Your Inside Source for Options Information

November 27, 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.

Upcoming Economic Reports

A preview of what may move the market this week

 

 

Options Insider Radio Network 

Options Insider Radio Interviews: New Contract Tackles Volatile Freight Markets

Posted November 24th, 2017

In this episode, Mark is joined by Craig Fuller, CEO of TransRisk and Paul Cusenza, Chairman and CEO of the Nodal Exchange.

They discuss:

• Their backgrounds and how they came to finance
• What is TransRisk? What is the Nodal Exchange?
• How do they work together?
• What are trucking freight futures?
• Similarities to the energy markets
• How will the contracts settle?
• Portfolio margining
• What is the timing for releasing these futures?
• What has the early response been?
• Nodal's first foray into the options market
• And more...

Best of Option Block

Posted November 24th, 2017

We are not letting the Thanksgiving holiday get in the way of you getting your Option Block fix on.

Best of Volatility Views

Posted November 24th, 2017

Black Friday should not keep you from enjoying your favorite volatility podcast.

Best of This Week in Futures Options

Posted November 24th, 2017

While you're in line for your Black Friday deals, why not check out the best of This Week in Futures Options?

Best of Options Playbook Radio: Listener Questions

Posted November 23rd, 2017

For your listening pleasure, we bring you an all-listener question episode of Options Playbook Radio.

 

Advisors Option 61: Exploring Volatility in the Age of Trump

Posted November 22nd, 2017

Tricks of the Trade:

• What is the Fitness Function?
• How can an option-oriented advisor/asset manager use this?

The Buzz

• OCC Cleared contract volume up 20% in October.
• Big names outperforming during earnings season.
• How to approach trading into an earnings announcement.
• Volatility and Market History in the Age of Trump.
• The Rise and Fall of Modern Portfolio Theory

Office Hours: Listeners have their say

• Comment from Don - Guys, If I live to be 100, I will never, ever, understand utter gibberish such as this article. All the technical analysis, all the pseudo-science, charting, etc., all to reach what conclusion? In essence, that the market is due for a correction and is going to tank! Why use VIX for that? Does he want any sane, rational human being to conclude that VIX has a mind of its own and is going to explode all by itself, and THEN, a market correction will ensue?? Now, don't get me wrong: we could certainly have a massive market correction at any time. But, it is beyond asinine to imply that what will set it off will be a huge rally in the VIX. The entire investment public is made up of 99% horses' asses. And garbage like this article doesn't help. Don.

Options question of the week: Bitcoin just blew past $100B in "market cap." If options were available how would you trade them?

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

OIC's Wide World of Options 42: Panel - Your Key to Understanding Options: A Discussion with the Pros

Posted November 22nd, 2017

Take a deep dive into basic options concepts with a panel of experienced professionals, including Joe Burgoyne from The Options Industry Council as well as Peter Lusk, a senior instructor for The Options Institute at CBOE, that will engage in a lively discussion that will challenge new traders to better understand how options fit into a modern trading strategy.

In this rebroadcast OIC's webinar panel takes a deep dive into basic options concepts with a panel of experienced professionals that will help you understand how options fit into bullish, bearish and sideways market situations.

 

Option Block 670: Thanksgiving Listener Question Palooza

Posted November 21st, 2017

Mail Block: It's all listener questions and comments today

Options question of the week: The war for Bitcoin Derivatives is heating up w/ both CME Group and CBOE jumping into the fray. How do you think you'll be trading Bitcoin in 2018?

• CME BRR Futures
• CBOE Gemini Futures
• Stick w/ Regular Bitcoin
• Still don't trust Crypto

Questions and Comments:

• Question from Nikbak - When do you think we'll have #bitcoin options?
• Question from Scott Somer - Another question I would like to see is - Do you think that Nasdaq PHLX will have the most volume on a given trading day over CBOE as the leading medallion.
• Question from MarkLitwin: Thank you for your time and explanation! Appreciate! I was thinking of using options leverage with a limited risk of losing premium by buying an option long enough to cover a span between earnings and the one which is already In the Money with the Delta of 1 and selling that option just before the next ER. Would you comment on that idea please!
• Question from Albert Deckel - Two questions: While I understand how to convert a "Delta" into meaning, I really don't understand what consists of a "high" vs. "low" Gamma, Theta or Vega. For example, when is theta so high that it makes the purchase of a contract dubious, or Vega so high that it makes the purchase of an OTM contract desirable? Also, if I were to write an ITM put, what combination of Delta, Gamma, Theta or Vega am I looking for? Thanks so much!! Al
• Question from USA Patriot - What is ADV??
• Comment from Charlie T. - Not really an options guy. I don't need the headache of yet another unknown element aka time. It's hard enough just picking my stocks, deciding price points, exit points, etc.
• Question from L Penguin - I'm a new options trader and I want to buy a LEAP call because it looks like the stock is going to go to up in the next 12 months, but I don't want to commit yet. I also want to generate income while I hold that position. What are your thoughts on selling the call while I have the leap? Also, this stock has an attractive dividend that I'd like to capture. Is this even possible? Interested in your thoughts, thanks! I was thinking about buying a deep in the money call for the LEAP, and then depending on where the stock is trading at the time, sell closer to the money.

 

Options Bootcamp 69: Simple Options Tips for Stock Traders

Posted November 20th, 2017

Mark, Dan, and Jill were all in the Options Insider studio to record this session. Education, and hilarity, ensued.

Options Drills: What are options trading ideas that an active stock trader can use in their portfolio?

• Getting paid to take on risk, cash-secured put
• The wheel trade
• Stock replacement strategy; what about using LEAPS?
• Using a diagonal spread to generate income

Mail Call: Fall in for listener questions and comments

• Question from Tiim: Why isn't it standard or maybe required to let people close out shorts for free below $.10?
• Question from USA Patriot: What is ADV??
• Question from Richard D: Are there any trades that if you did not have to pay brokerage fees would be excellent types of trades? I recently have been given the opportunity to trade options and equities for a near zero trading costs for about a year. I had in the past found some multi-leg spreads or underlyings with a really low prices unworkable because the trading costs made the potential gains or expected value too low. Thank you for your time and for the great shows you consistently point out! Best, Richard
• Question from Ascentaa: What can happen to the current options being held of KITE which is acquired by GILD and is being delisted?
• Question from Yieldhawk: What is the biggest size one could buy in options? If one had a long position of $1B and want to hedge w $10 million worth is that ok?
• Question from Lonesome: Could you explain Theta and how it helps/hurts options traders? Should anyone ever buy OTM options?
• Question from Butcherboyz: What options trading strategy would you say is best suited to people with absolutely zero knowledge of options? Thanks.

 

This Week in Futures Options 79: Crude and Nat Gas Options Breakdown

Posted November 20th, 2017

This week we are featuring special guest Jeff White, Executive Director of Energy Products.

Topics this week include:

• WTI Options
• Crude Oil
• Nat. Gas
• Winners - Rough Rice, Corn
• Losers - Lean Hogs, Lumber

Futures Options Feedback: Listener Questions and Comments

• Question from Last J - Hello Mark, Nice and guest - Loving the podcast. I'm new to Crude, and I'm trying to wrap my head around WTI. You said WTI 6-mo calendar spread went backward for the first time in 3 years. So does that mean it's usually in contango? Is there a good way to trade this reversion? Also, where is the spread quoted? Can I trade it on most major platforms?

 

Volatility Views 282: FINRA VXX Smackdown, Plus VIX Stupids

Posted November 20th, 2017

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

The numbers:

• VIX Cash - Back above 12, briefly
• Bitcoin vs. VIX - What Has Been More Volatile in 2017?
• VVIX - 100.15
• CBOE Skew Index - 136

Russell's Weekly Rundown

• VIX Options: ADV - 739k, VIX Call/Put - 3.7, Total 9.69m (7.64m Calls, 2.05m Puts)
• FINRA Orders Wells Fargo to Pay $3.4M over Volatility-Linked ETPs

Volatility Voicemail: Stream of consciousness questions and comments

• Question from Andrew Giovinazzi? - Why is the rock lobster so handsome?
• Comment from David - $VXX is clearly the worst ETF. It has destroyed pretty much all of the value invested in it since inception. Or does that make it the best if you're short?
• Comment from OphirGottlieb - $VIX hello, friend. I've missed you. You appear to want to stay this time. @Options @RussellRhoads
• Comment from SaqibReports - Shhh. You will scare it away!
• Question from Lonesome - Could you tell us the process of how options market makers mitigate risk/remain delta neutral?

Crystal Ball: Wild and reckless prognostication.

Last week:

• Mark L. - 9.65
• Mark S. - 9.99
• Russell - 9.15

This week:

• Mark L. - 9.75
• Mark S. - 9.99
• Russell - 10.59

Where to Find Options Insider Radio?

               

Options Insider Radio Network Live Recordings

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