Articles from the Experts

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Option Block 253: Market Maelstrom

Trading Block: The broad indices were down over 2%. All red, all day. Fed will cut $85 billion in monthly bond purchases by $20 billion. VIX cash breaks through the 20-handle for the first time since December. Apple, Google, GLD and more!

Odd Block: Call combo unwinds in the CBOE Volatility Index (VIX) for big money, puts trade in Fleetcor Technologies (FLT), and puts trade in Contango Oil and Gas Co (MCF).

Xpress Block: It's about time for an Alex Jacobson-style rant.  This is a market for options!

Strategy Block: It's a two-for day in the strategy block: Risk vs. margin and being long-term bullish but short-term cautious.

Around the Block: Will there be more selloff in the future? Should we keep the power dry going into the weekend?

Option Block 252: The Dangers of Covered Straddles

Trading Block: Market rallies ahead of the Fed, but lost steam in the late session. Gold selloff ahead of the Fed.

Odd Block: Puts trade in PVR Partners, LP (PVR), calls trade in Insmed Incorp. (INSM), and puts trade in UltraShort Real Estate Proshares (SRS)

Xpress Block: Netflix moves over $15, but otherwise, not a very exciting trading day

Listener Mail: The floor belongs to the listeners.

Question from Dalton Hicks - I’ve just discovered this show and I think it's fantastic. Thanks for all of your great material. I've learned quite a bit. I wanted to write in today to ask about the new strategy I've stumbled upon in my trading.  I used to be a covered call seller in individual equity options. But I've recently started thinking about kicking this up a notch by turning into a "covered straddle seller." This strategy has many benefits over a traditional covered call. I’ve never heard this approach discussed on this program (at least in the recent episodes that I've heard), so I'd like the host's take on this exciting new strategy.

Around the Block: Waiting for Bernanke.

Option Block 251: Insider Trading, Options-Style

Trading Block: Is the VIX going backwards? The rally has returned. Jobless claims fall by 12,000, sparking the rally.  An insider trading case involving options. “For the first time since its inception, high-frequency trading, the bogey machine of the markets, is in retreat.” VXX options hit record open interest. Exchanges finally subject to fines for misconduct.

Odd Block: Unwinding in Dole Food Company, Inc. (DOLE), calls trade in Monster Worldwide Inc. (MMW), and spreads trade in Sangamo Biosciences Inc. (SGMO)

Xpress Block: United Airlines showcased in the Idea Hub today. Updates on the Walk Limit.

Mail Block: Keep those questions coming.

  • Question from Jillian T. - Why is it so difficult to crack down on insider trading in options?
  • Question from Doug K, Halifax, Nova Scotia - I’ve been long spy shares for much of the recent rally. Now I'm more than a little concerned. I've learned about collars through the great shows on this network. Do you think this is a good environment to consider a zero cost collar? Is a spy put/put spread a better option? Or would you recommend something else entirely? Thanks for all of your insight over the years.
  • Question from T-Bill - Does OX defer commissions when I close out short options for pennies?

Around the Block: Markets are thin for the summer. A lot more 1% movement days in our near future.

Option Block 250: Goldilocks Non-Farms Numbers

Trading Block: It was a quiet day on the market. Non-farms announcement came out last Friday.  What are some trading ideas following a large event like this?

Odd Block: Calls trade in Linhas Aereas Inteligent (GOL), puts trade in Celldex Therapeutics Inc. (CLDX), and put spreads trade in Southern Copper Co. (SCCO).

Xpress Block: S&P changed the outlook on U.S. debt from negative to stable. How could this have an effect on the 10-year?

Around the Block: What economic impact could the flood in Europe have on the market? Earnings are only five weeks away.

Option Block 249: Great Expectations

Trading Block: Another schizophrenic day on the street. McDonald's announces some 24-hr stores will serve breakfast after midnight. The Zynga apocalypse! A big move in Apple.

Odd Block: Calls trade in Savient Pharmaceuticals Inc. (SVNT), a collar unwinds in DOLE Food Company (DOLE), and call spreads trade in Tessera Technologies Inc. (TSRA).

Xpress Block: What's new in the Idea Hub, weeklies, etc?

Listener Mail: In which you, the listener, take over the program.

Question from John King ‏@jking321: Have you read Schaeffer’s theory that Friday selloff due to delta hedging by SPY put sellers?

Around the Block: Non-Farms. Non-Farms. Non-Farms! It will be the biggest event on Friday.

Option Block 248: The Ice Is Always Melting

Trading Block: It was a bit of a head scratcher today, as an infusion of end-of-day buying threw a wrench into the machine. Disappointing ISM numbers, putting a laser focus on the jobs numbers out Friday. Market share and volume day with overall total options volume up 3% in May.

Odd Block: Very near-term bullish play in Iron Mountain Inc. (IRM), sizable spread trade in WisdomTree Japan Hedged Equity Fund (DXJ), and put spread trades in Corning Inc. (GLW).

Xpress Block: Fanny Mae, Tesla, Zynga and the 10-year lighting up the tape. The Apple minis have finally gotten some traction.

Strategy Block: In today's strategy block, Mike Tosaw discusses the use of margin and if it makes sense.

Around the Block: Forget the earnings, the employment report is coming up, expect big volume.

Option Block 247: The Confidence Trade

Trading Block: The rally continues with interest rates and bonds hot. Looking forward to the 10-year VIX from the CME. Tesla breaks 100. Will the hype never end? Ford breaks $16.

Odd Block: Collars closes in Approach Resources Inc. (AREX), and big call purchase in T-Mobile USA (TMUS).

Xpress Block: Alex discusses what's been lighting up the desk at OX and the Idea Hub.

Listener Mail: What questions do you have for the all-stars?

  • Question from Tom Finn: what does the option block all-star panel think of NYT’s recent attack on options?
  • Question from Bill Heter, Cape Cod, MA - what is the difference between a collar and a bearish risk reversal?
  • Question from d_sub: have you guys ever experienced opportunities to buy verticals for even or a credit?

Around the Block: Interest rates. Employment report next week.

Option Block 246: Jump on the Boat with the 10-Year Note

Trading Block: CBOE/CME launches a new 10-year treasury VIX. It is the first volatility index based on U.S. government debt to be calculated and disseminated by CBOE. CBOE stock hits $40 on its 40th anniversary. CRM & MRVL earnings after the bell.  TSLA - hard to short stock, bears turning to puts. MSFT - is there no love for the new Xbox One?  GME – could the new could Xbox wipe out the lucrative grey market for used games? GME is the leading liquidity provider. Vol is creeping back into Ford - stock had a nearly $.60 range today, up sharply over the past few aweeks.

Odd Block: Calls trade in Halozyme Therapeutics Inc. (HALO), Ratio put spreads trade in Alerian MLP (AMLP), and combos trade in Warner Chilcott ltd (WCRX)

Xpress Block:  A lot of names, including the 10-year, lighting up the phones at OX. The June condor in the SPX, an example off of the Idea Hub.

Strategy Block: Mike Tosaw discusses "nimbility" - the ability to be nimble. It's very important to be nimble when trading, and not get locked in a specific strategy.

Around the Block: Holiday weekend. Don't forget to watch out for the weekend! Market should be very thin tomorrow.

Option Block 245: Golden Tickets & Oompa Loompas

Trading Block: It was an unchanged day on the street with stocks hovering around record highs. Does this rally have legs, or are we poised for a collapse? There was a weird dip in SPX on Friday night due to APC. Jumbo SPX is a flop so far. Only 18 contracts have traded through the middle of last week.  Everyone is still refusing to list it.

Odd Block:Calls trade in Navios Maritime Holdings Inc. (NM), calls trade in Foster Wheeler Ltd (FWLT), and calls trade in Big Lots Inc. (BIG).

Xpress Block: Alex talks some more about the Trading Patterns Tool from OX, and what its most active trades have been recently.

Listener Mail: What do you want to know?

  • Question from Douggie_L: Why all the fuss with Jumbo SPX? Why won't others trade it?
  • Question from Montevecchio: I'm starting to learn about time spreads. Can you guys explain roll risk and how it can impact me?

Around the Block: A holiday this upcoming weekend. Watch out for the theta gremlins creeping into your portfolio.

Option Block 244: Car Talk

Trading Block: It was down day on the markets. A lot of political news came out of Syria late in the day. Could Tesla be Apple 2.0?

Xpress Block: Alex talks about the OX feature "Trading Patterns," which lets you look at what underlyings people traded in the OX environment. Available to most OX customers.

Strategy Block: Mike Tosaw discusses what we've been seeing in the market. Rallies in the market, staying long-term bullish but short-term cautious and collar strategies.

Around the Block: Earnings coming out soon: DELL, JCP and HP. A bit more stability in interest rates. Watching Apple, of course.

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