Articles from the Experts

Option Block 291: Twas the Night before Twitter

Trading Block: A mild rally on the street today. A tepid outlook from Walmart, doesn't bode well for the economy. Cisco taking in on the chin post-earnings. Happy Twitter Options Eve! Any client interest in trading twitter options?

Odd Block: Crazy call buyer in The CBOE Volatility Index (VIX), calls trade in Tile Shop Holdings (TTS).

Xpress Block: No Alex today. So it’s time for the Trading Patterns Guessing Game - Special Twitter Edition.

Strategy Block: Uncle Mike Tosaw discusses when to roll up a call on a diagonal call debit spread.

Mail Block: Whacha wanna know?

Question from Ham Shack - I have read some articles that say Twitter options, particularly the put options, will be very wide and expensive on launch day. I can wrap my head around wider spreads for a new issue, but why would the puts cost more? Is it just a question of bears bidding up the volatility?

Around the Block: Will the SPX break 1,800? Could we see the highs of the year next week?

Option Block 289: What a Twit!

Trading Block: November 14 is official day Twitter goes public. CBOE earnings on Friday, CME before the open - both resounding "mehs." Apple actually closes around where it started. Blackberry taking it on the chin. Again.

Odd Block: Calls trade in Berry Petroleum Co. (BRY), calls trade in Applied Micro Circuits Corp. (AMCC), calls trade in Marin Software Inc. (MRIN), and calls trade in ValueVision Media Inc. (VVTV).

Xpress Block: Cue the game show music for yet another edition of "The Trading Patterns Game."

Listener Mail:  Comments and questions from our audience.

• Comment from Options Curator - Just BTO an $AAPL Feb14 515 Call at $31.20. Let see how #ChristmasHoliday plays out. @Options #options #trading #investing
• Question from BillyMo @b1llmoo - 2nd question. Why does SPY and its options not trade the same hours as /ES and their options? Seems like it exchanges would love it.

Around the Block: Tesla, Groupon and Qualcomm earnings this week. TSLA is very important for OX clientele.

Option Block 287: Trading Patterns

Trading Block: A mild rally on the street. Everyone is still playing the wait and see game after hours today with Apple.

Interview Block: Guest: Mark Greenstein, CTA with Orchard Grove joins the gang as they discuss metals, rates, as well as the VIX products.

Xpress Block: It is time once again for everyone’s favorite "The Trading Patterns" game!

Around the Block: Still more earnings around the bend. Apple - 10/28, EA Games - 10/29, General Motors - 10/30, LinkedIn - 10/29, Facebook - 10/30, Marriott - 10/30, Take Two - 10/29 & Nokia - 10/29.

Option Block 285: Listener Mail Extravaganza

Trading Block: Navigating post-shutdown markets.  VIX Cash giving up the ghost post-shutdown.  Google, another big after hours more last week. Netflix (aka the Widowmaker) rallying hard pre-earnings.  Tesla taking in on the chin.

Odd Block: Calls trade in Orbitz Worldwide, Inc. (OWW), large spread trades in iPath S&P 500 short term futures ETN (VXX), calls trade in Turquoise Hill Resources Ltd. (TRQ), and puts trade in China Ming Yang Wind Power (MY).

Xpress Block: No Viceroy today - Let's play the trading patterns guessing game!

Listener Mail Extravaganza:  Whoa!  We’ve got mail!

• Comment from Thepostguy “Not surprised by download volume”: Dear Option Block crew - Listening to the latest episode and hearing Mark's comment over the amount of downloaded hours of OB, this doesn't surprise me at all. This show is one of the very few sources of excellent option and industry content that I honestly cannot believe is free. The balance of viewpoints between each panelist brings a unique perspective that gives us great, actionable information. For myself, I work full-time and run a small side business. I managed to blow up an equity account in '08 and came to options as a way to balance the amount of risk to the 'market'. I find myself timing my evening walks to the length of your show content....if that is any indication of how this listener values your programs. When will the store be open that we can purchase our own fedora hats? Regards, Phil.
• Question from Jeremy - Hey Folks: Great show! Keep up the great work. Now that we have seen the success of Weeklies, do you think we will see Dailies? Or do you know how one could get exposure to daily expiration on such products as SPX? I noticed the CBOE has asked permission to start dailies, but I have not seen any product. I would expect the interest in such a product would be popular as the edge one might need to achieve to expiration can be smaller, but the end result compounded could be greater over a period of time if there are more opportunities to trade that position. Cheers, Jeremy
• Question from Meeshal: I trade index options on the Indian CNX Nifty Index (Bloomberg NIFTY: IND). Two weeks ago, with the Index at around 5300, I had sold 5800 calls expiring on the 26th of September. I did not sell the corresponding puts immediately as the market had run up over the past two days and I thought I could get a better rate if I waited a day or two. Since then, the market has run up some 11% and is currently trading at 5900. Two days ago, at around 5750, I bought back the 5800 September calls and sold the same number of 6000 October calls (expiring 31st October). Since then the price of the October calls has almost doubled. Would appreciate any ideas on how to get myself out of this mess. Thanks. P.S. Will share more details if needed.

Around the Block: Earnings! - Thursday is a big day with Southwest, Ford, Zynga, Microsoft, and Amazon. Apple on 10/28.