Your Inside Source for Options Information

June 11, 2018


Featured Interview

Options Insider Radio Interviews: Exploring the Future of Bitcoin with CBOE

Posted September 11th, 2017

In this episode, Mark is joined by Michael Mollet, Director of Product Development at CBOE and CFE.

They discuss:

  • Bitcoin and the potential for listed derivatives
  • What is the proposal?
  • Why now?
  • Partnering with Gemini
  • What exactly is the product they plan to launch?
  • How is settlement determined?
  • What is the timing on releasing this product?
  • Will there be Bitcoin options?
  • What about a Bitcoin VIX?
  • What about other cryptocurrencies?
  • What else is on the CFE horizon?

Upcoming Economic Reports

A preview of what may move the market this week

TIME (ET) REPORT PERIOD PREVIOUS
MONDAY, JUNE 11
11:00 AM Survey of consumer expectations    
TUESDAY, JUNE 12
6:00 AM NFIB small-business index May 104.8
8:30 AM Consumer price index May 0.20%
8:30 AM Core CPI May 0.10%
2:00 PM Federal budget May  
WEDNESDAY, JUNE 13
8:30 AM Producer price index May 0.10%
2:00 PM FOMC announcement    
2:30 PM Jerome Powell press conference    
THURSDAY, JUNE 14
8:30 AM Weekly jobless claims 2-Jun N/A
8:30 AM Retail sales May 0.30%
8:30 AM Retail sales ex-autos May 0.30%
8:30 AM Import price index May 0.30%
10:00 AM Business inventories April 0.00%
FRIDAY, JUNE 15
8:30 AM Empire state index June 20.1
9:15 AM Industrial production May 0.70%
9:15 AM Capacity utilization May 78.00%
10:00 AM Consumer sentiment index June 98

 


Options Insider Radio Network 

Episodes you may have missed from Options Insider Radio last week

Option Block 721: The Trade Hawks

Posted June 8th, 2018

Trading Block: Earnings!

Odd Block: Size opening puts in Banco Bradesco (BBD), Size opening call sale in Analog Devices, Inc. (ADI).

Mail Block: Options question of the week

Google Trends is full of interesting, and surprising, data. When you analyze the "options" search data you uncover some surprising results. Which brings us to this week's question: Which "subregion" is currently ranked one for overall "options" interest by Google?

  • Illinois
  • California
  • New York
  • Maine

Flash Poll: Let's stick with our Volatility theme to round out the week. Quite simply - which product do you think has the highest 30-day implied Volatility? No cheating (or checking with your broker)! What does your gut tell you? VIX? Bitcoin? TSLA? RUSSELL2000? RUT? IWM?

  • Tesla, TSLA
  • VIX
  • Bitcoin
  • Russell 2000: Emini, RUT

Listener questions and comments:

  • Comment from Till - I'm looking forward to the rock lobster's ongoing webinar series on Asian options.
  • Question from DollClub - How do you price ratio spreads. If it's a long 1x2 do you just multiply the cost of the second leg by 2 and then subtract it from the long leg? Is it just that simple?
  • Question from Division1 - Why has there never been a cool trading video game? Options or stocks I don't care. Maybe Insider should do it?

Around the Block: What's on the radar for next week?

 

Options Playbook Radio 212: Diagonal Trades in FedEx

Posted June 7th, 2018

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.

 

Options Insider Radio Interviews: Talking API vs Front Ends with FlexTrade

In this interview, Mark is joined by Rob Brogan, Vice President of Equity Derivative Servies at FlexTrade. They discuss: Monitoring real-time risk APIs vs front end The fight for screen space Liquidity issues Too many strikes, too few trades And more...

Posted June 6th, 2018

In this interview, Mark is joined by Rob Brogan, Vice President of Equity Derivative Servies at FlexTrade.

They discuss:

  • Monitoring real-time risk
  • APIs vs front end
  • The fight for screen space
  • Liquidity issues
  • Too many strikes, too few trades
  • And more...

 

Option Block 720: Options Volume and Skew Breakdown

Posted June 5th, 2018

Trading Block: Last week in review

  • Is the trade war back on the table?
  • The May number are in: OCC cleared contract volume increased 8% in May.
  • Credit Suisse announces 1-to-10 reverse split for $TVIX and $TVIZ effective June 8th.

Odd Block: Ratio call spread in Melco Resorts & Entertainment (MLCO), put apocalypse in Nektar Therapeutics (NKTR), and put roll in iShares MSCI Turkey Index Fund (TUR).

Strategy Block: Uncle Mike Tosaw discusses how to trade skew.

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

 

Options Insider Radio Interviews: Talking Crypto Options, Volatility and More with Cboe

Posted June 5th, 2018

In this episode, Mark is joined by Kapil Rathi, Head of Equity Options at Cboe.

They discuss:

  • How many exchanges are too many exchanges?
  • Is it time to review the regulatory environment?
  • Liquidity issues
  • Limiting the live order book
  • SPY volatility products
  • After-hours options trading
  • Listing crypto options
  • And more...

 

Volatility Views 307: Where Are 50 Cent and the VIX Whale?

Posted June 4th, 2018

Volatility Review: A look back at the week from a volatility perspective

  • VIX Cash - 15.43, 3 points higher than last week.
  • VVIX - 95, 5 points higher than last week.
  • VIX Options - ADV: 557k (substantially lower than last show), VIX call/put: 2.8/1, Total 7.00m (5.14m Calls, 1.85m Puts)
  • What about the roll from June to July 37.5?
  • VXX - 35, 1 point lower than last week.
  • Paper buys size VXX July call spread.
  • VIX-mageddon revisited: it's the buyers who disappeared

Volatility Voicemail: Options question of the week

Holiday Weekends are notoriously tough for VIX traders. The markets love to crush Volatility going into these events. So we thought we'd poll the savvy VIX traders in our audience - where do you think VIX will OPEN on Tues 5/29?

  • 39% - Here: 12-14
  • 30% - Higher: 14-16
  • 18% - Lower: 10.5-12
  • 13% - Much Higher: >16

Flash Poll: Let's stick with our Volatility theme to round out the week. Quite simply - which product do you think has the highest 30-day implied Volatility? No cheating (or checking with your broker)! What does your gut tell you? VIX? Bitcoin? TSLA? RUSSELL2000? RUT? IWM?

  • Tesla, TSLA
  • VIX
  • Bitcoin
  • Russell 2000: Emini, RUT

Listener questions and comments:

  • Comment from Charles Montgomery Burns releasethehounds -I enjoyed listening to the broadcast today. Excellent
  • Question from Ned Brown - I wish it was made clear in these articles that the problem seems to be around settlement in the VIX. A good idea on orders to bring more liquidity into the settlement. I assumed the big volatility was the reason crypto options weren't being pushed. Has anyone asked the SEC about them?
  • Question from Bellat - What do you think of crypto Vol at these levels particularly bitcoin? Are you guys doing any trading even though there aren’t really any true options available yet?
  • Question from Pilz - Did we ever uncover the mystery behind 50 cent?

Crystal Ball: Your prognostication headquarters

Last week:

  • Mark L. -12.95
  • Mark S. -13.50

This week:

  • Mark L. -12.95
  • Mark S. - 12.50

 

This Week in Futures Options 104: Tariff Battles Drive More Volatility

Posted June 4th, 2018

Topics this week include:

  • WTI/Crude
  • Gold
  • Equities
  • Ags/Soybeand
  • Rates
  • Crypto

Futures Options Feedback: Flash Poll!

Let's stick with our Volatility theme to round out the week. Quite simply - which product do you think has the highest 30-day implied Volatility? No cheating (or checking with your broker)! What does your gut tell you? VIX? Bitcoin? TSLA? RUSSELL2000? RUT? IWM?

  • Tesla, TSLA
  • VIX
  • Bitcoin
  • Russell 2000: Emini, RUT

Listener questions and comments:

  • Question from Ned Brown -You had a guest on a few weeks back and he mentioned what he thought Bitcoin volatility would be on the options. You would think it would be an instant winning product. I've always thought the tricky part is finding the market makers to provide the liquidity...I assumed the big volatility was the reason crypto options weren't being pushed. Has anyone asked the SEC about them?
  • Question from BB88 -How do I do what Nick said last week to see the options activity on that day's expiring future?

 


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: 11.66 - 13.54

  • S&P Cash Range: 2741.67 - 2779.23

  • SPX 30-Day Implied Volatility: 8.80

  • SPX 30-Day Realized Volatility:  10.00

  • SPX Risk Premium (30-Day Implied - Realized): -1.2

  • Market Risk Premium (VIX Cash - SPX 30-day Implied Volatility): 3.38


 

Strategy 101: Brought to you by Ally Invest

Options Playbook Radio 186: Broadcomm Skip-Strike Butterfly

Posted December 7th, 2017

In this episode, we revisit an old favorite: the 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:

  • Broadcomm announces earnings soon, and has been very volatile lately
  • Why a skip-strike butterfly?
  • What is the outlook?
  • Selecting strikes
  • What is the cost?
  • What about the maximum gain? Loss?

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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