Option Block 889: How to Lose $15M Selling Puts

• HOST:  MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
• CO-HOST: ANDREW GIOVINAZZI, THE OPTION PIT
• CO-HOST: MIKE TOSAW, ST. CHARLES WEALTH MANAGEMENT

TRADING BLOCK SEGMENT

• MORE TERRIBLE JOBS NUMBERS
• HIGHEST VOLUME MONTH EVER FOR U.S. EQUITY OPTIONS INDUSTRY
• VIX: 52.5 - DOWN 7.5 FROM LAST SHOW
• VVIX: 151 - DOWN 9 FROM LAST SHOW
• VXX: 47.8 - DOWN 2.2 FROM LAST SHOW

ODD BLOCK

• REVIEW APD LINE IN THE SAND PUTS

MAIL BLOCK

• QUESTION FROM BRIAN COLLAMER:  HI GENTS! IN MY ROTH I'M LONG A COUPLE OF 300/305 CALL SPREADS IN SPY. ONE IS THE 19JUN20 {EXDIV DATE, $1.40 DIV} EXPIRATION AND THE OTHER IS THE 18SEP20 {EXDIV DATE}. BOUGHT THESE DURING THOSE 10% DOWN DAYS, COULDN'T RESIST… ANYHOW, AS I'M SHORT SOME CALLS, WILL I BE ON THE HOOK FOR THE DIVIDENDS SHOULD THESE 300 CALLS GO ITM? IF THE SHORT CALLS DO GO ATM/ITM, I NEED TO LOOK AT THE BID FOR THE 300 PUTS AND COMPARE TO DIVIDEND RIGHT? DO I NEED TO WORRY ABOUT THIS ON THE EX-DIV DATE OR THE PAYOUT DATE? THANK YOU FOR YOUR FANTASTIC PODCASTS!!! BRIAN PS - I STILL MISS THE O.O SHOW ON TOS......
• QUESTION FROM DAMIAN: HEY THERE, LOVE THE SHOW! I HAVE A QUESTION ABOUT THE LONG PUTS SPREAD.  IS IT POSSIBLE TO MODIFY IT BY ADDING A DIAGONAL COMPONENT? SPECIFICALLY, BUYING ONE ITM CALL WITH LONG EXPIRATION AND BUYING ONE ITM PUT AT SHORT TERM EXPIRATION?  MY EXPECTATION FOR THE UNDERLYING IS LONG TERM BULLISH AND SHORT TERM OR PERIODIC WEAKNESS. I AM NEW TO OPTIONS AND THOUGHT ABOUT THIS STRATEGY AS A WAY TO HEDGE A LEAPS POSITION AND POSSIBLY PROFIT DURING SHORT TERM DOWN SWINGS. WOULD THIS EVEN WORK, TOO EXPENSIVE, OR IS THERE A BETTER WAY (PROBABLY) TO EXECUTE THIS STRATEGY? THANKS SO MUCH!
• QUESTION FROM NIKOLAI: DOES UNCLE MIKE STILL LIKE $XLE TO PLAY ENERGY/OIL OR DOES HE PREFER $USO?

AROUND THE BLOCK

WHAT’S ON OUR RADAR FOR THE REST OF THE WEEK?