April Volume & Market Share

Options volume decreased by 7% year-over-year

On May 1, OCC announced that exchange-listed options volume reached 309,679,049 contracts in April, a seven percent decrease from April 2016. Year-to-date average daily options volume is down two percent from 2016 with 16,496,920 contracts.

Equity options volume last month was 269,566,040 contracts, a ten percent decrease from April 2016. This includes cleared ETF options volume of 129,366,338 contracts last month, a four percent increase over April 2016 volume of 124,959,215 contracts. Index options volume in April was up 28 percent from April 2016 with 40,113,009 contracts.

Here are the details:

Source: OCC

 

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Episodes you may have missed from Options Insider Radio last week

Option Block 617: FB and TSLA Earnings Flashback

Posted May 5th, 2017

Trading Block: The Trumpcare bill and French election how might they affect vol? Tesla: Close - $311, ATM Straddle - $17, approx. 5.5%. Stock off over $20 at the lowest point today, closing off nearly 5%. FB: Close - $151.80, ATM Straddle - $5.63, approx. 3.7% Facebook grew its revenue by 49% during the first three months of the year. Thank you to Steve A for the fan art!

Odd Block: Calls trade in Whiting Petroleum Corp (WLL) puts trade in Alerian MLP Index (AMJ) and puts trade in US Silica Holdings Inc. (SLCA).

Strategy Block: Uncle Mike Tosaw discusses his most recent trades and moves from Monday.

Mail Block/Earnings Season Flash Poll:

$ZNGA reports earnings today. Stock is trading $2.87. #Options ADV 3K. Do you trade options on cheap stocks?

• Yes, down to $10
• Yes, down to $5
• Rarely
• No, the stock is an Option

Around the Block/This Week in the Market

• May 4: Jobless Claims, International Trade, Factory Orders
• May 5: Unemployment

Options Bootcamp 65: Revisiting Delta, Butterfly Breakdown and Your Questions

Posted May 5th, 2017

Basic Training: Delta Revisited

• A basic overview of Delta
• What is it?
• How does it impact your trading?
• Inspired by a Market Trader Mentoring newsletter article Delta Can Still be Your Friend

Mail Call/Options Question of the week

With $TSLA threatening $315 how are you leaning in your Options trades this month? Would you rather:

• 18% - Buy 1-month $300 put
• 25% - Buy 1-month $330 call
• 25% - Sell 1-month $300 put
• 32% - Staying far away from it

Listener Questions and Comments:

• Question from Joshua Shealy: Thanks so much for all that you guys do! Sorry if this is a novice question. I know that Delta is not literally the % chance of expiring in the money, but more so the rate of change for a $1 movement in the underlying. I noticed today looking at VIX Calls that the strike closest to .5 Delta is the 20 strike, a long way from ATM. I usually associate near .50 Delta with being near ATM. Is this just a nuance of VIX, or am I missing something bigger?
• Question from Brian Fortin: Options Boot Camp Dan is fond of saying, why trade options naked when you can spread off the risk and make the same money by doing it twice? I feel the same way about carrying a short position into expiration. Why try to carry six short contracts into expiration to capture that last 5 cents, when you can just trade seven contracts and do the right thing?
• Question from Gameday Dog: Aww man my vertical put spread has gone bad. I have +3 options at 61.5 and sold -3 at 62.5. Yesterday it gapped down to 50. I now have +200 shares of LULU in my account plus 3 put options at 61.5 and -1 put option at 62.5. I thought it was a $300 max risk spread. Do I have to do anything? Do I sell the shares? Everything expires in 7 days. Please help. Thanks. So, I learned about selling shares and back ratio spreads and even got a $19 credit.
• Question from Elio: Confused. How did that guy end up with only two of his short puts getting assigned to him? If he was short three shouldn't all of them have been assigned?
• Question from JDog: I just got an options pitch that says that options buyers lose money seven out of 10 trades. Is that true?
• Question from Allen: Why would I trade options when 90% expire worthless?
• Question from AndersonIvesting: New to options. I use TD Ameritrade but currently I don't like it for options. I was looking at Charles Schwab. Any recommendations for an options newbie?
• Question from Sharkcake: I've been approved to trade options by my Brokerage but I have yet to execute my first trade. What trade do you recommend?

Options Playbook Radio 157: FB Iron Condor into Earnings

Posted May 4th, 2017

Last week we looked at an inverse, skip-strike butterfly on AAPL before earnings (page 112). Today, we will explore a FB iron condor (page 126). This is always available on OptionsPlaybook.com, or on the Amazon Kindle edition.

In this episode, Brian covers:

• A review of last week
• What are the benefits and risks of the skip-strike butterfly?
• What has happened since we put the trade on?
• What should you have done?
• What is going on with FB?
• Setting up the trade
• What is the expected move after earnings?
• Selecting the expiration
• Selecting the strikes
• What is the maximum risk? Reward?
• What is the ideal scenario?

Do you have questions that you would like answered on the show? Send them to Brian at theoptionsguy@tradeking.com.

Option Block 616: AAPL Earnings Preview Plus More Stupids

Posted May 2nd, 2017

Trading Block: Green on the screen for the NASDAQ. Looking ahead to AAPL earnings. CNBC's Mr. Wonderful is loving AAPL right now. OCC cleared contract volume down 6% year over year.

Odd Block: Review of MGM time stupid from last week, puts trade in NBR, calls trade in CBI, and put buyers in NBL.

Mail Block/Options Question of the Week:

#Earnings #PopQuiz - $AAPL $146.50, #Weekly strad. $5 (3.5%). IV30 = 21%, Weekly 155 Call= $.27, 138 Put = $.27 would you rather?

• Buy Straddle/Iron Fly
• Sell Straddle/Iron Fly
• Buy Call
• Buy Put

Listener questions and comments:

• Question from Ron: I hear you mention the term stupid, "That's a put stupid," or "That's a call stupid." Is that strategy or a term of endearment? Thanks Ron
• Question from Let's make best: Which broker is the best for option trading?
• Question from Sharkcake: I've been approved to trade options by my Brokerage but I have yet to execute my first trade. What trade do you recommend?

Around the Block/This Week in the Market

• May 1: Personal Income
• May 1: Construction Spending
• May 3: FOMC Meeting
• May 4: Jobless Claims
• May 4: International Trade
• May 4: Factory Orders
• May 5: Unemployment

Earnings this week: Quarterly earnings continue to roll with one of the biggest names of the season set to announce Tuesday after the close. Technology giant Apple Inc. is set to release their latest numbers and the way they are perceived could push the stock to new highs like last release. In addition, there are other big names announcing as well including Tesla Motors and Pfizer.

Options Insider Radio Interviews: Talking Taxes, Sustainability and Options with Dylan Ratigan

Posted May 1st, 2017

In this episode, Mark is joined by Dylan Ratigan.

You may be familiar with Dylan from:

• Being Chief Skeptic at Tastytrade
• Bloomberg News where he is the global managing editor
• CNBC where he created many programs you're probably familiar with, including Fast Money
• MSNBC where he hosted the Dylan Rattigan Show (MSNBC's highest-rated program outside of prime time from 2009 - 2012)
• Co-founder of Helical Holdings
• Political commentary work with the Young Turks
• His book, Greedy Bastards: How We Can Stop Corporate Communists, Banksters, and Other Vampires from Sucking America Dry

They discuss:

• Covering the 2008 financial crisis in real-time
• The role in financial media in the lead-up and aftermath of the financial crisis
• Who is responsible for the financial crisis?
• Resigning from Fast Money and going to MSNBC
• President Obama's missed opportunity
• His book, Greedy Bastards: How We Can Stop Corporate Communists, Banksters, and Other Vampires from Sucking America Dry
• Will he write another book?
• His thoughts on the Trump administration's tax policy
• What would he tax instead of income?
• Are we heading toward an American oligarchy?
• How does he feel about transaction taxes?
• What is Helical Holdings, and how did he become involved?
• How his travel for Helical has changed his worldview
• How can people get involved? (Visit the website)
• His role with Tastytrade
• Is he an options guy?

This Week in Futures Options 50: Are Soybean Collars Back?

Posted May 1st, 2017

Topics this week include:

• WTI
• Gold
• Soybeans

Futures Options Feedback Listener questions and comments

• Question from LlillyPod - What is up with Soybeans? Good collar territory again.
• Comment from Tommi - I think WTI weeklies struggle because producers are focused on the longer portion of the curve.
• Question from Neil Avere - Can you rundown Quikskew again. Still not really sure how to read it.
• Comment from Stallon - Why so much concern about low crude volatility? We are just in a new volatility regime for crude right now. Just because crude Vol is low does not meant that selling it is not a winning trade. Seeing the same thing in broad equity volatility right now.

Volatility Views 252: Did VIX Drop Too Much?

Posted May 1st, 2017

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

• VIX Cash - 10.36
• VVIX - 76.66, back in the toilet.
• CBOE Skew Index - 142.55, still rich.

Russell's Weekly Rundown:

• VIX Options: Mon - 975k, Tues - 801k, Weds - 475k, Thurs - 571k, ADV - 734k
• VIX Call/Put - 2.7/1; Total 8.81m (6.55m Calls, 2.27m Puts)
• Earnings Volatility: Alphabet, Amazon, Intel, Starbucks, Alcoa, Chipotle

Volatility Voicemail/OptionsQuestion of theWeek:

Earnings Season is upon us. Big names are reporting soon. Which is your pick for the largest % move post-earnings?

• $AMZN - 36%
• $GOOGL - 26%
• $CMG - 30%
• $MSFT - 8%

Listener questions and comments:

• Question from FContangotrader - What is your 2 cents on this article? Thanks.
• Comment from Lolzi - Could we all just get along and agree that VXX erodes relatively predictably? Who really cares if its roll yield or flying pigs as long as you can count on it with some degree of certainty?
• Question from JJonQuin - You say VIX call to put of 2-3 is normal. What is not normal? When should we get alarmed? 5? 6? Higher?

Crystal Ball: Wild and reckless prognostication.

Last week:

• Mark L. - 12.75
• Mark S. - 16
• Russell - 13.25

This week:

• Mark L. - 11.5
• Mark S. - 11
• Russell - 11.95

OICs Wide World of Options 36: Rolling Option Positions and Listener Questions

Posted May 1st, 2017

Host Joe Burgoyne answers listener questions about mini-options and investor resources. Then on Strategy Spotlight, Kevin Davitt of CBOEs Options Institute defines what it means to roll an option position and why investors might want to consider doing so.

 

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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 Central