Your Inside Source for Options Information

May 21, 2018


Finding an Edge: How Options Traders Use Alternative Datasets

Panel Video from the Recent Session

The explosion of new alternative datasets emerging every day adds an exciting yet daunting spin for the capital markets industry.
The challenges of assessing alt data — such as the wide range of data and types available, lack of historical analysis and alignment of data sourcing — can make it time-consuming and difficult to ingest and take action.

Check out these short videos from the panel event discussing how using alternative data can positively impact your trading.

 


 

 


Upcoming Economic Reports

A preview of what may move the market this week

TIME (ET) REPORT PERIOD FORECAST PREVIOUS
MONDAY, MAY 21
8:30 AM Chicago national activity index April -- 0.1
TUESDAY, MAY 22
  None scheduled      
WEDNESDAY, MAY 23
9:45 AM Markit manufacturing PMI (flash) May -- 56.5
9:45 AM Markit services PMI (flash) May -- 54.5
10:00 AM New home sales April 678,000 694,000
2:00 PM FOMC minutes      
THURSDAY, MAY 24
8.30 am Weekly jobless claims 19-May -- 222,000
10:00 AM Existing home sales April 5.50 mln 5.60 mln
FRIDAY, MAY 25
8:30 AM Durable goods orders April -1.00% 2.60%
8:30 AM Core capital equipment orders April -- -0.40%
10:00 AM Consumer sentiment index May 99 98.8

 


Options Insider Radio Network 

Episodes you may have missed from Options Insider Radio last week

 

Option Block 716: Secrets That Option Muggles Don't Know

Posted May 18th, 2018

Trading Block: Featuring special guest host Greg Stevens, VP of Product Development for Options at Fidelity.

Earnings!

  • Tuesday - Home Depot
  • Wednesday - Cisco, Macy's
  • Thursday - Walmart, Applied Materials, JC Penney, Nordstrom
  • Friday - John Deere
  • AMAT - 54.30, ATM straddle: 2.25, approx. 4%

Odd Block: Line in the sand puts in Teva Pharmaceutical Industries (TEVA). Call love in General Electric Company (GE). Roll/stupid in Mylan NV (MYL).

Mail Block: Options question of the week.

CME Group just announced a new Ether index this week - expanding the universe of Crypto indices. But, at the end of the day, we all want more tradeable products. Which derivatives product would you like to see next in the Crypto space? Bitcoin Ether Ripple LightCoin

  • Bitcoin Options
  • Ether Futures
  • Ripple Futures
  • LightCoin Futures

Listener questions and comments:

  • Question from Litnic - What is the best "secret" options indicator that you use that isn't widely known or followed?
  • Question from Brian P. - What's your favorite underlying to trade options on?
  • Question from Alexi K. - How large do you think the universe of readily tradeable options is for the investing public?
  • Question from QZ98 -Do you trade options on stocks below 5? What's the cutoff? 1

Around the Block: What are the all-stars keeping their eyes on?

 

Live from the 2018 Options Industry Conference: Industry Leaders Panel

Posted May 17th, 2018

Exchange leaders, alongside OCC leadership, touched on an array of current topics affecting the options industry.

Moderator: J.J. Kinahan, TD Ameritrade

Panelists

  • Ed Boyle, BOX
  • Andy Lowenthal, Cboe
  • Shelly Brown, MIAX
  • Kevin Kennedy, Nasdaq
  • Ivan Brown, NYSE
  • Scot Warren, OCC

 

Live from the 2018 Options Industry Conference: Options Liquidity in the Face of Changing Regulation

Posted May 17th, 2018

Key industry panelists discuss the evolution of market regulation and its impact on listed options liquidity across multiple market segments.

Moderator: John J. Fennell, OCC

Panelists:

  • Steve Crutchfield, CTC
  • Mauricio Izurieta, BAML
  • Dennis Davitt, Harvest Volatility Advisors


Live from the 2018 Options Industry Conference: Current and Future State of Volatility

Posted May 17th, 2018

Elinor Comlay from EQ Derivatives led an engaging session on volatility and its impact on trading participants in the options market.

Moderator: Elinor Comlay, EQ Derivatives

Panelists:

  • Rob Hocking, DRW
  • Euan Sinclair, Talton Capital Management
  • Aash Vyas, Pier88 Investment Partners

 

Options Playbook Radio 209: Long Call Spread with a Possible Roll

Posted May 17th, 2018

We are back in the saddle discussing options strategies. With the VIX in the low- to mid-teens, that makes for an interesting time to look at volatility. We are going to look at a long call spread, possibly with a roll. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, or on the Amazon Kindle edition.

Specifically:

  • Indexes and volatility
  • Looking to do this trade for positive theta
  • Selecting expriations
  • What's a time bomb butterfly?
  • Setting up the trade
  • Selecting strikes
  • What do we want to happen?
  • What is the max risk? Reward?
  • To adjust or not to adjust?

Do you have a question that you want answered on a future episode? Send them to Brian at [email protected], or to the Options Insider at [email protected].


Live from the 2018 Options Industry Conference: State of the Industry

Posted May 16th, 2018

Henry Schwartz from Trade Alert presented a detailed look at trends and current hot issues in today's options market.


Live from the 2018 Options Industry Conference: Sullivan Award Presentation

Posted May 16th, 2018

2018 Joseph W. Sullivan Award: Gary Katz

Gary Katz is the former President and Chief Executive Officer of the International Securities Exchange (ISE), the first all-electronic options exchange in the United States and one of the world’s leading exchanges. Prior to that, he served as ISE’s Chief Operating Officer.

Mr. Katz is one of the principal developers of the unique options market structure - an auction market on an electronic platform - used by all ISE exchanges and is named as inventor or co-inventor on six patents that the Company received or applied for relating to its proprietary trading system and technology.


Live from the 2018 Options Industry Conference: Exchange and Industry Updates

Posted May 16th, 2018

This year's panel for exchange and industry updates included:

  • Patty Schuler, BOX
  • Eric Frait, Cboe
  • Joe Bracco, MIAX
  • Sean Feeney, Nasdaq
  • Mark Krommenhoek, NYSE
  • Amy Lawson, OCC
  • Frank Tirado, OIC
  • Ellen Greene, SIFMA
  • Jim Toes, STA


OICs Wide World of Options 47: Panel - How to Build a Calm, Patient Trader Psychology

Posted May 15th, 2018

This rebroadcast of OICs webinar program focuses on what may cause an investor to lose control of their trading mind under pressure. Learn what needs to be done in order to produce the calm, patient mind necessary for effective trading.


Option Block 715: What Zone is VIX in Today?

Posted May 15th, 2018

Trading Block: Earnings!

  • Tuesday - Home Depot
  • Wednesday - Cisco, Macy's
  • Thursday - Walmart, Applied Materials, JC Penney, Nordstrom
  • Friday - John Deere

Odd Block: Crazy call palooza in Caesars Entertainment Corp (CZR). Bullish risk reversal in QUALCOMM, Inc. (QCOM).

Strategy Block: Uncle Mike Tosaw discusses what skew is.

Mail Block: Options question of the week

CME Group just announced a new Ether index this week - expanding the universe of Crypto indices. But, at the end of the day, we all want more tradeable products. Which derivatives product would you like to see next in the Crypto space? Bitcoin Ether Ripple LightCoin

  • 73% - Bitcoin Options
  • 13% - Ether Futures
  • 7% - Ripple Futures
  • 7% - LightCoin Futures

Listener comment:

  • Shared from Sonic Merlin - My Monday SPY puts.

Around the Block/Economic Reports:

  • May 15 - Retail Sales, Business Inventories, Treasury International Capital
  • May 16 - Housing Starts, Industrial Production
  • May 17 - Jobless Claims


This Week in Futures Options 101: Breaking Down Big Equity, Crude and Gold Moves

Posted May 14th, 2018

Today we feature co-host Sean Smith, Managing Director or Derivatives Licensing at FTSE Russell

Topics this week include:

  • Equities
  • Crude/WTI
  • Gold

Futures Options Feedback: Listeners have their say

  • Comment from Patrick Snoke - Only place #hoglove is seriously discussed is @Options #twifo and some underground blogs for lonely farmers. Each for different reasons.
  • Question from Harry H. - Can I buy options on the Russell VIX RVX? My broker doesn't seem to offer them.


Volatility Views 304: Is Spikes the Next Big Thing?

Posted May 14th, 2018

Volatility Viewpoint: Today's special guest is Shelly Brown, EVP, MIAX

He discusses:

  • SPIKES volatility index
  • What is it?
  • And more...

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

Volatility Voicemail: Listeners have their say

  • Question from James Emmett - What's your take on the new Spikes volatility product?
  • Question from Union J. - Will we ever have a VIX index product that we can actually buy and sell?

Crystal Ball: Wild and reckless prognostication

Last week:

  • Mark L. -16.05
  • Mark S. -14.25
  • Guest - 15.25

This week:

  • Mark L. -13.55
  • Mark S. -12.75


Options Insider Radio Interviews: Exploring Market Regulation with STA

Posted May 14th, 2018

When Mark was in Florida for the 2018 Options Industry Conference, he had a chance to sit down with Jim Toes, President of STA

They discussed:

  • What is the STA?
  • Why is the STA attending the Options Industry Conference?
  • What are the regulatory focuses of the STA?
  • Thoughts on auctions
  • Transparency versus speed
  • Issues in DC


Options Insider Radio Interviews: Diving into Controversy with MIAX

Posted May 14th, 2018

When Mark was in Florida for the 2018 Options Industry Conference, he had a chance to sit down with Shelly Brown, Executive Vice President of Strategic Planning and Joe Bracco, Senior Vice President and Head of Sales at MIAX.

They discussed:

  • The proposal for the third MIAX exchange
  • Addressing the critiques
  • What does MIAX bring to the market?
  • Why competition matters
  • What about the liquidity issue?
  • Penny pricing
  • Thoughts on auctions
  • And more...

 


Where to Find Options Insider Radio?

Do you know all the ways you can access Options Insider Radio

          


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. As always, you can join in the fun at http://mixlr.com/options-insider/


Stats from Last Week

  • VIX Cash Range: 12.50 - 15.01

  • S&P Cash Range: 2701.91 - 2742.10

  • SPX 30-Day Implied Volatility: 10.66

  • SPX 10-Day Realized Volatility: 8.07

  • SPX 30-Day Realized Volatility:  11.33

  • SPX Risk Premium (30-Day Implied - Realized): -0.67

  • Market Risk Premium (VIX Cash - SPX 30-day Implied Volatility): 2.76


 

Strategy 101: Brought to you by Ally Invest

Options Playbook Radio 183: DIS Backspread into Earnings

Posted November 9th, 2017

Since it is still earnings season, it makes sense to capture the movement surrounding earnings announcements. In this case, we are looking at a bullish ratio spread in DIS.

In this episode:

  • A recap of what happened with last week's FB position
  • After AMZN, FB looked a little boring
  • DIS reports earnings after the close on Thursday, November 9
  • What is the sentiment on DIS?
  • Looking at the long straddle to figure out pricing
  • Setting up a backspread in DIS
  • Picking the strikes and expirations
  • What is the downside? Upside?
  • What do we want to happen?

 

Do you have questions that you would like answered on the show? Send them to Brian at [email protected].


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