Articles from the Experts

Our experts offer free thoughts on the market almost every day. Follow the links to the articles on their sites to learn more about how they trade and what brokerage firms they use.

If you want a special on any of the services offered by our experts, visit Trade Comparison's Facebook page and "Like" us to get special discounts from any or all of our experts.

Option Block 303: Wither Single Name VIX?

Trading Block: Most of the major indexes selling off about 1%. A lot of put activity on the street. The numbers are out for 2013!

Odd Block: Puts trade in SPDR S&P 500 ETF Trust (SPY), puts trade in Yahoo! Inc. (YHOO), review from 11/25: Ziopharm Oncology Inc. (ZIOP), also Titan International Inc. (TWI), review from 10/24: Jive Software Inc. (JAIV), also Covanta Holding Corp. (CVA), review from 06/27: New York Community Bancorp, Inc. (NYCB), also Goodrich Petroleum Corporation (GDP), and review from 10/03: YPF SA (ADR)

Strategy Block: We have a special guest for today's strategy block, featuring Andrew Giovinazzi. He discusses some vol structure and strategies ahead of the Bernanke announcement.

Around the Block: What to watch post-Fed? Alcoa 1/9.

Option Block 302: Looking Forward, Looking Back

Trading Block: Predictions for 2014

  • Mark - I wish they could finally get the Minis right. Hopefully someone wiIl figure out how to aggregate spread flow across exchanges to improve spread execution, less exchanges, less fixation by retail on VIX/ETFs and more migration to futures/futures options. 
  • Andrew - I like a VIX low print prediction.  Where the market is going and the forgotten sectors in 2013 and how they will fair.
  • Alex - Cash settled equity options (that would be pretty sweet). Hope the tax folks don't pass mandatory mark to market. No transaction tax. After hours trading. Five year Leaps. Adjust maker/taker to discourage HFT. An industry standard for delisting zero open interest series. Electronic trading for the options on the big SPU.Predictions: More consolidation - I was wrong about this occurring in 2013.
  • Tosaw - Another big year for SPX. Waiting to see Apple earnings tomorrow before I can give a prediction for 2014. I would like to see more volume in the jumbo SPY. Feeling "straddlish" for 2014.
  • Mark -  I predict more exchanges, something occurs to clip the wings of this rally in 2014, not much appreciable Vol in the marketplace until the next big government debate at end of Q1.

Xpress Block: Twitter was the only big name on the desk. A very important discussion on the 1256 issues.

Mail Block: Tell us what you want to hear.

  • Question from Jason KruseRUSE @Jkruse81- @Options thought about a strategy of maxing out margin to buy a lot, then selling a deepish ITM covered call. Is there a name for that? -@Options or have you guys talked about something like that where I could get a better idea of risks?
  • Comment from Gary Barisi - That much action because they got a $50M insurance claim!?
  • Question from Jack @Itrumpdoom - Option Block Front or Back? I apologize if this question has been covered in the last year and I missed it, in dealing with ratio vertical spreads, will you please explain what makes a front spread front, and a back spread back? Thanks

Option Block 301: Twas the Day Before Christmas

Trading Block

A strong rally on the street on the back of a strong consumer sentiment - A sea of green. Everyones favorite fruit company, Apple up during the day.Some substantial moves in CBOE. VXX hits a low for the year. 

Odd Block

Call buyers trade in Meritor Inc. (MTOR), put sellers trade in Ambac Financial Group, Inc. (AMBC), call sellers trade in Select Sector SPDR Financial (XLF) and huge rolls in Hercules Offshore, Inc. (HERO)

Xpress Block

Apple, CBOE and social networking were all seeing a lot of action today.

 

Mail Block

Question from Dylan, Fort Nelson, British Columbia: I have a question on diagonal spreads today. Is there a good way to capitalize on the long vega these spreads generally have without actually selling the long vega option? I've been looking at using the premium gained in the option in a Vol pop to buy "free" puts in VIXM or VXZ and extract some of this premium instead of just watching the Vrol grow and then go away. Maybe a good one for Uncle Mike as I know he's a big diagonal fan. Thanks,

300th Episode Spectacular!

Hooray for our 300th episode!

Mark Sebastian, Mike Tosaw, Andrew Giovinanzzi, Alex Jacobson, Mike Cavanaugh and John Grigus join Mark "The Voice of Options" Longo, to reminisce about the all their favorite moment and shows of the past three years.

Comment from Phil M. - Great show guys! Fun times listening to the Option Block. Keep up with what you guys love to do.

Comment from Jay Thomas - Congrats to "The Voice of Options" on 300 episodes of The Option Block! Keep them coming as this show makes my Tuesdays and Fridays much more bearable.

Comment from Ian Getz - Congratulations in advance on the 300th episode of The Option Block. Mike Tosaws BBI and successful Apple saga were my favorite 2013 moments!

Comment from Jim Jam - Love the show! Whats with all the nicknames? Why does Mark L not have a nickname? How about "The Leader", "The General", "Host Master" or "Barry White of Options"?

Comment from Mr Ill - Thanks Mark for bringing us so much great content over the years, and congrats to the whole all-star panel on Option Block 300. I enjoy the whole network, but OB is far and away my favorite. There is nothing else like it on the air.

Comment from Tim Meads, Montana - I just discovered this show and I am looking forward to perusing the other 299 episodes in the archive. Heres to episode 600! P.S. Where can I get a jaunty, viceroy cap?

Comment from Dave S., Burbank, CA - My favorite OB show title is "Netflix Strangles Children" from episode 261! Wishing you continued success.

Option Block 299: Band-Aid for a Severed Jugular

Trading Block: A broad rally across the street on the backs of strong manufacturing data. Fed meeting coming up.  Herbal Life halted today. SEC promising to crackdown on insider trading. What exactly is HFT?  Stock buybacks accounting for substantial percentages of ADV. 

Odd Block:  Puts buyers trade in Royal Bank of Canada (RY), puts trade in ZION Bancorp (ZION), calls trade in Noble Corp. (NE), and calls buyers trade in KBR, Inc. (KBR).

Xpress Block:  Herbal Life, Oracle, Lululemon all popular names on the desk today. 

Strategy Block:  A shout out to the bears. 

Around the Block: Fed on Wednesday? Will they taper?

Option Block 298: Only Getting 80%

Trading Block: A mixed day on the street. Post non-farms, what is left to give us some vol? Where does one look for premium writers in this environment? Tosaw Update. OX Update.

Odd Block: Calls buyers trade in CYTRX Corp. (CYTR), calls buyers trade in Glu Mobile Inc. (GLUU), and call buyers in Bean Inc. (BEAM)

Xpress Block: Twitter and Facebook was where the action was on the OX desk.

Strategy Block: Uncle Mike Tosaw breaks down the recent adjustment to his position in GLD.

Around the Block: Is there anything to look forward to in this environment?

Option Block 297: Talk of Tesla & Twitter

Trading Block: Not a lot to drive the market today. Futures are trading a discount to the cash. Non-farm payrolls.

Xpress Block: Tesla and Twitter were lighting up the OX desk today. Also, the United/American Airlines merger - What happens to those investors?

Around the Block: Keeping an eye on the 10-year and Home Builders earnings. 

Option Block 296: Apple Fire Sale

Trading Block: A mild selloff on the street. Some vol has been creeping back into the market ahead of Non-Farms. The Apple zealots are back. Pressure continues on the metals.

Odd Block: Calls trade in Arris Group Inc. (ARRS), calls trade in CME Group (CME)

REVIEW FROM 10/24 - Calls trade in Jive Software Inc. (JIVE)

Xpress Block: Rumors that Fords CEO may be coming to Microsoft? Gold and energies were the hot products today.

Mail Block: Facbook Question comes in under the wire

Question from Dylan Harris - I have a point I would like discussed on the Option Block. Can you guys discuss locking in gains for long premium trades? Do you gamma scalp with stock or sell options against the position? Or is it best to just close the position and save the commission costs? Love the shows, thanks!

Around the Block: Non-Farms tomorrow. But then what? Not much on the horizon for the rest of the year.

Option Block 295: Saving Yourself Some Headaches

Trading Block: Is there any vol on the horizon? Amazon drones - watch your head! Black Friday a resounding meh, Cyber Monday still a question mark. The Tosaw update: GLD, SLV, APPL, etc.

Odd Block: IB Options Brief: Best Buy Co. (BBY), calls trade in Intel Inc. (INTC), combos trade in Sprouts Farmers Market Inc. (SFM), calls trade in Forest Labs Inc. (FRX), rolling puts in Avon Products, Inc. (AVP).

Mail Block:

  • Question from Mountain Man Tim - This question is for Uncle Mike. How do you typically determine the put level that you purchase on a stock? For example, you have mentioned being long the 460 put in Apple. How do you determine the put level that you/your client uses as a hedge?
  • Question from Jon Jones - What is the ASPs take on Twitter? Long calls? Long puts? Other?

Around the Block: What could possibly bring back activity to the market? Non-farms coming up. Farewell Bernanke!

Option Block 294: You’re Soaking in It

Trading Block: Positioning going into the short weekend. Where are the long premiums? Where is the free juice? Are OX clients still trading or are they already on vacation?

ZNGA love - time for Andrew to gloat. TWTR giving up some of the gains.

Odd Block: Hail Mary call buying in The CBOE Volatility Index (VIX), calls trade in Ziopharm Oncology Inc. (ZIOP), and in Titan International Inc. (TWI)

Xpress Block: The Warren Buffet put in Exxon? The success of OX mobile trading.

Mail Block: We’re taking your questions

  • Question from Allan Schwartz - Why is open interest still only updated daily? Do we not have enough information now to update that more frequently, if not instantly? If I buy to close 30 calls, that should be reflected in the OI instantly, not the following morning.
  • Question from Biz Man - Does OX offer any systems to automate trading? Example - Automatically write a 5% OTM call on XYZ underlying every month/week, etc. It would save some hassle for busy clients. 

Around the Block: The holiday approaches. Markets closed Thursday, and half-day on Friday.

Pages