Your Inside Source for Options Information

July 10, 2017

July Options Volume & Market Share

Year-to-date options volume up 1%

On July 3, OCC announced that cleared contract volume in June reached 387,597,223 contracts, a two percent increase from the June 2016 volume of 378,908,938 contracts. OCC's year-to-date average daily cleared contract volume was also up two percent from 2016 with 17,174,603 contracts.

Exchange-listed options volume reached 374,402,693 contracts in June, a two percent increase from June 2016 volume. Year-to-date average daily options volume is up one percent with 16,617,442 contracts.

Equity options volume in June was 336,306,793 contracts, a four percent increase from June 2016. This includes cleared ETF options volume of 141,879,877 contracts last month, a 14 percent decrease over June 2016 volume of 165,801,003 contracts. Index options volume in June was down 16 percent with 38,095,900 contracts.

Here are the details (Source: OCC):

 

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Episodes you may have missed from Options Insider Radio last week

Option Block 633: Nukes, Volatility and Crazy Tesla Puts

Posted July 7th, 2017

Trading Block: VIX ends near the top of the range. It was up to 13.05 at its highest. Tesla down 7.2% yesterday, due to concerns of slowing Model S and Model X sales. The numbers are out: OCC announced today that cleared contract volume in June reached 387,597,223 contracts, a 2% increase from the June 2016.

Odd Block: TSLA Jan 2019 50 puts and Jan 2018 20 puts continue to trade. Back and forth trading in Tesla Motors (TSLA). Puts trade in LG Display Company LTD. (LPL)

Strategy Block: Uncle Mike Tosaw discusses the recent silver environment.

Mail Block: Options question of the week

Blue Apron $APRN is down over 10% from its #IPO price. Assuming #Options were listed, what trade would you make?

• Buy Dec 10 Call for $1
• Buy Dec 9 Put for $1
• Sell Dec 10 Call for $1
• Not Touching $APRN

Listener Questions: What's on your mind?

• Question from Sal06 -@Options you think AAPL $147 call for June 30th is a good idea?
• Question from Nelly2 -Just so I am clear on the spread assignment thing. If I am in SPX, then I just get cash if the index closes inside my spread. But if I am in a stock, then I get the stock?

Around the Block: WTH is happening in North Korea? VIX responds in kind. S&P 2400. Non-farm payrolls. Google fine.

 

Options Playbook Radio 165: GOOGL Skip-Strike Butterfly Part Two

Posted July 6th, 2017

Last week we looked at a GOOGL skip-strike butterfly. Staying on the same page, we will put on a new paper trade as a follow up for that one. You can find this on page 108 of The Options Playbook. This is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

In this episode:

• A review of last week
• What was the trade?
• What did it cost?
• What happened since?
• What are we doing now?
• Setting up the trade
• Selecting strikes
• What about expiration?
• Max loss and gain?

Do you have a question that you want featured on an upcoming episode of Options Playbook Radio? Send Brian an email at: theoptionsguy@invest.ally.com.

 

Best of Option Block: 500th Episode Spectacular

Originally posted on February 19, 2016

Trading Block: Welcome to our 500th episode. Today's special panel includes: Mark Sebastian, Mike Tosaw, Andrew Giovanazzi, and our most beloved former panelist Alex "The Viceroy" Jacobson. They discuss:

• How many exchanges are too many exchanges?
• Options Insider question of the week
• The SEC
• Citadel
• Transaction fees
• Talking free of compliance issues
• And so much more...

Odd Block: Rolling calls in Coca-Cola Company (KO), calendar spreads trade in Time Warner Cable (TWX), and put sellingHess (HES)

Mail Block: Listener questions and comments

• Question from TennisGr8: I've been hearing a lot lately about gamma scalping. How does it work, and who should use it? Is this second-order Greek becoming the new options darling?

Around the Block: Are the bulls back in force? Always be prepared for a downturn.

 

This Week in Futures Options 58: Crazy Product Rundown

Posted July 3rd, 2017

Topics this week include:

• Crude/WTI
• Gold
• Corn

Futures Options Feedback: Listeners take over the show

Options Question of the week: Let's get back to basics. #Options are great way to get long (bullish) exposure to stocks & futures. What is your favorite way to go long?

• Long Call/Call Spread
• Short Put/Put Spread
• Stock(Future) Replacement
• Bullish Risk Reversal

Listener questions and comments:

• Question from Andre - USO, WTI or XLE? Which is the best way to play a bullish rise in oil? Maybe with a straight call vertical 2-3 months out?
• Comment from Morgan -How many bitcoins does it take to buy 1000 tulips?
• Question from LJC6V - Is gold looking good for a collar here? Maybe 2-3 months out?
• Question from Fundconcept - Do you think the rise of activist shareholders pressuring oil giants to mitigate climate change can make an impact?
• Question from Engin9 - What are the most unique options in the CME product suite?

 

Volatility Views 261: Volatility Smorgasbord

Posted July 3rd, 2017

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

• VIX Cash - 11.44, VVIX: 93.78
• CBOE Skew Index - 129m, slightly calmer than last week.
• VIX Futures - Front month: 0.65 Second month: 1.25

Russell's Weekly Rundown:

• VIX Options: Mon - 630k, Tues - 724k, Weds - 510k, Thurs - 1.16M, ADV - 685K, Total 8.32m (6.68m Calls, 1.65m Puts)
• VIX Call/Put: 4.1 / 1
• OIV - 29.35
• OVX - 30.46

Volatility Voice Mail: Options Question of the week

Let's get back to basics. #Options are great way to get long (bullish) exposure to stocks & futures. What is your favorite way to go long?

• 50% - Long Call/Call Spread
• 23% - Short Put/Put Spread
• 13% - Stock(Future) Replacement
• 14% - Bullish Risk Reversal

Listener Questions: What's on your mind?

• Question from John Shippen -If I buy ATM premium, maybe an ATM iron condor, a few weeks before earnings then sell it the day before the announcement, is that a good play? Essentially free decay plus capture the rise in volatility along with any swings in the underlying.
• Question from FContangotrader -Do you guys have an idea when $VXX $UVXY will do reverse split? I am asking for a friend of mine.
• Comment from David Kotlyar -UVXY reverse split July 17th
• Question from SvxyBug -Mark, Mark, and Russell, Thanks for a great show. Two questions for you. If SVXY somehow goes the way of TVIX, would you imagine that XIV would go with it or is it managed independently of SVXY? Second question. Is using the call put ratio on VIX much of a leading indicator on the price movement of VIX? If so, do you normally see lead times in seconds, minutes, hours, days, or no lead time at all? Thanks very much for the show.

Crystal Ball: Your prognostication headquarters

Last week:

• Mark L. - 9.70
• Mark S. - 10.05
• Russell - 9.25

This week:

• Mark L. - 9.85
• Mark S. - 10.05
• Russell - 10.23

 

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Thursday:
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