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

March 21, 2016 Options Insider Trader Newsletter 

Options Insider Broker Madness

Elite Eight

Wow, we are having fun with this! In case you missed last week, The Options Insider was dreaming of a way that we could make March Madness even more special for our audience, and then it hit us. Let the people decide! We picked the top 16 options brokers. You pick from there. After a week of voting, here is where things stand:

We have some big matchups this week, so make sure your voices are heard!

Register your votes here:

  • Twitter: @Options
    • Take the poll!
    • PLUS, every time you like or share the poll of the day, you will be entered into the drawing
  • Facebook: Facebook.com/TheOptionsInsider
    • Every time you send us a message with your pick for the day, you will be entered into the drawing
  • Email: Questions@TheOptionsInsider.com
    • Every time you send us an email with your pick for the day, you will be entered into the drawing
  • StockTwits: StockTwits.com/OptionsInsider
    • Every time you send us a message with your pick for the day, you will be entered into the drawing

Whoa! That's a lot of ways to enter. Yes, it is. But this is Chicago, where we encourage you to vote early and often.

The prize: Democracy!  We’re still figuring it out, but will include an Amazon gift card, Kindle Fire, Options Insider swag, and more.  And we’ll work on bringing a major Duomo from the winning firm onto a live show for your questions and comments.

Voting dates

Second round:

  • March 21-22: OptionsHouse vs. TradeStation and E*Trade vs. SogoTrade
  • March 23-24: TD Ameritrade vs. Interactive Brokers and TradeKing vs. SpeedTrader

Third round:

  • March 28-29
  • March 30-31
Final round:
  • April 1-3

The winner will be announced LIVE on the April 4 Option Block (and on FB, TWTR after it records)

It’s time to let your voices be heard, Insiders!

Stats of the Week

  • VIX Cash Range: 13.75 - 27.85
  • S&P Cash Range: 2005.23 - 2052.36
  • SPX 30-Day Implied Volatility: 12
  • SPX 10-Day Realized Volatility:  11
  • SPX 30-Day Realized Volatility:  17
  • SPX Risk Premium (30-Day Implied - Realized): -5
  • Market Risk Premium (VIX Cash - SPX 30-day Implied Volatility): 2.02
  • S&P Skew Index
    • 03/14/2015  133.30
    • 03/15/2015  132.45
    • 03/16/2015  125.42
    • 03/17/2015  126.65
    • 03/18/2016  126.75

That's So Unusual

The week in unusual activity

Near the money call buyers jump in SCHW:  7000 SCHW Apr 29 calls went up on the ISE. 

Size CLF OTM Calls Trade: 2000 $CLF Apr 5 calls went up on the NASDAQ in one block

Calls Roll in PVG: 1500 PVG Mar 5 calls traded over Mar 4 and Apr 5 calls in 1 block on the PHLX marked spread.

Calls roll up in XLK: 21804 XLK Mar 43 calls tradedover Apr 45 calls on the CBOE marked spread. 

Possible Short Call Roll in GEL: 5800 GEL Jun 35 calls traded over 2900 Jun 30 calls on the PHLX marked spread.

Calls trade in EEM: 725000 shares of EEM went up through the offer with the call trading on the offer. 

XOP 1-by-2 Put Trade: Paper bought 5,000 XOP April 26 puts & sold 10,000 XOP April 24 puts against it.

BMY Call Buyer Active: This trade appears to be a straight call buyer or buyers that think BMY is in a position to rally through the next quarter.

NKE Bull Calendar: Paper sold NKE March 62.5 calls at .21 bought the March24 (weekly) 62.5 calls for 1.36.  The total block of trade was 5300 with 7,000 or more trading in total. 

Put Roller Moving out of FCX: Paper traded the FCX Mar 18 8.5 put over the Mar 24 Weekly 9 put for .36. 

Large BAC OTM Call Buyer: 9340 BAC Apr 01 Weekly 14 calls went up on the PHLX marked sold last. 

VALE Short-term Put Buyer: 20000 VALE Mar 3 puts went up in 1 block on the PHLX. 

KMX 1-by-2 Put Spread: Paper bought 6,000 KMX April 50 puts & sold 12,000 KMX April 45 puts against it for a net debit of .70.

BBD Put Buying: Paper bought 55,000 BBD June 6 puts paying .28.  This was in addition to 55,000 traded on Friday, essentially doubling the short exposure in BBD.

 

Strategy 101: Brought to you by TradeKing

Inverse, Skip-Strike Butterflies, Contined

Lately, we started discussing inverse skip-strike butterflies. In Options Playbook Radio 78: When Should You Use Inverse Skip Strike Butterflies, we are discussing times when it is a good idea to use inverse skip strike butterflies.

In that epsiode, Brian discusses:

  • What will the Fed do?
  • Setting up an inverse skip strike butterfly on the bearish side of the S&P 500
  • What will it cost?
  • What do you want to happen?
  • What is the risk?
  • Don’t forget about margin
  • What is the best-case scenario?
  • What is the maximum reward?
  • And more

If you want to hear it for yourself, you can download it now.

 

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