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Options Insider Radio Network 

Episodes you may have missed from Options Insider Radio last week

Option Block 619: Look Out Below

Posted May 12th, 2017

Trading Block: Yesterday's earnings: SNAP. Today's Earnings: Macys, Kohls, Nordstrom.

Strategy Block: Uncle Mike Tosaw discusses horizontal ratio spreads

Mail Block: Listener questions and comments

Options Question Of The Week: This volatility implosion is starting to make people nervous. $VIX #Limbo Time: How Low Can It Go in 2017?

• 9.0 is the bottom (38%)
• No lower than 8.5 (18%)
• Cannot get below 8.0 (15%)
• <8.0, Lookout below! (29%)
• Question from Fund Concept: Doubt that Trump will get rid of H1Bs considering global talent is crucial for U.S economy. Any thoughts?

Around the Block/This Week in the Market:

• May 11: Jobless Claims, PPI
• May 12: Consumer Price Index, Retail Sales, Consumer Sentiment

 

Options Playbook Radio 158: Huddle Palooza, Part 1

Posted May 11th, 2017

It's all listener questions in this episode of Options Playbook Radio. Do you have questions that you would like answered on the show? Send them to Brian at theoptionsguy@tradeking.com.

• Question from JLaws: My dad is coming over to the dark side slowly but surely/ He is thinking about dipping his toes in the options pool. What product do you recommend for an options newcomer making his first trade?
• Question from Sharkcake: I have been approved to trade options by my Brokerage but I have yet to execute my first trade. What trade do you recommend?
• Question from Meats: Would you describe successful options trading as primarily singles and doubles or more swing-for-the-fences home runs?
• Question from Mary: What is the shortest expiry available for plain vanilla options?

War/Military Industrial Complex, The Business Show Episode 15

Posted May 11th, 2017

In this episode the crew answers the question "war, what is it good for?" And the answer is...money. They'll talk the military industrial complex, perform the market beat, and bring Dylan's roommate back for another round of Losin' It with Luke.

 

Option Block 618: Time for VIX Limbo

Posted May 9th, 2017

Trading Block: VIX near the single digits at the 10 handle. Is the VIX too low? Earnings: Tesla, Facebook, Disney and EA.

Odd Block: Puts trade in iShares MSCI Germany Index (EWI), call buying in JD.com Inc (JD) and calls trade in iShares MSCI South Korean Index (EWG)

Mail Block/Weekend Flash Poll:

These are crazy times for all markets from commodities to equities and volatility. Which crazy level will we hit first?

• VIX Below 9
• SPX Above 2500
• WTI Below 40
• AAPL Above $160

Listener Question:

• Question from Paul - Mark, What is your take on the timing of an investment in silver right now? I just got out of the market and I am thinking of investing in silver - either the traditional options or an ETF that tracks physical bullion like SLV or SIVR. I am leaning towards SIVR for its lower expense ratio.
• Question Real Yute - Greetings, could you please explain how stock option is priced? My Internet provider will not allow me to access other page than Facebook. I only need to know how the pricing work. For example can $2 buy a contract?
• Comment from Charlie T. - Not really an options guy. I do not need the headache of yet another unknown element aka time. It?s hard enough just picking my stocks, deciding price points, exit points, etc.

Around the Block: Disney, EA and SNAP

 

This Week in Futures Options 51: Crude Volatility Strikes Back

Posted May 8th, 2017

This week in the CME hot-seat we have special guest Dan Passarelli, Market Taker Mentoring.

Topics this week include:

• WTI
• What's the word on the street for futures traders?
• Aggressive return to old skew?
• Fed week came and went
• Treasuries
• Eurodollars

Futures Options Feedback/Weekend Flash Poll:

These are crazy times for all markets from commodities to equities and volatility. Which crazy level will we hit first?

• VIX Below 9
• SPX Above 2500
• WTI Below 40
• AAPL Above $160

Listener questions: What do you want to know?

• Question from Paul - Mark, What is your take on the timing of an investment in silver right now? I just got out of the market and I am thinking of investing in silver - either the traditional options or an ETF that tracks physical bullion like SLV or SIVR. I am leaning towards SIVR for its lower expense ratio.
• Question from Lawrence T. - You guys (I think it was Nick) talked about rent a while back. You should make that into a regular segment or report. Maybe who is paying the rent report?
• Question from Charles Allenby - Can I not just do most of this stuff in my stock portfolio using USO, GLD and other ETFs? Do I really need to open a futures account?

Volatility Views 253: Mystery VIX Trader Revealed

Posted May 8th, 2017

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

• VIX Cash - 10.46, practically unchanged from last week.
• VVIX - 78, same as last week.
• CBOE Skew Index - 130.5, 12 point lower than last week.

Russell's Weekly Rundown:

• VIX Options: Mon - 572k, Tues - 746k, Weds - 469k, Thurs - 657k, ADV - 734k
• VIX Call/Put: 3/1: Total 9.68m (7.26m Calls, 2.42m Puts)
• CBOE begins trading options on VelocityShares EVIX - contract based on VSTOXX Short-Term Futures Investable Index

Earnings Volatility:

• Tesla Close - $311, ATM Straddle approx. - $17, approx. 5.5%
• FB: Close - $151.80, ATM Straddle - $5.63, approx. 3.7%

Volatility Voicemail: AAPL Earnings Pop Quiz

AAPL $146.50, Weekly straddle $5 (3.5%). IV30 = 21%, Weekly 155 Call= $.27, 138 Put = $.27 Would you rather?

• Buy Straddle/ Iron Fly, 18%
• Sell Straddle/Iron Fly, 34%
• Buy Call, 44%
• Buy Put, 7%

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

Listener questions and comments:

• Thank you for the fan art, inspired by Don Schlesinger, sent in by Hawkeye.
• Comment from Don S. - Mark, listening to the recent Vol Views from RMC, I was going to write to you, in any event, when, all of a sudden, I heard my name invoked with respect to buying options ("I hope Don Schlesinger is not listening")! Well, I was listening, so will share a few views on vol. :-). I am continually amused by the staying power of the traditional topics. Thirty-three years ago, when I began in the industry, but most especially after the 1987 crash, when the skew was born, it became axiomatic to me that the only good thing to do with an option was to sell it or not sell it. Today, you have invented new-fangled terminology, such as "risk premium harvesting" (which I find adorable!) to describe exactly the same thing: to sell options because their implied volatilities are, on average, considerably higher than what realized volatility of the underlying goes on to display. I am not sure why we need the new vocabulary, but whatever makes people happy. You can either be the insurance company or be the policy owner. Which one makes the most money?
• Question from @fksthlm - Did something just break in VIX ETFs? Was the move 11:45 Wednesday, hindsight guess I was only surprised to the sensitivity to futures at this level

Crystal Ball: Wild and reckless prognostication

Last week:

• Mark L. - 11.50
• Mark S. - 11
• Russell - 11.95

This week:

• Mark L. - 10.55
• Mark S. - 9.95
• Russell - 10.10

 

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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