Your Inside Source for Options Information

June 18, 2018


Featured Interview

Options Insider Radio Interviews: Talking Options, Millennials, and Crypto with StockTwits

Posted November 16th, 2017

In this episode, Mark is joined by Ian Rosen, CEO of StockTwits.

They discuss:

  • Ian's history in the financial services industry
  • What is Stocktober Fest?
  • What's new from StockTwits?
  • Demographics of StockTwits users
  • Flattening the onramp to investing
  • What percentage of users are active options traders?
  • How many people are discussing crypto?
  • Bringing in new options traders
  • StockTwits users level of interest in crypto

Upcoming Economic Reports

A preview of what may move the market this week

TIME (ET) REPORT PERIOD PREVIOUS
MONDAY, JUNE 18
10:00 AM NAHB home builders' index June 70
TUESDAY, JUNE 19
8:30 AM Housing starts May 1.287mln
8:30 AM Building permits May 1.352mln
WEDNESDAY, JUNE 20
8:30 AM Current account Q1 -$128bln
10:00 AM Existing home sales May 5.46 mln
THURSDAY, JUNE 21
8:30 AM Weekly jobless claims 16-Jun --
8:30 AM Philly Fed June 34.4
10:00 AM Leading indicators May 0.40%
FRIDAY, JUNE 22
9:45 AM Markit manufacturing PMI (flash) June 56.4
9:45 AM Markit services PMI (flash) June 56.8

 


Options Insider Radio Network 

Episodes you may have missed from Options Insider Radio last week

Option Block 723: Live from the Pro Trader Summit

Posted June 15th, 2018

In this episode, the all-stars are live at the annual Option Pit Pro Trader Summit. Chaos, hilarity, and options discussion ensued.

 

Volatility Views 309: Vol Views Live from the Pro Trader Summit

Posted June 15th, 2018

This episode was recorded live at the Option Pit Pro Trader Summit. Andrew, Mark and Mark take the show on the road. Analysis, wit, and wisdom ensued.

 

Options Playbook Radio 213: Long Butterfly with Calls

Posted June 14th, 2018

This week we will look at a long butterfly with calls. You can find more on page 102 in The Options Playbook, which is always available on OptionsPlaybook.com, or on the Amazon Kindle edition.

Specifically:

  • A review from last week (diagonal spread with calls)
  • Staying in FedEx
  • Earnings! June 19'
  • Setting up the trade
  • Selecting strikes, expiration
  • What is the maximum risk? Reward?
  • What do we want to happen?
  • And more...

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.

 

Option Block 722: Prepare for the Meeting of the Minds

Posted June 12th, 2018

Trading Block: What is happening in the markets this week?

Odd Block: Funky closing spread in Owens Corning (OC), call love in BGC Partners, Inc. (BGC) and playing with house money in Beacon Roofing Supply (BECN).

Strategy Block: Uncle Mike Tosaw discusses Bitcoin/crypto future.

Mail Block/Options Question of the week

GoogleTrends 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 "sub region" is currently ranked 1 for overall "options" interest by Google?

  • 33% - Illinois
  • 23% - California
  • 32% - New York
  • 12% - Maine

Listener questions and comments:

  • Question from EAQ -Can you always rely on the bid ask spread when you're analyzing unusual options activity? Seems like that can be gamed?

Around the Block/This Week in the Market

  • Jun 12 - Consumer Price Index, Treasury Budget
  • Jun 13 - PPI, FOMC Meeting
  • Jun 14 - Jobless Claims, Retail Sales
  • Jun 15 - Industrial Production, Consumer Sentiment


Volatility Views 308: Forth the Vol Hunters

Posted June 11th, 2018

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

  • VIX Cash: 12.21 and as high as 13.30.
  • VVIX - 93
  • VIX Options - ADV: 535k, VIX call/put: 2.6/1, Total 7.95m (5.78m Calls, 2.17m Puts)
  • The return of the 1x2?
  • Plenty of call love yesterday
  • Paper sells call June vertical yesterday

Volatility Voicemail: 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?

  • 34% - Tesla, TSLA
  • 21% - VIX
  • 35% - Bitcoin
  • 10% - Russell 2000: E-mini, RUT

Listener questions and comments

  • Question from Lisag - I'm confused. Why would someone by such an outlandish vertical in a product that essentially rots to zero?
  • Comment from Kaijan - I would sell that VXX July call spread all day long. In fact I did! Thx for giving me the idea on your last show. Keep up the vol fun!
  • Question from Deville - Great show. How do I get my volatility fund profiled on Volatility Views?
  • Question from FNews2 - Do you think eliminating the traditional earning call would be a bad move for vol traders? I kind of take the view that it would smooth things out and make it a little less likely to get run over. Crazy?

Crystal Ball: Your prognostication headquarters

Last week:

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

This week:

  • Mark L. - 11.85
  • Andrew - 11.55


This Week in Futures Options 105: Ag Volatility Back in the Spotlight

Posted June 11th, 2018

Today's CME hot seat guests are Eric Baum, Senior Commodity Trader, and John Rothstein, Chief Operating Officer at Optiver US.

Topics this week include:

  • Ags
  • Corn
  • Soybeans
  • Equities/RVX
  • Crude/WTI

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?

  • 34% - Tesla, TSLA
  • 21% - VIX
  • 35% - Bitcoin
  • 10% - Russell 2000: E-mini, RUT

Listener questions and comments:

  • Question from Toni - I've been listening to TWIFO since the launch (along with Vol Views and Advisors Option). Thanks for so many hours of listening and learning. I think I have a problem with TWIFO though because you guys are slowly luring me to the "dark side" of Ag products. But I'm not really sure where to begin because I'm a complete novice when it comes to agriculture (mostly trade spy and single name equity options). Is there one product that you feel is the friendliest or the least intimidating for beginners? Also are there any good resources out there for budding Ag options traders?
  • Question from JLM54 - See a lot of talk about spreads between similar commodities (WTI/Brent spread, KC wheat / Chicago wheat). What about spreads between different commodities that may move in accordance to similar fundamentals? Is anyone tracking these relationships (WTI/Gold, Gold/10yr)? Are there any relationships you watch regularly that are outside the established intra-commodity spreads?


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: 11.93 - 12.94

  • S&P Cash Range: 2768.41 - 2790.86

  • SPX 30-Day Implied Volatility: 8.71

  • SPX 30-Day Realized Volatility:  9.32

  • SPX Risk Premium (30-Day Implied - Realized): -0.59

  • Market Risk Premium (VIX Cash - SPX 30-day Implied Volatility): 3.26


 

Strategy 101: Brought to you by Ally Invest

Options Playbook Radio 187: Huddle Up

Posted December 14th, 2017

Mark and Brian are back to answer listener questions. In particular:

  • Question from Ariell - Why should I ever buy puts? I can use a stop order in the stock for free and then put that extra capital to work in my trading account. By my math using stops instead of puts can boost your account 5-10% per year. That?s a lot of cheese.
  • Question from The Financial Grynch - Do you REALLY reckon long options is profitable?
  • Question from Lonesome - Could you explain Theta and how it helps/hurts options traders? Should anyone ever buy OTM options?
  • Question from Tom Matt - What happened to minis? Are they ever coming back?

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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