Your Inside Source for Options Information

November 19, 2018


Featured Interview

Options Insider Radio Interviews: Talking All Things Data with Cboe

Posted October 23rd, 2018

In this episode, Mark is joined by Cathy Clay, Global Head of Information Solutions at Cboe.

They discuss:

  • Speaking to equities traders from an options perspective
  • Implementing CAT (consolidated audit trail) in the options space
  • Have we reached the point where technology is sufficient to handle options data?
  • Quote mitigation is an inefficiency problem, not a data problem
  • Improvements to LiveVol
  • Cboe DataShop
  • Thoughts on crypto
  • And more...

Upcoming Economic Reports

A preview of what may move the market this week

TIME (ET) REPORT PERIOD FORECAST PREVIOUS
MONDAY, NOV. 19
10:00 AM Home builders' index Nov. -- 68
TUESDAY, NOV. 20
8:30 AM Housing starts Oct. 1.225mln 1.201mln
8:30 AM Building permits Oct. -- 1.27mln
WEDNESDAY, NOV. 21
8:30 AM Weekly jobless claims 17-Nov 214,000 216,000
8:30 AM Durable goods orders Oct. -3.00% 0.70%
8:30 AM Core capex orders Oct. -- -0.10%
10:00 AM Existing home sales Oct. 5.18 mln 5.15 mln
10:00 AM Consumer sentiment Nov. 98.3 98.3
10:00 AM Leading economic indicators Oct. -- 0.50%
THURSDAY, NOV. 22
  Thanksgiving Day holiday - None scheduled      
FRIDAY, NOV. 23
9:45 AM Markit manufacturing index flash Nov. -- 55.7
9:45 AM Markit services index flash Nov. -- 54.8

 


Options Insider Radio Network 

Episodes you may have missed from Options Insider Radio last week

OICs Wide World of Options 56: The Long Option Position

Posted November 14th, 2018

Dave Whitmore of E*Trade stops by to discuss strategies to consider when trading a long option position. Then, host Joe Burgoyne chats with OIC's webinar producer Alex Osinga about how the team works to build engagement with its audience.

 

Options Insider Radio Interviews: Going All-In on Crypto with ErisX

Posted November 13th, 2018

In this episode, Mark is joined by Ian Grieves, Head of Product at ErisX.

They discuss:

  • Ian's background in financial services
  • What is ErisX?
  • Licensing swap futures to CME
  • Getting investors on board
  • What sets ErisX apart?
  • What underlying will be delivered?
  • Why is physical delivery important?
  • The benefit of having a spot market in the same platform
  • Getting institutional investors on board
  • Working with different liquidity providers
  • Will there be options?
  • And more...

 

Option Block 759: Rolling Short Calls and Puts

Posted November 13th, 2018

Trading Block: A look at the week in trading (so far).

  • Selloff mode is back - somewhat.
  • Apple iPhone XR slack demand spooking markets.
  • GE continues to decline on power weakness.
  • Vol creeping back in.
  • Equities: Growth in US corporate earnings expectations remains strong.

Odd Block: Tesla put summary Opening call love in (ZNGA) - from 11/5. Opening call love in (ETM) - from 11/1. Put love in (BCS).

Strategy Block: Uncle Mike Tosaw discusses adjusting a short call and short put.

Around the Block: What do we think will shake the market this week?

 

Volatility Views 329: VIX Is Weird But Will Not Touch Your Kids

Posted November 12th, 2018

Volatility Review: Earnings Highlights for the Week

  • Tuesday - GE, Sony, BP, FB, eBay, Pfizer, Coca-Cola
  • Wednesday - GM
  • Thursday - Apple, Starbucks, Weight Watchers, Spotify, Cigna, Dow/DuPont
  • Friday - ExxonMobil, Cboe, Alibaba, Chevron, Berkshire Hathaway

Volatility indicators:

  • VIX Cash - 17.75, 2.75-points lower than last show
  • VVIX - 100, unchanged from last show
  • VIX Options - ADV: 618k, VIX call/put: 2.1/1, Total 9.40m (6.29m Calls, 3.11m Puts)
  • VXX - 37.5, 3-points lower than last show

Volatility Voicemail: Options question of the week

We always like to take the pulse of our audience. This week we're checking in on your favorite strategies. What is your go-to #options strategy?

  • Butterflies
  • Covered Call/Short Put
  • Verticals, call or put
  • Calendars/Diagonals

Listener questions and comments

  • Question from Mina - Why is VIX so weird?
  • Question from Holan - That Meatball guy says he gets paid to buy $VXX puts. How?
  • Question from BD3 - Why no Nasdaq VIX futures? Why no options? Why can't I trade VIX on Nasdaq?

Crystal Ball: Wild and reckless prognostication

Last week:

  • Mark L. - 18.35
  • Mark S. - 16.5

This week:

  • Mark L. - 17.65
  • Mark S. - 16.49

Options Insider Radio Interviews: Launching a New Crypto Derivatives Exchange with LXDX

Posted November 12th, 2018

In this episode, Mark is joined by Josh Greenwald, CEO of LXDX.

They discuss:

  • What is LXDX?
  • What makes LXDX different?
  • Making crypto more palatable to institutional investors
  • What is the goal of attending FIA?
  • Crypto finding traction in Chicago
  • What will LXDX offer at launch?
  • What's the difference between the LXDX and CME methodologies?
  • How can they put out so many trades per second?
  • Routing orders away
  • How has the response been?
  • Thoughts on wash trading
  • And more...

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:

No live recordings - Thanksgiving Holiday


Friday:

No live recordings


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


Stats from Last Week

  • VIX Cash Range: 17.13 - 18.14

  • S&P Cash Range: 2670.62 - 2774.97

  • SPX 30-Day Implied Volatility: 15.92

  • SPX 30-Day Realized Volatility:  22.37

  • SPX Risk Premium (30-Day Implied - Realized): -6.45

  • Market Risk Premium (VIX Cash - SPX 30-day Implied Volatility): 2.22


 

Strategy 101: Brought to you by Ally Invest

Options Playbook Radio 200: FedEx Butterfly to Capture Earnings

Posted March 15th, 2018

Last week we talked about a Costco butterfly. Let's revisit what has happened since. You can find more on page 102 (butterfly) and page 126 (iron condor) of The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

  • A review of last week's comparison of the butterfly vs. iron condor in COST
  • Breaking down the butterfly
  • What about the iron condor?
  • What happened after COST announced earnings?
  • Implied volatility and time decay as factors
  • Moving on to FedEx, which reports earnings on 3/20
  • How to set up a trade to contain the earnings
  • Selecting strikes
  • What is the cost?
  • What is the maximum risk?

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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