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July 17, 2017

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Options Insider Radio Network 

Episodes you may have missed from Options Insider Radio last week

Option Block 635: TSLA Puts, VIX Calls, No Love For APRN

Posted July 14th, 2017

Trading Block: Amazon Prime Day today. Lots of closing VIX puts. Waiting on what Yellen may say.

Odd Block: TSLA options tracker - 145 "catastrophe" puts hit the tape today, 20 more Jan 2018 20 puts also trade today. APRN first week review - paper buys 1080 Aug 9 calls for $0.40. Crazy tree or put spread in iShares MCSI Taiwan Index (EWT).

Strategy Block: A double strategy today! A put roll down trade in silver and a modified collar trade in XLF.

Mail Block: Options question of the week.

$APRN #options are live! Aug 8 calls top the charts so far. With $APRN at $8.15 Aug 8 calls are $.65-$.75. Would you rather?

• 28% - Buy Aug 8 Call for $.75
• 33% - Sell Aug 8 Call for $.65
• 6% - Buy $APRN Stock for $8.15
• 33% - Rather Eat $APRN's Food

Listener Question from Darqane: Assigned on short SPX puts means getting long the underlying? But how does that work if it is cash settled?

Around the Block:

This Week in the Market:

• Jul 14: Consumer Price Index, Industrial Production, Consumer Sentiment

Earnings This Week:

• Friday - Wells Fargo, Citi, and JP Morgan

 

Options Playbook Radio 166: IBM Bull Put Spread

Posted July 13th, 2017

For the last few episodes, we were reviewing skip-strike butterflies in GOOGL. You can find this on page 87 of The Options Playbook. This is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

In this episode:

• A review of the last few weeks of strategies in GOOGL
• Looking at IBM, which will announce earnings on July 18
• Remember: earnings add a bit of volatility to the underlying
• Where is the IV?
• Having a neutral to bullish outlook
• Going out further in time. Why?
• Time is on your side
• Picking the expiration
• Picking the strikes
• What will this cost?
• What is the maximum risk? Reward?

Do you have a question that you want featured on an upcoming episode of Options Playbook Radio? Send Brian an email at: [email protected].

 

Option Block 634: APRN Calls Not So Tasty

Posted July 11th, 2017

Trading Block: Blue Apron options to list on CBOE exchanges on Monday. "Amazon Prime Day" is today. A plan for new trading pit triggers a feud in the U.S. options market.

Odd Block: TSLA Options Tracker - 51 more "catastrophe" puts hit the tape today. Puts roll in L Brands Inc. (LB) Puts trade in Gap Inc. (GPS)

Mail Block: Listeners weigh in

Options question of the week: Blue Apron $APRN is down over 10% from its #IPO price. Assuming #Options were listed, what trade would you make?

• Buy Dec 10 Call for $1
• Buy Dec 9 Put for $1
• Sell Dec 10 Call for $1
• Not Touching $APRN

Listener questions and comments:

• Question from Tomlyn - What the heck does StoppedIM mean? - From IB Website: SPIM Transaction was the execution of an order which was "stopped" at a price that did not constitute a Trade-Through on another market at the time of the stop. Process like a normal transaction except don't update "last".
• Comment from PBiggers - Costco could not get filled to close, then this happens! Need a bounce next week.
• Question from Alfieg - Interesting article in Barron's. Any truth to it? How to Tame Volatility? Nix VIX and Buy CBOE.

Around the Block:

This Week in the Market

• Jul 11: JOLTS
• Jul 12: Beige Book, OPEC monthly crude oil report.
• Jul 13: Jobless Claims, Treasury Budget
• Jul 14: Consumer Price Index, Industrial Production, Consumer Sentiment

Earnings This Week:

• Thursday - Delta Airlines
• Friday - Wells Fargo, Citi, and JP Morgan

 

This Week in Futures Options 59: Breaking Down your Favorites - Crude, Gold and...Bitcoin.

Posted July 10th, 2017

Topics this week include:

• Crude
• Gold
• Reuters takes a page from TWIFO
• Silver
• Being jaunty

Futures Options Feedback: Listeners take over

Options question of the week. Let's get back to basics. #Options are great way to get long (bullish) exposure to stocks & futures. What's your fav way to go long?

• Long Call/Call Spread
• Short Put/Put Spread
• Stock(Future) Replacement
• Bullish Risk Reversal

ANOTHER Options question of the week: Everyone is talking about #Bitcoin #Volatility these days. Where do you stand on #Bitcoin after last week's aggressive downturn?

• 19% - Too Volatile - I'm out
• 09% - I'm still bullish
• 41% - I want #Bitcoin #Options
• 31% - I'm sick of #Bitcoin

Listener questions and comments:

• Question from Ely - Are collars generally easier to put on in futures options due to the different skew than equity options?
• Comment from JBiggs - I think lumber is probably the craziest. Who actually trades that stuff outside of hurricane season?
• Question from KBX32 - What is the cheapest way to hedge my portfolio with futures options?

 

Volatility Views 262: Crazy Nuke Vol Plus, VIX vs. VXN

Posted July 10th, 2017

Volatility Review: A look back at the week from a volatility perspective.

• The VIX juice is loose
• OCC cleared futures volume in June reached 13,194,530 contracts, a 16% increase from June 2016.
• One of the most popular - and controversial - trades in the stock market (XIV) is showing no signs of slowing down. MRA attributes the spiking popularity to the participation of mom and pop investors.

Russell's Weekly Rundown:

• VIX Options: ADV - 691k, Total 8.8M (7m calls, 1.8m puts)
• Apple, Facebook Among Techs Facing Huge Volatility
• Volatility Voicemail: Listeners take over

Options question of the week:: Blue Apron $APRN is down over 10% from its #IPO price. Assuming #Options were listed, what trade would you make?

• Buy Dec 10 Call for $1
• Buy Dec 9 Put for $1
• Sell Dec 10 Call for $1
• Not Touching $APRN

Listener questions and comments

• Question from Avery Thompkins - Heard you guys debating theoretical low for XIV. I am down with 5. That makes sense. What about the other side? How high can it get? Is 1,000 in the conversation?
• Comment from Safari Dad - A day without volatility is a day without sunshine
• Question from Vtrader168 - While VIX is at historical low, but Nov VIX future still stay high at 16.20. Nov VIX was ~15.7 on 5/1 and 5/2. So the term structure is relatively steep. Any implication?

Crystal Ball: Your prognostication headquarters

This week:

• Mark L. - 9.85
• Mark S. - 10.05
• Russell - 10.23

 

Where to Find Options Insider Radio?

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Options Insider Radio Network Live Recordings

Do you want to be a part of the fun?

This is when you can access the LIVE shows this week:

Monday:
Option Block LIVE at 3pm Central

Thursday:
Option Block LIVE at 3pm Central

Friday:
Volatility Views LIVE at 12pm Central
This Week in Futures Options LIVE at 1:30 Central