Your Inside Source for Options Information

July 16, 2018


Featured Interview

Options Insider Radio: Talking Vega Blocks, Complex Spreads and Delta Hedges with Flextrade

Posted June 23rd, 2014

Options Insider Radio: Talking Vega Blocks, Complex Spreads and Delta Hedges with Flextrade

In this episode, Mark is joined by Rob Brougan, Vice President of option sales at FlexTrade.

They discuss:

  • What FlexTrade does, and who their clients are
  • Their volatility-oriented products
  • How customers are using their vol products
  • Rob’s reaction to Flash Boys
  • Mini options and the lack of adoption
  • What’s on Rob’s radar?
  • And more

 


Upcoming Economic Reports

A preview of what may move the market this week

TIME (ET) REPORT PERIOD FORECAST PREVIOUS
MONDAY, JULY 16
8:30 AM Retail sales June 0.50% 0.80%
8:30 AM Retail sales ex-autos June 0.30% 0.90%
8:30 AM Empire state index July -- 25
10:00 AM Business inventories May -- 0.30%
TUESDAY, JULY 17
9:15 AM Industrial production June 0.60% -0.10%
9:15 AM Capacity utilization June 78.30% 77.90%
10:00 AM Jerome Powell testimony      
10:00 AM Home builders' index July -- 68
WEDNESDAY, JULY 18
8:30 AM Housing starts June 1.312 mln 1.350mln
8:30 AM Building permits June -- 1.301mln
10:00 AM Jerome Powell testimony      
2:00 PM Beige book      
THURSDAY, JULY 19
8:30 AM Weekly jobless claims 14-Jul 220,000 214,000
8:30 AM Philly Fed July 22 19.9
10:00 AM Leading economic indicators June -- 0.20%
FRIDAY, JULY 20
  None scheduled      

 


Options Insider Radio Network 

Episodes you may have missed from Options Insider Radio last week

Option Block 730: VIX vs the Negative Zone

Posted July 13th, 2018

Trading Block: Earnings!

  • Tuesday - PepsiCo
  • Thursday - Delta Airlines
  • Friday - JPMorganChase, Citi, Wells Fargo, PNC Bank

Plus, crude is taking it on the chin this week.

Odd Block: Call love in D.R. Horton Inc. (DHI), call vertical in PagSeguro Digital Ltd (PAGS), put/call palooza in Materials Select Sector SPDR (XLB).

Strategy Block: Uncle Mike Tosaw discusses premium buying vs selling.

Mail Block: Options question of the week

Options during earnings season can be challenging. Some live for it while others avoid it. Do you hold options positions through earnings announcements? If so, what is your approach? Or do you prefer to trade just before/after the event? Or is it all too risky?

  • Yes, Short Premium
  • Yes, Long Premium
  • No, Too Risky
  • I trade around the event

Around the Block/This Week in the Markets:

  • Jul 13 - Import and Export Prices, Consumer Sentiment

 

Options Playbook Radio 216: NFLX Earnings Skip-Strike Butterfly

Posted July 12th, 2018

We are back into earnings season. Let's take a look at a skip-strike butterfly in NFLX. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • A review of the Boeing calendar spread from last time
  • What happened since the paper trade was put on?
  • Looking ahead to NFLX earnings
  • Where is NFLX now?
  • What is the expected move?
  • What happens if we are wrong?
  • What is the maximum return? Reward?

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 729: Market Loves a Trade War

Posted July 10th, 2018

Trading Block: The trade war scares no one??

Earnings:

  • Tuesday - PepsiCo
  • Thursday - Delta Airlines
  • Friday - JPMorganChase, Citi, Wells Fargo, PNC Bank
  • SPX is celebrating its 35-year anniversary.

Odd Block: Rolling put spread in iShares Russell 2000 Growth Index (IWO), vertical roll in Endo International PLC (ENDP) and small verticals in Amgen, Inc. (AMGN)

Mail Block: Listeners have their say

Options question of the week: Traders generally fade volatility going into holidays (today notwithstanding). What's your favorite vehicle when you want to wager on the dark side of volatility? Short-term or Long-term - that's up to you.

  • 27% - Short VIX Futures
  • 17% - Long $VIX Puts/Spread
  • 33% - Long $VXX Puts/Spread
  • 23% - Short $VIX Calls/Spreads

Another options question of the week: Trading options during earnings season can be challenging. Some live for it while others avoid it. Do you hold options positions through earnings announcements? If so, what is your approach? Or do you prefer to trade just before/after the event? Or is it all too risky?

  • Yes, Short Premium
  • Yes, Long Premium
  • No, Too Risky
  • I trade around the event

Listener questions and comments:

  • Question from Splitsville - Why is long put/covered call a "collar" while short put/long call is a "risk reversal." Never understood that one.
  • Question from Alto - Which do you think has a better chance of happening - no more earnings calls or after hours options trading? And which do you think would be more impactful for options traders? Do you have a preference?

Around the Block/This Week in the Markets:

  • Jul 10 - JOLTS
  • Jul 11 - PPI
  • Jul 12 - Jobless Claims
  • Consumer Price Index, Treasury Budget
  • Jul 13 - Import and Export Prices, Consumer Sentiment

 

This Week in Futures Options 109: Trade War Hitting Equities, Ags and More

Posted July 9th, 2018

Topics this week include:

  • Metals
  • Crude
  • Equities/Russell
  • Ags/Soybeans
  • Crypto/Bitcoin

Futures Options Feedback: Listeners chime in

  • Comment from Trade_The_Swing -Today is sunny as trade tariffs begin, yesterday was cloudy as trade tariffs were about to start, tomorrow will be hot weather cause tariff war de-escalate, all this tariffs noise is beyond silly.
  • Comment from Son of Algos - #BuckleUp #TradeWar No #MAGA Just massive debt, shrinking system liquidity & Trump plunging the West into the Dark ages.
  • Comment from Leveq - I agree with your other listener that it's the brokers putting the brakes on weeklies. I don't even see them listed on my platform. Wth?
  • Question from Desmond - What is the one thing you think people really should know, but don't about the differences between futures options and equity options?

 

Volatility Views 312: VIX Laughs At Trade Wars

Posted July 9th, 2018

Volatility Review: What trade war? The market rallies despite the fact that the trade war has begun.

Market review:

  • VIX Cash - 13.75, 1.25-points lower than last week.
  • VVIX - 103, almost unchanged from last week.
  • VIX Options - ADV: 496K, VIX call/put: 2.7/1, Total 7.04m (5.16m Calls, 1.88m Puts)
  • A lot of VIX risk reversals hitting the tape today.
  • VXX - 34.6,0.5-points lower than last week.

Volatility Voicemail: Flash poll

Which product or complex will experience the greatest #Volatility going forward as a result of this trade war? Gold? Crude Oil? Equities? Soybeans?

  • Soybeans
  • Gold
  • Crude Oil
  • Equities

Options question of the week: Traders generally fade volatility going into holidays (today notwithstanding). What's your favorite vehicle when you want to wager on the dark side of volatility? Short-term or Long-term - that's up to you.

  • Short VIX Futures
  • Long VIX Puts/Spread
  • Long VXX Puts/Spread
  • Short VIX Calls/Spreads

Listener questions and comments

  • Question from LVist - Are you guys as surprised as me by VXX's stubbornness? It refuses to break the 30 handle.
  • Question from Casey - Is it me or is the vol space much more boring after VIX/SVXY? Those were my two favs. Seems like there's not much to take their place. What's the new short vol play?

Crystal Ball: Your prognostication headquarters

Last week:

  • Mark L. -12.55
  • Mark S. -12.95

This week:

  • Mark L. - 12.50
  • Mark S. - 12.90
  • Guest - 13.63

 

OICs Wide World of Options 49: Panel - Options Pros Talk Put-Call Parity and More

Posted July 9th, 2018

This rebroadcast of OIC’s webinar panel on Put-Call Parity covers whether understanding these price 


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: 12.23 - 13.85

  • S&P Cash Range: 2768.51 - 2803.81

  • SPX 30-Day Implied Volatility: 10.01

  • SPX 30-Day Realized Volatility:  9.23

  • SPX Risk Premium (30-Day Implied - Realized): 0.68

  • Market Risk Premium (VIX Cash - SPX 30-day Implied Volatility): 2.17


 

Strategy 101: Brought to you by Ally Invest

Options Playbook Radio 191: Facebook Synthetic Stock

Posted January 11th, 2018

In this episode, we are looking beyond the Options Playbook and are using a long combination to create a synthetic stock and buy protection. You can find more on p. 76 of The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • A review of last week's episode
  • What is a synthetic long stock?
  • Where is Facebook now?
  • How to create a synthetic long position
  • Adding a twist...using a put spread
  • Selecting expirations and strikes
  • What is the cost? Risk?

 

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


The Options Insider on Social Media

The Options Insider app

The Options Insider Radio Network 

Copyright © 2018, The Options Insider, Inc. All rights reserved.

Our mailing address is: The Options Insider | 165 North Canal Street | Chicago, Illinois 60606

questions@theoptionsinsider.com