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?

Option Block 888: Why The Heck Are We Rallying?

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

TRADING BLOCK SEGMENT

• WE’RE RALLYING YET AGAIN...FOR SOME REASON. 
• TERRIBLE JOBS NUMBERS...GROWING DEATH TOLLS….INCREASING THE CLOSURE AND DISTANCING UNTIL 4/30, TALKS OF SHUTTING DOWN THE MARKETS - AND WE’RE RALLYING!!
• GS TRADING NEAR $4. PROBABLY $4 TOO HIGH
• VIX: 60 - UP 2 FROM LAST SHOW
• VVIX: 160 - DOWN 7 FROM LAST SHOW
• VXX: 50 - UP 3 FROM LAST SHOW

ODD BLOCK

• PM CALL CRUSHING
• LYG LINE IN THE SAND PUTS

STRATEGY BLOCK

• HOW TO EXPERTLY TAKE TAX LOSSES IN THIS MARKET

MAIL BLOCK

• QUESTION FROM STOCKPICKER320: I HAVE A QUESTION. WITH THIS CRAZY CORONAVIRUS IMPACTED STOCK MARKET WHAT WOULD HAPPEN IF A PERSON OWNED A CALL OR PUT OPTION AND THE STOCK MARKET CLOSED FOR AN EXTENDED PERIOD OF TIME AND THE OPTIONS EXPIRATION DATE WAS DURING THIS TIME PERIOD? WOULD THE CALL OR PUT OPTION BECOME WORTHLESS IF THE STOCK MARKET OPENED AFTER THE OPTION EXPIRATION DATE HAD PASSED? AFTER 911 I THINK THAT THE STOCK MARKET WAS CLOSED FOR 6 DAYS.

AROUND THE BLOCK

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

Option Block 887: The Dead Cat Bounce That Wasn't

• HOST:  MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
• CO-HOST: MARK SEBASTIAN, THE OPTION PIT
• CO-HOST: MIKE TOSAW, ST. CHARLES WEALTH MANAGEMENT
• CO-HOST: DAVID RUSSELL, TRADESTATION

TRADING BLOCK SEGMENT

• WE FINALLY DID IT! SORT OF. FOR THE FIRST TIME SINCE FEBRUARY 12, THE S&P 500 CLOSED HIGHER TWO SESSIONS IN A ROW.
• INITIAL JOBLESS CLAIMS SURGED TO RECORD 3.3M LAST WEEK AS CORONAVIRUS TAKES HEAVY TOLL ON ECONOMY
• VIX: 58 - DOWN 10 FROM LAST SHOW
• VVIX: 167 - DOWN 15 FROM LAST SHOW
• VXX: 47 - DOWN 9 FROM LAST SHOW

ODD BLOCK

• LARGE CALL CREDIT SPREAD IN EEM
• LARGE BULLISH CALL DEBIT SPREAD IN MTCH
• REVIEW: MASSIVE, AND TIGHT, AAL COLLAR

MAIL BLOCK

• QUESTION FROM NAK: EVERYTHING IS ELECTRONIC AT THE MOMENT. WHAT THE HECK DO WE DO IF EVERYTHING HAS TO SHUT DOWN?
• QUESTION FROM ANTHONY: ARE YOU SURPRISED AT HOW WELL THE OPTIONS MARKETS ARE HOLDING UP DURING THIS CRISIS? WHAT ABOUT THE BROKERS? SEEMS LIKE OUTSIDE OF ROBIN HOOD WE HAVEN'T REALLY SEEN ANY MAJOR OUTAGES. 
• QUESTION FROM NLE334: WHERE DO YOU THINK VIX WILL TOP OUT HERE?

AROUND THE BLOCK

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

Option Block 886: Market Intelligence, ITM Covered Calls and More

• HOST:  MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
• CO-HOST: MARK SEBASTIAN, THE OPTION PIT
• CO-HOST: MIKE TOSAW, ST. CHARLES WEALTH MANAGEMENT
• CO-HOST: DAVID RUSSELL, TRADESTATION

TRADING BLOCK SEGMENT

• WORST WEEK SINCE 2008 FOR ALL MAJOR INDICES
• LIMIT DOWN ON SUNDAY NIGHT
• FED ANNOUNCING “UNLIMITED” ASSET PURCHASES
• NOW WE HAVE A FULLY ELECTRONIC MARKET
• ST. LOUIS FED TALKING ABOUT 30% UNEMPLOYMENT
• VIX: 68.30 - DOWN 8.3 FROM LAST SHOW
• VVIX: 182 - UP 5 FROM LAST SHOW
• VXX: 56 - DOWN 14 FROM LAST SHOW

ODD BLOCK

• CS CALL PALOOZA

STRATEGY BLOCK

• ONE POTENTIAL STRATEGY IN THIS ENVIRONMENT IS IN-THE-MONEY COVERED CALLS ON THE BIG INDEX ETFS.

MAIL BLOCK

• TRADESTATION CLIENT QUESTION OF THE WEEK? SOMETIMES I GET CONFUSED ABOUT STRATEGIES. IS THERE AN EASY WAY TO PLAN TRADES?

AROUND THE BLOCK

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

Option Block 885: Stay Small. Stay nimble. Stay Alive. 

• 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

• SELL EVERYTHING! - CAN WE FINALLY PUT TO REST THE NOTION THAT GOLD OR FIXED INCOME ARE GREAT “HEDGES” FOR AN EQUITY PORTFOLIO? WHEN IT ALL HITS THE FAN CORRELATION GOES TO ONE. 
• NAMES LIKE FORD APPROACHING CRISIS PRICE LEVELS.
• BOEING THREATENING BANKRUPTCY
• COMMODITIES GETTING ANNIHILATED
• ANY ACTION ON THE SILVER COLLAR?
• THE DAY WE ALL DREADED AS MARKET MAKERS IS FINALLY HERE!:  AMEX, PCOAST AND PHLX ARE ALL CLOSED RENDERING THE OPTIONS MARKET 100% ELECTRONIC. STILL NO WORD ON “BOX TRADING FLOOR.”
• VIX: 76.6 - UNCHD FROM LAST SHOW
• VVIX: 177 - DOWN 15 FROM LAST SHOW
• VXX: 70 - UP 24 FROM LAST SHOW

MAIL BLOCK

• COMMENT FROM CENACLE CAPITAL: PSA FOR OPTION TRADERS. EQUITY OPTIONS STOP TRADING ON FRIDAY, BUT TECHNICALLY DON'T EXPIRE UNTIL SATURDAY. MEANIMG IF MKT CLOSES EARLY THIS WEEK, AND INCREDIBLY "LIMIT UP" NEWS OCCURS YOU CAN STILL GET ASSIGNED ON A "WORTHLESS" OUT OF THE MONEY CALL AND COME IN SHORT STOCK. IF YOU TRADE CALL OR PUT OPTIONS, CONSIDER "BUY TO CLOSE" ON YOUR SHORTS, IF IT'S NOT TOO EXPENSIVE.

• QUESTION FROM DRNIC: WHAT ARE YOUR THOUGHTS ON THE SCHWAB/TD MERGER’S IMPACT ON OPTIONS MARKET? WHAT ABOUT FREE COMMISSIONS? THX FOR ALL THAT YOU DO. YOU’RE THE GOOD GUYS. 

AROUND THE BLOCK

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

Option Block 884: 1987 Redux...All Over Again

• HOST:  MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
• CO-HOST: MARK SEBASTIAN, THE OPTION PIT
• CO-HOST: MIKE TOSAW, ST. CHARLES WEALTH MANAGEMENT
• GUEST: HENRY SCHWARTZ, TRADE ALERT

TRADING BLOCK SEGMENT

• HERE WE GO AGAIN! - MARKETS HALT ON THE OPEN AND ARE DRIFTING LOWER. 
• THE FED PUT IS MEANINGLESS: THE MARKET IS COMPLETELY IGNORING YET ANOTHER EMERGENCY FED ACTION. FED CUTS RATES TO ZERO ON THE HEELS OF MASSIVE QUANTITATIVE EASING AND AN EARLIER EMERGENCY RATE CUT. ALL OF IT HAD LITTLE EFFECT.  
• WELCOME TO THE FUTURE!: WE’RE ALL LIVING IN AN ESSENTIALLY FULLY-ELECTRONIC OPTIONS MARKET!
• VIX: 76.6 - UP 11.6 FROM LAST SHOW
• VVIX: 192 - UP 38 FROM LAST SHOW
• VXX: 46

MAIL BLOCK

• QUESTION FROM MIKE WIENICK: IF THE MARKETS ARE SHUT DOWN DUE TO THE EXTRAORDINARY CIRCUMSTANCES AND I HAVE EXPIRING IN THE MONEY PUTS THAT I  BOUGHT - WHAT HAPPENS? ARE THE EXPIRING OPTIONS AUTOMATICALLY EXERCISED OR ARE DO JUST EXPIRE WORTHLESS BECAUSE THE MARKET WAS SHUTDOWN?
• QUESTION FROM TONY WEBER: ANY ADVICE FOR HANDLING LARGE BID/ASK SPREADS? IS IT BETTER TO SELL OPTIONS WITH THE HOPE OF THE OPTIONS EXPIRING WORTHLESS? ARE RESTING ORDERS A GOOD IDEA?
• QUESTION FROM NIKTIX: WHY BOTHER WITH OPTIONS WHEN I CAN GET SHORT WITH SDS?

AROUND THE BLOCK

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

Option Block 883: 1987 Redux

• 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

• THE BULL IS OFFICIALLY DEAD - IT WAS A GOOD RUN. OVER 11 YEARS. 
• DOW, S&P AND NASDAQ ALL NOW OFFICIALLY IN BEAR MARKET TERRITORY. 
• TRIGGERED CIRCUIT BREAKERS TWICE IN ONE WEEK
• GOLDMAN STUDIED BEAR MARKETS BACK TO 1835
• VIX: 65 - UP 12 FROM LAST SHOW
• VVIX: 154 - UP 11 FROM LAST SHOW
• VXX: 46 -  UP NEARLY 11 FROM LAST SHOW
• TALKING $MSFT, $TSLA, $AAPL, $BA, $BAC, $AMD 

ODD BLOCK

• AGGRESSIVE LINE IN THE SAND IN CIM

MAIL BLOCK

• QUESTION FROM ANGEL: DOES UNCLE MIKE STILL HAVE SHORT PUTS ON RIGHT NOW OR IS HE CANCELING ALL BULLISH EQUITY TRADES UNTIL ALL OF THIS CALMS DOWN? ALSO - FOR HIS BROAD EQUITY PORTFOLIOS DOES HE ALWAYS HAVE A HEDGE COMPONENT OR DOES HE ONLY PUT THEM ON SELECTIVELY DEPENDING ON MARKET CONDITIONS?

AROUND THE BLOCK

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

Option Block 882: The Depths of Market Madness

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

TRADING BLOCK SEGMENT

• THE WORLD HAS LOST ITS COLLECTIVE MIND: SAUDIS AND RUSSIA DECIDE TO RACE EACH OTHER TO THE BOTTOM IN PERHAPS THE MOST BEWILDERING PRICE WAR IN CRUDE HISTORY. NORTH KOREA DECIDES TO LAUNCH MORE MISSILES BECAUSE WHY NOT AND CIRCUIT BREAKERS TRIGGERED AT CME AND NYSE.
• BLOOMBERG WRITING ABOUT 100 LOT OF VIX CALLS
• VIX: 53- UP 16 FROM LAST SHOW
• VVIX: 143: UP 28 FROM LAST SHOW
• VXX: 35.35:  UP 10 FROM LAST SHOW
• ROBINHOOD APP HAD ANOTHER OUTAGE TODAY.

ODD BLOCK

• SIZE MAT LITS PUTS
• SIZE KTB LITS PUTS
• REVIEW LBTYK CALL LOVE

MAIL BLOCK

• QUESTION FROM TONY WEBER: THE GREASYIST OF MEATBALLS, WHAT IS YOUR FAVORITE VIX OPTIONS STRATEGY FOR +50 VIX? DO YOU SELL ITM SHORT TERM (MAR 17) CALLS AGAINST LONG TERM CALLS? IS THIS "VIX MADE STUPID?"
• QUESTION FROM ILIAN: THIS IS NUTS! I’M THINKING ABOUT STARTING TO NIBBLE AT THESE LEVELS. WHAT ARE YOUR PREFERRED WAYS TO USE OPTIONS NOW TO START NIBBLING WITHOUT LOSING MY SHIRT IF THE MARKET CONTINUES CRAPPING OUT? I DON’T WANT TO JUST LOAD UP ON OVERPRICED PUTS. 

AROUND THE BLOCK

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

Option Block 881: The Gamma Gods 

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

TRADING BLOCK SEGMENT

• SURPRISE FED RATE CUT AND IMPACT ON VOLATILITY.
• VIX: 36.97- UP 3.37 FROM LAST SHOW 
• VVIX: 115.42 - DOWN 1.58 FROM LAST SHOW
• VXX: 25.46 - UP 3.31 FROM LAST SHOW
• OCC VOLUME NUMBERS FOR FEBRUARY

ODD BLOCK

• UNUSUAL OPTIONS ACTIVITY IN RWT, APD, SNSS

MAIL BLOCK

• QUESTION FROM DOM: WHAT IS A GOOD USE CASE FOR LONG STRADDLES? I KNOW THAT THEY ERODE QUICKLY AND ARE EXPENSIVE. WHAT’S THE UPSIDE?

AROUND THE BLOCK

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

Option Block 880: The Dead Scaredy Low?

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

TRADING BLOCK SEGMENT

• HOW LONG CAN 35 VOL LAST?
• VIX: 33.60- UP 2.4 FROM LAST SHOW
• VVIX: 117-UP 3 FROM LAST SHOW
• VXX: 22.15 - UP APPROX 1 FROM LAST SHOW
• ROBINHOOD APP DOWN ALL DAY

ODD BLOCK

• CALL SELLERS IN VALE
• HUGE PUT CLOSE ROLL IN TEVA

STRATEGY BLOCK

KEEPING MONEY IN CASH DURING THIS TIME PERIOD

MAIL BLOCK

• QUESTION FROM MIKE TOSAW: LOOK AT THE PRICING RELATIONSHIP BETWEEN SPX AND SPY. THE PRICING IS OFF. I'M STILL IN CASH, SO IT ISN'T A BIG DEAL TO ME BUT DO ANY OF YOU GUYS HAVE ANY INSIGHT ON THAT?

• QUESTION FROM OLADONEGRO: CAN U PLEASE TELL ME WHY TSLA PUT OPTIONS $920 EXPIRATION FEB 21, DIDN'T INCREASE THE VALUE AS THE STOCK PLUNGES TODAY AT 11:20 AM ? ACTUALLY THEY DROP A LITTLE MORE AS HE STOCK WAS FALLING , ONLY REALLY START TO INCREASE IN PRICE AFTER THE STOCK BREAK VWAP

AROUND THE BLOCK

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