Options news you can use for Friday, August 17, 2018

Trading Block: A look back at the week from a trading perspective

VIX briefly back over 14.

Earnings:

• Wednesday - Macy's, Cisco
• Thursday - Walmart, JD.com, Nordstrom, Nvidia
• Friday - John Deere
• Walmart (WMT) had a blowout quarter and shares are surging.
• Nvidia (NVDA) - ATM straddle: $16.50, approx. 6%

Odd Block: Bullish risk reversal in Discovery Communications Inc. (DISCA) (From 7/19), Well-timed bullish stupid in Cleveland-Cliffs Inc. (CLF) (From 7/16), and earning bet in Interpublic Group of Companies Inc. (IPG) (From 7/16).

Strategy Block: Uncle Mike Tosaw discusses bad practices in financial advisors who claim to know options.

Mail Block: Options question of the week

This week we would like to know more about your level of #options expertise. Quite simply - how would you describe yourself at a dinner party?

• 12% - Current/Former Pro
• 21% - Retail Options Wiz
• 48% - Retail Options Dabbler
• 19% - Looking to Get Started

Around The Block/This Week In the Markets:

• Aug 16 - Jobless Claims, Housing Starts
• Aug 17 - Consumer Sentiment

Huddle, up listeners! It's time for Brian and Mark to take on listener questions, including:

• Options question of the week: Earnings season in in full swing. Which names will dominate your options trading this week?
  • 47% - AAPL
  • 37% - TSLA
  • 6% - GPRO
  • 10% - CBOE
• Question from Imhad1: Is HMNY now the most option-like stock ever? Back to $.08 after reverse splitting up to $14. Crazy! Who would buy an option on this thing?
• Question from Ling: I've heard some educators say that you should never hold out for the max profit in an options spread trade because that means you held onto it too long. Is this the case? Do you agree? Thx and enjoying the handbook.
• Question from Flyguy: Hey what do you guys do with your long calendar spreads? Do you close out the short leg if the stock doesn't move then keep the long leg or just close the whole spread out?

Options news you an use for Thursday, August 16, 2018

Options news you can use for Wednesday, August 15, 2018

Options news you can use for Tuesday, August 14, 2018

Trading Block: The week in trading (so far!)

• VIX is back over 14!

Earnings:

• Tuesday - Home Depot
• Wednesday - Macy's, Cisco
• Thursday - Walmart, JD.com, Nordstrom, Nvidia
• Friday - John Deere

Odd Block: Shares surge in Rent-A-Center Inc. (RCII) (from 6/18), put spread in IQIYI Inc. (IQ) (from 6/21), ratio call spread in Melco Resorts & Entertainment (MLCO) (from 6/4)

Mail Block: Listeners take over

QOTW: This week we would like to know more about your level of #options expertise. Quite simply - how would you describe yourself at a dinner party?

• Current/Former Pro
• Retail Options Wiz
• Retail Options Dabbler
• Looking to Get Started

Listener questions and comments:

• Comment from CNelsen - Puts, calls. Calls, puts. Does it really matter?
• Question from Ling - I've heard some educators say that you should never hold out for the max profit in an options spread trade because that means you held onto it too long. Is this the case? Do you agree? Thx.
• Question from GunPowderJim - How do you calculate profit/loss on a ratio spread? If I buy 1 call and then sell 2 more do I average across the 3 contracts to determine the P/L on the spread?

Around the Block/This Week in the Markets:

• Aug 14 - Import and Export Prices
• Aug 15 - Retail Sales, Industrial Production, Treasury International Capital
• Aug 16 - Jobless Claims, Housing Starts
• Aug 17 - Consumer Sentiment

Volatility Review with very special guest co-host Russell Rhoads, Head of Derivatives Research at the Tabb Group.

• Volatility and selloffs return briefly during earning season.
• VIX Cash - 11.83, down slightly from last week.
• VVIX - 88, unchanged from last week.
• VIX Options - ADV: 440k, VIX call/put: 3/1, Total 7.95m (5.96m Calls, 1.99m Puts)
• VXX - 28.5, 2 points lower than last week.

Volatility options question of the week: VXX has finally broken through the 30 handle. Many of you are fascinated with the ongoing saga of the VXX Jan 10 Puts. OI is over 200k and thousands continue to trade for $.01. Our question: Would you trade these puts?

• 57% - Yes: Buy for $.01
• 14% - Yes: Sell for $.01
• 23% - No. It's Just Gambling
• 6% - I have enough VXX Puts

Volatility Voicemail: Listeners have their say

• Question from VolBug - When it's all said and done, is the bottom line that all inverse VIX products, whether short term or mid-term, can be subject to an acceleration event like SVXY given a high enough spike in the VIX? Thanks!
• Question from LL09 - Are you guys still trading these things? Saw 1k go up yesterday. Was that meatball?
• Comment from LVAC2 - Etrade wants to charge me $159.95 to buy 200 of those VXX Jan 10 puts. That's highway robbery!

Crystal Ball: Getting our prognosticating on

Last week:

• Mark L. -11.45
• Mark S. -12.76
• Guest - 12.05

This week:

• Mark L. -12.25
• Andrew -11.01
• Russell - 13.05

Options news you can use for Monday, August 13, 2018

Trading Block: A week in review from a trading perspective.

• The 30 handle is in the rear-view mirror for VXX - more puts hotting the tape.
• OCC Cleared Contract Volume Up 15 Percent in July

Earnings:

• Monday - Tyson, Marriott, Tenet, NeoPhotonics, Vericel
• Tuesday - Snap, Disney
• Wednesday - CVS, Roku
• Thursday - Coca-Cola, Viacom, Dropbox

Odd Block: Review from 7/9: Rolling July put spread in iShares Russell 2000 Growth Index (IWO), vertical opening in Endo International PLC (ENDP), and small verticals in Amgen, Inc. (AMGN)

Strategy Block: Uncle Mike Tosaw discusses both metals to buy now and WWF Champs from 1984-1988!

Mail Block: Volatility quesiton of the week

VXX has finally broken through the 30 handle. Many of you are fascinated with the ongoing saga of the $VXX Jan 10 Puts. OI is over 200k and thousands continue to trade for $.01. Our question: Would you trade these puts?

• Yes: Buy for $.01
• Yes: Sell for $.01
• No. It's Just Gambling
• I have enough $VXX Puts

Around the Block/This Week in the Markets:

• Aug 7 - JOLTS
• Aug 9 - Jobless Claims, PPI
• Aug 10: Consumer Price Index, Treasury Budget