizer, Etsy, Avis Rental Car, Hyatt Hotels, GrubHub, Spring Corporation, Starwood Hotels
  • Wednesday - Tesla, Whole Foods, Merck & Company, Priceline Group, Zynga, Anheuser-Busch InBev, Kraft Heinz, FITBIT
  • Thursday - Alibaba, Occidental Petroleum, Chesapeake Energy,
  • Friday - Cigna Corporation

On the economic calendar this week are the ISM manufacturing index, international trade data and jobless claims on Thursday. Lastly, the week ends with the all-important monthly employment report for April.


Option Block 519: OptionsXpress CEO Joins the All-Star Panel

Xpress Block: We have special guest co-host: Barry Metzger, CEO of optionsXpress. He discusses: The latest developments at OX. Interesting platform upgrades and tech overhauls What are the OX clients trading during the height of earnings season? Any...
Posted April 29th, 2016

Xpress Block: We have special guest co-host: Barry Metzger, CEO of optionsXpress. He discusses:

  • The latest developments at OX.
  • Interesting platform upgrades and tech overhauls
  • What are the OX clients trading during the height of earnings season?
  • Any interesting customer questions/feedback?

Trading Block: Options Traders Brace for Amazon Earnings. Amazon at $612.60. ATM straddle $49, approx. 8%. LinkedIn Corporation - $123. ATM straddle $16.20, approx. 13%. Earnings before the bell: CME, Coca-Cola, Ford Motor Company, Honda Motor Company, MasterCard Incorporated, MSCI Inc, Time Warner Cable, United Parcel Service, Viacom Inc. It was a rough week for Apple - $96.20 today. Stock crushed post-earnings, opened down $8.35 or 8%. Icahn bails out on Apple stock. Nasdaq mulls new exchange to ease trading in illiquid ETFs.

Odd Block: Calls trade in Methanex Corp (MEOH), calls and stock trade in Ebay Inc. (EBAY), and calls trade in KKR and Co. (KKR).

Mail Block: Listener questions and comments

  • Question from Mohammed - Hi Mark! The Options Insider website is superb resource for new and experienced options traders. I know your weekly newsletter you folks you report significant/unusual done options trading activity across stock and ETFs. After searching on your site and overall online, I have found it quite difficult to locate a website which details some of the terminology used when describing the large blocks traded (e.g. "price variation"). If you could compile a glossary or an overview of how to view/assess options order flow that would be excellent. Keep up the great work! Thanks.
  • Question from Maha - How difficult is it to become a successful options day trader?

Around the Block: A review of after-hours prices for LNKD, AMZN. Earnings parade continues with CBOE and XOM. Will the Icahn dump of AAPL have a longer-term impact. Central bank flim flammery.


Option Block 518: Earnings Preview: AAPL, AMZN, FB and More

Trading Block: Stocks drop ahead of earnings onslaught. Traders may just be forced to unwind all those VIX bets. Earnings today before the bell: Xerox, Haliburton Earnings today after the bell: The Container Store AAPL - ATM straddle: $4.90, approx....
Posted April 26th, 2016

Trading Block: Stocks drop ahead of earnings onslaught. Traders may just be forced to unwind all those VIX bets.

  • Earnings today before the bell: Xerox, Haliburton
  • Earnings today after the bell: The Container Store
  • AAPL - ATM straddle: $4.90, approx. 4.6%
  • FB - ATM straddle: $8, approx. 7.2%
  • AMZN - ATM straddle: $49.50, approx. 7.9%

Odd Block: Calls trade in Health Care SPDR (XLV), calls trade in BankRate Inc. (RATE), and calls trade in Dollar Tree Inc (DTLR)

Strategy Block: Uncle Mike Tosaw discusses dollar cost averaging.

Around the Block: Earnings!

  • Tuesday - Apple, Fiat Chrysler, 3M Company, Ally Financial, Buffalo Wild Wings, Canon, Chipolte Mexican Grill, ebay, Eli Lilly & Co, Hershey Company, JetBlue, Office Depot, Panera, Procter & Gamble, Spirit Air, Whirlpool
  • Wednesday - Facebook, Boeing, Hilton, Nasdaq, Six Flags, Speedway Motorsports,
  • Thursday - Amazon (after bell), Ford Motor Company (before bell), CME (before bell), Coca-Cola (before bell)
  • Also, the Fed breaks from its two-day policy meeting Wednesday at 2 p.m. ET and investors around the globe will be watching to see what the U.S. central bank says about the timing of its next interest rate.

Option Block 517: Mega Earnings Spectacular: GOOG, MSFT, SBUX and More

Trading Block: Earnings! Thursday - (Before the Bell): General Motors Company, Southwest Airlines, Under Armour, Verizon Communications; (After the Bell): Microsoft, Alphabet Inc., E*Trade Financial Company, Starbucks Corporation, Visa Inc. MSFT -...
Posted April 22nd, 2016

Trading Block: Earnings!

  • Thursday - (Before the Bell): General Motors Company, Southwest Airlines, Under Armour, Verizon Communications; (After the Bell): Microsoft, Alphabet Inc., E*Trade Financial Company, Starbucks Corporation, Visa Inc.
  • MSFT - $56, ATM Straddle $2.37 - approx. 4.2%
  • GOOG - $756.40, ATM Straddle $41.50 - approx. 5.5%
  • SBUX - $60.77, ATM Straddle $2.25 - approx. 3.7%

Odd Block: Call spread buyers in Marathon Petroleum Corp (MRO), call buying in Tronox Ltd (TROX), and paper buying in Kilroy Realty Corp (KRC)

Mail Block: Listener questions and comments

  • Question from Nick C.: Heard any chatter about CME or CBOE leaving Chicago?
  • Question from Bob: Is the options market the most transparent financial marketplace?
  • Question from Willy: What does the Option Block crew think of the TOS platform? Do you like it for pricing volatility and analyzing the Greeks?

Around the Block: Earnings on Friday - American Airlines, Caterpillar, General Electric Company, Honeywell International, Kimberly-Clark Corporation, McDonald?s Corporation.

This Week in the Market:

  • Monday - National Association of Home Builders' Housing Market Index
  • Tuesday - Commerce Department releases new figures
  • Wednesday - National Association of Realtors existing home sales data
  • Thursday - Weekly jobless claims from the Labor Department

Option Block 516: Dueling NFLX Butterflies

Interview Block: Today we are joined by special guest Mal Clissold President and Owner of SCC Capital Group, LLC. We discuss: How frequently and with what percentage do they delve into the individual stock world? What positions do you have that are...
Posted April 19th, 2016

Interview Block: Today we are joined by special guest Mal Clissold President and Owner of SCC Capital Group, LLC. We discuss:

  • How frequently and with what percentage do they delve into the individual stock world?
  • What positions do you have that are designed to protect and potentially profit against a major one-day move?
  • What kind of fund does he run?
  • How does he control risk for his positions?
  • What attracts him to a short vol position? What does he have on that he really likes right now?

Trading Block: Earnings today after the bell: Netflix. Earnings today before the bell: PepsiCo, Hasbro, Morgan Stanley. Options traders brace for another big move for Netflix shares.
Stocks to Watch: Pepsi, Chiasma, Hasbro, Morgan Stanley.

Odd Block: Calls trade in The Carlye Group LP (CG), giant call roll in - Western Gas Partners, LP (WES), and upside calls trade in - AK Steel Holdings Corp (AKS).

Strategy Block: Uncle Mike Tosaw discusses the importance of diversification.

Around the Block: Earnings!

  • Tuesday - Intel Corporation, Discover Financial Services, Goldman Sachs, Interactive Brokers Group, Johnson & Johnson, TD Ameritrade, Yahoo, Inc.
  • Wednesday - Coca-Cola Company, Abbott Laboratories, American Express Company, Mattel
  • Thursday - Before: General Motors Company, Southwest Airlines, Under Armour, Verizon Communications; After: Microsoft, Alphabet Inc., E*Trade Financial Company, Starbucks Corporation, Visa Inc.
  • Friday - American Airlines, Caterpillar, General Electric Company, Honeywell International, Kimberly-Clark Corporation, McDonald?s Corporation

Option Block 515: The Many Joys of Limit Display Rules

Trading Block: U.S. stocks fluctuate on earnings a crude oil retreats with gold. CITI before the bell tomorrow. Stock = $45, ATM straddle - $1.40 / approx. 3%. CME traders say chances of April interest rate hike are zero. Earnings: Thursday (all...
Posted April 15th, 2016

Trading Block: U.S. stocks fluctuate on earnings a crude oil retreats with gold. CITI before the bell tomorrow. Stock = $45, ATM straddle - $1.40 / approx. 3%. CME traders say chances of April interest rate hike are zero. Earnings: Thursday (all before bell) - Bank of America, Wells Fargo, Delta Air Lines, PNC Financial Services, BlackRock.

Odd Block: Calls trade in Kate Spade Inc (KATE), puts trade in Seagate Technology PLC (STX), and calls trade in Freeport-McMoran (FCX)

Mail Block: Listener questions and comments

  • Question from AJ M. - I hope you guys can calm my frayed nerves over this DOL thing. What exactly is going on? Am I not going to be able to sell calls in my IRA anymore? Since the vast majority of my assets are in retirement accounts this would be a HUGE hit to my savings. Please tell me this is not the case. Is there anything I as a retail stock and options trader can do to help prevent this? What if I open an international trading account? Would that do the trick? Help - I need you guys to talk me off the ledge.
  • Question from Jeremy M. - Hey Folks: I thought this might be a great question for The Option Block: Would you mind talking about the "Limit Order Display Rule: Exchange Act Rule 11Ac1-4." How it can help the retail investor? How the rule is applied to SPX and VIX options? When reading the actual rule, it can get a bit confusing because its talking about "odd lots" and "block size order," etc. Would be good to get your take on it. Perhaps the Rock Lobster may have an interesting perspective as a former market maker. Great program! Cheers, JM

Around the Block: This Week in the Market

  • Apr 15: Consumer Sentiment
  • Earnings on Friday - Citigroup

Option Block 514: The Many Flavors of Skew

Trading Block: The fear gauge just hit an all-time high. Turbulence for Delta Air Lines, Inc.: Two earnings trades for DAL stock. Under Armor selling off over 5% today, and over 50% since last week. Earnings today after the bell: Alcoa, Bank of the...
Posted April 12th, 2016

Trading Block: The fear gauge just hit an all-time high. Turbulence for Delta Air Lines, Inc.: Two earnings trades for DAL stock. Under Armor selling off over 5% today, and over 50% since last week. Earnings today after the bell: Alcoa, Bank of the Ozarks

Odd Block: Calls trade in SPDR GLD Gold Trust (GLD), puts trade Avon Products, Inc (AVP), and calls trade in Steel Dynamic, Inc (STLD)

Strategy Block: Uncle Mike Tosaw selling a call spread against a stock you own vs. selling a covered call.

Mail Block: Listener questions and comments

  • Twitter Conversation/Question from @4tee7 - Time to heavy my position $UA #masters #jordanspeith #chef #curry #goldenstate #dubnation.
    [email protected] Apr 8 @4tee7 UA was overbought already before the split. I see the stock @ 38$ next week
    @4tee7 3h3 hours ago @jfhotte, good call (sold the class c shares before I felt too much pain), get back into class A once the dust settles $ua
    @4tee7 I do not understand man... My puts premium at 1.5 day before split.. Today stock is down 4.5% and my option is worth 1.4 ...thoughts?
    @jfhotte I got nothing, you should collecting on that one??? Is there a trade cost (whose the broker)?
    @4tee7 what I got after split UA1160715P70 (UA1) it is up only 15% today while the stock down 5%, does not make sense.. @sellputs @Options
    @jfhotte @sellputs @Options let me know when you find out, I am curious
  • Question from Fayecuzername - Hey all, quick question. I am a hopium addict at times. Andrew discussed puts and stock, rolling down the put as the stock drops. Is the play to buy stock with the proceeds and dollar cost average or use the proceeds on another trade? This assumes you continue to like the stock. Thanks, you all are my trading methadone.

Around the Block: There is still time to make IRA contributions


Option Block 513: Why, Why, Why

Trading Block: Today we are joined by Nick Howard, Founder & CEO of Bantix Technologies, LLC, and creator of QuikStrike. Stocks tumble amid choppy start to April; Dow drops more than 150. OCC gratified by changes to DOL fiduciary rule that benefit...
Posted April 8th, 2016

Trading Block: Today we are joined by Nick Howard, Founder & CEO of Bantix Technologies, LLC, and creator of QuikStrike. Stocks tumble amid choppy start to April; Dow drops more than 150. OCC gratified by changes to DOL fiduciary rule that benefit users of listed options. Ally Financial jumps into brokerage business. Earnings: Thursday - Rite Aid, CarMax, ConAgra Foods (all before bell).

Odd Block: Calls trade in Crown Castle Inter. (CCI), calls and puts trade in iPath S&P 500 VIX mid term futures (VXZ), and calls trade in PowerShares DB US Dollar index ETF (UUP).

Mail Block: Listener questions and comments.

  • March Madness Poll: TradeKing was the final winner. Also, big congratulation to all our contest winners.
  • Question from MJHill - Earnings season is approaching. What are your views on using an ATM long straddle as an earnings play? I plan on buying the ATM straddle about a week before earnings and closing the position the day before earnings are released. I am hoping to make some money on the increased volatility that comes immediately before earnings, but would like to hear your opinions.

Around the Block: This Week in the Market: The first full week of April and of the new quarter gets under way as the Federal Reserve releases the minutes from its last session. A new round of quarterly earnings is not far off.


Option Block 512: Do Not Smoke the Hopium

Trading Block: March Madness Poll - Winner: TradeKing, which (beat Interactive Brokers in the finals. Drawing winners will be announced on Thursday's Option Block. An update on March options activity from ISE. OCC cleared contract volume up 4% in...
Posted April 5th, 2016

Trading Block: March Madness Poll - Winner: TradeKing, which (beat Interactive Brokers in the finals. Drawing winners will be announced on Thursday's Option Block. An update on March options activity from ISE. OCC cleared contract volume up 4% in March. CME Group notches record ADV in Q1, while FX volumes fall. Stocks to Watch: Apple, Tesla, Alaska Air, Intel, Brocade.

Odd Block: Calls trade in Nike Inc. (NKE), calls trade in KKR & Co. (KKR), and calls trade in Reynolds American, Inc (RAI).

Strategy Block: Uncle Mike Tosaw discusses the importance of knowing your exit in a trade before your entrance.

Mail Block: Listener questions and comments

  • Question from Bruno - Unusual activity in CPD puts. The customer bought and the stock rallied the next day. Does UA actually predict anything?

Around the Block: Earnings!

  • Tuesday - Walgreen's, Darden Restaurants, International Speedway Corporation
  • Wednesday - Bed, Bath & Beyond, Constellation Brands, Monsanto Company
  • Thursday - Rite Aid, CarMax, Con Agra Foods

This Week in the Market:

  • The first full week of April and of the new quarter gets under way as the Federal Reserve releases the minutes from its last session. A new round of quarterly earnings is not far off.
  • Apr 4: Factory Orders
  • Apr 5: International Trade, JOLTS
  • Apr 6: FOMC Minutes
  • Apr 7: Jobless Claims

Option Block 511: Revenge of the Time Combo

Trading Block: March Madness Poll - Vote today for TradeKing or E*Trade to find out who will go to the finals against Interactive Brokers, who beat OptionsHouse to make the final round. Stocks higher as the end to a rocky quarter nears. Yellen killed...
Posted April 1st, 2016

Trading Block: March Madness Poll - Vote today for TradeKing or E*Trade to find out who will go to the finals against Interactive Brokers, who beat OptionsHouse to make the final round. Stocks higher as the end to a rocky quarter nears. Yellen killed the strong dollar rally.

Stocks to watch:

  • Tesla ? new electric Model 3 unveiled today. A modest rally for Tesla ? up only 5% intraday.
  • Lululemon ? earnings announced yesterday and stock looks good, trading up about 10% post-earnings.

Odd Block: Calls and puts trade in Dynavax Technologies Corp. (DVAX), calls trade in SPDR Homebuilders ETF (XHB), and calls and puts trade in Pure Storage, Inc. (PSTG).

Mail Block: Listener questions and comments

  • Question from Gabe Rich: Mark, this is weird; huge buys for $INTC Apr 33 calls and the IV goes down?! I thought the market makers will push the price up when more buyers are around demand/supply. Thanks, I thought you might explain this since you are a former $INTC market maker.
  • Question from 777 - with commodity based ETF options - anyway to trade roll risk?
  • Question from Flyguy - If I sold a put $1 on Jan 16 with a current trading price of $.50 and stock goes to $5 -what happens and what is my risk?

Around the Block: What?s coming up in the week ahead?

  • Thursday - The USDA Prospective Plantings report will provide the official estimate on what farmers across the United States are planting this year.
  • Friday, April 1 - The biggest economic release of the month, the Employment Situation Report, will hit newswires before the market opens on Friday.
  • Earnings: Blackberry

Option Block 510: Trading Size Stupids in VIX

Trading Block: A bull market in the S&P 500 goes AWOL as history rewards patience. Could Jan. 1, 2018 become the next "Perfect Banking Storm"? Appeals court upholds determination that CBOE patents are invalid. Stocks to Watch: Pandora, Avon,...
Posted March 29th, 2016

Trading Block: A bull market in the S&P 500 goes AWOL as history rewards patience. Could Jan. 1, 2018 become the next "Perfect Banking Storm"? Appeals court upholds determination that CBOE patents are invalid. Stocks to Watch: Pandora, Avon, GameStop, Cal-Maine

Odd Block: Selling paper in The CBOE Volatility Index (VIX), Aug call buyer in iShares FTSE/Xinhua China 20 ETF (FXI), and strange seller in Pinnacle Foods Inc. (PF)

Strategy Block: Uncle Mike Tosaw discusses diagonal call spreads.

Mail Block: Listener questions and comments

  • Question from Mike G. - Hello, Mike here. My father got me into selling covered calls by keeping me interested in his trading as a child. Recently, I started learning about other strategies and started listening to programs on the options insider radio network. Thanks. I recently convinced my father to use collars as opposed to simple covered calls, and I am starting to use long deep in the money leaps instead of stock to cover my calls. I have two questions. Given that I can use calls to cover my calls, is there any benefit to owning the underlying? Thanks a lot.
  • Comment from Fayecuzername - Listened to episode 509 today. The listener question about Viceroys favorite Andrew butterfly answer is from episode 389. In the mail block I asked about a fly on expiration date and Andrew set me straight.

Around the Block: Earnings!

  • Tuesday - Dave & Busters
  • Wednesday - Lululemon Athletica, Micron Technology, Carnival Corporation, Paychex.
  • Friday - BlackBerry.

This Week in the Market:

  • Tuesday - Janet Yellen speech to the Economic Club of New York
  • Thursday - The USDA Prospective Plantings report will provide the official estimate on what farmers across the United States are planting this year.
  • Friday, April 1 - The biggest economic release of the month, the Employment Situation Report, will hit newswires before the market opens on Friday.

Best of Option Block: Theoretical Value & Implied Volatility

It may be a trading holiday, but you still need your Option Block fix, right? We dug through the archives to bring you some of the best of Option Block. This episode was posted in November, 2015.
Posted March 25th, 2016

It may be a trading holiday, but you still need your Option Block fix, right? We dug through the archives to bring you some of the best of Option Block. This episode was posted in November, 2015.


Option Block 509: Phenomenally Ingenious Tree Trade

Trading Block: The most up-to-date result of our March Madness Poll. Stocks to Watch: Valeant, Tesla, Starwood, Marriott, Markit, IHS. Stocks dip, dollar advances in wake of Fed comments. Odd Block: Bullish call action in iShares Dow Jones US...
Posted March 23rd, 2016

Trading Block: The most up-to-date result of our March Madness Poll. Stocks to Watch: Valeant, Tesla, Starwood, Marriott, Markit, IHS. Stocks dip, dollar advances in wake of Fed comments.

Odd Block: Bullish call action in iShares Dow Jones US Homebuilder ETF (ITB), upside call buyer in Kraft Heinz Co. (KHC), and christmas put tree in US Steel Corp (X).

Strategy Block: Uncle Mike Tosaw discusses out-of-the-money call buying.

Mail Block: Listener questions and comments

  • Question from Groose - Regarding Eurodollar futures options, are there different quirks between the months?
  • Question from Trunghi Nguyen - Hey, hello Options Insider. Big fan of al of your work - listen to your shows all the time. Many Option Blocks ago, (around the Viceroys last show before he left, may have been his last show) he mentioned a past show where the Rock Lobster discussed how to trade a butterfly at expiration, and Alex thought it was pure gold. I cannot recall what type of butterfly trade it was, i.e. standard, iron, or broken wing, but Alex seemed impressed by Andrews explanation. Unfortunately, I have not been able to locate which episode this was aired on. Any chance you can find out and let me know? Love your work - when it comes to Options Insider, I go long.
  • Comment from Joseph A. - Good morning Options Insider. Wanted to stop by and say thank you for providing me and many others with a free source of invaluable knowledge. I hope you do not mind, but I shared your page with a couple of trading groups that I am a member of. Thank again - happy trading!

Around the Block: Earnings!

  • Tuesday - Nike, Krispy Kreme Donuts
  • Wednesday - General Mills
  • Thursday - GameStop (after bell), Signet Jewelers (before bell), Cosi (after bell)

Option Block 508: The Lobster Flies Solo

Trading Block: U.S. crude options volatility sinks as prices bounce off Feb lows. CBOE to list options on FTSE 100 and China 50. Options traders prepare for "worst of all worlds".Fed scales back rate-rise forecasts as global risks remain. Earnings...
Posted March 18th, 2016

Trading Block: U.S. crude options volatility sinks as prices bounce off Feb lows. CBOE to list options on FTSE 100 and China 50. Options traders prepare for "worst of all worlds".Fed scales back rate-rise forecasts as global risks remain. Earnings after the bell: Adobe Systems Inc., Aeropostale

Odd Block: Calls trade in iShares MSCI Emerging Markets ETF (EEM), calls trade in Genesis Energy LP (GEL), and calls trade in Technology SPDR (XLK)

Mail Block: Listener questions and comments

Question from Alex - Mark and the Options Block Dream Team, I have to keep it going in the same spirit since this is extremely educational and I am still not converted to shorter term selling. I was unfair to ask such a broad question so I will try to be as specific as possible. Let's revisit why I shorted 1y 25d (cash-secured) Put Option Vol was at its 2 year high (~57%). Vega($70/bp) further out is much higher than shorter term. Example: 14bp drop in 1 year Vol would result in an easy $1000(6% yield) profit in my strategy where 15% yield is if the option expires worthless. A similar kind of theta($5.55/day) premium of $1000 would require around 180 calendar days. Clearly theta premium collection is not interesting in my strategy (yet). Gamma is virtually 0 and hence the underlying needs to both trend down and Gap sharply (30%+) before I need to start worrying.
Most likely the next time the underlying will GAP down significantly is during earnings. Hence I can either avoid the period around earnings (close prior to earnings and reopen after) or gamble and keep my position through and essentially taking a risk of becoming a 'long term' investor with the underlying being in high 70s and then do a Wheel of Fortune kind of strategy on it.
Speculation aspect of my simple strategy - 1) Volatility will mean revert down 2) I strongly believe that this is a Side-Ways year for the entire US Market including the technology sector. Hence I believe I can capitalize on this speculation if I extend further out in my short selling.
Regarding Baby Sitting question. I can do some low frequency rolling on the Delta. I have done once already. I agree there is nothing much else to do here.
Lets forget about Shorter Term Selling and Theta Premium for a second and its nice exponential properties near expiry.
The follow up question is which is hopefully more particular: are there any practical ways of locking in on Vega Premium for a longer term Short Puts? Vol dropped 7bp since I entered but there is room for much more. I understand that drawing a line in the sand (say I close when vol drops to 40s or 30s) is a very good and practical way. But are there any other ways to lock in some Vega premium without fully closing on the strategy?
My background. I am a hardcore Quant guy who understands the theoretical part of Options valuation and Greeks inside out including some very exotic derivatives structures(calendar year asian options, swaptions, generation assets etc). That said, ironically, most folks like me are not very good with the practical aspects of Options trading so I hope I am not dumbing down the show with my impractical questions smile emoticon. Cheers, Alex.

Around the Block: Earnings on Friday in Tiffany & Co.


Option Block 507: Waiting for a Bonehead Political Soundbite

Trading Block: ICE would keep London Stock Exchange if it bought LSE Group. Fed to sit tight on rates at March meet, hint at hikes to come. Earnings today before the bell: 3D Systems Corp. Odd Block: Put buying in Banco Bradesco SA (BBD), 1-by-2 put...
Posted March 15th, 2016

Trading Block: ICE would keep London Stock Exchange if it bought LSE Group. Fed to sit tight on rates at March meet, hint at hikes to come. Earnings today before the bell:
3D Systems Corp.

Odd Block: Put buying in Banco Bradesco SA (BBD), 1-by-2 put spread in CarMax Inc. (KMX), and calls trade in Delta Air Lines Inc (DAL).

Strategy Block: Uncle Mike Tosaw discusses short put spreads.

Listener Mail: Listener questions and comments

  • Question from Bob - I have heard pros say that when too many retail jump into a trade, then do the opposite - Does that apply to options as well?
  • Question from 777 - What are the industry sectors least positively correlated to the major indexes? Are there any quirks to trading those using options?

Around the Block: Earnings!

  • High expectations for Adobe earnings, not so much for Oracle.
  • Tuesday - Oracle Corporation, Constellium, DSW, Gerdau, HD Supply
  • Wednesday - FedEx Corporation, Williams-Sonoma
  • Thursday - Adobe Systems Inc., Aeropostale
  • Friday - Tiffany & Co.

Option Block 506: Uncovered Covered Calls and IRA Options Debate

Trading Block: Big news today from an options exchange perspective: Nasdaq announced it has agreed to acquire International Securities Exchange (ISE), an operator of three electronic options exchanges, from Deutsche Borse Group. Investors greeted the...
Posted March 11th, 2016

Trading Block: Big news today from an options exchange perspective: Nasdaq announced it has agreed to acquire International Securities Exchange (ISE), an operator of three electronic options exchanges, from Deutsche Borse Group. Investors greeted the Nasdaq deal to buy International Securities Exchange, the US options business of Deutsche Borse, with some skepticism on Thursday, sending Nasdaq shares down as much as 3.5 per cent. Earnings: Dollar General

Odd Block: Calls trade in Club Corp. Holdings Inc. (MYCC), puts trade in Peabody Energy Corp (BTU), and calls and puts trade Hilton Worldwide Holdings Inc (HLT)

Mail Block: Listener questions and comments

  • Twitter: The Options Insider- With a potential ban on trading options in IRAs looming - Tell us how you trade options in your IRA right now?
  • Question from Alex - In OptionBlock503, we agreed that while it is very unusual, the 25D 1Y Cash-secured Put was entered for all the right reasons. The follow up question is then. What are the various practical ways to Risk Manage/Baby Sit a Long Term CashSecured Put under different scenarios of the underlying (underlying is trending up, down or sideways) and for different regimes of volatility? Cheers.

Around the Block: This Week in the Market

  • Mar 10: Jobless Claims, Treasury Budget
  • Mar 11: Import and Export Prices

Option Block 505: Just Buy Upside Calls

Trading Block: Goldman Sachs sees best time in two decades to buy S&P 500 calls. Traders are betting the Federal Reserve will next raise U.S. short-term interest rates about six weeks earlier than previously thought, after the government reported...
Posted March 8th, 2016

Trading Block: Goldman Sachs sees best time in two decades to buy S&P 500 calls. Traders are betting the Federal Reserve will next raise U.S. short-term interest rates about six weeks earlier than previously thought, after the government reported U.S. employers added many more jobs than expected in February. Earnings today after the bell: Shake Shack.

Odd Block: Calls trade in Alcoa Inc. (AA), puts trade in Linn Energy LLC (LINE), and calls trade in VALE SA (VALE).

Strategy Block: Uncle Mike Tosaw discusses getting back into a trade you got out of, that has continued to go your way since.

Mail Block: Listener questions and comments

  • Question from FlyGuy - Do I day trade options anymore?

Around the Block: Earnings!

  • Tuesday - Barnes & Noble, Dick?s Sporting Goods
  • Wednesday - Vera Bradley

Thursday - Dollar General

  • This Week in the Market:
  • Mar 9: EIA Petroleum Report
  • Mar 10: Jobless Claims, Treasury Budget
  • Mar 11: Import and Export Prices

Option Block 504: What Makes a Butterfly Take Flight?

Trading Block: Continued relief rally. VIX now has a 16-handle. Huge contango in the VIX. Who blew the all-clear signal? Cage match in junk stocks. CBOE reported that total trading volume in February was 92.9 million contracts. OCC announces cleared...
Posted March 4th, 2016

Trading Block: Continued relief rally. VIX now has a 16-handle. Huge contango in the VIX. Who blew the all-clear signal? Cage match in junk stocks. CBOE reported that total trading volume in February was 92.9 million contracts. OCC announces cleared contract volume increased in February. OCC announced that total cleared contract volume in February was 338,300,969 contracts. . Why CME would want to buy the London Stock Exchange? Why buy when you can make your own? What is Europe going to do?

Odd Block: Puts trade in Chesapeake Energy Inc. (CHK), puts trade in iShares Barclays 20+ year Treasuries (TLT), and calls and puts trade in Boardwalk Pipeline Partners (BWP).

Strategy Block: In his first ever strategy block, Andrew discusses what makes a butterfly take off.

Mail Block: Listener comments and questions

  • Question from Adam - Thank you for your shows. I am wondering if you know where can I get p/c ratio and call sizzle index and out sizzle index history? I use TOS but this info is not available for the past. Thanks
  • Question from FutureMD - Is there a directional options strategy that you would suggest for someone who wants to play the 2016 election?

Around the Block: Earnings! Friday - Staples, Big Lots

This Week in the Market

  • Mar 3: Jobless Claims, Factory Orders
  • Mar 4: Unemployment Report

Option Block 503: Tried and True Beats Bold and New

Trading Block: Traders are now taking the possibility of a Trump presidency seriously. What was once thought to be a flight of fancy is moving ever closer to becoming reality, with one of the real estate moguls rivals, Texas Senator Ted Cruz,...
Posted March 1st, 2016

Trading Block: Traders are now taking the possibility of a Trump presidency seriously. What was once thought to be a flight of fancy is moving ever closer to becoming reality, with one of the real estate moguls rivals, Texas Senator Ted Cruz, declaring that Trump may be "unstoppable" if he dominates the upcoming Super Tuesday contests. Gold allure burnished by Fed outlook as treasuries lag: analysis - U.S. Treasury 10-year futures may continue to underperform gold over the medium-term in a global fixed-income environment punctuated by negative rates as the relative opportunity cost of holding the yellow metal decreases. Stocks mixed as oil prices rise above $33 a barrel - Stocks were mixed in lackluster trading Monday as oil prices rose and global stocks fell after a meeting of G20 finance officials ended without pledges for joint action to stimulate sagging global economic growth.

Earnings today:

  • Crocs, Inc. (before)
  • Hertz Global Holdings (before)
  • AMC Entertainment Holdings
  • Icahn Enterprises
  • Lumber Liquidators Holdings
  • Tribune Media Company

Odd Block: Calls trade in Charles Schwab (SCHW), calls trade in Enbridge Inc (ENB), and calls trade in Signet Jewelers Ltd (SIG)

Mail Block: Listener questions and comments

  • Question from Alex - Mark, Thanks again for covering my question. I agree that I am not capitalizing on the Theta curve as much (although $5.3/per day is also decent). However my intention was more to capitalize on the Vega Surface where Vega tends to be much higher at longer maturities and it was especially bloated during the earnings date when volatility spiked to the highest ever level. Given that the Volatility levels are at its highest then Vega itself is expected to be at its highest ever. That said I am not really set-and-forget strategy and collect on theta premium. I just have to wait until the volatility normalizes for LNKD and collect on a decent Vega premium. In a sense I am shorting both Volatility and Vega. Hence further out months give richer Vega to short. And if i were to write shorter maturity puts, then Vega would have lost its juice in a month or two. As a side note, I entered into a CashSecuredPut, I do not trade on margin yet. Yield is approximately 15%. It would be a separate exercise to compute the Vega surface for LNKD. Maybe this question is an overkill for the show but at least this were some of my reasons why I shorted a 1-year put. Cheers, Alex
  • Question from JM - Hey Folks. I thought this might be a great question for The Option Block: Would you mind talking about the "Limit Order Display Rule: Exchange Act Rule 11Ac1-4." How it can help the retail investor? How the rule is applied to SPX and VIX options? When reading the actual rule, it can get a bit confusing because its talking about ?odd lots? and "block size order," etc. Would be good to get your take on it. Perhaps the Rock Lobster may have an interesting perspective as a former market maker. Great program! Cheers, JM.
  • Question from 777 -Do I trade Eurodollar futures options? what drives massive OI?
  • Question from TradersOM - Can a trader make a decent living buying calls and puts - or do you have to get crazy with the complex stuff like iron condors?

Around the Block: Earnings!

  • Tuesday - JD.com Ross Stores
  • Wednesday - Costco Wholesale Corporation, American Eagle Outfitters, Goldman Sachs, Tribune Publishing Company
  • Thursday - Kroger, Alamo, Barnes & Noble, Burlington Stores
  • Friday - Staples, Big Lots

Option Block 502: Is Put/Call Worthless

Trading Block: Gold goes for a ride. SeaWorld earnings today after the bell and taking it on the chin. Off approx. 9%. Odd Block: Calls and puts go up in Restoration Hardware Inc. (RH), call spreads go up in Marathon Petroleum Corp. (MPC), and puts...
Posted February 26th, 2016

Trading Block: Gold goes for a ride. SeaWorld earnings today after the bell and taking it on the chin. Off approx. 9%.

Odd Block: Calls and puts go up in Restoration Hardware Inc. (RH), call spreads go up in Marathon Petroleum Corp. (MPC), and puts go up in Cypress Semiconductors (CY).

Mail Block: Listener questions and comments

  • Question from Matt M1000 - Hello Mr. Longo and All Star Cast. I have been enjoying The Option Block and Volatility Views shows for years. You guys are the best! Keep up the great work! I would like you folks to discuss the "put-call ratio"...its use and merits as a tool. I have always discounted this metrics value, since both put and call options could be either bearish or bullish depending on how they are being used (i.e. purchased or sold). So what logic I have leads me to believe a put-call ratio would be pointless. Set me straight on this please. -Beanbag.
  • Question from SkyTrader - If I see a trend, what spread works best for capturing that spread - straight vertical or calendar?

Around the Block: Earnings!

  • Friday - JC Penney Company, Hilton Worldwide

This Week in the Market

  • Feb 26: GDP, Consumer Sentiment

Option Block 501: More Drama in FIT, VIX and GLD

Trading Block: Options market sees 50% chance of massive S&P plunge. Stocks may have rebounded from their recent lows, but the option market still implies a big chance that stocks plummet anew before the year is out. Earnings today after the bell:...
Posted February 23rd, 2016

Trading Block: Options market sees 50% chance of massive S&P plunge. Stocks may have rebounded from their recent lows, but the option market still implies a big chance that stocks plummet anew before the year is out. Earnings today after the bell: Fitbit, Inc., ATM Straddle: $2.90 - 18.3%, calls 2/1 over puts; stock nearly hit $52 last summer: Now a pale shadow of what it used to be. Earnings today before the bell: Dean Foods.

Odd Block: Puts trade in Zoetis Inc. (ZTS), puts trade in Rio Tinto PLC (RIO), and puts trade in Prospect Captial Corp (PSEC).

Strategy Block: Tosaw dicusses ways to construct a wheel trade.

Listener Questions: Listener questions and comments

  • Question from Alex - Thanks Mark for the funny intro of me and featuring my question. I felt honored to get my simple question dissected so well. I loved it! You started the discussion with "there are not that many scenarios to short long term puts as a way to enter into equity unless there is some extreme volatility distortion where the 1 year put is extremely bid from a volatility perspective". My follow up question is then: Does the 1 year LNKD Implied Volatility not qualify as a such "extreme volatility scenario distortion". Check attached screenshot from OptionXpress below. The highlighted region is when I shorted the 25 Delta Put and ATM Implied Vol is at its highest ever. Definitely I would suggest a boot camp on commission fees and slippage costs and why even with those it is still better to do shorter term vs longer term dark side trades. Cheers, Alex
  • Putting it concisely: Vega, Theta, low commissions and slippage costs are working for me in this one.

Around the Block: Earnings!

  • Tuesday - Home Depot, Avis Budget Group, Caesars Entertainment, Coca Cola, Dreamworks, Macys, Office Depot
  • Wednesday - Target, Salesforce.com
  • Thursday - Best Buy, Sears, Anheuser- Busch, Gap, Gogo Inc., Herbalife, Kohls, Marriott Vacations Worldwide, SeaWorld Entertainment, Starwood Property Trust, Weight Watchers
  • Friday - JC Penney Company, Hilton Worldwide

It is fairly a heavy week as far as economic reports go including GDP and Consumer Sentiment. The market looks to keep the bullish rally going.

  • Feb 23: Consumer Confidence, Existing Home Sales
  • Feb 24: New Home Sales
  • Feb 25: Durable Goods, Jobless Claims
  • Feb 26: GDP, Consumer Sentiment

The Option Block 500th Episode Spectacular

Trading Block: Welcome to our 500th episode. Today's special panel includes: Mark Sebastian, Mike Tosaw, Andrew Giovanazzi, and our must beloved former panelist Alex "The Viceroy" Jacobson. They discuss: How many exchanges are too many...
Posted February 19th, 2016

Trading Block: Welcome to our 500th episode. Today's special panel includes: Mark Sebastian, Mike Tosaw, Andrew Giovanazzi, and our must beloved former panelist Alex "The Viceroy" Jacobson. They discuss:

  • How many exchanges are too many exchanges?
  • Options Insider question of the week
  • The SEC
  • Citadel
  • Transaction fees
  • Talking free of compliance issues
  • And so much more...

Odd Block: Rolling calls in Coca-Cola Company (KO), calendar spreads trade in Time Warner Cable (TWX), and put sellingHess (HES)

Mail Block: Listener questions and comments

  • Question from TennisGr8: I've been hearing a lot lately about gamma scalping. How does it work, and who should use it? Is this second-order greek becoming the new options darling?

Around the Block: Are the bulls back in force? Always be prepared for a downturn.


Option Block 499: Crazy Call Skew in Gold

Trading Block: TSLA: Options traders are betting on a 16% move in Tesla shares in either direction through the end of the week. Four of the five most traded Tesla options on Wednesday were put options, but it was not clear whether investors were...
Posted February 12th, 2016

Trading Block: TSLA: Options traders are betting on a 16% move in Tesla shares in either direction through the end of the week. Four of the five most traded Tesla options on Wednesday were put options, but it was not clear whether investors were buying or selling them. It has been a rough year for Elon Musk - off $3.3B between TSLA and SCTY. Earnings today: Before the bell: Nokia, PepsiCo, After the bell: Activision Blizzard, Groupon, Pandora Media Group.

Odd Block: Calls trade in SPDR Gold Trust (GLD), calls trade in Yamana Gold Inc., and calls trade in IAMGOLD Corp (IAG)

Mail Block: Listener questions and comments

  • No love for daily options - Twitter poll has 40% of respondents saying heck no to dailies!!
  • Comment from KDDiddy - Position Delta is a stupid term you must learn to get an Options license in Canada. Sure, we rule the hockey world, eh? But we are the Jamaican bobsled team of the Options industry. On behalf of all Canadians, I apologize for the term and, for the Montreal Exchange. Perhaps you hosers could suggest some reading on the subject of Delta. After Andrew pulled my jersey over my head and lobster clawed me with "Beta weighted to SPY" and "Extra curvature," I thought I better grab some books 'n start givn'er in the library."
  • Question from Michael - @Options $15 put Twitter drops off the map; yet the premium still has been declining. Can you explain?
  • Question from Alex - Insider Trading, What are your thoughts on Shorting 1Y 25 Delta Puts on LNKD midday today (LNKD is at 105 as I write this message)? Puts are quite juicy right now with quite acceptable break even points. I am very interested in hearing your feedback. Cheers, Big Options Trading Podcast fan, Alex.

Around the Block: Reminder: No show on Monday, February 15 due to the market holiday. Next show on Thursday, February 18 is our live 500th episode spectacular!


Option Block 498: Gold and Apple Lead the Charge

Trading Block: Stocks take another beating: Dow down 400. Gold tops $1,200 for first time since June on economic woes. Earnings today after the bell: Yelp - $16.17, down nearly $2 - over 10%; Before the bell: Hasbro, Loews Odd Block: Calls trade in...
Posted February 9th, 2016

Trading Block: Stocks take another beating: Dow down 400. Gold tops $1,200 for first time since June on economic woes. Earnings today after the bell: Yelp - $16.17, down nearly $2 - over 10%; Before the bell: Hasbro, Loews

Odd Block: Calls trade in Market Vectors Gold Miners ETF (GDX), calls trade in Goldcorp Inc. (GG), calls trade in iShares MSCI EAFE Index fund (EFA), and calls and puts trades in Paypal Holdings Inc. (PYPL)

Strategy Block: Tosaw discusses when he is going to get back into this market.

Around the Block: Earnings!

  • Tuesday - Walt Disney Company, Coca-Cola Company
  • Wednesday - Time Warner, Cisco Systems, Tesla
  • Thursday- Nokia, PepsiCo, Activision Blizzard, Groupon, Pandora Media Group

Option Block 497: The Very Immediate Roll

Trading Block: Today we have guest co-host Dan Cook from NADEX. LNKD after the bell. ATM straddle: $22, approx. 11.5%. Wall St. fluctuates as equities track oil prices. Is oil driving the stock market - and should traders care? As energy rout deepens,...
Posted February 5th, 2016

Trading Block: Today we have guest co-host Dan Cook from NADEX. LNKD after the bell. ATM straddle: $22, approx. 11.5%. Wall St. fluctuates as equities track oil prices. Is oil driving the stock market - and should traders care? As energy rout deepens, CME, ICE reap benefit from record volumes.

Earnings today - Before the bell: ConocoPhillips, Intercontinental Exchange.

Odd Block: Calls trade in SPDR S&P Metal and Mining ETF (XME), calls trade in Market Vectors Gold Miners ETF (GDX), and calls and puts trade in BHP Biliton Ltd (BHP).

Mail Block: Listener questions and comments

  • Question from KDDiddy - Hey guys, Getting back to the great Stupid debate....I wrote in a few weeks ago regarding the use of a put stupid to hedge a stock 2% below market. You mentioned there is a better way using position delta. I understand position delta and delta neutral but sadly, although I have tried for a couple of weeks, I am too stupid to figure this out! Is there a formula? Would you explain? Regards, Mr. Not So Smart Sent from my iPhone

Around the Block: Upcoming activity in non-farms product on NADEX. Earnings on Friday for CME Group Inc.


Option Block 496: TWTR Bulls Piling In

Trading Block: OCC announced total cleared contract volume for the month of January was up four percent from January 2015 with 371,870,087 contracts, marking the third highest January on record. CBOE announced that it plans to list S&P 500 Index...
Posted February 2nd, 2016

Trading Block: OCC announced total cleared contract volume for the month of January was up four percent from January 2015 with 371,870,087 contracts, marking the third highest January on record. CBOE announced that it plans to list S&P 500 Index (SPX) Wednesday - expiring Weeklys options beginning February 23, 2016. ISE Mercury to launch on February 16, 2016.
Earnings today after the bell: Options on Google parent Alphabet Inc were busy on Monday ahead of the its quarterly results that could help it unseat Apple Inc as the most valuable company in the world.

Odd Block: Calls trade in The Kroger Co. (KR), calls and puts trade in Twitter Inc . (TWTR), and calls and puts trade in PVH Corp (PVH)

Strategy Block: Tosaw discusses the knockout collar.

Mail Block: Listener questions and comments

  • Question from JDon - Congrats on your milestone. Howd you get such a cool handle?

Around the Block: Earnings!

  • Tuesday - Chipolte Mexican Grill, Exxon Mobil Corporation, Merck & Company, Sirius, UPS, Yahoo
  • Wednesday - CBOE Holdings, Exelon Corporation, General Motors Company, GoPro Inc., Pfizer
  • Thursday - ConocoPhillips (before), Intercontinental Exchange (before), LinkedIn (after)
  • Friday - CME Group Inc.

Option Block 495: The Pablum of QE

Trading Block: Earnings! Ford Alibaba Amazon - rocking and rolling! Odd Block: Calls trade in ICICI Bank Ltd (IBN), calls trade in Abbott Laboratories (ABT), and call buyers in JA Solar Holding Co. (JASO) Mail Block: Listener questions and comments ...
Posted January 29th, 2016

Trading Block: Earnings!

  • Ford
  • Alibaba
  • Amazon - rocking and rolling!

Odd Block: Calls trade in ICICI Bank Ltd (IBN), calls trade in Abbott Laboratories (ABT), and call buyers in JA Solar Holding Co. (JASO)

Mail Block: Listener questions and comments

  • Question from BillyMo - Hey, any new updates with after hours options trading on earnings stocks?
  • Question from NVid - The junk bond market is melting down and interest rates are hovering around zero. Is the best place to find income these days via options writing rather than investing in fixed income or related products?

Around the Block: More earnings! How did AMZN do? What about EA? Will OPEC and Russia trust each other?


Option Block 494: Bulls Pile into Crude Oil ETF

Trading Block: Earnings today before the bell Hess Corp. ConocoPhillips fell at least 6.1 percent. Banks retraced their best rally in more than a month Friday, with Bank of America Corp. down 3.1 percent. McDonalds Corp. gained after the fast-food...
Posted January 26th, 2016

Trading Block: Earnings today before the bell

  • Hess Corp.
  • ConocoPhillips fell at least 6.1 percent.
  • Banks retraced their best rally in more than a month Friday, with Bank of America Corp. down 3.1 percent.
  • McDonalds Corp. gained after the fast-food giant earnings beat analysts forecasts as all-day breakfast helped fuel U.S. sales.

The Fed begins a two-day meeting tomorrow. The probability of a rate increase this week has stayed low after the December liftoff, and chances of a March boost have fallen to one-in-four from even odds at the start of the year.

Odd Block: Calls trade in Consumer Discretionary SPDR (XLY), and calls and puts trade in Patterson-UTI Energy, Inc. (PTEN)

Mail Block: Listener questions and comments

  • Question from Sean - What is the characteristic for trading options when the price nears even strike levels?

Around the Block: Earnings!

  • Tuesday - Apple Inc., AT&T, Procter & Gamble
  • Wednesday - Facebook
  • Thursday - Amazon, Electronic Arts, Ford Motor Company, Microsoft, Alibaba Group Holdings, Xerox Corporation
  • Friday - Google

Option Block 493: Searching for the Dark Source of Volatility

Trading Block: Stocks rebound as Dow up more than 200 points and oil jumps 5%. Wall Street pay takes a hit, braces for deeper cuts. Yellen to keep Fed rate options open amid turbulent markets. Earnings today (Thursday): Before the bell: Southwest...
Posted January 22nd, 2016

Trading Block: Stocks rebound as Dow up more than 200 points and oil jumps 5%. Wall Street pay takes a hit, braces for deeper cuts. Yellen to keep Fed rate options open amid turbulent markets. Earnings today (Thursday):

  • Before the bell: Southwest Airlines, Verizon Communications
  • After the bell: American Express Company, E-Trade Financial Corporation

Odd Block: Calls trade in NewCastle Investment Corp. (NCT), puts trade in Anadarko Petroleum Corp (APC), and calls trade in United Parcel Service, Inc (UPS)

Mail Block: Listener questions and comments

  • Question from AV56 - When is a good time to start trading options? Is there any certain time of the week or year that options traders are focused on?
  • Question from Bob - I have heard pros sat that when too many retail jump into a trade then do the opposite. Does that apple to options as well?
  • Question from Nina - Is this a good time to buy calls on indexes? If so, how far out should I trade?

Around the Block: Earnings! Friday - General Electric Company


Option Block 492: The Great Stupid Debate

Trading Block: U.S. stocks rally from 3-Month lows as energy, healthcare lead. Goldman plans to cut up to 10% of fixed-income traders, salespeople. Before the bell: JP Morgan Chase. What crisis? JPMorgan Chase reports $5.4 billion profit. After the...
Posted January 15th, 2016

Trading Block: U.S. stocks rally from 3-Month lows as energy, healthcare lead. Goldman plans to cut up to 10% of fixed-income traders, salespeople. Before the bell: JP Morgan Chase. What crisis? JPMorgan Chase reports $5.4 billion profit. After the bell: Intel Corporation. ATM Straddle - $1.45, ADV 72K contracts, today: 115K.

Odd Block: Puts trade in Fiat Chrysler Auto NV (FCAU), calls trade in KKR and Co. LLP (KKR), and calls trade in Blackstone Group (BX)

Mail Block: Listener questions and comments

  • Question from Kddidy - Thanks for answering my questions! I want to protect a stock position with puts at a strike 2% below market but there is not a strike there. I thought of dividing my purchase between two different strikes to get an average of 2% but I do not want all the guys to call me stupid. Mom always said I was a genius but it is hard to feel like one when buying something called a Put Stupid. What should I do instead? Regards, Mr. Smart
  • Question from Mark B. - How would u have structured the short stock hedged by long calls trade that made 10 milly on OB 477?

Around the Block: Earnings season kicks off: The Big Banks: Citigroup Inc., Blackrock, PNC Financial, US Bancorp, and Wells Fargo and Company


Option Block 491: Buy Andrew a Generator

Trading Block: Last week was the worst start to a trading year in history. An early rally lost steam later in the session. Intra day S&P high - 1935. Does the lack of IPOs signal a looming recession? Fear makes oil options increasingly...
Posted January 12th, 2016

Trading Block: Last week was the worst start to a trading year in history. An early rally lost steam later in the session. Intra day S&P high - 1935. Does the lack of IPOs signal a looming recession? Fear makes oil options increasingly expensive.

Odd Block: 1-by-2 call spread in The CBOE Volatility Index (VIX), buy to close short in Teva Pharmaceutical (TEVA), and bullish risk reversal in Powershares QQQ Trust (QQQ).

Strategy Block: Tosaw discusses the importance of "drawing a line in the sand" and having a plan.

Mail Block: Listener questions and comments

  • Question from Pepe - Who is paper?

Around the Block: This Week in the Market

  • Alcoa kicks off another round of quarterly earnings on Monday and there are several economic reports worth nothing particularly on Friday.
  • Jan 12: JOLTS
  • Jan 13: Beige Book, Treasury Budget
  • Jan 14: Jobless Claims
  • Jan 15: PPI, Retail Sales and Consumer Sentiment

Option Block 490: We Are All Doomed. Flee for your Lives

Trading Block: Hysterics are creeping back into the market in the New Year. This question seems to be popping up all over the place this week. Is this 2008 all over again? Chinas 29 minutes of chaos: stunned brokers and a race to sell. Apple Inc. said...
Posted January 8th, 2016

Trading Block: Hysterics are creeping back into the market in the New Year. This question seems to be popping up all over the place this week. Is this 2008 all over again? Chinas 29 minutes of chaos: stunned brokers and a race to sell. Apple Inc. said App Store billings topped a record $20 billion in 2015, but growth from the business appeared to slow even as the company introduced apps on new devices such as Apple TV and Apple Watch. The selloff continues - Apple broke $100 for the first time since Oct 2014 - barring the brief selloff in August. Apple crossed the $200B cash level last summer - but also about $50B in debt. Apple cash per share: $3.79

Odd Block: Calls trading in SPDR S&P Homebuilders ETF (XHB), calls trade in CONSOL Energy Inc (CNX), and puts roll in Weatherford International PLC (WFT)

Mail Block: Listener questions and comments

  • Question from Charlie C. - Do second order greeks have any relevance for retail traders?
  • Question from 777 - How do you adjust your options trading for cheap stocks below $10.

Around the Block: Earnings! Another quiet earnings week.  The fourth-quarter earnings season begins in mid-January. Thursday - Bed, Bath & Beyond (after bell), The Container Store (after bell). The market kicks off its first week of 2016 with several economic reports including Fed minutes on Wednesday and the jobs report on Friday.


Option Block 489: Biggest Winners and Losers of 2015

Trading Block: OCC 2015 cleared contract volume third highest ever at 4.2B. Options traders adding to bullish bets on Europe stocks for 2016. Stocks plunge as Dow tumbles about 420; S&P falls below 2,000. Odd Block ?Best of? 2015:...
Posted January 5th, 2016

Trading Block: OCC 2015 cleared contract volume third highest ever at 4.2B. Options traders adding to bullish bets on Europe stocks for 2016. Stocks plunge as Dow tumbles about 420; S&P falls below 2,000.

  • Odd Block ?Best of? 2015:
    Weird trade of the year - 11/30/15 - Put rolls and calls going up in Ascena Retail Group Inc (ASNA)
  • Loser of the year - 6/1/15 - Possible upside Anadarko Petroleum Corp. (APC) butterfly.
  • Most ironic winner of the year - 10/26/15 - Mens Wearhouse (MW) buy call/sell stock.

Strategy Block: Tosaw discusses what to do if you are selling a put and the market goes against you.

Around the Block: This Week in the Market.

  • The market kicks off its first week of 2016 with several economic reports including Fed minutes on Wednesday and the jobs report on Friday.
  • Jan 4: Construction Spending
  • Jan 6: International Trade, Factory Orders and FOMC Minutes
  • Jan 7: Jobless Claims
  • Jan 8: Unemployment

Best of Option Block: The Most Epic Strategy Block Ever

Originally posted on December 24th, 2014, we bring you "The Most Epic Strategy Block Ever" Trading Block: A shortened holiday week, so not much is moving on the street. Upside move in Taser. Facebook and Amazon. Odd Block: Calls trade in Cobalt...
Posted December 31st, 2015

Originally posted on December 24th, 2014, we bring you "The Most Epic Strategy Block Ever"

Trading Block: A shortened holiday week, so not much is moving on the street. Upside move in Taser. Facebook and Amazon.

Odd Block: Calls trade in Cobalt International Energy (CIE), opening calls trade in U.S. Bancorp (USB), and calls going up in Alibaba Holding Group Ltd (BABA).

Xpress Block: Another new tool is being rolled out by OX - IRIS.

Strategy Block: In the spirit of the season, Uncle Mike presents The Twelve Rules of Options Trading!

Around the Block: Have a wonderful holiday week everyone!


Option Block 488: A Bold Way to Make Twenty-Five Cents

Trading Block: The S&P 500 surged 2.8 percent last week, buoyed by gains in oil and raw-material companies, some of the year?s least-loved stocks. VIX jumped 14 percent Monday to 17.91. Oil led an early retreat among commodities Monday,...
Posted December 29th, 2015

Trading Block: The S&P 500 surged 2.8 percent last week, buoyed by gains in oil and raw-material companies, some of the year?s least-loved stocks. VIX jumped 14 percent Monday to 17.91. Oil led an early retreat among commodities Monday, sliding more than 3 percent from a three-week high as Iran repeated its goal of boosting exports after sanctions on the country are lifted.

Odd Block: Calls trading in Royal Caribbean Cruises Ltd (RCL), calls trade in Franklin Resources Inc (BEN), puts trade in Zillow Group, Inc. Class C (Z)

Strategy Block: Uncle Mike Tosaw discusses evaluating your overall financial portfolio.

Mail Block: Listener questions and comments

  • Question from Nelson - This is question is for Andrew from Maine. During my morning run yesterday I was listening to Episode 484.  At the 14:10 minute mark Andrew mentioned a strategy that the end result was that money from one IRA account was moved to a different IRA account. I listened to that portion of the podcast a few times but just could not quite understand the strategy. Could you please help me understand this strategy? Thanks for any help you could give me. Also, thanks so much for the podcast. I travel 30 minutes each way to work and it is very educational. Thanks, Nelson.

Around the Block: No quarterly reports of note are scheduled for this holiday-shortened week. After the first of the year, Walgreens and Monsanto are among those set to report. The fourth-quarter earnings season begins in mid-January.


Best of Option Block: A Terrifying Bloodbath

Originally published on August 25, 2015, this episode focused on the biggest single point drop ever in the DJIA. Also, chicken little was referenced. Trading Block: The DJIA briefly slumped more than 1,000 points, its biggest point-drop ever. VIX...
Posted December 24th, 2015

Originally published on August 25, 2015, this episode focused on the biggest single point drop ever in the DJIA. Also, chicken little was referenced.

Trading Block: The DJIA briefly slumped more than 1,000 points, its biggest point-drop ever. VIX Cash hit 53.29 at 10am. The VIX jumped as much as 90 percent to 53.29, its highest since January 2009. VIX didn?t update for 30 minutes as options quotes got erratic. AAPL hit a low of $92 before rebounding.

Around the Block: Retail earnings season winds down this week


Option Block 487: Peppermint Sticks for Old St. VIX

Trading Block: The Force is not strong with Disney. ?Star Wars: The Force Awakens? had a record-breaking $238 million opening weekend at box offices in the U.S. and Canada, in addition to a near-record $279 million overseas, but DIS was...
Posted December 22nd, 2015

Trading Block: The Force is not strong with Disney. ?Star Wars: The Force Awakens? had a record-breaking $238 million opening weekend at box offices in the U.S. and Canada, in addition to a near-record $279 million overseas, but DIS was off 2% today and off nearly $10 since the movie launched on Thursday. Dow sets mark for most volatile December since 2008. Wall St. slides on lower crude prices, stock options expiry. The Bad of apple of the stock market this month: Apple. Oil prices hit 11-year low as global supply balloons.

Odd Block: Calls trade in iShares MSCI Brazil Index (EWZ), calls trade in Direxion Daily Financial Bull 3x ETF (FAS), calls trade in Mosaic Co. (MOS)

Strategy Block: Tosaw discusses twelve-month LEAP knock-out collar strategy.

Mail Block: In which the listeners weigh in

  • Question from 777 - Is there a specific reason OI in SPY puts has big cluster at the even strikes?

Around the Block: Pre-Christmas earnings coming from Nike, Micron and few others.


Best of Option Block

This week, we are digging through the archives to bring you highlights from the Option Block catalog. First up, a look back at a live raucous show, taped in July, 2012. Remember when AAPL was at $600? Mini contracts. AAPL vs. Samsung. And more...
Posted December 18th, 2015

This week, we are digging through the archives to bring you highlights from the Option Block catalog.

First up, a look back at a live raucous show, taped in July, 2012. Remember when AAPL was at $600? Mini contracts. AAPL vs. Samsung. And more...


Option Block 486: Uncle Mike Says Buy Oil

Trading Block: Crude oil futures fell to seven-year lows - below $35. VIX: On Friday, it was up 28 percent at 24.72. Volatility the surest bet in stocks after Fed meets. Three U.S. fund sectors fear SEC proposal on derivatives may hurt ETFs. Odd...
Posted December 15th, 2015

Trading Block: Crude oil futures fell to seven-year lows - below $35. VIX: On Friday, it was up 28 percent at 24.72. Volatility the surest bet in stocks after Fed meets. Three U.S. fund sectors fear SEC proposal on derivatives may hurt ETFs.

Odd Block: Buying vertical call spreads in Console Energy (CNX), upside call purchase in Royal Caribbean Cruises LTD (RDL), selling June 37 puts in Mondale International Inc (MDLZ)

Strategy Block: Uncle Mike Tosaw discusses his recent SPY trades

Around the Block: All eyes and ears will be the Federal Reserve as they are expected to announce a possible rate change on Wednesday. But, there are several other economic events worth noting as well.

  • Dec 15: Consumer Price Index
  • Dec 16: Housing Starts, FOMC Announcement
  • Dec 17: Jobless Claims

 

 


Option Block 485: What Will the Fed Do?

Trading Block: Oil was down, but energy stocks seemed to drive the market upward. Natural gas down around $2 level today. Odd Block: Call buyers in SPDR Gold Trust (GLD), call buyers in Whole Food Market (WFM), and calls trade in Mens Warehouse...
Posted December 11th, 2015

Trading Block: Oil was down, but energy stocks seemed to drive the market upward. Natural gas down around $2 level today.

Odd Block: Call buyers in SPDR Gold Trust (GLD), call buyers in Whole Food Market (WFM), and calls trade in Mens Warehouse (MW)

Around the Block: What will the Fed do?


Option Block 484: Terrifying Charts of Doom

Trading Block: There is an even weirder thing happening in financial markets. SEC to crack down on derivatives. Oil tumbles to six-year low as OPEC abandons production target. Odd Block: Calls trade in JP Morgan Alerian MLP index (AMJ), calls trade...
Posted December 8th, 2015

Trading Block: There is an even weirder thing happening in financial markets. SEC to crack down on derivatives. Oil tumbles to six-year low as OPEC abandons production target.

Odd Block: Calls trade in JP Morgan Alerian MLP index (AMJ), calls trade in SPDR S&P 500 ETF (SPY), and calls trade in Sunedison Inc. (SUNE)

Strategy Block: Uncle Mike Tosaw discusses a different way to execute a stock repair strategy.

Around the Block: The Fed - Will they or will they not?

  • Dec 8: JOLTS
  • Dec 10: Jobless Claims, Treasury Budget
  • Dec 11: PPI, Retail Sales, Business Inventories, Consumer Sentiment

Option Block 483:  The Fed Is a Bunch of Ninnies

Trading Block: A bit of a selloff today - Yellen signals growing likelihood of a December rate hike. OCC cleared contract volume increased 10% in November. SEC charges twin brothers with fraud for options trading Spoofing and order mismarking. Odd...
Posted December 4th, 2015

Trading Block: A bit of a selloff today - Yellen signals growing likelihood of a December rate hike. OCC cleared contract volume increased 10% in November. SEC charges twin brothers with fraud for options trading Spoofing and order mismarking.

Odd Block: Call buyers in Medtronic PLC (MDT), call sellers in Emerson Electric Co. (EMR), and put sellers in InvenSense Inc. (INVN)

Around the Block: Non Farms tomorrow (12/4)


Option Block 482: Channeling Zoolander

Trading Block: VIX and the egocentricity of the Fed. Odd Block: Calls trade in Qunar Cayman Islands Ltd (QUNR), puts trade in Ascena Retail Group Inc. (ASNA), and puts trade in Zoetis Inc. (ZTS) Strategy Block: Uncle Mike Tosaw gives us an update on...
Posted December 1st, 2015

Trading Block: VIX and the egocentricity of the Fed.

Odd Block: Calls trade in Qunar Cayman Islands Ltd (QUNR), puts trade in Ascena Retail Group Inc. (ASNA), and puts trade in Zoetis Inc. (ZTS)

Strategy Block: Uncle Mike Tosaw gives us an update on his most recent SPY positions.

Around the Block: Non-Farms and the Fed are the main events we will be watching this week.


Option Block 481: Theoretical Value & Implied Volatility

Trading Block: Earnings! Before the bell today: Gamestop Corporation, Tyson Foods, Trina Solar. After the bell:  Palo Alto Networks. S&P 500 profits fall $25 Billion in first three quarters of 2015. Oil slides back lower after spike on...
Posted November 24th, 2015

Trading Block: Earnings! Before the bell today: Gamestop Corporation, Tyson Foods, Trina Solar. After the bell:  Palo Alto Networks. S&P 500 profits fall $25 Billion in first three quarters of 2015. Oil slides back lower after spike on Saudi statement. CME: Shrinking locally to grow abroad.

Odd Block: Puts trade in Freeport McMoran Inc (FCX), puts trade in Chesapeake Energy Corp (CHK), and calls and puts trade in Burlington Stores Inc. (BURL)

Listener Mail: Questions and comments from listeners

Question from Vega - Do puts and calls become more expensive ahead of events due to the risk premium? If so, how do I avoid that in the market?

Question from Peter Davies - Stocks are being hit by latency sensitive strategies like HFT. Is that happening in options as well?

Around the Block: Economic reports this week:

  • Nov 23: Existing Home Sales
  • Nov 24: GDP, Consumer Confidence
  • Nov 25: Durable Goods, Jobless Claims, New Home Sales, Consumer Sentiment

Option Block 480: Getting Naked with the Options All-Stars

Trading Block: Apple plummets to 4th place among hedge holdings, from No. 1. Square surges after raising less than sought in IPO. BATS reports successful launch of EDGX Options - The new market launched on November 2nd and implemented a phased rollout...
Posted November 20th, 2015

Trading Block: Apple plummets to 4th place among hedge holdings, from No. 1. Square surges after raising less than sought in IPO. BATS reports successful launch of EDGX Options - The new market launched on November 2nd and implemented a phased rollout of symbols, which was completed November 17th.

Odd Block: Calls trade in The CBOE Volatility Index (VIX), calls trade in CurrencyShares Euro Trust (FXE), and calls trade in Mosaic Inc. (MOS).

Listener Mail: Listener questions and comments

  • Question from McDuff - What is a naked options position?
  • Question from Kimble - Could a naked call pose huge risks - perhaps unlimited?
  • Question from Fayecuzername - I expected more "Rocktobers" out of shear umbrage. As to my question regarding hedging with ratio spreads, on Friday I put on a SPY 11/20/2015 195-190 put 1x2 for a $.02 credit. Discuss and deride. Thanks.

Around the Block: Earnings on Friday - Abercrombie & Fitch, Foot Locker. Nov 19: Jobless Claims Report


Option Block 479: Stretching Deltas

Trading Block: Rally Ho post Paris. U.S. stocks rise slightly as markets see muted reaction to Paris attacks. Getting Bullish on Yahoo! Heavy call action today. Getting bullish on Bank of America (BAC). Odd Block: Puts trade in TJX Companies Inc...
Posted November 17th, 2015

Trading Block: Rally Ho post Paris. U.S. stocks rise slightly as markets see muted reaction to Paris attacks. Getting Bullish on Yahoo! Heavy call action today. Getting bullish on Bank of America (BAC).

Odd Block: Puts trade in TJX Companies Inc (TJX), calls trade in Lions Gate Entertainment Corp (LGF), and dalls trade in Burlington Stores Inc. (BURL).

Strategy Block: Tosaw discusses how he has stretched deltas since October 26.

Mail Block: Listener questions and comments

  • Question from Carmine - Hi guys, awesome site, great info Since I actually think you guys are for real, I have a simple question. I have just put my toes into options, I know I need help in education, but there are so many places that are more interested in taking your money than helping you. So I am asking you guys, where do you think is a good place to go and learn the simple things at first, such as, when, why, and how to use spreads, or maybe not use them. To day trade or not? I am hungry, with a small account. I am asking for your help. Thank you.

Around the Block: The earnings spotlight is on Wal-Mart and other retail giants this week. Also, numbers!

  • Nov 17: Consumer Price Index, Industrial Production
  • Nov 18: Housing Starts, FOMC Minutes
  • Nov 19: Jobless Claims

Option Block 478: What the Hell Are Second Order Greeks

Trading Block: Stocks fall as ECB, Fed weigh next moves. White says short selling getting her "intense attention." Earnings:   Before the bell today:  Kohls Corporation, Viacom After the bell today:  Applied Materials, Inc., Cisco...
Posted November 13th, 2015

Trading Block: Stocks fall as ECB, Fed weigh next moves. White says short selling getting her "intense attention."

Earnings:  

  • Before the bell today:  Kohls Corporation, Viacom
  • After the bell today:  Applied Materials, Inc., Cisco Systems
  • CSCO - $27.94, ATM Straddle: $1.40 - Approx. 5%
  • Stocks to Watch: Kohls, Advance Auto Parts, Derma Sciences

Odd Block: Puts trading in United States Steel Corp. (X), calls trade in Microsoft Corp (MSFT), and puts trade in Atwood Oceanics Inc. (ATW)

Listener Mail: Listener questions and comments

  • Question from OptionDummy: Are there any additional nuances with a name reporting earnings on Expiration Friday?
  • Question from Cookie: What is the best online broker for stocks and futures options?
  • Question from Cspell: I'm interested to get OI's thoughts on second order greeks. I don't recall them ever being mentioned on any of your shows before. I don't see too much mentioned about them in general, even in the hinterlands although I have recently seen them talked about on another site and they tout them as the holy grail so to speak. Thanks!

Around the Block: Earnings on Friday: J.C. Penney, Tyco International; Nov 12: Jobless Claims, JOLTS and Treasury Budget; Nov 13: PPI, Retail Sales and Consumer Sentiment; on Friday, the Commerce Department reports U.S. retail sales for the month of October, when retail sales likely increased 0.3%.


Option Block 477: How to Make 10 Million in Two Weeks

Trading Block: Who was right about volatility? What will the Fed do? Crude doubletalk from OPEC. Crude curve looking interesting. Odd Block: Calls trade in EFA-big upside call closer, calls trade in MW, and puts trade in MDT. Strategy Block: You,...
Posted November 10th, 2015

Trading Block: Who was right about volatility? What will the Fed do? Crude doubletalk from OPEC. Crude curve looking interesting.

Odd Block: Calls trade in EFA-big upside call closer, calls trade in MW, and puts trade in MDT.

Strategy Block: You, too, can be a winner. Or, the importance of looking at your whole portfolio.

Mail Block: Listener questions and comments.

  • Question from 777: What quirks are there with time decay, [especially] during [the] last few weeks with ITM vs. OTM?
  • Question from Topcat: Are options less risky than contracts for difference?

Around the Block: Retailers begin to step into earnings spotlight this week, including J.C. Penney and Macy's. Other highlights will include reports from tech giants Applied Materials and Cisco Systems.


Option Block 476: Star Wars Straddles

Trading Block: Earnings! Before the bell today:  Apache, Celgene Corporation, Crocs, Inc., After the bell today:  Walt Disney Company, DreamWorks Animation News: DIS: $113. ATM straddle: $4.85, 4.3%. On a huge rally since massive...
Posted November 6th, 2015

Trading Block: Earnings!

  • Before the bell today:  Apache, Celgene Corporation, Crocs, Inc.,
  • After the bell today:  Walt Disney Company, DreamWorks Animation

News:

  • DIS: $113. ATM straddle: $4.85, 4.3%. On a huge rally since massive selloff in August.
  • OCC Cleared Contract Volume Declined 26% in October.
  • Market falls in line with Yellen, but now Fed credibility at stake.

Odd Block: Calls and puts trade in Bank of America Corp. (BAC), calls trade in Metlife Inc. (MET), and puts trade in Straight Path Communication (STRP)

Listener Mail: Listener questions and comments

  • Question from Kevin - How do you put on such a small trade for a client and still get paid?
  • Question from David - There is huge open interest for TWTR at the 30 strike for the Nov monthly, almost 240,000 contracts evenly split. Can you talk about the possible implications? Is it interesting?

Around the Block: Earnings!

  • Friday - Humana

Numbers:

  • Nov 5: Jobless Claims
  • Nov 5: GDP
  • Nov 6: Unemployment

Option Block 475: The Real Magic Mike

Trading Block: Earnings! Before the bell today: Visa, Cardinal Health, Estee Lauder, After the bell today: Allstate Corporation, AMC Entertainment, Avis Budget, Fitbit, Inc., Tenant Healthcare Corporation Chipotle tumbles after e. coli outbreak...
Posted November 3rd, 2015

Trading Block: Earnings!

  • Before the bell today: Visa, Cardinal Health, Estee Lauder,
  • After the bell today: Allstate Corporation, AMC Entertainment, Avis Budget, Fitbit, Inc., Tenant Healthcare Corporation
  • Chipotle tumbles after e. coli outbreak is linked to chain.

Odd Block: Calls trade in Tyson Foods, Inc. (TSN), puts trade in Pilgrims Pride Corp. (PPC), and calls trade in Sprouts Farmers Market Inc. (SFM).

Strategy Block: Tosaw discusses his all bullish client

Mail Block: Listener questions and comments

  • Comment from CSpell - With SC down 14% so far on 10/29/15 and what looks like some investigation pending, it seems our friend was on the wrong side on this one. I think you should have a follow up on odd blocks as part of the show, could be fun.
  • Question from RBolen22 - Are there active listed options markets outside the US that are worth trading? Have you ever covered this?

Around the Block: High hopes for Facebook, Disney earnings this week.

 


Option Block 474: The Fed Is Ruining Everything

Trading Block: Earnings! Before the bell today: Coca-Cola, CME Group Inc., the biggest futures-market operator, said profit soared in its third quarter, lifted by higher trading volume and growth in the company?s market data and information...
Posted October 30th, 2015

Trading Block: Earnings!

  • Before the bell today: Coca-Cola, CME Group Inc., the biggest futures-market operator, said profit soared in its third quarter, lifted by higher trading volume and growth in the company?s market data and information services business.
  • After the bell today: BAIDU, Electronic Arts, Expedia, LinkedIn Corporation, Starbucks.
  • EA - ATM Straddle $4.70 - Approx. 6.2%

Also, on this day (October 29) in 1929: The New York Stock Exchange crashed in what would be called the Crash of '29 or "Black Tuesday."

Odd Block: Calls trade in CBS Corp (CBS), calls and puts trade in Walgreens Boots Alliance Inc. (WBA), and calls trade in Kate Spade and Co. (KATE)

Listener Mail: Listener questions and comments

  • Question from 603 - Before a report like FOMC, is buying calls bad due to Vol premiums?
  • Question from 777 - What quirks are there with time decay - during the last few weeks with ITM vs. OTM?
  • Question from Angus G - On your TopStep radio show just now you mentioned "buying WTI Crude Oil calls". What is the ticker symbol for these products?! When I put WTI into my broker I get "W&T Offshore". I thought USO was the best/only way to speculate on CL using options? You mentioned however that there might be better options that more directly mirror crude... Thanks

Around the Block: Earnings on Friday: CBOE Holdings, CVS, Chevron.


Option Block 473: Behold the Power of Deo

Option Block 473: Behold the Power of Deo Trading Block: What is happening right now? Earnings! Before the bell today: Xerox Corporation. Wall Streets next test: Profits, data, and the Fed. The S&P 500 rallied 2.1% last week - its fourth...
Posted October 27th, 2015

Option Block 473: Behold the Power of Deo

Trading Block: What is happening right now? Earnings! Before the bell today: Xerox Corporation. Wall Streets next test: Profits, data, and the Fed. The S&P 500 rallied 2.1% last week - its fourth consecutive week of gains. Once again, Apple is expected to fuel earnings. Gold rally brings out options bulls.

Odd Block: Calls and puts trade in Diageo PLC (DEO), calls trade in the Coca-Cola Co. (KO), and calls trade in Mens Wearhouse Inc. (MW).

Strategy Block: St. Charles awakens, andTosaw discusses his latest trading strategies.

Mail Block: Listener questions and comments

  • Question from Veg - I do not know much about options - apologize for my noobness. In August, during the mini crash, were traders selling premium in the equity options? If so, how does that work? Is the spread wide?

Around the Block: What are we watching? Earnings! This week will be one of the busiest of the third-quarter earnings reporting season. Tuesday - Alibaba (before bell), Apple (after bell), Gilead Sciences (after bell), Jet Blue (before bell).


Option Block 472: GOOGL, AMZN and Binary Palooza

Trading Block: Today we feature special guest Dan Cook from NADEX. Earnigns: Before the bell today:  Eli Lilly, 3M, Dow Chemical, McDonalds, Nasdaq, Sirius, Southwest Airlines After the bell today:  Alphabet Inc., Amazon, AT&T,...
Posted October 23rd, 2015

Trading Block: Today we feature special guest Dan Cook from NADEX.

Earnigns:

  • Before the bell today:  Eli Lilly, 3M, Dow Chemical, McDonalds, Nasdaq, Sirius, Southwest Airlines
  • After the bell today:  Alphabet Inc., Amazon, AT&T, Microsoft, Pandora

News:

  • Dow surges more than 275 on McDonald's, ECB stimulus talk - McRevenge! McDonald's turns table on Chipotle.
  • Now that Google Is Alphabet, options suggest another big stock move.
  • Barclays: Use bullish options to play gold rally.

Odd Block: Calls trade in Prudential Financial Inc. (PRU), calls trade in eBay Inc (EBAY), and calls trade in Corning Incorporated (GLW).

Listener Mail: Listener questions and comments

  • Question from Fred - I trade futures all day but not options. Trying to trade on a longer term cycle to avoid juggling positions. What advice do you have for someone who wants to trade options but cannot babysit their options daily?
  • Question from Peter D. - Stocks are being hit by latency sensitive strategies like HFT. Is that happening in options as well?

Around the Block: Earnings on Friday - American Airlines (before bell), Procter & Gamble (before bell), Whirlpool (before bell).


Option Block 471: Oprah vs. Howard Stern Options Blowout

Trading Block: Oprah buys 10% of Weight Watchers, stock soars. Also, earnings! Walmart (WMT) stock plunged 10% last week on sharply lower guidance from the company. Analysts expect Amazon (AMZN) to report a 21% jump in revenue compared with the...
Posted October 20th, 2015

Trading Block: Oprah buys 10% of Weight Watchers, stock soars. Also, earnings!

  • Walmart (WMT) stock plunged 10% last week on sharply lower guidance from the company.
  • Analysts expect Amazon (AMZN) to report a 21% jump in revenue compared with the year-ago period.
  • Yahoo (YHOO) is also expected to notch a 15% jump in revenue. Analysts are betting on Microsoft (MSFT) and IBM (IBM) to maintain reasonably healthy profits amid falling revenue, while American Airlines (AAL) is likely to see a big jump in earnings on plummeting fuel prices.

Odd Block: Calls trade in Santander Consumer USA (SC), calls trade in Sirius XM Holdings (SIRI), and uts trade in Weight Watchers Intl. (WTW).

Strategy Block: Tosaw discusses his most recent trading activities and why he has been staying away from bonds.

Mail Block: Listener questions and comments

  • Question from ONV - Do you focus on all stock options that trade at large multiples, or is there some other way that you determine which names to analyze?

Around the Block: Google stands out amid low earnings expectations.


Option Block 479: Maximum Gamma

Trading Block: VIX - The Chicago Board Options Exchange Volatility Index fell 4.6 percent Thursday to 17.21, after back-to-back gains for the first time since Sept. 28. VIX is down 30 percent this month, on track for the most since...
Posted October 16th, 2015

Trading Block: VIX - The Chicago Board Options Exchange Volatility Index fell 4.6 percent Thursday to 17.21, after back-to-back gains for the first time since Sept. 28. VIX is down 30 percent this month, on track for the most since July.

Earnings:  The third-quarter earnings crunch begins this week.

  • Mattel (MAT) - $22.26, Oct 22 straddle - Approx. $2 / 9% move.
  • Netflix (NFLX) added fewer subscribers in the U.S. in the September quarter than it had anticipated.
  • Amazon (AMZN) is up 1.6% at $553.29, as traders celebrate lackluster subscriber statistics for programming rival Netflix, Inc.
  • Odd Block: Calls trade in Micron Technology Inc. (MU), calls trade in Solarwinds Inc. (SWI), and puts trade in Market Vectors Russia ETF (RSX).

Listener Mail: Listener questions and comments

  • Question from Angelo M - I have been listening to the Options Playbook Radio episodes on iron butterflies and skip strike butterflies. I wondered what you guys on the All-Star Panel thought about maybe combining those concepts with a ratio iron butterfly that sells an extra put on the downside leg. My thought process is to do this in stocks where I expect a big move but I also do not mind buying the underlying at the level of the lower leg? It would also help reduce the outlay of the trade and make it easier to break even. Thoughts? Great show and great discussions.
  • Question from Futures MD - Does theta increase or change intraday - perhaps around lunch?

Around the Block: Earnings on Friday, October 16 include GE, Honeywell International and WW Grainger.


Option Block 469: Introducing the Juicy Put Newsletter

Trading Block: S&P over 2000. Is Tosaw a bull again? VIX weekly options launch today - after a long wait they are finally here! BlackRock proposes remedy for extreme volatility. Insider trading spreads outside of stocks - New York attorney general...
Posted October 9th, 2015

Trading Block: S&P over 2000. Is Tosaw a bull again? VIX weekly options launch today - after a long wait they are finally here! BlackRock proposes remedy for extreme volatility. Insider trading spreads outside of stocks - New York attorney general Eric T. Schneiderman has launched an inquiry into DraftKings and FanDuel

Odd Block: Strange and unusual activity in P, UUP, and AMX.

Listener Mail: Listeners take over

  • Question from Dave - Would you say the options market leads the underlying from a price perspective?
  • Question from NKX - How do entries work on options strategies? Is entry random? Should we care when we are filled? Should we adjust often? How often should we adjust on a strategy like an iron condor?

Around the Block: Earnings season kicks off with Alcoa


Option Block 468: Bernanke vs. Skeletor

Trading Block: The streak is broken - VIX Cash finally breaks 20! "More execs should have gone to jail after financial crisis" Bernanke says. Stocks jump as expectations ease of U.S. rate hike; oil gains. The London Metal Exchange (LME) introduces...
Posted October 6th, 2015

Trading Block: The streak is broken - VIX Cash finally breaks 20! "More execs should have gone to jail after financial crisis" Bernanke says. Stocks jump as expectations ease of U.S. rate hike; oil gains. The London Metal Exchange (LME) introduces measures to grow options trading on exchange.

Odd Block: Puts trade in Materials Select Sector SPDR (XLB), calls trade in Conoco Phillips (COP), and calls and puts trade in Valeant Pharmaceuticals Intl. (VRX)

Strategy Block: Tosaw discusses dealing with covered calls that are going against you.

Around the Block: Alcoa, PepsiCo kick off Q3 earnings season.


Option Block 467: Energy Options Smackdown

Trading Block: A mild selloff at the end of another volatile session: S&P High - 1927, Low - 1900. The S&P 500 slumped 2.6% in September, and posted its first back-to-back quarterly decline in four years. VIX Cash 23.42. US stocks advance,...
Posted October 2nd, 2015

Trading Block: A mild selloff at the end of another volatile session: S&P High - 1927, Low - 1900. The S&P 500 slumped 2.6% in September, and posted its first back-to-back quarterly decline in four years. VIX Cash 23.42. US stocks advance, shaving worst quarterly rout in four years. Short sellers cash in Apple bets as stock declines. Metals are getting massacred.

Odd Block: Calls trade in SPDR S&P Metal and Mining (XME), calls trade in EV Energy Partners, LP (EVEP), and puts trade in Apache Corp (APA).

Listener Mail: Listener questions and comments

  • Question from TennisGr8 - Last week you mentioned being a market maker made you quick on your feet. This would be similar to a doctor in the emergency room. Does a retail trader need to be that fast and, if so, where can they learn to be that fast?
  • Question from Pat - Can you discuss the pros and cons of hedging a portfolio with put back spreads in the respective index, done for a credit? Love all the shows. Thanks for all the education. PS Please do not say Rocktober this year.

Around the Block: September jobs report issued by the Labor Department Friday


Option Block 466: China Sucker Punches Market, VIX Shrugs

Trading Block: An aggressive selloff on the street today. Profits from Chinese industrial companies down 8.8%. GLD taketh away recently. Odd Block: Strange and unusual activity in BBY, KRE, and MU. Strategy Block: Uncle Mike discusses trading and...
Posted September 29th, 2015

Trading Block: An aggressive selloff on the street today. Profits from Chinese industrial companies down 8.8%. GLD taketh away recently.

Odd Block: Strange and unusual activity in BBY, KRE, and MU.

Strategy Block: Uncle Mike discusses trading and managing risk as a perpetual bull.

Around the Block: Will the Chinese bloodbath continue?


Option Block 465: The Feckless Fed

Option Block 465: The Feckless Fed Trading Block Auto-parts suppliers option implied volatility increases on Volkswagen probe. U.S. stocks decline as investors crave more guidance from the Fed.   Odd Block Calls and puts trade in DISH...
Posted September 25th, 2015

Option Block 465: The Feckless Fed

Trading Block

Auto-parts suppliers option implied volatility increases on Volkswagen probe.

U.S. stocks decline as investors crave more guidance from the Fed.

 

Odd Block

Calls and puts trade in DISH network Corp. (DISH)

Calls trade in Horizon Pharma PLC (HZNP)

Puts trade in Merck & Co. (MRK)

 

Strategy Block

Uncle Mike Tosaw discusses rolling options on vertical and single-leg puts

 

 

Listener Mail

Question from Fred - Being a market maker on the floor was a good way to learn options trading. Can you explain how MM worked and why it was the best way to learn options trading?

 

 

Around the Block

Nike and BlackBerry highlight another quiet earnings week.


The Option Block 465: The Great Internet Meltdown

The Great Internet Meltdown
Posted September 22nd, 2015

The Option Block 465: The Great Internet Meltdown

Trading Block

  • The Skype Gods conspired against the All-Star Panel on this episode. But we're back nonetheless with more options analysis, unusual activity, listener mail and more. 
  • Topics covered in the Trading Block today include: the still wonky VIX futures term structure, the endless debate over the FED, 70X returns on Volkswagen puts and much more

ODD Block

  • Strangle Selling Palooza!
  • Ensco PLC - ESV
  • Boardwalk Pipeline Partners -  BWP
  • FMC Technologies Inc. - FTI

The Mail Block

  • This week the listeners want to know what the All-Star Panel thinks about pin risk.

Around the Block

  • Keep your powder dry while this crazy volatility shakes itself out of the market

Option Block 464: A Colossal Waste of Time

Trading Block: August US listed options volumes grew 12% compared to July, reaching a new monthly high in 2015. VIX dips below 20.00 for the first time since August 20th after FOMC statement. No hike: Fed keeps benchmark rate near zero. Citing global...
Posted September 18th, 2015

Trading Block: August US listed options volumes grew 12% compared to July, reaching a new monthly high in 2015. VIX dips below 20.00 for the first time since August 20th after FOMC statement. No hike: Fed keeps benchmark rate near zero. Citing global economic weakness and financial market turmoil, the Federal Reserve agreed Thursday to keep its benchmark interest rate near zero despite the rapidly improving U.S. labor market. Alt-Options launches Bitcoin derivative market.

 

Odd Block: Strange and unusual activity in PBR, WLL, and QLIK.

Strategy Block: Uncle Mike Tosaw discusses trading the Fed.

Listener Mail: Listener questions and comments.

Comment from Hawkeye - Mark- A few things- Too bad the daily dose of Lobster was too much of a cholesterol bomb for those guys at TOS.  Bummer.  I liked the show. With respect to the OIC study on various options strategies since 2003 - Are you really surprised the highest return was gained by a synthetic short put stupid in what has mostly been a bull market?  (covered strangle => short call + long stock = ITM short put, plus OTM short put). So, YES!  Selling 2 puts brings in more money than selling only 1! Yes, the Lobster and Meatball have taught me enough to figure this out and they should feel good that something has stuck.

Keep the great shows coming- Hawkeye

 

PS- A while back Uncle Mike answered a question I had about holding.  I sent a thank you back, but I was not sure you ever got it.  Anyways, please tell Uncle Mike THANKS that that was an outstanding answer and it made perfect sense.


Option Block 463: Fed Fever

Trading Block: Alibaba - Shares of Alibaba Group Holding Ltd. (BABA -4.05%) have tumbled recently amid an array of problems. U.S. stocks decline amid focus on Fed rate decision this week. Traders are preparing for massive Fed-driven volatility. The...
Posted September 15th, 2015

Trading Block: Alibaba - Shares of Alibaba Group Holding Ltd. (BABA -4.05%) have tumbled recently amid an array of problems. U.S. stocks decline amid focus on Fed rate decision this week. Traders are preparing for massive Fed-driven volatility. The SPDR S&P 500 (NYSE:SPY) put-call ratio dropped hard to well below its 20 DMA on Friday.

Odd Block: Calls trade in Anheuser Busch Inbev SA (BUD), puts trade in Chesapeake Energy Corp. (CHK), and calls trade in EMC Corp (EMC).

 

Mail Block: Listener questions and comments

  • Question from Mark Brant - I guess if you place the long side first then your margin will be lower for the short side so maybe the long side is hard?
  • Question from Joe Joe - What happens when I sell a call? Does that money hit my account right away, or do I have to wait until I close the position?

 

Around the Block: Fed Meeting this Wednesday and Thursday.


Option Block 462: The Great Fed Fake out

Trading Block: Federal Reserve may bring new life to fed-funds options pit. Apple plans land with a thud. Apple is pulling out all the stops, but nothing it seems, can get the stock moving or get investors jazzed again.   Odd Block:...
Posted September 11th, 2015

Trading Block: Federal Reserve may bring new life to fed-funds options pit. Apple plans land with a thud. Apple is pulling out all the stops, but nothing it seems, can get the stock moving or get investors jazzed again.

 

Odd Block: Calls trade in Whiting Petroleum Corp. (WLL), calls trade in Qualcomm Inc. (QCOM), and calls trade in Rite Aid Inc. (RAD).

Listener Mail: Listener questions and comments

  • Question from MB2 - Heard you chat about legging spreads on the show. The strategy guy seemed to not be a fan of legging. Can he expand on that and his reasoning behind it? I have utilized legging many times as a way to improve my execution prices on spreads. I think it is a legitimate trading technique.

 

Around the Block: Earnings season is coming? 


Option Block 461: Can Hedging Gamma Move the Stock Market?

Trading Block: Panel of ex-Fed officials say no rate hike will come at September meeting   Monthly Volume Breakdown: OCC cleared contract volume rose 33% in August. Year-to-date average daily cleared contract volume is up 0.15 percent from...
Posted September 4th, 2015

Trading Block: Panel of ex-Fed officials say no rate hike will come at September meeting

 

Monthly Volume Breakdown:

  • OCC cleared contract volume rose 33% in August.
  • Year-to-date average daily cleared contract volume is up 0.15 percent from 2014 with 16,809,864 contracts in 2015.
  • Exchange-listed options volume reached 426,328,677 contracts in August, a 33 percent increase from August 2014 volume of 320,155,407 contracts.
  • Year-to-date average daily options volume is up 0.21 percent from 2014 with 16,554,221 contracts in 2015.
  • Equity options volume in August was 373,616,786 contracts, a 30 percent increase from August 2014.
  • Index options volume in August was up 60 percent from August 2014 with 52,711,891 contracts.

Odd Block: Puts trade in Cobalt International Energy Inc. (CIE), calls trade in CIENA Corp. (CIEN), and puts trade in Wisdom Tree India Earnings (EPI)

Listener Mail: Listener questions and comments

  • Question from Mousin - Could it be that the huge options portfolios in macro hedge funds are to blame for the big vow in the market on Monday?
  • Question from ADM - During activities on Monday, were there any options exchanges that failed?

 

Around the Block: Non-Farms out tomorrow. 


Option Block 460: The Creepy VIX

Trading Block: Dow off about 100 points in choppy trade, tries to stay out of correction. Goldman Sachs thinks this volatility index should be much lower:  The VIX is trading like the U.S. is in a recession. If the options market is right, China...
Posted September 1st, 2015

Trading Block: Dow off about 100 points in choppy trade, tries to stay out of correction. Goldman Sachs thinks this volatility index should be much lower:  The VIX is trading like the U.S. is in a recession. If the options market is right, China stock rescue is doomed.

 

Odd Block: Calls trade in UltraShort Euro ProShares (EUO), calls trade in Xerox Corp. (XRX), and calls trade in Arch Coal Inc. (ACI).

Strategy Block: Tosaw gives us an update of the things he has been doing, and why he has been doing them.

Around the Block: Earnings highlights of this week:

  • Tuesday - Ambarella, Dollar Tree, H&R Block
  • Thursday - Ciena, Medtronic

Option Block 460: Imploding Apple Puts

Trading Block: Selloff or rally? The market needs to make up its mind. Whither the VIX: there was a brief flirtation with 50 handle now back into the more ?sensible? 20 handle. So, it takes a massive selloff in the marketplace to get VIX...
Posted August 28th, 2015

Trading Block: Selloff or rally? The market needs to make up its mind. Whither the VIX: there was a brief flirtation with 50 handle now back into the more ?sensible? 20 handle. So, it takes a massive selloff in the marketplace to get VIX over 50. AAPL had a 20 handle range this week. We missed the deal of the century on the AAPL Sep 75 puts.

 

Odd Block: Calls trade in BTU, calls trade in P, and puts trade in LL

Mail Block: Listener questions and comments.

  • Question from Leon187: Is it true that Apple sells puts to buy back their own stock? Do you feel that large volume of Sep 75 puts was a part of that program?
  • Question from tennisgr8t: Can you give examples of managing positions using Greeks and is it a good strategy? Your show is awesome.

Around the Block: Earnings on Friday include Deere and Company, Foot Locker, Inc.


Option Block 459: A Terrifying Bloodbath

Trading Block: The DJIA briefly slumped more than 1,000 points, its biggest point-drop ever. VIX Cash hit 53.29 at 10am. The VIX jumped as much as 90 percent to 53.29, its highest since January 2009. VIX didn?t update for 30 minutes as options...
Posted August 25th, 2015

Trading Block: The DJIA briefly slumped more than 1,000 points, its biggest point-drop ever. VIX Cash hit 53.29 at 10am. The VIX jumped as much as 90 percent to 53.29, its highest since January 2009. VIX didn?t update for 30 minutes as options quotes got erratic. AAPL hit a low of $92 before rebounding.

 

Around the Block: Retail earnings season winds down this week


Option Block 458: Risk and Reward via Ashley Madison

Trading Block: 6.5 month low. Breaking through big technical levels in the S&P. Huge move in VIX. A rundown of soft and hard losers. When Wal-Mart becomes a flight-to-safety. Everything is NOT awesome.   Odd Block: Strange and unusual...
Posted August 21st, 2015

Trading Block: 6.5 month low. Breaking through big technical levels in the S&P. Huge move in VIX. A rundown of soft and hard losers. When Wal-Mart becomes a flight-to-safety. Everything is NOT awesome.

 

Odd Block: Strange and unusual activity in MSFT, PNK, and POT.

Mail Block: Listener questions and comments in response to Monday?s show.

  • Comment 1 from @MarkBrant1KM: One thing I learned from Dr. J. that you guys don't discuss much is how return on margin is paramount to retail traders!
  • Comment 2 from [email protected]: Main focus should be maximizing return on margin when trading options!

Mystery Block: Mark Sebastian discusses risk and reward.

 

Around the Block: Not going to hit all-time highs this week. What will the Fed do?


Option Block 457: To Roll or Not to Roll

Trading Block: Stocks to watch include: Tesla, Zulilly, Pentair, and Estee Lauder. Gold trading outlook: Futures extend gains on US rates speculations. U.S. stocks rise as investors turn focus on economic strength. Odd Block: Call spreads go up in...
Posted August 19th, 2015

Trading Block: Stocks to watch include: Tesla, Zulilly, Pentair, and Estee Lauder. Gold trading outlook: Futures extend gains on US rates speculations. U.S. stocks rise as investors turn focus on economic strength.

Odd Block: Call spreads go up in Williams Companies Inc. (WMB), giant call roll in Hartford Financial Services Group, Inc. (HIG), and calls trade in Xilinx Inc. (XLNX).

Strategy Block: Tosaw discusses when to roll and when not to roll.

Mystery Block: Sebastian discusses his thoughts on trading and how it relates to putt-putt golf.

 

Around the Block: Be cautious. Fed minutes might be interesting.


Option Block 456: A Constitutional Amendment for Options

Trading Block: Bearish options bets on Apple are spiraling higher. Stocks to Watch: Tesla Motors Inc. (TSLA) +2.26%), American Apparel Inc. (APP), Lenovo Group Ltd. (HKG). OCC and U.S. Securities Market Coalition ask U.S. Department of Labor to allow...
Posted August 14th, 2015

Trading Block: Bearish options bets on Apple are spiraling higher. Stocks to Watch: Tesla Motors Inc. (TSLA) +2.26%), American Apparel Inc. (APP), Lenovo Group Ltd. (HKG). OCC and U.S. Securities Market Coalition ask U.S. Department of Labor to allow use of listed options in retirement accounts.

 

Odd Block: Calls trade in SYSCO Corp (SYS), puts trade in SPDR Barclays Capital High Yield (JNK), and puts trade in Technology SPDR (XLK).

Mail Block: Listener questions and comments

  • Question from Mark Brant - Is insurance against assignment legal? Why not pay a fee for the broker to absorb assignment risk if your strategy prefers it?

Around the Block: Shake Shack, Inc. (SHAK) will be listed Aug 14.


Option Block 455: The Peril of Legging Spreads

Trading Block: Our special guest today is Vlad Karpel, Founder of Tradespoon. Dow jumps triple digits; oil recovery boosts energy 2%. How should investors play falling Apple stock? Earnings today after the bell: Rackspace Hosting, Inc., Shake Shack,...
Posted August 11th, 2015

Trading Block: Our special guest today is Vlad Karpel, Founder of Tradespoon. Dow jumps triple digits; oil recovery boosts energy 2%. How should investors play falling Apple stock? Earnings today after the bell: Rackspace Hosting, Inc., Shake Shack, Inc., Take Two Interactive - TTWO $31.38, Straddle - $3.10 - Approx. 10%. BATS gets regulatory nod for second U.S. options exchange.

 

Odd Block: Calls and puts trade in Ensco PLC (ESV), calls trade in Oasis Petroleum Inc. (OAS), and calls roll in SYSCO Corp. (SYY)

Strategy Block: Tosaw analyzes SPX and SPY

Around the Block: Earnings!

  • Tuesday - Fogo de Chao, Inc., Red Robin Gourmet Burgers, Tribune Publishing Company
  • Wednesday - Cisco, Macy?s, Aramark, Roundy?s, Inc., BABA and CSCO
  • Thursday - Applied Materials, Inc., Kohl?s, King Digital Entertainment, El Pollo Loco Holdings, Inc., Nordstrom Inc., Tribune Media Company,
  • Friday - J.C. Penney

Option Block 454: Why the Heck Are You Closing?

Trading Block: Stocks getting crushed post-earnings.   Disney - stock closed @ $121 prior to earnings on 8/4. ATM straddle $4.10 or 3.4%. Stock off over 10% in the past two days - off 2% today. Tesla - stock $270 prior to earnings. ATM...
Posted August 7th, 2015

Trading Block: Stocks getting crushed post-earnings.

 

  • Disney - stock closed @ $121 prior to earnings on 8/4. ATM straddle $4.10 or 3.4%. Stock off over 10% in the past two days - off 2% today.
  • Tesla - stock $270 prior to earnings. ATM straddle $22.25 or 8.2%. Down 28 handles, over 10% today.
  • A massive sell-off is underway in media stocks, and Viacom is by far the biggest loser.

Odd Block: Calls trade in Allscripts Healthcare Solutions (MDRX), puts trade in Noble Corp. (NE), and calls trade in SPDR S7P Oil and Gas (XOP)

Mail Block: Listener questions and comments

  • Question from RJR357 - On the CBOE blog you see comments such as Bulls are piling into XZY or calls outnumber puts 6 to 1. Is it prudent to follow the herd? Is this info of any value? I'm guessing this is the big money traders. Great show.
  • Question from Charles Vela - My friend recommended Dough as an options starter platform. It seems a little silly to me. How do you like it?

 

Around the Block: Earnings: FitBit (FIT)


Option Block 453: Steak with a Side of Lobster

Trading Block: Thanks to everyone that came out last week to our live show! We had a wonderful seeing all of our listeners in person.   Earnings today after the bell: Brookdale Senior Living, Avis Budget Group, Allstate Corp, General Growth...
Posted August 4th, 2015

Trading Block: Thanks to everyone that came out last week to our live show! We had a wonderful seeing all of our listeners in person.

 

  • Earnings today after the bell: Brookdale Senior Living, Avis Budget Group, Allstate Corp, General Growth Properties.
  • Media & retail highlight earnings this week: CVS, Office Depot Inc., Walt Disney Co.
  • Highlights of this week: Wednesday: Tesla, Time Warner, and Twenty-First Century Fox; Thursday: Allergan       

Odd Block: Calls trade in Williams Companies Inc. (WMB), calls trade in NorthStar Asset Management (NSAM), and calls and puts trade in Merck & Co., Inc. (MRK)

Strategy Block: Tosaw discusses the importance of patience, especially when trading.

Mail Block: Listener questions and comments

  • Question from Beacher454 - Last week Mark S. said the free options training is ok, but you need paid training to really make money. Can you give an example how paid training is better?

 

Around the Block: Upcoming earnings: Disney, Tesla, Office Depot. Plus, macroeconomics. Options on VIX weekly futures. Will they? Won?t they? 


Option Block 451: What Happens When We Go Live?

Trading Block: Still in the thick of earnings season. LNKD straddle going out at over $25. Talking FB, VIX. Trading the Sebastian bottom. The introduction of VIX weekly futures. Whole Foods prices weigh on earnings. Who?s afraid of insider...
Posted July 31st, 2015

Trading Block: Still in the thick of earnings season. LNKD straddle going out at over $25. Talking FB, VIX. Trading the Sebastian bottom. The introduction of VIX weekly futures. Whole Foods prices weigh on earnings. Who?s afraid of insider trading? Chinese equity vol. Will Gold fall to $350/ounce? SO MANY new CBOE indexes. SO MANY.

 

Odd Block: Ratio/vertical calls roll in MDLZ.  Ratio buy-write in NOW. Taking the short off in NOK.

The Mail Block: Listener questions and comments.

  • What happened to Options Oddities?
  • What is the worst beginner options trade?
  • Beware of paying through the offer

Around the Block: Still some earnings coming: XOM, CBOE, CVX. Introducing the inverse mullet: the tellum. Greece. Jobs report next week.


Option Block 451: Chinese Implosion

Trading Block: China meltdown. Chinese equities have suffered the sharpest one-day crash in eight years. Earnings: Bidu, Facebook, Twitter, Exxon Mobil. Will option traders ?pin? gold to $1,100/oz?   Odd Block: Call buyers in EXCO...
Posted July 30th, 2015

Trading Block: China meltdown. Chinese equities have suffered the sharpest one-day crash in eight years. Earnings: Bidu, Facebook, Twitter, Exxon Mobil. Will option traders ?pin? gold to $1,100/oz?

 

Odd Block: Call buyers in EXCO Resources Inc. (XCO), calls trade in Knowles Corp (KN), and calls trade in Pfizer Inc. (PFE)

Strategy Block: What is going on in the S&P 500?

Mail Block: Listener questions and comments.

  • Question from Jose - Avengers, JPW, Minions, so many big summer movies. What is a good way to play big movie releases with options? I have got about 10k in my trade account to use for fun spec stuff like this. Ideas?
  • Question from Brian Collamer - Hi. Last week Uncle Mike was talking about a customer who had a call calendar on in Netflix. The customer got assigned on the short call. Does that mean the strikes went in the money? If so, would not you exercise the back month long call to cover the assignment? Thanks for the great content you folks make available!

 

Around the Block: Earnings!


Option Block 450: Earnings Madness Continues

Trading Block: Earnings! MSFT: $47.28 on earnings. Straddle: $2.40 / 5%. Opens down approx. $2. Microsoft lost 3.7 percent after posting its largest-ever quarterly loss. AAPL: Closed near $131 on earnings. Straddle: $6.15 / approx. 4.7%. Opened...
Posted July 24th, 2015

Trading Block: Earnings!

  • MSFT: $47.28 on earnings. Straddle: $2.40 / 5%. Opens down approx. $2. Microsoft lost 3.7 percent after posting its largest-ever quarterly loss.
  • AAPL: Closed near $131 on earnings. Straddle: $6.15 / approx. 4.7%. Opened $122 - down $8.75. Apple fell 4.2 percent after iPhone sales and revenue forecast missed estimates.
  • Nasdaq retreats amid tech selloff after Apple, Microsoft results
  • Odd Block: Calls trade in Chevron Corp. (CVX), calls trade in Direxion Daily Financial Bear 3X ETF (FAZ), and calls and puts trade in Patterson-UTI Energy, Inc (PTEN)

Mail Block: Listener questions and comments

  • Question from Sam A, Houston, TX - Is it a good idea to sell credit spreads in leveraged ETFs to benefit from the con tango?
  • Question from 999 - How do you spec on the market falling out of bed using options?

 

Around the Block: Earnings: Apple earnings not the only huge story this week. Watch GM, Boeing, Coke, Amazon, Microsoft & others. Friday: Johnson Controls, Xerox


Option Block 449: Earnings Surprises Aplenty

Trading Block: In which we feature special guest co-host: Fred Ruffy from Trade Alert   Earnings Today: Before the Bell: Morgan Stanley, Haliburton, Hasbro; After the Bell: IBM. Tech names blowing through their straddles: NFLX: 8%, GOOG:...
Posted July 21st, 2015

Trading Block: In which we feature special guest co-host: Fred Ruffy from Trade Alert

 

Earnings Today: Before the Bell: Morgan Stanley, Haliburton, Hasbro; After the Bell: IBM. Tech names blowing through their straddles: NFLX: 8%, GOOG: 3.5%. Stocks slightly higher as NASDAQ hits new record.

Odd Block: Puts trade in Ford Motor Company (F), puts trade in Windstream Holdings Inc. (WIN), and calls trade in ONEOK, Inc. (OKE).

Mail Block: Listener questions and comments:

  • Question from Adam Sam - ?How come no one saw GOOG jump coming. Do you ever share where you get your info from? I would love to know. Thanks.
  • Question from big George: Hola options amigos. Fun program. Just found it on Stitcher and now it?s on the top of my business playlist. You guys make options fun. I would like to know if there?s any way that I can enter after hours orders for options. I can access afterhours books for my stocks but I don?t see that choice for options. Do I need to use a special broker or platform? This would really help me with my earnings season trading. Thanks, George.

 

Around the Block: What to watch for in Apple earnings. Also watching GM, Boeing, Coke, Amazon, Microsoft & others.


Option Block 448: Slings and Arrows of Umbrage

Trading Block: GOOG after the bell. ATM Straddle: Approx. $21 - a 3.5% move. Last earnings: 19 handle move from close to open, approx. 3.5%. Volume: Approx. 3x ADV. Calls nearly 3 to 1 over puts. Bank of England urges longer jail terms for market...
Posted July 17th, 2015

Trading Block: GOOG after the bell. ATM Straddle: Approx. $21 - a 3.5% move. Last earnings: 19 handle move from close to open, approx. 3.5%. Volume: Approx. 3x ADV. Calls nearly 3 to 1 over puts. Bank of England urges longer jail terms for market manipulators. On July 16th, 2004 - Martha Stewart was sentenced for insider trading, conspiracy, and obstruction of justice in the ImClone trading scandal.

 

Odd Block: Calls trade in C&J Energy Services Ltd (CJES), calls trade in Regions Financial Corp (RF), and calls roll in US Bancorp (USB)

Mail Block: Listener questions and comments

  • Comment from Anonymous - I listened to your talk on Options Insider Radio. (That is a very good program!) It seems that there are a lot of misunderstandings about the cracking down on short sales in China.

In fact, there is no limit on short short sales in China as long as you can borrow shares. Very similar to the US shorting stocks. But the main problem in China is the leverages with loans from outside financial companies.

A subsidiary of BABA is enabler of such outsider loans. That subsidiary company in Hangzhou (where I am from) has software called HOMS, which expand the single brokerage account into a multiple user account with or without brokerage firms knowledge. The original intended users are fund management firms. But the loan companies use the software to provide loans and control the account for margin risk management. They provide margin loans up to 1:10 ratio.

When the market initially dropped 15~20%, many accounts will have margin problem. Later on, the loan companies started manipulation operation: They purposely push down the index futures at certain hours, trigger the market sales, and then they forcefully close customer accounts.

Finally the Chinese police department stepped in. That really scared those loan operators.

Overall, I think it is great idea to forceful interrupt the vicious feedback loop, and return the market to more normal operations.

In China, the communist part[y] has to take responsibilities for the wellbeing of the general population, instead of "following the rules" to allow or protect a few successful guys who figured out how to take advantage of the system shortcomings.

So I think it is a good. In the US, no one was charged and put into jail for 2008 crisis. Here, we think that following rules is more important than the results. But the rules have been set up the guys who purposely keep holes they can exploit.

In this case, I totally support the Chinese government. It demonstrates that Chinese government can correct the problem much more effectively and efficiently.

For a society, it is better to protect 1,000,000 people from losing $1,000 each than to allow a guy to make $1B through "successful" trading.

  • Question from SB94 - What?s up with Chinese stock options? Are options going to be listed in China anytime soon?
  • Question from Sean - I like to follow an indicator that determines the strength of a trend going in a certain direction. How do these typically reflect in the options market?

 

 

 

 

Around the Block: Earnings! Citigroup, Google, eBay, UnitedHealth Group, America Movil, Blackstone, Goldman Sachs, Philip Morris International, Schlumberger, Advanced Micro Devices, Mattel, General Electric, Honeywell


Option Block 447: VIX Apocalypse Redux

Trading Block: July and the VIX weigh heavily on the S&P. U.S. stocks rise after Greece reaches an agreement with creditors. Netflix hits new high price in advance of stock split, earnings. Fitbit shares are in uncharted territory as analysts...
Posted July 14th, 2015

Trading Block: July and the VIX weigh heavily on the S&P. U.S. stocks rise after Greece reaches an agreement with creditors. Netflix hits new high price in advance of stock split, earnings. Fitbit shares are in uncharted territory as analysts initiate coverage.

 

Odd Block: Puts trade in IAMGOLD Corp. (IAG), calls trade in Marathon Petroleum Corp. (MPC), calls trade in Market Vectors Oil Services (OIH).

Strategy Block: Tosaw discusses synthetics and his most recent trading strategies.

Mail Block: Listener questions and comments

  • Question from Fred - I heard options traders like to have multiple positions in their trading accounts. How many should I have?

Around the Block: Earnings: Google, Netflix and big banks highlight earnings expectations this week.

 

  • Tuesday - JPMorgan, Wells Fargo, Johnson & Johnson, Yum! Brands.
  • Wednesday - Intel, Netflix, Bank of America, Delta Airlines, US BankCorp, BlackRock, Kinder Morgan, PNC Financial Services.
  • Thursday - Citigroup, Google, eBay, UnitedHealth Group, America Movil, Blackstone, Goldman Sachs, Philip Morris International, Schlumberger, Advanced Micro Devices, Mattel.
  • Friday - General Electric, Honeywell

Option Block 446: Getting Into Trouble with Unusual Activity

Trading Block: What glitch? Competition eases NYSE shut-down. Fed increase are little more than a coin flip for derivative traders. Apple stock chart points to more downside ahead. Earnings today: Before the bell: PepsiCo, Walgreens   Odd...
Posted July 10th, 2015

Trading Block: What glitch? Competition eases NYSE shut-down. Fed increase are little more than a coin flip for derivative traders. Apple stock chart points to more downside ahead. Earnings today: Before the bell: PepsiCo, Walgreens

 

Odd Block: Calls trade in CBS Inc. (CBS), calls trade WisdomTree EuropeHedged ETF (HEDJ), and calls trade in JCPenney Co. (JCP).

Mail Block: Listener questions and comments

  • Question from N198UA - I'm a big fan of all your radio shows - especially Options Oddities. I've always had an interest in unusual activity and even attended your forum in Chicago a couple of years ago. My question: if a retail trader makes an options trade based on unusual activity that is later deemed "insider" (or something not legal); could the retail trader - and anyone who copied the "insider" trade be in trouble? What are the possible outcomes?        

 

  • Question from 999 - Brokers typically charge more to short stocks that are hard to borrow. What are examples of the extra fees or commissions that you pay when you trade options in hard to borrow stocks?
  • Question from Jose Aprile - Any quirks with interest rates options that show the Fed might act soon?

 

Around the Block: Greece is the word.


Option Block 445:  Pricing Straddles at the Nasty Point

Trading Block: CBOE and C2 Options Exchange total trading volume up 16% in June. Surge in Europe stock options volume shows race to hedge Greece. A few dozen Chicago traders will don their multicolored jackets to trade soybean and forex futures the...
Posted July 7th, 2015

Trading Block: CBOE and C2 Options Exchange total trading volume up 16% in June. Surge in Europe stock options volume shows race to hedge Greece. A few dozen Chicago traders will don their multicolored jackets to trade soybean and forex futures the old-fashioned way one last time on Monday, marking the end of 167 years of open-outcry trading in the city where it was born. Oil at 3-months low as outlook darkens again.

Odd Block: Rolling calls in Office Depot (ODP), calls trade in Hilton Worldwide Holdings Inc. (HLT), puts trade in Chevron Corp. (CVX), and calls trade in Blackstone Group LP (BX).

Strategy Block: Tosaw discusses how he prepared for the holiday weekend.

 

Mail Block: Listener questions and comments

 

  • Question from Fred - Been having problems finding an options paper trading account that does not require me to fund an account. Any suggestions?

Around the Block: Earnings - New earnings season kicks off with Alcoa, PepsiCo, and Walgreens.

 


Option Block 444: Return of the Flowmaster

Today we have Special Guest Star Henry Schwartz from Trade Alert     Trading Block: Jobs data disappoints. OCC cleared contract volume grew 4% in June. Tesla Motors Inc. (TSLA) shares gain momentum after record quarterly...
Posted July 6th, 2015

Today we have Special Guest Star Henry Schwartz from Trade Alert

 

 

Trading Block: Jobs data disappoints. OCC cleared contract volume grew 4% in June. Tesla Motors Inc. (TSLA) shares gain momentum after record quarterly deliveries.

Odd Block: Calls trade in Targa Resources Partners LP (NGLS), calls trade in Market Vectors Gold Miners (GDX), and puts trade in ARM Holdings plc (ARMH)

 

 

Mail Block: Listener questions and comments:

  • Question from Steamboat Willie - What would you say is the best buy and hold strategy using options? I am interested in using some options in my retirement account but I do not have the time to manage them on a daily basis. I would like to put something on and only check on it every few weeks or months. I am mostly interested in large cap stocks, although I am not averse to dipping my toes into alternative assets such as oil.
  • Question from LeanMean: Is it possible for retail to capture dividends using options? Do you have any good dividend capture strats for me?

Around the Block: Will the U.S. be a safe haven? August earnings fireworks? Will U.S. bonds rally?

 


Option Block 443: Revenge of the Gyro

Trading Block: Dow falls 225 points, in the red for the year amid Greece; VIX spikes 24%. Biggest one-day loss since 2011 for European stocks as Greek crisis deepens. FitBit options listed on 6/26: 1st day volume = 4,600 contracts. 2,500 on Friday,...
Posted June 30th, 2015

Trading Block: Dow falls 225 points, in the red for the year amid Greece; VIX spikes 24%. Biggest one-day loss since 2011 for European stocks as Greek crisis deepens. FitBit options listed on 6/26: 1st day volume = 4,600 contracts. 2,500 on Friday, 2,500 so far today. Oil falls to three-week low amid risk of Greek exit from Euro.

Odd Block: Calls trade in US Silica Holdings (SLCA), calls trade in Yandex NV (YNDX), and puts trade in NorthStar Realty Finance Corp (NRF).

Strategy Block: Uncle Mike Tosaw discusses his trading, or lack thereof, on this particular day.

Mail Block: Listener questions and comments

  • Question from Malki k. - I was surprised to see that FIT options are trading already, listed a little quicker than I thought. I like the stock but not at these levels, so I am looking at some downside strats. One that caught my eye was Aug 30-26 1x2 put spread - looks like I can buy the spread for somewhere around $.60 - $.90 depending on current prices. What is your opinion of that strategy? Not married to that time frame so I could also go longer term to November for $.10 - $.70. Seems like Nov puts are a little bit pricier. Before you say it, I know that this strategy can potentially get me long the stock from $26, but I am more comfortable with that price level than $33.50. And I would have all of the profits from my spread to reduce the effective purchase price of the stock to the low-20s range.
  • Question from Andrew J. - FIT Nov 25/40 bullish risk reversal for even money - thoughts?

 

Around the Block: Earnings! Tuesday - ConAgra Foods Inc. Wednesday - Constellation Brands, Inc., General Mills, Paychex, Inc.


Option Block 442: What to Do During Extended Stock Halts

Trading Block: A Greek deal drives the rally ho! Dow briefly adds 150 points, NASDAQ sets intraday high on Greece hopes. Crude and gold both drop - gold off 1.5%. Hilton: Why are so many traders betting on this hotel giant? Amberella getting...
Posted June 23rd, 2015

Trading Block: A Greek deal drives the rally ho! Dow briefly adds 150 points, NASDAQ sets intraday high on Greece hopes. Crude and gold both drop - gold off 1.5%. Hilton: Why are so many traders betting on this hotel giant? Amberella getting crushed.

 

Odd Block: Puts trade in Ford Motor Company (F), calls trade in Owens Corning (OC), and calls trade in Green Plains Inc. (GPRE).

 

Strategy Block: Uncle Mike discusses selling calls to hedge, post rally.

 

Mail Block: Listener questions and comments

 

  • Question from Kevin Duggan: to info Hi Mark, I love your shows! Question - What happens to my options if the underlying gets halted permanently? Would I ever be able to close them? I am remembering Sino Forest from a few years ago in Canada- stock got halted pending a fraud investigation and never came back. I am worried that I will not be able to cash in on my BABA Puts! Thanks, Kevin

Around the Block: Are there still earnings left? Evidently, with Blackberry reporting later. Will there be new all-time highs? Greece default date: 6/30.


Option Block 441: Bring in the Punt Team

Trading Block: Rally ho on the street. Fitbit IPO prices at $20 a share, above expectations. Fitbit Inc., the maker of wearable fitness-tracking devices, priced its initial public offering above its estimated range at $20 a share, raising $732...
Posted June 19th, 2015

Trading Block: Rally ho on the street.

  • Fitbit IPO prices at $20 a share, above expectations. Fitbit Inc., the maker of wearable fitness-tracking devices, priced its initial public offering above its estimated range at $20 a share, raising $732 million. That makes it the biggest tech IPO this year and gives it a market cap of roughly $4 billion.
  • Apple Bands - Apple (AAPL) shares are in focus in early trading. The tech giant is reportedly amassing major profits from its Apple Watch band. Reuters reports that nearly 22% percent of Apple Watch buyers purchase one or more spare bands. Apple has sold approximately 2.8 million watches since of mid-June, according to an estimate from research firm Slice Intelligence.
  • Oracle tumbles - shares are tanking in early trading. Shares of Oracle tanked 7.6% in premarket action after the software company late Wednesday reported a drop in fourth-quarter earnings.

Odd Block: Calls trade in Williams Companies Inc. (WMB), calls trade in Toll Brothers Inc. (TOL), and puts trade in iShares MSCI EAFE Index Fund (EFA)

 

 

Mail Block: Listener questions and comments:

  • Question from TennisGr8t - Longos Odd Block show. If technical analysis is not good for options how then do you get trade ideas? Are any of the newsletters that get hawked daily any good? I am leaning NO. Great show gents.
  • Question from Anthony Sontakis - Hi, this message pertains to futures options. I currently trade futures options on Tradestation Futures+ platform. I was hoping someone might be able to recommend a Futures Options trading platform for a solo trader like myself. I need the ability to enter advanced orders like OCO and OSO based on the underlying price, and I need the ability for profit/loss graphs, neither of which features Tradestation platform supports right now. The only platform I have found that supports what I need is OptionsCity, but the pricing is for institutions ($2500/month) - that is cost prohibitive for me. Are there any good but affordable platforms out there to trade Futures Options for a little guy like me? Thanks, Anthony

 

 

Around the Block: Oracle, Rite-Aid earnings. Continuing to punt on the Fed. NASDAQ closes at record high. Another summit on the Greece bailout.


Option Block 440: Lions, Tigers and Bears. Oh, My!

Trading Block: Trade bodies urge regulators to sort out derivatives reporting. Stocks to watch: CVS, Lumber Liquidators, Actavis. CBOE extends VIX and SPX options trading hours as global growth in VIX continues to build.   Odd Block: Puts trade...
Posted June 16th, 2015

Trading Block: Trade bodies urge regulators to sort out derivatives reporting. Stocks to watch: CVS, Lumber Liquidators, Actavis. CBOE extends VIX and SPX options trading hours as global growth in VIX continues to build.

 

Odd Block: Puts trade in SPDR S&P Homebuilders ETF (XHB), calls trade in iShares MSCI Germany Index (EWG), and calls roll in TASER International, Inc. (TASR).

 

 

Strategy Block: Tosaw discusses hedging bond portfolios.

 

Option Pit Mystery Block: Sebastian discusses crisis management.

 

 

Around the Block: Earnings: Oracle, Rite Aid & FedEx Highlight Quiet Earnings Week.


Option Block 439: Rise of the Delta Neutraler

Trading Block: Apples big meeting is a loser for investors - the Apple (AAPL) faithful are breathlessly awaiting the company's latest announcements at its confab starting Monday. But investors know better ? it's a bust. VXX - closed the day at...
Posted June 12th, 2015

Trading Block: Apples big meeting is a loser for investors - the Apple (AAPL) faithful are breathlessly awaiting the company's latest announcements at its confab starting Monday. But investors know better ? it's a bust. VXX - closed the day at $18 (a change of -2.33%) at a relative volume of 0.95. Lululemon founder, Chip Wilson, files to sell his stake in the company.

Odd Block: Calls trade in iShares FTSE/Xinhua China (FXI), puts trade in iShares MSCI Germany Index (EWG), and big call buy in DISH Network Group (DISH)

Mail Block: Listener questions and comments

  • Question from RJR 357: Are the Options Bootcamps worth it?
  • Question from Mr. Fed: Can you explain how to use gamma around earnings.
  • Question from Roger Lee: were the calls sold or bought for Tyco? There are about 14K calls that are expiring in July as well. I'm not sure if it was a buy or sell as well.

Around the Block: Earnings: Sears, Lululemon.


Option Block 438: Newsletter Huckster Front-Runs Himself

Trading Block: Down day on the market: weekend coming in; selloff. TSLA up $7, but why? What is going on with Greece? If they can get out of their debt, why not the rest of the EU? Theta vs. delta. Could AAPL go over the trillion dollar market cap...
Posted June 9th, 2015

Trading Block: Down day on the market: weekend coming in; selloff. TSLA up $7, but why? What is going on with Greece? If they can get out of their debt, why not the rest of the EU? Theta vs. delta. Could AAPL go over the trillion dollar market cap level? AVP rumor redux: making up stories to manipulate the market & SEC.

Odd Block: Puts trade in TUR, puts trade in AU, and calls trade in CCL.

Strategy Block: Ratio spreads on bonds.

Around the Block: Shaking fists at Greece. Vol blip. LULU earnings leak?


Option Block 437: Are Oil Puts Too Cheap

Trading Block: A pronounced selloff across the market today. The IMF calls out the Fed - says rates should be not raised until 2016. Goldman is long puts in USO and XLE - saying volatility is just too low. Odd Block: Puts trade in Ocwen Financial...
Posted June 6th, 2015

Trading Block: A pronounced selloff across the market today. The IMF calls out the Fed - says rates should be not raised until 2016. Goldman is long puts in USO and XLE - saying volatility is just too low.

Odd Block: Puts trade in Ocwen Financial Group (OCN), puts trade in Intel Corp. (INTC), and Aug calls trade in Cisco Systems, Inc. (CSCO)

Mail Block: Listener questions and comments

  • Question from Value Investrader: Question for you regarding unusual options activity, when Vol & OI increase, how do we know whether they were bought vs sold?
  • Question from Tom_Inc: What is a good intraday options trading strategy for SPY?
  • Question from Sin City: Why do you not use hashtags for each of the show to sort out the questions? For example: #OptionBlock, #VolatilityViews, etc.

Around the Block: Greek deadline coming up. Non-farm payrolls. Fed Watch: June.


Option Block 436: The Most Shameful Odd Block Yet

Trading Block: Embrace options in the TWTR stock fire sale. Intel to buy Altera in nearly $17B cash deal. Euronext to launch volatility contracts. Odd Block: Calls and puts trade in CSX Corp (CSX), puts trade in IAMGOLD Corp (IAG), and calls trade in...
Posted June 2nd, 2015

Trading Block: Embrace options in the TWTR stock fire sale. Intel to buy Altera in nearly $17B cash deal. Euronext to launch volatility contracts.

Odd Block: Calls and puts trade in CSX Corp (CSX), puts trade in IAMGOLD Corp (IAG), and calls trade in EV Energy Partners LP (EVEP)

Strategy Block: Anything you can do with stock, I can do with options.

Around the Block: June kicks off the close of earnings season.


Option Block 435: The Dark Heart of the Soul

Trading Block: Wall Street is using the power of Dodd-Frank against itself. Shake Shacks (SHAK) unhedgeable risk. Chipotle (CMG) stock rallying following higher analyst rating. Google (GOOGL) tech deals on pace to surpass 1999. Odd Block: Calls trade...
Posted May 29th, 2015

Trading Block: Wall Street is using the power of Dodd-Frank against itself. Shake Shacks (SHAK) unhedgeable risk. Chipotle (CMG) stock rallying following higher analyst rating. Google (GOOGL) tech deals on pace to surpass 1999.

Odd Block: Calls trade in CONSOL Energy Inc. (CNX), calls trade in McDonalds Corp (MCD), and puts trade in iPath S&P 500 VIX Short Term ETN (VXX).

Mail Block: Listener questions and comments

  • Question from Gerry Engle - Hola fellows. Like the programs especially Option Block and Volatility Views. I noticed you guys do not talk much about technicals. The few times you have mentioned them you seem to take a dim view of them. Why is that? Are there no technicals that you feel are useful for options traders to pay attention to?
  • Question from Calls vs Puts - Why is there not just one product that you can sell and buy to express your bullish or bearish outlook instead of two - calls and puts? Is that not a bit of overkill?
  • Question from Georges Sinclair - Why are iron condors so popular? Seems like many other strategies can offer similar performance. Why has that one strategy become so dominant?

Around the Block: Early summer doldrums? Any action in anything anytime soon?


Option Block 434: Buy SPY Calls and Go Away

Option Block 434: Buy SPY Calls and Go Away Trading Block: Buying SPY for the summer. The absence of fear - How low can the VIX go? Stocks rise to near records; oil jumps above $60. Someone made a quick buck trading cable mergers - Cablevision soared...
Posted May 22nd, 2015

Option Block 434: Buy SPY Calls and Go Away

Trading Block: Buying SPY for the summer. The absence of fear - How low can the VIX go? Stocks rise to near records; oil jumps above $60. Someone made a quick buck trading cable mergers - Cablevision soared 18 percent on Wednesday

Odd Block: Calls trade in Sphere 3D corp. (ANY), calls trade in TYCO Intl PLC (TYC), and calls trade in Advance Auto Parts, Inc. (AAP)

Mail Block: Listener questions and comments

  • Question from David S. - I think Apple is writing/buying options. Check my blog post for an option oddity: - http://bravo0123.tumblr.com. Why would they do this? I do not know, it?s only 6 million shares for Apple. Can I profit off this guess? Not sure.

Around the Block: Earnings: Big-box retailers step into the spotlight for earnings this week - i.e. Best Buy.


Option Block 433: New Competitor for the Volatility Crown

Trading Block: Icahn says "dramatically undervalued" Apple should trade at $240. AccuShares is set to list a couple of interesting products on Tuesday: AccuShares Spot CBOE VIX Fund Up Shares (VXUP) and AccuShares Spot CBOE VIX Fund Down Shares...
Posted May 19th, 2015

Trading Block: Icahn says "dramatically undervalued" Apple should trade at $240.

AccuShares is set to list a couple of interesting products on Tuesday: AccuShares Spot CBOE VIX Fund Up Shares (VXUP) and AccuShares Spot CBOE VIX Fund Down Shares (VXDN).

Odd Block: Calls and puts trading in CBRE Group Inc. (CBRE), puts trade in DSW Inc. (DSW), and calls trade in Molson Coors Brewing Company (TAP)

Strategy Block: Uncle Mike Tosaw discusses trading in SPY

Around the Block: Earnings: Consensus estimates from Wall Street analysts call for year-on-year earnings growth from big-box retailers Home Depot Inc. and Target Corporation, but for earnings declines from Best Buy Co Inc., Staples, Inc. and Wal-Mart Stores, Inc. when they report this week.


Option Block 432: Brazen Illegal Activity in AVP

Trading Block: Rally ho on the market today. Is Avon in play? Stock halted after rallying over 20%. ADV 11k contracts - today over 75k! Avon Products Inc. said it never received a takeover bid from PTG Capital Partners Ltd., a firm listed in a...
Posted May 15th, 2015

Trading Block: Rally ho on the market today. Is Avon in play? Stock halted after rallying over 20%. ADV 11k contracts - today over 75k! Avon Products Inc. said it never received a takeover bid from PTG Capital Partners Ltd., a firm listed in a securities filing as offering $18.75 a share for the struggling cosmetics company.

Odd Block: Calls trade in Michael Kors Holdings (KORS), calls trade in PowerShares DB Agriculture (DBA), and puts trade in Healthcare SPDR (XLV)

Mail Block: Listener questions and comments

  • Question from Dmitry Shesterin ?- @Options Some equities have more active options than others, why is $BAC so disproportionately more active? Some contracts beat $SPY, $VIX.
  • Question from Fred Decker - Mark, I am nearing the end of reading Natenberg - I have even been going back to some basic concepts in the earlier chapters to refresh myself. While I like the book, I do not see much of a trading edge in Natenberg. The market models he uses assume frictionless trades and that volatility is constant. Is Natenberg a good book to get an edge in the market, or do you have another secret book to add to the trader's arsenal?

Around the Block: Earnings: Major retailers highlight this week's earnings outlook.


Option Block 431: Why Is No One Trading Options?

Trading Block: OPEC: Oil prices to stay below $100 for next decade. April U.S. options volume at 327.6m, down from March as spreads tighten. Highlights from The Options Industry Conference in Miami last week. Odd Block: Calls and puts trade in the...
Posted May 12th, 2015

Trading Block: OPEC: Oil prices to stay below $100 for next decade. April U.S. options volume at 327.6m, down from March as spreads tighten. Highlights from The Options Industry Conference in Miami last week.

Odd Block: Calls and puts trade in the SPDR S&P 500 ETF (SPY), puts trade in Altisource Portfolio Solutions (ASPS), and calls trade in Iron Mountain Inc. (IRM)

Strategy Block: Tosaw discusses selling calendar spreads

Mail Block: Listener questions and comments

  • Question from Nicolas Bougie: Many Thanks for [Russell] Rhodes podcast you guys put online. Very educational! My question to you guys is: What is your personal favorite trading platform and why? What platform would you suggest to someone starting in this business?

Around the Block: Earnings! Wednesday - Cisco, JC Penney, Macys. Thursday - Kohls, Nordstrom, King Digital


Option Block 430: Shaken, Not Stirred

Trading Block: Bond, James Bond. A bullish bond market rally could be in our future. VIX going into Non-Farm Payroll - could we see a big move? Odd Block: Puts trade in Whole Foods Market, Inc. (WFM), puts go up in iShares iBoxx High Yield Corp...
Posted May 8th, 2015

Trading Block: Bond, James Bond. A bullish bond market rally could be in our future. VIX going into Non-Farm Payroll - could we see a big move?

Odd Block: Puts trade in Whole Foods Market, Inc. (WFM), puts go up in iShares iBoxx High Yield Corp ETF (HYG), calls trade in Alibaba Group Holding Ltd (BABA)

Mail Block: Listener questions and comments

  • Question from Dmitry Shesterin: Where do you see more HFT activity, in equities markets or options?
  • Question from Tom: When should I adjust a credit spread? What percentage of profit should I aim for?
  • Question from Fred: I am a futures guy dabbling in options. Do options traders need different tool than futures traders? If so, what tools or services do you recommend outside of the broker platforms?
  • Question from Karl: What is the better way to get "free juice" on a bullish position - bullish risk reversal for a credit/even, vertical ratio call spread for a credit/even or just a short put for a credit (obviously). This would be for a near term (a few months), but not explosive (maybe to 5%) rally in the underlying. When is buying the stock the best option?

Strategy Block: Uncle Mike Tosaw discusses selling puts.

Around the Block: Looking ahead to non-farms


Option Block 429: Avenging Pacquiao

Option Block 429: Avenging Pacquiao Trading Block: Bonds taking it on the chin. Disney stock soars, lifted by the superhero power of The Avengers. CBOE reports 35% of their total volume is from weeklys.     Odd Block: Puts roll in...
Posted May 5th, 2015

Option Block 429: Avenging Pacquiao

Trading Block: Bonds taking it on the chin. Disney stock soars, lifted by the superhero power of The Avengers. CBOE reports 35% of their total volume is from weeklys.

 

 

Odd Block: Puts roll in iShares Russell 2000 index ETF (IWM), massive put block trade in SouFun Holdings Ltd (SFUN), and puts trade in Clean Energy Fuels Corp. (CLNE)

 

Outside Trading Hours: In his brand new segment, Mark Sebastian discusses the NFLs latest move to remove tax-except status.

 

 

Around the Block: Earnings


Option Block 428: The Thorax of the Trade

Option Block 428: The Thorax of the Trade Trading Block: Tattoo snafu inks Apple iWatch wearers. Options volume slid in first quarter. Bad sign? Retail investors all in: TD Ameritrade. The dollar is on its longest losing streak since 2011. India VIX...
Posted May 1st, 2015

Option Block 428: The Thorax of the Trade

Trading Block: Tattoo snafu inks Apple iWatch wearers. Options volume slid in first quarter. Bad sign? Retail investors all in: TD Ameritrade. The dollar is on its longest losing streak since 2011. India VIX caps monthly advance as futures rollover below average. Tesla loses ground ahead of battery event.

 

 

Odd Block: Calls trade in PowerShares DB US Dollar Index (UUP), calls trade in Kinder Morgan Inc. (KMI), and puts trade in Youku Tudou Inc. (YOKU)

 

Mail Block: Listener questions and comments

  • Question from Nick - I have heard markets spend 30% of time trending and 70% of time bracketing. Can I use options to trade both of these environments?
  • Question from Alan - Why is rolling a position so prominent? Is that not just averaging into a losing trade?
  • Question from Anglo Jim - We saw a trending bull market for most of 2014. Is it simplistic to say that you could have just bought out-of-the-money calls and done fairly well? What about that decay that you are always talking about? Does that become a factor in that strategy, or does the bull market overcome it?
  • Question from Orlando - I am thinking of using weeklys to initiate debit vertical call spreads. Is that a good use case for them?
  • Comment from Mark Brant - @Options Great Option Block episode! I got even smarter about options again! The gift that keeps on giving: OIR. Thx!

 

 

Around the Block: Earnings: Apple & other earnings expected to dominate the week of April 27. Friday - Chevron, Weyerhaeuser


Option Block 427: Rocking AAPL Earnings

Option Block 427: Rocking AAPL Earnings Trading Block: AAPL earnings after the bell. AAPL Stats: ·  ATM weekly straddle: $7.20 - approx 5.4%. ·  ADV: 988K contracts. ·  Today: 1.7M contracts. · ...
Posted April 28th, 2015

Option Block 427: Rocking AAPL Earnings

Trading Block: AAPL earnings after the bell.

AAPL Stats:

·  ATM weekly straddle: $7.20 - approx 5.4%.

·  ADV: 988K contracts.

·  Today: 1.7M contracts.

·  Call/put ratio: 2.1/1.

·  Net deltas: short 670k.

·  Calls sold on bid roughly equal to calls bought on ask - puts also evenly divided.

·  AAPL volatility bets surge in options market as buyback beckons.

Investors seek protection against healthcare stock decline - Healthcare companies on a seven-year tear have been top performers so far in 2015. Love ?em or Hate ?em, China Stocks Are Red Hot in Options Market - Bearish options bets on the Deutsche X-trackers Harvest CSI 300 China A-Shares ETF.

Odd Block: Calls go up in iShares MSCI Taiwan Index (EWT), call blocks trading in Joy Global Inc. (JOY), and OTM puts trade in Direct TV (DTV)

Strategy Block: Tosaw discusses hedging AAPL and other earnings strategies.

Mail Block: Listener questions and comments

  • Question from Cab 65 - What account size do you recommend to sell wide iron condors?

Rock Block: In which the all-stars discuss movies in the Michael Bay oeuvre. Let us know your thoughts on Facebook, Twitter, or by email

Which Nicholas Cage movie is the best?

  1. The Rock
  2. Con Air
  3. Face Off

Who does the best ?Welcome to the rock? interpretation?

  1. Uncle Mike
  2.  The greasy meatball
  3. Mark ?the voice of options? Longo

Around the Block: Earnings: AAPL & other earnings expected to dominate the week of April 27.

 

 


Option Block 426: Hedging Crude Oil Is Not Rocket Science

Option Block 426: Hedging Crude Oil Is Not Rocket Science Trading Block: NASDAQ composite rises above March 2000 record close. Roots of 'flash crash' go back further than you thought at CME. Oil jumps 3 percent, hits 2015 high on Yemen, supply...
Posted April 24th, 2015

Option Block 426: Hedging Crude Oil Is Not Rocket Science

Trading Block: NASDAQ composite rises above March 2000 record close. Roots of 'flash crash' go back further than you thought at CME. Oil jumps 3 percent, hits 2015 high on Yemen, supply concern. Earnings today include (before the bell): GM, Procter and Gamble, Caterpillar, Dow Chemical, Southwest Airlines, Dunkin Brand Groups; and (after the bell): Google, Microsoft, Starbucks, Amazon, Capital One, E-Trade Financial, Pandora.

 

Odd Block: Giant put buyer in The CBOE Volatility Index (VIX), and calls trade in iShares MSCI Taiwan Index (EWT)

Mail Block: Listener questions and comments

  • Question from Vegan - What oil products do airlines use to hedge their crude exposure?
  • Question from Nick - I have heard markets spend 30% of time trending and 70% of time bracketing. Can I use options to trade both of those environments?
  • Question from Alan - Why is rolling a position so prominent? Is that no just averaging into a losing trade?
  • Question from Evan - For Uncle Mike - I am long the Apple July 130-140 call spread. What do you think about this both for an earnings play, as well as for some longer term bullish exposure to Apple? What are some other bullish strategies you could recommend for a modest ten-point rally over the next three months?
  • Comment from Mark Brant - Great Option Block episode! I got even smarter about options again! The gift that keeps on giving: OIR. Thx! 

 

Around the Block: More earnings. Friday, April 24 - American Airlines, Xerox, Tyco International. Monday, April 27 - Apple, Inc.


Option Block 425: Scratching Heads & Taking Names

Option Block 425: Scratching Heads & Taking Names Trading Block: A mild day on the street. IBM Earnings after the bell today - IBM trading around $164.30. Costco stock rises today after upping dividend - reauthorizing $4B buyback program. This is...
Posted April 21st, 2015

Option Block 425: Scratching Heads & Taking Names

Trading Block: A mild day on the street. IBM Earnings after the bell today - IBM trading around $164.30. Costco stock rises today after upping dividend - reauthorizing $4B buyback program. This is how one trader made millions on Disney - shares of Walt Disney have had a great year.

 

 

Odd Block: Calls trade in Owens Corning (OC), puts trade in Wolverine World Wide, Inc. (WWW), and calls trade in Spectra Energy Corp. (SE).

Strategy Block: Tosaw discusses ways in which to protect your portfolio.

 

 

Mail Block: Listener questions and comments

  • Question from Sean - Can you do a quick overview of binary options? How do they differ from regular options, and when should people use them? How do I choose my strike with binary options?

Around the Block: Earnings: Morgan Stanley, Facebook, Coke. Some huge names report earnings this week.

 


Option Block 424: NFLX and the Roll to Oblivion

Option Block 424: NFLX and the Roll to Oblivion Trading Block: The "Widowmaker" rides again - NFLX has a HUGE post-earnings rally, up $56. BATS to file for second U.S. options exchange. IPO: Stock of online marketplace Etsy surges in trading debut....
Posted April 18th, 2015

Option Block 424: NFLX and the Roll to Oblivion

Trading Block: The "Widowmaker" rides again - NFLX has a HUGE post-earnings rally, up $56. BATS to file for second U.S. options exchange. IPO: Stock of online marketplace Etsy surges in trading debut. Shares of high-speed trading company Virtu Financial Inc. have risen 17 percent in their stock market debut Thursday. Ben Bernanke is not the problem, the system is the problem.

 

Odd Block: Calls trade in Kinder Morgan Inc. (KMI), puts trade in iShares MSCI Turkey ETF (TUR), and broken wing put flies go up in Royal Bank of Canada (RY)

 

Mail Block Palooza: Listener questions and comments

 

 

  • Question from Tom - When should I adjust a credit spread? What percentage of profit should I aim for?
  • Question from DuckTape - Can you guys recommend any good movies about options trading?

Option Block 423: Unusual Activity Palooza

Option Block 423: Unusual Activity Palooza Trading Block: How traders cashed in big on the GE deal. VIX does record volume - it?s been a while.   Odd Block: Calls trade in Dunkin Brands Group (DNKN), puts trade in Valero Energy Corp....
Posted April 14th, 2015

Option Block 423: Unusual Activity Palooza

Trading Block: How traders cashed in big on the GE deal. VIX does record volume - it?s been a while.

 

Odd Block: Calls trade in Dunkin Brands Group (DNKN), puts trade in Valero Energy Corp. (VLO), calls trade in AT&T (T).

 

Strategy Block: A special strategy block from Andrew about volatility

 

 

Mail Block: Question from Ingles - I like options, but the commissions are killing me! Why are they so expensive?

 

Around the Block: Earnings!

  • Tuesday - JP Morgan, Wells Fargo, Intel Corporation
  • Wednesday - Bank of America, Netflix, Inc., SanDisk Corporation
  • Thursday - Goldman Sachs, Citigroup Inc., American Express Company
  • Friday - General Electric Company

The Great Derivatives Guessing Game

The Great Derivatives Guessing Game
Posted April 10th, 2015

TRADING BLOCK

  • Crazy realized volatility going down in Hong Kong markets - EWH.
  • The Apple Watch release.
  • Its time for the "Global Derivatives" guessing game.  

ODD BLOCK

  • Calls trade in ConocoPhillips (COP)
  • Puts trade in Crestwood Equity Partners LP (CEQP)
  • Calls trade in New Oriental Education & Tech (EDU

MAIL BLOCK

  • Question from Mark Brant - When to close weekly short option positions on expiration friday?  Morning or afternoon? Plus Mark wins the Options Insider Radio Network devoted listener prize for listening to EVERY episode of every program on the network. Very impressive.
  • Question from NJay - OTM options are reasonably priced - should I buy them? 

 


Option Block 421: The Tesla Options Protection Package

Option Block 421: The Tesla Options Protection Package Trading Block: A sea of green on the street today. Tesla having its best day in five months - Back over $200. Oil leaps 5% on tempered Iran view, slower U.S. inventory rise.   Odd Block:...
Posted April 8th, 2015

Option Block 421: The Tesla Options Protection Package

Trading Block: A sea of green on the street today. Tesla having its best day in five months - Back over $200. Oil leaps 5% on tempered Iran view, slower U.S. inventory rise.

 

Odd Block: Calls trade in Market Vectors Oil Services ETF (OIH), calls trade in Outerwall Inc. (OUTR), calls trade in Harley-Davidson Inc. (HOG)

 

 

Strategy Block: When is it ok to take profits early?

 

Mail Block: Question from NYSE Trader - Is it possible for hedge funds to press on options of illiquid stocks to manipulate prices? Can they do that?

 

Around the Block: Alcoa earnings on Wednesday. Last week?s jobs report. Looking at gold and oil. Don?t diddle in the middle.

 

 


Option Block 420: Farewell to the Viceroy

Option Block 420: Farewell to the Viceroy Trading Block: A sea of green in the market today - everything up! Wall Street regulator fears up for labor fight with its workers. High-frequency trading worries are fading, ConvergeX finds. Tesla CEO Elon...
Posted March 31st, 2015

Option Block 420: Farewell to the Viceroy

Trading Block: A sea of green in the market today - everything up! Wall Street regulator fears up for labor fight with its workers. High-frequency trading worries are fading, ConvergeX finds. Tesla CEO Elon Musk teases new product. Spoiler Alert: It is not a car.

 

Odd Block: Puts go flying is Tyson Foods (TSN), calls trade in HCP, Inc. (HCP), and puts trade in Dicks Sporting Goods Inc. (DKS)

 

Strategy Block:  Uncle Mike Tosaw recollects on his first meeting with Alex Jacobson and the subsequent years following.

 

 

 

Xpress Block: The Viceroy tips his hat in a final goodbye.


Option Block 419: The Great Weekly Option Trading Debate

Option Block 419: The Great Weekly Option Trading Debate Trading Block: The market off just a fraction. Call option trades target return of $100 US crude oil. Options traders getting paid following Buffett to Kraft takeover. Odd Block: Calls trade...
Posted March 27th, 2015

Option Block 419: The Great Weekly Option Trading Debate

Trading Block: The market off just a fraction. Call option trades target return of $100 US crude oil. Options traders getting paid following Buffett to Kraft takeover.

Odd Block: Calls trade in EOG Resources Inc. (EOG); puts trading in iShares Emerging Markets ETF (EEM), and; puts trade in Market Vectors Semiconductor ETF (SMH)  

 

Xpress Block: Alex discusses many of the functions in the OX mobile platform.

 

Mail Block: Listener questions and comments

  • Question from Joseph Anthony - I appreciate your input on the following issues. I know that I am not alone in dealing with these questions. I continue to be confused on which weekly strike to choose when trading for a one or two day hold. I realize if issue does not move in my desired direction by Tuesday afternoon I risk theta decay and it increases rapidly as week progresses toward expiry. My thoughts in trading weeklies is to trade the ATM or most liquid on Monday and Tuesday. Trade one strike in the money on Wednesday and Thursday and trade two strikes in the money on Friday. I have read many articles recommending to trade DITM options (+-90) for a close to $1 for $1 effect. But the DITM are often quite illiquid and expensive. My model generates 75%+ success rate in choosing issues that move according to my projections and I choose to use weekly options to trade a small universe (AAPL, AMZN, GOOGL, AND NFLX) but I am still struggling to definitively choose the "right" option. My model is predicated on an immediate move and if it does not transpire in a bar or two I tighten my stop or exit. I am looking to trade naked or use strips and straps in order to implement my models signals. Thank you in advance.

 

  • Question from NJay - What should I be using to value my index options properly, the cash index or the actual underlying futures? Thank you for all your insight.       

 

Around The Block: Earnings today (before the bell): ConAgra Foods, Lululemon Athletica Inc., Accenture, Cosi, Inc. After the Bell: GameStop Corporation.  Friday: BlackBerry Ltd, Carnival Corp.


Option Block 418: Something Has To Work

Option Block 418: Something Has To Work Trading Block: Earnings before the bell today: Geopark (GPRK) Posts Quarterly Earnings Results, Beats Estimates By $0.17 EPS. Earnings after the bell today: Flexion Therapeutics, Concord Medical Services...
Posted March 24th, 2015

Option Block 418: Something Has To Work

Trading Block: Earnings before the bell today: Geopark (GPRK) Posts Quarterly Earnings Results, Beats Estimates By $0.17 EPS. Earnings after the bell today: Flexion Therapeutics, Concord Medical Services Holdings Limited, Vericel Corporation. Senator Warren questions SEC chair on broker reforms. Volcker Outlines Plan for Overhauling Financial Regulation. Oil rises as weakening dollar outweighs OPEC oversupply.

 

 

Odd Block: Put traders in Neustar Inc. (NSR), calls trade in Caesars Entertainment Corp (CZR), and puts trade in ENSCO PLC (ESV) are up .10 to 21.15 today.

 

Xpress Block: Come on in and try out an OX virtual trade account.

 

Strategy Block: It?s tax season - Tosaw discusses regular vs Roth IRAs

 

 

Around the Block: Earnings: A relatively quiet week on the earnings front. Thursday: ConAgra Foods, GameStop, Lululemon. Friday: BlackBerry Ltd, Carnival Corp.


Option Block 417: Big Boy AAPL and Crazy VIX Settlement

Option Block 417: Big Boy AAPL and Crazy VIX Settlement Trading Block: The Dow welcomes Apple. Informed traders prefer options says academic research. Options market sees bottom in gold with urgency on hold at Fed.  Earnings today (before the...
Posted March 20th, 2015

Option Block 417: Big Boy AAPL and Crazy VIX Settlement

Trading Block: The Dow welcomes Apple. Informed traders prefer options says academic research. Options market sees bottom in gold with urgency on hold at Fed.  Earnings today (before the bell): Lennar (LEN); after the bell: Nike.

 

Odd Block: Unusual traders in Sina Corp. (SINA)

 

Xpress Block: Alex discusses covered writing strategies

 

 

Mail Block: Listener questions and comments

  • Question from Mark Brant - Thanks to the crew for a great show and for answering my question! When the cat was away the mice did play! ...@Options Do block trades show up on the retail brokerages position ledgers as volume and OI... AAPL 1M ATR is at the top of its 20yr range so I bot April straddles for way less!
  • Question from Nico - Do I need to understand the Black-Scholes formula to trade options?
  • Question from James Mile - I am currently reading the options books by McMillan and Natenberg (thanks for the great suggestions). The latter chapters of some of these books get pretty deep into the mathematical underpinnings of the options market. I have to wonder if most of the people who are trading these products really understand this stuff. Do you share my concerns that there are potentially millions of people out there slinging calls and puts that really don?t understand how any of this stuff works? Great program. Glad OX/Schwab is a supporter of such fine content.

Option Block 416: Blasting Out Cheap XLE Puts

Option Block 416: Blasting Out Cheap XLE Puts Trading Block: Rally ho on the street! Options traders are starting to pay up for crash protection, according to a recent note from Goldman Sachs. Long-dated crash put protection costs on the [S&P...
Posted March 17th, 2015

Option Block 416: Blasting Out Cheap XLE Puts

Trading Block: Rally ho on the street! Options traders are starting to pay up for crash protection, according to a recent note from Goldman Sachs. Long-dated crash put protection costs on the [S&P 500] have more than doubled over the past 9 months.

 

S&P 500 declines for third straight week as dollar resumes rally. OPEC says low oil prices may hit U.S. output by late 2015.

 

Odd Block: Puts trade in US Silica Holdings Inc. (SLCA), put trade in iShares MSCI Brazil Index (EWZ), and calls trade in Lowes Co. (LOW).

 

Xpress Block: Check out both the Xpresso and Xpound blogs.

 

Strategy Block: Tosaw discusses breaking his rules in a recent put spread trade.

 

Mail Block: Listener questions and comments

  • Question from Rahul Tondulkar - Hey guys I want to know how much minimum open in required to say that the option has liquidity? Can anyone please help me out??
  • Question from Neal Tompkins - How do I know when an option is going to be less liquid? What are some good suggestions for dealing with less liquid options?

Around the Block: Upcoming Earnings: Tuesday ? Oracle; Wednesday - FedEx, Silver Wheaton; Thursday - Nike, Lennar

 


Option Block 415: How to Play the Lottery

Option Block 415: How to Play the Lottery Trading Block: Nasdaq enters energy futures trading to compete with CME, ICE. Lumber Liquidators? stock soars after company offers business update. Shake Shack gets burned: Stock falls 7%. Earnings...
Posted March 13th, 2015

Option Block 415: How to Play the Lottery

Trading Block: Nasdaq enters energy futures trading to compete with CME, ICE. Lumber Liquidators? stock soars after company offers business update. Shake Shack gets burned: Stock falls 7%. Earnings today before the bell Dollar General reported record fourth quarter and full year 2014 financial results. After the bell includes Aeropostale Inc. and ULTA Beauty.   

 

 

Odd Block: Calls go up Steel Dynamics, Inc. (STLD), combos trade in Pinnacle Entertainment, Inc. (PNK), and combos trade in International Business Machines (IBM)

 

Xpress Block: Alex discusses the OX Idea Hub.

 

Strategy Block: Some fun stories about not playing the lottery.

 

Mail Block: Listener questions and comments

  • Question from Mark Brant - Do block trades show up on the retail brokerages position ledgers as volume and OI?
  • Question from Fred - What is the best way to use an option to speculate on the S&Ps intraday movement?

 

Around the Block: Watching the sovereign 10-years, VIX, higher Dow. What about the price of oil? Will the contagion spread? Fed. Fed. Fed. Can we get off the road to nowhere?

 

 


Option Block 414: The Princess Bride Fed

Option Block 414: The Princess Bride Fed Trading Block: A mild day on the street. Earnings after the bell today include: Urban Outfitters and Qihoo 360 Technology. Nymex reports incorrect energy prices. Oil rebounds from early drop on modest Cushing...
Posted March 10th, 2015

Option Block 414: The Princess Bride Fed

Trading Block: A mild day on the street. Earnings after the bell today include: Urban Outfitters and Qihoo 360 Technology. Nymex reports incorrect energy prices. Oil rebounds from early drop on modest Cushing stock build. What will the Apple Watch do to the stock?

 

Odd Block: Puts trade in iShares Dow Jones US Real Estate ETF (IYR); puts trade in CIT BioPharma Corp (CTIC), and; call buyers in Gaming and Leisure Properties (GLPI)

 

 

Xpress Block: The best OX feature: The Walk Limit

Strategy Block: Uncle Mike discusses the importance of timing

 

Mail Block: Listener questions and comments

 

  • Question from IJay - Are a lot of people trading weekly options? If so what are they using them for?

Around the Block: Earnings!

 

  • Tuesday, March 10:  FuelCell Energy,   Barnes & Noble, VeriFone Systems
  • Wednesday, March 11:  Shake Shack, Express, Krispy Kreme Doughnuts, Mens Wearhouse, Vera Bradley, XOMA Corporation
  • Thursday, March 12:  Aeropostale Inc, Dollar General Corp., JA Solar Holdings, Synta Pharmaceuticals, ULTA Beauty

 

 


Option Block 413: When Not To Use Options

Option Block 413: When Not To Use Options Trading Block: A quiet day on the street today. ISE preps third options exchange. Expect more volatility in oil says Exxon CEO. NASDAQ near 5000 amid ECB plans, big pharma deal. Earnings today include:...
Posted March 6th, 2015

Option Block 413: When Not To Use Options

Trading Block: A quiet day on the street today. ISE preps third options exchange. Expect more volatility in oil says Exxon CEO. NASDAQ near 5000 amid ECB plans, big pharma deal. Earnings today include: Costco, Kroger.

 

Odd Block: Calls roll in T-Mobile US Inc. (TMUS), big moves in Canadian Solar Inc. (CSIQ), and OTM puts trade in Inc. yet Corporation (INCY).

 

 

Xpress Block: Alex discusses the OX Virtual Trade Account and Schwab Mobile

 

Mail Block: Listener questions and comments.

  • Question from Alejandro Vergoza - When is it right to use options and when is it right to use the stock instead?
  • Question from Jay - If the market is really falling out of bed what are some good strategies to take advantage of that movement while also minimizing option decay?
  • Question from Fred - Is there a problem in the options market with novice options traders not understanding the risks they are taking? Do you think that will that lead to regulatory action down the road?

 

 

Around the Block: Earnings tomorrow includes Staples. February jobs report comes out on Friday. Can non-farms save the bulls?


Option Block 412: Sneaky Deltas

Option Block 412: Sneaky Deltas Trading Block: Earnings after the bell today: Caesars Entertainment: Late to the party but still a star. Nasdaq hits 5000. Stocks just registered their largest monthly gains in nearly four years. CBOE to expand VIX...
Posted March 3rd, 2015

Option Block 412: Sneaky Deltas

Trading Block: Earnings after the bell today: Caesars Entertainment: Late to the party but still a star. Nasdaq hits 5000. Stocks just registered their largest monthly gains in nearly four years. CBOE to expand VIX options trading hours from Monday. Option activity in Lumber Liquidators. What would the Dow look like if it included Apple?

 

 

Odd Block: Closing and rolling in The Energy Select Sector SPDR (XLE), bullish bets in National Bank of Greece (NBG), and calls trade in Mens Wearhouse (MW)

 

Xpress Block: Alex discusses the Virtual Trade tools

 

Strategy Block: A special Strategy Block from Mark Sebastian about sneaky delta!

 

Mail Block: questions and comments from listeners

Question from Evan J. - Are there fundamental differences between European and Asia options markets versus the American options market?

 

 

Around the Block: Earnings: Tuesday, March 3 - Best Buy, Dick?s Sporting Goods; Wednesday, March 4 - Abercrombie & Fitch, PetSmart, H&R Block; Thursday, March 5 - Costco, Kroger; Friday, March 6 - Staples


Option Block 411: Futures Traders vs. Stock Traders

Option Block 411: Futures Traders vs. Stock Traders Trading Block: Earnings today include: (Before the Bell) Kohl?s, 3d Systems Corp, SeaWorld Entertainment, LifeTime Fitness, Marriott Vacations Worldwide, Magellan Health, Anheuser-Busch...
Posted February 28th, 2015

Option Block 411: Futures Traders vs. Stock Traders

Trading Block: Earnings today include: (Before the Bell) Kohl?s, 3d Systems Corp, SeaWorld Entertainment, LifeTime Fitness, Marriott Vacations Worldwide, Magellan Health, Anheuser-Busch InBev, Sears, Avago Technologies. After the bell:  Gap, JC Penney, Weight Watchers, Crocs, Herbalife. Oil edges higher towards $62, ample supplies still weigh. Apple rains on stock market parade.

 

 

Odd Block: Puts trade in Exelixis, Inc (EXEL), puts trade in SPDR S&P Metals and Mining ETF (XME), and all sellers in iShares MSCI Japan ETF (EWJ)

 

Xpress Block: The Schwab mobile app hits 1 million downloads. Also, its tax season!

 

Mail Block: Listener questions and comments

  • Question from Brian Collamer - Hi Mark, back in October I sent this question and I see you ran with it in a couple of other shows: You mentioned that when selling options the fastest theta decay occurs in the 45-30 day range.  I thought that was only true for ATM options? Do OTM options decay the fastest at 60-70 days and then kind of flatten out? In each show you had asked where I had seen/heard this. LiveVol blog and forum. What do you think? Thanks for the great content! PS: Futures Roundtable needs to be twice a month IMHO.
  • Question from Thomas: Is there an active spread market for options on crude futures? Also do you feel that futures traders make better options traders than stock traders?

 

Around the Block: More earnings: Friday, February 27:  Goodrich Petroleum, Isis Pharmaceuticals


Option Block 409: Talking PCLN, Crude and Pairs Trading

Option Block 409: Talking PCLN, Crude and Pairs Trading Trading Block: There is still no real agreement among Fed officials on rate hike timing. Oil cuts loss as supply hike not as large as anticipated. Earnings today: before the bell: Wal-Mart,...
Posted February 20th, 2015

Option Block 409: Talking PCLN, Crude and Pairs Trading

Trading Block: There is still no real agreement among Fed officials on rate hike timing. Oil cuts loss as supply hike not as large as anticipated. Earnings today: before the bell: Wal-Mart, Priceline Group Inc., T-Mobile; after the bell: Intuit

 

Odd Block: Calls roll in (BWP), calls and puts trading in Microsoft Corp (MSFT), and calls trade in Boston Properties, Inc. (BXP)

 

 

Xpress Block: Alex discusses OX and Schwab mobile trading

 

Mail Block: Listener questions and comments.

  • Comment from Martin - Thank you that you share this precious information on your show for free. A great job. Well done. Martin from Germany.
  • Comment from Kevin Duggan - Hi Mark, Love your shows! Not to be an ingrate for all the great, free info and entertainment but, could you put out your podcast the same day you record it? It is always strange hearing you talk about Thursday?s market after Fridays close. It is not a big deal, more of a first-world problem really, but posting sooner would significantly bump up your cool factor. Thanks.
  • Question from John D. - Hi, Love your show. You guys do a great job. Keep up the good work. My question...If I am looking at a pair trade (e.g. long Facebook, short Twitter), obviously I can do it by buying/shorting the stocks. I was trying to figure out if there is any way to effective do the same thing with options what the advantages might be, if any. I thought of doing a synthetic long/short, but did not see any advantage since I will be naked short an option for both names... but maybe margin treatment is different? Long call on one and log put on the other does not seem to make sense since I am pretty much guaranteed to lose the premium on both those positions. Is there another or better way to structure this type of trade using options? Thanks, John D

 

 

Around the Block: Earnings coming up down the road.


Option Block 408: Juicy Apple Puts

Option Block 408: Juicy Apple Puts Trading Block: Earnings today after the bell:  AIG, Groupon, King Digital Media (Candy Crush). Earnings before the bell today: Avon, McGraw Hill, Kellogg Co. Insuring against Apple blow-up just got a lot more...
Posted February 13th, 2015

Option Block 408: Juicy Apple Puts

Trading Block: Earnings today after the bell:  AIG, Groupon, King Digital Media (Candy Crush). Earnings before the bell today: Avon, McGraw Hill, Kellogg Co. Insuring against Apple blow-up just got a lot more expensive. Tesla shares fall after earnings, despite musk apple comparison. Oil prices rally from sharp losses.

 

 

Odd Block: Call buyers in Domtar Corp (UFS), call buyers on fire in FireEye Inc (FEYE), and put spreads trade in Morgan Stanley (MS)

 

Xpress Block: Alex discusses the OX Help Desk.

 

Mail Block: Listener questions and comments

  • Question from Nick Snow - Hello Mark and other guests. I was wondering if you have ever put together a quick review of other people or newsletters in the industry. For years I have come to options insider because it doesn't spam me, it does not ask for my credit card, and above all I find the information on all shows greatly beneficial. There seem to be so many hacks out there ready to take others money, I think it is time you rate a bunch of other professionals with a simple "Put or Call" rating meaning that company or person is worthless to listen to or actually useful. So of course the options insider would get a call rating from me since it is about the only premium I would be willing to purchase. Thanks again look forward to listening into the future.
  • Question from Tom A Bomb - Distinguished Gentlemen, This is a follow-on to a question I posted a few weeks ago regarding a back-of-the-envelope method to price vertical spreads. Last time, I got a vote of at least 50% crap, and I am really shooting to get the crap content down to around 25%. The panel identified that skew and vol estimates were the weak spots in my method. I am somewhat disappointed on the skew aspect. I do not think there is any quick way to incorporate skew into a calculation on a napkin. So, bummer there? But on to my real question: Some of the panel members speculated I might be getting my vol estimates from delta. Not true. I am not using implied either. In large part, the point of my method is to remove any short-term noise to arrive at a ?stable? or ?normal? estimate. To that end, I will usually match my input vol figure to realized vol of over a comparable period. For example: I want to buy a XYZ 95-100 vert call spread that is 100 days from expiration. 100-day realized vol is currently around 15%. I use that 15% vol input and calculate there is a 30% chance that XYZ will finish above $100 at expiration. Therefore, $5 (width between strikes) x 30% would put the mid-price of the spread around $1.50? Now, I totally understand that historical performance is not an indicator of future yada-yada-yada. The main goal here is to avoid buying when, historically speaking, prices are pumped; or selling when prices are depressed. So, there is my volatility angle. Admittedly, I?m still beat on the skew angle. I will get back to you on that I suppose. Gentlemen, estimates on the crap content...? (Sorry Longo I know this is a long question ? tried 3 times to make is shorter! Please cover this on the Option Block again, if you can! Thanks!)

 

Around the Block: Earnings before the bell today: Avon, McGraw Hill, Kellogg Co.Earnings tomorrow: Time Inc.

 


Option Block 407: Cracking Down on Insider Trading

Option Block 407: Cracking Down on Insider Trading Trading Block: A light day on the market. Oil rallies for third day after OPEC sees greater crude demand. Oil rose for a third straight session on Monday as OPEC forecast greater demand for crude...
Posted February 10th, 2015

Option Block 407: Cracking Down on Insider Trading

Trading Block: A light day on the market. Oil rallies for third day after OPEC sees greater crude demand. Oil rose for a third straight session on Monday as OPEC forecast greater demand for crude this year than previously thought and projected less supply from countries outside the group. Does Germany owe Greece war reparations?  Toys for boys push Hasbro earnings above Wall Street expectations. SEC probes Blackberry options trading ahead of Reuters report about Samsung talks.

 

 

Odd Block: Early put closer in Fidelity National Financial Inc. (FNF), quick call sale in LinnCo LLC (LNCO), and put trader in SPDR S&P Biotech ETF (XBI)

 

Xpress Block: An in depth look at the Trade and Volatility Calculator and other tools from OX.

 

Strategy Block: Uncle Mike talks the virtues of patience, how to be wrong in the right way and factoring in losses.

 

Around The Block: Earnings!

 

  • Tuesday, February 10:  Omnicon, Starwood Hotels & Resorts Worldwide, Molson Coors Brewing, MillerCoors, Dean Foods
  • Wednesday, February 11:  Tesla, Thomson Reuters, Whole Foods Market, Nvidia Corp, AOL Inc, Time Warner, Metlife, Cisco
  • Thursday, February 12:  AIG, Groupon, Avon, McGraw Hill, Kellogg Co.
  • Friday, February 13:  Time Inc.

Option Block 406: Selling Nonsense Apple Puts

Option Block 406: Selling Nonsense Apple Puts Trading Block: Earnings today after the bell: Twitter, Amazon, LinkedIn, Activision. Traders silenced: CME to close most futures trading pits. Open-outcry trading stood no chance, says futures 'father'...
Posted February 6th, 2015

Option Block 406: Selling Nonsense Apple Puts

Trading Block: Earnings today after the bell: Twitter, Amazon, LinkedIn, Activision. Traders silenced: CME to close most futures trading pits. Open-outcry trading stood no chance, says futures 'father' Melamed.

 

 

Odd Block: Upside calls trade in Youku Tudou Inc. (YOKU), put sellers in Apple Inc. (AAPL), and puts trade in Oasis Petroleum Inc. (OAS)

 

Xpress Block: A recap of Idea Hub, Trade and Probability Calculator and All-in-One Trade Ticket.

 

Mail Block: Listener questions and comments

Question from Mark Brant - @Options (14,922 AGNC Mar 22 calls went up in 1 giant block marked buy-write with 360800 shares going up marked derivative.) Where did it "go up" and where was it "marked"? Where are you seeing these trades? Thx!

 

 

Around the Block: Earnings - Before the bell today: ISE, Sprint, Keurig Green Mountain. On Friday, February 6:  CBOE


Option Block 405: Neither Rain nor Snow

Option Block 405: Neither Rain nor Snow Trading Block: Chicago digs out from under the snow. Patriots win! Sorry investors.   Shake Shack shares are getting pummeled. Apple taps bond markets for $5bn. Oil advances on US slowdown...
Posted February 3rd, 2015

Option Block 405: Neither Rain nor Snow

Trading Block: Chicago digs out from under the snow. Patriots win! Sorry investors.

 

Shake Shack shares are getting pummeled. Apple taps bond markets for $5bn. Oil advances on US slowdown hopes.

 

Odd Block: Call spreads in iShares MSCI Brazil Index (EWZ), 3-way in Danaher Corp (DHR), and time spreads trade in Chimerix Inc. (CMRX)

 

Xpress Block: New 2015 OX ads - featuring The Walk Limit, The Trading Probably Calculator, and Idea Hub.

 

Strategy Block: Uncle Mike Tosaw and his current SPY trading strategy

 

 

Around the Block: Earnings after the bell tomorrow (February 3):  Disney; on Wednesday (February 4):  GM & Merck; on Thursday (February 5):  Sprint & Twitter


Option Block 404: Earnings Palooza: GOOG, AAPL, AMZN, BABA, F, and More

Option Block 404: Earnings Palooza: GOOG, AAPL, AMZN, BABA, F, and More Trading Block: Apple crushes it on earnings - Uncle Mike, did this change your bearish sentiment from the last show? Earnings this morning: Ford and Alibaba. Earnings today after...
Posted January 30th, 2015

Option Block 404: Earnings Palooza: GOOG, AAPL, AMZN, BABA, F, and More

Trading Block: Apple crushes it on earnings - Uncle Mike, did this change your bearish sentiment from the last show? Earnings this morning: Ford and Alibaba. Earnings today after the bell: Amazon and Google.

 

Odd Block: Put spreads trade in Assured Guaranty LTD. (AGO), puts roll in Newfield Exploration Co. (NFX), and calls trade in American Eagle Outfitters (AEO)

 

Xpress Block: A ton of volume in AAPL, AMZN and BABA - not much time for anything after B.

Mail Block: Listener questions and comments

  • Question from Ernatine14 - If vol was not high enough to be sold in Apple, then is it low enough to be bought in Google? Is it priced this way for a reason or is the options market clearly wrong?
  • Question from Rohan - Do you think it?s viable for an active retail trader to become a professional retail trader using primarily the freely available tools from OX and other retail brokers? How viable is that in the current environment? Would I always be at a disadvantage from the pros picking me off? Is this just a pipe dream? How much would you say the average pro trader needs to make to be viable? Thanks again for all the great programs you guys have put out for free. Congratulations for making it all the way to 400, and thanks to OX for making the whole dance happen.

 

 

Around the Block: Updates on Google and Amazon.


Option Block 403: Frozen Dolls and Apple Puts

Option Block 403: Frozen Dolls and Apple Puts Trading Block: Not much movement in the market today. Greek elections had little to no effect. Earnings after the bell today: MSFT. Mattel: Barbie being crushed by Frozen, CEO stepping down.   Odd...
Posted January 27th, 2015

Option Block 403: Frozen Dolls and Apple Puts

Trading Block: Not much movement in the market today. Greek elections had little to no effect. Earnings after the bell today: MSFT. Mattel: Barbie being crushed by Frozen, CEO stepping down.

 

Odd Block: Puts seller trade in United States Oil Fund LP (USO), put blocks trade in NextEra Energy Inc. (NEE), possible OTM put sellers in Micron Technology (MU)

 

 

Xpress Block: Alex discusses the walk limit and the all in one trade ticket features on the OX website.

 

 

Strategy Block: Uncle Mike talks about his most recent strategy in everyone?s favorite fruit company - Apple.

 

 

Around the Block: Update on MSFT earnings. Tomorrow: AAPL, YHOO. Boeing, FB - 1/28, AMZN, GOOG - 1/29


Option Block 402: Yield Hunters Out In Force

Option Block 402: Yield Hunters Out In Force   Trading Block: A sea of green across the board today. After the bell today:  Starbucks - Time to get your Starbucks (stock) again? - ATM straddle approx. $1.70     Odd Block:...
Posted January 23rd, 2015

Option Block 402: Yield Hunters Out In Force

 

Trading Block: A sea of green across the board today. After the bell today:  Starbucks - Time to get your Starbucks (stock) again? - ATM straddle approx. $1.70

 

 

Odd Block: Calls trade in W&T Offshore, Inc. (WTI), Put buyers in Nielsen Holdings NV (NLSN), and Calls trade in KB Home (KBH)

 

 

Xpress Block: Alex discusses the FX markets and also the covered write tool in the Idea Hub

 

Mail Block: Questions from our listeners.

Question from Tom A Bomb - Fine-hatted Gentlemen, A question for the Option Block regarding verticals:  First, you all rock. Best show on the network! Thank you OX.  I have been trading high-leverage verticals for a while now and I am looking for a quick way to price em. I place emphasis on quick. I.e. Without running a model on the individual legs.  I have taken (rightly or wrongly) to using the probability of a finish beyond the short strike multiplied by the width of the spread.  For example, XYZ has a 30% chance of finishing above $50 by expiration. I am long a 45/50 call spread. So, at 30% times 5, I would expect the mid-price to be around $1.5 for the spread.  On balance, this method seems to under-price positive delta, and often significantly over-price negative delta.  Is this method complete crap? Any suggestions?

 

 

Around the Block: Lots of earnings around the corner. 


Option Block 401: Apple vs. Swiss Franc

Option Block 401: Apple vs. Swiss Franc Trading Block: Switzerland stuns markets by giving up on currency peg. Big moves in gold. The Tesla free fall: Elon Musk now $2.8B poorer. US stocks head lower; crude oil price falls again. Intel moving up...
Posted January 16th, 2015

Option Block 401: Apple vs. Swiss Franc

Trading Block: Switzerland stuns markets by giving up on currency peg. Big moves in gold. The Tesla free fall: Elon Musk now $2.8B poorer. US stocks head lower; crude oil price falls again. Intel moving up again.

 

 

Odd Block: Puts go up in Taiwan Semiconductor Mfg (TSM), calls roll in WeyerHaeuser Co. (WY), and size call buyer in Brisol-Meyers Squibb Co. (BMY)

 

Startegy Block: Uncle Mike discusses long SPY positions

 

Mail Block: Listener questions

 

Question from Faye Cuzername - On 10/24 I bought 2 Dec 305/315/325 call fly in AMZN for $0.91. Stock moved through the fly so today (11/14) when AMZN @ 326, I sold it for $1.50. A whopping $.55/ contract after commissions. What adjustments should I have considered with the fly since I do not see AMZN retracing during the Christmas season? Note that I have a 9-5 so I am not watching the screen all day if that affects what you suggest. 


Option Block 400th Episode Spectacular

Option Block 400th Episode Spectacular Our favorite episodes, listener questions and memories from 400 episodes of the Option Block.   Listener Mail Palooza: Question from Charles B - Great show guys. Congrats on your continued success. I...
Posted January 13th, 2015

Option Block 400th Episode Spectacular

Our favorite episodes, listener questions and memories from 400 episodes of the Option Block.

 

Listener Mail Palooza:

  • Question from Charles B - Great show guys. Congrats on your continued success. I recently stopped trading options on Google and PCLN because the spreads were just too wide. Why do the market makers do this? Is it not in their best interest to provide an incentive for traders like me to actually trade the product? If I cannot afford the spread then everyone loses.
  • Question from S Davis - Love all your UA shows on the network including Oddities and the Odd Block on The Option Block. I find this stuff endlessly fascinating. I wonder if you could clear up an issue for me. I do not really understand the rules about insiders and options. I know that an ?insider? cannot just sell his stock before a non-public event without a great deal of disclosure. But what are the rules regarding options? Is buying a put considered analogous to selling the stock from a disclosure perspective? Is it illegal for an insider to buy puts ahead of a material non-public event? Thanks for clearing up this very basic question and for creating such great programs.
  • Question from Alan Pinkman - Hello Mark along with the Viceroy, Uncle, Lobster and Meatball. I know many of you came from a market making background. But I also note that all of you are ?former? market makers. What was it that prompted your exit from the business? Do you think it is even worth exploring that as a career path any longer or is options market making pretty much done as a career these days? 

 

Looking ahead to future episodes: What would you guys like to see on the show in future episode?


Option Block 399: The Gamma Rage Monster

Option Block 399: The Gamma Rage Monster Trading Block: A reversal of the selloff we saw earlier this week. Big Apple numbers. S&P 500 erases 2015 loss, euro weakens on stimulus bets     Odd Block: Puts trade in iPath S&P 500...
Posted January 9th, 2015

Option Block 399: The Gamma Rage Monster

Trading Block: A reversal of the selloff we saw earlier this week. Big Apple numbers. S&P 500 erases 2015 loss, euro weakens on stimulus bets

 

 

Odd Block: Puts trade in iPath S&P 500 Short Term VIX ETN (VXX), calls go up in Brunswick Corp. (BC), and puts roll in Vanguard Emerging Markets ETF (VWO)

 

Xpress Block: What was the most notable change in the business in 2014? And what will that mean for 2015?

 

Mail Block: Listener Questions & Comments

  • Question from Neil Joyce - Hello Option Block crew. It is that time of year. I have some stocks I want to take gains in for 2014, but I do not want to sit on the sidelines for the mandatory 30 days before I get back in. What if I buy a one-month call to cover the wash sale period, then buy the stock again on day 31? Is that legit from an IRS perspective, or does buying the call effectively make the stock trade a wash sale? Great show! Look forward to more fun in the New Year.
  • Question from Joseph G: [email protected] Gamma? Are them those rays that turned Dr. Bruce Banner into the Hulk? lol...Seriously - can you sum up what I need to be concerned about with gamma when selling weekly put options? Mostly OTM with 4-7 days to expiration.
  • Question from Mark Brant:  @Options AAPL front-week trend trade: Near Mon. close buy the C/P reflecting the day's direction, and TP near Fri. close. +ev over a year.

 

Around the Block: Employment numbers out Friday.


Option Block 398: Getting Burned By Deltas

Option Block 398: Getting Burned By Deltas Trading Block: A selloff of the market today. Facebook options turning bearish on 2015 after 195% rally. Crude oil falls below $50 a barrel for the first time in 5 1/2 years. OCC announces cleared contract...
Posted January 6th, 2015

Option Block 398: Getting Burned By Deltas

Trading Block: A selloff of the market today. Facebook options turning bearish on 2015 after 195% rally. Crude oil falls below $50 a barrel for the first time in 5 1/2 years. OCC announces cleared contract volume up 4% in 2014 and a record year for cleared futures volume.

 

Odd Block: Calls trade in iShares MSCI Italy Index (EWI), opening call buyers in Lifelock Inc. (LOCK), and puts roll in Lumber Liquidators Holdings (LL)

 

Strategy Block: Mike Tosaw discusses his current strategies with the S&P 500 and SPY.

 

 

 

Around the Block: What can we expect for 2015?


Option Block 397: 2014 Year in Review

Option Block 397: 2014 Year in Review Trading Block: Looking Back at 2014 The crash in the price of oil. The potential for Apple to move. GDP growth at 5% in the US. The 10-year trading about 100 basis points below expectations. Changes in...
Posted December 30th, 2014

Option Block 397: 2014 Year in Review

Trading Block: Looking Back at 2014

  • The crash in the price of oil.
  • The potential for Apple to move.
  • GDP growth at 5% in the US.
  • The 10-year trading about 100 basis points below expectations.
  • Changes in portfolio margin.
  • VIX becoming more and more mainstream.
  • The Ukrainian crisis of Q1/Q2.
  • The October volatility.
  • Continuing consolidation in the brokerage community.
  • How about the speed of the VIX spikes?  
  • Despite "low" VIX options, volume still strong in 2014.

Around The Block: What strategies should work well in 2015 depending on market conditions? What to keep in mind for 2015?


Option Block 396: The Most Epic Strategy Block Ever

Option Block 396: The Most Epic Strategy Block Ever Trading Block: A shortened holiday week, so not much is moving on the street. Upside move in Taser. Facebook and Amazon.   Odd Block: Calls trade in Cobalt International Energy (CIE), opening...
Posted December 24th, 2014

Option Block 396: The Most Epic Strategy Block Ever

Trading Block: A shortened holiday week, so not much is moving on the street. Upside move in Taser. Facebook and Amazon.

 

Odd Block: Calls trade in Cobalt International Energy (CIE), opening calls trade in U.S. Bancorp (USB), and calls going up in Alibaba Holding Group Ltd (BABA).

 

 

Xpress Block: Another new tool is being rolled out by OX - IRIS.

 

Strategy Block: In the spirit of the season, Uncle Mike presents The Twelve Rules of Options Trading!

 

 

Around the Block: Have a wonderful holiday week everyone!


Volatility Views 140: It All Starts with Onion Volatility

Volatility Views 140: It All Starts with Onion Volatility Volatility Review: The week in vol VIX Cash: High - 25.2, Low - 16.07. S&P: 10 day HVOL - 22, 30 day HVOL - 13, Skew Index - 126.4, at the low end of the chart for the past three...
Posted December 22nd, 2014

Volatility Views 140: It All Starts with Onion Volatility

Volatility Review: The week in vol

  • VIX Cash: High - 25.2, Low - 16.07. S&P: 10 day HVOL - 22, 30 day HVOL - 13, Skew Index - 126.4, at the low end of the chart for the past three months.
  • VVIX: High - 141.22, Low - 109.4, nearly doubled over the past two weeks.
  • VIX Options: Total 4.29m (2.97m Calls, 1.32m Puts), only one day over 1M contracts this week despite significant market movement.
  • VXST: High - 25.47, Low - 14.06, another week of anemic volume.
  • RVX: 227 contracts OI, still no appreciable volume.
  • Oil: Another crazy week for oil - a pronounced selloff followed by a dramatic rally that triggered circuit breakers on ice. 2-3 month vol hovering between 38-50, depending on the product. Putin tell the world to "get ready of $40 oil". Oil slump blindsided bulls that wagered on rout ending.

Volatility Voicemail: Listener questions and comments

  • Question from Vic Taylor - What is the problem with OVX? USO trades a ton of options, yet OVX averages 100 contracts on a good day. I am looking for a good way to add some oil volatility to my portfolio. Since OVX is DOA, are there other dedicated oil volatility products out there that actually trade? Maybe something listed on the WTI or Brent contracts? Cool show. Love all the commodity focus you have added in recent months.
  • Question from Jim Andrade - I know you have mentioned bullish risk reversals in CL as potential ways to play a bullish bet in crude. I have been a little slow pulling the trigger. Is the environment still favorable for this type of trade in CL? I'd consider Brent as well if that is more suitable. In case you cannot tell, I am a bit of an oil bull, but I've been waiting for the worm to turn. I think we may have finally hit that point. What about an iron fly, where I buy ATM sell 5% OTM? Would that be preferable from a volatility skew perspective? Maybe I should throw in a time value of money question also. I like it when Jared gets worked up over futures term structure and roll yield.
  • Comment from Mark Brant - The sum of new Friday weekly SPY and VXX ATM calls is lower than each?s range, so bought both calls! 52-wk. +ev?

Option Block 395: Janet Yellen vs. Farrah Fawcett

Option Block 395: Janet Yellen vs. Farrah Fawcett Trading Block: A very aggressive day on the street. The market is off to the races - up nearly 2% in the session today. Brent triggers a circuit breaker - to the upside? U.S. stocks lead global...
Posted December 19th, 2014

Option Block 395: Janet Yellen vs. Farrah Fawcett

Trading Block: A very aggressive day on the street. The market is off to the races - up nearly 2% in the session today. Brent triggers a circuit breaker - to the upside? U.S. stocks lead global equities rally on Fed rate policy.

Odd Block: Upside calls trade in ProShares Ultra DJ-UBS Crude Oil (UCO), puts trade in Mylan Inc (MYL), calls trade in Quicksilver Inc. (ZQK), and puts trade in Noble Corp. (NE)

 

Xpress Block: A review of some of the milestones at OX this year. Also, this is the time to start thinking about taxes.

 

Mail Block: Listener questions and comments

  • Question from Evatar - I would like to know if a surprise rate increase by the Fed in the near term would make rho a more useful or necessary greek going forward?
  • Question from Jack - Hi guys. I had 17 BLMN Jan 2015 $20 call contracts. BLMN was (as of 12/17/2014 during the final trading hour) trading in a range between $23.44 and $23.54. The spread on the calls was $3.00-$3.60. It had been $3.00-$3.80, but my order to sell at $3.60 moved the ask, but then sat there doing nothing for almost a half hour. This is my question. Even with BLMN in the $23.52-$23.54 area, I could not sell out of these calls at $3.60, with over a month left to expiration. That is unusual in my experience. Is it just that options on this stock have a crazy low volume? Note: at about 15:50, BLMN jumped to $23.64 and my sell order filled before I could cancel and re-enter it at a higher price. I am still surprised that there was no apparent real, sellable time value left in these calls.
  • Tweet from @MarkBrant1KM - Committed to absorbing the entire archive on the app, learning a lot! Thx!
  • Question from Ricky - I would like to know about trading on index with option.

 

 

Around the Block: Will the market finally slow down and the VIX back off? Or, will there be a lot of activity in volatility? The all-stars discuss.


Option Block 394: Oil Speculators Get Burned

Option Block 394: Oil Speculators Get Burned Trading Block: Oil and oil related issues are still dominating trading - crude taking it on the chin. Brent and WTI hovering at crazy ranges. Most recent CFTC data shows increased net long positions. VIX,...
Posted December 16th, 2014

Option Block 394: Oil Speculators Get Burned

Trading Block: Oil and oil related issues are still dominating trading - crude taking it on the chin. Brent and WTI hovering at crazy ranges. Most recent CFTC data shows increased net long positions. VIX, VXST and VVIX

 

 

Odd Block: Golar LNG Limited (GLNG), AGCO Corporation (AGCO), and Neptune Technologies & Bioressources-Ord (NEPT)

 

Xpress Block: A look at one of the coolest tools OX offers - The Walk Limit.

 

Mail Block: Listener questions and comments.

Question from Josh B - What is your favorite product to use for an options play on oil?

Question from Elian04 - I think we got a bounce coming in crude back to the 75 handle in the next month or two. Best bets?

 

 

Around the Block: Earnings this week: Blackberry and Nike. Fed coming up this week. 


Option Block 393: Oil, LULU, Swaps, and More

Option Block 393: Oil, LULU, Swaps, and More Trading Block: A mild day on the street. Swap Talk: Why are people fighting over Dodd-Frank and derivatives? Traders hedge oil ETF while energy stocks lure buyers. U.S. oil prices drop below...
Posted December 12th, 2014

Option Block 393: Oil, LULU, Swaps, and More

Trading Block: A mild day on the street. Swap Talk: Why are people fighting over Dodd-Frank and derivatives? Traders hedge oil ETF while energy stocks lure buyers. U.S. oil prices drop below $60

 

 

Odd Block: Bullish calls trade in Dex Media Inc., synthetic covered calls trade in Sandridge Energy (SD), and looking for a rebound in Whiting Petroleum Corp (WLL)

 

Xpress Block: Lululemon earnings and futures volume.

 

Mail Block: Question from Nico Bellic - There are many options exchanges in the U.S. all trading the same products. How does this affect the way options trade in the U.S.? Is this more of a problem or a benefit to options traders? Anything I need to be aware of there?

 

 

Around the Block: OptionsXpress Workshop - Boca Raton - 12/13/2014


Option Block 392: The Great Broken Wing Butterfly Debate

Option Block 392: The Great Broken Wing Butterfly Debate Trading Block: A mild day on the street. Oil futures slide on Saudi price cut to U.S. VIX shunned as few bumps seen for S&P 500 at years end.     Odd Block: Call rolls in Opko...
Posted December 5th, 2014

Option Block 392: The Great Broken Wing Butterfly Debate

Trading Block: A mild day on the street. Oil futures slide on Saudi price cut to U.S. VIX shunned as few bumps seen for S&P 500 at years end.

 

 

Odd Block: Call rolls in Opko Health Inc. (OPK), calls trade in Avago Technologies (AVGO), and calls trade in Adobe Systems Incorporated (ADBE).

 

Xpress Block: Insight into oil and gas. The Xpresso newsletter.

Mail Block: Listener questions and comments

 

  • Question from Anthony Fields - I was just reading through a book (I will not name them here to give them a free plug) that blamed the crash in 2008 on derivatives. What is your take on stuff like that? Drive you crazy or is there some truth?
  • Question from Milano Fan - Hello to all members of the all-star panel including but not limited to uncle mike, the viceroy, the rock lobster, the greasy meatball and the mighty host himself. I am working my way through the back catalog of episodes. I am somewhere around episode 250. I have a lengthy commute and probably a few flights a week so I should burn through the rest in a couple of months. I have heard a number of panelists mention a strategy called a broken wing butterfly on multiple episodes. I am a little confused about this. What exactly is it? Is there a standard construction for this type of strategy or is it more of a number of similar strategies being lumped under the broken wing umbrella? Hope you guys can answer this. It would be hilarious to hear my letter read on the mail block. Last - I am planning a trip to Chicago early next year. Which pizza place should I hit? I know you guys treat pizza like religion in Chicago. Happy trading. 

Option Block 391: Crude Oil Madness

Option Block 391: Crude Oil Madness Trading Block: A bloodbath in the tech and commodities sectors. Mini Apple crash catches the market off-guard. Energy and oil had their own crash on Friday. The Options Industry Council (OIC) announced today that...
Posted December 2nd, 2014

Option Block 391: Crude Oil Madness

Trading Block: A bloodbath in the tech and commodities sectors. Mini Apple crash catches the market off-guard. Energy and oil had their own crash on Friday. The Options Industry Council (OIC) announced today that 294,770,356 options contracts traded in November, down 6.26 percent compared to last November.

 

 

Odd Block: Puts trade in Marathon Oil Corp. (MRO), calls trade in Bristol-Myers Squibb Co (BMY), and call ratios trade in Barnes and Noble Inc (BKS)

 

Xpress Block: Energy alternatives and futures options

Strategy Block: Tosaw discusses diagonal risk reversals

 

 

 

Around the Block: Keeping an eye on crude and Apple


Option Block 390: Squeezing Out the Vol

Option Block 390: Squeezing Out the Vol Trading Block: Short holiday week - When might the market come out? Answer: Monday! Implied Vol in the basement. VIX crushed.  Odd Block: Calls trade in TIVO Inc. (TIVO), size calls trade in Demand Media...
Posted November 25th, 2014

Option Block 390: Squeezing Out the Vol

Trading Block: Short holiday week - When might the market come out? Answer: Monday! Implied Vol in the basement. VIX crushed. 

Odd Block: Calls trade in TIVO Inc. (TIVO), size calls trade in Demand Media Inc (DMD), and calls trade in Tiffany and Co. (TIF)

Xpress Block: With the Viceroy out with the flu, we will play the Trading Patterns guessing game. 

Strategy Block: Uncle Mike Tosaw discusses hedging using futures. 

 

Around the Block:Only Option Block of this week.


Option Block 389: Fly Adjustments and Dividends

Option Block 389: Fly Adjustments and Dividends Trading Block: A mild day on the street. Best Buy profit beats estimates as costs fall. Fresh SEC crackdown on ?flash crashes.? Correlation gauge for S&P 500 falls at fastest rate...
Posted November 21st, 2014

Option Block 389: Fly Adjustments and Dividends

Trading Block: A mild day on the street. Best Buy profit beats estimates as costs fall. Fresh SEC crackdown on ?flash crashes.? Correlation gauge for S&P 500 falls at fastest rate ever.

 

 

Odd Block: Upside call buyers in Axiall Corp. (AXLL), put roll in Stillwater Mining Company (SWC), and calls roll in Huntsman Corp (HUN)

 

Xpress Block: Behind the scenes at Schwab featuring the roll ticket.

 

Mail Block: Listener questions and comments

Question from Faye Cuzername - Thanks for the feedback on my Goldman trades by the way. It worked ok but I think I understand what I should have done. Got a new one for you. Bought an 11/7 weekly SPX fly 2010/2030/2050 for 6.80 on 11/5. The fly did not really move in value until Friday, even though SPX was slowly moving to short strike. Trade did everything I wanted but I thought I would be able to capture more profit on Thursday. What did I miss or am I just being greedy?

Question from Cuda6 - What is an easy way to spot an upcoming dividend using options? Thanks.

 

 

Around the Block: Presidential speech on immigration tonight. Crude and the 10-year.


Option Block 388: Japanese Volatility

Option Block 388: Japanese Volatility Trading Block: U.S. stocks open lower as Japanese recession weighs. American markets poised for a pullback after four straight weeks of gains. Japan shocks as economy slips into recession. Cracks widen at OPEC as...
Posted November 18th, 2014

Option Block 388: Japanese Volatility

Trading Block: U.S. stocks open lower as Japanese recession weighs. American markets poised for a pullback after four straight weeks of gains. Japan shocks as economy slips into recession. Cracks widen at OPEC as oil prices tumble.

 

 

Odd Block: Size combo in Standard and Poor?s 500 Index (SPX), puts trade in iShares MSCI Japan (EWJ), call traders in Buckeye Partners, LP (BPL)

 

Xpress Block: Today was stock pickers day. OX named one of the top 100 places to work by the Chicago Tribune.

 

Strategy Block: Uncle Mike talks about the importance of doing stuff, BUT also the importance of not doing stuff

 

 

Around the Block: Keeping an eye on the unease in Japan, especially with regard to forex, the Yen and the Euro in particular, and debt instruments. VIX indicates a lot of concern in the market. Will OPEC hold the 70-level? Premium sellers aren?t there right now.


Option Block 387: Crude Oil Put Palooza

Option Block 387: Crude Oil Put Palooza Trading Block: Gold struggles to find buyers in third quarter. Lower oil prices give a lift to the American economy. Buffett to trade P&G stock to buy Duracell.     Odd Block: Calls trade in...
Posted November 14th, 2014

Option Block 387: Crude Oil Put Palooza

Trading Block: Gold struggles to find buyers in third quarter. Lower oil prices give a lift to the American economy. Buffett to trade P&G stock to buy Duracell.

 

 

Odd Block: Calls trade in Cyberark Software LTD (CYBR), calls trade in Demand Media Inc. (DMD), call ratios trade in Charter Communications, Inc. (CHTR)

 

Xpress Block: Amazon and Apple hit near-term highs.

 

Mail Block: Listener questions and comments

  • Question from DJSpin - What is your best play for a Santa Claus rally in SPY?
  • Question from Eliac - Which OTM call strike performs the best when the underlying rallies?

 

 

Around the Block: Looking at crude and the 10-year. What will the bottom be in crude? More all-time highs in AAPL. Will it be a happy Christmas for holders of AAPL?


Option Block 386: Massive GLD Adjustment Breakdown

Option Block 386: Massive GLD Adjustment Breakdown Trading Block: U.S. stocks move higher again. Twitter shares could move 5 percent in either direction by Friday. BABA soars in China ahead of "Singles Day"   Odd Block: Large buy writes go up...
Posted November 11th, 2014

Option Block 386: Massive GLD Adjustment Breakdown

Trading Block: U.S. stocks move higher again. Twitter shares could move 5 percent in either direction by Friday. BABA soars in China ahead of "Singles Day"

 

Odd Block: Large buy writes go up in Wal-Mart Stores (WMT), call buyers in Lions Gate Entertainment (LGF), and call sweeps in Hovnanian Enterprises, Inc. (HOV).

 

Xpress Block: Alex discusses preparing for tax season

 

Strategy Block: Uncle Mike Tosaw and GLD

 

Around the Block: CSCO earnings 11/12 - after. Schwab to host live interactive trader education day on 11/13. 

 


Option Block 385: Theta Decay

Option Block 385: Theta Decay Trading Block: Business welcomes midterm GOP takeover, what can the market hope for from the GOP congress? U.S. stocks mixed as investors? eye oil prices. Euro falls to two-year low after Draghi signals more ECB...
Posted November 7th, 2014

Option Block 385: Theta Decay

Trading Block: Business welcomes midterm GOP takeover, what can the market hope for from the GOP congress? U.S. stocks mixed as investors? eye oil prices. Euro falls to two-year low after Draghi signals more ECB action. Tesla shares rallying after earnings.

 

 

Odd Block: Giant call traders in SPDR S&P Oil and Gas Explorers (XOP), puts trade in Geron Corp. (GERN), and large calls trade in Education Management Corp (EDMC)

 

Xpress Block: Alex discusses the methodology behind premium harvesting and the IdeaHub.

 

Mail Block: Listener questions and comments
Question from Mukund Ambarge - Hi Team, I had a question on theta decay. I understand that delta is in constant flux with every tick move in stock, the delta/gamma changes. IV is in constant flux with buying and selling of options and volume etc. So Vega changes with option transactions. But theta decay is the only one which is always in a steady pace i.e. it?s not like it will decay quickly today and slowly tomorrow. The question is, when the theta decay is really adjusted in the prices of options. Do the theta decay get adjusted at every tick move - or every hour? If it is adjusted daily. Then when is the theta decay taken out of options. Early morning before start of trading? Or late in the day like last few minutes that whole days theta is taken out? Also I do not know when is weekend theta taken out of prices? Friday early morning or Friday ending or middle of the day? Basically when does market maker run the prices with the model and set the prices? Only once before trading starts or does he keep adjusting every minute/hour/tick based on demand/supply?

 

 

Around the Block: Where?s OX this week? Option Pit is hosting ?Using Options to Trade Direction.?


Option Block 384: BABA Preview and Ratio Spread Breakdown

Option Block 384: BABA Preview and Ratio Spread Breakdown Trading Block: A mild day on the street. The bloodbath in crude continues - closing down on the day. Alibaba now worth more than Wal-Mart. Apple iWatch to be delayed - not affecting AAPL on...
Posted November 4th, 2014

Option Block 384: BABA Preview and Ratio Spread Breakdown

Trading Block: A mild day on the street. The bloodbath in crude continues - closing down on the day. Alibaba now worth more than Wal-Mart. Apple iWatch to be delayed - not affecting AAPL on the day.

 

 

Odd Block: Calls trade in CBS Corp. (CBS), puts trade in Gerdau SA (GGB), and giant call buyer in Autodesk (ADSK).

 

Xpress Block: Amazon, declining oil and other conversation topics from OX social.

 

Strategy Block: Uncle Mike Tosaw discusses the ratio spread strategy in combination with stock.

 

 

Around the Block: Non-Farms on Friday. BABA before the bell. ATVI - 11/4, DIS - 11/6 after, PCLN - 11/4 before, TSLA - 11/5 after.


Option Block 383: The Crazy VIX

Option Block 383: The Crazy VIX Trading Block: Starbucks and LinkedIn earnings after the bell. SEC warned before about early release weak spot. U.S. stocks fall amid GDP, jobless data; Visa boosts Dow. Odd Block: Calls trade in Generac Holdings Inc....
Posted October 31st, 2014

Option Block 383: The Crazy VIX

Trading Block: Starbucks and LinkedIn earnings after the bell. SEC warned before about early release weak spot. U.S. stocks fall amid GDP, jobless data; Visa boosts Dow.

Odd Block: Calls trade in Generac Holdings Inc. (GNRC), size buy writes go up in Itau Unibanco Holdings Inc. (ITUB), and call selling in SPDR S&P 500 ETF Trust (SPY)

Xpress Block: Now introducing a light version of premium harvesting for Schwab mobile

 

Around the Block: Loads of earnings on the horizon. CBOE tomorrow before the bell. Tesla 11/5.


Option Block 382: TWTR Drops and the Viceroy Returns

Option Block 382: TWTR Drops and the Viceroy Returns Trading Block: A mild back on the street today. The return of the Viceroy! Twitter options pricing in big stock move - earnings after the bell. Odd Block: Combos trade in Gentherm Inc. (THRM), put...
Posted October 28th, 2014

Option Block 382: TWTR Drops and the Viceroy Returns

Trading Block: A mild back on the street today. The return of the Viceroy! Twitter options pricing in big stock move - earnings after the bell.

Odd Block: Combos trade in Gentherm Inc. (THRM), put spreads trade in Altisource Portfolio Solutions (ASPS), and calls trade in Alaska Air Group, Inc. (ALK)

Xpress Block: Alex is back!!! Three- and four-leg spread trades are now available on the OX trading platform

 

Strategy Block: Uncle Mike Tosaw discusses tweaking diagonal spreads

Mail Block: Listener questions and comments

Question from Richard D: Hey Options Insider Team! I cannot seem to figure out how to post comments under the individual shows, so I will use this route. Below I have 3 questions that hopefully you can read on Volatility Views or Option Block. I am wondering what the key reports are that affect the Agricultural future options (corn, soy, wheat . . .) and where I can get more info and track these reports? Also, do options on these ags typically behave the same way equity options behave leading up an earnings report? Finally, what are the most liquid futures options besides gold, silver, and oil? I do not typically listen to the Futures Roundtable because the episodes I have listened to are too deep for my level of knowledge. Thank you for all of your great work! The network is a fantastic resource.

 

Around the Block: Earnings tomorrow FB and EA.


Option Block 381: AMZN Sinks while MSFT Soars

Option Block 381: AMZN Sinks while MSFT Soars Trading Block: A mild day on the street.  Stocks rally after 3M, Caterpillar profits beat estimates. Exclusive: U.S. stock options markets agree to need for trading halts on big moves. Earnings...
Posted October 24th, 2014

Option Block 381: AMZN Sinks while MSFT Soars

Trading Block: A mild day on the street.  Stocks rally after 3M, Caterpillar profits beat estimates. Exclusive: U.S. stock options markets agree to need for trading halts on big moves. Earnings Report.

 

Odd Block: Puts trade Cisco Systems, Inc. (CSCO), calls trade in ZIOPHARM Oncology Inc. (ZIOP), and buy-write trades in SPDR S&P Metals and Mining ETF (XME)

 

Xpress Block: It?s time once again for the Trading Patterns guessing game!

 

Mail Block: Listener Questions and Comments

  • Question from George Orsos - Dear Sir or Madam, I would like to ask you to inform me about the cash account. I heard that a trader, who has cash account, can trade unlimited number of day trade even if his or her fund is bellow $25 000. Is it correct? I look forward to your response.
  • Question from Tony - Mark, love the show. I was lucky enough to have a fairly significant weekly put spread position in DIA this week (long puts at 166-167 and short at 161-162.5). I was making good money on Wednesday and ran into a problem. The bid ask spread on my long puts were so wide, I could not close out, roll or adjust the trade. I thought about buying futures contracts to hedge my delta risk and suck out the theta. Is there any other strategy to adjust or hedge a successful trade without getting haircut on the executions? Should I just calculate the extrinsic value add a spread and put in a limit order for the long leg? Is it always harder to close out a spread trade in a volatile market...i.e. if i want to close a spread trade does one person have to want to enter the same trade? Or can the trade go to two counter parties?

 

 

Around the Block: More earnings around the corner. 


Option Block 380: Apple Bores Us to Tears

Option Block 380: Apple Bores Us to Tears Trading Block: Apple earnings rundown: weekly straddle at approx. $4.40 going into earnings. Upside in the stealth Apple: CMG.   Odd Block: Buy write trades in Digital Realty Trust, Inc.  (DLR),...
Posted October 21st, 2014

Option Block 380: Apple Bores Us to Tears

Trading Block: Apple earnings rundown: weekly straddle at approx. $4.40 going into earnings. Upside in the stealth Apple: CMG.

 

Odd Block: Buy write trades in Digital Realty Trust, Inc.  (DLR), calls trade in Yahoo! Inc. (YHOO), and combos trade in iShares MSCI Brazil Index (EWZ).

 

Strategy Block: Uncle Mike Tosaw discusses the benefits of long premium

 

 

Xpress Block: It?s time once again for the Trading Patterns guessing game.

 

Around the Block: Watching the grass grow in Apple. Plenty of other earnings on the horizon.

 

 


Option Block 379: Explosion of VIX Stupidity

Option Block 379: Explosion of VIX Stupidity Trading Block: Rocktober in full effect - hot on the heels of the madness yesterday, we saw another day with record swings and volume. Can nothing derail the bulls? NFLX earnings apocalypse? HBO Go...
Posted October 17th, 2014

Option Block 379: Explosion of VIX Stupidity

Trading Block: Rocktober in full effect - hot on the heels of the madness yesterday, we saw another day with record swings and volume. Can nothing derail the bulls? NFLX earnings apocalypse? HBO Go spooking people?

Odd Block: Combo unwind in iShares iBoxx $ High Yield ETF (HYG), puts close in Global X FTSE Greece 20 ETF (GREK), and collar closing in Yingli Green Energy Holding (YGE)

 

Xpress Block: With the Viceroy still out, we will play the Trading Patterns Guessing Game in his absence.

Mail Block: Listener questions and comments

  • Question from Ajax11 - What is your take on the big VIX pop yesterday? Over 30 a bit overdone? Time to short some VIX here? Maybe time for a new term - Ebola premium?
  •  Question from Ian Taylor - We always hear about buying VIX calls or verticals during big spikes. How come no one ever talks about selling VIX puts or put spreads instead? Should they not also perform well under that situation?
  • Question from Fargo Fan - Question for Uncle Mike: Where does he stand on his beloved Apple now that it?s below the $100 strike? Any changes to position? I am thinking about potentially wheeling in starting with the Nov 90 weekly puts for $1.20 - thoughts?

 

 

Around the Block: Can VIX close at a low vol for the day? Google earnings after the bell. ?Tis the season?earnings season. AAPL earnings coming up on Monday.


Option Block 378: Market Apocalypse Redux

Option Block 378: Market Apocalypse Redux Trading Block: A crazy time in the markets today - the biggest rally of the year, sparked by the Fed minutes, followed by one of the worst down days. VIX Cash back up over 19. Icahn - Apple trading at...
Posted October 10th, 2014

Option Block 378: Market Apocalypse Redux

Trading Block: A crazy time in the markets today - the biggest rally of the year, sparked by the Fed minutes, followed by one of the worst down days. VIX Cash back up over 19. Icahn - Apple trading at half value.

Odd Block: Put spreads trade in AECOM Technology Corp (ACM), puts trade in Babcock and Wilcox Co. (BWC), and puts trade in Frontier Communications Corp. (FTR)

 

Mail Block: Listener questions and comments

  • Question from Larry Sanders - Hey crew minus the Viceroy. Do you ever think we will see a tradeable skew product? Something like the CBOE Skew Index but as a real product? Does that even make sense?
  • Comment from Lawrence Silverberg - Hi Mark. Thanks for reading my bond question. I heard it today. Your discussion was very helpful. I have some research to do now. Uncle Mike and Andrews input were very helpful. Like you said advice of what not to do is also helpful. I liked the idea of far OTM puts are good bankruptcy protection. My bond portfolio is at Merrill and I think you and I know more about options than my financial planner. Thank you very much for reading my question. Larry.
  • Question from Tim - Futures and options are both leveraged instruments. So trading an option on a future is like using leverage to trade an already leveraged instrument. How is that legal? Did they not crack down on something similar with options on levered ETFs? Are you not essentially trading a derivative of a derivative at that point? Does this not call into question the entire futures options market?
  • Question from Jim - Dear editor, I like your programs, but have been wondering why the recordings are not made available the same day?  Listening something a day late with today?s actual market results dramatically reduces your programs relevance."

Around the Block: Will the freefall continue? What about the Fed schism? Laser focus on the S&P. Watch for volatility creep.

 

 


Option Block 377: Covering The Cost of Your Put

Option Block 377: Covering The Cost of Your Put Trading Block: A mild day on the street. The dollar weakened the most in six months, dropping from a four-year high. U.S. stocks fell, with the Standard & Poor?s 500 Index retreating after...
Posted October 7th, 2014

Option Block 377: Covering The Cost of Your Put

Trading Block: A mild day on the street. The dollar weakened the most in six months, dropping from a four-year high. U.S. stocks fell, with the Standard & Poor?s 500 Index retreating after touching its average price for the past 50 days, as small-cap shares resumed a selloff following a fifth weekly decline. Beginning Monday, October 6, 2014, CBOE will calculate the spot value of the CBOE Volatility Index (VIX) using S&P 500 Index (SPX) options with weekly and standard 3rd Friday expirations that more closely bracket the 30-day target timeframe. Hewlett-Packard Co. (HPQ) is splitting into two companies, using a breakup to become nimbler after failing to keep up with the shift away from the printing and personal-computing businesses it pioneered.

Odd Block: Calls trade in Earthlink Holding Corp (ELNK), call stupids trade in Spansion Inc. (CODE), and put sellers in FedEx Corp (FDX)

Strategy Block: Mike Tosaw revisits buying a longer term call option and then sell calls against it. 

Mail Block: Listener Questions and comments

Question from Allen Manning, Las Vegas - Hello everyone, I just started listening to the podcast, and I'm really enjoying it!  I have a question about a strategy you?ve discussed in the past. As a covered call alternative, I was interested in possibly buying a LEAP with a 1 or 2 year expiration and selling monthly calls against it.  When I looked up a few stocks and ran some preliminary numbers, I noticed that the cost to purchase a deep in the money LEAP (about 80 Delta) option was usually higher than the total money I would make selling monthly calls for the duration of the LEAPS.

What I did to get these rough numbers was to take the money earned from selling the initial 1-month call (after commission cost) and multiplying it by 12 or 24.  I'm assuming one or more of these possibilities:

1. The method I used to get these figures is wrong, even as a rough estimate.

2. This strategy will only work with certain stocks/underlying that have optimal greek numbers.

3. This method only works when assuming the underlying LEAP also appreciates in value to offset its own cost.

4. Commission costs make this strategy less successful.

Any information you can provide about this strategy is greatly appreciated. Thank you, and keep up the good work on a great program!

 

Around the Block: What is going to happen in Hong Kong?


Option Block 376: Rebar and Rapeseed - the Stealth Titans

Option Block 376: Rebar and Rapeseed - the Stealth Titans Trading Block: Another selloff - pulling ever farther away from the 2000 level. VIX Cash moving into the high teens. OCC announced today that total cleared contract volume in September reached...
Posted October 3rd, 2014

Option Block 376: Rebar and Rapeseed - the Stealth Titans

Trading Block: Another selloff - pulling ever farther away from the 2000 level. VIX Cash moving into the high teens. OCC announced today that total cleared contract volume in September reached 371,034,038 contracts. It?s time for the global futures and options guessing game!

 

Odd Block: Calls trade in RF Micro Devices (RFMD), puts roll in SPDR S&P Oil and Gas Exploration ETF (XOP), and calls roll down in Toll Brothers Inc. (TOL)

 

Mail Block: Listener questions and comments

  • Question from DCruz - Hello All-Stars. You said on the show last week that you guys never exercise you long options except for a few very rare occasions. I would imagine that is the same for most options traders. That make me wonder whether they should just make all options European. Does that not more accurately reflect the reality of the market? And can you ask Tosaw if he can share his tale of pain with Cisco - it might be a good learning experience for the rest of us.
  • Question from Anon - On several of your programs you mention that it is important to understand the VIX Cash level at a given SPX level. Can you please explain this further? As an example, what are the implications of a 12 VIX at 1800 VS a 9 VIX at 1800? Likewise, how does a 15 VIX at 1800 compare?  

 

 

Around The Block: Non-farms coming out tomorrow - could be a resounding "meh."


Option Block 375: How to Hedge Your 401K

Option Block 375: How to Hedge Your 401K Trading Block: Alibaba options active in U.S. trading debut. OCC and U.S. options exchanges announce new risk control standards to strengthen industry protections. ISE Holdings files for third exchange...
Posted September 30th, 2014

Option Block 375: How to Hedge Your 401K

Trading Block: Alibaba options active in U.S. trading debut. OCC and U.S. options exchanges announce new risk control standards to strengthen industry protections.

ISE Holdings files for third exchange license to launch ISE Mercury.

 

Odd Block: Fun and unusual trading activity in TTPH, MX, and TAP.

 

Strategy Block: Uncle Mike discusses how to hedge a 401k or other retirement accounts?

 

 

Around the Block: Hong Kong: how much can it impact the market?


Option Block 374: When To Exercise An Option...Never

Option Block 374: When To Exercise An Option...Never Trading Block: An aggressive selloff in the market today. VIX up 3 handles - about 22%. Apple off 3%. Nike, the other big player in the market today - up about $4.  Odd Block: Calls and puts...
Posted September 26th, 2014

Option Block 374: When To Exercise An Option...Never

Trading Block: An aggressive selloff in the market today. VIX up 3 handles - about 22%. Apple off 3%. Nike, the other big player in the market today - up about $4. 

Odd Block: Calls and puts trade in EXH- looks like a straddle seller, puts close in KO- could be a put closer but not rolling, and calls trade in PBF- existing roll for calls

Mail Block: Listener questions and comments

  • Question from Sinclair - What do the all stars expect for the big BABA options launch on monday?
  • iTunes comment from Princk - Listening gives tremendous insight into options trading, strategies and trends. Great team that combines risk management, speculation and investment wisdom. Superb. Thoughtful, funny and wide ranging show for learning and understanding options trading.
  • iTunes comment from Bajasakee - Love the show very informative, looking forward to more fresh insight every episode.
  • iTunes comment from PuntPass Shoot - There are a lot of financial podcasts out there..not a lot of good ones though. It?s even harder to find something useful about options. The Option Block really gets it right. Just the right amount of information, banter and market insight to make it something I look forward to listening to every week. Great energy between the guys, interesting guests and useful traders of all rangers. IF you?re thinking about subscribing...stop thinking. Just do it.
  • Question from KaiserDog -  I have a question for the "Guardians Of The Gama"......Hehe.  When do you like to exercise an option?  Is anyone a fan? Do you ever like taking the stock over "Rolling"? Thanks again! By the way, the Shows have been stellar. Keep em coming.

Around the Block: Closely watching the S&P. Will vol come down? Mike wants to sell an AAPL put spread on the bent phone pullback. Nike reports after the bell. 


Option Block 373: Talking BABA, YHOO, AAPL and more

Option Block 373: Talking BABA, YHOO, AAPL and more Trading Block: A sea of red on the street today. Bad news out of China. Apple announced opening weekend iPhone 6 sales were over 10 million. Alibaba I.P.O. underwriters increased deal size to a...
Posted September 23rd, 2014

Option Block 373: Talking BABA, YHOO, AAPL and more

Trading Block: A sea of red on the street today. Bad news out of China.

Apple announced opening weekend iPhone 6 sales were over 10 million. Alibaba I.P.O. underwriters increased deal size to a record-setting $25 billion. Yahoo options went bonkers on Friday.

Odd Block: Puts roll in Cliffs Natural Resources Inc. (CLF) risk reversal goes up in iShares Russell 2000 Growth Index (IWO), and call buyers in Shares of Global X Social Media Index ETF (SOCL).

 

Strategy Block: Mike Tosaw discusses ways to diversify your portfolio with non-correlated assets.

 

 

Around the Block: Vol is higher, emerging economies are growing, how stimulating was the stimulus? How will the market act into and out of the elections?


Option Block 372: Call Stupids and Bond Hedges

Option Block 372: Call Stupids and Bond Hedges   Trading Block: Alibaba IPO on Friday. Fed Meeting on Wednesday. Scots vote whether or not to stay in UK. Odd Block: Calls trade in Energy Transfer Partners (ETP) ratio spreads in Petroleo...
Posted September 19th, 2014

Option Block 372: Call Stupids and Bond Hedges

 

Trading Block: Alibaba IPO on Friday. Fed Meeting on Wednesday. Scots vote whether or not to stay in UK.

Odd Block: Calls trade in Energy Transfer Partners (ETP) ratio spreads in Petroleo Brasilieiro Petrobras (PBR), put buyers jump into PDL Biopharma Inc. (PDLI).

 

Mail Block: Listener questions and comments

Question from Lawrence Silverberg - Hi! ?Doctor Larry? back again. Thanks for reading and answering my previous two questions / comments on the show! I?m a huge fan!  I am considering a way to insure my bond portfolio with options. Honestly I'm not too concerned with rising interest rates in the next two to three years but I understand the risk exists. Additionally, a market crash seems like a bigger risk to me. Either way I see bonds having downside risk.

Here's my thought process below: I'd love to hear your comment.

Situation: I'm about 8-10 years to retirement. I have about 80% of my savings in just below investment grade bonds. These are big companies like Goodyear, Burger King, US steel, Morgan Stanley, Levi?s, Hertz, Ford, and many more. It's a very diverse bond ladder. Average return is just under 7%. They have appreciated a great deal over the past 8-9 years too.

By rule of 72 I'm doubling my money every 10-11 years with interest. Hopefully faster with appreciation of the bonds too. The risk is if there is a period of rising rates (although I plan to hold to maturity) or a market crash like what happened in 2008.

I was considering insuring this portfolio with LEAPS in HYG. A high yield bond EFT. It appears to be the most liquid options compared to other similar bond ETFs. As for stock volume it is second to only JNK.

I can buy the Jan '16 puts ATM pretty cheap. These Leaps are trading at less than a 10% Implied Volatility. In the 2008 crash, HYG went from 105 to 65 and IV went from 10 to 22%. (NOTE: HYG TRADING $93 & JAN 2016 93 PUTS OFFERED @$9.30 - SO HAVE TO BE WILLING TO SPEND 10% OF YOUR HOLDING ON PROTECTION)

I did not want to just buy puts naked but was looking at backspreads. This way I?m selling premium to get much less short theta and I?m buying more puts to get long Vega and short delta.

The best spread I found was a Jan16 put backspread 1 by 4. Short one 85 put for each long four 70 puts.  With theoretical pricing I can put the spread on for even money and possibly a $0.10 credit. I?d close this spread when the Jan 17 leaps are listed and add 12 more months of insurance.

In summary, I have some upside risk as IV can go down to around 5% based on history but that?s the cost of insurance. When I roll to Jan17 I?d lose some money.

Questions:

How do I weight a bond portfolio to figure out how many contracts to trade?

Similarly, how do I estimate downside risk of the bonds?

Is HYG my best underlying?

Is there a different spread that?s long Vega and short delta that you?d recommend?

Would you use a diagonal instead of trading only one month? I can get a similar protection by trading a 1 by 2 diagonal. Short one Dec 90 put for each long two Jan 2016 $85 puts for around even money. I could then sell more (90 *or other strike) puts when the Dec expire. My hesitation here is that it?s harder to predict IV of two months. I think the short Dec will increase IV in a crash more than my long Jan16 and hurt performance.

 

If you read this (long) question on the air I?d really appreciate it. ?Dr. Larry.?


Option Block 371: Talking TSLA, SCTY, YHOO and Alibaba

Option Block 371: Talking TSLA, SCTY, YHOO and Alibaba Trading Block: NOTE: No Alex for the next six weeks. Our thoughts and prayers with him while he undergoes surgery. Alibaba IPO & Yahoo - Barron?s telling people to buy Nov 43-48 call...
Posted September 16th, 2014

Option Block 371: Talking TSLA, SCTY, YHOO and Alibaba

Trading Block: NOTE: No Alex for the next six weeks. Our thoughts and prayers with him while he undergoes surgery. Alibaba IPO & Yahoo - Barron?s telling people to buy Nov 43-48 call spread to benefit from the IPO. TSLA & SCTY over 10%. A bad day for the wallet of Elon Musk.

Odd Block: Puts filled in The Market Vectors Russia ETF (RSX), puts trade in Commscope Holding Co. (COMM) - newsletter?, calls trade in Itau Unibanco Holding SA (ITUB).

Strategy Block: Ways to defend short premium when there might be a lot of movement in the market. 

Around the Block: Andrew thinks that this is the big one re: interest rates. Also looking at YHOO, Brazil, after the Fed, maybe selling some juice. Fed Wednesday: how will bonds react?


Option Block 370: Live Episode Spectacular!

Option Block 370: Live Episode Spectacular! Trading Block: Apple trading above $100 post iWatch/Mega - any changes to outlook/trading strategy here? CBOE Futures ExchangeSM (CFE) announced today that it plans to launch futures trading on the...
Posted September 12th, 2014

Option Block 370: Live Episode Spectacular!

Trading Block:

Apple trading above $100 post iWatch/Mega - any changes to outlook/trading strategy here? CBOE Futures ExchangeSM (CFE) announced today that it plans to launch futures trading on the CBOE/CBOT 10-year U.S. Treasury Note Volatility IndexSM. 9/11 Anniversary - Bin Laden Put Options

Odd Block:

Puts spreads trade in Market Vectors Russia ETF (RSX)

Call Buyers Jump into Control4 Corp (CTRL)

Giant Butterfly Trades in Autodesk, Inc. (ADSK)

Long Term Call Options Rolling in BankAmericaCorp. (BAC)

Mail Block:

iTunes Comment from LivHK - I am a relatively new listener. However, I had to turn the show off after 5 minutes - I am here to learn about option strategies, not listen to Apple hating rhetorics. I get it you do not like Apples platform but at least show you are not ignorant of Apple products if do decide to talk about it...I would love to hear your analysis on valuation, but a baseless claim that ?3 years later the stock will definitely be worth a lot less than today?? Such thoughtless comments leads me to seriously doubt the quality of the content on the main topic.

Question from Charlie - I am prepping for my series 7. What should I expect from an options perpsective? Any tips? Sorry I could not be there in Chicago as I would have loved to see the show live. But this is the next best thing. Thanks for all that you do.

Question from Tom:  First, huge fan. Second, question about the wheel-o-fun trade:  Recently assigned on a short call in a collar position.  Monday morning, I was long my protective put (a far-OTM leap), and decided to sell a weekly put that positioned me long about 25 delta.  Now, I am wondering how all this will affect my margin SMA.  From the margin perspective - is this a put spread, or is this a naked short put?  After I put this on, I realized the margin was a bit fuzzy.  Since I just rolled out of a covered call, I am obviously cash-secured, but I want to work this out before I find my foot in a bear trap.  Thanks guys!  Nice hats!

AROUND THE BLOCK

Where will we go from here?


Option Block 369: Short Puts and Ratios in AAPL

Option Block 369: Short Puts and Ratios in AAPL Trading Block: S&P glued to the 2000 handle. Go Pro very active today - Yahoo as well. TLT - blame the Viceroy. Odd Block: Puts trade in Valero Energy Corp. (VLO) Calls trade in Pattern Energy...
Posted September 9th, 2014

Option Block 369: Short Puts and Ratios in AAPL

Trading Block:

S&P glued to the 2000 handle. Go Pro very active today - Yahoo as well. TLT - blame the Viceroy.

Odd Block:

Puts trade in Valero Energy Corp. (VLO)

Calls trade in Pattern Energy Group (PEGI)

Calls trade in Apple Inc. (AAPL)

Strategy Block:

Good greed vs. Bad greed

Mail Block:

Comment from KaiserDog76 - Oh that Granny Smith tasted sour today! Lol I have to admit I ditched my calls shortly after the open and I am very, very glad I did, It got ugly for "Retail's" favorite fruit. NFLX could not even hold gains after announcing streaming rights to the new "Origins" Bat Man TV show. Yet.....Yet GPRO tacked on another $3...(clearing of the throat)..Ok.Oh, but wait! It gets better, Mobile Eye continues to make elderly and the "Peripherally" challenged excited as now whats the Market Cap? 10 Billion? An even bigger, Ok. I am interested to see how H&R Block HRB trades post earnings. Morgan Stanley looks very interesting to me as well. The Nat Gas export commodity play is looking juicy and unrealized. I had a good day so I have no reason to be surly. I just thought some of you might enjoy my commentary. Thanks for everything you do Mr. Longo. You and the fellow Rouge Scholars are the dose of sanity that this insane Market needs!. P.S.I love the new show! Reminds me of some of my favorite Old School Comics, Strange Tales..... Keep Up the Great work. I am loving all of it!

Question from Catherine - I want to set up an options trading account for my son (who is 23 years old) and I want him to learn to trade options in a risk-managed way - do not really want him to know that he can use options for taking stupid risks (he will probably figure that out on his own soon enough).  I contacted the customer services people at my broker  (Options Express) to see how an account could be set up to achieve my goals and was told that initially all he could do would be to buy puts and buy calls. Seriously?  That is exactly what I do not want him to do.  I want him to control his risks better than that and to learn to put on spreads from the git go.  Is there any way that my goal can be accomplished? - Cat

Around the Block:

Option Block Live! - This Thursday, Sept 11, 4pm Central @ Bennys Chop House (444 N Wabash) here in Chicago. 


Option Block 368: Selling Premium in a Quiet Market

Option Block 368: Selling Premium in a Quiet Market Trading Block: A mild day on the street today. BP fiasco slaughters everything oil related. Apple had a four point loss. CBOE announces weeklies on SPX Odd Block: Calls buyers flood into...
Posted September 5th, 2014

Option Block 368: Selling Premium in a Quiet Market

Trading Block:

A mild day on the street today. BP fiasco slaughters everything oil related. Apple had a four point loss. CBOE announces weeklies on SPX

Odd Block:

Calls buyers flood into QuickSilver, Inc (ZQK)

Calls trade in JAKKS Pacific, Inc (JAKK)

Calls trade in Corning Inc. (GLW)

Mail Block:

Question from Mandel - What is a premium writer to do in this market? Any suggestions for good income trades here? 

Strategy Block:

Today, Uncle Mike Tosaw discusses the ratio spread

Around the Block:

Non-farms coming up on the horizon.

FDA approves Merck cancer drug.


Option Block 367: Talking AAPL Collars

Option Block 367: Talking AAPL Collars Trading Block: A relatively quiet day on the street. GoPro and Twitter were the only two names Apple still seems to be reaching new high. How did Tosaw play it? Odd Block: Big put seller in Wells Fargo &...
Posted August 29th, 2014

Option Block 367: Talking AAPL Collars

Trading Block: A relatively quiet day on the street. GoPro and Twitter were the only two names Apple still seems to be reaching new high. How did Tosaw play it?

Odd Block: Big put seller in Wells Fargo & Co. (WFC), puts trade in 21Vianet Group Inc. (VNET), and bullish paper in EZCHIP Semiconductor LTD (EZCH).

Xpress Block: A very quiet day on the OX desk. 3 to 4 leg trade tickets on Street Smart is tentatively scheduled to release on Friday, Sept 5.

Strategy Block: What you can do as a trader if you are not getting filled on your spread? Understanding the rules of risk management.

Mail Block: Listener questions and comments

  • Question from Dr. Lawrence - Could you comment on a trade I did that was inspired by your talk about collars. I own apple at split adjusted $26. I bought Jan16 $80 puts for $4.50. I then sold the nov $120 calls for $1.05. I have many months to sell calls to pay for the puts. I really do not want to sell my underlying so I figure I will roll up and out if it goes up 20% in the next three months. I am content with the downside protection and will roll my long put when the Jan 17s are listed. On the upside I figure it cannot go up forever and will roll up and out as long as necessary but will try to continually sell calls to pay for my long puts. I would love to hear your opinions of my strategy.
  • Question from Samuel - I am really enjoying your website as a trader. I read it every day. My question is, is there any scanner to show us unusual volume for options on future or FX? As we have one or two on equity, or to show you if the options been bought or sold. Thank you kindly.

Around the Block: Holiday weekend, so keep an eye on decay. Will S&P stay above 2000?


Option Block 366: The Knife Edge of Volatility

Option Block 366: The Knife Edge of Volatility Trading Block: Most major indices up today on the street. Vol saw a bit of a rally as well. S&P briefly hit 2,000, but couldn't stay there.   Odd Block: Calls trade in Credit Suisse Group AG...
Posted August 26th, 2014

Option Block 366: The Knife Edge of Volatility

Trading Block: Most major indices up today on the street. Vol saw a bit of a rally as well. S&P briefly hit 2,000, but couldn't stay there.

 

Odd Block: Calls trade in Credit Suisse Group AG (CS), calls trade in H&R Block (HRB), and risk reversal trades in Lennar Corp (LEN).

 

Xpress Block: What?s new with IdeaHub? Futures side and securities side premium harvesting.

 

Mail Block: Listener questions and comments

  • Question from Seven - With all the talk about exposure fees and excessive customer risk, is there any talk at OX or Schwab about raising the bar for options certification? Perhaps making it harder to qualify for options level 3 or even taking a test to qualify? I know you do not want to put barriers in front of customers but is that not preferable to the alternative?
  • Question from Jack Schwartz - On a recent episode, Alex Jacobson from OX said that the OCC would never force a taxable event in the case of a corporate action. However, I am pretty sure I have seen OCC do exactly that in all-cash corporate deals. In those scenarios do the options not essentially expire on the transaction date, and the customer is left with the resulting debit or credit in their account?

 

 

Around the Block: Keeping an eye on the 10-year. Interest rates, where will the Fed go?


Option Block 365: The Great Apple $107 Debate

Option Block 365: The Great Apple $107 Debate Trading Block: A mild day on the street. Apple finally passes $100. What will Yellen say tomorrow and how will it affect the market? New study show advisors use of options increased 13% since...
Posted August 22nd, 2014

Option Block 365: The Great Apple $107 Debate

Trading Block: A mild day on the street. Apple finally passes $100. What will Yellen say tomorrow and how will it affect the market? New study show advisors use of options increased 13% since 2011.

 

Odd Block: Calls trade in Jarden Corp. (JAH) calls trade in China Finance Online Co. (JRJC), and calls trade in Macerich Co. (MAC).

 

Xpress Block: Free pizza day at every Schwab/OX site today in celebration of the importing of the 3- and 4-leg trade ticket from OX to Schwab which is coming in Sept.

 

Strategy Block: A strategy of patience. Waiting for the right time to make a move in Apple and gold.

 

Mail Block: Goldman Fly

Question from Pat - Love the show, it's really great and even though I'm clueless (as is shown by the following). Here's one that might be good for your "could've done the trade better" segment in Options Block. The following is the list of trades that I have made around Goldman. Sorry I don't have the volatilities or any other data from the trades but hopefully you'll be able to explain the error of my ways without them. Once I made the initial trade and GS didn't rebound quickly, I was trying to offset the cost of keeping the calls since I expected that Oct was plenty of time to get back to the 175 area.

3/27 - buy 2 10/18 170-180 call spreads for $3 debit (6.42/3.42)

4/25 - closed 180 call for $1.75

4/28 - closed 180 call for $1.50

5/1 - sold 175 call for 2.75

5/5 - closed 175 call for 1.60

6/6 - sold 175 call for 2.40 (the first one worked but I think they were both actually mistakes)

7/28 - closed 175 call for 5.37 debit, closed 170 call for 8.53 credit, sold 2 180 calls for 3.16 (each), bought 185 call for 1.65

(Resulting position is 170-180-185 fly) (Now it seems really inefficient)

8/7 - closed both 180 calls for 1.88 (each), 185 call for 0.96

Order currently in to sell 2 180s and a 185 for a 3.50 credit

 

I have the order in to recreate the fly to reduce the cost of the 170 since I don't think GS will get above 180. Besides discussing what I've done and any suggestions you have, what would be a better way to implement my current view of GS given that I own the 170 call? Thanks for all the help already and the future I'm sure I'll get.


Option Block 364: Dollar General Madness Continues

Option Block 364: Dollar General Madness Continues Trading Block: Rally ho on the street today! German 10-year realized vol was 100%! The social media trio - FB, LKDN and TWTR mixed today.   Odd Block: Unusual options activity in DG, AMSC,...
Posted August 19th, 2014

Option Block 364: Dollar General Madness Continues

Trading Block: Rally ho on the street today! German 10-year realized vol was 100%!

The social media trio - FB, LKDN and TWTR mixed today.

 

Odd Block: Unusual options activity in DG, AMSC, EGHT, and TASR.

 

Xpress Block: Schwab tools: The 4-legged trade ticket is coming to Schwab the first-second week of September.

 

Mail Block: Question from Ted Schwartz

  • Hi, I'm working my way through the Options Boot Camp and Option Block, learning lots of good stuff.  I was wondering what kind of options strategies exist to hedge my 401K mutual funds gains?  Would it be practical to use protective puts on some indexes, etc. to offset my risk of fund losses? Thanks!

 

 

Around the Block: What can we expect from Yellen and the Fed?


Option Block 363: The Last Train to Pallookaville

Option Block 363: The Last Train to Pallookaville Trading Block: The market rallied about half a handle. Putin talks up the street. Bonds: TLT & IEF. Berkshire A crosses $200,000 a share. Red Robin taking it on the chin today.   Odd Block:...
Posted August 15th, 2014

Option Block 363: The Last Train to Pallookaville

Trading Block: The market rallied about half a handle. Putin talks up the street. Bonds: TLT & IEF. Berkshire A crosses $200,000 a share. Red Robin taking it on the chin today.

 

Odd Block: Some unusual activity in TSRA, NM, and NKTR

 

Xpress Block: The social networking triplets (Twitter, LinkedIn and Facebook) were all active today. Amazon surprisingly active as well.

Mail Block: Listener questions and comments

  • Question from Everett: Really enjoy the show, and find it incredibly useful in helping break down the complexities of more technical trades.  That said, is it possible to point to 3 key technical-focused factors that you believe to be the most important factors for consideration when trading biotech options around a catalytic event (E.g FDA marketing approval). I doubt an example is necessary, but to clarify, I don't mean examining the strength of the company?s clinical trial submissions in anticipation of an FDA decision; rather, are there 3-5 stock/options-focused factors (E.g. implied volatility, Delta, Vega, etc.) that you would recommend analyzing in anticipation of trading options around a biotech's upcoming catalytic event?  I recognize these factors might be different based on the strategy one chooses to employ, but if possible, what would say those 3-5 factors should be just generally, if I am willing to employ a diversity of strategies? Thank you in advance for your time and consideration, Everett
  • Question from Joe: Option Block Question: Greetings.  My question deals with order fulfillment on a spread.  During the wild few days that TWTR had a few months back the IV shot through the roof, the vol skew went way out of whack, and it was possible to put on long spreads for even money or credit...but I had to leg into the spread because my broker said "I could not get filled for even money on a spread."  Which leads to my question, how are the smaller lots (I usually trade 10-50 contract lots) handled on the market with respect to their fulfillment?  Logic and the current state of technology leads be to believe that like strike prices are grouped together and sold on the market in order to obtain a better leverage when trying to obtain a sale price.  If this is not the case, how does fulfillment take place with spreads?
  • Question from MrLami: Hello...What parameters can one use to scan for unusual options activity real-time (OR) what is the thought process behind it (I can use my intellect or practice for how I can start spotting these myself)? Is there a way to receive alerts for "Unusual Activity" section on this website?

 

 

Around the Block: Bonds. US global affairs. Ukraine and Iraq.


Option Block 362: You, Too, Can Own a Piece of History

Option Block 362: You, Too, Can Own a Piece of History Trading Block: Big momentum days for PriceLine, LinkedIn and Tesla. Zynga rallies. A picture of Alex is up for sale on Ebay. Odd Block: Diagonal puts trade in Yahoo Inc. (YHOO) ratio call spread...
Posted August 12th, 2014

Option Block 362: You, Too, Can Own a Piece of History

Trading Block: Big momentum days for PriceLine, LinkedIn and Tesla. Zynga rallies. A picture of Alex is up for sale on Ebay.

Odd Block: Diagonal puts trade in Yahoo Inc. (YHOO) ratio call spread buy - Earnings trade goes up in Fossil Group Inc. (FOSL), and calls roll in iShares Dow Jones US Home (ITB) - sell Aug buy Sep.

 

Xpress Block: Three- and four-legged trade tickets to be released early to mid-September. Premium harvesting in the IdeaHub.

 

Strategy Block: Finding your happy, comfortable spot as a trader.

 

Mail Block: Question from the OX community - Hull?s Quant ETF coming, will it change the way folks invest?

 

 

Around the Block: Some more earnings left: Cisco 8/13


Option Block 361: The Happy Bottom

Option Block 361: The Happy Bottom Trading Block: A little bit of a down day on the street, but nothing like last week. Zynga and Groupon after the bell. ZNGA closing south of the 3 handle. VIX futures trading below the VIX cash. Grains and wheat...
Posted August 8th, 2014

Option Block 361: The Happy Bottom

Trading Block: A little bit of a down day on the street, but nothing like last week. Zynga and Groupon after the bell. ZNGA closing south of the 3 handle. VIX futures trading below the VIX cash. Grains and wheat options and the Russia embargo.

 

Odd Block: Combos trade in Flotek Industries Inc. (FTK), puts trade in Gerdau SA (GGB) wheel trade.

 

Xpress Block: LULU has been running hot, but cooled down during the day. Three-to-four leg tickets coming in September. IdeaHub adding 8 names into premium harvesting. What is we see of a Whaley product?

 

Mail Block: Listener questions and comments

  • Question from Reuben Brooks - A few months back, on one of your shows, I think option block, Uncle Mike from RCM was talking about some kind of special offer for individuals in the "wealth accumulation" phase. You jumped in and pointed out that we listeners would be "stupid" to not take advantage of this. So, I am trying to not be stupid. I was not able to follow up right away on that (and in fact I have fallen behind on my podcasts), but I would like to find out more. Can put me in touch with Mike? If you have any other resources for me, i would love to hear it. I am 25, an engineer, I am intrigued by active trading but a bit dubious of technical analysis, and trying to find more edge, and use options to exploit that (either long-term or short-term). Have been trading options in 1 lots to learn. Your podcasts have been a HUGE help in blasting through the steep initial learning curve.
  • Question from Christian C Caropolo - If you buy an option on a company that ends up merging or being bought out with another. What happens to the option you own?
  • Comment/Question from Kaiserdog76: Thanks for the Option Block update today. Missed Longo?s presence but Sebastian did a decent job. Worlds shortest Odd block, but after looking on the web page I found the "Juicy" unusual activity I crave!! That VNDA trade is intriguing. There are some heavy OTM open interest in VNDA all over the strikes and going well out into the future. I do love me some Bio-Tech!  So today I have two stories for you. One of failure and one of success. Let?s start with the failure. Back when PBYI was around $49-50ish I had bought 100 shares in small chunks. When the stock popped to $70 I thought how smart I was and sold every last share. For a decent profit. I know you are thinking well how is that failure? That 4-5 thousand dollar investment would be worth over $20,000 now, so yeah. It can be hard to sleep at night FML for real. My second tale is a much happier one. I own shares on WIN and love the dividend and super well defined uptrend the stock has been in for quite some time. I wanted leverage though. So I took the proceeds from my dividend on WIN and financed some OTM call options on WIN. Well on Tuesday when WIN announced the IRS had "Okayed" them spinning some of their assets into a REIT. WIN popped and I realized over a %1,200 percent gain that day. Now I was able to sell those calls and lock in some fantastic profit all while not selling a single share. So you win some and you lose some I guess. Thanks for everything you guys do! Love the underground radio!! Mark- Kudos again for covering Barclay's and the HFT shakedown that has been going on. It is the biggest thing no one seems to be talking about. Please keep it coming!
  • OX Question - Maker / Taker goes away in the UK. Are we next?

 

 

Around the Block: What will the US do, and how will it affect the markets?


Option Block 360: Return of the Voice

Option Block 360: Return of the Voice Trading Block: Some of the Thursday selloff coming back into the market. Where could the VIX go in the next few weeks? VXST trading below the VIX cash.   Odd Block: Ratio roll calls in Select Sector SPDR...
Posted August 5th, 2014

Option Block 360: Return of the Voice

Trading Block: Some of the Thursday selloff coming back into the market. Where could the VIX go in the next few weeks? VXST trading below the VIX cash.

 

Odd Block: Ratio roll calls in Select Sector SPDR Financials (XLF), a ratio time "Tosaw Stupid" in SM Energy Co. (SM), size ITM call buyer with stock in AmerisourceBergen Corp. (ABC), and closing call roll in NQ Mobile (NQ).

 

Xpress Block: A little technical hiccup with Idea Hub. Amazon got a lot of attention today.

 

Strategy Block: Doing stuff - put spreads, managing risk and staying bullish.

 

 

Around the Block: Earnings still left: Activision, Groupon, and Disney. All on 8/5.


Option Block 359: Thursday, Bloody Thursday

Option Block 359: Thursday, Bloody Thursday Trading Block: A bloody day on the street. A default, a bankruptcy, and bad Fed news. Massive FLEX trades went up today. Professor Whaley and the VIX term structure     Odd Block:...
Posted August 1st, 2014

Option Block 359: Thursday, Bloody Thursday

Trading Block: A bloody day on the street. A default, a bankruptcy, and bad Fed news. Massive FLEX trades went up today. Professor Whaley and the VIX term structure

 

 

Odd Block: Revisiting a position in iShares MSCI Taiwan Index (EWT)

 

Xpress Block: Alex discusses about the changing metrics in portfolio margining and the risk tools.

 

Strategy Block: Uncle Mike highlights his strategy using the Long SPY Long Oct 190 Put

 

Mail Block: Listener questions and comments.

Question from Steven, San Diego, CA: Listing to the July 24th show on the 25th. So, with the benefit of hindsight, I can you see the majority of the activity in AMZN being discussed was pretty much completely wrong.  It was down, not up, and way past the expected move. So that brings me to the question. Is there any study or statistical evidence that shows that the unusual activity should be followed? Or should be faded? Really think the retail crowd are chasers, which works until it doesn't. The trend is your friend? Bah-humbug! It makes for interesting press, but is it really actionable? Rather than glorifying, would your listeners be better served to be cautioned on this topic rather than enticed? Love the show. Sometimes customer of the Pit and RCM because of the show.

 

Around the Block: Non-farm payrolls: could it possibly turn around the market?

 

 


Option Block 357: AMZN Call Buyers Get Crushed

Option Block 357: AMZN Call Buyers Get Crushed Trading Block: Markets mostly unchanged in modest volume. Apple posts decent numbers but disappoints overall. Amazon earnings after the bell. OX clients still buying far OTM calls? Facebook rallies $4.50...
Posted July 25th, 2014

Option Block 357: AMZN Call Buyers Get Crushed

Trading Block: Markets mostly unchanged in modest volume. Apple posts decent numbers but disappoints overall. Amazon earnings after the bell. OX clients still buying far OTM calls? Facebook rallies $4.50 post earnings and trades over 1m contracts. Ford announced before open. Not much of an event.

Odd Block: Call buyers trade in Wisconsin Energy Corp (WEC), spreads go up in iShares Dow Jones US Homebuilders Index ETF (ITB), call buyers trade in Navios Maritime Holdings Inc (NM), and block prints in WhiteWave Foods Co. (WWAV)

Xpress Block: Alex showcases "The Dragon,? an OX tool that allows you to find unusual activity. 

Mail Block: Listener questions, comments, and suggestions

  • Question from Sea Biscuit: How do the market makers figure into open interest? Do they essentially double all of the OI because they are taking the other sides of every trade? Should i divide all OI numbers by two to get the real activity or is that already done for me?
  • Question from Avon Man: Just to clarify on the conversation from last week, Alex said OI was broken down from each exchange and then netted with market maker activity. So if customer A buys 10 calls on Arca and then customer b sells 10 of those same calls on Arca, both opening, that would be net 0 open interest because they are on the same exchange? But if customer B sells those same calls on a different exchange, let's say NASDAQ, then it would be net 20 calls open on the strike because it?s two different exchanges? Is that right?
  • Question from Alex C: Facebook looking strong post earnings. What option trades do you guys like out there right now, if any? Thanks for the shows. Just checked out Advisors Option for the first time as well. Very timely as I am in the process of picking an advisor.

Around the Block: Earnings-palooza continues


Option Block 356: CME and NFLX Earnings Rundown

Option Block 356: CME and NFLX Earnings Rundown Trading Block: A relatively quiet day on the street, after a crazy week. Earnings so far: NFLX after the close, CME (the stealth Apple) after the close. Positioning for Apple tomorrow. Odd Block:...
Posted July 22nd, 2014

Option Block 356: CME and NFLX Earnings Rundown

Trading Block: A relatively quiet day on the street, after a crazy week. Earnings so far: NFLX after the close, CME (the stealth Apple) after the close. Positioning for Apple tomorrow.

Odd Block: Call buyers trade in Steel Dynamics (STLD), call spreads buyers trade in Orexigen Therapeutics, Inc. (OREX), calls buyer trade in Crocs, Inc. (CROX), call spreads, rolls selling Dec, buying March trade in CytRx Corp. (CYTR).

 

Xpress Block: Herbalife taking a pounding. News on The Walk Limit tool.

 

Strategy Block: An expiration day lesson from Uncle Mike Tosaw and how to avoid unnecessary weekend risk.

 

 

Around the Block: A quick earnings review in CME, NFLX. MSFT and APPL tomorrow. On 7/24: AMZN, F, GM.


Option Block 355: Bleeding Out Into the Pillow

Option Block 355: Bleeding Out Into the Pillow The Trading Block: A bit of a bloodbath on the street. Dire world news out of Ukraine and Israel/Palestine. Yellen's comments reverberating around the market. A 33% spike in the VIX. Microsoft slashing...
Posted July 18th, 2014

Option Block 355: Bleeding Out Into the Pillow

The Trading Block: A bit of a bloodbath on the street. Dire world news out of Ukraine and Israel/Palestine. Yellen's comments reverberating around the market. A 33% spike in the VIX. Microsoft slashing jobs. U.S. House passes spending bill with Dodd-Frank changes. 

The Odd Block: Opening put buy in Currency Shares Canadian Dollar ETF (FXC), short puts with stock trade in Gerdau SA (GGB), big block of puts traders in Janus Capital Group Inc. (JNS), and buying puts in Entergy Corp. (ETR)

Mail Block: Questions and comments from you, our listeners

  • Comment from Jake -  I just wanted to let you guys know that I can?t go a week without getting my fix of lobsters, bubble pipes, fancy hats and of course Mark?s baritone pipes. Keep the shows coming. It makes my week fly by.
  • Question from Series 7 - Hey Mark and his all-stars. I know you guys have touched on a stock being hard to borrow impacting the pricing of the options. But I?m still confused. Can you break it down for me please? Thanks. I know I?ve come to the right place.
  • Question from Connor Mac - If I own a stock and I write an in-the-money call against it is that the same thing as selling the stock? If so what price am I selling the stock for? The strike price? If not am I increasing my probability of my stock being called away before expiration by selling an in-the-money call?

Around the Block: Thursday earnings: Morgan Stanley, Google and IBM.  


Option Block 354: When to Close Out a Spread

Option Block 354:  When to Close Out a Spread Trading Block: VIX and VIX cash. LULU taking it on the chin. It?s time for the Trading Patterns Guessing Game once again!   Odd Block: Calls roll in Danaher Corp (DHR), calls roll in...
Posted July 15th, 2014

Option Block 354:  When to Close Out a Spread

Trading Block: VIX and VIX cash. LULU taking it on the chin. It?s time for the Trading Patterns Guessing Game once again!

 

Odd Block: Calls roll in Danaher Corp (DHR), calls roll in Wisconsin Energy Corp (WEC) - Buy Jul, Sell Jan., closing collar in AGCO Corp (AGCO) - Buy call/sell put, and ratio call spread unwind in Beazer Homes USA, Inc (BZH) - Sell 1, Buy 2.

 

Xpress Block: Alex discusses the development of migrating the OX tools to Schwab, including the 3 and 4-legged trade ticket, due to Schwab Mobile and Street Smart Edge by September.

 

Mail Block: Listener questions and comments.

Question from Neal Augustin - Like the discussion on the recent show about getting free gamma going into earnings. It makes sense since the contracts should experience minimum decay. But do you not have to use a contract that expires after earnings, preferably the earnings week, in order to get that bump? If you use the contract that expires prior to earnings, it should decay like normal, correct?

Question from Trader64 - Spread decay question: Mark said in the mail block in response to a listener question about spread pricing, that the at-the-money and in-the-money options would decay at different rates to make the spread widen. Since this takes a substantial amount of time, should I always count on only capturing a portion of the maximum profit in each of my spreads? If so, what percentage is reasonable? Thanks for the show Mr. Options Voice!

 

Around the Block: More earnings on tap for this week. Citigroup - 7/14. JP Morgan Chase and Goldman Sachs - 7/15. Bank of America - 7/16. Morgan Stanley - 7/17.


Option Block 353: Crazy Combos and the Great Open Interest Debate

Option Block 353: Crazy Combos and the Great Open Interest Debate Trading Block:  A volatile day on the street - S&P got as low as 1952. VIX cash ticking up nearly one handle. Gold a big mover today - to the delight of Uncle Mike Tosaw....
Posted July 11th, 2014

Option Block 353: Crazy Combos and the Great Open Interest Debate

Trading Block:  A volatile day on the street - S&P got as low as 1952. VIX cash ticking up nearly one handle. Gold a big mover today - to the delight of Uncle Mike Tosaw. It?s time for the Trading Patterns guessing game again - this time with GLD!  Lumber Liquidators (LL) gets crushed, down over 20% today. Options volume already 10x ADV on new that they are cutting 2014 earnings outlook. Sprecher calls for market-wide purge for order types. Chicago Fed joins the HFT conversation calling for curbs. 

Odd Block: Calls roll in Thermo Fisher Scientific (TMO), closing combos trade in CBS Outdoor Americas Inc. (CBSO), call buyers trade in Goodyear Tire and Rubber Co. (GT), dividend trade calls trade in Freeport McMoRan Copper (FCX)

Xpress Block: A reminder at IdeaHub for futures is out. Please be aware that firms are trying to rein in exposure fees.

Mail Block: Listener questions and comments

  • Question from Nico Belle: Am I correct in assuming that open interest refers to the number of contracts that are available for exercise on a particular strike and not just the trading volume seen on the strike?
  • Question from Rick: What does the term spot refer to? Also how is change calculated? These terms are used with unusual activity. Thank you, Rick
  • Question from T Jon: Hey all stars - great show Mark and the gang. Please say hi to Uncle Mike, the rock lobster and the viceroy for me. I enjoy all of their segments including the strategy block. On a recent episode Uncle Mike referred to selling put spreads to help finance the cost of a longer term put. Can he explain his methodology for this strategy - if he buys a six month ATM put is he also selling ATM put spreads against it for a straight up calendar? Or is he selling OTM put spreads and going for diagonals? What frequency is he doing this on - weekly? Monthly? Does he ever combine the short put (spreads) with a short covered call essentially turning it into a long term put vs a short term strangle (plus)? Question for viceroy as well - what is your favorite question you?ve ever been asked at one of your seminars? Mark - thanks again for this great show. Your network will always have a home on my iPhone.

Around the Block: On Thursday: weekly jobless claims, May wholesale inventories as well as Fed talk: Stanley Fischer, Vice Chair of the Fed Reserve, gives his first speech (financial reform in Cambridge, MA) and KC Fed President Esther George (economy and monetary policy in Oklahoma). Problems in Portugal: parent of Portuguese banks delayed payments on some short-term debt.

 


Option Block 352: Hot GoPro Action

Option Block 352: Hot GoPro Action Trading Block: A mild selloff ahead of earnings. The newcomer GoPro was very active today, as well as everyone?s favorite fruit company, Apple.   Odd Block: Call buyers trade in URS Corp. (URS), puts...
Posted July 8th, 2014

Option Block 352: Hot GoPro Action

Trading Block: A mild selloff ahead of earnings. The newcomer GoPro was very active today, as well as everyone?s favorite fruit company, Apple.

 

Odd Block: Call buyers trade in URS Corp. (URS), puts buyers with stock trade in King Digital Entertainment (KING), call buyers trade in Zions Bancorp (ZION), and put spread buyers trade in iShares MSCI Germany Index (EWG).

 

Xpress Block: A lot of speculation in fixed income.

 

Strategy Block: Tosaw discusses how not trading can also be an option when you can get what you want.

 

Mail Block: Listener Question
Question from T. Simpson: Hey all-star panel (viceroy, meatball, lobster, uncle and the voice)! I?m sitting on some gains in ford and would like to protect it. I?m looking at the December 17 put (currently trading for 82 cents). I know you guys have said aim for about 2% of your portfolio for protection. But my math shows this to be about 5% of my portfolio for decent near-ATM protection. What are some ways that i can do stuff to make this protection more affordable? I very much enjoy the show and i am wearing a fancy hat as i write this letter. ? Tom

 

 

Around the Block: ALCO kicks off the earnings madness again tomorrow. 


Option Block 351: Dollar General Insider Loses Millions

Option Block 351: Dollar General Insider Loses Millions Trading Block: A quiet day on the street, given the shortened trading week. A stealth rally in Gold. Traders preparing pre Google earnings. Under 400K ADV in VIX today.   Odd Block: Call...
Posted July 1st, 2014

Option Block 351: Dollar General Insider Loses Millions

Trading Block: A quiet day on the street, given the shortened trading week. A stealth rally in Gold. Traders preparing pre Google earnings. Under 400K ADV in VIX today.

 

Odd Block: Call spreads trade in Dollar General Corp. (DG), size ratio spreads trade in Carnival Corp (CCL), puts sellers trade in Companhia Energetica Minas. (CIG), and small call buyers trade in Amicus Therapeutics, Inc (FOLD).

 

Xpress Block: Alex discusses premium harvesting in IdeaHub.

 

Strategy Block: Uncle Mike Tosaw discusses when it?s OK to break the rules and to make new ones.

 

Mail Block:

Question from Aviatrix - Hello all-star panel! Great program. I have a question about option open interest. I don?t really understand it. I?ve read some blogs that say open interest can impact a stock?s direction during expiration week. Is this just, as Mark would say, the ?tin foil hat crowd? or is there something to this? Should I be tracking open interest as an indicator?  Keep the ?wit and wisdom? coming!

 

 

Around the Block: Be aware - this is a shortened holiday week.


Option Block 350: TWTR Risk Reversal Rundown

Option Block 350: TWTR Risk Reversal Rundown Trading Block: Interesting intra-day activity, but ended up closing basically unchanged. VIX cash back in the 11 handle range. A resurgence in Twitter. A banner day for Valero. Odd Block: Calls trade in...
Posted June 27th, 2014

Option Block 350: TWTR Risk Reversal Rundown

Trading Block: Interesting intra-day activity, but ended up closing basically unchanged. VIX cash back in the 11 handle range. A resurgence in Twitter. A banner day for Valero.

Odd Block: Calls trade in PowerSecure International, Inc (POWR), calls roll in Ashland Inc. (ASH), puts trade in SM Energy Co. (SM), put spreads roll in Tractor Supply Co. (TSCO), puts trade in MagicJack Volactec ltd. (CALL).

Mail Block: Listener questions and comments

Question from JG - Hi guys! Love the show(s), I like really really love the show(s). Last Option Block you mentioned us providing our trades and you dissecting them. Just happens to be a very opportune time because I am currently in a trade and I'll provide my analysis and would like to hear you guys discuss.

Question from Roger Edwards - Hi.

Unusual options activity has drawn my attention to company A, which led me to discover that it's a takeover target by company B. Of course takeover timing is the big challenge. I know that company A has an upcoming ex-div date. Is an ex-div date relevant (factored into takeover timing) at all? Is there any advantage in company B timing its takeover of company A before or after the ex-div date? I'm just trying to use whatever information I can to select the right option expiration. Thanks so much.

Question from Kaiserdog76 ?  - "The Dumbest Investor In the World"  - Made good money on UA stupids and FB. Played for a bounce in IWM using options. As that one looks like it has the most room to run. Decent jobs numbers and the "Goldilocks" rally continues. - P.S. Rock Lobster would be proud of me. I even traded a couple Apple calls for a nice pop?.Oh, Bita,bita,bita,bita........ Gotta love those China Tech stocks that Retail usually has no clue about. Excellent heads up. Maybe I will look for a bottom and get long again. I had bought 100 shares back when it was trading at $30. In less than a week I was up $600 and figured it could go down just as fast as it went up. Sold and never looked back. I might be breaking some rules here but I like to circle back to winning trades after I feel enough time has passed. Is that a bad habit? I do not have % stats or anything but I know that many have worked more than once. Thanks for refreshing my memory on BITA!

 

Around the Block: Andrew is amazed. Short trading week next week. Not expecting too much activity. Look out for early cash-settled indexes. Be prepared.


Option Block 349: A Bonafide Covered Strangle

Option Block 349: A Bonafide Covered Strangle Trading Block: Lululemon had a big move today, as did Facebook and Tesla. Is time once again for the Trading Patterns Guessing Game!. Odd Block: Put butterflies trade in Dow Jones Industrial Average ETF...
Posted June 24th, 2014

Option Block 349: A Bonafide Covered Strangle

Trading Block: Lululemon had a big move today, as did Facebook and Tesla. Is time once again for the Trading Patterns Guessing Game!.

Odd Block: Put butterflies trade in Dow Jones Industrial Average ETF (DJX), call sellers trade in AerCap Holidings NV (AER), call and put sellers (covered strangle?) trade in PG&E Corp. (PCG), and same month call rolls trade in Six Flags Entertainment Corp (SIX)

Xpress Block: What is your take of the covered strangle? Adding names to the IdeaHub. 

Strategy Block: Tosaw discusses the enhanced collar strategy.

Around the Block: How long can the market continue to ignore what happens in Iraq, higher oil prices, etc.? Whoa to the complacent. Where?s the conviction?


Option Block 348: Rampant Insider Trading

Option Block 348: Rampant Insider Trading The Trading Block: More of a micro, rather than a macro day today. Gold up on the day. Is VIX too low? Lululemon had a stealth rally last week. New Amazon Fire phone. Visa popped up the day.  A...
Posted June 20th, 2014

Option Block 348: Rampant Insider Trading

The Trading Block: More of a micro, rather than a macro day today. Gold up on the day. Is VIX too low? Lululemon had a stealth rally last week. New Amazon Fire phone. Visa popped up the day.  A study by professors at NYU and McGill University in Montreal shows insider options trades precede about a fourth of US M&A deals.

Odd Block:Call sales trade in Verso Paper Corp. (VRS), and bullish risk reversal/Combos trade in Exterran Holdings Inc. (EXH)

Xpress Block: New premium harvesting tools now available in IdeaHub. New features for the Walk Limit. 

Mail Block: Listener Questions & Comments

Question from Shane Hamilton - Hey Mark, How about a new segment called the "Success Block" where listeners submit winning trades and your cohorts comment how it could have been improved, done differently or kudos exactly the way it was played. Just an idea that seems like that might be fun. Besides we all love to talk about our winners.

Question from ITrumpDoom - Hello. If I expect a stock to move significantly over the next six months, but I do not  have a prediction for direction: Is it reasonable to sell a short put butterfly, and a short call butterfly on that stock, with all the long strikes at or very near the money? I think I would cover the risk in one of the flys, by the profit in the other, since it would be impossible for both of them to expire with maximum loss (not that I would hold to expiration). Is my logic sound on this? Is six months an unreasonable expiration to use on these given potential IV increases?

 

Around the Block:  Weekly jobless claims and Regional manufacturing survey (Philly Fed). Keeping an eye on the Iraq situation, crude and Brent oil prices.


Option Block 347: Bringing Guns to the Trading Pit

Option Block 347: Bringing Guns to the Trading Pit Trading Block: A very mild day on the street. Everyone still loves Tesla. What is up with gold volatility?   Odd Block: Calls spreads trade in Fairchild Semiconductor Intl. (FCS), calls trade...
Posted June 17th, 2014

Option Block 347: Bringing Guns to the Trading Pit

Trading Block: A very mild day on the street. Everyone still loves Tesla. What is up with gold volatility?

 

Odd Block: Calls spreads trade in Fairchild Semiconductor Intl. (FCS), calls trade in Nexstar Broadcasting Group, Inc (NXST), calls trade in St Jude Medical, Inc. (STJ), puts roll trade in SPDR Barclays Capital High Yield (JNK).

 

Xpress Block: You could quality for a commission waiver on options trading if you belong to the Schwab Private Client Group. Idea Hub did very well in May. Premium harvesting now available for both securities options and futures options.

 

Strategy Block: Remember, this week is the ex-dividend date on SPY

 

 

Around the Block: Monday - NY Fed Empire Manu survey. Industrial production and capacity utilization for May and June. NAHHB Homebuilders survey.


Option Block 346: Say Hello to Exposure Fees

Option Block 346: Say Hello to Exposure Fees Trading Block: A sea of red on the broad street today. VIX: more fear than fear itself? A big day for energies. Lululemon missed their earnings mark.  Odd Block: An update of recent activity in...
Posted June 13th, 2014

Option Block 346: Say Hello to Exposure Fees

Trading Block: A sea of red on the broad street today. VIX: more fear than fear itself? A big day for energies. Lululemon missed their earnings mark. 

Odd Block: An update of recent activity in Dollar General (DG), newsletter put seller trade in Galena BioPharma Inc (GALE), risk reversals/collar in Jet Blue Airways Corp (JBLU), and size put buyers trade in the iShares Dow Jones Transport (IYT)

Xpress Block: A lot of activity in portfolio margining. More news on the upcoming futures for IdeaHub.

Strategy Block: An update on the ratio-hedged risk reversal on Apple. Finding ways to finance the hedge. 

Mail Block: Listener questions and comments. 

Question from Ivan - I have heard some people say I should not sell naked short puts because of ?gap risk?. I always respond that it is the same thing as working a limit order in the stock. Who is right - me or these worry warts?

 

Around the Block: Thursday: Import price index and business inventories are estimated to climb. The World Cup begins and the rest of the world will be on vacation for the next month.


Option Block 345: Beating the Street on Dollar General

Option Block 345: Beating the Street on Dollar General Trading Block: A mild day on the street. Apple stock split. A possible Deutsche Bourse sale of ISE. Odd Block: Activity review from last week: Carl Icahn disclosed a 9.4% stake in Dollar General...
Posted June 10th, 2014

Option Block 345: Beating the Street on Dollar General

Trading Block: A mild day on the street. Apple stock split. A possible Deutsche Bourse sale of ISE.

Odd Block: Activity review from last week: Carl Icahn disclosed a 9.4% stake in Dollar General (DG) and shares soared. We knew something was up last week. Call buyers in USG Corp (USG), puts rolls trade in Kodiak Oil and Gas Corp. (KOG), and crazy call buying in Clorox Group (CLX)

Xpress Block: Apple dominates the housekeeping, speculating on Lululemon earnings, and a stealth rally in Oil

 

Mail Block: Listener questions and comments

  • Question from Alexander Soja - Love the program. I listen on my commute to and from work. I would like to know more about the broken wing butterfly. What is this strategy and why would it be useful?
  • Question from MrTeenzy - All this talk about colocation for HFT firms. But do brokers like OX not also co-locate to speed up transaction times? In which case, is colocation not benefiting the retail guy like me?

 

Around the Block: S&P 500 edging toward the 2,000 mark. It could happen in the next few weeks. Lululemon earnings 6/12.

 


Option Block 344: Premium Palooza in Dollar General

Option Block 344: Premium Palooza in Dollar General Trading Block: A great day on the market. Amazon rises after announcing that they will be making an announcement. What is lurking under the low VIX? Complacency? Odd Block: Unusual activity in...
Posted June 6th, 2014

Option Block 344: Premium Palooza in Dollar General

Trading Block: A great day on the market. Amazon rises after announcing that they will be making an announcement. What is lurking under the low VIX? Complacency?

Odd Block: Unusual activity in Tesoro Corp (TSO), Target Corp. (TGT), Dollar General Corp. (DG), and NuStar (NS)

Xpress Block: Alex discusses about how a few select clients may be able to trade commission free. Enhanced capabilities in Schwab mobile, including Hub for Futures. 

 

Around the Block: Friday = Unemployment Numbers and Non-Farms


Option Block 343: AAPL Ratio Spread Madness

Option Block 343: AAPL Ratio Spread Madness Trading Block: A slow day on the street today. All Apple - all Amazon - nothing below the "A"s. OCC announces cleared contract volume declined in May, while 2014 volume remains up.   Odd Block: Call...
Posted June 3rd, 2014

Option Block 343: AAPL Ratio Spread Madness

Trading Block: A slow day on the street today. All Apple - all Amazon - nothing below the "A"s. OCC announces cleared contract volume declined in May, while 2014 volume remains up.

 

Odd Block: Call ratio spreads trade in Apple Inc. (AAPL), long-term closing call sale in Fortress Investment Group LLC (FIG), closing put buys before earnings trade in Ascena Retail Group Inc. (ASNA), and opening call seller in The Western Union Co (WU)

 

Xpress Block: Alex discusses Idea Hub for Schwab Mobile and possibly Futures Trading.

 

Strategy Block: Ratio Spreads: when and how to use them and why they teeter on the edge of dangerous.

 

Around the Block: ADP private-sector job growth & weekly jobless claims on the horizon. 


Option Block 342: Mini Death Knell

Option Block 342: Mini Death Knell Trading Block: A mild uptick on the street today. Apple rallies and the market follows. With the VIX moving closer to its 9.39 historic low, many commentators are now discussing it as a "complacency index," writes...
Posted June 2nd, 2014

Option Block 342: Mini Death Knell

Trading Block: A mild uptick on the street today. Apple rallies and the market follows. With the VIX moving closer to its 9.39 historic low, many commentators are now discussing it as a "complacency index," writes John Nyaradi of Wall Street Sector Selector

 

Odd Block: Risk Reversal trades in iShares MSCI Australia Fund (EWA), call buyers trade in Scientific Games Corp. (SGMS), and call buy-writes trade in Ambev SA (ABEV)

 

Xpress Block: Alex discusses the recent NASDAQ notice and the death of minis.

 

Mail Block: Listener questions and comments

Comment/Question from Kaiser Dog - Enjoyed todays podcasts. I felt the Viceroy came back with some very pertinent information. I myself have been using my iPad and even My iPhone a few times to initiate trades. The Mobile Trading option is gaining traction and I agree with Alex's sentiment that this has smoothed out trading flow. Especially in times that would be historically light volume. I myself prefer my Laptop trading station I have custom built. With that said the reality is that raising a 4 year old son takes a lot of time and attention. My Mobile App allows me to stay on top of things and still be a parent. The Mobile trading option is a huge success. The Polar Opposite of "Mini Options" in my opinion. I enjoyed the swing to a positive story from the depression that HFT and Minis cause me. lol.

Question from DeGaul - What does the OH/Monster merger mean for the options brokerage landscape going forward?

Question from Mr Teenzy - All this talk about colocation for HFT firms, but do brokers like OX not also co-locate to speed up transaction times? In which case, is colocation benefiting the retail guy like me?

 

Around the Block: Economic Data: First-quarter GDP revision (Thursday) and Personal Income and Spending, Chicago PMI and University of Michigan consumer sentiment (Friday).

Fed talk:  Fed's Pianalto: 'Inflation and Monetary Policy'


Option Block 341: Weird Activity In Colgate-Palmolive

Option Block 341: Weird Activity In Colgate-Palmolive Trading Block:  A surprising VIX given the upcoming holiday weekend. Record low levels in some beloved Option Block names. We saw a massive upside call going up in VIX early this week. The...
Posted May 23rd, 2014

Option Block 341: Weird Activity In Colgate-Palmolive

Trading Block:  A surprising VIX given the upcoming holiday weekend. Record low levels in some beloved Option Block names. We saw a massive upside call going up in VIX early this week. The U.S. options exchanges are working jointly toward the development of a uniform obvious error rule to nullify or adjust transactions that meet the definition of an obvious or catastrophic error. OCC and US Options Exchange adopt pre and post-trading risk control principles. 

Odd Block:

  • Closing puts buyers trade in HMS Holdings Corp. (HMSY)
  • Puts sellers trade in Big Lots, Inc (BIG)
  • Call sellers trade in Colgate-Palmolive Co. (CL)
  • Closing put sale in US Steel Corp (X)

Xpress/Mail Block: XpressMail?.get it?

OX questions this week:

  • Comment from CBarles - I agree with Mark and the Viceroy - OX needs a "caps lock" detector on the website login page. I am always forgetting that and having to log in twice - very annoying. Please save me from myself. 
  • Comments/Questions from Kaiser Dog - Mark, First let me thank you for using my post in the Mail Call. Made my day yesterday. If you liked that? I have a lot more where that came from.  Just got done listening to "Talking Volatility" and enjoyed the show. I must confess I am not an "Option Pit" guy. Just a retail investor who has a big hunger for anything option related and A fan of the "MeatBall" and the Show in general. I bought Flash Boys the day it was released and have read it about 5 times. Thank you for your work on this front as well. Kudos to your unbiased reports. Please keep them coming. My question for the panel today is as follows: There has been allot of talk about Bubbles. I thought Hubba Bubba and Big League Chew were filling for IPO's there has been so much chatter on CNBC and other media sites. lol. The element that seems to be missing? Undue euphoria and enthusiasm. I do not see it. I do not see Retail participating in any big way. Volume is anemic and artificial (HFT) in my opinion. I would love to hear the panel's take on the topic of A Market Bubble. In addition I would like to hear every ones take on the "State" of the "Retail" investor. Thanks again! Cheers.

 

Around the Block:  Initial Jobless Claims Data and Homes Sales Report on Thursday -- Claims are expected to be higher. Notes from the FOMC meeting.


Option Block 340: Revenge of the Guts Strangle

Option Block 340: Revenge of the Guts Strangle Trading Block: What will bring back volatility? A black swan event? Russell Rhoads said via MarketWatch that investors are showing a ?justified complacency? given that recent VIX jumps don't...
Posted May 20th, 2014

Option Block 340: Revenge of the Guts Strangle

Trading Block: What will bring back volatility? A black swan event? Russell Rhoads said via MarketWatch that investors are showing a ?justified complacency? given that recent VIX jumps don't stay at those levels for long. "One-off events," such as the Ukraine, get investors' attention for a while and then wanes. It's enough for a VIX spike but not enough to sustain it. From a black swan event in the economy and markets, it would have a greater, deeper effect.

Odd Block: Calls buyers trade in Oncothyreon Inc. (ONTY), closing call buyers and put buyers trade in Gastar Exploration Inc (GST) - a closing guts strangle? Closing call sellers trade in Chemtura Corp (CHMT), and calls roll in iShares MSCI Brazil Index (EWZ).

Xpress Block: Alex talks recent news from Charles Schwab (CEO suggests regulators require brokerage firms to disclose payment for order flow), as well as VIX ETNs.

Around the Block: Is the housing market really coming back? The National Association of Realtors will release April existing home sales data Thursday and the U.S. Census Bureau reports sales numbers for newly constructed homes is out Friday.  Earnings this week include Home Depot, Lowe's, Campbell Soup and Hewlett-Packard.


Option Block 339: Potential Front Running Activity

Option Block 339: Potential Front Running Activity Trading Block: Today we have a very special trading block segment from Uncle Mike Tosaw about Russell and RVX vol. Is VIX in a deep sleep? Odd Block: Combos trade in the iShares MSCI Emerging...
Posted May 16th, 2014

Option Block 339: Potential Front Running Activity

Trading Block: Today we have a very special trading block segment from Uncle Mike Tosaw about Russell and RVX vol. Is VIX in a deep sleep?

Odd Block: Combos trade in the iShares MSCI Emerging Markets (EEM), call spreads trade in Travelers Companies (TRV), calls trade in Expeditors International of Washington (EXPD), and calls trade in Chemtura Corp (CHMT)

Xpress/Mail Block: We are mixing it up today with some questions from OX clients:

  • Please explain put/call parity.  
  • A very successful trader friend says ITM debit spreads are superior to credit spreads and I do not get it.
  • Can the probability of a calendar be easily calculated?

Option Block 338: The Great Mobile Trading Debate

Option Block 338: The Great Mobile Trading Debate Trading Block: A strong surge to the upside, Russell leading the charge. Russell 2000 index (RTY) option costs at Feb 2007 levels. Who is playing out in this product? Apple and Beats headphones - two...
Posted May 13th, 2014

Option Block 338: The Great Mobile Trading Debate

Trading Block: A strong surge to the upside, Russell leading the charge. Russell 2000 index (RTY) option costs at Feb 2007 levels. Who is playing out in this product? Apple and Beats headphones - two Tosaw favorites.

 

Odd Block: Combos, rolling short stock position in Denderon Corp. (DNDN), call buyers trade in VeriFone Systems Inc. (PAY), call buyers trade in Hillshire Brands Co. (HSH), and put spread sellers trade in WisdomTree India Earnings (EPI)

 

Xpress Block: Alex talks about mobile app usage by the OX clientele and market-wide.  

 

Strategy Block: Mike Tosaw discusses covered calls going in the money - and how that is a good thing.

 

 

Around the Block: Upcoming economic reports: Retail Sales (Tuesday), PPI (Wednesday) and CPI (Thursday). Still more earnings: CSCO - 5/14 after, COSI - 5/15 after, TTWO - 5/13 after. 


Option Block 337: Looking Back on the Flash Crash

Option Block 337: Looking Back on the Flash Crash Trading Block:  Options traders were preparing for 10% swings of Tesla before week's end based on a straddle. On Wednesday, volume in Twitter options increased fivefold, all but erasing value in...
Posted May 9th, 2014

Option Block 337: Looking Back on the Flash Crash

Trading Block:  Options traders were preparing for 10% swings of Tesla before week's end based on a straddle. On Wednesday, volume in Twitter options increased fivefold, all but erasing value in a series of bullish contracts. ICE reports record Q1 profit. After its June IPO, Euronext plans to be listed on three of its exchanges. May 6 marks the fourth anniversary and it's a reminder that not much has changed. 

Odd Block: Put sellers in BBEP, call spreads trade in Cameco Corp., calls trade in DLX, closing put seller in FTR.

Strategy Block: Calendars vs. verticals, part deux. 

  • Comment from Erik Ruehr re: Mike Tosaw?s survey. I say vertical spreads are better now. Thanks for the show.
  • Comment from Tom S.: In response to Uncle Mike?s survey: In general, I?d say vertical spreads trade much better now.
  • Comment from LJO: Put me down in the plus column for verticals.

Around the Block: Some earnings left: CSCO, TTWO, CBOE, GRPN. Macro, macro, macro, 10-year, 30-year, the Fed. Will social media/tech stocks hold up?


Option Block 336: Earnings and the Death of Minis

Option Block 336: Earnings and the Death of Minis Trading Block: A mild day on the street. Apple catching a bid. Tuesday?s computer error at NYSE ACRA and NYSE AMEX options markets resulted in almost 20,000 erroneous trades.   Odd Block:...
Posted May 6th, 2014

Option Block 336: Earnings and the Death of Minis

Trading Block: A mild day on the street. Apple catching a bid. Tuesday?s computer error at NYSE ACRA and NYSE AMEX options markets resulted in almost 20,000 erroneous trades.

 

Odd Block: Call buyers trade in Nike Inc. (NKE), call sellers trade in Gilead Sciences, Inc. (GILD), put spreads trade in iShares Barclays 7-10 year Treasury ETF (IEF) - closing roll, and closing put buyers trade in NQ Mobile Inc. (NQ).

 

Xpress Block: Late May/Early June is the target date for enhancements to OX mobile, which will include single-leg walk limits, as well as OSO and OTO orders.

 

Mail Block: In which Option Pit steals the show.

Website comment from Kaiserdog76: Loved todays Option Block. Especially the focus on Mini Options and their total failure. Mark Sebastian said it best when he talked about the people that really need a break in the Market getting "Bo Didley Squat" when the dust settles. I have all ways hated Minis. Talk about a getting "Stupid" on an option trade. One tenth the size but %100 the commission. Spreads wider than Honey Boo Boo. This product is a total joke and in my humble opinion never really lived. This was dead on takeoff.

Website comment from Meatball-in-training:  Great show. The question from one of your listeners about the trade scanner that keeps popping up two standard deviation ITM debit spreads was very interesting. Is it perhaps the case that the scanner is ignoring the cost of carry on the premium itself when looking at prospective trades? That is the sort of thing I can imagine someone overlooking when programming a trade scanner and for wide verticals with lots of time to expiration, it might be enough to make expensive debit spreads look superior to their synthetically equivalent credit spreads. I am one of Mark and Andrews?s students, so if this is all wrong, feel free to blame them.

Tweet from OtC bOuNcEr$ @stevesokol21 - Is there a way to run a scan anywhere to find more stocks with that pattern? Thanks a lot for the help

 

 

 Around the Block: Still some more earning left out there: ATVI - 5/6, CBOE - 5/6, DIS - 5/6, EA - 5/6, GRPN - 5/6, TSLA - 5/7 & PCLN - 5/8


Option Block 335: The Giovinazzi/Tosaw Spectacular

Option Block 335: The Giovinazzi/Tosaw Spectacular  Trading Block: A slow day on the market today. TLT was one of the few things to light up the tape. Yellen, the Fed and bond buying. An update of the VIX and S&P with Andrew.  Odd...
Posted May 2nd, 2014

Option Block 335: The Giovinazzi/Tosaw Spectacular 

Trading Block:

A slow day on the market today. TLT was one of the few things to light up the tape. Yellen, the Fed and bond buying. An update of the VIX and S&P with Andrew. 

Odd Block:

Call buyers in Auxilium Phramaceuticals, Inc (AUXL)

Call buyers jump into EQT Corp. (EQT)

Call spreads trade in Verso Paper Corp (VRS)

Calls roll in Mechel OAO (MTL)

Strategy Block:

A question/poll for our audience: Given the level of the VIX, is this market a better environment for doing verticals spreads or horizontal spreads?

Around the Block:

More earnings: XOM, LNKD, KRFT and EXPE. The biggest news will come for the jobs report on Friday. Will gold continue to slide? GDP?


Option Block 334: Are Mini Options Dead?

Option Block 334: Are Mini Options Dead? Trading Block: Close to close is only half the story today. Russell and the NASDAQ lead the way. Stocks that pay a nice dividend are clear outperforming stocks that do not. Three candidates selected to oversee...
Posted April 29th, 2014

Option Block 334: Are Mini Options Dead?

Trading Block:

Close to close is only half the story today. Russell and the NASDAQ lead the way. Stocks that pay a nice dividend are clear outperforming stocks that do not. Three candidates selected to oversee OPRA. 

Odd Block:

Puts go up in Diebold Inc (DBD)

A three-way trade goes up in Range Resources Corp. (RRC)

Calls buyers go up in Norhtstar Realty Finance Corp. (NRF)

Put spread sales trade in Bank of America Corp (BAC) - potential roll down

         

Xpress Block:

A continuing rotation out of momentum into more quality names. Apple, Amazon IBM and Microsoft were all hot on the OX desk today.

Strategy Block:

A two-part strategy block today. First, a few current strategies Uncle Mike is employing. Second, a trade for people who may not have been able to pull the trigger on a selling a bull put spread when the market was down today.  

Mail Block:

Question from Jason Kruse - Has probably been asked & answered many times, and I have missed it.. Will $AAPL minis continue to trade after the split?

Around the Block:

A lot of economic news this week, including the Fed two-day FOMC meeting. On Monday, pending home sales and Dallas Fed manufacturing. More earnings: TWTR, MAR, CME & LKND


Option Block 333: AAPL, AMZN Earnings Roundup

Option Block 333: AAPL, AMZN Earnings Roundup Trading Block: A mild rally on the street today. Apple earnings play-by-play with Uncle Mike Tosaw. A very boring Apple earnings - will this become the next Microsoft? What is the future for Apple?...
Posted April 25th, 2014

Option Block 333: AAPL, AMZN Earnings Roundup

Trading Block:

A mild rally on the street today. Apple earnings play-by-play with Uncle Mike Tosaw. A very boring Apple earnings - will this become the next Microsoft? What is the future for Apple? What is the future of the Minis? Will 7 to 1 be the death nail?

Odd Block:

Strangles, calls and puts trade in Eagle Rock Energy Partners LP (EROC), closing call buys trade in SandRidge Energy Inc (SD), closing call buys in iShares MSCI Japan ETF (EWJ), and put buyers trade in AmerisourceBergen Corp. (ABC) 

Xpress Block:

A very busy day at OX, but one that is not represented in the numbers. A lot of paper in FB and APPL going into earning.

Mail Block:

Question from Nick Snow - Hey Mark. Second time writer here. I was recently scanning brokers out there and have listened to almost everything on options insider. I found one that is highly regarded by barons and some there's for price and technology recently. One of their "proprietary scanning" functions is meant for spread traders. I opened a virtual trade account and played with it and it is all out of the money low Vol 2 standard deviations debit spreads. Is this not a complete love your broker trade? Is there something more that they can build in a spread debit trade that I do not know?

Question from George - You posted a chart recently on Options Insider and unfortunately I do not know what "P/C" mean. Would you please explain it for me? Many thanks. Your site is very interesting and readable.

Question from A. Berger - When are futures options going live in Idea Hub? Thanks and I love the show. P.S. - Can OX add a caps lock indicator to the website like they have in iTunes? It would make it easier to log on since I am always forgetting about my caps lock.

Question from Doc Phil - Why do so many options traders fall to the ?dark side?? You do not see many short sellers in equities. Is premium selling just more attractive or is there something about options traders?

Around the Block:

A final look at MSFT, AMZN and APPL after the bell. 

More earning on the horizon: MAR - 4/29NOK - 4/29TWTR - 4/29LNKD - 5/1 & CME - 5/1.


Option Block 332: How to Waste a Good Hedge

Option Block 332: How to Waste a Good Hedge Trading Block: Back to rally mode on the street. Vol retreats yet again. Names before the bell: Haliburton (HAL), Hasbro (HAS) - After: Netflix (NFLX)   Odd Block: Put sellers trade in SBA...
Posted April 22nd, 2014

Option Block 332: How to Waste a Good Hedge

Trading Block: Back to rally mode on the street. Vol retreats yet again. Names before the bell: Haliburton (HAL), Hasbro (HAS) - After: Netflix (NFLX)

 

Odd Block: Put sellers trade in SBA Communications Corp. (SBAC), call buyers trade in Merrill Lynch/Market Vectors Semiconductors ETF (SMH), review from 3/27/14 - calls trade in Ares Capital Corp. (ARCC) (this was a loser), and a review from 3/24/14 - call buyers jump in Quest Diagnostics Inc. (DGX) (possible winner).

 

Xpress Block: Apple and Facebook dominate trades, though, a lighter than expected day today.

 

Strategy Block: This week Uncle Mike talks about expiration day risk - just in case some of you got burned last week.

 

Around the Block: Earnings season shifts into full gear. On tap for this week:

 

APPL - 4/23, FB - 4/23, F - 4/25, GM - 4/24 before, MSFT - 4/24 after, UAL - 4/24 before & AMZN - 4/24 after.


Option Block 331: Maximizing Your IRA

Option Block 331: Maximizing Your IRA   Trading Block: It was a pretty slow day, with all major indices basically unchanged on the day. Expiration issues prompted many phone calls to the optionsXpress desk. Earnings aren?t running over...
Posted April 21st, 2014

Option Block 331: Maximizing Your IRA

 

Trading Block: It was a pretty slow day, with all major indices basically unchanged on the day. Expiration issues prompted many phone calls to the optionsXpress desk. Earnings aren?t running over premium sellers like the last time. Pit trading helped out the CME last week. HFT narrative still active in the market. 

Odd Block: Big call buy in Wal-Mart Stores Inc., May call spread trades in Western Digital Corp. (WDC), put buying in Target Corp. (TGT), and closing out a huge position in Lloyds Bank of London (LYG).

Xpress Block: Frenzy about a shortened expiration week, particularly with indexes. 

Mail Block: Listener questions drive the conversation.

 

  • What to do with a losing position?
  • Day trading commissions and tax implications.
  • Maximizing a Roth IRA.

Option Block 330: Falklands War Volatility

Option Block 330: Falklands War Volatility Trading Block: A mild day on the street. The Russian incursion of Ukraine is still having its effects on the market. CBOE VXST off to a good start. Hedge fund VIX bets on the decline. Odd Block: Calls go up...
Posted April 15th, 2014

Option Block 330: Falklands War Volatility

Trading Block: A mild day on the street. The Russian incursion of Ukraine is still having its effects on the market. CBOE VXST off to a good start. Hedge fund VIX bets on the decline.

Odd Block: Calls go up in Carnival Corp. (CCL), calls trade in Millennial Media (MM), call spreads trade in IAC Interactive Corp (IACI), and puts trade in Dean Foods Co. (DF).

 

Xpress Block: Happy Tax Day! Market are thin, given this shortened week. Yahoo and Google on the tape at OX.

 

Strategy Block: Uncle Mike revisits the topic of selling puts in a down market.

 

Around the Block: A big earnings week! 4/15: SCHW (before) YHOO, INTC; 4/16: BAC (before), GOOG, IBM; 4/17: GS (before), AMD, CMD; 4/21: NFLX.

 

 


Option Block 329: The Great SPY vs. SPX Iron Condor Debate

Option Block 329: The Great SPY vs. SPX Iron Condor Debate Trading Block: A sea of red on the street today. A lot of directional paper going through OX today. Terrible data coming out of China. CBOE Short-Term VIX product (VXST)...
Posted April 11th, 2014

Option Block 329: The Great SPY vs. SPX Iron Condor Debate

Trading Block: A sea of red on the street today. A lot of directional paper going through OX today. Terrible data coming out of China. CBOE Short-Term VIX product (VXST) launches.

 

Odd Block: Getting the RDA of RDA puts (RDA), big put blocks trade in Bill Barrett Corp. (BBG), and IV jumping in Tower Group International Ltd. (TWGP).

 

Xpress Block: A mass exodus from momentum stocks. What exactly caused this?

 

Mail Block: Commissions and Buy/Writes

  • Question from Brian Collamer - Mark mentioned he thought U.S. retail accounts should be trading SPY rather than SPX options in a recent Options Block episode. I 'm selling Iron condors in SPX {2 contracts, just learning...} When I looked at the same size trades in SPY {20 contracts}. The commissions were killer. I like the idea of better fills in SPY and no open outcry trading, but seems like the commissions/fees really make them untenable at my levels. Am I missing something? Thanks for the great podcasts!! Brian
  • Question from AJ - I was listening to The Option Block #266 Juice & Paper and you guys mentioned how you saw unusual activity in FCX which looked like a Buy/Write trade. My question: How can you tell when an option trade is a Buy/Write or options paired with shares trade? Thanks.

 

Around the Block: What will pick up the market?


Option Block 328: Earnings Season Is Back

Option Block 328: Earnings Season Is Back Trading block: Momentum has been taken out of the market for the past two days - which way will we move? Earnings season is upon us. GLD rundown with Uncle Mike.   Xpress Block: Some hedges were being...
Posted April 8th, 2014

Option Block 328: Earnings Season Is Back

Trading block: Momentum has been taken out of the market for the past two days - which way will we move? Earnings season is upon us. GLD rundown with Uncle Mike.

 

Xpress Block: Some hedges were being lifted today. Google the big name on the OX desk.

 

Strategy Block: This week, Uncle Mike Tosaw discusses selling puts in a down market.

 

 

Around the Block: Bank earnings a little later this week. What more could come out of Ukraine? Is "buy the dip" still there?


Option Block 327: You, Too, Can Be an FBI Junior Agent

Option Block 327: You, Too, Can Be an FBI Junior Agent Trading Block: March options volume rose 14%. ADV was 16,931,924 contracts, equity options volume was 321,641,596 contracts. FBI to investigate high frequency trading - the FBI wants your...
Posted April 4th, 2014

Option Block 327: You, Too, Can Be an FBI Junior Agent

Trading Block: March options volume rose 14%. ADV was 16,931,924 contracts, equity options volume was 321,641,596 contracts. FBI to investigate high frequency trading - the FBI wants your help!

 

Odd Block: Big call purchases in DFC Global (DLLR), buy-write in Williams Companies, Inc. (WMB), bullish bet in Resolute Energy (REN), and big block of puts trade in Corning (GLW)

Xpress Block: Google now trades on an adjusted basis: Class A and Class C shares.

 

Mail Block: Tell us what you want to know.

  • Question from Wael Randa - What service do you offer to help options traders. Also I am looking for a scanner to spot big order block by investors. Any free or paid service. Thanks a lot, Samuel.
  • Question from John King - @Options could you discuss trade entry for Iron butterfly/condor (ignoring commish)-all at once vs. leg verticals vs. buy strangle then sell straddle?
  • Question from Fred Blackes - Geez, you guys are great.  Why is it that you were the only ones who read the FIO options actions April 25 2013 correctly?  Everybody else had the trader/Hedgie buying the Sept 24 calls. Do you offer any service for learning/advisory

 

 

Around the Block: S&P 500 hits another record. Unemployment report Friday. Earnings coming up next week. 


Option Block 326: Options Trading for Bitcoin

Option Block 326: Options Trading for Bitcoin Trading Block The Fed is not turning off the spigot anytime soon. Ukraine easing tensions combine to boost the market. Options trading for Bitcoins - Atlas 2.0 launched in Hong Kong and North America....
Posted April 2nd, 2014

Option Block 326: Options Trading for Bitcoin

Trading Block

The Fed is not turning off the spigot anytime soon. Ukraine easing tensions combine to boost the market. Options trading for Bitcoins - Atlas 2.0 launched in Hong Kong and North America. Regulatory rule unlikely for HFT. Author Michael Lewis releases a new HFT book - Flash Boys.

Odd Block

Puts trade in Genpact Limited (G), Call spreads trade in Grupo Televisa SAB (TV) and Call sales trade in iShares MSCI Emerging Markets ETF (EEM)

Xpress Block

Tesla and Amazon still retreating. Idea Hub for Schwab mobile is in its final days of testing - should be out in the next couple of weeks.

Strategy Block

Today, Uncle Mike discusses the importance of closing out short options.

Mail Block

Question from Dylan Harris - Hi, I started trading options about a year and a half ago and got burned a few times which made me realize I did not know nearly what I thought I did and sent me back to the drawing boards. I have spent the time since then learning as much as I can about different options strategies and trying them in virtual accounts. I have come to the conclusion that diagonal spreads fit me pretty well. The question I have is whether there are ways to use delta as a trigger to (in the case of diagonals) roll the short strike down and/or out and if so how successful have these been in implementation and which brokers have them? Thanks! Dylan

Around the Block

March 31 planting report. Janet Yellens speech. End of the first quarter.


Option Block 325: SPX vs. SPY vs. Steven Seagal

Option Block 325: SPX vs. SPY vs. Steven Seagal Trading Block: A mild day on the street. VIX cash taking a little breather. A lot of put buying in Google, Tesla, Netflix, Priceline, etc. Lululemon gets its first big pop in a while. TLT reaches a one...
Posted March 28th, 2014

Option Block 325: SPX vs. SPY vs. Steven Seagal

Trading Block: A mild day on the street. VIX cash taking a little breather. A lot of put buying in Google, Tesla, Netflix, Priceline, etc. Lululemon gets its first big pop in a while. TLT reaches a one year high.

Odd Block: Combos trade in the VIX, straddle trades in EQT Corporation (EQT), calls trade in Ares Capital Corp. (ARCC), and puts trade in SPDR Barclays Capital High Yield (JNK)

 

Xpress Block: Growth was in short supply today on the OX desk - a mass exodus. A mixed bag for the biotechs. Idea Hub is coming to Schwab mobile soon! Plus spot VIX products!

 

Listener Mail Extravaganza: Because if it?s going to be an extravaganza, why not make it about mail?

Question from John King - Could you discuss SPX vs SPY vs ES opts? Bid/Ask slip VS commish, Margin treatment, ex-div/exercise annoyance, etc.? Thanks! - Commish in my case are flat .75/cntr, no tkt chg. For ES opt its $3.65 thx!

Question from Nick Snow - Options block 323 - You mentioned on this show that RBS had a bunch of Aug 10 ATM volume today.  I noticed this also and I am not sure I get it. RBS has lots of problems with the queen and the LIBOR fees they pay from loans. I am not sure how I can phrase this so it?s tradeable but if any company where to have an IPO of a company owned with in. Would you buy calls on the company that was public because you assume the cash injection from the IPO would boost the stock of the parent? If you want to get more clarity around that I can but I am sure it will kill your ability to trade RBS. And as an options express account holder tell them to get flies on their scans instead of just condors. :)

Question from Nishant Pant - I love your show so much. Every morning at gym, I am listening to your podcasts instead of music like everybody else. One thing I am frustrated on the internet is everybody is just busy explaining what a straddle or strangle or any other thing is...instead of telling the practical things you need to keep in mind and you guys do such a great job in explaining the gotchas and the greeks which matter. Is it possible for you to add actionable ideas? Tomorrow GRPN is releasing earnings. Maybe you can build upon what you have already taught us and explain an actionable idea and tell us why you think a particular trade you are suggesting makes sense. I would pay for such a podcast at the blink of an eye. Just for the learning aspect of it.  Thanks again for your awesomeness.

 

 

Around the Block: Treasuries. Volatility. What will Russia do next? Buy the dip?a 52% guarantee. Short supply in growth issues. 


Option Block 324: Behold the Power of the Stupid

Option Block 324: Behold the Power of the Stupid Trading Block: A mild day on the street. Controversy over SPX settlement on Friday. Mutual fund use of options: public holding and trends (presented at RMC). Minis one year later - boom or...
Posted March 25th, 2014

Option Block 324: Behold the Power of the Stupid

Trading Block: A mild day on the street. Controversy over SPX settlement on Friday. Mutual fund use of options: public holding and trends (presented at RMC). Minis one year later - boom or bust? 

Odd Block: Call buyers jump in Quest Diagnostics Inc, (DGX), big call roll in Coronado Biosciences Inc. (CNDO), puts trade in Spectrum Pharmaceuticals, Inc. (SPPI), and call sellers in Prologis Inc. (PLD).

Xpress Block: Alex talks in depth about the SPX settlement controversy on Friday

Strategy Block: Tosaw discusses the "Stupid." What is it and when do you use it?

 

Around the Block: Watching and waiting to see what happens in the Ukraine. Parade of Fed people. What?s happening with the super cheap treasury vol?

 

 


Option Block 323: Rebar Futures Extravaganza

Option Block 323: Rebar Futures Extravaganza Trading Block: Russian President Vladimir Putin is an investor in Swiss-based oil trader Gunvor Group Ltd. Time for the global derivatives volume guessing game! Put on your thinking caps and guess the...
Posted March 21st, 2014

Option Block 323: Rebar Futures Extravaganza

Trading Block: Russian President Vladimir Putin is an investor in Swiss-based oil trader Gunvor Group Ltd. Time for the global derivatives volume guessing game! Put on your thinking caps and guess the winners in the various product categories: indexes, ags, metals, and more.

 

Odd Block: Calls spreads trade in Alpha Natural Resources Inc. (ANR); calls trade in Mast Therapeutics Inc. (MSTX); calls trade in Royal Bank of Scotland PLC (RBS), and: puts trade in iShares Japan fund (EWJ).

 

Xpress Block: New enhancements to the OX trading platform.

 

Mail Block: Thumped by Theta

Question from Theta Thumper: Here's a question for one of your shows (Options Insider maybe?): You often talk about hedging a portfolio. If you decide to do it the simple way and hedge by buying a long dated 'put' on the SPY (instead of using the VIX) is it better to buy a put at say 15-20% below the market for the full amount of your portfolio or use the same amount of cash you would have used for that to hedge closer to the money but with a smaller percentage of the portfolio? My concept is to use 1% of my portfolio per year as a hedge. Jim (Theta Thumper) Sisters, OR

 

 

Around the Block: Stock market edges higher after encouraging economic reports offset interest rate concerns.


Option Block 322: When 50 is the New 70

Option Block 322: When 50 is the New 70 Trading Block: The VIX was up 25% in the last week. FIA Boca update.  US derivatives exchanges have seen improved trading volume. In the US, three of the top five US exchanges grew in Feb. Odd Block:...
Posted March 18th, 2014

Option Block 322: When 50 is the New 70

Trading Block: The VIX was up 25% in the last week. FIA Boca update.  US derivatives exchanges have seen improved trading volume. In the US, three of the top five US exchanges grew in Feb.

Odd Block: Calls trade in UQM Technologies (UQM), call buyers jump into Silicon Image, Inc. (SIMG), puts trade in Montage Technology Group (MONT), and call sellers try on some DSW Inc. (DSW).

Xpress Block: A quiet day at OX. Some activity in triple digit names and the 10-year and the Bund.

 

Around the Block: Ukraine worries, Sundays referendum, US sanctions and Feb US data numbers.


Option Block 321: Old School Bullish Paper

Option Block 321: Old School Bullish Paper Trading Block:  A big selloff on the market today. Angela Merkel yells at Putin. A big day for the banks. The numbers are in! $21.64B derivatives traded in 2013. $12.22B of futures. $11.7B in equity...
Posted March 14th, 2014

Option Block 321: Old School Bullish Paper

Trading Block:  A big selloff on the market today. Angela Merkel yells at Putin. A big day for the banks. The numbers are in! $21.64B derivatives traded in 2013. $12.22B of futures. $11.7B in equity names. VXST options coming in April. More exchanges are on the way - for better or worse.

Odd Block: Some very interesting paper in IRDM, AG, TSM, and XRAY.

Xpress Block:  Three new OX products are nearly ready for release, IRIS - Integrated Rapid Information System, Idea Hub for Schwab mobile and Idea Hub for Futures.

Mail Block: 

  • Question from Illin' - Are the new Mt. Gox IOUs essentially the first Bitcoin derivatives?
  • Question from Joseph Riggs - Has OX ever thought about creating its own options product, that it could then promote to its customers? Is that even possible (legal), or are new products the sole domain of the exchanges? Is that why there are so many? They are all trying to get into the new product biz. 
  • Question from Ian Getz -  Basic question, is there HFT in the options market as there is in the equities?

Around the Block:  Still keeping an eye on Ukraine, as well as China banking. There might be some quite literal weekend risk. 


Option Block 320: Filling Your Britches with Fear

Option Block 320: Filling Your Britches with Fear   Trading Block: A mild selloff on the street today - a resounding meh! Congrats to Andrew for passing the Series 65 exam! A big day for energy. VXST: Is there any interest there?   Odd...
Posted March 12th, 2014

Option Block 320: Filling Your Britches with Fear

 

Trading Block: A mild selloff on the street today - a resounding meh! Congrats to Andrew for passing the Series 65 exam! A big day for energy. VXST: Is there any interest there?

 

Odd Block: Calls trade in Plug Power Inc. (PLUG), calls trade in MeetMe Inc. (MEET), call buyer with stock in Technology SPDR ETF (XLK), and buy-write in Encana Corp. (ECA)

 

Xpress Block: An update on energy/nat gas trading at OX. A very quiet day; are we in the eye of the storm.

 

Strategy Block: Uncle Mike Tosaw discusses some things to consider if you want to collect some income while still being long a stock.

 

 

Around the Block: Not much on the earnings front. Ukraine. Boeing.


Option Block 319: Why Would Anyone Do That?

Option Block 319: Why Would Anyone Do That? Trading Block Indexes are at the same level as this morning but the S&P 500 could hit another record close. VIX high on the continuing drama in Ukraine. Staples falls on disappointing quarterly numbers....
Posted March 7th, 2014

Option Block 319: Why Would Anyone Do That?

Trading Block

Indexes are at the same level as this morning but the S&P 500 could hit another record close. VIX high on the continuing drama in Ukraine. Staples falls on disappointing quarterly numbers. Federal Reserve data released on Thursday. Ukraine and Nat Gas. Jobless claims Thursday - Nonfarms Friday. 

Odd Block

Puts trade in James River Coal Company (JRCC), puts trade in CommonWealth REIT (CWH), buy-write traders in MeetMe (MEET) and long close in SPDR KBW Regional Bank ETF (KRE)

Xpress Block

Alex clears up the confusion caused by the upcoming dividend of the Qs. Soda Stream lit up the tape late in the session.

Mail Block

Question from J. Charles - My question for the all-star panel is about analytics platforms. I have heard you guys mention a variety of different suites, live LiveVol. I pretty much just use my brokers tools and they work fine for me. I can pull up the options chains, click on the strikes and options I want to trade, click on the option to enter a trade and all that stuff. I can also pull up skews and research. It really does the job for me. What is ti that these other platforms offer you that would be worth paying $200+ a month in extra fees? Sorry but I am no an OX customer - although the show is pulling me in that direction. Hope that does not hurt my chances of being featured on the program.

Comment from Bryan Nic - @Options Just pulled up OB on your app. Hundreds of episodes waiting for me. Thats serious streaming goodness. Commute is covered now. Thx.

Question from Avent - Bought 50 ZNGA Mar 5 calls for $.17 last month. They are sitting around $.60 now. What should I do - sell? Sell half and let the rest ride? Roll to April 6 calls for $.28? Take the stock and then write covered calls against it? I am still mildly bullish on ZNGA, but worried about a near term correction.

Question from Phillip Gregory, Dallas, TX - I like your advice about writing puts to get long stock. But I keep hearing people warning me about gap risk. What exactly are they talking about? Is this something unique to options or are limit stock orders just subject to gap risk?


Option Block 318: The Putin Puts

Option Block 318: The Putin Puts Trading Block: Putin?s show of force in Crimea spooks the street. VIX cash sails back above the 16 handle. Ukraine and Nat Gas craziness. Alex has a story: Trading firm Jump Trading LLC gives $25 million to...
Posted March 4th, 2014

Option Block 318: The Putin Puts

Trading Block: Putin?s show of force in Crimea spooks the street. VIX cash sails back above the 16 handle. Ukraine and Nat Gas craziness. Alex has a story: Trading firm Jump Trading LLC gives $25 million to medical research project.

Odd Block: Puts sellers trade in Market Vectors Russia ETF (RSX), calls trade in The Fresh Market Inc. (TFM), cpreads trade in EXACT Sciences Corp. (EXAS), and put buyers trade in JC Penney (JCP)

 

Xpress Block: The dominate trading at OX today was in metals, crude oil, and nat gas - coffee hit a record high.

 

Strategy Block: Tosaw reaches out to all the eternal bulls, such as himself

 

 

Around the Block: What will Putin do? Is Argentina on the back burner for now? Goldman?s big analyst meeting is tomorrow (3/4). Jobless claims on Thursday, and non-farms on Friday.


Option Block 317: The Old Goldman Bait and Switch

Option Block 317: The Old Goldman Bait and Switch Trading Block: A mild rally on the street today. JCPenney on the move, jumping as high as 26%, its greatest one-day percentage gain in least 30 years! Tesla announced on Wednesday its big expansion...
Posted February 28th, 2014

Option Block 317: The Old Goldman Bait and Switch

Trading Block: A mild rally on the street today. JCPenney on the move, jumping as high as 26%, its greatest one-day percentage gain in least 30 years! Tesla announced on Wednesday its big expansion plans will be partially funded through a $1.6 billion bond issue. Goldman?s investor day study.

Odd Block: Call buyers in American Axle and Manufacturing (AXL), both calls and puts trade in CBL & Associates Properties, Inc. (CBL).

Xpress Block: Some hedging going on: VIX call buying, SPDR put buying. Customers seem to be getting nervous.

Mail Block: The all-stars will take your questions now.

  • Question from Concerned Spreader: I have a question for the mail block on the option block program. I would like to know if there is a special procedure for entering ratio-type spreads on the OX website. Whenever I try to enter any spread trade, from the XSpreads ticket, it always defaults to the same size for each leg. When I try to change that, it gives me a popup saying that each leg must be the same size. I wanted to buy some calls but did not have enough capital in my account to also sell the equal number of puts to finance them. So I wanted to trade what amounted to a risk reversal on a ratio. I tried simply adding a leg to my call trade ticket without success. I tried the combo, straddle, butterfly and condor tabs in the XSpreads ticket also with no luck. I suppose my only alternative is to execute the legs separately and then incur multiple ticket changes. Perhaps OX need to ass a ratio tab to the XSpreads ticket? Please let me know if I am missing something obvious.
  • Question from NTaleb - Why do you think so much options unusual activity is focused on calls instead of puts? There are just as many negative surprises as positive surprises lurking out there.
  • Comment from Chitim - Just used the app to listen to option block during my flight to San Fran. Always had problems streaming your stuff on my HTC One because Android sucks for streaming podcasts. But this worked like a charm! I downloaded it ahead of time and it was ready to go when we took off. Definitely preferable to the inflight movie. Also, why does Andrew always sound so surprised to be on the show? Keep them coming!

 

 

Around the Block: There is a disconnect between realized and implied vol. Russian tough talk. SPX closing high?why can?t people accept the market at this level? Is it time to sell S&P? Volatility in the sovereign debt market is astounding.  Astounding!


Option Block 316: The Great Put Roll Down

Option Block 316: The Great Put Roll Down Trading Block: A strong rally on the street. Vol is holding up well despite the rally. SolarCity and Sina today after the bell. Odd Block: Review from 12-30-13: Call buyers trade in Mattel Inc. (MAT)....
Posted February 25th, 2014

Option Block 316: The Great Put Roll Down

Trading Block: A strong rally on the street. Vol is holding up well despite the rally. SolarCity and Sina today after the bell.

Odd Block: Review from 12-30-13: Call buyers trade in Mattel Inc. (MAT). Plus, calls trade in Nvidia Corp. (NVDA), put spreads trade in WisdomTree India Earnings Fund (EPI), put buyers in New York Community Bank, Inc. (NYCB), and put sellers in Infinity Pharmaceuticals Inc. (INFI)

Xpress Block: Netflix, Priceline, Tesla all lighting up the tape. Facebook has become the new Lululemon.

 

Strategy Block: Uncle Mike Tosaw discusses how to protect a put spread.

 

 

Around the Block: Mobile World Congress may have big announcements in the mobile space. An update on SolarCity (SCTY). Jobless claims on Thursday.


Option Block 315: The Great Iron Fly Vs. Condor Debate

Option Block 315: The Great Iron Fly Vs. Condor Debate Trading Block: Market up 0.5%, Facebook buys WhatsApp for $19B, and Groupon takes a wild ride after hours Odd Block: Put buying in Veeco Instruments Inc. (VECO), puts trade in iPath S&P 500...
Posted February 21st, 2014

Option Block 315: The Great Iron Fly Vs. Condor Debate

Trading Block: Market up 0.5%, Facebook buys WhatsApp for $19B, and Groupon takes a wild ride after hours

Odd Block: Put buying in Veeco Instruments Inc. (VECO), puts trade in iPath S&P 500 VIX Short Term ETP (VXX), put spreads trade in EcoLab Inc. (ECL), and put spreads trade in iShares MSCI Emerging Markets (EEM) ETF.

Mail Block: Alex wanted another go at Snowbird's question from last week.

 

  • Question from Infimy - What is the ASPs favorite options analytics suite?
  • Comment/Question from Hack3 - Bitcoin imploded after you guys trashed it on Options Block. Coincidence?
  • Question from John King - @Options Could you discuss preference of Iron Fly to regular butterflies, ICs, etc? Always neutral or OK with one side in money? Timing?

Option Block 314: Late-Night Gamma Scalping

Option Block 314: Late-Night Gamma Scalping Trading Block: Catching an updraft on the street today. A decent slate of earnings helped bolster the market.  New Fed Chief didn't completely destroy the market with her first remarks. WSJ writing...
Posted February 14th, 2014

Option Block 314: Late-Night Gamma Scalping

Trading Block: Catching an updraft on the street today. A decent slate of earnings helped bolster the market.  New Fed Chief didn't completely destroy the market with her first remarks. WSJ writing about someone purchasing 3200 Feb $15 calls in Magic Jack before big newsletter mention. Big day for Apple.

Odd Block: Put sellers finance call buyers in Mechel OAO (MTL), and calls trade in E Commerce China Dangdang (DANG).

Xpress Block: The classic names were lighting up the OX desk today: Apple, Solar City, Facebook, Tesla, and Priceline. Plus the return of the Ideas Hub game!

Mail Block: Mark?s favorite segment.

  • Question from Anath3ma - How are options stops triggered? Bid? Ask? Mid? If ask, am I then filled on the bid costing me the spread? Seems like it could be costly.
  • Question from Snowbird - My friend and I like to by straddles going into earnings, but we often miss a great deal of the move that occurs after the market close. I know you have discussed this in the past by referring to the process known as "gamma scalping." I think I understand how it works - basically trading stock against your options to lock in profits - but I am cloudy on the mechanics. (FYI I am an OX customer). Let?s say I buy a straddle in my account with zero delta (50 delta call and put). Then let?s say the underlying rallies after the close and my straddle now has a 50 delta. I would then need to sell stock against that straddle to lock in my gains, but as far as the OX system is concerned, my straddle closed for the day with a zero delta. Will the system update with after-hours data to reflect the fact that my straddle now has a 50 delta, and if I sell short stock, I am essentially "locking in a profit" as opposed to naked shorting the stock? I suppose the alternative is to simply keep a large amount of free capital in your account on the off chance that you need to trade some stock against your positions in the after-hours, but that seems needlessly wasteful. Perhaps this is why you say "gamma scalping" is not viable for retail?

Around the Block: More earnings.

 

Marriott on 2/19; GRPN, HPQ, and PCLN on 2/20. 


Option Block 313: Yelling at Yellen

Option Block 313: Yelling at Yellen Trading Block: A rather quiet day on the street. It has been a strange week for vol/VIX. Does this buyback draw a line in the sand at $500 for Apple? Icahn is dropping his call for expanded buyback program after...
Posted February 11th, 2014

Option Block 313: Yelling at Yellen

Trading Block: A rather quiet day on the street. It has been a strange week for vol/VIX. Does this buyback draw a line in the sand at $500 for Apple? Icahn is dropping his call for expanded buyback program after getting little support. BATS is talking about launching a second options exchange after their merger. Bitcoin taking it on the chin since our last show. An exchange stopped taking withdrawals and it is crushing the price. 

Odd Block: Puts Trade in iShares MSCI EAFE Index (EFA), puts Trade in ConAgra Foods, Inc. (CAG), calls roll in AuRico Gold Inc. (AUQ), and calls Trade in Boardwalk Pipeline Partners (BWP).

Xpress Block: Only two names really generated a lot of paper today: Tesla and Apple.

Strategy Block: Uncle Mike discusses gamma combined with a credit spread, a preview of his upcoming webinar.

 

Around the Block: The last of the earnings: CSCO - 2/12 after, NVDA 2/12 after. Debt ceiling back on the table. First remarks from new Fed chief tomorrow.


Option Block 312: Juicy Buffett Puts

Option Block 312: Juicy Buffett Puts Trading Block: Market up 1%. Is the brief correction over?  VIX far below the 20-handle. Twitter taking it on the chin; down 23% off news that subscriber growth is slowing.  Zynga back up in the $4.5...
Posted February 7th, 2014

Option Block 312: Juicy Buffett Puts

Trading Block: Market up 1%. Is the brief correction over?  VIX far below the 20-handle. Twitter taking it on the chin; down 23% off news that subscriber growth is slowing.  Zynga back up in the $4.5 range again. Is it risk reversal time again?

Odd Block:  Giant collars go up in Zynga Inc. (ZNGA), puts trade in NuPathe Inc. (PATH), calls trade in Global X Uranium ETF (URA), and giant collar trades in TD Ameritrade Holdings Corp (AMTD)

Xpress Block:  Big volume in Yelp, Green Mountain, and Twitter.  More weeklys in the Ideas Hub

Mail Block: 

Question from Nick Tate - Do you guys think Bit Coin derivatives are on the horizon? Would OX trade it? What would the call skew look like in something like that?

Question from Inchon06 - Mr. Mass Destruction sure seems to be pretty happy selling puts. Hypocrisy or just taking advantage of "Buffett Premium"?

Around the Block:  Whats left on the earnings horizon? Non-farms ahead. 


Option Block 311: VIX Drops the Ball

Option Block 311: VIX Drops the Ball Trading Block: An aggressive selloff today, S&P off 41 handles, NASDAQ down 107 handles. VIX cash passes the 20-handle.  A weak start to February. Apple and GLD were the lone greens on the screen today....
Posted February 4th, 2014

Option Block 311: VIX Drops the Ball

Trading Block: An aggressive selloff today, S&P off 41 handles, NASDAQ down 107 handles. VIX cash passes the 20-handle.  A weak start to February. Apple and GLD were the lone greens on the screen today. That makes for a happy Tosaw. The OIC announced today that 389,821,135 total options contracts traded in January, the seventh highest monthly volume ever. TTWO earnings after the bell.

Odd Block: Collars go up in Two Harbors Investment Corp. (TWO), call buyers trade in Powershares DB Agriculture (DBA), and collars go up in Seattle Genentics, Inc. (SGEN)

Xpress Block: A difficult day at the OX desk. All hands on deck after the opening selloff.

Strategy Block: Uncle Mike Tosaw expands on his discussion on rolling down puts.

Around the Block: More Earnings-palooza:

CME 2-4 before; RDN 2-5 before; DIS & TWTR 2-5 after; GM, LNKD, and ZNGA 2-6; CBOE 2-7.


Option Block 310: GOOG After Hours Mania

Option Block 310: GOOG After Hours Mania Trading Block: The ?Correction? is over. Earnings Trading Review: GOOG and CME after the bell. FB - ATM straddle went out around $6, traded nearly $3 through that today. F - Announces "best year...
Posted January 31st, 2014

Option Block 310: GOOG After Hours Mania

Trading Block: The ?Correction? is over. Earnings Trading Review: GOOG and CME after the bell. FB - ATM straddle went out around $6, traded nearly $3 through that today. F - Announces "best year ever" but closes nearly unchanged on the day. APPL - That $460 put is not looking so outlandish now. 

Odd Block: Puts sales trade in Kellogg Company (K), puts buyers trade in Newell Rubbermaid Inc. (NWL), and puts sellers and buyers trade in Overstock.com, Inc (OSTK)

Xpress Block: A big day at OX, driven by all the earnings events. Perplexed by Google.

Mail Block: Question from C_Dog - What is a scenario where you would consider a ratio vertical spread (1x2, 1x3) going into earnings?

Comment from Go Husky - I only trade options around earnings. Am I crazy?

Around the Block: A quick update on Amazon, Google and Chipotle. Upcoming earnings: DIS 2-5, GM 2-6, LNKD 2-6, CME 2-4, ZNGA 2-6, TWTR 2-5


Option Block 309: The Big AAPL Earnings Show

Option Block 309: The Big AAPL Earnings Show Trading Block: Markets reverse most of today?s slide late in the session. Lots of index volatility, but not many buyers. VIX coming off later in the session. Big Apple earnings after the bell, and...
Posted January 28th, 2014

Option Block 309: The Big AAPL Earnings Show

Trading Block: Markets reverse most of today?s slide late in the session. Lots of index volatility, but not many buyers. VIX coming off later in the session. Big Apple earnings after the bell, and right in Tosaw?s crosshairs. The International Securities Exchange (ISE) has not appealed a federal court decision that rejected ISE's attempt in the New York courts to challenge S&P Dow Jones Indices? (SPDJI) rights to control the use of the S&P 500 and the Dow Jones Industrial Average as the basis of index options.

Odd Block: Puts trade in iShares MSCI Emerging Markets ETF (EEM), calls trade in Time Warner Inc. (TWX), and calls trade in Mechel OAO (MTL)

Xpress Block: Nat Gas and the 10-year very busy on the desk. Apple, MasterCard, Caterpillar, F5 Networks and VIX also very active.

Strategy Block: It?s fruit day! Tosaw also discusses his current position in the Russell.

Around the Block: Apple update, Fed meeting, and President Obama?s State of the Union address.


Option Block 308: The Scale from Smart to Cowboy

Option Block 308: The Scale from Smart to Cowboy Trading Block: An aggressive selloff sparked by weak existing home sales.  VIX cash back in the mid-teens. Microsoft after the bell. Netflix tearing it up. Odd Block: Call buyers in Flagstar...
Posted January 24th, 2014

Option Block 308: The Scale from Smart to Cowboy

Trading Block: An aggressive selloff sparked by weak existing home sales.  VIX cash back in the mid-teens. Microsoft after the bell. Netflix tearing it up.

Odd Block: Call buyers in Flagstar Bancorp, Inc. (FBC), closing put buys in Royal Bank of Scotland Group (RBS), calls trade in YPF SA (ADR), calls buyers trade in AVG Technologies N.V. (AVG).

Xpress Block: Alex gets on a soapbox to discuss tax reporting season and understanding how margin works. Netflix, Apple, and Herbalife.

 

Mail Block: Question from John King: @Options Any comments on this style of option trading: smart, cowboy, or in between?

Around the Block: Google, Chipotle, and Amazon: 1/30 after; Facebook 1/29 after; Ford 1/28 before; EA 1/28 after; Apple 1/27 after. 


Option Block 307: Idiotic Upside Calls

Option Block 307: Idiotic Upside Calls Trading Block: A mild selloff early in the session. SPX weeklies up 98% in 2013. SPX & VIX options hopefully getting extended hours in 2014. Best buy taking in on the chin after a poor holiday season. Chuck...
Posted January 17th, 2014

Option Block 307: Idiotic Upside Calls

Trading Block: A mild selloff early in the session. SPX weeklies up 98% in 2013. SPX & VIX options hopefully getting extended hours in 2014. Best buy taking in on the chin after a poor holiday season. Chuck E. Cheese is worth a billion!

Odd Block: Calls trade in Eldorado Gold Corp. (EGO), calls trade in Amarin Corporation (AMRN), and calls trade in Insmed Incorporated (INSM)

Xpress Block: Intel, Best Buy, and DR Horton were popular on the OX desk today.

Mail Block: Keep those questions rolling in!

  • Comment from Shane Hamilton: Only on the Option Block does Andrew toss around words like "bereft". #alteredstate
  • Trading resolution from Britt Dowd: To finish building my foundation so that I can finally focus on trading options.
  • Follow up from Richard: Regarding Jack's question, would these have to be put based front spreads since you'll ultimately have net uncovered short positions? I didn't think naked calls, as you would have in a front spread, would be eligible for use in retirement accounts? Thanks.
  • Regard this question from Jack: I know you guys are not tax advisors, and so nothing you say can be taken as certain in any answer to this question.  I am a small time trader, and at the moment cannot afford a CPA with trading expertise in options to do my taxes.  So I am wondering if you can talk about the potential tax consequences of front spreads, especially when used as covered call replacement.  I've had good success with this strategy, and I would like to move it into my margin account this year, instead of just using it in the IRA to avoid the tax headache.
  • Question from Luke Davis: Mark, in show 302, you said in answer to a listener question that using a six month or one year LEAP was good for a stock replacement strategy. Is there any reason you wouldn't go further out than that? For example, I am currently using this on Microsoft and Ford, but with the Jan 2016 ITM calls. Keep up the informative and entertaining shows, and happy New Year!

Option Block 306: Crazy Biotech Action

Option Block 306: Crazy Biotech Action Trading Block: A mild selloff on the street. Still not many bids for volatility, except in select names. VIX due for a spike according to the Wall Street Journal.  NPR calls options "The riskiest place to...
Posted January 14th, 2014

Option Block 306: Crazy Biotech Action

Trading Block: A mild selloff on the street. Still not many bids for volatility, except in select names. VIX due for a spike according to the Wall Street Journal.  NPR calls options "The riskiest place to invest outside of penny stocks."

Odd Block: Puts trade in Clovis Oncology Inc. (CLVS), puts trading in Alnylam Pharmaceuticals Inc. (ALNY), puts trade in Five Below Inc. (FIVE), and calls trade in China Finance Online Co. (JRJC).

Xpress Block: A big mover on the OX desk was LULU. Stealth selloff in crude and the 10-year. Beam bought by Suntory today for $16B.

Strategy Block: Tosaw discusses one small piece of trading spreads with 3-4 legs.

Around the Block: Earnings around the block: BAC on 1/15; CITI, GS, and INTC on 1/16.


Option Block: Apple Kills Weekly Volatility

Option Block: Apple Kills Weekly Volatility Trading Block: Alcoa kicking it off after the bell. Apple crushes weekly premium by announcing a late earnings date - 1/27 as opposed to 1/23 like many expected. Many weekly options on the 1/24 cycle were...
Posted January 10th, 2014

Option Block: Apple Kills Weekly Volatility

Trading Block: Alcoa kicking it off after the bell. Apple crushes weekly premium by announcing a late earnings date - 1/27 as opposed to 1/23 like many expected. Many weekly options on the 1/24 cycle were cut in half.

Odd Block: Review from Jan 7: Call buyers in Plug Power Inc. (PLUG), puts sellers trade in BlackBerry Ltd (BBRY), calls roll in Cheniere Energy, Inc. (LNG), and calls roll in American Realty Capital Properties (ACRP).

Xpress Block: Alex discusses premium harvesting for futures.

Mail Block: What do you want to talk about?

  • Tweet from Ziaur Rahman: what would be a good place to learn about options trading? I?m interested in learning the basics on options trading.stock/index futures, then also discount broker to trade.
  • Question from Jack: I know you guys are not tax advisors, and so nothing you say can be taken as certain in any answer to this question.  I am a small time trader, and at the moment cannot afford a CPA with trading expertise in options to do my taxes.  So I am wondering if you can talk about the potential tax consequences of front spreads, especially when used as covered call replacements?  I've had good success with this strategy, and I would like to move it into my margin account this year, instead of just using it in the IRA to avoid the tax headache. 
  • Question from Ian Getz: I'm curious how you find good options related articles on the general internet with such a generic word as "options"? Any tips? Articles on the general internet with such a generic word as "options"?

Around the Block: Upcoming Earnings: CITI, GS, and INTC: 1/16, BAC 1/15.


Option Block 304: Polar Vortex Be Damned

Option Block 304: Polar Vortex Be Damned Trading Block: Another day, another mild selloff. Crazy fat finger print in gold futures. Apple taking it on the chin. Polar vortex = Boom market for snow derivatives? Odd Block: Put sellers trade in Wyndham...
Posted January 7th, 2014

Option Block 304: Polar Vortex Be Damned

Trading Block: Another day, another mild selloff. Crazy fat finger print in gold futures. Apple taking it on the chin. Polar vortex = Boom market for snow derivatives?

Odd Block: Put sellers trade in Wyndham Worldwide Corp. (WYN), put sellers trade in iShares MSCI Japan ETF (EWJ), closing call sellers trade in iPath S&P 500 VIX Short Term Futures ETP (VXX).

Xpress Block: Apple, Twitter and Facebook: the three perennial favorites on the OX desk. 

Strategy Block: Uncle Mike Tosaw discusses mortgages. "Should I pay it down or keep it for a tax deduction?"

Around the Block: Jan 6: Factory Orders, ISM Non-Mfg Index. Jan 7: International Trade. Jan 8: ADP Employment Report, EIA Petroleum Status Report, FOMC Minutes. Jan 9: Jobless Claims. Jan 10: Employment Situation


Option Block 303: Wither Single Name VIX?

Option Block 303: Wither Single Name VIX? Trading Block: Most of the major indexes selling off about 1%. A lot of put activity on the street. The numbers are out for 2013! Odd Block: Puts trade in SPDR S&P 500 ETF Trust (SPY), puts trade in...
Posted January 3rd, 2014

Option Block 303: Wither Single Name VIX?

Trading Block: Most of the major indexes selling off about 1%. A lot of put activity on the street. The numbers are out for 2013!

Odd Block: Puts trade in SPDR S&P 500 ETF Trust (SPY), puts trade in Yahoo! Inc. (YHOO), review from 11/25: Ziopharm Oncology Inc. (ZIOP), also Titan International Inc. (TWI), review from 10/24: Jive Software Inc. (JAIV), also Covanta Holding Corp. (CVA), review from 06/27: New York Community Bancorp, Inc. (NYCB), also Goodrich Petroleum Corporation (GDP), and review from 10/03: YPF SA (ADR)

Strategy Block: We have a special guest for today's strategy block, featuring Andrew Giovinazzi. He discusses some vol structure and strategies ahead of the Bernanke announcement.

Around the Block: What to watch post-Fed? Alcoa 1/9.


Option Block 302: Looking Forward, Looking Back

Option Block 302: Looking Forward, Looking Back Trading Block: Predictions for 2014 Mark - I wish they could finally get the Minis right. Hopefully someone wiIl figure out how to aggregate spread flow across exchanges to improve spread...
Posted December 31st, 2013

Option Block 302: Looking Forward, Looking Back

Trading Block: Predictions for 2014

  • Mark - I wish they could finally get the Minis right. Hopefully someone wiIl figure out how to aggregate spread flow across exchanges to improve spread execution, less exchanges, less fixation by retail on VIX/ETFs and more migration to futures/futures options. 
  • Andrew - I like a VIX low print prediction.  Where the market is going and the forgotten sectors in 2013 and how they will fair.
  • Alex - Cash settled equity options (that would be pretty sweet). Hope the tax folks don't pass mandatory mark to market. No transaction tax. After hours trading. Five year Leaps. Adjust maker/taker to discourage HFT. An industry standard for delisting zero open interest series. Electronic trading for the options on the big SPU.Predictions: More consolidation - I was wrong about this occurring in 2013.
  • Tosaw - Another big year for SPX. Waiting to see Apple earnings tomorrow before I can give a prediction for 2014. I would like to see more volume in the jumbo SPY. Feeling "straddlish" for 2014.
  • Mark -  I predict more exchanges, something occurs to clip the wings of this rally in 2014, not much appreciable Vol in the marketplace until the next big government debate at end of Q1.

Xpress Block: Twitter was the only big name on the desk. A very important discussion on the 1256 issues.

Mail Block: Tell us what you want to hear.

  • Question from Jason KruseRUSE @Jkruse81- @Options thought about a strategy of maxing out margin to buy a lot, then selling a deepish ITM covered call. Is there a name for that? [email protected] or have you guys talked about something like that where I could get a better idea of risks?
  • Comment from Gary Barisi - That much action because they got a $50M insurance claim!?
  • Question from Jack @Itrumpdoom - Option Block Front or Back? I apologize if this question has been covered in the last year and I missed it, in dealing with ratio vertical spreads, will you please explain what makes a front spread front, and a back spread back? Thanks

Option Block 301: Twas the Day Before Christmas

Option Block 301: Twas the Day Before Christmas Trading Block A strong rally on the street on the back of a strong consumer sentiment - A sea of green. Everyones favorite fruit company, Apple up during the day.Some substantial moves in...
Posted December 24th, 2013

Option Block 301: Twas the Day Before Christmas

Trading Block

A strong rally on the street on the back of a strong consumer sentiment - A sea of green. Everyones favorite fruit company, Apple up during the day.Some substantial moves in CBOE. VXX hits a low for the year. 

Odd Block

Call buyers trade in Meritor Inc. (MTOR), put sellers trade in Ambac Financial Group, Inc. (AMBC), call sellers trade in Select Sector SPDR Financial (XLF) and huge rolls in Hercules Offshore, Inc. (HERO)

Xpress Block

Apple, CBOE and social networking were all seeing a lot of action today.

 

Mail Block

Question from Dylan, Fort Nelson, British Columbia: I have a question on diagonal spreads today. Is there a good way to capitalize on the long vega these spreads generally have without actually selling the long vega option? I've been looking at using the premium gained in the option in a Vol pop to buy "free" puts in VIXM or VXZ and extract some of this premium instead of just watching the Vrol grow and then go away. Maybe a good one for Uncle Mike as I know he's a big diagonal fan. Thanks,


Option Block 300: 300th Episode Spectacular!

300th Episode Spectacular! Hooray for our 300th episode! Mark Sebastian, Mike Tosaw, Andrew Giovinanzzi, Alex Jacobson, Mike Cavanaugh and John Grigus join Mark "The Voice of Options" Longo, to reminisce about the all their favorite moment and shows...
Posted December 20th, 2013

300th Episode Spectacular!

Hooray for our 300th episode!

Mark Sebastian, Mike Tosaw, Andrew Giovinanzzi, Alex Jacobson, Mike Cavanaugh and John Grigus join Mark "The Voice of Options" Longo, to reminisce about the all their favorite moment and shows of the past three years.

Comment from Phil M. - Great show guys! Fun times listening to the Option Block. Keep up with what you guys love to do.

Comment from Jay Thomas - Congrats to "The Voice of Options" on 300 episodes of The Option Block! Keep them coming as this show makes my Tuesdays and Fridays much more bearable.

Comment from Ian Getz - Congratulations in advance on the 300th episode of The Option Block. Mike Tosaws BBI and successful Apple saga were my favorite 2013 moments!

Comment from Jim Jam - Love the show! Whats with all the nicknames? Why does Mark L not have a nickname? How about "The Leader", "The General", "Host Master" or "Barry White of Options"?

Comment from Mr Ill - Thanks Mark for bringing us so much great content over the years, and congrats to the whole all-star panel on Option Block 300. I enjoy the whole network, but OB is far and away my favorite. There is nothing else like it on the air.

Comment from Tim Meads, Montana - I just discovered this show and I am looking forward to perusing the other 299 episodes in the archive. Heres to episode 600! P.S. Where can I get a jaunty, viceroy cap?

Comment from Dave S., Burbank, CA - My favorite OB show title is "Netflix Strangles Children" from episode 261! Wishing you continued success.


Option Block 299: Band-Aid for a Severed Jugular

Option Block 299: Band-Aid for a Severed Jugular Trading Block: A broad rally across the street on the backs of strong manufacturing data. Fed meeting coming up.  Herbal Life halted today. SEC promising to crackdown on insider trading. What...
Posted December 17th, 2013

Option Block 299: Band-Aid for a Severed Jugular

Trading Block: A broad rally across the street on the backs of strong manufacturing data. Fed meeting coming up.  Herbal Life halted today. SEC promising to crackdown on insider trading. What exactly is HFT?  Stock buybacks accounting for substantial percentages of ADV. 

Odd Block:  Puts buyers trade in Royal Bank of Canada (RY), puts trade in ZION Bancorp (ZION), calls trade in Noble Corp. (NE), and calls buyers trade in KBR, Inc. (KBR).

Xpress Block:  Herbal Life, Oracle, Lululemon all popular names on the desk today. 

Strategy Block:  A shout out to the bears. 

Around the Block: Fed on Wednesday? Will they taper?


Option Block 298: Only Getting 80%

Option Block 298: Only Getting 80% Trading Block: A mixed day on the street. Post non-farms, what is left to give us some vol? Where does one look for premium writers in this environment? Tosaw Update. OX Update. Odd Block: Calls buyers trade in...
Posted December 13th, 2013

Option Block 298: Only Getting 80%

Trading Block: A mixed day on the street. Post non-farms, what is left to give us some vol? Where does one look for premium writers in this environment? Tosaw Update. OX Update.

Odd Block: Calls buyers trade in CYTRX Corp. (CYTR), calls buyers trade in Glu Mobile Inc. (GLUU), and call buyers in Bean Inc. (BEAM)

Xpress Block: Twitter and Facebook was where the action was on the OX desk.

Strategy Block: Uncle Mike Tosaw breaks down the recent adjustment to his position in GLD.

Around the Block: Is there anything to look forward to in this environment?


Option Block 297: Talk of Tesla & Twitter

Option Block 297: Talk of Tesla & Twitter Trading Block: Not a lot to drive the market today. Futures are trading a discount to the cash. Non-farm payrolls. Xpress Block: Tesla and Twitter were lighting up the OX desk today. Also, the...
Posted December 10th, 2013

Option Block 297: Talk of Tesla & Twitter

Trading Block: Not a lot to drive the market today. Futures are trading a discount to the cash. Non-farm payrolls.

Xpress Block: Tesla and Twitter were lighting up the OX desk today. Also, the United/American Airlines merger - What happens to those investors?

Around the Block: Keeping an eye on the 10-year and Home Builders earnings. 


Option Block 296: Apple Fire Sale

Option Block 296: Apple Fire Sale Trading Block: A mild selloff on the street. Some vol has been creeping back into the market ahead of Non-Farms. The Apple zealots are back. Pressure continues on the metals. Odd Block: Calls trade in Arris Group...
Posted December 6th, 2013

Option Block 296: Apple Fire Sale

Trading Block: A mild selloff on the street. Some vol has been creeping back into the market ahead of Non-Farms. The Apple zealots are back. Pressure continues on the metals.

Odd Block: Calls trade in Arris Group Inc. (ARRS), calls trade in CME Group (CME)

REVIEW FROM 10/24 - Calls trade in Jive Software Inc. (JIVE)

Xpress Block: Rumors that Fords CEO may be coming to Microsoft? Gold and energies were the hot products today.

Mail Block: Facbook Question comes in under the wire

Question from Dylan Harris - I have a point I would like discussed on the Option Block. Can you guys discuss locking in gains for long premium trades? Do you gamma scalp with stock or sell options against the position? Or is it best to just close the position and save the commission costs? Love the shows, thanks!

Around the Block: Non-Farms tomorrow. But then what? Not much on the horizon for the rest of the year.


Option Block 295: Saving Yourself Some Headaches

Option Block 295: Saving Yourself Some Headaches Trading Block: Is there any vol on the horizon? Amazon drones - watch your head! Black Friday a resounding meh, Cyber Monday still a question mark. The Tosaw update: GLD, SLV, APPL, etc. Odd Block: IB...
Posted December 3rd, 2013

Option Block 295: Saving Yourself Some Headaches

Trading Block: Is there any vol on the horizon? Amazon drones - watch your head! Black Friday a resounding meh, Cyber Monday still a question mark. The Tosaw update: GLD, SLV, APPL, etc.

Odd Block: IB Options Brief: Best Buy Co. (BBY), calls trade in Intel Inc. (INTC), combos trade in Sprouts Farmers Market Inc. (SFM), calls trade in Forest Labs Inc. (FRX), rolling puts in Avon Products, Inc. (AVP).

Mail Block:

  • Question from Mountain Man Tim - This question is for Uncle Mike. How do you typically determine the put level that you purchase on a stock? For example, you have mentioned being long the 460 put in Apple. How do you determine the put level that you/your client uses as a hedge?
  • Question from Jon Jones - What is the ASPs take on Twitter? Long calls? Long puts? Other?

Around the Block: What could possibly bring back activity to the market? Non-farms coming up. Farewell Bernanke!


Option Block 294: You?re Soaking in It

Option Block 294: You?re Soaking in It Trading Block: Positioning going into the short weekend. Where are the long premiums? Where is the free juice? Are OX clients still trading or are they already on vacation? ZNGA love - time for Andrew to...
Posted November 26th, 2013

Option Block 294: You?re Soaking in It

Trading Block: Positioning going into the short weekend. Where are the long premiums? Where is the free juice? Are OX clients still trading or are they already on vacation?

ZNGA love - time for Andrew to gloat. TWTR giving up some of the gains.

Odd Block: Hail Mary call buying in The CBOE Volatility Index (VIX), calls trade in Ziopharm Oncology Inc. (ZIOP), and in Titan International Inc. (TWI)

Xpress Block: The Warren Buffet put in Exxon? The success of OX mobile trading.

Mail Block: We?re taking your questions

  • Question from Allan Schwartz - Why is open interest still only updated daily? Do we not have enough information now to update that more frequently, if not instantly? If I buy to close 30 calls, that should be reflected in the OI instantly, not the following morning.
  • Question from Biz Man - Does OX offer any systems to automate trading? Example - Automatically write a 5% OTM call on XYZ underlying every month/week, etc. It would save some hassle for busy clients. 

Around the Block: The holiday approaches. Markets closed Thursday, and half-day on Friday.


Option Block 293: The Gift that Keeps on Giving

Option Block 293: The Gift that Keeps on Giving Trading Block: A strong rally on the street with VIX futures getting utterly destroyed. Twitter has not been the big vol mover as expected. Tesla continues to take it on the chin.  Zynga: the stocky...
Posted November 22nd, 2013

Option Block 293: The Gift that Keeps on Giving

Trading Block: A strong rally on the street with VIX futures getting utterly destroyed. Twitter has not been the big vol mover as expected. Tesla continues to take it on the chin.  Zynga: the stocky hat keeps on giving.

Odd Block: Yesterday review - Calls trade in Star Scientific, Inc. (STSI), risk reversal trades in the CBOE Volatility Index (VIX), calls buyers in China Life Insurance Company (LFC)

Xpress Block: New technology coming soon to the OX website.

Strategy Block: Uncle Mike discusses the importance of having a variety of different strategies in your trading.

Around the Block: Russell Index is coming back. It will be a race to see who can take down option premiums. S&P taking out 1,800. 


Option Block 292: TWTR Is No FB

Option Block 292: TWTR Is No FB Trading Block: The first day of trading for Twitter options was very interesting, but yet not the day everyone was hoping for. With these numbers, Twitter will not set a first-day options trading record as Facebook did...
Posted November 19th, 2013

Option Block 292: TWTR Is No FB

Trading Block: The first day of trading for Twitter options was very interesting, but yet not the day everyone was hoping for. With these numbers, Twitter will not set a first-day options trading record as Facebook did on its debut. Alex said Dec 50 calls were popular at OX today.  CBOE now disseminating VXST every 15 seconds instead of once per day. Interesting article on Barron?s today slamming VXX and other VIX ETPs.

Odd Block: Review from last show - Calls trade in Tile Shop Holdings (TTS), put spread trades in Darling International Inc. (DAR), calls trade in Kindred Healthcare, Inc. (KND)

Mail Block: Question from BROB

What do you guys think of put/call ratios? I never hear you mention them on the show. Useful tool or overhyped indicator?

Around the Block: Home Depot earnings before the open tomorrow.


Option Block 291: Twas the Night before Twitter

Option Block 291: Twas the Night before Twitter Trading Block: A mild rally on the street today. A tepid outlook from Walmart, doesn't bode well for the economy. Cisco taking in on the chin post-earnings. Happy Twitter Options Eve! Any client interest...
Posted November 18th, 2013

Option Block 291: Twas the Night before Twitter

Trading Block: A mild rally on the street today. A tepid outlook from Walmart, doesn't bode well for the economy. Cisco taking in on the chin post-earnings. Happy Twitter Options Eve! Any client interest in trading twitter options?

Odd Block: Crazy call buyer in The CBOE Volatility Index (VIX), calls trade in Tile Shop Holdings (TTS).

Xpress Block: No Alex today. So it?s time for the Trading Patterns Guessing Game - Special Twitter Edition.

Strategy Block: Uncle Mike Tosaw discusses when to roll up a call on a diagonal call debit spread.

Mail Block: Whacha wanna know?

Question from Ham Shack - I have read some articles that say Twitter options, particularly the put options, will be very wide and expensive on launch day. I can wrap my head around wider spreads for a new issue, but why would the puts cost more? Is it just a question of bears bidding up the volatility?

Around the Block: Will the SPX break 1,800? Could we see the highs of the year next week?


Option Block 290: Keep that Theta Rolling

Option Block 290: Keep that Theta Rolling Trading Block: Twitter IPO released, started at $26. Can't wait to sell the puts. Tesla taking it on the chin, breaking through the 140 handle. Priceline closed down. Mail Block: Keep those questions...
Posted November 8th, 2013

Option Block 290: Keep that Theta Rolling

Trading Block: Twitter IPO released, started at $26. Can't wait to sell the puts. Tesla taking it on the chin, breaking through the 140 handle. Priceline closed down.

Mail Block: Keep those questions coming

  • Question from Ian @mategio - Can you please expand on these formation you guys talked about (Apple, buy the guts, sell the wings)? Can I see them in Options Xpress?
  • Question from Ed Vangelos - Alex's comment on the Ford collar from last week;s episode disturbed me. He essentially said that selling the stock was better than using a collar to hedge the position, because no one wants to sell the call. So is Alex just not a fan of collars, or does he actually think it?s better to be in cash than to have a hedged equity position?
  • Question from Richard D. -  Mark and the crew, I am posting my questions in more atomic increments so that you can decide which are worthy to be read, or queue them up for the future. One reason we like options is that we create similar effects to long or short stock positions with less capital tied up and at risk. However, it raises the question of what safe and liquid options do we have for that cash that we keep in reserve?

Around the Block: Update on Priceline. 


Option Block 289: What a Twit!

Option Block 289: What a Twit! Trading Block: November 14 is official day Twitter goes public. CBOE earnings on Friday, CME before the open - both resounding "mehs." Apple actually closes around where it started. Blackberry taking it on the chin....
Posted November 5th, 2013

Option Block 289: What a Twit!

Trading Block: November 14 is official day Twitter goes public. CBOE earnings on Friday, CME before the open - both resounding "mehs." Apple actually closes around where it started. Blackberry taking it on the chin. Again.

Odd Block: Calls trade in Berry Petroleum Co. (BRY), calls trade in Applied Micro Circuits Corp. (AMCC), calls trade in Marin Software Inc. (MRIN), and calls trade in ValueVision Media Inc. (VVTV).

Xpress Block: Cue the game show music for yet another edition of "The Trading Patterns Game."

Listener Mail:  Comments and questions from our audience.

  • Comment from Options Curator - Just BTO an $AAPL Feb14 515 Call at $31.20. Let see how #ChristmasHoliday plays out. @Options #options #trading #investing
  • Question from BillyMo @b1llmoo - 2nd question. Why does SPY and its options not trade the same hours as /ES and their options? Seems like it exchanges would love it.

Around the Block: Tesla, Groupon and Qualcomm earnings this week. TSLA is very important for OX clientele.


Option Block 288: The Exciting Road to Nowhere

Option Block 288: The Exciting Road to Nowhere Trading Block: A selloff at the very end of the day. Most major indexes down half a point. Interesting movement post Facebook and Apple earnings. In hindsight, the Apple skew makes a lot more sense post...
Posted November 1st, 2013

Option Block 288: The Exciting Road to Nowhere

Trading Block: A selloff at the very end of the day. Most major indexes down half a point. Interesting movement post Facebook and Apple earnings. In hindsight, the Apple skew makes a lot more sense post Google earnings.

Odd Block: Puts trade in Ultrashort Euro ProShares (EUO), calls trade in Tile Shop Holdings Inc (TTS), calls trade in Fortress Investment Group LLC. (FIG) and spread trades in Apollo Global Management (APO)

Xpress Block: Facebook displaced Apple is the top 5 most active. GLD has dropped out of the top 10, surpassed by SLV. This has been the most active October on record at OX!

Listener Mail Extravaganza: We have even more mail!

  • Question from Herb Slojewski - Where can I get info on how to trade Twitter options, Options guy? What sort of plan do you have for Twitter when it starts trading. Thanks.
  • Question from BillyMo @b1llmoo - As I sit here watching Apple go from down 25 to green. Is there any updates on After Hours option trading?
  • Question from Richard D - Mark and the brain trust! I have 2 more questions for the queue! I happened to be the temporarily happy holder of a bullish FB diagonal Nov 2 50 / Nov 8 55 call spread that I held through earnings. As I watched the stock very quickly balloon almost 10% to around $54 and change I thought about what I could do in the after hours to lock-in any of this gain, knowing it could likely disappear by morning (yes Alex I love your pressing for evening+ trading hours in all instruments!). If I just owned the call (which I do not do due to the Vol crush), I could have shorted stock, but alas I had a spread with a short in it. I was wondering if there are any options that don't leave me naked any stock to capture any of this after hours gain? I suspect not but I figured I would ask because this has been a topic on your show. I also was not sure if there was a different way to structure the trade to begin that would have afforded me some after hour opportunities with something other than a vertical or bullish time spread like I have? Oddly enough, my broker does NOT count owning a call as a hedge against a short stock position and gives me the full margin position of the short w/out the hedged call, so even a call/short stock after hours move would not work for me (synthetic put :) Is this common? Thank you!

Around the Block: Exchange week coming up. CBOE 11/1 Before & CME 11/4 Before. Disney - 11/7, Groupon - 11/7, Activision - 11/6 and Tesla - 11/5


Option Block 287: Trading Patterns

Option Block 287: Trading Patterns   Trading Block: A mild rally on the street. Everyone is still playing the wait and see game after hours today with Apple. Interview Block: Guest: Mark Greenstein, CTA with Orchard Grove joins the gang as they...
Posted October 29th, 2013

Option Block 287: Trading Patterns

 

Trading Block: A mild rally on the street. Everyone is still playing the wait and see game after hours today with Apple.

Interview Block: Guest: Mark Greenstein, CTA with Orchard Grove joins the gang as they discuss metals, rates, as well as the VIX products.

Xpress Block: It is time once again for everyone?s favorite "The Trading Patterns" game!

Around the Block: Still more earnings around the bend. Apple - 10/28, EA Games - 10/29, General Motors - 10/30, LinkedIn - 10/29, Facebook - 10/30, Marriott - 10/30, Take Two - 10/29 & Nokia - 10/29.


Option Block 286: Super Thursday

Option Block 286: Super Thursday Trading Block:  Another mild day on the street. Earnings-Palooza today! Ford before the bell. A newly revived Microsoft.  Amazon surges after hours. Zynga breaks the four handle.  Crazy developments in...
Posted October 25th, 2013

Option Block 286: Super Thursday

Trading Block:  Another mild day on the street. Earnings-Palooza today! Ford before the bell. A newly revived Microsoft.  Amazon surges after hours. Zynga breaks the four handle.  Crazy developments in Apple post iPad.

Odd Block:  Calls trade in Covanta Holding Corp (CVA), straddle trades in Microsoft Corp. (MSFT), calls trade in Silvercorp Metal Inc. (SVM), calls trade in Jive Software Inc. (JIVE).

Xpress Block:  More interesting OX trading patterns. Apple is back!

Around the Block: More earnings around the bend: 10/28 - Apple; 10/29 - EA Games, LinkedIn, Take Two, Nokia; 10/30 - General Motors, Marriott


Option Block 285: Listener Mail Extravaganza

Option Block 285: Listener Mail Extravaganza Trading Block: Navigating post-shutdown markets.  VIX Cash giving up the ghost post-shutdown.  Google, another big after hours more last week. Netflix (aka the Widowmaker) rallying hard...
Posted October 22nd, 2013

Option Block 285: Listener Mail Extravaganza

Trading Block: Navigating post-shutdown markets.  VIX Cash giving up the ghost post-shutdown.  Google, another big after hours more last week. Netflix (aka the Widowmaker) rallying hard pre-earnings.  Tesla taking in on the chin.

Odd Block: Calls trade in Orbitz Worldwide, Inc. (OWW), large spread trades in iPath S&P 500 short term futures ETN (VXX), calls trade in Turquoise Hill Resources Ltd. (TRQ), and puts trade in China Ming Yang Wind Power (MY).

Xpress Block: No Viceroy today - Let's play the trading patterns guessing game!

Listener Mail Extravaganza:  Whoa!  We?ve got mail!

  • Comment from Thepostguy ?Not surprised by download volume?: Dear Option Block crew - Listening to the latest episode and hearing Mark's comment over the amount of downloaded hours of OB, this doesn't surprise me at all. This show is one of the very few sources of excellent option and industry content that I honestly cannot believe is free. The balance of viewpoints between each panelist brings a unique perspective that gives us great, actionable information. For myself, I work full-time and run a small side business. I managed to blow up an equity account in '08 and came to options as a way to balance the amount of risk to the 'market'. I find myself timing my evening walks to the length of your show content....if that is any indication of how this listener values your programs. When will the store be open that we can purchase our own fedora hats? Regards, Phil.
  • Question from Jeremy - Hey Folks: Great show! Keep up the great work. Now that we have seen the success of Weeklies, do you think we will see Dailies? Or do you know how one could get exposure to daily expiration on such products as SPX? I noticed the CBOE has asked permission to start dailies, but I have not seen any product. I would expect the interest in such a product would be popular as the edge one might need to achieve to expiration can be smaller, but the end result compounded could be greater over a period of time if there are more opportunities to trade that position. Cheers, Jeremy
  • Question from Meeshal: I trade index options on the Indian CNX Nifty Index (Bloomberg NIFTY: IND). Two weeks ago, with the Index at around 5300, I had sold 5800 calls expiring on the 26th of September. I did not sell the corresponding puts immediately as the market had run up over the past two days and I thought I could get a better rate if I waited a day or two. Since then, the market has run up some 11% and is currently trading at 5900. Two days ago, at around 5750, I bought back the 5800 September calls and sold the same number of 6000 October calls (expiring 31st October). Since then the price of the October calls has almost doubled. Would appreciate any ideas on how to get myself out of this mess. Thanks. P.S. Will share more details if needed.

Around the Block: Earnings! - Thursday is a big day with Southwest, Ford, Zynga, Microsoft, and Amazon. Apple on 10/28.


Option Block 284: The Tosaw-Giovinazzi Show

Option Block 284: The Tosaw-Giovinazzi Show   Trading Block: Google up $43 after market. How long can the VIX go? Are we looking at the bottom? Gold reacts to the Fed tapering announcement. Odd Block: Calls trade in Ingersoll-Rand PLC (IR)....
Posted October 18th, 2013

Option Block 284: The Tosaw-Giovinazzi Show

 

Trading Block: Google up $43 after market. How long can the VIX go? Are we looking at the bottom? Gold reacts to the Fed tapering announcement.

Odd Block: Calls trade in Ingersoll-Rand PLC (IR). Unusual activity in Cole Real Estate Investments (COLE). A put sale for income gone wrong in Seadrill LTD (SDRL). Trading all over the board in Real Goods Solar Inc. (RSOL).

Listener Mail: Question from Uncle Al: I've heard the term maker-taker many times in regard to options exchanges. Can you explain what this term means and what traders should be aware of? Thanks for this fantastic program. 

Question from Ibn Sayer: I have a question for Uncle Mike Tosaw. He has discussed the problems with annuities several times on the program. I wonder is it possible to construct my own annuity using listed option contracts?

Around the Block: Google earnings, Goldman Sachs. Treasuries making a bit of a rally. 


Option Block 283: Kick the Can

Option Block 283: Kick the Can Trading Block:  A huge drop in VIX cash. Gold also got crushed today.  Plus, a very unusual trade in VXX. Xpress Block:  Everything on the equity options desk was active today Around the Block:...
Posted October 11th, 2013

Option Block 283: Kick the Can

Trading Block:  A huge drop in VIX cash. Gold also got crushed today.  Plus, a very unusual trade in VXX.

Xpress Block:  Everything on the equity options desk was active today

Around the Block: Upcoming earnings - Alcoa, Google.  Waiting to see if Washington continues to kick the can. 


Option Block 282: A Whole New Kind of Stupid

Option Block 282: A Whole New Kind of Stupid   Trading Block: There was a mild selloff on the street today. VIX cash continues to creep north, as the shutdown continues. Did VIX call sellers get out in time? Potbelly to join the ranks of...
Posted October 8th, 2013

Option Block 282: A Whole New Kind of Stupid

 

Trading Block: There was a mild selloff on the street today. VIX cash continues to creep north, as the shutdown continues. Did VIX call sellers get out in time? Potbelly to join the ranks of high-flying IPOs? Tesla gain back all of the "fire losses".

Odd Block: Calls trade in eBay Inc. (EBAY), calls trade in Dex Media Inc. (DXM), and puts trade in Miller Energy Resources Inc. (MILL)

Xpress Block: A lot of Washington, rates and the dollar.

Strategy Block: Given the current increase in VIX, how can gamma play a role in an out-of-the-money credit spread?

Listener Mail:

Question from Destin - I know you guys have discussed the optimal collar construction in the past. How do you guys decided between that construction vs. a more traditional zero-cost construction?

Around the Block: Shutdown...Shutdown...Shutdown


Option Block 281: It?s Time for Histrionics

Option Block 281: It?s Time for Histrionics Trading Block: The shutdown dance continues. VIX cash break the 17 handle. Tesla in a frenzy after car fire. Ackman/Icahn/Herbalife debacle.  CBOE glitch causes routing issues for...
Posted October 4th, 2013

Option Block 281: It?s Time for Histrionics

Trading Block: The shutdown dance continues. VIX cash break the 17 handle. Tesla in a frenzy after car fire. Ackman/Icahn/Herbalife debacle.  CBOE glitch causes routing issues for NASDAQ.

Odd Block: Puts trade in Covanta Holding Corp (CVA), calls trade in the SPDR Dow Jones Industrial Average ETF (DIA), collar trades in Consolidated Edison, Inc. (ED)

Xpress Block: A ton of two-sided paper, e-mini activity and Tesla.

Mail Block: Mega mail block, that is.

  • Question from @Metegia (Ian) - @Options Great show! Could you please mention the date of the show at start? Intros, trading block, vol, but no context around date (Jun 4). Thanks!
  • Mega Question from Richard D - Mark and Team, First let me say I LOVE your podcasts. I'll even listen to outdated episodes of the option block because in addition to the knowledge I can gain, you guys also have a great rapport with one another and are very humorous! Great job starting all this Mark! I wish you continued success. Now for my post (this is my 2nd post. My first post was on skew.) I've been trading options as a retail investor for about 2 years now. Its been an interesting experience. I generally trade vertical spreads in lieu of stock positions or occasionally directional calendars or diagonals. Although I have had some success with verticals I don't feel I am "optimizing" my positions. For example, I'm not always sure how far out to make the short position or keep the short closer to the long and trade more quantity. Also, sometimes I've put on verticals that are 3-4 months to expiration, only to find the underlying make a large move in my direction but the vertical not performing nearly as well! This not do to a major volatility change but more because it seems that they are so far out from expiration. I'm also not clear when a vertical is a "good deal" vs just going long the call or put. I have heard you comment many times about the skew in the OTM options making options look attractive, for example I think in this episode you mentioned Facebook. I have still not gotten to the point to recognize how to identify these. So my questions are:
  • 1. Could you give an example using let's say Facebook, yahoo, or tesla on what a vertical looked like in the past and one that looks more attractive now?
  • 2. Could you talk about tools that can help identify when verticals or even time spreads look "favorable"? Having a full time job and not having the money or time for a coach makes those options out of the questions. Now this being said, the spread may look favorable, but unless you hold to expiration it seems your short could remain at that skew quite a long time or even become more skewed, so I am not sure this is a great vertical strategy (I guess you'll let me know!). Tools for the retail investor could also be a good idea for a show, either the bootcamp show or another one. Thanks again, Richard

Around the Block: More shutdown nonsense ahead - all eyes on Washington.


Option Block 280: Pre-Shutdown Put Bonanza

Option Block 280: Pre-Shutdown Put Bonanza Trading Block: Shutdown fears hanging over the market. Vol surging back into the marketplace, but Bloomberg says realized vol is nonexistent.  Odd Block: Calls trade in Northstar Reality Finance Corp....
Posted October 1st, 2013

Option Block 280: Pre-Shutdown Put Bonanza

Trading Block: Shutdown fears hanging over the market. Vol surging back into the marketplace, but Bloomberg says realized vol is nonexistent. 

Odd Block: Calls trade in Northstar Reality Finance Corp. (NRF), calls trade in YPF SA (YPF), and puts trade in Intrexon Corp (XON)

Xpress Block: How has the potential of a shutdown affected OX customers? More trading patterns!

Strategy Block: A risk management and annuities rant. 

Around the Block: The big deadline approaches.


Option Block 279: OTM Fly Breakdown

Option Block 279: OTM Fly Breakdown Trading Block: There was a mild rally today. All Facebook all day at OX. Odd Block: Calls trade in Juniper Networks, Inc. (JNPR), puts trade in iShares MSCI Australia Index (EWA), calls trade in Hertz Global...
Posted September 27th, 2013

Option Block 279: OTM Fly Breakdown

Trading Block: There was a mild rally today. All Facebook all day at OX.

Odd Block: Calls trade in Juniper Networks, Inc. (JNPR), puts trade in iShares MSCI Australia Index (EWA), calls trade in Hertz Global Holdings, Inc. (HTZ), and risk reversal trades in St. Jude Medical (STJ).

Xpress Block: Biotech, mobile, and hedging activity pouring in. What are the GLD traders trading?  Let?s take a look: 1-SPY, 2-SLV, 3-APPL, 4-FB, 5-DUST (daily gold miners bear 3X ETF), 6- JCP, 7- USO, 8- GDX (market vectors gold miners), 9 - GE, 10 ? TSLA.  What about SLV? 1-SDS, 2- GDX, 3-USO, 4-VXX, 5-SSO, 6-FB, 7-TZA, 8-SCO, 9-TNA, 10-AAPL.

Mail Block: What do you want to know?

·         Question from Nocturne: trying to understand OTM butterflies. What?s a use case for an OTM fly vs. a simple vertical or ratio? Very confused.

·         Question from ?Joe?: I haven?t been trading options for very long so forgive me if I?m out of line. I?ve been listening to your show for the past six months and find it very informative. But I also wonder if many of the concepts you discuss are simply over the heads of the typical retail trader such as gamma, vega, implied volatility, etc. I know I?m frequently confused by some of these topics. Does retail really need to know all of this stuff or is a more straightforward approach (like if you sell this option, your max loss is x, your max gain is y, you have z days until your trade expires, etc.) a better way to reach the masses without scaring them or putting them off options? I hope you read my question but, if you do, to avoid embarrassment please just refer to me as ?Joe?.

Around the Block: Debt debate and earnings approaching

 


Option Block 278: Fading the Shutdown

Option Block 278: Fading the Shutdown Trading Block: It was an aggressive day on the street, with a lot of love for Apple, up 20%. Call stupids go up in VIX.  Talks of Blackberry selloff continue. Odd Block: Puts Trade in Xilinx Inc. (XLNX),...
Posted September 24th, 2013

Option Block 278: Fading the Shutdown

Trading Block: It was an aggressive day on the street, with a lot of love for Apple, up 20%. Call stupids go up in VIX.  Talks of Blackberry selloff continue.

Odd Block: Puts Trade in Xilinx Inc. (XLNX), calls trade in Sierra Wireless Inc. (SWIR), calls trade in Covidien plc. (COV)

Xpress Block: Today?s Xpress Block will feature a guest: Daril Wagner, Product Manager at OX, who will discuss some new tools available to clients - including the Trading Patterns and Options Patterns tools.

Strategy Block: Calendars vs. butterflies

Around the Block: The debt ceiling kerfuffle is back!

 


Option Block 277: Metal Volapalooza

Trading Block: A mild day on the street. Watch out! SPY ex-dividend today. Metals hosting a "Volapalooza" Odd Block:  Calls Trade in Zynga Inc. (ZNGA), calls trade in Eagle Bulk Shipping Inc. (EGLE), put buyers in Sealed Air Corp (SEE), and calls...
Posted September 20th, 2013

Trading Block: A mild day on the street. Watch out! SPY ex-dividend today. Metals hosting a "Volapalooza"

Odd Block:  Calls Trade in Zynga Inc. (ZNGA), calls trade in Eagle Bulk Shipping Inc. (EGLE), put buyers in Sealed Air Corp (SEE), and calls trade in Meritor Inc. (MTOR). 

Xpress Block:  Tesla is still on a tear. CME metal trading very active.

Listener Mail: You have the questions, we have the answers.

  • Question from Buckeye6 - I am a new listener catching up on the archives. On an earlier episode, Mark mentioned the OX platform highlights which options qualify for reduced commissions to close. But I do not see what he is talking about. Where do I find this information? Thank you.
  • Question for the Option Block from Luke: "Uncle Mike" has suggested that if one has a spread that has gone in the money, the short leg can be rolled up by at least one strike, with a goal of breakeven or near breakeven. He suggested waiting until the day before expiration, but I have an ITM spread, so thought I would look at it one day early. I have a bear call spread on SPY: Short Sep 170 (sold at $0.59), long Sep 172 (bought at $0.255), when SPY was at about $165. It never reached my 70% profit target, before going ITM this week. With the no taper announcement, SPY has gone to $173.03. Today (Wednesday before expiration) I could buy the 170 call for $3.07, and sell the 172 for $1.30, which looks very far from breakeven, unless I greatly misunderstood what he meant by breakeven in this context. Actually, the spread on the 170 call is 3.03-3.11, but still. Even if these calls went to 0 extrinsic, how could I ever get breakeven here? Or did I just get a really really bad price on my initial short fill? For completeness, the long 172 call is trading for about $0.94. Thank you for a great show!

Around the Block: AKA taper watch


Option Block 276: Another Day, Another Crash

Trading Block: Another day, another tech disaster! OPRA (Options Price Reporting Authority) feed went down for about an hour while the underlying continued to trade. What can/should retail do to prepare for these outages?  Metals selloff...
Posted September 17th, 2013

Trading Block: Another day, another tech disaster! OPRA (Options Price Reporting Authority) feed went down for about an hour while the underlying continued to trade. What can/should retail do to prepare for these outages?  Metals selloff continues. Today's options shutdown is a good argument to use gold options/futures vs. GLD futures.  Apple adjustments.

Odd Block: Puts trade in Yahoo Inc. (YHOO), and calls trade in Geron Corp. (GERN)

Xpress Block: Apple, Facebook and the stealth rally in Lululemon.

Mail Block: So, what do you want to know?

Question from Anon - Can you guys do the Odd Block from the previous day so you can see the changes in open interest?

Question from Mr. Charles - I know you guys do not like zero cost collars, but the Ford Oct 17-18 collar is lining up very nicely right now. You may even be able to get it for a credit. I am a long equity folder from around $11. Think this is a good place/time to collar Ford?

Around the Block: FOMC results later this week.


Option Block 275: Predictably Crappy

Option Block 275:  Predictably CrappyTrading Block: A mild selloff, but gold and silver took it on the chin.  AAPL down 30 handles in a dismal post iPhone announcement.  Ichan liked it at $500, he?ll love it at $470. Lulu earnings...
Posted September 13th, 2013

Option Block 275:  Predictably Crappy

Trading Block: A mild selloff, but gold and silver took it on the chin.  AAPL down 30 handles in a dismal post iPhone announcement.  Ichan liked it at $500, he?ll love it at $470. Lulu earnings before the open...sheer pants knock the stock down 5%, well off the highs of $82 from earlier this year.

Odd Block:  Puts trade in Mechel OAO (MTL), calls trade in Wendy?s Co. (WEN), and calls trade in Vera Bradley Inc. (VRA). Alex discloses that he knows way too much about women?s retail.

Xpress Block: Lots of questions coming in about AAPL, LULU, and SPX.

Mail Block:  Question from Contrails.
Hi Mark, I really like your talk shows and loving all the humor. Thank you for educating and entertaining me all those night shifts that you guys keep me in company. I have one burning question for you regarding an observation I noticed today as I was following the SPY and SPY weekly options. First off, I am a noober. But i could not find an explanation for what I saw for those weeklys that are expiring in 4 days. So what happened is that the ATM and ITM calls were not following the price of the SPY. So as SPY was fluctuating up and down, the calls mentioned above were higher in price around 1030 AM EST compared with calls corresponding to same SPY price later during the day around 1300. The call price difference was about 15% which is a lot for home gamer like me. Why is that??? By the way I did not check the Puts, I'll look at it later today? Do the weeklys lose time value Theta as the hours go by during trading day? Or is this something related to the all mysterious Vega? But I plotted the greeks of those options on TOS and they were all flat lines, Confusing!!! Please enlighten me more Please don't mention my real name on the podcast. You can call me "Contrails" And please let me know if you get a chance the title of the podcast you'll answer my burning question. Your fan, Contrails

Around the Block:  Looking at gold, silver, and oil in light of next week?s FOMC meeting. VIX expiration next week.


Option Block 274: More Buyers than Sellers

Option Block 274: More Buyers than Sellers Trading Block: All is right with the world again! Most indices up over 1% today after Chinese export data beats expectations. Prepping for the Apple event. How big could this still be? Groupon continues to...
Posted September 10th, 2013

Option Block 274: More Buyers than Sellers

Trading Block: All is right with the world again! Most indices up over 1% today after Chinese export data beats expectations. Prepping for the Apple event. How big could this still be? Groupon continues to rally - announced acquisition of travel app Blink.

CITI closing CBOT desks.

Odd Block: Call spreads trade in SPDR S&P Homebuilders ETF (XHB), puts trade in CBOE Volatility Index (VIX), calls trade in Smithfield Foods Inc. (SFD), puts trade in iShares MSCI Emerging Markets Index ETF (EEM).

Xpress Block: Lulu and Apple, as well as many other hot names on the OX desk.

Mail Block:

  • Question from Berger Meister - Just to clarify from your last show - A back spread is net long units and front spread is a traditional ratio? Correct? Why such dumb names?
  • Question from N. Sanchez - I have heard a lot about volatility smiles, but from listening to your show, it sounds like the volatility skew actually has a downward slope to it. Does the volatility smile still exist or is it limited to odd circumstances such as the "Apple Zealots" that you have discusses on the show previously. Thank you so much for this tremendously informative program.

 

Around the Block: LULU earnings 9/12.


Option Block 273: Trades to Salivate Over

Option Block 273: Trades to Salivate Over Trading Block: It was a very mild day on the street. How did the holiday weekend volatility play out last week? It?s that time again - the volume numbers are in! Microsoft buys Nokia. Odd Block: Calls...
Posted September 6th, 2013

Option Block 273: Trades to Salivate Over

Trading Block: It was a very mild day on the street. How did the holiday weekend volatility play out last week? It?s that time again - the volume numbers are in! Microsoft buys Nokia.

Odd Block: Calls trade in Timken Company (TKR), NetApp Inc (NTAP), Oasis Petroleum Inc. (OAS), and Fastenal Company (FAST).

Strategy Block: What happens when your covered call goes in the money?

Mail Block:

  • Question from Phillip Kay - What is the ASPs take on Tesla skew? Upside still steep and a good candidate for verticals or has that ship sailed?
  • Comment from Mark Clyde Brant @MarkBrant1KM [email protected] Tesla and Netflix managers are dumping shares en masse! Sep long Puts in play.
  • Question response from bitcoinbravo - Hedging Bitcoin Mining Investments with Network Difficulty Futures: Part 1 ? Hedging Shipment - http://thegenesisblock.com/hedging-bitcoin-mining-investments-with-network-difficulty-futures-part-1-hedging-shipment-delay/ 

 

Around the Block: Non-farms and Syria ahead.


Option Block 272: Presidential Rope-A-Dope, or Bags of Money

Option Block 272: Presidential Rope-A-Dope, or Bags of Money Trading Block:  Labor Day weekend is nearly upon us. VIX cash above the 16-handle. Jobless claims are down, as expected.   HFT and algos appear to have had a negligible impact on...
Posted August 30th, 2013

Option Block 272: Presidential Rope-A-Dope, or Bags of Money

Trading Block:  Labor Day weekend is nearly upon us. VIX cash above the 16-handle. Jobless claims are down, as expected.   HFT and algos appear to have had a negligible impact on the vol of major futures contracts.

Odd Block:  Puts trade in Garmin ltd. (GRMN) Calls buyers in Taiwan Semiconductor Mfg. (TSM).

Mail Block: 

  • Question from Mike - I have been watching Dollar General for a while. What do you mean by the seller could be using an up-tick in volatility going into earnings for a better sale?
  • Question from Tim C. - Is it true if I sell a time spread that OX will margin me as if I am naked short the longer-term option? If so I do not understand that? Why wouldn?t they treat it like a spread until the nearer-term option expires?
  • Question from Avega - Why would I ever trade a back spread? Why waste money on a reverse ratio - say 3x2. Then I am just net long one contract - can I just save money and buy the one?

Around the Block: Watch out for the weekend risk! Perhaps scoop some cheap premium on friday. Syrian developments?


Option Block 271: Sabre Rattling Rattles Markets

Option Block 271: Sabre Rattling Rattles Markets Trading Block: A mild rally on the street until Kerry started sabre rattling in Washington, sending the markets down. NASDAQ, Goldman and others still facing heat over their tech meltdowns last week....
Posted August 27th, 2013

Option Block 271: Sabre Rattling Rattles Markets

Trading Block: A mild rally on the street until Kerry started sabre rattling in Washington, sending the markets down. NASDAQ, Goldman and others still facing heat over their tech meltdowns last week. BATS and Direct Edge merging. TABB Group predicts options commissions to shrink of the next few years.  Commodity rundown with Mike Tosaw.

Odd Block: Large buy writes go up in Facebook Inc. (FB), and puts trade in ProShares Short 20+ Year Treasury ETF (TBF).

Xpress Block: Tesla, Biotechs, and Facebook!

Mail Block:

Question from bitcoinbravo: Any thoughts on bitcoin -- especially as the flows continue into this emerging digital currency and we see with futures and derivatives market develop -- currently there is a lot of arbitrage opportunities between the various exchanges

Question from Charles P.: I am an employee of a very large (and widely held) technology firm. As you might expect, a substantial amount of my net worth is tied up in the stock of my employer. However, I am expressly forbidden from trading any derivatives in my employers stock even for hedging purposes. So my question to you is - how do I hedge myself in this scenario?

Around the Block: Glued to the news of Syria. Non-farms next week.


Option Block 270: Looking Behind the Curtain

Option Block 270: Looking Behind the Curtain Trading Block: NASDAQ halts trading today over tech glitch. Many big names were impacted. Goldman Sachs screws up JPM options trading. Question from T_Pal: Should I be concerned about the wave of...
Posted August 23rd, 2013

Option Block 270: Looking Behind the Curtain

Trading Block: NASDAQ halts trading today over tech glitch. Many big names were impacted. Goldman Sachs screws up JPM options trading. Question from T_Pal: Should I be concerned about the wave of technology problems impacting the market? Can they impact my trading? Saw Mark L. quoted a lot of this. What's his take?

Odd Block: Calls trade in Express, Inc. (EXPR), calls and puts trade in Accuray Incorporated (ARAY), and calls trade in Uranium Energy Corp. (UEC)

Strategy Block: Uncle Mike Tosaw discusses the situation of a covered call moving in the money and the ways in which to think about it.

Around the Block: A hopefully glitch-free week. Looking ahead to see what may be coming out of Washington.


Option Block 269: Listener Questions a Go-Go

Option Block 269: Listener Questions a Go-Go Trading Block: Another down day on the markets. The 3-year and 10-year are bumping up against levels we haven't seen in a while. Mail Block: Your questions, our answers Question from Lee Patterson - I've...
Posted August 20th, 2013

Option Block 269: Listener Questions a Go-Go

Trading Block: Another down day on the markets. The 3-year and 10-year are bumping up against levels we haven't seen in a while.

Mail Block: Your questions, our answers

  • Question from Lee Patterson - I've been an Option Block listener for a few months and you've inspired me to hedge my retirement plan through my employer. It has been 100% invested in the S&P 500 and unfortunately I cannot use options in this account. My idea is to go to cash in my retirement plan at work while buying 3 month at the money calls in SPY and rolling them when they are 1 month from expiration in my Roth account. To finance these I would sell the weekly SPY about 2-3% out of the money. Does this seem like a reasonable plan to participate in the upside while limiting losses or is there a better way? Thanks for your time. Lee
  • Question from @Metegia - Which direction is a Risk Reversal, which is short RR? Descriptions conflict. Thanks.
  • Question from A. Jackson - Andrew referenced "double butterflies" on a recent episode of the Option Block. Can you explain a little more about that position - how it differs from regular fly, when/why you'd want to use it, strike selection, etc. Thank you very much Mark for making so much excellent options content freely available to everyone. Your network is certainly one-of-a-kind and I'm glad to see that it is doing so well.
  • Question from Richard D. - Hello! In this episode there is a discussion on taking advantage of TSLA skew and using OTM TSLA butterflies on both sides at strike. Could you explain a little more about skew, and if long/short butterflies are best given skew?

Around the Block: FOMC minutes.  Keeping an eye on the 3-year and 10-year.


Option Block 268: Commodity Sea of Green

Option Block 268: Commodity Sea of Green Trading Block: A broad selloff across the board today.  Inflation fears spook the Fed and the market.  Cisco off 7%, looking at layoffs. Walmart off 3%.  A sea of green in the commodities. Record...
Posted August 16th, 2013

Option Block 268: Commodity Sea of Green

Trading Block: A broad selloff across the board today.  Inflation fears spook the Fed and the market.  Cisco off 7%, looking at layoffs. Walmart off 3%.  A sea of green in the commodities. Record day in the VIX - only 133 contracts short of 1 million.

Odd Block: Review from 7/29 - very well-timed paper in American Eagle Outfitters (AEO). calls trade in SPDR S&P Homebuilders ETF (XHB), and combos trade in Microsoft Inc. (MSFT).

Xpress Block: Single leg WalkLimit goes live!

Mail Block: Website comment from nrlbuild - Enjoyed your show as usual, always fun to have Mr. Sebastian on the air! I feel the need to stick up for Motley Fool a little. I have been a member since around 2000...and been in two of their options services since 2008. They actually have some good stuff with respect to options...I think even you tough veterans would agree if you understood. Unfortunately, the Fool universe is so large and varied, not unlike Seeking Alpha, that there is often as much junk as there is quality...it really depends upon which specific Fool service one subscribes. I have never understood why they don?t control that more carefully? Anyway, if it wasn?t for them I never would have come to options in the first place?and now I?ve found you guys! ;) Carry on! Ned

Around the Block: More earnings? HPQ - 8/21. Keeping an eye on the 10-year.


Option Block 267: Betting Against Yourself

Option Block 267: Betting Against Yourself Trading Block: A relatively flat day on the street. A big day for Silver and Apple ?both  up 3%. It was a good day for Tosaw!  Blackberry exploring strategic options with the  stock up...
Posted August 13th, 2013

Option Block 267: Betting Against Yourself

Trading Block: A relatively flat day on the street. A big day for Silver and Apple ?both  up 3%. It was a good day for Tosaw!  Blackberry exploring strategic options with the  stock up 11%. Tesla finally sells off.

Odd Block: Review from 7/1 - Air Products and Chemical (APD), calls trade in Sanchez Energy Corp. (SN), combos trade in Rockwell Medical Inc. (RMTI), call spreads trade in Micron Technology, Inc.(MU).

Mail Block:

  • Question from D. Adams - What is the best way to express a long-term bullish position using options?
  • Question from Terry Russ, Scottsdale, AZ - Can you guys run down the difference between an iron condor and an iron butterfly? When would I want to use one vs the other? Thanks for this great show. 

Around the Block: Earnings are still happening. Cisco  on 8/14, and Cosi on 8/15.


Option Block 266: Juice and Paper

Option Block 266: Juice and Paper Trading Block: Commodities rundown featuring Matt - starting with Nat Gas. The ride for Tesla continues. DNDN after the close. NVDA after the bell. Odd Block: Call buyers in Microsoft Corp (MSFT) and calls trade in...
Posted August 9th, 2013

Option Block 266: Juice and Paper

Trading Block: Commodities rundown featuring Matt - starting with Nat Gas. The ride for Tesla continues. DNDN after the close. NVDA after the bell.

Odd Block: Call buyers in Microsoft Corp (MSFT) and calls trade in Freeport-McMoRan Corp (FCX).

Xpress Block: New single leg options transactions with the WalkLimit!

Mail Block:

  • Question from @SouthbayTrader1 -  @Options "Juice"? "Paper"?  (probably time for an overview of these two terms that we use so frequently on the show)
  • Comment from nrlbuild: I have been listening to Option Block for a couple of months now...really enjoy the show. Have been long ATVI since 2009, got in via short puts. Wish I been listening to your show when you were discussing short strangles on it, I was always to scared it would be called away! I really enjoyed Volatility Views...listened to every single episode... and was wondering if it was going to be returning? The VolX site seems to be stagnate.

Around the Block: DNDN & NVDA update.


Option Block 265: The Innovator

Option Block 265: The Innovator Trading Block: Giving back some of the gains on the street today. A surprising pop in Blackberry. Apple touching near-term highs.  ALSO GLD, SLV, ETC Odd Block: Odd Block Review: Dendreon Corp. (DNDN), put spreads...
Posted August 6th, 2013

Option Block 265: The Innovator

Trading Block: Giving back some of the gains on the street today. A surprising pop in Blackberry. Apple touching near-term highs.  ALSO GLD, SLV, ETC

Odd Block: Odd Block Review: Dendreon Corp. (DNDN), put spreads trade in DeVry Inc. (DV), put spreads trade in The Chubb Corp. (CB), calls trade in China Automotive Systems, Inc. (CAAS), and call spread roll in Deckers Outdoor Corp (DECK).

Xpress Block: Tesla very active with earnings coming up. CBOE and Alcatel-Lucent active as well.

Strategy Block: The credit spread with benefits.

Around the Block: Upcoming Earnings: Groupon - 8/7, Tesla - 8/7, Disney - 8/6.


Option Block 264: Swimming in a Sea of Green

Option Block 264: Swimming in a Sea of Green Trading Block: A sea of green across the board. S&P crosses 1700 mark on strong manufacturing data. Unemployment claims at a 5.5 year low. Activision and LinkedIn earnings after the bell. CME reports a...
Posted August 2nd, 2013

Option Block 264: Swimming in a Sea of Green

Trading Block: A sea of green across the board. S&P crosses 1700 mark on strong manufacturing data. Unemployment claims at a 5.5 year low. Activision and LinkedIn earnings after the bell. CME reports a 27% rise in quarterly profits, still down 4%.

Commodity rundown: metals, nat gas, coffee, etc.  It's number day again - The Options Industry Council (OIC) announced today that total options contracts traded in July was up 5.81%. Average daily volume for the month was up 1.00%. Year-to-date volume up 1.93%. Equity options volume up 4.39%. Average daily volume for equity options in July slightly off of last year?s contracts by 0.35%. Year-to-date equity options volume up only 0.16%.

Odd Block: Calls trade in SPDR Gold Trust (GLD), calls trade in Nvidia Corporation (NVDA), puts trade in iShares MSCI Emerging Markets Index (EEM), and fly trades in Oil States International (OIS).

Xpress Block: A very busy, non-expiration day at OX.

Mail Block: We have such curious listeners!

  • Question from MMax - Can you give us an update on mini-options?
  • Question from George Roop, Nashville, TN - Can you explain why the hosts take such a dim view of USO? It's really one of the few viable ways for retail to make longer-term bullish bets on oil.

Around the Block: Non-farms in the crosshairs. CBOE earnigns tomorrow before the open. Groupon 8/7, Disney 8/6, Nvidea 8/8, Tesla 8/7 after.


Option Block 263: The Wasted Year

Option Block 263: The Wasted Year Trading Block: A mild selloff across the board. GLD sells off fractionally on the day. ISE Gemini set to launch Aug 5. CBOE announces new VIX trading hours. Odd Block: Pre-earnings run in Activision Blizzard Inc....
Posted July 30th, 2013

Option Block 263: The Wasted Year

Trading Block: A mild selloff across the board. GLD sells off fractionally on the day. ISE Gemini set to launch Aug 5. CBOE announces new VIX trading hours.

Odd Block: Pre-earnings run in Activision Blizzard Inc. (ATVI), stock replacement in Alcatel Lucent SA (ALU), interesting pre-earnings play in American Eagle (AEO), and was there a hedge in iShares MSCI Japan Index (EWJ)?

Odd Block Review: Looking back to 6/27: Goodrich Petroleum Corp. (GDP) - stock trading $12.90, buying 6,000 Aug 15 calls for $.45. Stock now trading $17.50, calls worth $2.96 - a $2.50 profit = $1.5M. Still 10K open on strike - looks like he hasn't closed these yet.

Xpress Block: "Big data week." It?s a wait and see situation.  Nothing can derail the Tesla train.

Around the Block: A full calendar of economics this week. Non-farms Friday.


Option Block 262: Cramer Loves It

Option Block 262: Cramer Loves It Trading Block: Zynga earnings after the close. Someone paid 17% for a one-month straddle! Amazon earnings are also after the close. Facebook! Facebook! Facebook! Commodity rundown - An overview of recent action in...
Posted July 26th, 2013

Option Block 262: Cramer Loves It

Trading Block: Zynga earnings after the close. Someone paid 17% for a one-month straddle! Amazon earnings are also after the close. Facebook! Facebook! Facebook! Commodity rundown - An overview of recent action in futures/futures options. Options "insiders" come forward.

Odd Block: Put spreads trade in Crocs, Inc (CROX), and calls trade in Denderon Corp. (DNDN).

Xpress Block: Questions, anyone?

Question from Tom P.  Are we ever going to see Walk-Limit on single leg trades? I'm a teacher so I can't always be there to close out my trades on the open. This is particularly difficult around earnings season. I may miss the only chance to sell my option for a decent price on the open because I'm away from my screens. I would love to be able to enter a target sale price for my options (long call, etc.) and then have OX walk the price down automatically until it hits the actual trading price. This would save busy people like me a lot of time, and potentially a lot of lost profits.

Around the Block: An update on AMZN and ZNGA. TTWO coming up on 7/30.


Option Block 261: NFLX Strangles Children

Option Block 261: NFLX Strangles Children Trading Block: Netflix earnings are after the bell. Could it be the return of the widow-maker? McDonald's down 3%. It?s never a good sign for the economy when McD can't make money. A follow-up on...
Posted July 23rd, 2013

Option Block 261: NFLX Strangles Children

Trading Block: Netflix earnings are after the bell. Could it be the return of the widow-maker? McDonald's down 3%. It?s never a good sign for the economy when McD can't make money. A follow-up on our good discussion on after-hours options trading from our last show.  Is 3pm still reasonable?

Odd Block: Call ratios trade in Skechers USA Inc. (SKX), calls trade in Verisign Inc. (VRSN), puts sold on the World Acceptance Corp. (WRLD), and call sellers in General Growth Properties (GGP).

Xpress Block: Metals and oil predominately featured on the desk today.

Mail Block: The all stars channel their inner therapists, and Obi Wan

  • Question from Doc Robbins. I just sold NFLX 240 260/280 July week 4 iron fly at $18 with stock at 259. Am I crazy? Longo would be proud.
  • Question from Charles N. I?m looking at Ford July W 16.5-17.5 strangle for $.25. How's that for free gamma pre-earnings?
  • Question from Mr_Work. Am I crazy, or is $.21 for Zynga July weekly 3.5 puts a lousy deal
  • Question from George Winters. Microsoft July 35-34 put 1x2 for $.10 before earnings: winner or waste of money?
  • Question from Joe Rigg. I tried to write the Blackberry weekly 9 put with OX, but the system kicked it out and said BBRY was now on increased margin. Why is that? How is this decided? Is it a decision by the broker or an industry wide decision? How is the new margin level determined? Help me Viceroy, you're my only hope!

Around the Block: Earnings, Earnings, Earnings! Ford 7/24 before, Facebook 7/24 after, Electronic Arts 7/23 after, Amazon 7/25 after, Apple - 7/23, United Airlines 7/25 before, Zynga 7/24 after.


Option Block 260: Doing the Earnings Straddle Dance

Option Block 260: Doing the Earnings Straddle Dance Trading Block: Earnings-Palooza: Google, Microsoft and more after the bell. Odd Block: Combos trade in Rite Aid Corp (RAD), paper buying calls in Covanta Holding Corp. (CVA), and puts trade in YY...
Posted July 19th, 2013

Option Block 260: Doing the Earnings Straddle Dance

Trading Block: Earnings-Palooza: Google, Microsoft and more after the bell.

Odd Block: Combos trade in Rite Aid Corp (RAD), paper buying calls in Covanta Holding Corp. (CVA), and puts trade in YY Inc. (YY)

Xpress Block: This should be a very interesting expiration coming up. A little bit of everything is coming across the desk. Google and Microsoft both missed.

Strategy Block: Mr. Tosaw discusses straddles as this week's strategy.

Around the Block: One last check-in on Google and Microsoft. Upcoming earnings: Apple ? 7/23, Zynga - 7/24, and Amazon - 7/25.


Option Block 259: Reverse Splits & Twinkies

Option Block 259: Reverse Splits & Twinkies The all-stars are joined by guest co-host Henry Schwartz, the Founder of Trade Alert. Trading Block: A modest, broad rally on the street. Earnings season is in full swing. Pre-deal call in LEAP from...
Posted July 16th, 2013

Option Block 259: Reverse Splits & Twinkies

The all-stars are joined by guest co-host Henry Schwartz, the Founder of Trade Alert.

Trading Block: A modest, broad rally on the street. Earnings season is in full swing. Pre-deal call in LEAP from Friday. Earnings action in Goldman-Sachs. CITI earnings before the open. Bloomberg beating the drum on VIX puts. Retail sales sluggish, up less than expected in June.

Odd Block: Combos trade in United Online, Inc. (UNTD)

Xpress Block: The Twinkie is back. A slow day as everyone is keeping their powder dry for the big earnings later this week.

Around the Block: Earnings: IBM, Intel and Bank of America - 7/17; Microsoft, Nokia, Google and Chipotle - 7/18.


Option Block 258: Highly Accommodative Policy

Option Block 258: Highly Accommodative Policy Trading Block: Uncle Ben's comments about "highly accommodative policy" spark yet another rally. It's going to be all about the earnings next week. It has been "rally ho" in the metals. Odd Block: Calls...
Posted July 12th, 2013

Option Block 258: Highly Accommodative Policy

Trading Block: Uncle Ben's comments about "highly accommodative policy" spark yet another rally. It's going to be all about the earnings next week. It has been "rally ho" in the metals.

Odd Block: Calls trade in Colfax Corp (CFX), puts trade in Atlas Pipeline Partners, L.P. (APL), calls trade in WisdomTree Investments Inc (WETF), and calls trade in Whiting USA Trust (WHX).

Xpress Block: It's a race to 1,000 between Priceline and Google. Green lights all over the screen today.

Listener Mail: Gamma effect

Question from Neal Rivers - You guys have discussed the "gamma effect" before on this program. My question is - how far before an earnings announcement does this typically kick in? Can I buy some gamma two or three weeks before the announcement and expect to pay no decay? Or is it more like two or three days?

Around the Block: JP Morgan and Wells Fargo & Co. both have earnings on Friday. Goldman Sachs - 7/16; Microsoft, Nokia, Google, Chipotle - 7/18; and IBM, Intel, Bank of America 7/17.


Option Block 257: Deep Dive into Gold, Silver and Oil

Option Block 257: Deep Dive into Gold, Silver and Oil Interview Block: Today's guest is Matthew Bradbard, futures broker from RCM Asset Management.  Hel discusses recent trends in metals and energies with the Option Block gang. Trading Block:...
Posted July 9th, 2013

Option Block 257: Deep Dive into Gold, Silver and Oil

Interview Block: Today's guest is Matthew Bradbard, futures broker from RCM Asset Management.  Hel discusses recent trends in metals and energies with the Option Block gang.

Trading Block: Another broad, but mild rally on the street. Zynga rallies hard on the news of new CEO:  snatching a dubious hire from Microsoft. INTC down 4% off analyst downgrades.

Odd Block: Calls trade in Zynga Inc. (ZNGA) and call spreads trade in Elan Corp. (ELN).

Around the Block: Alcoa earnings, which means this is the start of earnings season!


Option Block 256: The Great AAPL and GLD Rebound

Option Block 256: The Great AAPL and GLD Rebound: Trading Block Another broad rally - a "doing stuff" kind of day. Gold spikes. Blackberry annihilated post-earnings. Corzine finally charged in MF Global debacle. The Options Industry Council (OIC)...
Posted July 2nd, 2013

Option Block 256: The Great AAPL and GLD Rebound:

Trading Block

Another broad rally - a "doing stuff" kind of day. Gold spikes. Blackberry annihilated post-earnings. Corzine finally charged in MF Global debacle. The Options Industry Council (OIC) announced today that 361,180,257 total options contracts traded in June, up 10.86 percent compared to last year.

Odd Block

Calls Rolled in Sina Corp (SINA) 

Legging into a Butterfly in Tempurpedic (TPX) 

Puts Trading Air Products and Chemical (APD)

Xpress Block

Metals, Tesla and Apple were lighting up the tape. Alex gives us a good lesson about margin.

Strategy Block

Tosaw walks us through his recent strategy involving moving to cash after some rumbling in SPY

Around the Block

Earnings looming on the horizon. Remember the Independence Day holiday is this Thursday - be aware to the effect of theta.


Option Block 255: Balloon is Over-squeezed

Option Block 255: Balloon is Over-squeezed Trading Block: Rally Ho! Again. Vol crushed, but not as aggressively as expected. Are the pronouncements of the death of Apple's vol premature?  Prosecutors finally get around to charging Corzine in MF...
Posted June 28th, 2013

Option Block 255: Balloon is Over-squeezed

Trading Block: Rally Ho! Again. Vol crushed, but not as aggressively as expected. Are the pronouncements of the death of Apple's vol premature?  Prosecutors finally get around to charging Corzine in MF Global debacle. 30-year mortgage rate at 4.46%.

Odd Block: Calls trade in Statoil ASA (STO), Goodrich Petroleum Corp (GDP), and New York Community Bancorp (NYCB).

Xpress Block: Alex discusses GDX, Newmont Mining (NEM), and other trade ideas from the Idea Hub.

Around the Block: Blackberry earnings before the open.


Option Block 254: Unlearn What Does Not Work

Option Block 254: Unlearn What Does Not Work Trading Block: Futures, interest rates, bonds and the 10-year dominated trading today. It was an otherwise slow day for volatility. Interview Block: This week's guest is Nate Bluestein from Pivotal Trading...
Posted June 25th, 2013

Option Block 254: Unlearn What Does Not Work

Trading Block: Futures, interest rates, bonds and the 10-year dominated trading today. It was an otherwise slow day for volatility.

Interview Block: This week's guest is Nate Bluestein from Pivotal Trading Concepts. He discusses how Pivotal Trading Concepts was created and helps educate traders.

Odd Block: Calls trade in Web MD (WBMD), and puts Trade in Gerdau S.A. (GGB).

Xpress Block: It was a pretty quiet day at OX. Alex discusses VIX, CBOE and the 10-year. 

Around the Block: The 10-year could continue to determine what's happening in the market. Which way will China play out?


Option Block 253: Market Maelstrom

Option Block 253: Market Maelstrom Trading Block: The broad indices were down over 2%. All red, all day. Fed will cut $85 billion in monthly bond purchases by $20 billion. VIX cash breaks through the 20-handle for the first time since December....
Posted June 21st, 2013

Option Block 253: Market Maelstrom

Trading Block: The broad indices were down over 2%. All red, all day. Fed will cut $85 billion in monthly bond purchases by $20 billion. VIX cash breaks through the 20-handle for the first time since December. Apple, Google, GLD and more!

Odd Block: Call combo unwinds in the CBOE Volatility Index (VIX) for big money, puts trade in Fleetcor Technologies (FLT), and puts trade in Contango Oil and Gas Co (MCF).

Xpress Block: It's about time for an Alex Jacobson-style rant.  This is a market for options!

Strategy Block: It's a two-for day in the strategy block: Risk vs. margin and being long-term bullish but short-term cautious.

Around the Block: Will there be more selloff in the future? Should we keep the power dry going into the weekend?


Option Block 252: The Dangers of Covered Straddles

Option Block 252: The Dangers of Covered Straddles Trading Block: Market rallies ahead of the Fed, but lost steam in the late session. Gold selloff ahead of the Fed. Odd Block: Puts trade in PVR Partners, LP (PVR), calls trade in Insmed Incorp....
Posted June 18th, 2013

Option Block 252: The Dangers of Covered Straddles

Trading Block: Market rallies ahead of the Fed, but lost steam in the late session. Gold selloff ahead of the Fed.

Odd Block: Puts trade in PVR Partners, LP (PVR), calls trade in Insmed Incorp. (INSM), and puts trade in UltraShort Real Estate Proshares (SRS)

Xpress Block: Netflix moves over $15, but otherwise, not a very exciting trading day

Listener Mail: The floor belongs to the listeners.

Question from Dalton Hicks - I?ve just discovered this show and I think it's fantastic. Thanks for all of your great material. I've learned quite a bit. I wanted to write in today to ask about the new strategy I've stumbled upon in my trading.  I used to be a covered call seller in individual equity options. But I've recently started thinking about kicking this up a notch by turning into a "covered straddle seller." This strategy has many benefits over a traditional covered call. I?ve never heard this approach discussed on this program (at least in the recent episodes that I've heard), so I'd like the host's take on this exciting new strategy.

Around the Block: Waiting for Bernanke.


Option Block 251: Insider Trading, Options-Style

Option Block 251: Insider Trading, Options-Style Trading Block: Is the VIX going backwards? The rally has returned. Jobless claims fall by 12,000, sparking the rally.  An insider trading case involving options. ?For the first time since its...
Posted June 14th, 2013

Option Block 251: Insider Trading, Options-Style

Trading Block: Is the VIX going backwards? The rally has returned. Jobless claims fall by 12,000, sparking the rally.  An insider trading case involving options. ?For the first time since its inception, high-frequency trading, the bogey machine of the markets, is in retreat.? VXX options hit record open interest. Exchanges finally subject to fines for misconduct.

Odd Block: Unwinding in Dole Food Company, Inc. (DOLE), calls trade in Monster Worldwide Inc. (MMW), and spreads trade in Sangamo Biosciences Inc. (SGMO)

Xpress Block: United Airlines showcased in the Idea Hub today. Updates on the Walk Limit.

Mail Block: Keep those questions coming.

  • Question from Jillian T. - Why is it so difficult to crack down on insider trading in options?
  • Question from Doug K, Halifax, Nova Scotia - I?ve been long spy shares for much of the recent rally. Now I'm more than a little concerned. I've learned about collars through the great shows on this network. Do you think this is a good environment to consider a zero cost collar? Is a spy put/put spread a better option? Or would you recommend something else entirely? Thanks for all of your insight over the years.
  • Question from T-Bill - Does OX defer commissions when I close out short options for pennies?

Around the Block: Markets are thin for the summer. A lot more 1% movement days in our near future.


Option Block 250: Goldilocks Non-Farms Numbers

Option Block 250: Goldilocks Non-Farms Numbers Trading Block: It was a quiet day on the market. Non-farms announcement came out last Friday.  What are some trading ideas following a large event like this? Odd Block: Calls trade in Linhas Aereas...
Posted June 11th, 2013

Option Block 250: Goldilocks Non-Farms Numbers

Trading Block: It was a quiet day on the market. Non-farms announcement came out last Friday.  What are some trading ideas following a large event like this?

Odd Block: Calls trade in Linhas Aereas Inteligent (GOL), puts trade in Celldex Therapeutics Inc. (CLDX), and put spreads trade in Southern Copper Co. (SCCO).

Xpress Block: S&P changed the outlook on U.S. debt from negative to stable. How could this have an effect on the 10-year?

Around the Block: What economic impact could the flood in Europe have on the market? Earnings are only five weeks away.


Option Block 249: Great Expectations

Option Block 249: Great Expectations Trading Block: Another schizophrenic day on the street. McDonald's announces some 24-hr stores will serve breakfast after midnight. The Zynga apocalypse! A big move in Apple. Odd Block: Calls trade in Savient...
Posted June 7th, 2013

Option Block 249: Great Expectations

Trading Block: Another schizophrenic day on the street. McDonald's announces some 24-hr stores will serve breakfast after midnight. The Zynga apocalypse! A big move in Apple.

Odd Block: Calls trade in Savient Pharmaceuticals Inc. (SVNT), a collar unwinds in DOLE Food Company (DOLE), and call spreads trade in Tessera Technologies Inc. (TSRA).

Xpress Block: What's new in the Idea Hub, weeklies, etc?

Listener Mail: In which you, the listener, take over the program.

Question from John King [email protected]: Have you read Schaeffer?s theory that Friday selloff due to delta hedging by SPY put sellers?

Around the Block: Non-Farms. Non-Farms. Non-Farms! It will be the biggest event on Friday.


Option Block 248: The Ice Is Always Melting

Option Block 248: The Ice Is Always Melting Trading Block: It was a bit of a head scratcher today, as an infusion of end-of-day buying threw a wrench into the machine. Disappointing ISM numbers, putting a laser focus on the jobs numbers out Friday....
Posted June 4th, 2013

Option Block 248: The Ice Is Always Melting

Trading Block: It was a bit of a head scratcher today, as an infusion of end-of-day buying threw a wrench into the machine. Disappointing ISM numbers, putting a laser focus on the jobs numbers out Friday. Market share and volume day with overall total options volume up 3% in May.

Odd Block: Very near-term bullish play in Iron Mountain Inc. (IRM), sizable spread trade in WisdomTree Japan Hedged Equity Fund (DXJ), and put spread trades in Corning Inc. (GLW).

Xpress Block: Fanny Mae, Tesla, Zynga and the 10-year lighting up the tape. The Apple minis have finally gotten some traction.

Strategy Block: In today's strategy block, Mike Tosaw discusses the use of margin and if it makes sense.

Around the Block: Forget the earnings, the employment report is coming up, expect big volume.


Option Block 247: The Confidence Trade

Option Block 247: The Confidence Trade Trading Block: The rally continues with interest rates and bonds hot. Looking forward to the 10-year VIX from the CME. Tesla breaks 100. Will the hype never end? Ford breaks $16. Odd Block: Collars closes in...
Posted May 31st, 2013

Option Block 247: The Confidence Trade

Trading Block: The rally continues with interest rates and bonds hot. Looking forward to the 10-year VIX from the CME. Tesla breaks 100. Will the hype never end? Ford breaks $16.

Odd Block: Collars closes in Approach Resources Inc. (AREX), and big call purchase in T-Mobile USA (TMUS).

Xpress Block: Alex discusses what's been lighting up the desk at OX and the Idea Hub.

Listener Mail: What questions do you have for the all-stars?

  • Question from Tom Finn: what does the option block all-star panel think of NYT?s recent attack on options?
  • Question from Bill Heter, Cape Cod, MA - what is the difference between a collar and a bearish risk reversal?
  • Question from d_sub: have you guys ever experienced opportunities to buy verticals for even or a credit?

Around the Block: Interest rates. Employment report next week.


Option Block 246: Jump on the Boat with the 10-Year Note

Option Block 246: Jump on the Boat with the 10-Year Note Trading Block: CBOE/CME launches a new 10-year treasury VIX. It is the first volatility index based on U.S. government debt to be calculated and disseminated by CBOE. CBOE stock hits $40 on its...
Posted May 24th, 2013

Option Block 246: Jump on the Boat with the 10-Year Note

Trading Block: CBOE/CME launches a new 10-year treasury VIX. It is the first volatility index based on U.S. government debt to be calculated and disseminated by CBOE. CBOE stock hits $40 on its 40th anniversary. CRM & MRVL earnings after the bell.  TSLA - hard to short stock, bears turning to puts. MSFT - is there no love for the new Xbox One?  GME ? could the new could Xbox wipe out the lucrative grey market for used games? GME is the leading liquidity provider. Vol is creeping back into Ford - stock had a nearly $.60 range today, up sharply over the past few aweeks.

Odd Block: Calls trade in Halozyme Therapeutics Inc. (HALO), Ratio put spreads trade in Alerian MLP (AMLP), and combos trade in Warner Chilcott ltd (WCRX)

Xpress Block:  A lot of names, including the 10-year, lighting up the phones at OX. The June condor in the SPX, an example off of the Idea Hub.

Strategy Block: Mike Tosaw discusses "nimbility" - the ability to be nimble. It's very important to be nimble when trading, and not get locked in a specific strategy.

Around the Block: Holiday weekend. Don't forget to watch out for the weekend! Market should be very thin tomorrow.


Option Block 245: Golden Tickets & Oompa Loompas

Option Block 245: Golden Tickets & Oompa Loompas Trading Block: It was an unchanged day on the street with stocks hovering around record highs. Does this rally have legs, or are we poised for a collapse? There was a weird dip in SPX on Friday...
Posted May 21st, 2013

Option Block 245: Golden Tickets & Oompa Loompas

Trading Block: It was an unchanged day on the street with stocks hovering around record highs. Does this rally have legs, or are we poised for a collapse? There was a weird dip in SPX on Friday night due to APC. Jumbo SPX is a flop so far. Only 18 contracts have traded through the middle of last week.  Everyone is still refusing to list it.

Odd Block:Calls trade in Navios Maritime Holdings Inc. (NM), calls trade in Foster Wheeler Ltd (FWLT), and calls trade in Big Lots Inc. (BIG).

Xpress Block: Alex talks some more about the Trading Patterns Tool from OX, and what its most active trades have been recently.

Listener Mail: What do you want to know?

  • Question from Douggie_L: Why all the fuss with Jumbo SPX? Why won't others trade it?
  • Question from Montevecchio: I'm starting to learn about time spreads. Can you guys explain roll risk and how it can impact me?

Around the Block: A holiday this upcoming weekend. Watch out for the theta gremlins creeping into your portfolio.


Option Block 244: Car Talk

Option Block 244: Car Talk Trading Block: It was down day on the markets. A lot of political news came out of Syria late in the day. Could Tesla be Apple 2.0? Xpress Block: Alex talks about the OX feature "Trading Patterns," which lets you look at...
Posted May 17th, 2013

Option Block 244: Car Talk

Trading Block: It was down day on the markets. A lot of political news came out of Syria late in the day. Could Tesla be Apple 2.0?

Xpress Block: Alex talks about the OX feature "Trading Patterns," which lets you look at what underlyings people traded in the OX environment. Available to most OX customers.

Strategy Block: Mike Tosaw discusses what we've been seeing in the market. Rallies in the market, staying long-term bullish but short-term cautious and collar strategies.

Around the Block: Earnings coming out soon: DELL, JCP and HP. A bit more stability in interest rates. Watching Apple, of course.


Option Block 243: The Viceroy Trade

Option Block 243: The Viceroy Trade Trading Block: Another unchanged day. Netflix up due in part to the return of Arrested Development. Take Two earnings after the bell. Zynga gets a big pop in the day. First live day of jumbo SPX on Friday.  ISE...
Posted May 14th, 2013

Option Block 243: The Viceroy Trade

Trading Block: Another unchanged day. Netflix up due in part to the return of Arrested Development. Take Two earnings after the bell. Zynga gets a big pop in the day. First live day of jumbo SPX on Friday.  ISE lost its Supreme Court lawsuit and refuses to list contract. Ironic?

Odd Block: Calls trade in Zynga, Inc. (ZNGA), puts trade in VIX short-term Futures ETN (VXX), and puts trade in Solarcity Corp (SCTY).

Xpress Block: Alex Jacobson discusses his thoughts on the big OX event this weekend.

Strategy Block: Mike Tosaw dispenses yet another legendary rant of the topic of annuities. He also talks about the ratio spread.

Around the Block: Cisco earnings on 5/15, Cosi on 5/16 post 4/1 reverse stock split.


Option Block 242: Dollar vs Yen - The Eternal Battle

Option Block 242: Dollar vs. Yen - The Eternal Battle INTERVIEW BLOCK: Today's guest is: Kevin Davitt, futures broker at RCM. He comes to the Option Block today to discuss ags, commodities and metals - as well as the record set by the dollar and the...
Posted May 10th, 2013

Option Block 242: Dollar vs. Yen - The Eternal Battle

INTERVIEW BLOCK: Today's guest is: Kevin Davitt, futures broker at RCM. He comes to the Option Block today to discuss ags, commodities and metals - as well as the record set by the dollar and the yen.

TRADING BLOCK: Only a bit of movement on the market today - S&P sitting at the 16 handle. Priceline earnings, Shatner might be disappointed with the results. Tesla exploded to hit $70 in the after hours. 

ODD BLOCK: Combos Trade in Vera Bradley Inc. (VRA)

Calls Trade in Digital Realty Trust Inc. (DLR)

XPRESS BLOCK: All the big option names: Tesla, Green Mountain, Apple, Lululemon and Priceline. Yen and Aussie Dollar light up the currencies. 

AROUND THE BLOCK: Don't forget about the Options Insider Unusual Activity forum coming up next week, Wednesday May 15!


Option Block 241: "Legalized Front-Running"

Option Block 241: "Legalized Front-Running" Trading Block: The market trading much more modestly than recent rallies. ZNGA leaning on Farmville 2 - slashing 5% of workforce. Apple rallies up 11 handles, after they announced buybacks. VIX Cash well...
Posted May 7th, 2013

Option Block 241: "Legalized Front-Running"

Trading Block: The market trading much more modestly than recent rallies. ZNGA leaning on Farmville 2 - slashing 5% of workforce. Apple rallies up 11 handles, after they announced buybacks. VIX Cash well south of 200 day moving avg. of 15.26. VXX ranks as #3 exchange traded product by volume - avg. 53 million shares/day. Buffet's right hand man, Charlie Munger, calls high-frequency trading "legalized front-running" and "basically evil". EA earnings after the close.

Odd Block: Calls trade in Nationstar Mortgage Holdings. Inc (NSM), calls trade in Network Appliance Inc. (NTAP), and calls trade in Gran Tierra Energy Inc (GTE)

Xpress Block: Tesla lighting up the tape at OX. A lot of stocks trading through their strikes. Lululemon traded back below 75. 

Mail Block: Question from BillyMo (@b1llmoo): Do you guys think the Jumbo SPY will be listed on all exchanges and will it be penny wide.

Around the Block: The Jumbo SPY launches! EA update. Earnings: Activision - 5/8 after, Disney - 5/7 (The force is strong with them), Groupon - 5/8 after, Nvidia - 5/9, Tesla - 5/8.


Option Block 240: Questions Linger After CBOE Shutdown

Option Block 240: Questions Linger After CBOE Shutdown TRADING BLOCK: The yo-yo markets continue - down 1%, up 1%. Facebook misses but still feels the love. LinkedIn down after hours. Earnings...Earnings...Earnings! ODD...
Posted May 3rd, 2013

Option Block 240: Questions Linger After CBOE Shutdown

TRADING BLOCK: The yo-yo markets continue - down 1%, up 1%. Facebook misses but still feels the love. LinkedIn down after hours. Earnings...Earnings...Earnings!

ODD BLOCK: Calls trade in Neutral Tandem Inc (IQNT) and calls trade in Monster Worldwide Inc. (MWW)

XPRESS BLOCK: OX unveils a new quick trade function for iPad users, as well as other new front ends. 

LISTENER MAIL: Question from TBD6: The CBOE outage made me wonder - what do I do if I can't access those products again?  Question from Nick Milligan, Toronto, ON: Do you think the CBOE crash will spell the end of proprietary products like SPX and VIX?

AROUND THE BLOCK: Non-farm payrolls. Earnings: CBOE 5/3 - before the open, Tesla 5/8.


Option Block 239: Rally Ho!

Option Block 239: Rally Ho! Interview Block: Today's guest is Erik Long from Quant Trade, a CTA who primarily day trades futures. His method of looking at the markets can be associated with any time frame and he has some interesting insight for our...
Posted April 30th, 2013

Option Block 239: Rally Ho!

Interview Block: Today's guest is Erik Long from Quant Trade, a CTA who primarily day trades futures. His method of looking at the markets can be associated with any time frame and he has some interesting insight for our listeners.

Trading Block: Rally Ho! Again. There was some serious tech love on the street with Google, Apple, Intel, and IBM up 2% or more today. Overall earnings season is still not living up to the hype.

Odd Block: Calls roll in Health Net Inc. (HNT), puts trade in Canadian Solar Inc. (CSIQ), calls trade in Energy Transfer Equity LP (ETE), and there was a steady put seller in Northern Oil and Gas Inc. (NOG).

Xpress Block: Herbal Life, Facebook, Apple, Google and IBM all kept traders at OX locked to their desks.

Around the Block: Substantial juice levels going into earnings on the 1st.


Option Block 238: Markets Have a Headache

Option Block 238: Markets Have a Headache   Trading Block: Weekly expiration this Friday. Exxon sells off after a disappointing earnings announcement. CBOE was down for most of the day, causing a lot of headaches. Bundesbank came out and rejected...
Posted April 26th, 2013

Option Block 238: Markets Have a Headache

 

Trading Block: Weekly expiration this Friday. Exxon sells off after a disappointing earnings announcement. CBOE was down for most of the day, causing a lot of headaches. Bundesbank came out and rejected the "outright monetary transaction" taking the wind out of the sails today.

Odd Block: Put spreads trade in Open Text Corp. (OTEX),calls trade in Supernus Pharmaceuticals Inc. (SUPN), giant combination trades in Talisman Energy Inc. (TLM), and crushing volume in Incredimail Ltd. (PERI).

Xpress Block: News just crossed the tape that George Soros just purchased an 8% stake in JC Penney.

Strategy Block: Uncle Mike, Andrew, and Alex each discuss their favorite war stories about some of the dumbest trades they've seen.

Around the Block: Upcoming earnings include Amazon, AIG, Pfizer, JC Penney. Could Europe end up back on the warning screens?


Option Block 237: Buy Juice, Be Happy

Option Block 237: Buy Juice, Be Happy Trading Block: VIX cash turns to the dark side. CAT earnings were not overwhelming. Netflix earnings have yet to come out, but there?s a lot of love for the "widow maker." Microsoft is also feeling a lot of...
Posted April 23rd, 2013

Option Block 237: Buy Juice, Be Happy

Trading Block: VIX cash turns to the dark side. CAT earnings were not overwhelming. Netflix earnings have yet to come out, but there?s a lot of love for the "widow maker." Microsoft is also feeling a lot of love.

Odd Block: Calls trade in General Motors Corp. (GM), calls roll on a Medivation Inc. (MDVN) spread, and big calls trade in Micron Technology Inc. (MU).

Xpress Block: Alex discusses how we're starting to see volume in big cap names again, like Proctor & Gamble, GE, Oracle, Intel, and Microsoft. Apple and Amazon earnings this week, please understand the risk if you're a premium seller.

Strategy Block: Uncle Mike talks about puts in GLD, including when and when you should not to roll a put. Long-term bullish, short-term cautious!

Around the Block: More earnings yet to come this week, including Facebook, Zynga, Apple, Ford, and Amazon.


Option Block 236: Riding the Earnings Rollercoaster

Option Block 236: Riding the Earnings Rollercoaster Trading Block: The market was down big time. Again. Earnings-palooza after the close with CMG, GOOG, MSFT, and IBM reporting. Odd Block: Puts trade in Bally Technologies Inc. (BYI), put spreads trade...
Posted April 19th, 2013

Option Block 236: Riding the Earnings Rollercoaster

Trading Block: The market was down big time. Again. Earnings-palooza after the close with CMG, GOOG, MSFT, and IBM reporting.

Odd Block: Puts trade in Bally Technologies Inc. (BYI), put spreads trade in Banco Itau Holdings SA (ITUB), OTM puts trade in Auxilium Pharmaceuticals Inc. (AUXL), and Financial Select Sector (XLF) puts trading early.

Xpress Block: Alex Jacobson discusses pending legislation in Washington. New proposed tax laws: capping IRAs, and the elimination of 1256, which creates mark-to-market accounting for every contract.

Around the Block: More earnings fun.


Option Block 235: The Difference Between Risk Management & Market Timing

Option Block 235: The Difference Between Risk Management & Market Timing Trading Block: An aggressive selloff wipes out most gains on the street today. Precious metals take a bath on the news that China development is slowing down. Gold down 9%....
Posted April 16th, 2013

Option Block 235: The Difference Between Risk Management & Market Timing

Trading Block: An aggressive selloff wipes out most gains on the street today. Precious metals take a bath on the news that China development is slowing down. Gold down 9%. Priceline, Apple, Google, everything down. It was a bloodbath.

Xpress Block: Alex Jacobson discusses what was up and what was down in this very prominent date on the market.

Mail Block: What do you want to know?

  • Question from Phil Bickers, Binghamton, NY: If I buy 10 regular contract with 5 Minis at OX, do they all count as a single trade, or am I going to pay the minimum plus the contract amount for each trade separately?
  • Question from Mr. T-Box: What do you guys think of the Minis so far? Commissions are high for contract size and the spreads are wide. Are they worth trading, or should we wait and see?

Strategy Block: Uncle Mike Tosaw discusses reallocation, as well as working out the difference between risk management and market timing.

Around the Block: Earnings this week include: Google, IBM, and Intel.


Option Block 234: Debunking the Expiration Graph Myth

Option Block 234: Debunking the Expiration Graph Myth Trading Block: Ford was off to the races again, in a very mixed market.  Vol was mixed as well. Money is coming out of Asia into the U.S. market. Microsoft was down in a big way. Odd Block:...
Posted April 12th, 2013

Option Block 234: Debunking the Expiration Graph Myth

Trading Block: Ford was off to the races again, in a very mixed market.  Vol was mixed as well. Money is coming out of Asia into the U.S. market. Microsoft was down in a big way.

Odd Block: Calls trade in Yahoo! Inc. (YHOO), big puts trade in Cell Therapeutics (CTIC), calls trade in ImmunoCellular Therapeutics Ltd (IMUC), and calls trade in iShares MSCI Japan Index (EWJ).

Xpress Block: Activity in Chipotle, Priceline, and Facebook. Apple was all over the place today.

Strategy Block: Uncle Mike Tosaw discusses his pet peeve, the expiration graph, and how it has dominated options education and retail trading.

Around the Block: Earnings-palooza on the horizon: Microsoft, Chipotle, Citi Group, Google, Bank of America, Intel, Nokia, IBM, Apple, JP Morgan.


Option Block 233: Trickle Down SPX

Option Block 233: Trickle Down SPX Trading Block: The market is gaining back some ground after a skittish week. Here we go again with Alcoa earnings after the bell. Uncle Mike updates us on Ford, GLD, SLV and Apple. Is there any love for Facebook at...
Posted April 9th, 2013

Option Block 233: Trickle Down SPX


Trading Block: The market is gaining back some ground after a skittish week. Here we go again with Alcoa earnings after the bell. Uncle Mike updates us on Ford, GLD, SLV and Apple. Is there any love for Facebook at these levels? The market is not loving FB Home apparently. Caribou Coffee pulling out of Chicago. BOX files with the SEC for a jumbo SPDR - 1000 multiplier.

Odd Block: Calls trade in Wisdom Tree India Earnings Fund (EPI), calls trade in Lufkin Industries Inc. (LUFK), puts and stock trade in Microsoft Corp. (MSFT), and calls trade in Goodyear Tire and Rubber Co. (GT).

Xpress Block: A mini volume and customer interest update from Alex.

Around the Block: A whole lot of nothing coming out of Alcoa, which kicks off earnings week.


Option Block 232: Crushing Inflation

Option Block 232:  Crushing Inflation Trading Block: Facebook goes after Google. Bank of Japan moving a lot today. S&P opened lower than gold for the first time since the flash crash. How high can the interest rate go? Odd Block: Big calls...
Posted April 5th, 2013

Option Block 232:  Crushing Inflation

Trading Block: Facebook goes after Google. Bank of Japan moving a lot today. S&P opened lower than gold for the first time since the flash crash. How high can the interest rate go?

Odd Block: Big calls trade in the S&P 500 VIX Short Term Futures ETN (VXX), more puts trade in Alerian MLP ETF (AMLP), and out month put buy in Bank of America Corp. (BAC)

Xpress Block: Rates, Yen and other Asian markets lit up the OX desk today. Citadel is petitioning the supreme court over the CBOE/ICE/SXP case.

Strategy Block: Tosaw clarifies the difference between market timing and risk management.

Around the Block:  Non-Farm payrolls come out in the morning. Rates will be a main focus.


Option Block 231: April Fool Joke from Tesla?

Option Block 231: April Fool Joke from Tesla? Interview Block: RCM?s Matt Bradbard talks about interest rates. When might they reverse course and head upwards? What is the Eurodollar? Trading Block: We actually saw a rise in VIX today. Tesla was...
Posted April 2nd, 2013

Option Block 231: April Fool Joke from Tesla?

Interview Block: RCM?s Matt Bradbard talks about interest rates. When might they reverse course and head upwards? What is the Eurodollar?

Trading Block: We actually saw a rise in VIX today. Tesla was today's big news: they made a profit for the first time this quarter! Apple bouncing off the lows.

Odd Block: Calls trade in North American Palladium Ltd. (PAL), large put block trades in Health Care Select Sector SPDR (XLV), and calls trade in Cisco Systems Inc. (CSCO).

Xpress Block: Tesla and Apple were both lighting up the desk at OX today. The first returns on the weeklies on futures options show that they are a resounding success. How are the Minis doing?

Around the Block: Looking forward to a somewhat quiet week ahead.


Option Block 230: The Psychology of Options Trading

Option Block 230: The Psychology of Options Trading Interview Block: Today's guest is Benjamin Lee, founder of Think|Trade|Think. He talks about the psychology of trading, and gives us a preview of his upcoming RCM webinar. Trading Block: There was a...
Posted March 26th, 2013

Option Block 230: The Psychology of Options Trading

Interview Block: Today's guest is Benjamin Lee, founder of Think|Trade|Think. He talks about the psychology of trading, and gives us a preview of his upcoming RCM webinar.

Trading Block: There was a bit of a selloff, as concerns about Cyprus crept back into the market. Which way are we heading from here?

Odd Block: Puts trade in DaVita Healthcare Partners Inc. (DVA), more calls make news in Thomson Reuters Corp. USA (TRI), and Globe Specialty Metal (GSM) trading puts.

Xpress Block: OX customers give feedback on the Minis.

Around the Block: Keeping an eye on the TLT and iron condors. Blackberry earnings are on 3/28 before the bell.


Option Block 229: The Death Hedge

Option Block 229: The Death Hedge Trading Block: Most indexes closed down by the end of the day. Juice comes back into the VIX. Cypress: is it the new Greece? GLD, SLV and other metals up on the day. Lululemon recalls "see-through" yoga pants. Odd...
Posted March 22nd, 2013

Option Block 229: The Death Hedge

Trading Block: Most indexes closed down by the end of the day. Juice comes back into the VIX. Cypress: is it the new Greece? GLD, SLV and other metals up on the day. Lululemon recalls "see-through" yoga pants.

Odd Block: Calls spread trades in the VIX, put buying in Citigroup Inc. (C), and big trades in Constellation Brands Inc. (STZ).

Xpress Block: Two names stood out on the desk: General Motors and Dell.

Strategy Block: Mike Tosaw gets his very own rant about busting the myths of annuities. Go, Mike, go!

Around the Block: Keeping an eye on Cypress. We're close to all-time highs in the market.


Option Block 228: Mini Mania

Option Block 228: Mini Mania Interview Block: Today's Guest: Kevin Davitt, Global Execution & Futures Broker at RCM. RCM will be hosting a webinar this Thursday night. Trading Block: There was a bit of a selloff in the market due to news coming...
Posted March 19th, 2013

Option Block 228: Mini Mania

Interview Block: Today's Guest: Kevin Davitt, Global Execution & Futures Broker at RCM. RCM will be hosting a webinar this Thursday night.

Trading Block: There was a bit of a selloff in the market due to news coming out of Cypress, which is rekindling fears of a Europe crisis. Today is the day: Mini contracts begin trading today. What is the OX procedure and policy for Minis?

Odd Block: Ratio strangle trades in Neonode, Inc. (NEON), put buyers active in Globe Specialty Metals, Inc. (GSM), puts trade in Reality Income Corp. (O), and calls trade in Swift Transportation Co. (SWFT).

Xpress Block: Cypress, Minis and Gold were all popular topics today at OX. When will we see Minis in the Idea Hub?

Around the Block: Watching a silent rally in Apple. VIX cash creeping up. Cypress still making headlines. Minis and their affect.


Option Block 227: When Options Make an $800,000,000 Profit

Option Block 227: When Options Make an $800,000,000 Profit Trading Block: The S&P's are right up against their all-time highs. Citadel exited their E-Trade position, which is down 75% from when they bought it, and still turned an $800M profit with...
Posted March 15th, 2013

Option Block 227: When Options Make an $800,000,000 Profit

Trading Block: The S&P's are right up against their all-time highs. Citadel exited their E-Trade position, which is down 75% from when they bought it, and still turned an $800M profit with hedging and options. Minis begin trading Monday, March 18.

Odd Block: It was a hard luck day for E-Trade (ETRA), running of the bulls in KBW Regional Bank ETF (KRE), and an incredible purchase in Heckmann Corp (HEK).

Xpress Block: What's new in the Ides Hub? Blackberry is back in the news.

Strategy Block: Making adjustments on a simulated index concept strategy.

Around the Block: How high will the S&P 500 reach? Gold & Silver. Mini options.


Option Block 226: Up, Up and Away

Option Block 226: Up, Up and Away Interview Block: Today's guest is Joe Garcia-Rios, Founder of Rios Quantitative & President and Chief Portfolio Manager of Advanz Analytics Group.  Trading Block: There is no sign of the end to the rally. VIX...
Posted March 12th, 2013

Option Block 226: Up, Up and Away

Interview Block: Today's guest is Joe Garcia-Rios, Founder of Rios Quantitative & President and Chief Portfolio Manager of Advanz Analytics Group. 

Trading Block: There is no sign of the end to the rally. VIX has an 11-handle for the first time since 2007. Minis launch next week! ISE will launch their second exchange -- the Topaz Exchange.

The Odd Block: March 13.5 calls trade in Ford.

Around the Block: Keeping an eye on the VIX, Apple and Google.


Option Block 225: Spreads with Benefits

Option Block 225: Spreads with Benefits Trading Block: The market is apparently shrugging off the Sequester with a mild rally as of mid-day. Implied and realized volatility cross, which is a very rare occurrence. Google feeling the love and broke the...
Posted March 5th, 2013

Option Block 225: Spreads with Benefits

Trading Block: The market is apparently shrugging off the Sequester with a mild rally as of mid-day. Implied and realized volatility cross, which is a very rare occurrence. Google feeling the love and broke the 800 level, while Apple feeling the heat falling well south of $450. Groupon is showing some signs of life bouncing dramatically off lows around $4.25.

Odd Block: Risk reversals trade in Bridgepoint Education Inc. (BPI), call buyers in Zhongpin Inc. (HOGS), calls trade in Tronox ltd. (TROX), and more calls trade in Mitek Systems Inc (MITK).

Xpress Block: Alex Jacobson discusses more ideas from the Idea Hub, new OX products, and new OX order types.

Strategy Block: Mike Tosaw discusses the "credit spread with benefits."

Around the Block: Seems like more bears are coming out of the woodwork making dire predictions for the market going forward. Sequester, sequester, sequester! What else on the horizon could generate some vol?


Option Block 224: No Watered Down Options Information

Option Block 224: No Watered Down Options Information Trading Block: Downward movement across the market, making a late reversal. Not a ton of movement in our favorite fruit company. VIX had a big turnaround during the day. Facebook sells off. AB...
Posted March 1st, 2013

Option Block 224: No Watered Down Options Information

Trading Block: Downward movement across the market, making a late reversal. Not a ton of movement in our favorite fruit company. VIX had a big turnaround during the day. Facebook sells off. AB allegedly watering down their beer - stock unaffected.

Odd Block: Fresh call buyers in TD Ameritrade Holding Corp. (AMTD), profit taking via Bank of America Corp. (BAC), puts trade in Cablevision Systems Corp. (CVC) after earnings, and call trading activity in DigitalGlobe Inc. (DGI).

Xpress Block: A relatively quiet day at the OX desk today.

Mail Block: FB question from listener: I listen to your podcast and really enjoy it. I heard a while back that Uncle Mike was short the 26 put on Facebook. I had a 25 put assigned to me, and I rode it down to 18 and back up to 28.68, where I sold my shares. I now have the April 23 short put. I am enclosing a chart that I would like to comment on. It is the reason why I chose the April 23 put.

Around the Block: Sequester, Sequester, Sequester! The big cutting day is almost here.


Option Block 223: Making Money for the End of the World

Option Block 223: Making Money for the End of the World Interview Block: Today's Guest: Ed Walczak, Principal Trader at Harbor Financial.  He specializes in options on the S&P futures contracts, and does everything from ratios to credit...
Posted February 26th, 2013

Option Block 223: Making Money for the End of the World

Interview Block: Today's Guest: Ed Walczak, Principal Trader at Harbor Financial.  He specializes in options on the S&P futures contracts, and does everything from ratios to credit spreads.

Trading Block: Another day, another selloff, another VIX cash pop. The return of realized vol to the downside. Ford engine investigation. Is Uncle Mike reconsidering his 12 puts? Is Barnes and Noble next to go private? Zynga rallies 7.5% today. Exchange trend continuing -- CME to acquire DB? DB couldn't merge with NYSE, so why would regulators approve this? SEC examining how stock exchanges create new order types.

Odd Block: Steady buyers of Frontline Ltd (FRO) puts, and puts trade in Linn Co., LLC (LNCO).

Xpress Block: A blood-letting day at the OX desk. Expanding the Idea Hub for futures options. 

Around the Block: How long can we hold these levels of realized vol? GRPN 2/27


Option Block 222: Bonds. Contrarian Bonds.

Option Block 222:  Bonds. Contrarian Bonds. Trading Block: The majority of the market sold off by 1%.  On the news that bonds might sell off, they rallied. Apple breaks through 450. Google hanging around the 800 level. Odd Block: A collar...
Posted February 22nd, 2013

Option Block 222:  Bonds. Contrarian Bonds.

Trading Block: The majority of the market sold off by 1%.  On the news that bonds might sell off, they rallied. Apple breaks through 450. Google hanging around the 800 level.

Odd Block: A collar went up in Texas Roadhouse (TXRH); call spreads trade in Gerdau SA (GGB), and calls active in Blackstone Group (BX).

Xpress Block: SPX and April Condors are hopping.

Strategy Block: Today's strategy honors Hannibal Smith of the A-Team. Put selling strategies on SPY-- long-term bullish and short-term cautious.

Around the Block: Looking ahead at Tesla Motors. Keeping an eye on the S&P 500. Seeing if Google can stay near 800.


Option Block 221: Suspiciously Well-Timed Call Buying

Option Block 221: Suspiciously Well-Timed Call Buying Trading Block: The market was mixed today, with the VIX cash off slightly. GM profits down from 2011, stock down 3%. Jobless claims decrease last week. Zynga flirts with $4 before retreating back...
Posted February 15th, 2013

Option Block 221: Suspiciously Well-Timed Call Buying

Trading Block: The market was mixed today, with the VIX cash off slightly. GM profits down from 2011, stock down 3%. Jobless claims decrease last week. Zynga flirts with $4 before retreating back to $3. Former RIMM CEO dumps the rest of his stock, never a good sign. ?CBOE Group Holdings Inc., which became a publicly held company in 2010 after years of effort, would consider going private again if doing so benefits its shareholders, a top executive said on Thursday.? PHLX's Sandy Frucher is getting OIC's Sullivan this year. Is the PHLX saga really worth celebrating?

Odd Block: Big call Activity in Hess Corp. (HES), and suspiciously well-timed call buying in Constellation Brands Inc. (STZ).

Xpress Block: It was a quiet day, with the exceptions of Facebook and Blackberry. A new pricing scheme in futures. What's new with implementing the Minis? The devil is in the details.

Mail Block: What do you want to know from the All-Stars?

Question from Filipp001: When SPX daily options?

Strategy Block: The credit spread with benefits.

Around the Block: Earnings are still coming up, including Tesla Motors 2/20, Marriot 2/20. Remember that Monday, Feb 18 is a non-trading day.


Option Block 220: Who Needs Annuities When You Can Sell Puts on GOOG?

Option Block 220: Who Needs Annuities When You Can Sell Puts on GOOG? Interview Block: Today's guest is Doug Berman, Vice President of Agriculture Derivatives, RCM Asset Management. He talks about Why this is an extremely exciting time in the corn...
Posted February 12th, 2013

Option Block 220: Who Needs Annuities When You Can Sell Puts on GOOG?

Interview Block: Today's guest is Doug Berman, Vice President of Agriculture Derivatives, RCM Asset Management. He talks about

  • Why this is an extremely exciting time in the corn option market.
  • The unique relationship between implied volatility and pricing
  • How traditional strategies like covered calls/collars perform in the Ag realm vs. equity options 
  • On Wednesday, February 13, Doug will be sharing with us his ideas and systems for trading futures and options on corn.

Trading Block:A meandering day on the street today. We?re still deep in the earnings with CBOE, ATVI, MSFT, and CMG all rallying strong post-earnings. RIMM/BBRY staying strong as well. Apple watch is back on.

The Odd Block: Bullish put spread trades in Bank of America Corp. (BAC), small call block goes up in Superconductor Corp. (AMSC), aggressive opening call buyer in Walgreens Co. (WAG), and closing calls trade in Chilcott Ltd. (WCRX).

Xpress Block: Alex discusses some impending price changes in futures and futures options. Now $3.50! + exchange fees and NFA fees.

Around the Block: Cisco earnings 2/13, LivePerson 2/12, NVidia 2/13, Tesla 2/13. Watching Radian Group, Google and Apple.

 


Option Block 219: Trading Options to Infinity and Beyond

Option Block 219: Trading Options to Infinity and Beyond Trading Block: Zynga blows the doors off the market - the 2.5 puts were the sale of the century. Disney reported earlier this week, and is selling well. Activision gets a little bit of a bump to...
Posted February 8th, 2013

Option Block 219: Trading Options to Infinity and Beyond

Trading Block: Zynga blows the doors off the market - the 2.5 puts were the sale of the century. Disney reported earlier this week, and is selling well. Activision gets a little bit of a bump to the upside. Shareholders filing suit against Apple as their cash reserve grows.

Odd Block: Puts trade in DeVry Inc. (DV), puts trade in JPMorgan Chase & Co. (JPM), and a big block of calls trades in Marathon Petroleum Corp. (MPC).

Xpress Block: Best Buy and Blackberry were popular at OX. A phenomenal amount of puts selling - short put call is 95% puts to calls.

Strategy Block: Mike Tosaw talks about implied volatility, and other side of the coin to vol.

Around the Block: CBOE earnings 2/8 before the bell. Cisco 2/13. Nvidea 2/13. Tesla Motors 2/13. The President's State of the Union address is Tuesday.


Option Block 218: Do Not Pay for Juice

Option Block 218: Do Not Pay for Juice Trading Block: Selloff keeps some life in the VIX cash. Profit taking, and rumbles out of Spain, weigh on the market. Facebook down 5%. Apple down 2%. Odd Block: Puts trade in Dell Inc. (DELL), a massive 1x2 Call...
Posted February 5th, 2013

Option Block 218: Do Not Pay for Juice

Trading Block: Selloff keeps some life in the VIX cash. Profit taking, and rumbles out of Spain, weigh on the market. Facebook down 5%. Apple down 2%.

Odd Block: Puts trade in Dell Inc. (DELL), a massive 1x2 Call Spread Trades in Delphi Automotive PLC (DLPH), time spreads trade in Bruker BioSciences Corp. (BRKR), and calls trade in Questar Corp. (STR).

Xpress Block: Alex Jacobson discusses GLD volatility, SPX PM, and premiums. Of 256 companies reporting earning so far, 68.4% have beat estimates compared with a 62% average since 1994.

Mail Block: Let the All-Stars answer your questions.

  • Question from Alessandro - What does the all-star panel think of a long Ford 11-12 1x2 put spread for $.05?
  • Question from Bob G. - Do you guys prefer to go into earnings long or short volatility?
  • Question from Tony O. - Hey Uncle Mike, I?d like your opinion on going long the GLD March 155-168 bullish risk reversal for approximately even money? Or would you prefer to add a short 172 call kicker and collect about $.30?
  • Question from Mr. Mikey - Does the OX Idea Hub take into account changes in open interest when highlighting trading idea?

Around the Block: Earnings! Activision on 2/7 after the close, Chipotle on 2/5 after the close, CBOE 2/8 before the open. Plus, CBOE stock has been on a serious tear since ICE/NYSE merger announcement.


Option Block 217: Now What Are We Going to Watch?

Option Block 217: Now What Are We Going to Watch? Trading Block: Most of the major indexes closed fractionally down, weighed down by some less-than-stellar earnings. There was a bit of interesting activity in Facebook. RIMM, now known as BlackBerry,...
Posted February 1st, 2013

Option Block 217: Now What Are We Going to Watch?

Trading Block: Most of the major indexes closed fractionally down, weighed down by some less-than-stellar earnings. There was a bit of interesting activity in Facebook. RIMM, now known as BlackBerry, announced the new BlackBerry 10. Former founder of PFG sentenced to 50 years. Netflix pulls a reverse Widow Maker.

Odd Block: Big put spread goes up in Exxon Mobil Corp. (XOM), a large block of calls trade in Taiwan Semiconductor Inc. (TSM), a closing trade in Take-Two Interactive (TTWO), and puts trade in Expeditors International of Washington Inc. (EXPD)

Xpress Block: Chatter on the OX forums has been heavy in Netflix and Priceline. Not much movement in vol. 

Strategy Block: Tosaw discusses selling the put on Ford and buying call options.

Around the Block: Non-Farms comes out tomorrow. What is there to watch after that?


Option Block 216: Embracing Degeneracy

Option Block 216: Embracing Degeneracy Trading Block: Most indexes closed fractionally up or down on the day. Vol continues to stay at record lows. Action in Ford and Facebook so far this week. Odd Block: Puts trade in Western Union Co. (WU), a block...
Posted January 29th, 2013

Option Block 216: Embracing Degeneracy

Trading Block: Most indexes closed fractionally up or down on the day. Vol continues to stay at record lows. Action in Ford and Facebook so far this week.

Odd Block: Puts trade in Western Union Co. (WU), a block of calls trade in Facebook Inc. (FB), and calls trade in Take-Two Interactive Software (TTWO).

Xpress Block: Alex discusses the latest from the Idea Hub, which included a lot of SPX PM ideas today. CFTC approved the Euro stock futures in the U.S. today.

Strategy Block: Great Uncle Mike Tosaw discusses selling puts on the S&P 500, a strategy they use at RCM.

Mail Block: The All-Stars answer listener questions.

  • Question from Tom S., Philadelphia -  Ford March 14 calls for $0.40 - Buy or Sell?
  • Question from Charles C., Cambridge, MA - What do you guys think of the Ford March 12-15 bullish risk reversal for even to a nickel debit?

Around the Block: Yahoo! earnings. Ford earnings tomorrow before the open. Facebook on 1/30, Amazon on 1/29, Electronic Arts on 1/30.


Option Block 215: Apple and More Apple

Option Block 215: Apple and More Apple Trading Block: There was a pronounced selloff in Apple following earnings. The interesting news is that almost everything was up today, except Apple. Odd Block: Unusual activity in CBOE, Infinera Corp. (INFN),...
Posted January 25th, 2013

Option Block 215: Apple and More Apple

Trading Block: There was a pronounced selloff in Apple following earnings. The interesting news is that almost everything was up today, except Apple.

Odd Block: Unusual activity in CBOE, Infinera Corp. (INFN), and Stryker Corp. (SYK).

Around the Block: More earnings next week. There could potentially be a big move, given how low volatility has been recently.


Option Block 214: Apple Moves and Hysteria Ensues

Option Block 214:  Apple Moves and Hysteria Ensues Trading Block: The markets actually moved today! Apple breaks down below the 500 level. Oil continues to rally. Citi and BoA are both taking it on the chin following earnings.  Odd Block:...
Posted January 18th, 2013

Option Block 214:  Apple Moves and Hysteria Ensues

Trading Block: The markets actually moved today! Apple breaks down below the 500 level. Oil continues to rally. Citi and BoA are both taking it on the chin following earnings. 

Odd Block: Some upside love in Brookdale Senior Living (BKD), calls active in Avail Pharmaceuticals, and puts selling in DeVry Inc. (DV).

Xpress Block: Apple earnings have been lighting up the screens of the Idea Hub at OX. A mandatory update on Extend has been released. 

Strategy Block: Uncle Mike discusses getting out of nickel options this week.

Around the Block: Intel earnings in. Big earnings next week: Apple and Netflix on 1/23; AMD and Google on 1/22, Southwest and Microsoft on 1/24.


Option Block 213: Waxing Nostalgic about Floor Days

The Kim Kardashian Effect
Posted January 15th, 2013

Option Block 213: Waxing Nostalgic about Floor Days

Trading Block: Apple hits 11-month low and is hovering around $500 strike off news of decreasing iPhone demand. Apple selloff put some vol back into the market. Good earnings -- despite the Apple news, 80% of S&P 500 companies that have reported so have beat their earnings estimates. A lot of volume in Dell.

Odd Block: Puts trade in Telefonaktiebolaget LM Ericsson (ERIC); large call seller in Charles Schwab Corp. (SCHW), and calls trading in Sealed Air Corp. (SEE).

Xpress Block: The Marches have gone up this week. Russell and ETFs. Gold, Facebook and weeklies.

The Mail Block: Home Ec tips from our listeners

Tweet from Money Hat - Seabass is crazy! There is no difference between the shiny and dull sides of tin foil. That's just an old wives tale.

Email from Paul - Venice, FL - Can I sell covered calls on a convertible preferred stock? In particular BAC.PR.L. I chose this name because it pays a roughly 9% dividend yield, but I would like to augment that income stream if possible. Thank you for your insight and for your informative (and surprisingly entertaining) program. I didn?t know I could have such a good time learning about options trading.

Around the Block: Earnings, earnings, earnings! Bank of America, Citi, JP Morgan, Morgan Stanley, US Bank Corp.


Option Block 212: Sweep the Leg, Johnny

Option Block 212: Sweep the Leg, Johnny Trading Block: There was a broad rally across the street, but VIX cash languishing yet again. Alcoa earnings send out a resounding "meh," with the stock essentially unchanged. It?s a premium sellers dream....
Posted January 14th, 2013

Option Block 212: Sweep the Leg, Johnny

Trading Block: There was a broad rally across the street, but VIX cash languishing yet again. Alcoa earnings send out a resounding "meh," with the stock essentially unchanged. It?s a premium sellers dream. BATS executes hundreds of thousands of transactions outside NBBO.  CBOE rebranding: "Execute Success." Are you sure about that?

Odd Block: Calls trading in Microsoft Corp. (MSFT), Applied Materials Inc. (AMAT) calls trade, large blocks of opening calls trade on Deckers Outdoor Corp. (DECK), and interesting call trading in GT Solar International Inc. (GTAT).

Xpress Block: The Idea Hub feature "Walk Limit" has reached version 2 on the OX platform.  Now it?s fully customizable! 

Strategy Block: Harvesting credit spreads using multiple weeklies with Uncle Mike.

Around the Block: Interesting earning on the horizon: CITI, BAC, and INTC all on 1/17. GS on 1/16 before the bell.


Option Block 210: New Year, No Volatility

Option Block 210: New Year, No Volatility Trading Block: It?s the first episode of 2013! The world hasn't ended, since the heroes in Congress once again settled on a deal. Volatility update. Odd Block: Takeover talks spur call trading in Zipcar...
Posted January 4th, 2013

Option Block 210: New Year, No Volatility

Trading Block: It?s the first episode of 2013! The world hasn't ended, since the heroes in Congress once again settled on a deal. Volatility update.

Odd Block: Takeover talks spur call trading in Zipcar (ZIP), and a large VXX put spread trades.

Xpress Block: Earnings season begins next week with Alcoa on 1/8.

Strategy Block: Mike Tosaw expands upon volatility, using VIX as a weather vane, and selling puts, all wrapped within a well-told story.

Mail Block: Question from Chandra B - Natick, MA: Hey Mark, I love the Radio show...I find myself wanting the next show because I something new every episode. My question is: How should a trader handle stop losses on a naked call/put and/or a vertical spread. When should you call it quits? IBD mentions 8% for stocks, but what is the level for options? Thanks.

Around the Block: How low can vol go? Earnings next week, how big could they be?


Option Block 209: 2012 Year in Review

Option Block 209: 2012 Year in Review   2012 Year in Review Block: A lot of whip-saw action in the market today, given the uncertainty in Washington. ETPs have added substantial end-of-day volatility. Scandal in the retail market, specifically...
Posted December 28th, 2012

Option Block 209: 2012 Year in Review

 

2012 Year in Review Block:

A lot of whip-saw action in the market today, given the uncertainty in Washington. ETPs have added substantial end-of-day volatility. Scandal in the retail market, specifically the implosion of PFG, has lead to a steady decline in retail options volume. Peak 6 acquired Penson and created Apex Clearing, which caused a lot of problems. A lot of price movement in the underlying in Apple this year. A big SPY dividend trade ended up costing millions of dollars due to a clearing error. VIX is cheap, vol is low - we've heard this non-sense all year. Knight trading collapsed. Hurricane Sandy closed the markets in New York for two full days. ICE acquired NYSE Group. The expansion of weeklies continues to be a big story. Mini Apple will be release next year in March. Worst trade of the year: Someone had the bright idea to buy 20,000 VIX Feb 70 calls.


Option Block 208: Options Fuel the Exchange War

Option Block 208: Options Fuel the Exchange War Trading Block: News is circulating of a potentially sizable acquisition/merger of ICE and NYSE Euronext, which includes ARCA and AMEX. The market was fractionally up on the day. Jan vol futures are still...
Posted December 21st, 2012

Option Block 208: Options Fuel the Exchange War

Trading Block: News is circulating of a potentially sizable acquisition/merger of ICE and NYSE Euronext, which includes ARCA and AMEX. The market was fractionally up on the day. Jan vol futures are still trading below cash. RIMM closed to the upside.

Odd Block: A pickup of bullish paper in the XLF, a three-legged trade in the iShares Dow Jones Transportation Index (IYT).

Xpress Block:  What's new at the Idea Hub? Plus, a question from Max S: When I put on a spread in Xtend, it displays the positions in my position list, but when I go to close a position, I can only one-click close the spread one leg at a time. Is there a way to one-click close a multi-leg spread through Xtend or through the website?

Around the Block: Positioning for a potential dive off the fiscal cliff. Happy holidays from The Options Insider.


Option Block 207: Ratio Combos and Weekly Premium

Option Block 207: Ratio Combos and Weekly Premium Trading Block: We saw a broad rally across the market as rumors of a deal to avert the fiscal cliff are spreading. There was also a mild VIX selloff today. Mark put on my first taste of Apple last week...
Posted December 18th, 2012

Option Block 207: Ratio Combos and Weekly Premium

Trading Block: We saw a broad rally across the market as rumors of a deal to avert the fiscal cliff are spreading. There was also a mild VIX selloff today. Mark put on my first taste of Apple last week - Dec 465/455 put spread. The latest on GLD. Miami Options Exchange (MIAX) finally launches. Bill Brodsky stepping down as Chairman & CEO of the CBOE.

Odd Block: Large Call Buying in Endeavor International Corp. (END), calls trading in Taiwan Semiconductor Manufacturing (TSM), and calls trading in Financial Sector SPDR (XLF).

Xpress Block: Alex Jacobson is in the OX hot seat today and discusses the walk limit product, as well as what's new at the Idea Hub. He also answers this Tweet from Mr. Penny Stock: Alex - Does OX have a premium buying section of the Idea Hub to go with the premium selling section?

Strategy Block: Mike Tosaw discusses using a ratio combo.

Around the Block: RIMM and Nike earnings are coming up. It should be an interesting expiration week with the fiscal cliff looming.


Option Block 206: The Secret World of Open Interest

Option Block 206: The Secret World of Open Interest Trading Block: It was a bloody day on the market; screens were nothing but a sea of red. Apple is now creating its own vol excitement, this time in the 500's. Is Tosaw a degenerate weekly premium...
Posted December 14th, 2012

Option Block 206: The Secret World of Open Interest

Trading Block: It was a bloody day on the market; screens were nothing but a sea of red. Apple is now creating its own vol excitement, this time in the 500's. Is Tosaw a degenerate weekly premium seller? VIX cash headed towards the upside. GLD is at a 13 vol -- how low can it go?

Odd Block: More bullish trading in Quicksilver, Inc. (ZQK) and Golden Minerals Co. (AUMN), also selling paper in AuRico Gold, Inc. (AUQ). Plus, a comment from Duffy: What's the best way to tell if a particular options activity is closing or opening transaction? Thank for your help.

Xpress Block: Alex Jacobson discusses the latest developments at OX. Google seems to be displacing Apple in term of chatter amongst customers. More interesting ideas being kicked out from the "Idea Hub.?

Strategy Block: Tosaw discusses the importance of synthetics, and how they relate to collars.

Around the Block: Earnings: Oracle 12/18, RIMM 12/20. RIMM is actually seeing some life recently.


Option Block 205: The Great Collar Debate

Option Block 205: The Great Collar Debate Trading Block: Most of the market was unchanged today. Vol levels in Apple have been attractively low, is Tosaw back on the short put train? GLD sees a little move to the upside. Odd Block: Unusual activity...
Posted December 11th, 2012

Option Block 205: The Great Collar Debate

Trading Block: Most of the market was unchanged today. Vol levels in Apple have been attractively low, is Tosaw back on the short put train? GLD sees a little move to the upside.

Odd Block: Unusual activity in: Dole Food Co, (DOLE), iShares MSCI Emerging Markets Index (EEM), and iShares MSCI Japan Index (EWJ).

Xpress Block: Alex Jacobson discusses the latest and most interesting trade ideas from the "Idea Hub." A $10 OTM put spread in Apple.

Listener Mail: Our listeners drive the bus for a while.

  • Email from Stephanie C: I hear you guys use the term "paper" all the time. Where does it come from and what does it mean?
  • Email from Tully: Do you think this is a good environment for collars, particularly on some high flyer like Apple, Google, Amazon, etc. Also, what is the best way to structure a collar? Thanks and I'm a long-time fan of the show.

Around the Block: Keeping an eye on FOMC rate decision, gold, and the Euro. Be sure to have your tax plans in place as the year draws to a close.


Option Block 204: Juicy AAPL Puts

Option Block 204: Juicy AAPL Puts Trading Block: Market roughly unchanged on the day. Apple reversing its recent selloff on renewed Apple TV rumors. Apple & FoxConn also investing in American manufacturing and distribution. Holiday sales looking...
Posted December 7th, 2012

Option Block 204: Juicy AAPL Puts

Trading Block: Market roughly unchanged on the day. Apple reversing its recent selloff on renewed Apple TV rumors. Apple & FoxConn also investing in American manufacturing and distribution. Holiday sales looking strong so far. Jobless claims drop after Hurricane Sandy. Sirius declares dividend and buys back $2B worth of shares. Are they yet another company trying to move up their special dividend to avoid next year's tax increase?

Odd Block: Put calendar buying in SPDR S&P 500 Trust ETF (SPY), selling put spreads in iShares MSCI Index Fund (EFA), and buying calls in Zynga, Inc. (ZNGA).

Xpress Block: Joe Cusack is in the OX hot seat today and discusses some of the latest developments at OX and interesting trade ideas from the "Idea Hub".

Strategy Block: Uncle Tosaw discusses weeklies in this strategy block.

Around the Block: Fiscal cliff. Fiscal cliff. Fiscal Cliff. Non-farms in the morning. Weekend approaching but vol still has some legs.


OptionBlock203.mp3

Option Block 203: Still Talking About the Fiscal Cliff Trading Block: A bit of a selloff across most of the major indices. Apple only up slightly today. Ford trading around the 11.5-11.40 range. Odd Block: Andrew Giovinazzi gets to run through some of...
Posted December 4th, 2012

Option Block 203: Still Talking About the Fiscal Cliff

Trading Block: A bit of a selloff across most of the major indices. Apple only up slightly today. Ford trading around the 11.5-11.40 range.

Odd Block: Andrew Giovinazzi gets to run through some of the interesting and unusual activity he saw in the market, including: Leap Frog (LF), Verisign (VRSN), and BioMimetic Therapeutics, Inc. (BMTI).

Xpress Block: A slow day at OX. Alex Jacobson takes the reins and discusses the idea hub.

Around the Block: Still waiting for some kind of news out of Washington about the fiscal cliff. Keep an eye on the special dividend news.


Option Block 202: VIX: How Low Can It Go?

Option Block 202: VIX: How Low Can It Go? Trading Block: Zynga is up 4%, after filing Form 4 with the SEC. Who's going to gobble up Zynga? Today's rally due, in part, to some talks of potential settlement headed towards the fiscal cliff. VIX...
Posted November 30th, 2012

Option Block 202: VIX: How Low Can It Go?

Trading Block: Zynga is up 4%, after filing Form 4 with the SEC. Who's going to gobble up Zynga? Today's rally due, in part, to some talks of potential settlement headed towards the fiscal cliff. VIX tanking.

Xpress Block:  Alex Jacobson gets the OX hot seat once again and discusses VIX. How low can it go? Is it actually low right now? Has our frame of reference changed, or are we in an artificially inflated environment?

Mail Block: Listeners Drive the Conversation.

Via email from Emil Pesiri: I love the show. Do you know of any source that publishes daily updates of options showing a significant horizontal skew? I know of several that publish daily vertical skew, but none that screen and publish horizontal skew updates. Thanks so much.

Comment from Liam: Hey Option Block, great show as always! I have a question for you. Since Microsoft seems to make such bad decisions for itself in terms of buying companies, what would you do if you were in charge of investments over there? Also, do you ever plan on making it out to London? I would love to buy you a pint.


Option Block 201: Traders as Quarterbacks

Option Block 201: Traders as Quarterbacks Trading Block: Black Friday/Cyber Monday/Holiday season appears to be off to a good start. Facebook pops 8% with 60% more volume than normal. Apple rallies 18 handles. Microsoft drops their...
Posted November 27th, 2012

Option Block 201: Traders as Quarterbacks

Trading Block: Black Friday/Cyber Monday/Holiday season appears to be off to a good start. Facebook pops 8% with 60% more volume than normal. Apple rallies 18 handles. Microsoft drops their second-in-command.

Interview Block: Today's guest is Anthony Crudele, Head Trader at eMini Executors.

Xpress Block: Alex Jacobson gets the OX hot seat today and discusses the slow day in today's market. In other news, ISE announced that March 13 is the Mini Options launch date.  They?re the first exchange to announce a specific date, but will others jump the gun?

Around the Block: The VIX doldrums may be ahead.


Option Block 200: It's a Celebration

Option Block 200: It's a CelebrationCelebration Block: Let's pat ourselves on the back for lasting for 200 episodes, the most episodes of any program on our network, and probably the most episodes of any options podcast in history. We've had more...
Posted November 20th, 2012

Option Block 200: It's a Celebration

Celebration Block: Let's pat ourselves on the back for lasting for 200 episodes, the most episodes of any program on our network, and probably the most episodes of any options podcast in history.

  • We've had more episodes than: Seinfeld, Magnum PI, The Cosby Show, Full House, Different Strokes, Golden Girls & Three's Company.
  • We also look back at the origins of the show and share some of our favorite moments along the way, including: Sebastian's many nicknames, Grigus' many stock picks, Tosaw's favorite strategies, favorite guest, favorite uncomfortable moments, and much more.
  • We're also cooking up a new segment: live listener questions.

Trading Block: Potential budget compromise sparks a strong rally. Apple at $505! Who's back in? CBOE missed a great opportunity to have a tradable Apple VIX on Friday. Hostess going bankrupt - is the Twinkie gone forever? Can they be saved by Bimbo Bakery?  Intel lower after the news of their CEO retiring. Tyson Foods blows past estimates.
 Xpress Block: Alex Jacobson get today's OX hot seat and discusses OX's idea hub and walk limit product. Don't forget this is a short week for trading.

Around the Block: Beware of decay, and watch for bargains, because of this shortened holiday week. Fiscal cliff looking less perilous. Is this the return of the upside vol?


Option Block 199: Apple Selloff and Yoga Pants

Option Block 199: Apple Selloff and Yoga PantsTrading Block: The mild selloff continues. What is happening with VIX and realized volatility post-election? VIX calls/verticals/ratios vs. SPY puts/verticals/ratios. Does VIX win?  A big Apple...
Posted November 16th, 2012

Option Block 199: Apple Selloff and Yoga Pants

Trading Block: The mild selloff continues. What is happening with VIX and realized volatility post-election? VIX calls/verticals/ratios vs. SPY puts/verticals/ratios. Does VIX win?  A big Apple selloff. Is Uncle Mike getting ready to get back in? Dell earnings after hours. Tons of volume coming in for NetApp Inc.

Odd Block: Interesting activity in GameStop Corp. (GME) and Lululemon Athletica, Inc. (LULU).

Xpress Block: Sean Fitzgerald discusses some recent client trades in Apple, the QQQ, a VIX put spread, a SPY call spread, Walmart, and Dell.

Around the Block: Keeping an eye on the metals, GLD and SLV. Best Buy and HP earnings next week.


Option Block 198: Sex Scandals and Star Wars

Option Block 198: Sex Scandals and Star WarsTrading Block: All three major indices unchanged at 0. Mild vol selloff, following a mild rally after post-election selloff. CIA head forced out following a fantastically crazy scandal. Odd Block: Unusual...
Posted November 13th, 2012

Option Block 198: Sex Scandals and Star Wars

Trading Block: All three major indices unchanged at 0. Mild vol selloff, following a mild rally after post-election selloff. CIA head forced out following a fantastically crazy scandal.

Odd Block: Unusual activity in Titanium Metals Corp. (TIE); bullish options are in play on drug maker Eli Lilly and Co. (LLY); unusual activity in Flagstar Bancorp, Inc. (FBC).

Xpress Block: John Grigus is on the OX hot seat today. What's he still doing in Groupon?

Strategy Block: Uncle Mike Tosaw discusses collars and understanding the Greeks.

Around the Block: Cisco earnings tomorrow after the close. Cosi and Dell: 11/15, Hot Topic: 11/14. Disney's bullish future following the purchase of Lucasfilm. Looking ahead to Black Friday.


Option Block 197: Driving Towards the Fiscal Cliff

Option Block 197: Driving Towards the Fiscal CliffTrading Block: Markets down following presidential election. What can we attribute this to? There is strength in inelastic demand, inflation sensitive assets like GLD, corn, soybeans and wheat. ...
Posted November 9th, 2012

Option Block 197: Driving Towards the Fiscal Cliff

Trading Block: Markets down following presidential election. What can we attribute this to? There is strength in inelastic demand, inflation sensitive assets like GLD, corn, soybeans and wheat. 

Interview Block: Newcomer David Peltier, Portfolio Manager for TheStreet.com?s Stocks Under 10, gets his own segment to let our listeners get to know him and Stocks Under 10 a little better. 

Odd Block: Harmony Gold (HMY): a customer sold about 6,500 Jan 13 10 calls at $0.20; Exco Resources Inc. (XCO): a customer bought Dec 7 and Dec 8 calls, in a "call stupid,? and; Gerdau SA (GGB): a customer bought a chunk of Jun 2013 - 5,100 9 and 2,000 8 puts.

Around the Block: No really big economic events are in our near horizon with earnings season and the elections near an end. How will things play out in the market with the "fiscal cliff" looming ahead?


Option Block 196: Election Edition

Option Block 196: Election EditionTrading Block: The market took off once early polling results came in, a broad-based rally across most of the market. Vol came in after being out most of the morning.Odd Block: 30,000 contracts trade on the VIX Nov16...
Posted November 8th, 2012

Option Block 196: Election Edition

Trading Block: The market took off once early polling results came in, a broad-based rally across most of the market. Vol came in after being out most of the morning.

Odd Block: 30,000 contracts trade on the VIX Nov16 put.

Xpress Block: John Grigus gets the OX hot seat today to discuss VIX, recent highs in volume and the ex dividend date for Apple.

Mail Bag: Via email from Sigmund Fraud:
I have a 401k that's invested in the S&P. What's the best way to hedge it [outside of the 401k] from downside risk? Would beta-weighting with SDS be a good hedge or is there a better way? Also, I've heard the terms "hitting offers, lifting bids" (I hope I got that right), what does that mean?

Strategy Block: Andrew discusses back spreading the VIX and how it is the cleanest way to play a change in implied volatility in the indexes.

Around the Block: All eyes will be focused on the U.S. Presidential election.


Option Block 195: Post-Hurricane Sandy Edition

Option Block 195: Post-Hurricane Sandy Edition Trading Block: The market reopens Wednesday after closing for two days due to Hurricane Sandy. Apple opens nearly unched, some long premium holders ended up alright. Vol has been coming in hard. How was...
Posted November 2nd, 2012

Option Block 195: Post-Hurricane Sandy Edition

Trading Block: The market reopens Wednesday after closing for two days due to Hurricane Sandy. Apple opens nearly unched, some long premium holders ended up alright. Vol has been coming in hard. How was the NYSE not prepared for a disaster such as a hurricane?

Odd Block: Straddle sold on Take 2 Interactive Software (TTWO).

Xpress Block: Dave Vitamonis gets the OX hot seat for today's show and discusses using an iron condor, instead of an iron butterfly.

Strategy Block: Mike Tosaw discusses risk management and when you should use a point A to point B type of risk management.

Around the Block: Watching the vol crush and Non-farms tomorrow. LinkedIn and Amazon.


Option Block 194: The Great AAPL Death Knell

Option Block 194: The Great AAPL Death KnellTrading Block: The great Apple death knell? Tosaw is out! A momentous decision. Amazon and Apple earnings after the close. Facebook earnings earlier this week.  Odd Block: Volatility plays heat up on...
Posted October 26th, 2012

Option Block 194: The Great AAPL Death Knell

Trading Block: The great Apple death knell? Tosaw is out! A momentous decision. Amazon and Apple earnings after the close. Facebook earnings earlier this week. 

Odd Block: Volatility plays heat up on KLA-Tencor (KLAC).
Xpress Block: Sean Fitzgerald gets the OX hot seat and discusses today's action on the desk. Russell credit spreads, GLD, and Zynga. 

Strategy Block: Mike Tosaw discusses his new stock, Chevron, and the interesting trade he made.

Around the Block: Keeping an eye on Apple and Amazon after hours. GDP, Non-Farms and more earnings next week. Tosaw will now sleep for a few weeks.


Option Block 193: Post-Earnings Selloff & Turnaround

Option Block 193: Post-Earnings Selloff & Turnaround Trading Block: Post-earnings selloff continues, but then we saw a dramatic turnaround late in the day. Iron flies on Microsoft post-earnings. Odd Block: Large call spread purchased on MGIC...
Posted October 23rd, 2012

Option Block 193: Post-Earnings Selloff & Turnaround

Trading Block: Post-earnings selloff continues, but then we saw a dramatic turnaround late in the day. Iron flies on Microsoft post-earnings.

Odd Block: Large call spread purchased on MGIC Investment Corporation (MTG); calls bought on Eli Lilly (LLY).

Xpress Block: John Grigus gets the OX hot seat today and discusses Bank of America, new tech products, including the iPad mini, and the Samsung ChromeBook.

Around the Block: Looking forward to earnings: Facebook 10/23, Zynga 10/24, Amazon 10/25, Apple 10/25, Netflix 10/23.


Option Block 192: Earnings Palooza

Option Block 192: Earnings Palooza Trading Block:  GOOG earnings announced early, although no one is sure why.  Today is an earnings-palooza: AMD, LUV, MSFT, NOK, VZ all after the bell. Odd Block: Is McGraw-Hill Topped Out? (MHP); puts...
Posted October 19th, 2012

Option Block 192: Earnings Palooza

Trading Block:  GOOG earnings announced early, although no one is sure why.  Today is an earnings-palooza: AMD, LUV, MSFT, NOK, VZ all after the bell.

Odd Block: Is McGraw-Hill Topped Out? (MHP); puts rolled on Sprint Nextel (S); volatility purchased on Hertz Global (HTZ).

The Mail Block: You ask. We answer.

  • EMAIL FROM TED, WASHINGTON: ?I know you guys have touched on this a long time ago, but I can?t find the episode and I?m not sure if there was ever an answer. My question is - how do you execute a ratio spread using Xtend? I?ve been trying all morning to execute a simple 1x2 put spread (buy 1, sell 2) all morning, yet when i select put spread from the Xtend dropdown menu in the order ticket, it defaults to having the legs be the same size. Whenever I try to change the size of one leg, it automatically adjusts the other. None of the other selections in the dropdown seem to work and I don?t see a selection for ?ratio spread.? Is there a way to do this? If not, can ox please add a dropdown for ratio spreads in Xtend. Thanks. Been a fan of the show since it launched and an ox customer for about a year, mostly because of this show.
  • RELATED EMAIL QUESTION FROM FINN: I know Mark L. loves iron butterflies. How do I trade those using Xtend? I don?t see an option for those in the trade ticket?
  • EMAIL FROM Todd in MN: Hi guys, love you, love the show... A question for the listener mail segment-- I'd be honored if you read it. What's the most effective way for a retail investor to hedge an x% decline in the overall market? Some guesses:
  1. - buy a back month vertical put spread or single long put on $SPY and let simmer?
  2. - buy a vertical call spread on $VIX and manage it closely?
  3. - C) none of the above?

Xpress Block: Trading picks up in VIX.  Sebastian pontificates.

Around the Block: Earnings. Earnings. Earnings. FB, NFLX, ZNGA, and AMZN coming up.

 

Option Block 192: Earnings Palooza

Trading Block:  GOOG earnings announced early, although no one is sure why.  Today is an earnings-palooza: AMD, LUV, MSFT, NOK, VZ all after the bell.

Odd Block: Is McGraw-Hill Topped Out? (MHP); puts rolled on Sprint Nextel (S); volatility purchased on Hertz Global (HTZ).

The Mail Block: You ask. We answer.

  • EMAIL FROM TED, WASHINGTON: ?I know you guys have touched on this a long time ago, but I can?t find the episode and I?m not sure if there was ever an answer. My question is - how do you execute a ratio spread using Xtend? I?ve been trying all morning to execute a simple 1x2 put spread (buy 1, sell 2) all morning, yet when i select put spread from the Xtend dropdown menu in the order ticket, it defaults to having the legs be the same size. Whenever I try to change the size of one leg, it automatically adjusts the other. None of the other selections in the dropdown seem to work and I don?t see a selection for ?ratio spread.? Is there a way to do this? If not, can ox please add a dropdown for ratio spreads in Xtend. Thanks. Been a fan of the show since it launched and an ox customer for about a year, mostly because of this show.
  • RELATED EMAIL QUESTION FROM FINN: I know Mark L. loves iron butterflies. How do I trade those using Xtend? I don?t see an option for those in the trade ticket?
  • EMAIL FROM Todd in MN: Hi guys, love you, love the show... A question for the listener mail segment-- I'd be honored if you read it. What's the most effective way for a retail investor to hedge an x% decline in the overall market? Some guesses:
  1. - buy a back month vertical put spread or single long put on $SPY and let simmer?
  2. - buy a vertical call spread on $VIX and manage it closely?
  3. - C) none of the above?

Xpress Block: Trading picks up in VIX.  Sebastian pontificates.

Around the Block: Earnings. Earnings. Earnings. FB, NFLX, ZNGA, and AMZN coming up.

 


Option Block 191: Earnings Season Moving Into Full Swing

TRADING BLOCK Vol Rundown - Vix came in today, as expected given Vol inflation on Friday and today's rally. Nobel Prize for economics announced today - Alvin Roth won. Citi and Chipotle reporting earnings today. ODD BLOCK Calls Active as Two...
Posted October 16th, 2012

TRADING BLOCK

Vol Rundown - Vix came in today, as expected given Vol inflation on Friday and today's rally. Nobel Prize for economics announced today - Alvin Roth won. Citi and Chipotle reporting earnings today.

ODD BLOCK

Calls Active as Two Harbors Crashes (TWO)

Protection Purchased on the Healthcare Select SPDR (XLV)

Calendar Spread Trades on Wells Fargo (WFC)

INTERVIEW BLOCK

Today's guest: Kevin Davitt - KYO Futures Broker. Equities, ratio spreads, and upcoming webinars. 

AROUND THE BLOCK

Earnings Palooza - Southwest, Nokia, Microsoft, Verizon, AMD, Google -  10/18. Election Vol looming on the horizon.


Option Block 190: Getting Out of AAPL

Option Block 190: Getting Out of AAPLTrading Block: Another 0.0% move for the S&P today. Zynga was crushed again this week, and closing today at $2.43 as it takes a massive write-down on the OMG Pop acquisition. It also manages to bring Facebook...
Posted October 12th, 2012

Option Block 190: Getting Out of AAPL

Trading Block: Another 0.0% move for the S&P today. Zynga was crushed again this week, and closing today at $2.43 as it takes a massive write-down on the OMG Pop acquisition. It also manages to bring Facebook down with it. Corn up 5% after U.S. harvest forecast slashed. Apple closing down about 13 handles or 2% to $628.10.

Odd Block: Upside calls active on Auxilium Pharma (AUXL); will Advanced Micro Devices Earnings surprise next week (AMD)?

Xpress Block: Sean Fitzgerald is back in the OX hot seat today, and discusses recent and interesting trades. Sprint, Wells Fargo and a bunch of earnings plays.

Around the Block: Earnings-Palooza: Southwest Airlines, Nokia, Microsoft, Verizon, AMD, Google, Bank of America, and Citi.


Option Block 189: Iron Condors and Big Trends

Option Block 189: Iron Condors and Big Trends Trading Block: Apple down about 2.5%. When might we see the minis? Groupon finally goes to the plus side. Is it time to abandon ship? Non-farms better than expected. Odd Block: Huge three-way put spread...
Posted October 9th, 2012

Option Block 189: Iron Condors and Big Trends

Trading Block: Apple down about 2.5%. When might we see the minis? Groupon finally goes to the plus side. Is it time to abandon ship? Non-farms better than expected.

Odd Block: Huge three-way put spread trades on Consol Energy (CNX); options action surges as Vringo pops (VRNG).

Xpress Block: John Grigus takes the hot seat and discusses the many spin-offs of Sears holdings.

Interview Block: Featuring Big Trends? Price Headley

  • Price gives an overview of what Big Trends does
  • What he is currently seeing in the market
  • Why is he such a fan of iron condors?
  • What levels would be too low for him?
  • He also gives a quick preview of the webinar tonight for KYO.

 Around the Block: Earnings season again! Alcoa kicks it off tomorrow. Vice Presidential debate upcoming.


Option Block 188: Diversify. Diversify. Diversify

Option Block 188: Diversify. Diversify. Diversify   Trading Block: The market's reaction to Wednesday night's Presidential debate. Review from the Morning Star conference. (Spoiler: Options exposure and education is still significantly lacking.)...
Posted October 5th, 2012

Option Block 188: Diversify. Diversify. Diversify

 

Trading Block: The market's reaction to Wednesday night's Presidential debate. Review from the Morning Star conference. (Spoiler: Options exposure and education is still significantly lacking.) HPQ, SLV & GLD, ACT.

Odd Block: Upside purchased in Sachs (SKS); calls active as Dell pushes to new lows (DELL)

Xpress Block: New-comer Dave Vitamonis gets the OX hot seat today and discusses interesting trades and size orders that came across the desk. The metals market is heating up.

Stragegy Block: Uncle Mike Tosaw discusses diversification and mutual funds.

 

Around the Block: Non-Farms tomorrow, a big event. Apple earnings 10/25.


Option Block 187: It?s That Time of the Month

Option Block 187:  It?s That Time of the Month Trading Block: VIX cash getting some weekend love back. Monthly volume numbers are in, and according to ISE, dividend trades made up 8.8% of industry volume in September 2012. Apple closing...
Posted October 2nd, 2012

Option Block 187:  It?s That Time of the Month

Trading Block: VIX cash getting some weekend love back. Monthly volume numbers are in, and according to ISE, dividend trades made up 8.8% of industry volume in September 2012. Apple closing down 1%. Will Uncle Mike ever get out? Groupon = garbage? Premium selling candidate? Risk reversals? Is Activision lining up for more bullish risk reversals? Ford is hovering at the 10-handle. How do you position RIMM from here?

Odd Block: Is FLIR Systems (FLIR) ready to pop 11%; puts sold on Celldex Therapeutics (CLDX), and; short-term protection purchased on Wells Fargo (WFC).

Xpress Block: John Girgus takes the reins in the Xpress Block and talks about what came across the OX desk today. Weekly options coming out soon. Approval passed for mini weekly options.

Listener Mail: The inmates are running the asylum.

  • Email from Ejay Singh, Mumbai, India ?I appreciated your discussion of early dividend exercise on the last show. You mentioned the dividend and assignment risk on Spy, but does this also apply to SPX? Thanks very much for a fantastic options program. You guys really are unique in the world of options, and if Mark ?Voice of Options? Longo ever wants to do a radio show or an options presentation here in India, I'd be happy to help arrange it. You have a large audience around here.?
  • Comment from Thompson on Dividend Trade Bungle.  ?This guy was a serious idiot. How could you do a trade like this without even knowing how to properly execute the dividend trade? How can the exchanges continue to allow this behavior? Aren't errors like this just feeding into the belief that options are a risky, and highly-rigged, game? It's absurd!?

Around the Block: Non-farms, probably the largest event coming up on the horizon. Marriott earnings on 10/3, Family Dollar 10/2, Monsanto 10/3. Keeping on eye on Europe.


Option Block 186: RIMM Time Spreads and SPY Dividends

Option Block 186: RIMM Time Spreads and SPY Dividends Trading Block: A broad rally, thanks to Spain's spending cuts. RIMM earnings after the bell. It closed today at $7.14. Mark ponders the weekly/Oct 6-7-8 iron fly. Jobless claims hit a two-month...
Posted September 28th, 2012

Option Block 186: RIMM Time Spreads and SPY Dividends


Trading Block: A broad rally, thanks to Spain's spending cuts. RIMM earnings after the bell. It closed today at $7.14. Mark ponders the weekly/Oct 6-7-8 iron fly. Jobless claims hit a two-month low.

Odd Block: Implied volatility mover in Regions Financial (RF); volume signals in Deckers Outdoors (DECK), and; Coca Cola Enterprises (CCE). Love piling in for some size in Yahoo!, Inc. (YHOO), and a lot of call love in Medtronic, Inc. (MDT).

Strategy Block: Given last week's debacle with the SPY dividend play, when do you exercise a call to capture a dividend?

Around the Block: RIMM earnings summary. It was almost up to $8.50 in the after-hours. Looking ahead to the weekend. Apple. Non-farms payroll numbers 10/5. The market's reaction to the upcoming presidential debates and election.


Option Block 185: Dividend Trade Blowup

Option Block 185: Dividend Trade Blowup   Trading Block: VIX getting some of the weekend back courtesy of some selloff love. It's been a while since we've have a 1% down day. A big whoops with dividend trades for Merrill Lynch occurred Friday....
Posted September 25th, 2012

Option Block 185: Dividend Trade Blowup

 

Trading Block: VIX getting some of the weekend back courtesy of some selloff love. It's been a while since we've have a 1% down day. A big whoops with dividend trades for Merrill Lynch occurred Friday. Facebook taking it on the chin - down about 9%. Apple closing today down about 1.5%.<