Your Inside Source for Options Information

April 30, 2018

Featured Interview

Making data more accessible 

Options Insider Radio Interviews: Celebrating A Tasty Victory with Tom Sosnoff

Posted April 27th, 2018

In this episode, Mark is joined by Tom Sosnoff, Co-CEO at Tasty Trade.

They discuss:

• Winning the Options Broker Madness tournament in their first year participating
• What sets Tasty Trade apart from the competition?
• The first year in the life of Tasty Trade
• New entrants shaking up the options space
• No charge for closing trades!
• Is there any intention of going public?
• The challenge of creating compelling content

Listener questions:

• When can I trade futures options in an IRA account on Tasty Works?
• Does Tasty Works offer portfolio margin and API access?
• What is his option of portfolio margining?
• What about the lack of after-hours trading for options?

Tom talks about

• Market making
• Liquidity
• Naked calls in an IRA

 

Upcoming Economic Reports

A preview of what may move the market this week

 

Options Insider Radio Network 

Episodes you may have missed from Options Insider Radio last week

Option Block 711: AMZN, MSFT and INTC Earnings Palooza

Posted April 27th, 2018

Trading Block: Earnings:

• AMZN - 1460, ATM straddle 90, approx. 6%
• MSFT - 92, ATM straddle 4, approx. 4%
• INTC - 51.38, ATM straddle 2.40, approx. 5%
• GOOGL - ATM straddle 54, approx. 5%

Odd Block: More Jan 2019 50 "catastrophe" puts in Tesla Motors (TSLA). Apr 12.5 Puts in CNH Industrial NV (CNHI). Line in the sand puts in L Brands Inc. (LB). Line in the sand puts in Dicks Sporting Goods Inc. (DKS).

Mail Block: Options question of the week

We dig up many strange options positions at the Options Insider. Some seem credible while others are just head scratching. Which of the following open options positions do you think has the best chance of actually becoming a winner?

• 49K TSLA Jan 2019 50 P
• 197K VXX Jan 2019 10 P
• 65K GLD Jan 2019 200 C
• 146K SPY Dec 2019 150P

Listener questions and comments:

• Question from BTavares -Hey great show. I'm looking at this chart from FT and it makes me wonder if I should concentrate my trading in the last 30 minutes of the day to increase the liquidity for my options trades. I wonder if this also applies to less-liquid options names.
• Question from Yancy - I heard Tom Sosnoff say on your interview show that there are 20 active names and 75 tradeable names in the options market for retail and that's about it. Do you concur?

Around the Block: What's on the radar for the all-stars?

 

Options Playbook Radio 206: Facebook Earnings Play

Posted April 26th, 2018

We are in the tech portion of earnings season, so let's take a look at Facebook. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, or on the Amazon Kindle edition.

Specifically:

• Where is FB trading right now?
• What is the situation with FB?
• Can we sell the put spread for enough of a credit to buy a call?
• Setting up the put spread
• Selecting strikes
• Looking to buy a call from the proceeds
• Selecting the strike
• What do we want to happen?
• What is the risk? Reward?
• How you can double up to catch up
• Some rationale on time frame

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.

 

Option Block 710: You Are All Stupid

Posted April 24th, 2018

Trading Block: VIX down. Vol futures down. Gold vol is very low. 10-year yield at 3%. Metals get the crap kicked out of them.

Earnings: GOOGL - ATM straddle: 54, approx. 5%. More tech earnings to come.

Odd Block: More Jan 2019 50 "catastrophe" puts in Tesla Motors (TSLA). Puts trade in Chicago Bridge & Iron Company (CBI). Calls trade in D. R. Horton Inc. (DHI). Puts trade in CBL & Associates Properties, Inc. (CBL).

Strategy Block: Uncle Mike Tosaw discusses hedging during earnings.

Mail Block: Options question of the week

VIX is back in the mid-teens. Are you buying this Volatility reprieve or is this merely calm before the storm? Quite simply - Where do you think VIX will end the week?

• 24% - Here: 16-18
• 19% - Higher: 18-20
• 18% - Even Higher: 20-25
• 39% - Lower: 14-16

Options Flash Poll: The proposed third exchange from @MIAXexchange will raise the total number of U.S. Options Exchanges to 16. Is this a good thing for the options market? Is it the straw that finally breaks the camel's back? Or are you too busy getting great fills to care?

• 44% - More Exchanges the Better
• 22% - Please Make It Stop
• 34% - Don't Care: I get filled

Listener feedback:

• Question from LNC - SVXY calls suck now. What about selling the puts? Is there any juice in those or have they been drained as well by the bid redo last week?

Around the Block: GOOGL post-earnings. Andrew wants to let it all out. SVXY makes him angry. Will tech earnings produce a higher SPX?

 

This Week in Futures Options 99: Talking Crazy Crude and Crypto

Posted April 23rd, 2018

Topics this week include:

• Crude
• Gold/Metals
• Indices
• Bitcoin

Futures Options Feedback: Listeners have their say

• Question from GWCH - You buying that this cryptocurrency rally is based on the sharia law approval?
• Question from Kennedy -Soros is getting into Crypto. Time to sell?
• Comment from CTWills - The news of a 16th options exchange make me appreciate the predominantly centralized futures options market. With so many exchanges it's hard to even get a 10-lot spread off these days.
• Question from Taz41 - Can the strategy screener tool handle ratio spreads and iron condors? Thanks for the great show and so many great tools.
• Question from BLIO3T -Which products are the ones that you guys have the hardest time wrapping your heads around? For me, it's the hogs. No thanks.
• Comment from Tom Frank - Not sure I agree with your consensus that covered calls are better for novice options traders. Puts typically have higher implied volatility and should generate higher returns than covered calls over time and have a better risk/reward. The novices would probably appreciate the higher returns.

 

Volatility Views 302: Mother of All VIX Bombs

Posted April 23rd, 2018

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

• VIX Cash is still hanging around in the teens.
• VVIX - 97, pretty much unchanged from last week.
• VIX Options - ADV: 1.05M, VIX call/put: 2.6/1, Total 6.29m (4.55m Calls, 1.74m Puts)
• How is the VIX July 10-75 strangle doing?
• VXX - 42.50
• OIV - 26.5, 2.5 points lower than last week.
• GVZ: 12.25, 1.25 points lower than last week.

Volatility Voicemail: Last week's volatility flash poll

Which product/segment do you think will experience the most Volatility over the coming trading week (through the close on Friday 2/20) SPY SPX VIX WTI Crude Gold Bitcoin BTC GLD USO

• 28% - S&P500: SPY, SPX. VIX
• 8% - Gold: GLD, Comex
• 28% - Crude Oil: WTI, USO
• 36% - Bitcoin: BTC

Options question of the week

VIX is back in the mid-teens. Are you buying this Volatility reprieve or is this merely calm before the storm? Quite simply - Where do you think VIX will end the week?

• Here: 16-18
• Higher: 18-20
• Even Higher: 20-25
• Lower: 14-16

Yet Another Options Flash Poll:

The proposed third exchange from @MIAXexchange will raise the total number of U.S. Options Exchanges to 16. Is this a good thing for the options market? Is it the straw that finally breaks the camel's back? Or are you too busy getting great fills to care?

• More Exchanges the Better
• Please Make It Stop
• Don't Care: I get filled
• Comment from Patrick Snoke -The more the merrier....my fills are.

Listener questions and comments:

• Question from Scott Somer -Think this product will get enough liquidity? https://twitter.com/MIAXexchange/status/986334029338300416
• Question from Niddles - VIX settlement WTF?!?
• Question from Allen - What are the VIX mullet guys up to these days?

Crystal Ball: Wild and reckless prognostication

Last week:

• Mark L. -17.17
• Mark S. - 15.00

This week:

• Mark L. -16.35
• Mark S. - 15
• Mike - 15.85

 

Advisors Option 66: The Great Listener Question Palooza

Posted April 20th, 2018

Office Hours: It’s all listener questions today

• Comment from Avery - Interesting piece about when to fire your financial advisor on the street today. Your thoughts? https://www.thestreet.com/story/13747897/1/5-justifiable-reasons-why-you-can-and-should-fire-your-financial-advisor.html
• Question from B. Goldberg - I have a large number of SMAs with smaller balances (typically $5,000 - $10,000) from new clients. Most are younger clients willing to try their hands at newer products beyond stocks including options. What are some good options use cases for these types of smaller accounts?
• Question from Leslie Necing - Morningstar has an option-based category for their funds. But it includes everything from volatility funds to overlays so it’s hardly useful for comparison purposes. What categories should they include to provide more meaningful comparisons for people looking for options funds?
• 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?
• Comment from Papa Scalp - What’s scary is how many "advisors" don’t have a clue, not even for portfolio protection or insurance.
• Question from FKnight67 - Is there one position or strategy that you feel applies best to the vast majority of financial advisors and asset managers.
• Question from Mark Clyde Brant: Will rising vol persist all year? VIX above 20, VXX above 40, half the time? What is the current version of the Swan process? Someone should back test how often fading the skew, by buying the cheaper options, wins.
• Question from Allan Tullman - There was a lot of research last year regarding selling put options to harvest risk premium. Now that volatility is back is this an ideal time to harvest premium via put selling or does the increased volatility increase the probability of getting whipsawed?
• Question from Nevos - There are a ton of tickers for the Swan DRS. Are they pretty much all the same or is there a primary fund that I should look for?
• Question from Bill T. - Is there a platform you recommend for advisors looking on onboard more options clients?

 

Where to Find Options Insider Radio?

Do you know all the ways you can access Options Insider Radio

          

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