Your Inside Source for Options Information

August 27, 2018


Upcoming Conferences of Interest

Security Traders Association annual conference is the industry's premier market structure event, STA's 85th Annual Market Structure Conference where we bring together a diverse audience of speakers and attendees, addressing the most compelling topics facing our industry. More information, including how to register, is here.


Featured Interview

Options Insider Radio Interviews: Talking Options and Volatility with CME Group

Posted March 15th, 2018

In this episode, Mark is joined by Derek Sammann, Global Head of Commodities and Options Products and Blu Putnam Chief Economist at CME Group.

They discuss:

  • Looking at options at the FIA conference
  • Volatility spike is a great opportunity to use options
  • Interesting move in the flight to quality
  • The global use for options
  • Globalizing participation
  • Re-defining who CME Group is and who they want to be
  • And more

 


Upcoming Economic Reports

A preview of what may move the market this week

TIME (ET) REPORT PERIOD PREVIOUS
MONDAY, AUG. 27
8:30 AM Chicago national activity index July 0.43
TUESDAY, AUG. 28
8:30 AM Advance trade in goods July -$68.3bln
9:00 AM Case-Shiller home price index June 6.40%
10:00 AM Consumer confidence index Aug. 127.4
WEDNESDAY, AUG. 29
8:30 AM Gross domestic product revision Q2 4.10%
10:00 AM Pending home sales July 0.90%
THURSDAY, AUG. 30
8:30 AM Weekly jobless claims 25-Aug  
8:30 AM Personal income July 0.40%
8:30 AM Consumer spending July 0.40%
8:30 AM Core inflation July 0.10%
FRIDAY, AUG. 31
9:45 AM Chicago PMI Aug. 65.5
10:00 AM Consumer sentiment index Aug. 97.9

 


Options Insider Radio Network 

Episodes you may have missed from Options Insider Radio last week

This Week in Futures Options 116: Metals, Energy and Hedging Equities with Treasury Options

Posted August 24th, 2018

Topics this week include:

  • Crude
  • Equities/S&P
  • Metals/Silver
  • Bitcoin/Crypto

Futures Options Feedback: Options question of the week

We're talking about #Crypto #Derivatives at the upcoming @BlockchainVoice Conference (register at http://VoiceOfBlockChain.com). So this week we want to know which #Crypto product you'd like to see listed on a major venue next.

  • 72% - Bitcoin Options
  • 8% - Ripple Options/Futures
  • 15% - Ether Options/Futures
  • 5% - Litecoin Options/Futures

Listener questions and comments:

  • Comment from Umesh - (SEC rejecting Bitcoin ETFs) May be they only like to trade futures #BTC
  • Comment from Apex Trading - Good. I have several wells and the low gas price has been sucking!
  • Question from Lil Danger - First selloff, then NVDA, now SEC rejects bitcoin. Is the bloom off the crypto rose?
  • Comment from LVers - Hogs please.
  • Question from Splitsville - Why is long put/covered call a "collar" while short put/long call is a "risk reversal?" Never understood that one.

 

Option Block 740: Trade Wars and Cannabis Stocks

Posted August 24th, 2018

Trading Block: Trump trade war is back on the tape - China implemented more tariffs on U.S. goods. Earnings:

  • Thursday - HP, Intuit, Gap
  • Friday - Foot Locker

Odd Block: Rolling calls in Union Pacific Corporation (UNP), bullish paper in Coty Inc. (COTY) and opening puts in CBL & Associates Properties, Inc. (CBL) Strategy Block: Uncle Mike Tosaw discusses investing in marijuana stocks. Mail Block: Options question of the week we’re talking about #Crypto #Derivatives at the upcoming @BlockchainVoice Conference (register at http://VoiceOfBlockChain.com). So this week we want to know which #Crypto product you'd like to see listed on a major venue next.

  • 72% - Bitcoin Options
  • 8% - Ripple Options/Futures
  • 15% - Ether Options/Futures
  • 5% - Litecoin Options/Futures

Listener questions and comments: What's on your mind?

  • Comment from TradingTrooper -$CGC begins trading weekly options today
  • Comment from FContangotrader -@OptionPit @OptionVol greasy meatball and rock lobster combo lol
  • Re: Olive Garden $300 all you can eat pass: Comment from Volatility Trading -Low carb diets be damned

Around the Block: What are we watching?

 

Options Playbook Radio 222: S&P 500 Skip Strike Butterfly

Posted August 24th, 2018

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

Specifically:

  • Why choose the S&P 500 index?
  • Selecting the expiration (just two days!)
  • Selecting strikes
  • What is the risk?
  • Remember commissions, especially with a three-legged trade
  • Interesting downside considerations
  • What do we want to happen?

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 739: TSLA Is Crazy

Posted August 21st, 2018

Trading Block: Earnings!

  • Wednesday - Target, Lowe's, Barnes & Noble
  • Thursday - HP, Intuit, Gap
  • Friday - Foot Locker

Plus, TSLA has major issues - SEC investigation, drug cartels, etc.

Odd Block: Put roll in QEP Resources Inc. (QEP), Rolling puts in Flower Foods Inc. (FLO), Call palooza in PayPal (PYPL)

Mail Block: Options question of the week

This week we would like to know more about your level of #options expertise. Quite simply - how would you describe yourself at a dinner party?

  • 13% - Current/Former Pro
  • 18% - Retail Options Wiz
  • 47% - Retail Options Dabbler
  • 22% - Looking to Get Started

ANOTHER Options question of the week: We're talking about #Crypto #Derivatives at the upcoming @BlockchainVoice Conference (register at http://VoiceOfBlockChain.com ). So this week we want to know which #Crypto product you'd like to see listed on a major venue next. Reply/DM w/others #Bitcoin $XRT $ETH $LTC

  • Bitcoin Options
  • Ripple Options/Futures
  • Ether Options/Futures
  • Litecoin Options/Futures

Listener questions and comments:

  • Question from Cbade: Looking to sell some Ford weekly 9.50 puts for $.25. My broker says I don't have enough cash in my account to cover a 10 lot. How much money do I need to have to sell 10 puts on a $9 stock?

Around the Block: What's coming up this week?

 

Volatility Views 318: Exploring VIX Competitors with NationsShares

Posted August 20th, 2018

Volatility Review, featuring special guest Scott Nations, CNBC Contributor & Creator of VolDex.

He discusses:

  • An update on SkewDex/VolDex.
  • Will Nasdaq list it soon?
  • Does the current debate over VIX manipulation create an opportunity for VolDex, or does it muddy the waters for all volatility products?
  • Is he hearing more clients and customers who are interested in a skew-less VIX?

A look back at the week from a volatility perspective

  • We’ve had a volatility whipsaw recently - we’re up, then we’re down.
  • VIX Cash - 13, slightly up from last week.
  • VVIX - 103.5, higher than last week.
  • VIX Options - ADV: 451k, VIX call/put: 2.9/1, Total 8.79m (6.56m Calls, 2.22m Puts)
  • VXX - 30.25, slightly higher than last week.

Volatility Voicemail: Listeners weigh in

  • Question from B Bort - Why does skew exist in VIX options?
  • Question from Lisl - I looked at VXX Jan 10 puts then ended up moving up the chain to the 20s. Got some ranging from $.65-$.82? So a little bit more but I think my odds are better. Although I could get 60-80 of the other puts for every one of these. Do you hate?

Volatility flash poll: Play along with the Volatility Views crew and make your own guess for the Crystal Ball segment. Where will VIX be at 1pm Central on Friday (aka the end of the show).

  • 12.5-12.99
  • 13-13.49
  • 13.5-13.99
  • 14-14.5

Crystal Ball: Your prognostication headquarters

Last week:

  • Mark L. - 12.25
  • Andrew - 11.01
  • Guest - 13.05

This week:

  • Mark L. - 12.25
  • Mark S. - 11.95

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 12pm Central (NEW TIME, SAME DAY)


Thursday:

Option Block LIVE at 12pm Central (NEW TIME, SAME DAY)
This Week in Futures 
Options LIVE at 1:30 Central


Friday:

Volatility Views LIVE at 12pm Central


As always, you can join in the fun at http://mixlr.com/options-insider/


Stats from Last Week

  • VIX Cash Range: 11.65 - 13.29

  • S&P Cash Range: 2850.62 - 2876.16

  • SPX 30-Day Implied Volatility: 8.51

  • SPX 30-Day Realized Volatility:  7.18

  • SPX Risk Premium (30-Day Implied - Realized): 1.33

  • Market Risk Premium (VIX Cash - SPX 30-day Implied Volatility): 3.48


 

Strategy 101: Brought to you by Ally Invest

Options Playbook Radio 195: Mystery FB Calls and TSLA Puts

Posted February 8th, 2018

It's time to huddle up and take on listener questions in this episode of Options Playbook Radio.

  • Question from Janice: Hi Brian! I have a question about the way you talk about the alternatives available for managing the LEAPS option put spread if the market goes down. Can you please explain?
  • Question from Matt: What's up with the FB $5 calls?
  • Question from Johnny Bananas: If you buy a put option and the strike price is $5 and the stock drops to $3, is it still worth money?

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