Your Inside Source for Options Information

September 10, 2018


DC Investors, Are You Registered for STA?

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: Exploring Market Regulation with STA

Posted May 14th, 2018

When Mark was in Florida for the 2018 Options Industry Conference, he had a chance to sit down with Jim Toes, President of STA

They discussed:

  • What is the STA?
  • Why is the STA attending the Options Industry Conference?
  • What are the regulatory focuses of the STA?
  • Thoughts on auctions
  • Transparency versus speed
  • Issues in DC

 


Upcoming Economic Reports

A preview of what may move the market this week

TIME (ET) REPORT PERIOD PREVIOUS
MONDAY, SEPT. 10
12:01 AM Eric Rosengren interview with MarketWatch    
11:00 AM Survey of consumer expectations Aug.  
12:00 PM Raphael Bostic speaks    
3:00 PM Consumer credit July $10bln
TUESDAY, SEPT. 11
6:00 AM NFIB small-business index Aug. 107.9
10:00 AM Job openings July 6.7 mln
10:00 AM Wholesale inventories July 0.10%
2:20 PM Neel Kashkari speaks    
WEDNESDAY, SEPT. 12
8:30 AM Producer price index Aug. 0.00%
9:40 AM James Bullard speaks    
2:00 PM Beige book    
THURSDAY, SEPT. 13
8:30 AM Weekly jobless claims 8-Sep --
8:30 AM Consumer price index Aug. 0.20%
8:30 AM Core CPI Aug. 0.20%
1:15 PM Raphael Bostic speaks    
2:00 PM Federal budget Aug.  
FRIDAY, SEPT. 14
8:30 AM Retail sales Aug. 0.50%
8:30 AM Retail sales ex-autos Aug. 0.60%
9:00 AM Charles Evans speaks    
9:15 AM Industrial production Aug. 0.10%
9:15 AM Capacity utilization Aug. 78.10%
10:00 AM Consumer sentiment Sept. 96.2 Aug
10:00 AM Business inventories July  
10:00 AM Eric Rosengren publishes paper    




Options Insider Radio Network 

Episodes you may have missed from Options Insider Radio last week

This Week in Futures Options 117: A Deep Dive into Equity Volume and Volatility

Posted September 7th, 2018

Topics this week include:

  • Equities
  • Russell/EMini
  • Crude
  • Crypto

Futures Options Feedback: Listeners have their say

Options question of the week: We talked about crypto derivatives at the @BlockchainVoice Conference. 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 Ledger8: Enjoyed your panel on crypto derivatives. Good job hitting the big points. But I was disappointed that #bitcoin options don't seem to be on the radar anytime soon. The CME rep made it sound like we won't see them listed this year. Bummer!
  • Question from Allani: I trade a fair amount of EMini S&P options. I'm eyeing the Dow but don't see a significant amount of volume there. I've heard you mention this before on the TWIFO program. Why do you think the S&P contract generates so much more interest than the Dow contract? After all Dow is probably quoted more in the media than the S&P?

 

Option Block 741: We Are Back Talking TSLA, VIX, SPY and More

Posted September 7th, 2018

Trading Block. There are still names reporting earnings. Namely, Barnes & Noble and GameStop.

Odd Block: Cheapie calls in Northern Oil & Gas, Inc. (NOG) from 5/21. Crazy put palooza in Dean Foods Co (DF) from 4/30. Call love in Devon Energy Corp (DVN) from 4/16

Mail Block: Listener questions and comments

  • Question from Jason Anstey: Would you or your followers have a recommendation on best discount brokerage? Ideally low cost per contract and the ability to enter spread orders on a mobile device. Thanks. Appreciate it.
  • Question from Florence: When trades go against you do you close or roll the whole thing out or only the losing parts?

Around The Block/This Week In the Markets:

  • Sep 4 - Construction Spending
  • Sep 5 - International Trade
  • Sep 6 - Jobless Claims, Productivity and Costs, Factory Orders
  • Sep 7 - Unemployment

 

Options Playbook Radio 234: Bearish Butterfly in SPX

Posted September 6th, 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:

  • A review of last week
  • Setting up a long put butterfly in SPX
  • Where is the SPX now?
  • Where is volatility?
  • Selecting strikes
  • Using the nearest-term expiration
  • Settlement is at the close on Friday
  • What's the upside? Downside?
  • What do we want to happen?
  • How to roll into a short put spread
  • Remember commissions!

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.

 

Best of Volatility Views 269: One More VXX Reverse Split

Posted August 31st, 2018

This episode was originally posted on August 28th, 2017.

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

  • VIX Cash - 12.33, a high of 14.45 on Monday.
  • VVIX - 100
  • CBOE Skew Index - 130

Russell's Weekly Rundown

  • VIX Options: ADV - 764k, VIX Call/Put - 3.4, Total 11.5m (8.88m Calls, 2.66m Puts)
  • VXX reverse split trade

Volatility Voicemail: Listener questions and comments

  • Comment from JLC - That $VIX 60 guy is just nuts. He's just trying to make a name for himself with that prediction. $SPX wld need to drop over 10% to be right.
  • Question from FContangotrader - What is your thought on $VIXH? Maybe every episode you can give an intro into various Vol ETN and ETF. Thanks and keep with good work
  • Comment from FContangotrader - Mark Sebastian, so how do you hedge your gamma and your mother in law?

Crystal Ball: Wild and reckless prognostication Last week

  • Mark L. - 13.55
  • Mark S. - 12
  • Kevin - 18.25
  • Guest - 14.30

This week

  • Mark L. - 11.75
  • Mark S. - 11.00
  • Russell - 10.80

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


Thursday:

Option Block LIVE at 12pm Central
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: 13.12 -  15.63

  • S&P Cash Range: 2864.12 - 2900.18

  • SPX 30-Day Implied Volatility: 10.41

  • SPX 30-Day Realized Volatility:  7.00

  • SPX Risk Premium (30-Day Implied - Realized): 3.41

  • Market Risk Premium (VIX Cash - SPX 30-day Implied Volatility): 4.47


 

Strategy 101: Brought to you by Ally Invest

Options Playbook Radio 196: Short-Term WYNN Butterfly

Posted February 14th, 2018

We are back to the playbook this week and taking a close look at Wynn Resorts. There is a lot of volatility in the stock these days with the CEO in the news quite a bit these days. We are looking at a very short-term butterfly. You can find more on page 104 of The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • Why a very short-term trade?
  • What is the desired outcome?
  • What about the stock going ex-dividend?
  • Setting up the trade
  • Why use puts?
  • Selecting strikes
  • What is the cost?
  • When to get out?
  • Looking at net theta versus net delta

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