Your Inside Source for Options Information

February 26, 2018


Featured Interview

A favorite interview from Options Insider Radio 

Options Insider Radio Interviews: Talking Market Data and Surveillance with LiveVol

Posted May 13th, 2016

Coming to you live from the 2016 OIC Conference, Mark is joined by Catherine Clay, Vice President of Business Development for CBOE LiveVol. They discuss:

  • Becoming part of the CBOE family
  • What is LiveVol?
  • What is the Data Shop?
  • What was the driver to create the Data Shop?
  • Where is the demand for data going forward?
  • What does LiveVol have to offer for surveillance?

 


Upcoming Economic Reports

A preview of what may move the market this week

TIME (ET) REPORT PERIOD FORECAST PREVIOUS
MONDAY, FEB. 26
8:30 AM Chicago Fed national activity index Jan. -- 0.27
10:00 AM New home sales Jan. 650,000 625,000
TUESDAY, FEB. 27
8:30 AM Durable goods orders Jan. -2.50% 2.80%
8:30 AM Core capital equipment orders Jan. -- -0.60%
8:30 AM Advance trade in goods Jan. -$72.4bln -$72.3 bln
9:00 AM Case-Shiller home prices Dec. -- 6.20%
10:00 AM Consumer confidence index Feb. 126.8 125.4
10:00 AM Jerome Powell testimony      
WEDNESDAY, FEB. 28
8:30 AM Gross domestic product Q4 2.50% 2.60%
9:45 AM Chicago PMI Feb. -- 65.7
10:00 AM Pending home sales Jan. -- 0.50%
THURSDAY, MARCH 1
8:30 AM Weekly jobless claims Feb. 24 226,000 222,000
8:30 AM Personal income Jan. 0.30% 0.40%
8:30 AM Consumer spending Jan. 0.30% 0.40%
8:30 AM Core inflation Jan. 0.30% 0.20%
9:45 AM Markit manufacturing PMI Feb. -- 55.5
10:00 AM ISM manufacturing index Feb. 58.80% 59.10%
10:00 AM Construction spending Jan. 0.30% 0.70%
10:00 AM Jerome Powell testimony      
Varies Motor vehicle sales Feb. 17.2 mln 17.1 mln
FRIDAY, MARCH 2
10:00 AM Consumer sentiment Feb. 99.5 99.9



Options Insider Radio Network 

Episodes you may have missed from Options Insider Radio last week

Option Block 693: Back in the Saddle Again

Posted February 23rd, 2018

Trading Block:

  • Half-time report for earnings:
  • INTU - $173, ATM straddle - $10.50, approx. 6%
  • GDDY - $55.45, ATM straddle - $4.30, approx. 7.8%

Odd Block:

  • More Jan 2019 50 "Catastrophe" puts in Tesla Motors Inc.
  • Puts roll in iShares S&P 500 Index Fund (XSP)
  • Size 1x2s in ILG Inc. (ILG)

Strategy Block:Mike Tosaw discusses the 1x2 ratio call spread

Around the Block: What are we looking at for the upcoming week?

 

Options Playbook Radio 197: PCLN Skip-Strike Butterfly

Posted February 22nd, 2018

As we enter the end of earnings season, there are still a few big names left to report, including Priceline, PCLN. This is an interesting opportunity for a skip-strike butterfly. You can find more on page 108 of The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • Earnings + expiration + implied volatility = interesting situation
  • Goal: do the trade for a net credit
  • PLCN announces earnings on 2/27
  • What is the expected move?
  • What is the implied volatility?
  • Selecting the strikes
  • Remember commissions!
  • What's the risk? Reward?
  • When to get out?

Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.

 

Advisors Option 64: Looking Back on the Apocalypse

Posted February 20th, 2018

The Buzz:

 

This Week in Futures Options 91: Unpacking a Wild Week

Posted February 19th, 2018

Topics this week include:

  • eMini S&P
  • WTI/Crude
  • Gold
  • Bitcoin

Futures Options Feedback: What is on your mind?

  • Question from Scott Somer?: The question I have is, How is the call skew between the July 450 puts and the 550 calls in July Wheat? And how far does call skew get when the markets are in FULL WEATHER mode?
  • Question from Chill Bill: Are there any inverse commodity volatility products?

 

Volatility Views 294: Can We Breathe Again?

Posted February 19th, 2018

Volatility Review: VIX Cash is back in the teens. Are VIX Futures returning to contango? Volatility's awakening spurs a record long position in VIX Futures.

Kevin's Weekly Rundown:

  • VIX Options: ADV - 983k, VIX call/put: 2.3, Total 10.6m (7.30m Calls, 3.26m Puts)
  • The VIX Whale finally gets his payday
  • The great inverse volatility ETP debate continues.

Volatility Voicemail: Options question of the week

It's been a rocky week for the markets. People are understandably scared and confused. That raises the question: Which product are you most concerned about over the next 30 days? Aka - which product would you not touch with a 10-foot pole?

  • VIX
  • SVXY
  • SPY
  • Bitcoin: XBT, BTC, etc.

Listener questions and comments:

  • Question from Volbug: Mark and friends, now that SVXY has been reset or beaten, would another big VIX surge day have the same impact on it? Thanks.
  • Comment from Pete Yarbro? - I feel like I have a better understanding of $VIX, $VX and the volatility ETFs than some very high profile stock market commentators, and all I do is listen to a podcast. @Options @OptionPit @OptionVol
  • Comment from Dog Shogun - Vol Views rules
  • Comment from Olivetrader2 - It's amazing what you can learn from podcasts. I am not sure I want to tell everybody though

Crystal Ball: Back to wild and reckless prognostication

Next week:

  • Mark L. - 17.55
  • Mark S. - 16
  • Kevin - 19

 


Where to Find Options Insider Radio?

Do you know all the ways you can access Options Insider Radio

          


Options Insider Radio Network Live Recordings

Do you want to be a part of the fun?

This is when you can access the LIVE shows this week:

Monday:

Option Block LIVE at 3pm Central


Thursday:

Option Block LIVE at 3pm Central


Friday:

Volatility Views LIVE at 12pm Central

This Week in Futures Options LIVE at 1:30 Central. As always, you can join in the fun at http://mixlr.com/options-insider/


Stats from Last Week

  • VIX Cash Range: 16.47 - 21.34

  • S&P Cash Range: 2697.77 - 2747.76

  • SPX 30-Day Implied Volatility: 11.95

  • SPX 10-Day Realized Volatility: 13.67

  • SPX 30-Day Realized Volatility:  21.15

  • SPX Risk Premium (30-Day Implied - Realized): -10.20

  • Market Risk Premium (VIX Cash - SPX 30-day Implied Volatility): 4.54


 

Strategy 101: Brought to you by Ally Invest

Options Playbook Radio 173: Understanding the Greeks, Part One

Posted August 31st, 2017

Now that earnings season is over it's time to get back to basics: the Greeks. You can find an entire chapter on Greeks in The Options Playbook. This is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

In this episode:

  • A review of last time
  • Using the Greeks
  • What does a delta do?
  • Meet the Greeks in The Options Playbook
  • As expiration approaches, what happens to delta? For that, you need gamma
  • What about theta?
  • Delta when a contract is in-, at- or out-of-the-money
  • Delta moves slower than other Greeks
  • You can't have slow time decay on a fast moving option

Do you have questions that you would like answered on the show? Send them to Brian at theoptionsguy@invest.ally.com.


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