 Trading Block: Rally Ho post Paris. U.S. stocks rise slightly as markets see muted reaction to Paris attacks. Getting Bullish on Yahoo! Heavy call action today. Getting bullish on Bank of America (BAC).
Odd Block: Puts trade in TJX Companies Inc (TJX), calls trade in Lions Gate Entertainment Corp (LGF), and dalls trade in Burlington Stores Inc. (BURL).
Strategy Block: Tosaw discusses how he has stretched deltas since October 26.
Mail Block: Listener questions and comments
- Question from Carmine - Hi guys, awesome site, great info Since I actually think you guys are for real, I have a simple question. I have just put my toes into options, I know I need help in education, but there are so many places that are more interested in taking your money than helping you. So I am asking you guys, where do you think is a good place to go and learn the simple things at first, such as, when, why, and how to use spreads, or maybe not use them. To day trade or not? I am hungry, with a small account. I am asking for your help. Thank you.
Around the Block: The earnings spotlight is on Wal-Mart and other retail giants this week. Also, numbers!
- Nov 17: Consumer Price Index, Industrial Production
- Nov 18: Housing Starts, FOMC Minutes
- Nov 19: Jobless Claims
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Trading Block: Stocks fall as ECB, Fed weigh next moves. White says short selling getting her "intense attention."
Earnings:
- Before the bell today: Kohls Corporation, Viacom
- After the bell today: Applied Materials, Inc., Cisco Systems
- CSCO - $27.94, ATM Straddle: $1.40 - Approx. 5%
- Stocks to Watch: Kohls, Advance Auto Parts, Derma Sciences
Odd Block: Puts trading in United States Steel Corp. (X), calls trade in Microsoft Corp (MSFT), and puts trade in Atwood Oceanics Inc. (ATW)
Listener Mail: Listener questions and comments
- Question from OptionDummy: Are there any additional nuances with a name reporting earnings on Expiration Friday?
- Question from Cookie: What is the best online broker for stocks and futures options?
- Question from Cspell: I'm interested to get OI's thoughts on second order greeks. I don't recall them ever being mentioned on any of your shows before. I don't see too much mentioned about them in general, even in the hinterlands although I have recently seen them talked about on another site and they tout them as the holy grail so to speak. Thanks!
Around the Block: Earnings on Friday: J.C. Penney, Tyco International; Nov 12: Jobless Claims, JOLTS and Treasury Budget; Nov 13: PPI, Retail Sales and Consumer Sentiment; on Friday, the Commerce Department reports U.S. retail sales for the month of October, when retail sales likely increased 0.3%. |
Trading Block: Who was right about volatility? What will the Fed do? Crude doubletalk from OPEC. Crude curve looking interesting.
Odd Block: Calls trade in EFA-big upside call closer, calls trade in MW, and puts trade in MDT.
Strategy Block: You, too, can be a winner. Or, the importance of looking at your whole portfolio.
Mail Block: Listener questions and comments.
- Question from 777: What quirks are there with time decay, [especially] during [the] last few weeks with ITM vs. OTM?
- Question from Topcat: Are options less risky than contracts for difference?
Around the Block: Retailers begin to step into earnings spotlight this week, including J.C. Penney and Macy's. Other highlights will include reports from tech giants Applied Materials and Cisco Systems. |
Trading Block: Earnings!
- Before the bell today: Apache, Celgene Corporation, Crocs, Inc.,
- After the bell today: Walt Disney Company, DreamWorks Animation
News:
- DIS: $113. ATM straddle: $4.85, 4.3%. On a huge rally since massive selloff in August.
- OCC Cleared Contract Volume Declined 26% in October.
- Market falls in line with Yellen, but now Fed credibility at stake.
Odd Block: Calls and puts trade in Bank of America Corp. (BAC), calls trade in Metlife Inc. (MET), and puts trade in Straight Path Communication (STRP)
Listener Mail: Listener questions and comments
- Question from Kevin - How do you put on such a small trade for a client and still get paid?
- Question from David - There is huge open interest for TWTR at the 30 strike for the Nov monthly, almost 240,000 contracts evenly split. Can you talk about the possible implications? Is it interesting?
Around the Block: Earnings!
Numbers:
- Nov 5: Jobless Claims
- Nov 5: GDP
- Nov 6: Unemployment
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Trading Block: Earnings!
- Before the bell today: Visa, Cardinal Health, Estee Lauder,
- After the bell today: Allstate Corporation, AMC Entertainment, Avis Budget, Fitbit, Inc., Tenant Healthcare Corporation
- Chipotle tumbles after e. coli outbreak is linked to chain.
Odd Block: Calls trade in Tyson Foods, Inc. (TSN), puts trade in Pilgrims Pride Corp. (PPC), and calls trade in Sprouts Farmers Market Inc. (SFM).
Strategy Block: Tosaw discusses his all bullish client
Mail Block: Listener questions and comments
- Comment from CSpell - With SC down 14% so far on 10/29/15 and what looks like some investigation pending, it seems our friend was on the wrong side on this one. I think you should have a follow up on odd blocks as part of the show, could be fun.
- Question from RBolen22 - Are there active listed options markets outside the US that are worth trading? Have you ever covered this?
Around the Block: High hopes for Facebook, Disney earnings this week.
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Trading Block: Earnings!
- Before the bell today: Coca-Cola, CME Group Inc., the biggest futures-market operator, said profit soared in its third quarter, lifted by higher trading volume and growth in the company’s market data and information services business.
- After the bell today: BAIDU, Electronic Arts, Expedia, LinkedIn Corporation, Starbucks.
- EA - ATM Straddle $4.70 - Approx. 6.2%
Also, on this day (October 29) in 1929: The New York Stock Exchange crashed in what would be called the Crash of '29 or "Black Tuesday."
Odd Block: Calls trade in CBS Corp (CBS), calls and puts trade in Walgreens Boots Alliance Inc. (WBA), and calls trade in Kate Spade and Co. (KATE)
Listener Mail: Listener questions and comments
- Question from 603 - Before a report like FOMC, is buying calls bad due to Vol premiums?
- Question from 777 - What quirks are there with time decay - during the last few weeks with ITM vs. OTM?
- Question from Angus G - On your TopStep radio show just now you mentioned "buying WTI Crude Oil calls". What is the ticker symbol for these products?! When I put WTI into my broker I get "W&T Offshore". I thought USO was the best/only way to speculate on CL using options? You mentioned however that there might be better options that more directly mirror crude... Thanks
Around the Block: Earnings on Friday: CBOE Holdings, CVS, Chevron. |
Option Block 473: Behold the Power of Deo
Trading Block: What is happening right now? Earnings! Before the bell today: Xerox Corporation. Wall Streets next test: Profits, data, and the Fed. The S&P 500 rallied 2.1% last week - its fourth consecutive week of gains. Once again, Apple is expected to fuel earnings. Gold rally brings out options bulls.
Odd Block: Calls and puts trade in Diageo PLC (DEO), calls trade in the Coca-Cola Co. (KO), and calls trade in Mens Wearhouse Inc. (MW).
Strategy Block: St. Charles awakens, andTosaw discusses his latest trading strategies.
Mail Block: Listener questions and comments
- Question from Veg - I do not know much about options - apologize for my noobness. In August, during the mini crash, were traders selling premium in the equity options? If so, how does that work? Is the spread wide?
Around the Block: What are we watching? Earnings! This week will be one of the busiest of the third-quarter earnings reporting season. Tuesday - Alibaba (before bell), Apple (after bell), Gilead Sciences (after bell), Jet Blue (before bell). |
Trading Block: Today we feature special guest Dan Cook from NADEX.
Earnigns:
- Before the bell today: Eli Lilly, 3M, Dow Chemical, McDonalds, Nasdaq, Sirius, Southwest Airlines
- After the bell today: Alphabet Inc., Amazon, AT&T, Microsoft, Pandora
News:
- Dow surges more than 275 on McDonald's, ECB stimulus talk - McRevenge! McDonald's turns table on Chipotle.
- Now that Google Is Alphabet, options suggest another big stock move.
- Barclays: Use bullish options to play gold rally.
Odd Block: Calls trade in Prudential Financial Inc. (PRU), calls trade in eBay Inc (EBAY), and calls trade in Corning Incorporated (GLW).
Listener Mail: Listener questions and comments
- Question from Fred - I trade futures all day but not options. Trying to trade on a longer term cycle to avoid juggling positions. What advice do you have for someone who wants to trade options but cannot babysit their options daily?
- Question from Peter D. - Stocks are being hit by latency sensitive strategies like HFT. Is that happening in options as well?
Around the Block: Earnings on Friday - American Airlines (before bell), Procter & Gamble (before bell), Whirlpool (before bell). |
Trading Block: Oprah buys 10% of Weight Watchers, stock soars. Also, earnings!
- Walmart (WMT) stock plunged 10% last week on sharply lower guidance from the company.
- Analysts expect Amazon (AMZN) to report a 21% jump in revenue compared with the year-ago period.
- Yahoo (YHOO) is also expected to notch a 15% jump in revenue. Analysts are betting on Microsoft (MSFT) and IBM (IBM) to maintain reasonably healthy profits amid falling revenue, while American Airlines (AAL) is likely to see a big jump in earnings on plummeting fuel prices.
Odd Block: Calls trade in Santander Consumer USA (SC), calls trade in Sirius XM Holdings (SIRI), and uts trade in Weight Watchers Intl. (WTW).
Strategy Block: Tosaw discusses his most recent trading activities and why he has been staying away from bonds.
Mail Block: Listener questions and comments
- Question from ONV - Do you focus on all stock options that trade at large multiples, or is there some other way that you determine which names to analyze?
Around the Block: Google stands out amid low earnings expectations. |
Trading Block: VIX - The Chicago Board Options Exchange Volatility Index fell 4.6 percent Thursday to 17.21, after back-to-back gains for the first time since Sept. 28. VIX is down 30 percent this month, on track for the most since July.
Earnings: The third-quarter earnings crunch begins this week.
- Mattel (MAT) - $22.26, Oct 22 straddle - Approx. $2 / 9% move.
- Netflix (NFLX) added fewer subscribers in the U.S. in the September quarter than it had anticipated.
- Amazon (AMZN) is up 1.6% at $553.29, as traders celebrate lackluster subscriber statistics for programming rival Netflix, Inc.
- Odd Block: Calls trade in Micron Technology Inc. (MU), calls trade in Solarwinds Inc. (SWI), and puts trade in Market Vectors Russia ETF (RSX).
Listener Mail: Listener questions and comments
- Question from Angelo M - I have been listening to the Options Playbook Radio episodes on iron butterflies and skip strike butterflies. I wondered what you guys on the All-Star Panel thought about maybe combining those concepts with a ratio iron butterfly that sells an extra put on the downside leg. My thought process is to do this in stocks where I expect a big move but I also do not mind buying the underlying at the level of the lower leg? It would also help reduce the outlay of the trade and make it easier to break even. Thoughts? Great show and great discussions.
- Question from Futures MD - Does theta increase or change intraday - perhaps around lunch?
Around the Block: Earnings on Friday, October 16 include GE, Honeywell International and WW Grainger. |
