The Option Block

Trading Block: Trading VIX iron condors. Crude up 10% over the last couple of weeks. New Apple iPhone rumored to cost $1,000.

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

Strategy Block: Uncle Mike Tosaw discusses rolling protective puts.

Question Block: Options question of the week.

First #Harvey, then #Irma, now #Jose & more. We prep houses/cars/family for #disasters. How do you prep your portfolio?

• Get Long $VIX/$VXX/$UVXY
• Go To Cash/T-bills
• Buy Index/Stock Puts
• "Risk Assets" - Gold, etc.

Around the Block: Watching Tesla, just because you can't help it. Who is calling the volatility shots?

Trading Block: Irma hits Florida, Jose next? Kiplingers releases its list of top online brokers:

7. Ally

6. Vanguard

5. TD Ameritrade

4. E-Trade

3. Charles Schwab

1. (Tie) Fidelity & Merrill Edge

Odd Block: Massive call vertical in PowerShares DB US Dollar Index (UUP), size roll in Guggenheim CurrencyShares Euro Trust (FXE) and calls trade in Array Biopharma Inc. (ARRY).

Mail Block: Options questions of the week:

As Q4 looms, where are you placing your bullish #Volatility bets? Which has most #Upside by end of 2017? $VIX $AMZN #WTI $GVZ

• Gold Volatility
• Crude Oil Volatility
• S&P 500 Volatility - VIX
• Single Names - $AMZN, etc

First #Harvey, then #Irma, now #Jose & more. We prep houses/cars/family for #disasters. How do you prep your portfolio?

• Get Long $VIX/$VXX/$UVXY
• Go To Cash/T-bills
• Buy Index/Stock Puts
• "Risk Assets" - Gold, etc.

Listener Questions and Comments:

• Question from TT - What does it mean when an options trade is listed as SPIM?
• Question from Mubs - What must I analyze before buying an #option

Around the Block: Irma watch. Will volatility continue to move? The Jose wildcard.

Joining the all-star panel is guest co-host Greg Stevens, VP of Product Development of Options at Fidelity Investments.

Trading Block: Hurricane Irma puts Florida in it's crosshairs. The numbers are in: August was surprisingly strong. Earnings season is in the rearview mirror now.

Odd Block: TSLA options tracker. Upside call love in Himax Technologies, Inc. (HIMX), massive put block in iShares MSCI Japan ETF (EWJ), and call frenzy from 8/17 in Utilities SPDR (XLU).

Mail Block: Options question of the week

As Q4 looms, where are you placing your bullish #Volatility bets? Which has most #Upside by end of 2017? $VIX $AMZN #WTI $GVZ

• Gold Volatility
• Crude Oil Volatility
• S&P 500 Volatility - VIX
• Single Names - $AMZN, etc.

Listener Questions and comments: What's on your mind?

• Question from Ejh4isu - Question for the option block: What happens to puts I'm holding if the company files bankruptcy or becomes insolvent? Am I just out of luck?
• Comment from Notyourcountry - What's the probability that Netflix $NFLX won't file for Chapter 11?
• Question from CLT - Heard a rumor that minis were making a comeback. Any truth to it?

Around the Block: Hurricane cannon pointed at the southeast. NFL season kicks off tonight. Tension between China and North Korea.

Trading Block: A thin day in the market. Lululemon (LULU) after the bell: ATM straddle - $6.75, approx. 12%. Will invisible yoga pants strike again?

Odd Block: A review of past paper:

• Paper buying strangles in Tesla Motors (TSLA) on Aug 3rd.
• Call love in Extended Stay America (STAY) on Aug 7th.

Strategy Block: Uncle Mike Tosaw discusses call spread trades

Mail Block/Options Question of the Week:

Let's get cheap! If you had to buy "lottery ticket" December calls for $.05 in one name - which would you choose? #HomeRun

• AMZN
• AAPL
• Tesla
• VIX

Listener Questions: What is on your mind?

• Question from Bobster - Can you trade options outside of US trading hours?
• Question from Nanfran - What do you think would be a good option to buy right now heading into the end of summer?

Around the Block: One last look at Lululemon (LULU)

Trading Block: A quiet day in the market.

Odd Block: Ratio put spread in Expedia Inc. (EXPE), ratio risk reversal in Dollar General Corp. (DG), and put-palooza in Pure Storage Inc. (PSTG).

Mail Block: Options Question of the Week

Look at #MayweatherMcGregor as #Options traders. @TheNotoriousMMA calls cost $1, pay $3. #Floyd calls cost $4, pay $1. Your trade?

• 30% - Buy #Connor Calls?
• 32% - Buy #Floyd Calls?
• 16% - I'd rather sell premium
• 22 - Whoever Wins We Love

Listener questions:

• Question from Allan8 - Did Mark cash any calls on Floyd?
• Question from LAXX - Is it me or do the Vegas odds makers do a very similar job to options market makers?

Another Options Question of the Week:

Let's get cheap! If you had to buy "lottery ticket" December calls for $.05 in one name - which would you choose? #HomeRun

• AMZN
• AAPL
• Tesla
• VIX

MORE listener questions:

• Comment from The_Quantum_Revloution - Which options are trading at $0.05 though that's the question?
• Comment from Randy Wright - AAPL, and I just might join you.
• Question from NTT - Can you clarify the question from last show. Was that SPX put-call spread guy asking about selling OTM calls vs. OTM puts or same strike?
• Comment from Dennis Lyrintzis - Wow over 15,000 Jan 55 calls bought for AAL. Thanks for the Alert.
• Question from ReallyG‏ - Love your #podcasts! Question: market profile displays limit orders. Is there a service that displays stop orders? Just wondering
• Question from KBX32: What is the cheapest way to hedge my portfolio w options?

Around the Block: Upcoming Earnings LULU (8/31)

Trading Block: Amazon announces price cuts at Whole Foods, Hurricane Harvey bears down on oil central. Earnings are still happening! GameStop (GME) after the bell - ATM straddle $2, approx. 9%.

Odd Block: Rolling calls in Genworth Financial Inc. (GNW), rolling calls in SPDR S&P Metals and Mining (XME) and weird rolls in L Brand Inc. (LB).

Strategy Block: Uncle Mike Tosaw discusses strike price selection for a covered call.

Mail Block: Options Question of the Week

Look at #MayweatherMcGregor as #Options traders. @TheNotoriousMMA calls cost $1, pay $3. #Floyd calls cost $4, pay $1. Your trade?

• Buy #Connor Calls?
• Buy #Floyd Calls?
• I'd rather sell premium
• Whoever Wins We Lose

Listener questions: What's on your mind?

Question from Salman Azhar: To sell wkly $SPX opts against a long $SPX quarterly opt. Are call or put diagonals better for bears. Math is same but practice?

Around the Block: ULTA pared off the earlier selloff. GME off almost 8%. What's happening in Jackson Hole? AMZN + WFM closes on Monday. GoFundMe to buy Twitter.

Trading Block: The eclipse hits the U.S. market. Steve Bannon gone from the White House. Elon Musk urges the UN against the use of AI in warfare.

Odd Block: 105 More $TSLA Jan 2019 50 "Catastrophe" puts hit the tape today. Put spreads trade in Starbucks Corporation (SBUX). Size put spreads in Utilities SPDR ETF (XLU).

Mail Block: Poll review

Question of theWeek: Taking a break from #FireandFury & $VIX to talk #Earnings. Which #Options are you looking forward to trading this week?

• 18% - CSCO
• 57% - BABA
• 18% - HD
• 7% - WMT

FlashPoll: Which major index has experienced the largest % change in 30-day ATM #Volatility year-to-date?

• 15% - S&P 500
• 38% - Nasdaq 100
• 8% - Dow
• 39% - Russell 2000

Listener Questions: What is on the minds of our listeners?

• Question from For Profits: What do you mean by TSLA catastrphe puts?
• Question from Privateer - Hi guys, love the show. I have recently been learning about an exciting strategy called writing call options with CFDs. The claim by the teacher is that CFDs can leverage the return on premium selling by ten times, and reduce your break even significantly. I am very invested in how this could apply in selling both legs i.e covered strangles or straddles. Can you discuss the downsides, upsides and hedging strategies used in this scenario, and how to mitigate risk especially on the put leg? Sirs yes sir!
• Question from LJC6V - Is gold looking good for a collar here? Maybe 2-3 months out?
• Question from Tanzier - Who is left in broker world that has not been bought up? Any recs?
• Question from Vic - What is Tosaw up to in AAPL now?
• Question from Farimax - What options strategies do you use the most?

Around the Block: What is lurking in the misty ether of the future?

Trading Block: WMT and BABA earnings today before the bell. Donald Trump sympathizes with Confederate statues. A look at George Soros options positions.

Odd Block: More TSLA Jan 2019 50 "Catastrophe" puts hit the tape today. Call frenzy in Utilities SPDR ETF (XLU). Funky puts trade in Prospect Capital Corporation (PSEC). Rolling puts in WisdomTree India Earnings Fund (EPI).

Strategy Block: Uncle Mike Tosaw discusses his recent SPY diagonal spreads.

Mail Block/Options Question of the Week:

Taking a break from #FireandFury & $VIX to talk #Earnings. Which #Options are you looking forward to trading this week?

• CSCO
• BABA
• HD
• WMT

Listener questions:

• Question from Amir - Hi have Apple on a strangle put 155 and call 162.50 until the end of this week. With all the good news I thought it would pop over the 162.50 but now it is at 160.84. Do you think it will go back up or am dead in the water?

Around the Block: VIX and its aftershocks. Feigned rotational love. Watch interest rates.

Trading Block featuring Matt "Tubby" Benson.

• VIX back in the 12 handle - is Fire and Fury over?
• Sept future down from 15.20 to 13.20
• FIZZ and the Cook County soda tax

Odd Block: Puts trade in Urban Outfitters Inc. (URBN), risk reversal in Hewlett Packard Enterprise Co (HPE), calls trade in Teradyne Inc. (TER).

Mail Block/Question of the Week:

Taking a break from #FireandFury & $VIX to talk #Earnings. Which #Options are you looking forward to trading this week?

• CSCO
• BABA
• HD
• WMT

Volatility Flash Poll:

$VIX Hit 16.17 Thursday. Is this the end of low #Volatility? Or a temporary blip? Which level will $VIX hit first?

• 51% - Serious Vol >20
• 28% - Sindle Digits
• 21% - Heck with it - I'm in Cash

Last Week's Question of the Week:

Which #Options Exchange or group has carved out the largest piece of the #Options market so far in 2017?

• 72% - CBOE/BATS
• 17% - NASDAQ
• 3% - NYSE
• 8% - MIAX & BOX

Listener Questions:

• Question from Richard D - Often on segments like the odd block or similar segments on your other shows you talk about someone going bullish or bearish on certain contracts. For example lets take the Tesla way OTM puts you have mentioned. You talk about someone wanting to be long those catastrophic Tesla puts, but for each trade there is some party taking the other side. Since there is always another party in these trades why isn't it the inverse analysis - in this case for example that someone really wants to sell way OTM TSLA puts? Thanks!
• Question from JDiggs - Is the convention for quoting spreads ITM strike then OTM strike? What about time spreads?

Around the Block: Earnings! Investigating Trump. North Korea. China.

Trading Block: VIX getting some life again thanks to "fire and fury."

Earnings after the bell:

• NVDA - ATM straddle: $15, approx. 9%
• SNAP - ATM straddle: $2.25, approx.16.5%

Odd Block: Put spreads trade in iShares MCSI South Korea Index (EWY) , put rolls in SPDR Retail ETF (XRT) and puts sell and call in Urban Outfitters (URBN).

Strategy Block: Uncle Mike Tosaw discusses what happens when low volatility gets higher in the course of just one day.

Mail Block/Flash Poll:

BOX Options is opening a new trading floor. Do we need another floor to compete with Philly, NYSE, CBOE and all the rest?

• Yes, for complex orders
• No, there are too many exchanges
• N/A, I only trade electronically
• I am dusting off my trading jacket

Around the Block: What's coming up?

Earnings this week:

• Thursday - Macys, Kohl's, Nordstrom, Blue Apron, Snap Inc., Coca-Cola, Nvidia
• Friday -JCPenney

Big numbers:

• Aug 11: Consumer Price Index

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