The Option Block

TRADING BLOCK

Most active equity options: DIS, BAC, AAPL, TSLA, GE, FB, COTY, INTC, TWTR, AMD

Earnings Highlights:

Monday - Spotify (before bell), Alphabet (after bell)

Tuesday - GE, McDonalds, Pfizer, Merck, GM, Apple

Wednesday - Qualcomm

Thursday - Activision Blizzard, Herbalife

Friday - Cboe

ODD BLOCK

Call love in Hartford Financial Services Group Inc (HIG)

Line-in-the-sand puts Nordstrom, Inc (JWN)

Put love in Qurate Retail Inc (QRTEA)

STRATEGY BLOCK

This week we discuss some thoughts on calculating the expected move of a stock going into earnings

MAIL BLOCK

#Options #QOTW - #EarningsSeason continues to rock and roll. Many big names are on the docket this week. Which of these big names are you most excited to trade in your #Options portfolio this week?

• - $GE
• - $AAPL
• - $GOOGL
• - $MCD

Question from AGDC - How much did you guys love #Endgame?

AROUND THE BLOCK

This week in the market:

Apr 29 - Personal Income and Outlays

Apr 30 - Consumer Confidence

May 1 - Construction Spending, FPMC Meeting

May 2 - Jobless Claims, Factory Orders

May 3 - Unemployment, International Trade

TRADING BLOCK

Welcome to our 800th episode!

Most active indices: VIX - 348k, SPY - 1.14M, SPX - 572k

Most active equity options: FB, TSLA, MSFT, AAPL, DIS, AMD, TWTR, T, SNAP, BAC

Earnings Highlights:

Tuesday - Twitter, Snap

Wednesday - FB, Tesla, Microsoft, Boeing, Chipotle, PayPal, WWE

Thursday - Amazon, Starbucks, Intel, Grubhub, Mattel

800th EPISODE MAIL BLOCK PALOOZA

#Options #QOTW: $TSLA open interest continues to be dominated by far #OTM "Mystery Puts." The lion's share of the OI is at the 100 strike and below. There are many reasons for this. But it leads to a simple question - do you think $TSLA be below $100 by Jan expiration?

- Yes?

- No?

Question from Arbitar - What's the real reason that you think so many people are gobbling up crazy Tesla puts?

Comment from BTCVIX - Way back in 2012 and 2013 I started listening Longo and the rest of the crew -- I am pretty sure I am on record at some point asking the first Bitcoin question late 2013. Obviously I choose to stick with my taste in volatility world and choose my name as @BTCVIX lol

Question from Rayman5839 - Hi! Is the option premium counted toward exercising an option when in the money?. New to options, thanks...So it would only be profitable if the intrinsic value heavily outweighs extrinsic?

Question from Vaseris - Hello OB. Do you guys think there is one thing that all options traders do that is a mistake?

Question from Big T - I've been listening to this show since the early days and am incredibly thankful for the years of great content and education you have provided. I would like to show my support and gratitude in some way for all that you've done. Do you have a store or a Patreon or something that I can buy to say thanks for making such a great network?

TRADING BLOCK

VIX - 12.75, 0.5-points higher than last show.

SBUX made a new 52 week high. TSLA, 4 of 11 directors expected to leave, and company investigating what appears to be exploding Model S sedan in shanghai. PINS, IPO had offering price of $19 and closed at 24.40.

Most active indices - VIX: 139k, SPY: 771k, SPX: 449k

Most active equity options - GE, AAPL FB, TSLA, NFLX, TWTR, QCOM, AMD, F, MSFT

Earnings Highlights:

Tuesday - Twitter, Snap

Wednesday - FB, Tesla, Microsoft, Boeing, Chipotle, PayPal

Thursday - Amazon, Starbucks

ODD BLOCK

Call overwrite in YPF SA (YPF)

Crushing put below bid in Sea Ltd (SE)

Call overwrite in US Silica Holdings Inc (SLCA)

STRATEGY BLOCK

The fidelity discussion topic this week is the common misperceptions of calendar spreads.

AROUND THE BLOCK

This Week in the Market

Apr 22: Existing Home Sales

Apr 23: New Home Sales

Apr 25: Jobless Claims, Durable Goods

Apr 26: GDP, Consumer Sentiment

TRADING BLOCK

Fidelity Hot Seat - Konstantin Vrandopulo, Trading Strategy Desk, Fidelity Brokerage Services LLC

VIX - 12.25, 0.5-points lower than last show.

Most active indices - VIX: 162k, SPY: 1.13k, SPX: 558k

Most active equity options - AAPL, QCOM, BAC, NFLX, TSLA, AMD, PFE, FB, CGC, SQ

ODD BLOCK

Call love in Liberty Global PLC (LBTYA)

Call love in Las Vegas Sands Corp. (LVS)

Above offer call love in Honeywell International Inc. (HON)

MAIL BLOCK

Question from Giddy Franciscan - Sell in May and go away. What option strategy benefits from the profound market malaise that occurs over the summer?

AROUND THE BLOCK

This Week in the Market:

Apr 19 - Housing Starts

TRADING BLOCK

VIX : 12.70 - 0.6-points lower than last show.

Most active indices: VIX: 125k, SPY: 713k, SPX: 272k

Most active equity options: DIS, BAC, TSLA, AAPL, AMD, BABA, GE, NVDA, NFLX, WFC

Earnings Highlights:

Netflix (NFLX)

Walt Disney Company (DIS)

ODD BLOCK

Mystery put update in Tesla Inc (TSLA)

STRATEGY BLOCK

This week's topic discusses applying technical analysis to option trading.

MAIL BLOCK

Question from Douglas Tilley - Hello!--Regarding long stock substitution:

1. With call options, are deltas additive? ie. why are (2) 40-delta calls so much cheaper than (1) 80-delta call ? This seems like buying equivalent total delta for about half the cost.

2. For more accurate stock substitution, do you ever use the technique of buying an ATM call while selling an ATM put ? (vs. buying calls for a desired total delta).

What are the pros and cons (or nuances) of the 2 methods? I do notice that the 2nd method definitely requires more buying power, due to the short put. Thanks for all the education

AROUND THE BLOCK

This Week in the Market:

Apr 16 - Industrial Production

Apr 17 - International Trade, Beige Book

Apr 18 - Jobless Claims, Retail Sales, Business Inventories

Apr 19 - Housing Starts

TRADING BLOCK

LYFT Options Update: Rumors of Uber IPO hitting stock and driving LYFT volume - 61k on the tape so far today.

Most active indices - VIX: 384k, SPY: 845k, SPX: 323k

Most active equity options - AAPL, TSLA, BAC, EBAY, BA, AMD, X, FB, NVDA, BBBY

TSLA, AMZN, AMD and AAPL - no surprises, often on the list of most traded.

ODD BLOCK

Mystery put update in Tesla Inc (TSLA)

Size put love in eBay Inc (EBAY)

Call write JetBlue Airways Corporation (JBLU)

Call love in Weight Watchers International Inc. (WTW)

MAIL BLOCK

The Broker Madness Final is upon us! Vote today!

TD Ameritrade vs tastyworks.

Question from Zack Maenpaa - Hi, long time listener, first time questioner. If you've covered it already can you point me to where in case I have missed it. But what is going on at the $15 May (monthly) strike in COTY. Daily size opening transactions for two weeks now? Trying to figure out what they are trying to do here. Sorry if you receive this message more than once. I kept clicking submit on the website and nothing happens. Many thanks. There is the share purchase offer, but thats at $11.65, not way up at the 15 strike.

Question from a Fidelity Customer - I'm thinking about selling covered calls on a stock that my father left to me and I don't want to sell the shares, is this a good way to get some extra income?

AROUND THE BLOCK

Bank Earning coming up, JPM and WFC tomorrow and BAC next week. Macro headlines: China, Trade tariffs and Euro tariffs.

This week in the market:

Apr 12 - Import and Export Prices

Apr 13 - Consumer Sentiment

TRADING BLOCK

VIX - 13.3

Boeing cutting production, down around 4%.

TSLA - Jefferies cuts price target to $400 from $450, up 1%.

LYFT options update - $72.75, 15k today, ADV: 64k, Total 86k (54k Calls, 32k Puts)

Most active equity options - GE, AAPL, SNAP, BA, TSLA, AMD, BABA, FB, NVDA, CVE

ODD BLOCK

Call love in (BP)

Upside call roll in Lowes (LOW)

Upside call overwrite in AGNC Investment Corp (AGNC)

STRATEGY BLOCK

Uncle Mike Tosaw discusses out of the money gamma

MAIL BLOCK

Broker Madness!!! Final 4 voting continues until the end of today.

Question from Fidelity Customers - What should I know before trading options on the VIX/volatility products?

AROUND THE BLOCK

This week in the market

Apr 9: JOLTS

Apr 10: CPI, FOMC Minutes

Apr 11: Jobless Claims, PPI

Apr 12: Import and Export Prices

Apr 13: Consumer Sentiment

TRADING BLOCK

LYFT options trading today

Tesla off 64 handle on the day

ODD BLOCK

Call love in BorgWarner Inc. (BWA)

Call love in Dana Inc (DAN) - review from 11/8

Call love in Broadridge Financial Solutions, Inc. (BR)

MAIL BLOCK

Broker Madness Round 3 - The Final Four!

TD Ameritrade vs. Fidelity Investments

Interactive Brokers vs. tasty works

Question from Joe and Linda - My question is for Trey: Being that you are the "Chart" guy... I have had some success with The ADX, 50/200 SMA and Bollinger Bands. My question relates to time frame for those. Should I set the time for the option? Meaning, should I set those for 2-week view if I plan to sell a credit spread 2 weeks out, or keep it 6 months, 1 year, etc? I have been using the straddle for those time frames but was looking for another point of ref. Thanks.

AROUND THE BLOCK

TRADING BLOCK

Lyft options coming on Thursday. Cboe Global Markets Plans Listing of Options on Lyft, Inc. (LYFT)

Most active indices - VIX: 181k, SPY: 1.4M, SPX: 662k

Most active equity options - AAPL, BAC, AMD, MSFT, JD, COTY, FB, TSLA, F, BA

Earnings:

Tuesday - Gamestop

Thursday - Duluth Trading Company

ODD BLOCK

Options palooza in SPDR S&P Oil & Gas (XOP) - review from 2/11

Opening put love in California Resources Corp (CRC) - review from 11/26

Opening call love in Analog Devices, Inc. (ADI) - review from 11/26

STRATEGY BLOCK

Colin Songer discusses three different ways a trader might use delta.

AROUND THE BLOCK

Round 2 of Broker Madness continues!! Vote today!

TRADING BLOCK

Most active indices - VIX: 119k, SPY: 1M, SPX: 444k

Most active equity options - AAPL, FB, AMD, LULU, COTY TSLA BAC, NVDA, GE, AMZN

Earnings:

Monday - Winnebago Industries, Redhat

Tuesday - Cronos Group (marijuana stock)

Wednesday - Lennar, Lululemon

ODD BLOCK

Put love in (PAH) - review from 1/24

Opening Feb call love in (LEN) - review from 12/6

Size call love in Knight-Swift Transportation (KNX)

MAIL BLOCK

Broker Madness continues!!

Round 2: TD Ameritrade vs Schwab, Fidelity Investments vs TradeStation, Ally Invest vs Interactive Brokers, E*Trade vs tastyworks.

Cast your vote today!

AROUND THE BLOCK

This Week in the Market:

Mar 29 - Personal Income, New Home Sales, Consumer Sentiment