Your Inside Source for Options Information

November 13, 2017

Brought to You by QuikStrike

Options Analysis and Pricing Software for the Brokerage and Trading Community

If you are a fan of This Week in Futures Options, you know how powerful QuikStrike software is. If you haven't heard TWIFO, first, get over to the archives and listen to what Mark, Nick, and the CME hot seat guest break down what is happening in the world of futures options.

After that, check out what Bantix Technologies has to offer. Mark and Nick rely exclusively on their QuikStrike technology for futures and futures options analysis on the show.

• QuikStrike: QuikStrike offers powerful and flexible options analysis and pricing tools via an easy-to-use, web-based interface. View prices on outright options or spreads with comprehensive page level analysis controls. Market data reports ranging from open interest to the term structure of volatility.
• QuikVol: QuikVol is the QuikStrike historical option implied volatility, historical option price settlements, open interest and volume database. QuikVol is available as part of the intraday volatility update and historical implied volatility add-on for our QuikStrike options analysis software.
• CME Essentials: This base version of QuikStrike's benchmark pricing and analysis platform provides access to current and historical volatility (by strike), volume and open interest information, delta sheets, pricing analysis, spread analysis, and risk graphs.

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Options Insider Radio Network 

• Disney - ATM straddle $5, approx. 4.5%
• NVDA - ATM straddle $16, approx. 8%

• 28% - Buy Calls/Call Spreads
• 5% - Buy Puts/Put Spreads
• 33% - Sell Puts/Put Spreads
• 34% - Fly/Iron Fly/ Iron Cond.

• A recap of what happened with last week's FB position
• After AMZN, FB looked a little boring
• DIS reports earnings after the close on Thursday, November 9
• What is the sentiment on DIS?
• Looking at the long straddle to figure out pricing
• Setting up a backspread in DIS
• Picking the strikes and expirations
• What is the downside? Upside?
• What do we want to happen?

• Monday - Weight Watchers
• Tuesday - CBOE, Valeant, Snap Inc.
• Thursday - Nvidia, Macys, Kohl?s
• Friday - JCPenney

• 52% - Buy Calls/Call Spreads
• 18% - Buy Puts/Put Spreads
• 13% - Sell Covered Calls
• 17% - Other/Hate #Crypto

• Comment from Tony Varriale? - HODL
• Comment from Contrlkaos - Call broken wing butterflies

• Buy Calls/Call Spreads
• Buy Puts/Put Spreads
• Sell Puts/Put Spreads
• Fly/Iron Fly/ Iron Cond.

• Comment from Ophir Gottlieb? - $TSLA oh, if there was after hours option trading @Options
• Comment from Folfox - Do you prefer iron condor vs. iron butterfly? (I know 1 strategy wont work every time, but what scenario is preferred)
• Question from ThinkTankTrading - I have a question regarding funds like vxx and this quote from its prospectus...In connection with these limits, the Dodd-Frank Act has required the CFTC to adopt regulations establishing speculative position limits applicable to regulated futures and OTC derivatives and impose aggregate speculative position limits across regulated U.S. futures, OTC positions and certain futures contracts traded on non-U.S. exchanges. In December 2016, the CFTC re-proposed rules on position limits with respect to the 25 physical delivery commodity futures and options contracts, as well...What happens with cheap low Vol prices and this position limit, and they can't get the Vol exposure needed to track the benchmark? ...Positive or inverse ETFs?...One will have massive margin lending/ borrowing costs and the other won't be allowed to buy more futures at some point...The second that happens the Nav will be out of whack and become a closed end fund with Arb to Nav opportunities aka the death spiral - would you agree? Or am I missing something - thanks in advance...Asking for a friend hahahah kidding.

• Nov 7 - JOLTS
• Nov 8 - EIA Petroleum Status Report
• Nov 9 - Jobless Claims
• Nov 10 - Consumer Sentiment, Treasury Budget

• VVIX - 91.5
• CBOE Skew Index - 136
• VXN - 14.7

• VIX Options: ADV - 833k, VIX Call/Put - 3.9, Total 11.7m (9.37m Calls, 2.37m Puts)
• Earnings Volatility: Apple, Facebook, Tesla
• Commodity Volatility: Crude/OIV, Gold/GVZ

• Comment from Don S: Ah, if you had called me for the last VV, I would have regaled you with stories from the Morgan Stanley trading desk about Black Monday. But none would have been better than the one of my buddy and colleague, Peter, who in August 1987 decided that the market was overdone and invested $20,000 of his own money in OTM SPX November puts. Those options, which were 1/8 before the crash, went to $50, and his $20,000 turned into 400 times that, or ... wait for it! ... $8 million! Ah, the good ol' days. :-) Don
• Question from Hawkeye - To ye merry band of Magical Voice, grease laden Meatballs, favorite Uncles, and Lobsters with Tubs of butter: I already get that SVXY, XIV, and other short ETF/ETNs can go bust overnight due to the front 2 futures doubling. What would happen if I held long SVXY puts in an IRA and the fund had to close because the SHTF? How would I exercise them if the fund doesn't trade? I can't cover due to underlying frozen, but I can't exercise without covering because that would put me short in an IRA? Or would they still allow it as an exception? How would it all unwind? Thanks for all you guys keeping me learning, laughing, and most of all, thinking. Your longtime listener - Hawkeye

• Mark L. - 9.65
• Mark S. - 10.16
• Ophir - 9.8
• Ghost of Russell - 38.3

• Mark L. - 9.55
• Andrew - 9.99
• Russell - 8.95

• Crude Oil
• Gold/Metals
• Wheat/Ags
• Winners: Live Cattle, RBOB
• Losers: Rough Rice, Lumber

• Buy Calls/Call Spreads
• Buy Puts/Put Spreads
• Sell Covered Calls
• Other/Hate #Crypto

• Question from Mantauk - What is the actual implied volatility of bitcoin?

• Jim's background
• Using big data to predict behavior
• The political VIX: PVIX
• Bitcoin, AI, and the future of fintech
• How do they analyze social media to predict behavior?
• Monitoring metadata from conversations
• How do they work with options traders?
• What is the PVIX predicting?
• Find out more at predata.com

• Mark's backgound in the financial services space
• What is Apcela?
• What sets Apcela's trading platform apart?
• The race to zero
• Cloud adoption, or lack thereof
• Improving the adoption of public cloud technologies
• The market data wars
• And more...

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