The Option Block

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 ‏@jking321: 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

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

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

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

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

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

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

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"

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

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.