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September 17, 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: Talking Options and Market Data with Burton-Taylor

Posted May 11th, 2018

When Mark was in Florida for the 2018 Options Industry Conference, he had a chance to sit down with Andy Nybo, Director at Burton-Taylor International Consulting.

They discussed:

  • What does market data research entail?
  • Sifting through the dearth of market data
  • The growth in the need for data
  • How to define liquidity
  • Thoughts on auctions
  • What about the number of exchanges?
  • And more...

Upcoming Economic Reports

A preview of what may move the market this week

TIME (ET) REPORT PERIOD PREVIOUS
MONDAY, SEPT. 17
8:30 AM Empire State index Sept. 25.6
TUESDAY, SEPT. 18
10:00 AM Home builders' index Sept. 67
WEDNESDAY, SEPT. 19
8:30 AM Housing starts Aug. 1.168mln
8:30 AM Building permits Aug. 1.303mln
8:30 AM Current account deficit Q2 -$124bln
THURSDAY, SEPT. 20
8:30 AM Weekly jobless claims 15-Sep --
8:30 AM Philly Fed index Sept. 11.9
10:00 AM Existing home sales Aug. 5.34 mln
10:00 AM Leading economic indicators Aug. 0.60%
FRIDAY, SEPT. 21
9:45 AM Markit manufacturing PMI (flash) Sept. 54.7
9:45 AM Markit services PMI (flash) Sept. 54.8

 

 


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: 11.93 - 15.20

  • S&P Cash Range: 2866.78 - 2908.30

  • SPX 30-Day Implied Volatility: 8.12

  • SPX 30-Day Realized Volatility:  6.56

  • SPX Risk Premium (30-Day Implied - Realized): 1.56

  • Market Risk Premium (VIX Cash - SPX 30-day Implied Volatility): 3.95


 

Strategy 101: Brought to you by Ally Invest

Options Playbook Radio 197: PCLN Skip-Strike Butterfly

Posted February 22nd, 2018

As we enter the end of earnings season, there are still a few big names left to report, including Priceline, PCLN. This is an interesting opportunity for a 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:

  • Earnings + expiration + implied volatility = interesting situation
  • Goal: do the trade for a net credit
  • PLCN announces earnings on 2/27
  • What is the expected move?
  • What is the implied volatility?
  • Selecting the strikes
  • Remember commissions!
  • What's the risk? Reward?
  • When to get out?

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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