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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.
 

April 4, 2016 Options Insider Trader Newsletter 

Options Insider Broker Madness

Final Round is on NOW!

You have made your voices heard, and so we bring you the Options Insider Option Broker Madness Final Match:

Voting started last Friday, but it's going on through most of the trading day on Monday, April 4, so make sure you have your opinions heard. 

How to vote:

  • 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

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

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.

Stats of the Week

  • VIX Cash Range: 13.00 - 15.89
  • S&P Cash Range: 2028.31  - 2075.07
  • SPX 30-Day Implied Volatility: 11
  • SPX 10-Day Realized Volatility:  10
  • SPX 30-Day Realized Volatility:  12
  • SPX Risk Premium (30-Day Implied - Realized): -1
  • Market Risk Premium (VIX Cash - SPX 30-day Implied Volatility): 2.10
  • S&P Skew Index
    • 03/28/2015  127.74
    • 03/29/2015  132.61
    • 03/30/2015  128.67
    • 03/31/2015  122.03
    • 04/01/2016  124.03

That's So Unusual

The week in unusual activity

Bears Pounce on DE: Paper bought 6,390 DE June 60 puts for .42 & over 8,000 of these have traded on the day.

Long-Term Bulls Active in BUD: Paper bought 20,000 BUD Jan 2018 170 calls delta neutral paying 2.75. 

DXJ Bullish Call Activity: Net on the day, paper bought the DXJ April 22-May 6 44 call calendar for .28 15,000 times.

PSTG Time Combos Trade in Size: 4200 PSTG May 20 calls went up on the AMEX marked price variation. 

DVAX Call Spreads & Puts Trade: 4790 DVAX Oct 22/28 call spreads traded over Jul 15 puts for 1.15

CL Call Buyers Active on the Open: Paper traded 7900 CL Nov 80 calls for .61.

VIPS Call Spreads Trade over Puts: Paper traded 10000 VIPS Aug 13/17 call spreads and 10 puts for 1.2 over .95.

Call Buyers Jump into AKS: 2379 AKS May 06 weekly 4.5 calls went up in one block on BATS. 

Collar in FOLD: Paper bought 3,000 FOLD April 6 puts & sold 3,000 FOLD April 9 calls for a net .20 debit.

Big FEZ Straddle: Paper sold 15,000 FEZ April 32.5 calls & 15,000 FEZ April 32.5 puts for a net of 1.10.

XLI May Put Spread: Paper bought 83,000 XLI May 6 weekly 53 puts & sold 83,000 of the May 6 weekly 50 puts for a debit of .35.

Strangle in PF: Paper sold 1,000 PF June 40 puts & 1,000 PF June 50 calls. Based on the move in IV this customer was selling premium. 

FXI Bullish Call Action: Paper bought 30,000 FXI August 36.5 calls, with over 25,000 in one block, paying .69 across the board.

 

Strategy 101: Brought to you by TradeKing

Iron Butterflies, Contined

Last week, we started to take a look at Iron Butterflies. In Options Playbook Radio 81: Iron Butterflies, Continued, Dan Sheridan was back with Brian, they are discussed how to set up an iron butterfly on the RUT. You can find this on page 106 of the Options Playbook, or on OptionsPlaybook.com.

They discuss:

  • Looking at a two-week iron butterfly in RUT
  • Where has RUT been for the last six months?
  • Setting things up, and why might width be different?
  • What is the risk?
  • Why do this in a volatile market?
  • How and why is this repeatable?
  • What is the plan?
  • And more

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

 

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