 Your Inside Source for Options Information December 11, 2017 | |
Featured Interview A favorite interview from Options Insider RadioÂ
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...
Upcoming Economic Reports
A preview of what may move the market this week
| TIME (ET) | REPORT | PERIOD | PREVIOUS | | MONDAY, DEC. 11 | | 10:00 AM | Job openings | Oct. | 6.1 mln | | TUESDAY, DEC. 12 | | 6:00 AM | NFIB small-business index | Nov. | 103.8 | | 8:30 AM | Producer price index | Nov. | 0.40% | | 2:00 PM | Federal budget | Nov. | -$137 bln | | WEDNESDAY, DEC. 13 | | 8:30 AM | Consumer price index | Nov. | 0.10% | | 8:30 AM | Core CPI | Nov. | 0.20% | | 2:00 PM | FOMC announcement | Â | 1-1.25% | | 2:30 PM | Janet Yellen press conference | Â | Â | | THURSDAY, DEC. 14 | | 8:30 AM | Weekly jobless claims | 9-Dec | Â | | 8:30 AM | Retail sales | Nov. | 0.20% | | 8:30 AM | Retail sales ex-autos | Nov. | 0.10% | | 8:30 AM | Import prices | Nov. | 0.20% | | 9:45 AM | Markit manufacturing PMI (flash) | Dec. | 53.9 | | 9:45 AM | Markit services PMI (flash) | Dec. | -- | | 10:00 AM | Business inventories | Oct. | 0.00% | | FRIDAY, DEC. 15 | | 8:30 AM | Empire state index | Dec. | 19.4 | | 9:15 AM | Industrial production | Nov. | 0.90% | | 9:15 AM | Capacity utilization | Nov. | 77.00% |
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 Options Insider Radio Network Episodes you may have missed from Options Insider Radio last week
Option Block 675: Talking Skew, VIX, TSLA, Bitcoin, Taxes and More
Posted December 8th, 2017
Trading Block: Someone has the gall to downgrade Tesla, but the stock still rallies. OCC Cleared contract volume increased 1% in November. It was the highest November ever for options volume.
Odd Block: Jan 2019 50 "Catastrophe" puts in Tesla Motors Inc. (TSLA) Paper doubling down in (JBLU). Calls trade in Union Pacific Corp (UNP). Puts trade in Amgen, Inc. (AMGN).
Strategy Block: Uncle Mike Tosaw discusses how to trade skew.
Mail Block: Options question of the week.The war for Bitcoin Derivatives is heating up again. CME Group is launching futures on 12/18. CBOE just announced a 12/10 launch date. Not enough? Nasdaq also announced futures w/ for a planned Q2 2018 launch. With so many choices-How will you trade Bitcoin in 2018? - CBOE Futures 12/10
- CME Futures 12/18
- Nasdaq Futures Q2 2018
- "Old School" Bitcoin
Listener Question: - Question from Scott Somer -How would movement to treat capital gains to FIFO for the underlying stocks be good or bad for the options market?
Around the Block/Economic Reports: - Dec 7: Jobless Claims
- Dec 8: Unemployment, Consumer Sentiment
Options Bootcamp 71: Protecting Your Gains Using Options
Posted December 7th, 2017
Basic Training: A Review of How to Protect Your Profits - Easiest method: Buy a 2-3 month put ATM or slightly an OTM put. Protect just those gains.
- What do you do if you have a broad portfolio?
- Hedging Rule of Thumb. Expect to spend about 2% of your portfolio for effective 3-6 month protection.
- How do you reduce the cost of protection?
- Buy a spread instead of an outright put, set up a collar, or set up a collar with a kicker.
Mail Call: It's time for listener questions - Question from Ariell - Why should I ever buy puts? I can use a stop order in the stock for free and then put that extra capital to work in my trading account. By my math using stops instead of puts can boost your account 5-10% per year. That's a lot of cheese.
- Question from S_Warz - Do you trade options through dark pools
- Question from Thankfulness - Do you have dark pool access?
- Comment from H. Schwartz? - Who said option traders don't celebrate holidays!
- Question from L. Penguin - I have a question for the Options Bootcamp. 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 Playbook Radio 186: Broadcomm Skip-Strike Butterfly
Posted December 7th, 2017
In this episode, we revisit an old favorite: the 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: - Broadcomm announces earnings soon, and has been very volatile lately
- Why a skip-strike butterfly?
- What is the outlook?
- Selecting strikes
- What is the cost?
- What about the maximum gain? Loss?
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.Â
Option Block 674: Bitcoin Battles and Long Options Debate
Posted December 5th, 2017
Trading Block: GOP tax plan passes the Senate. CBOE Plans December 10 Launch of Bitcoin Futures Trading
Odd Block:
Size OTM call paper in Plains GP Holdings LP (PAGP). Funky ratio verticals/stupid in Him Technologies Inc. (HIMX). Weird backwards post-earnings roll in L Brands Inc. (LB).
Mail Block: Options question of the weekThe 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
Listeners weigh in: - Question from The Financial Grynch - Do you REALLY reckon long options is profitable?
Around The Block/ Economic Reports: - Dec 4: Factory Orders
- Dec 5: International Trade
- Dec 6: Productivity Costs
- Dec 7: Jobless Claims
- Dec 8: Unemployment, Consumer Sentiment
This Week in Futures Options 80: Can OPEC Bring Back Crude Volatility
Posted December 4th, 2017
Today's CME hot seat guest is Matt Bradbard from RCM ALTS.Topics this week include: - Crude Oil
- WTI
- Gold
- Winners - Iron Ore, Nat Gas
- Losers - Silver, Copper
Futures Options Feedback - Question from Lil Nic - Updates on CME #bitcoin futures?
- Question from Nick - Update on your covered put spread from 11/10?
OIC's Wide World of Options 43: Earning Announcements and Options Growth
Posted December 4th, 2017
Bill Ryan of NYSE joins OICs Joe Burgoyne to chat about how earnings announcements can impact your options portfolio. Then, on Profiles & Perspectives, Nasdaq’s Jill Malandrino discusses her thoughts on historically low volatility and the potential for listed options market growth.
Where to Find Options Insider Radio? Do you know all the ways you can access Options Insider Radio
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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 3pm Central
Thursday:
Option Block LIVE at 3pm Central
Friday:
Volatility Views LIVE at 12pm Central
This Week in Futures Options LIVE at 1:30 CentralAs always, you can join in the fun at http://mixlr.com/options-insider/
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Stats from Last Week - VIX Cash Range: 9.55 - 11.86
- S&P Cash Range:Â 2624.75 - 2665.19
- SPX 30-Day Implied Volatility: 7.16
- SPX 10-Day Realized Volatility: 7.22
- SPX 30-Day Realized Volatility: Â 6.23
- SPX Risk Premium (30-Day Implied - Realized): 0.93
- Market Risk Premium (VIX Cash - SPX 30-day Implied Volatility): 2.42
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| Strategy 101: Brought to you by Ally Invest Options Playbook Radio 163: Listener Question Palooza, Continued Posted June 22nd, 2017 The Huddle: Listeners weigh in with questions - Question from Steve - With the VIX so low, I am not selling a lot of options anymore, because I am afraid that I will not collect enough premium. Am I thinking of this incorrectly?
- Question from Lincan -My go-to options strat is to sell covered puts on stocks that I want to buy then get paid to wait. If the stock comes my way I eventually trade out of it using a covered call. What do you think? Savvy or stupid?
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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