Your Inside Source for Options Information

May 7, 2018


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Upcoming Economic Reports

A preview of what may move the market this week

TIME (ET) REPORT PERIOD FORECAST PREVIOUS
MONDAY, MAY 14
  None scheduled      
TUESDAY, MAY 15
3:15 AM Jerome Powell speech      
8:30 AM Retail sales April 0.40% 0.60%
8:30 AM Retail sales ex-autos April 0.60% 0.30%
8:30 AM Empire state index May -- 15.8
10:00 AM Home builders' index May -- 69
10:00 AM Business inventories March -- 0.60%
WEDNESDAY, MAY 16
8:30 AM Housing starts April 1.287mln 1.319mln
8:30 AM Building permits April -- 1.379mln
9:15 AM Industrial production April 0.60% 0.50%
9:15 AM Capacity utilization April 78.50% 78.00%
THURSDAY, MAY 17
8:30 AM Weekly jobless claims 12-May 215,000 211,000
8:30 AM Phily Fed index May -- 23.2
10:00 AM Leading economic indicators April -- 0.30%
FRIDAY, MAY 18
10:00 AM Advance services Q1   --

 


Options Insider Radio Network 

Episodes you may have missed from Options Insider Radio last week


Options Insider Radio Interviews: Talking Options and Market Data with Burton-Taylor

Posted May 11th, 2018

When Mark was in Florida for the 2018 Options Industry Conference, he had a chance to sit down with Andy Nybo, Director at Burton-Taylor International Consulting.

They discussed:

  • What does market data research entail?
  • Sifting through the dearth of market data
  • The growth in the need for data
  • How to define liquidity
  • Thoughts on auctions
  • What about the number of exchanges?
  • And more...


Option Block 714: Talking VXX, NVDA and VIX

Posted May 11th, 2018

Trading Block: Earnings!

  • Thursday - Nvidia
  • NVDA - ATM straddle: 17, approx. 6.5%

Odd Block: More Jan 2019 50 "catastrophe" put in Tesla Motors (TSLA). Crazy option palooza in Helios and Matheson Analytics (HMNY). Line in the sand puts in HP Inc. (HPE). Call trade in Nabors Industries Ltd. (NBR).

Mail Block: Options Question of the Week

VIX is back in the mid-teens but the Volatility space is hotter than ever. This is breathing new life into old Volatility products as they try to elbow their way into the VIX spotlight. Which do you think has the best chance of hitting it big with traders?

  • 23% - RealVol- S&P Realized Vol
  • 16% - VolDex -S&P ATM Vol
  • 29% - Spikes- aka SPY VIX
  • 32% - None: There's Only 1 VIX

Around the Block/Economic Reports:

  • May 11 - Import and Export Prices, Consumer Sentiment

 

Options Insider Radio Interviews: Exploring How to Help Options Market Makers with OCC

Posted May 11th, 2018

When Mark was in Florida for the 2018 Options Industry Conference, he had a chance to sit down with John Davidson, President and Chief Operating Officer at OCC.

They discussed:

  • John's tenure in the financial services industry
  • The function of being a clearinghouse
  • Technical upgrades on the horizon
  • The nuts and bolts of clearing
  • The symbology initiative
  • Issues with liquidity
  • Working with Washington
  • And more...

 

Options Insider Radio Interviews: Talking Options Trading Floors with BOX

Posted May 8th, 2018

In this episode, Mark is live at the 2018 Options Industry Conference where he sat down with Ed Boyle, CEO at BOX.

They discuss:

  • Update on the BOX trading floor
  • What's trading on the BOX trading floor?
  • What's the theme of the 2018 Options Industry Conference?
  • What can be done about the liquidity issue?
  • How to mitigate risk for liquidity providers?
  • Thoughts on auctions
  • The number of exchanges
  • After hours options trading
  • The demand for new products

 

Option Block 713: More Mystery Option Paloozas

Posted May 8th, 2018

Trading Block: What's moving the options market?

  • Options Volume for April: OCC announced that total cleared contract volume in April reached 405,853,179 contracts, a 27% increase from April 2017 volume of 320,547,848 contracts and marking the highest April on record.

Earnings!

  • Tuesday - The Walt Disney Company
  • Thursday - Nvidia

Odd Block: Bullish paper opening in Coty Inc. (COTY). Rolling calls in Marathon Oil Corporation (MRO). Near ATM earnings calls in Amicus Therapeutics, Inc. (FOLD).

Strategy Block: Uncle Mike Tosaw discusses when it might be better to use verticals or diagonal/calendars.

Around the Block/Economic Reports:

  • May 8: JOLTS
  • May 9: PPI
  • May 10: Jobless Claims, Consumer Price Index, Treasury Budget
  • May 11: Import and Export Prices, Consumer Sentiment

 

Options Insider Radio Interviews: Talking Options, Volatility and More with Credit Suisse

Posted May 8th, 2018

In this episode, Mark is live at the 2018 Options Industry Conference where he sat down with Pat Luongo, Director of AES Options Sales at Credit Suisse.

They discuss:

  • Pat's history in the options industry
  • Who are their customers?
  • Welcoming back volatility
  • Correcting liquidity concerns
  • Fragmentation of trading venues
  • Stemming the tide of losing liquidity providers
  • After-hours options trading
  • And more

 

Options Insider Radio Interviews: Talking Options with Raymond James

Posted May 7th, 2018

In this episode, Mark is live at the 2018 Options Industry Conference where he caught up with Gary Franklin, Vice President of Retail Options Trading and Strategies at Raymond James.

They discuss:

  • What brought Raymond James to the Options Industry Conference?
  • The evolution of interest in options for advisors
  • Clients driving demand for options growth
  • Demystifying options
  • How has the increase in volatility impacted their clients?
  • And more...

 

Options Insider Radio Interviews: What Options Traders Can Expect from E*Trade

Posted May 7th, 2018

In this episode, Mark is live at the 2018 Options Industry Conference where he caught up with Chris Larkin, Senior Vice President of Trading Product at E*Trade.

They discuss:

  • The acquisition and integration of Options House and E*Trade platforms
  • Rebuilding the platform from the ground up
  • Lowering the barrier to entry for new options traders
  • What percentage of trades happen on mobile devices?
  • Increasing the community offering
  • Addressing the liquidity issue
  • What about after hours options trading?
  • And more.

This Week in Futures Options 41: Time for a Little Hog Love

Posted May 7th, 2018

Originally Posted February 20th, 2017

Topics this week include:

  • WTI Skew
  • Crude vol
  • Eurodollars
  • Lean Hogs

Futures Options Feedback: Listener questions and comments

  • Question from Tom Rios - How has Mexico threatening to buy corn from Brazil and Argentina, rather than the US, impacted corn volatility?
  • Question from McTinney - Hello to the TWIFO team and guest! Can you give a little more color on the longer term calls you outlined in gold options last show? Is this the beginning of a trend or just a blip on the radar? Any similar action in silver? Thanks for the show.
  • Comment from Jim Church - I like the rent concept. Was that Nick or Mark's idea? I think it should be a regular segment. Maybe "Who's paying the rent this week?"

 

Best of Volatility Views 191: Earnings Apocalypse

Posted May 7th, 2018

Originally Posted February 8th, 2016

Volatility Review: CBOE to list SPX Wednesday-expiring weeklys options. CBOE to begin overnight dissemination of CBOE Volatility Index (VIX).

  • VIX Options: Total 5.81m (3.93m Calls, 1.88m Puts)
  • Earnings Volatility: LNKD after the bell: ATM straddle = $22, approx. 11.5%, after-hours move approx. $50.
  • Crude Oil: Wall St. fluctuates as equities track oil prices. Is oil driving the stock market? And should traders care?

Volatility Voicemail: Listener questions and comments

  • Question from GBL - Stock splits are seen to be greatly beneficial to options volume. But do they also decrease volatility, which should hurt options trading?

Around the Block: Prognosticating. Wild and reckless prognosticating.


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: 12.38 - 15.36

  • S&P Cash Range: 2661.09 - 2732.83

  • SPX 30-Day Implied Volatility: 9.82

  • SPX 10-Day Realized Volatility: 11.13

  • SPX 30-Day Realized Volatility:  15.49

  • SPX Risk Premium (30-Day Implied - Realized): -5.67

  • Market Risk Premium (VIX Cash - SPX 30-day Implied Volatility): 2.83


 

Strategy 101: Brought to you by Ally Invest

Options Playbook Radio 182: FB Ratio Put Spread

Posted November 2nd, 2017

Today we are going to look at a ratio spread with puts on FB.

In this episode:

  • A review of last week's skip-strike butterfly in AMZN.
  • What was the strategy? Expectation?
  • Where is AMZN now?
  • What about GOOGL?
  • How do you want the market to move when you have a butterfly position?
  • FB earnings are coming up. Let's look at a ratio spread.
  • What is the outlook?
  • Setting up the trade.
  • Selecting strikes.
  • What is the cost?
  • What do we want to happen?
  • What is the cost?
  • Remember volatility.

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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