Highlights of this week in options: top stories, the most unusual options trades, the best in unusual activity, and more.

April 24, 2017 Options Insider Trader Newsletter

Notable Earnings This Week

'Tis the season...earnings season

Company Name Time Wall St. EPS Est. 
4/24/2017
ALCOA CORP  AA  After Market Close 0.55
AMERIPRISE FINL  AMP  After Market Close 2.52
BARRICK GOLD CP  ABX  After Market Close 0.24
HALLIBURTON CO  HAL  Before Open 0.04
4/25/2017
3M CO  MMM  Before Open 2.07
AT&T INC  T  After Market Close 0.74
CHIPOTLE MEXICN  CMG  After Market Close 1.28
JETBLUE AIRWAYS  JBLU  Before Open 0.24
XEROX CORP  XRX  Before Open 0.16
4/26/2017
BOEING CO  BA  Before Open 1.91
GOLDCORP INC  GG  After Market Close 0.08
NASDAQ INC  NDAQ  Before Open 1.05
PEPSICO INC  PEP  Before Open 0.9
PROCTER & GAMBL  PG  Before Open 0.94
4/27/2017
ALPHABET INC-A  GOOGL  After Market Close 7.24
AMAZON.COM INC  AMZN  After Market Close 1.05
AMER AIRLINES  AAL  Before Open 0.53
CME GROUP INC  CME  Before Open 1.2
FORD MOTOR CO  F  Before Open 0.34
INTEL CORP  INTC  After Market Close 0.65
SOUTHWEST AIR  LUV  Before Open 0.62
STARBUCKS CORP  SBUX  After Market Close 0.45
4/28/2017
EXXON MOBIL CRP  XOM  Before Open 0.9
GENERAL MOTORS  GM  Before Open 1.44
UBS GROUP AG  UBS  Before Open N/A




This week's Options Insider Trader Newsletter Is Sponsored By




Upcoming Economic Reports

A preview of what may move the market this week

TIME (ET) REPORT PERIOD FORECAST PREVIOUS
MONDAY, APRIL 24
8:30 AM Chicago Fed national activity index   -- 0.34
TUESDAY,  APRIL 25
9:00 AM Case-Shiller home price index Feb. -- 5.90%
10:00 AM Consumer confidence index April 123.1 125.6
10:00 AM New home sales March 588,000 592,000
THURSDAY, APRIL 27
8:30 AM Weekly jobless claims 22-Apr 243,000 244,000
8:30 AM Advance trade in goods March -$63.9bln -$64.8bln
8:30 AM Durable goods orders March 1.10% 1.80%
8:30 AM Core capital equipment orders March -- -0.10%
10:00 AM Pending home sales March -- 5.50%
10:00 AM Rental  vacancy rate Q1 -- 6.90%
FRIDAY, APRIL 28
8:30 AM Gross domestic product Q1 1.00% 2.1% (Q4)
8:30 AM Employment cost index Q1 0.60% 0.50%
9:45 AM Chicago PMI April -- 57.7
10:00 AM Consumer sentiment (final) April 98.3 98.0 (April)

 


 

Options Insider Radio Network 

Episodes you may have missed from Options Insider Radio last week

Option Block 613: The Shiny New PHLX

Posted April 21st, 2017

Trading Block featuring guest co-host Jill Malandrino, Global Markets Reporter NASDAQ.

  • The brand spanking new PHLX trading floor.
  • SPX and the VIX
  • North Korea and Trump meeting Italian PM

Odd Block: Call rolls trade in Walmart (WMT), puts trade in Bank of America (BAC) and ratio call spreads trade in Starbucks (SBUX)

Strategy Block: Uncle Mike Tosaw discusses the importance of gamma.

Around the Block: What are we looking at that might move the markets next week?

Options Insider Radio Interviews: Revenge of the Trading Pits

Posted April 21st, 2017

In this episode, Mark is joined by Kevin Kennedy, Senior Vice President and Head of U.S. Options at Nasdaq.

They discuss:

  • Everything old is new again: new PHLX trading floor opens
  • Why update a physical trading floor?
  • Fifteen legs!
  • Smaller footprint, larger impact
  • Happy 227th anniversary!
  • What products are available?
  • What has the response been from the industry?
  • Strong market share on the PHLX
  • What's next for Nasdaq?
  • Is six exchanges enough for Nasdaq?
  • Education outreach efforts
  • Is there a visitor's gallery for the new floor?

Options Playbook Radio 155: AMZN Skip-Strike Butterfly

Posted April 20th, 2017

It's earnings season again. As such, we're looking at a skip-strike butterfly to capture some earnings move. You can find skip-strike butterflies on page 108 of The Options Playbook, on OptionsPlaybook.com, or on the Amazon Kindle edition.

In this episode, Brian covers:

  • A review of last week's UAL butterfly
  • Lesson to learn: Don't try to hit a home run with a butterfly
  • Putting on a skip-strike butterfly with calls
  • Picking the expiration
  • Looking at the implied volatility
  • Picking strikes
  • What is the net credit?
  • What is the maximum risk?

Option Block 612: NFLX the Widowmaker Wimps Out

Posted April 18th, 2017

Trading Block: VIX preparing for the French election.

Earnings today (after the bell):

  • United Airlines - $UAL - 70.37USD, Price increase 1.29 (1.87%), ATM Straddle - $2.50, approx. 3.5%
  • Netflix - $NFLX, 146.56USD Price increase 3.64 (2.55%), ATM Straddle - $12, approx. 8%

Odd Block: Call spread selling in Thor Industries Inc. (THO), call buying in Texas Instruments Inc. (TXN), and put spread buying in SPDR Euro STOXX 50 ETF (FEZ).

Mail Block/Options #QuestionOfTheWeek

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

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

Listener questions and comments concerning Game Day Dog question:

  • 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, should not all of them have been assigned?
  • Question from AddJack - You answered a question from Gamedaydog on Tuesday's episode about a put spread gone bad. Is this a reason not to trade spreads if these sort of complications can pop up? Think I would rather stick with stock thank you.
  • Question from Tony Rather - Fun show. Thanks to you, Rock Lobster, and Uncle Mike for educating, informing and educating us each week. I have a follow up to the listener mail question from last show in which the listener and Uncle Mike said he was long stock against his put spread. They both said his stock would expire after seven days. But stock does not have an expiration date. Please clarify as I am obviously missing something.

Around the Block: What's on our trading screens for the rest of the week?

Earnings!

  • Bank of America
  • Charles Schwab

This week in the market:

  • Apr 18: Housing Starts, Industrial Production
  • Apr 19: Beige Book
  • Apr 20: Jobless Claims
  • Apr 21: Existing home Sales

Best of Volatility Views: Election Special Part Two: Volatility After Dark

Posted April 17th, 2017

This Best of Volatility Views was recorded on November 8, 2016.

The resurgence of Donald Trump in the U.S. election is weighing heavily on markets around the globe. We break down the historic action in VIX, Dow, SPX and more live on this special late-night episode of Volatility Views.

Best of Volatility Views: Election Special, Part One

Posted April 17th, 2017

This episode of Volatility Views was recorded and posted on November 8, 2016.

You want a Volatility Views looking at election volatility in real time? Well, Mark, Russell and the greasy meatball got together and did just that.

Best of This Week in Futures Options: Trump vs. Oil Traders

Posted April 17th, 2017

Originally posted on January 23, 2017, this "Best Of" This Week in Futures Options features Blu Putnam Chief Economist of CME Group.

Topics in this episode include:

  • The election, inauguration
  • WTI/Brent spread
  • QuikStrike

Future Options Feedback: Listener questions and comments

  • Question from Jeff Myers: What is the prediction for platinum options?
  • Question from Eddy: Is the trade in crude more cautious right now, or are the bulls all in? Is it an all-in trade?
  • Question from Sean: When it comes to currency options, is there a market, like Euro, that trades more smoothly?
 

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/

 


Stats of the Week

  • VIX Cash Range: 13.46 - 15.76
  • S&P Cash Range: 2332.51 - 2361.37
  • SPX 30-Day Implied Volatility: 11.39
  • SPX 10-Day Realized Volatility:  7.73
  • SPX 30-Day Realized Volatility:  6.97
  • SPX Risk Premium (30-Day Implied - Realized): 4.42
  • Market Risk Premium (VIX Cash - SPX 30-day Implied Volatility): 3.24
  • S&P Skew Index
    • 04/17/2017  139.63
    • 04/18/2017  137.29
    • 04/19/2017  140.20
    • 04/20/2017  146.85
    • 04/21/2017  148.42


That's So Unusual

The week in unusual activity

Calls and Puts Trade in SLCA

Calls Trade In HD

Calls Trade in JBLU

Massive SBUX Ratio Call Spread Trades

Puts Trade in BAC

Possible Roll and Double Down in WMT

SCSS Combos Trade

MAT Ratio Put Spreads Trade

RIG Calls & Stock Trade

Bearish Outlook into BJRI Earnings

VIAB May Call Spreads

Size MDR Calls Trade

FEZ Put Spread into French Elections

TXN Synthetic Straddle

THO Short call Spread

 

Strategy 101: Brought to you by TradeKing

Options Playbook Radio 131: CVX Front Spread with Calls

Posted October 27th, 2016

In this episode of Options Playbook Radio, we are talking about a front spread with calls. You can find this on page 80 of The Options Playbook, on OptionsPlaybook.com, or in the Amazon Kindle version.

In this episode, Brian discusses:

  • A review of last week
  • Chevron (CVX) will announce earnings before the open on 10/28
  • What kind of move can we expect?
  • Setting up the trade
  • Picking the expiration
  • What strikes to use?
  • What is the maximum upside? Risk?
  • What about margin?

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


 

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