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

March 14, 2016 Options Insider Trader Newsletter

Options Insider Broker Madness

Let the people decide

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! This is a democracy, right? So we decided to take the best of a big election year and the best time in college sports (ahem, a KU alum might be on staff) and put them together. And so, we bring you the first ever Options Insider Broker Madness.

How does it work?

We picked the top 16 options brokers. You pick from there.

Throughout the tournament you will make your voices heard! You vote on the broker match ups, and the victor will move on to the next round.

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

First round:

March 15 (Two match-ups)
March 16 (Two match-ups)
Mach 17 (Two match-ups)
March 18 (Two match-ups)

Second round:

March 21-22 (Two match-ups)
March 23-24 (Two match-ups)

Third round:

March 28-29
March 30-31

Final round:

April 1-3

Winner announced LIVE on the April 4 Option Block (and on FB, TWTR after it records)

It’s time to let your voices be heard, Insider

Stats of the Week

VIX Cash Range: 16.28 - 19.59
S&P Cash Range: 1969.25 - 2022.37
SPX 30-Day Implied Volatility: 15
SPX 10-Day Realized Volatility: 16
SPX 30-Day Realized Volatility: 19
SPX Risk Premium (30-Day Implied - Realized): -4
Market Risk Premium (VIX Cash - SPX 30-day Implied Volatility): 1.50
S&P Skew Index
- 03/07/2015 124.01
- 03/08/2015 123.53
- 03/09/2015 123.47
- 03/10/2015 130.04
- 03/11/2016 128.99

That's So Unusual

The week in unusual activity

XRT Put Spreads: Paper bought 10,000 XRT April1 45/43 put spreads for .58 & 10,000 of the regular April 45/43 put spreads trade .61.

SVU Call Buyer: A trader covered a short position by buying 7,000 SVU April 5 calls for .80.

EWI Call Spread: Paper sold to close 11,000 EWI April 12 calls and bought 11,000 EWI April 13 calls paying between .20 & .25.

ULTA Ratio Call Spreads Trade: 6480/3240 ULTA Mar 160/170 calls went up in two blocks on the ARCA.

XRT Puts Roll Up and Out: 15000 XRT Apr 40/Jun 42 put spreads went up in 2 blocks on the PHLX

Puts Trade in WETF: 1584 WETF Jun 12.75 puts went up in one block on the AMEX marked Out of Sequence

Calls & Puts Trade in HLT: 10000 X 5000 HLT Apr 20 puts over Apr 21/22 call spreads went up in three blocks on the CBOE marked spread.

Puts Trade in BTU: 9925 BTU Apr 3 puts went up in 1 block on the ARCA.

CPB 1-by-2 Put Trades: Paper bought 25,000 CBP 60 puts for 1.85 & sold 50,000 May 55 puts at .65 against it.

LGF Calls Trade: Over 9,000 LGF calls have traded, primarily the March 25 strike

Call Action in DUST: Paper bought thousands DUST March 5 & April 5 calls, the biggest trade being the April 5 calls tied to stock for .45.

Massive Midterm Call Buying in VALE: 29400 VALE Apr 5.5 calls went up in one block on the PHLX.

Strategy 101: Brought to you by TradeKing

Inverse, Skip-Strike Butterflies

Today, we are reviewing Option Playbook Radio 76: Inverse Skip-Strike Butterflies. If you need to brush up on the inverse skip-strike butterfly, you can find that on pages 112 (calls) and 115 (puts) of The Options Playbook. You can also find all of this information on OptionsPlaybook.com.

This time Brian discusses:

The set-up of an inverse skip-strike butterfly
What do we want to happen?
How much will it cost?
What is the maximum risk?
What is the maximum gain?
When does this make sense?

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

The Options Insider on Social Media
The Options Insider app
The Options Insider Radio Network