Articles from the Experts

Option Block 331: Maximizing Your IRA

Trading Block: It was a pretty slow day, with all major indices basically unchanged on the day. Expiration issues prompted many phone calls to the optionsXpress desk. Earnings aren’t running over premium sellers like the last time. Pit trading helped out the CME last week. HFT narrative still active in the market. 

Odd Block: Big call buy in Wal-Mart Stores Inc., May call spread trades in Western Digital Corp. (WDC), put buying in Target Corp. (TGT), and closing out a huge position in Lloyds Bank of London (LYG).

Xpress Block: Frenzy about a shortened expiration week, particularly with indexes. 

Mail Block: Listener questions drive the conversation.

• What to do with a losing position?
• Day trading commissions and tax implications.
• Maximizing a Roth IRA.

Option Block 329: The Great SPY vs. SPX Iron Condor Debate

Trading Block: A sea of red on the street today. A lot of directional paper going through OX today. Terrible data coming out of China. CBOE Short-Term VIX product (VXST) launches.

Odd Block: Getting the RDA of RDA puts (RDA), big put blocks trade in Bill Barrett Corp. (BBG), and IV jumping in Tower Group International Ltd. (TWGP).

Xpress Block: A mass exodus from momentum stocks. What exactly caused this?

Mail Block: Commissions and Buy/Writes

• Question from Brian Collamer - Mark mentioned he thought U.S. retail accounts should be trading SPY rather than SPX options in a recent Options Block episode. I 'm selling Iron condors in SPX {2 contracts, just learning...} When I looked at the same size trades in SPY {20 contracts}. The commissions were killer. I like the idea of better fills in SPY and no open outcry trading, but seems like the commissions/fees really make them untenable at my levels. Am I missing something? Thanks for the great podcasts!! Brian
• Question from AJ - I was listening to The Option Block #266 Juice & Paper and you guys mentioned how you saw unusual activity in FCX which looked like a Buy/Write trade. My question: How can you tell when an option trade is a Buy/Write or options paired with shares trade? Thanks.

Around the Block: What will pick up the market?

Option Block 327: You, Too, Can Be an FBI Junior Agent

Trading Block: March options volume rose 14%. ADV was 16,931,924 contracts, equity options volume was 321,641,596 contracts. FBI to investigate high frequency trading - the FBI wants your help!

Odd Block: Big call purchases in DFC Global (DLLR), buy-write in Williams Companies, Inc. (WMB), bullish bet in Resolute Energy (REN), and big block of puts trade in Corning (GLW)

Xpress Block: Google now trades on an adjusted basis: Class A and Class C shares.

Mail Block: Tell us what you want to know.

• Question from Wael Randa - What service do you offer to help options traders. Also I am looking for a scanner to spot big order block by investors. Any free or paid service. Thanks a lot, Samuel.
• Question from John King - @Options could you discuss trade entry for Iron butterfly/condor (ignoring commish)-all at once vs. leg verticals vs. buy strangle then sell straddle?
• Question from Fred Blackes - Geez, you guys are great.  Why is it that you were the only ones who read the FIO options actions April 25 2013 correctly?  Everybody else had the trader/Hedgie buying the Sept 24 calls. Do you offer any service for learning/advisory

Around the Block: S&P 500 hits another record. Unemployment report Friday. Earnings coming up next week. 

Option Block 325: SPX vs. SPY vs. Steven Seagal

Trading Block: A mild day on the street. VIX cash taking a little breather. A lot of put buying in Google, Tesla, Netflix, Priceline, etc. Lululemon gets its first big pop in a while. TLT reaches a one year high.

Odd Block: Combos trade in the VIX, straddle trades in EQT Corporation (EQT), calls trade in Ares Capital Corp. (ARCC), and puts trade in SPDR Barclays Capital High Yield (JNK)

Xpress Block: Growth was in short supply today on the OX desk - a mass exodus. A mixed bag for the biotechs. Idea Hub is coming to Schwab mobile soon! Plus spot VIX products!

Listener Mail Extravaganza: Because if it’s going to be an extravaganza, why not make it about mail?

Question from John King - Could you discuss SPX vs SPY vs ES opts? Bid/Ask slip VS commish, Margin treatment, ex-div/exercise annoyance, etc.? Thanks! - Commish in my case are flat .75/cntr, no tkt chg. For ES opt its $3.65 thx!

Question from Nick Snow - Options block 323 - You mentioned on this show that RBS had a bunch of Aug 10 ATM volume today.  I noticed this also and I am not sure I get it. RBS has lots of problems with the queen and the LIBOR fees they pay from loans. I am not sure how I can phrase this so it’s tradeable but if any company where to have an IPO of a company owned with in. Would you buy calls on the company that was public because you assume the cash injection from the IPO would boost the stock of the parent? If you want to get more clarity around that I can but I am sure it will kill your ability to trade RBS. And as an options express account holder tell them to get flies on their scans instead of just condors. :)

Question from Nishant Pant - I love your show so much. Every morning at gym, I am listening to your podcasts instead of music like everybody else. One thing I am frustrated on the internet is everybody is just busy explaining what a straddle or strangle or any other thing is...instead of telling the practical things you need to keep in mind and you guys do such a great job in explaining the gotchas and the greeks which matter. Is it possible for you to add actionable ideas? Tomorrow GRPN is releasing earnings. Maybe you can build upon what you have already taught us and explain an actionable idea and tell us why you think a particular trade you are suggesting makes sense. I would pay for such a podcast at the blink of an eye. Just for the learning aspect of it.  Thanks again for your awesomeness.

Around the Block: Treasuries. Volatility. What will Russia do next? Buy the dip…a 52% guarantee. Short supply in growth issues.