Option Block 304: Polar Vortex Be Damned Trading Block: Another day, another mild selloff. Crazy fat finger print in gold futures. Apple taking it on the chin. Polar vortex = Boom market for snow derivatives? Odd Block: Put sellers trade in Wyndham Worldwide Corp. (WYN), put sellers trade in iShares MSCI Japan ETF (EWJ), closing call sellers trade in iPath S&P 500 VIX Short Term Futures ETP (VXX). Xpress Block: Apple, Twitter and Facebook: the three perennial favorites on the OX desk.  Strategy Block: Uncle Mike Tosaw discusses mortgages. "Should I pay it down or keep it for a tax deduction?" Around the Block: Jan 6: Factory Orders, ISM Non-Mfg Index. Jan 7: International Trade. Jan 8: ADP Employment Report, EIA Petroleum Status Report, FOMC Minutes. Jan 9: Jobless Claims. Jan 10: Employment Situation

Option Block 303: Wither Single Name VIX? Trading Block: Most of the major indexes selling off about 1%. A lot of put activity on the street. The numbers are out for 2013! Odd Block: Puts trade in SPDR S&P 500 ETF Trust (SPY), puts trade in Yahoo! Inc. (YHOO), review from 11/25: Ziopharm Oncology Inc. (ZIOP), also Titan International Inc. (TWI), review from 10/24: Jive Software Inc. (JAIV), also Covanta Holding Corp. (CVA), review from 06/27: New York Community Bancorp, Inc. (NYCB), also Goodrich Petroleum Corporation (GDP), and review from 10/03: YPF SA (ADR) Strategy Block: We have a special guest for today's strategy block, featuring Andrew Giovinazzi. He discusses some vol structure and strategies ahead of the Bernanke announcement. Around the Block: What to watch post-Fed? Alcoa 1/9.

Option Block 302: Looking Forward, Looking Back Trading Block: Predictions for 2014 Mark - I wish they could finally get the Minis right. Hopefully someone wiIl figure out how to aggregate spread flow across exchanges to improve spread execution, less exchanges, less fixation by retail on VIX/ETFs and more migration to futures/futures options.  Andrew - I like a VIX low print prediction.  Where the market is going and the forgotten sectors in 2013 and how they will fair. Alex - Cash settled equity options (that would be pretty sweet). Hope the tax folks don't pass mandatory mark to market. No transaction tax. After hours trading. Five year Leaps. Adjust maker/taker to discourage HFT. An industry standard for delisting zero open interest series. Electronic trading for the options on the big SPU.Predictions: More consolidation - I was wrong about this occurring in 2013. Tosaw - Another big year for SPX. Waiting to see Apple earnings tomorrow before I can give a prediction for 2014. I would like to see more volume in the jumbo SPY. Feeling "straddlish" for 2014. Mark -  I predict more exchanges, something occurs to clip the wings of this rally in 2014, not much appreciable Vol in the marketplace until the next big government debate at end of Q1. Xpress Block: Twitter was the only big name on the desk. A very important discussion on the 1256 issues. Mail Block: Tell us what you want to hear. Question from Jason KruseRUSE @Jkruse81- @Options thought about a strategy of maxing out margin to buy a lot, then selling a deepish ITM covered call. Is there a name for that? -@Options or have you guys talked about something like that where I could get a better idea of risks? Comment from Gary Barisi - That much action because they got a $50M insurance claim!? Question from Jack @Itrumpdoom - Option Block Front or Back? I apologize if this question has been covered in the last year and I missed it, in dealing with ratio vertical spreads, will you please explain what makes a front spread front, and a back spread back? Thanks

Option Block 301: Twas the Day Before Christmas Trading Block A strong rally on the street on the back of a strong consumer sentiment - A sea of green. Everyones favorite fruit company, Apple up during the day.Some substantial moves in CBOE. VXX hits a low for the year.  Odd Block Call buyers trade in Meritor Inc. (MTOR), put sellers trade in Ambac Financial Group, Inc. (AMBC), call sellers trade in Select Sector SPDR Financial (XLF) and huge rolls in Hercules Offshore, Inc. (HERO) Xpress Block Apple, CBOE and social networking were all seeing a lot of action today.   Mail Block Question from Dylan, Fort Nelson, British Columbia: I have a question on diagonal spreads today. Is there a good way to capitalize on the long vega these spreads generally have without actually selling the long vega option? I've been looking at using the premium gained in the option in a Vol pop to buy "free" puts in VIXM or VXZ and extract some of this premium instead of just watching the Vrol grow and then go away. Maybe a good one for Uncle Mike as I know he's a big diagonal fan. Thanks,

300th Episode Spectacular! Hooray for our 300th episode! Mark Sebastian, Mike Tosaw, Andrew Giovinanzzi, Alex Jacobson, Mike Cavanaugh and John Grigus join Mark "The Voice of Options" Longo, to reminisce about the all their favorite moment and shows of the past three years. Comment from Phil M. - Great show guys! Fun times listening to the Option Block. Keep up with what you guys love to do. Comment from Jay Thomas - Congrats to "The Voice of Options" on 300 episodes of The Option Block! Keep them coming as this show makes my Tuesdays and Fridays much more bearable. Comment from Ian Getz - Congratulations in advance on the 300th episode of The Option Block. Mike Tosaws BBI and successful Apple saga were my favorite 2013 moments! Comment from Jim Jam - Love the show! Whats with all the nicknames? Why does Mark L not have a nickname? How about "The Leader", "The General", "Host Master" or "Barry White of Options"? Comment from Mr Ill - Thanks Mark for bringing us so much great content over the years, and congrats to the whole all-star panel on Option Block 300. I enjoy the whole network, but OB is far and away my favorite. There is nothing else like it on the air. Comment from Tim Meads, Montana - I just discovered this show and I am looking forward to perusing the other 299 episodes in the archive. Heres to episode 600! P.S. Where can I get a jaunty, viceroy cap? Comment from Dave S., Burbank, CA - My favorite OB show title is "Netflix Strangles Children" from episode 261! Wishing you continued success.

Option Block 299: Band-Aid for a Severed Jugular Trading Block: A broad rally across the street on the backs of strong manufacturing data. Fed meeting coming up.  Herbal Life halted today. SEC promising to crackdown on insider trading. What exactly is HFT?  Stock buybacks accounting for substantial percentages of ADV.  Odd Block:  Puts buyers trade in Royal Bank of Canada (RY), puts trade in ZION Bancorp (ZION), calls trade in Noble Corp. (NE), and calls buyers trade in KBR, Inc. (KBR). Xpress Block:  Herbal Life, Oracle, Lululemon all popular names on the desk today.  Strategy Block:  A shout out to the bears.  Around the Block: Fed on Wednesday? Will they taper?

Option Block 298: Only Getting 80% Trading Block: A mixed day on the street. Post non-farms, what is left to give us some vol? Where does one look for premium writers in this environment? Tosaw Update. OX Update. Odd Block: Calls buyers trade in CYTRX Corp. (CYTR), calls buyers trade in Glu Mobile Inc. (GLUU), and call buyers in Bean Inc. (BEAM) Xpress Block: Twitter and Facebook was where the action was on the OX desk. Strategy Block: Uncle Mike Tosaw breaks down the recent adjustment to his position in GLD. Around the Block: Is there anything to look forward to in this environment?

Option Block 297: Talk of Tesla & Twitter Trading Block: Not a lot to drive the market today. Futures are trading a discount to the cash. Non-farm payrolls. Xpress Block: Tesla and Twitter were lighting up the OX desk today. Also, the United/American Airlines merger - What happens to those investors? Around the Block: Keeping an eye on the 10-year and Home Builders earnings. 

Option Block 296: Apple Fire Sale Trading Block: A mild selloff on the street. Some vol has been creeping back into the market ahead of Non-Farms. The Apple zealots are back. Pressure continues on the metals. Odd Block: Calls trade in Arris Group Inc. (ARRS), calls trade in CME Group (CME) REVIEW FROM 10/24 - Calls trade in Jive Software Inc. (JIVE) Xpress Block: Rumors that Fords CEO may be coming to Microsoft? Gold and energies were the hot products today. Mail Block: Facbook Question comes in under the wire Question from Dylan Harris - I have a point I would like discussed on the Option Block. Can you guys discuss locking in gains for long premium trades? Do you gamma scalp with stock or sell options against the position? Or is it best to just close the position and save the commission costs? Love the shows, thanks! Around the Block: Non-Farms tomorrow. But then what? Not much on the horizon for the rest of the year.

Option Block 295: Saving Yourself Some Headaches Trading Block: Is there any vol on the horizon? Amazon drones - watch your head! Black Friday a resounding meh, Cyber Monday still a question mark. The Tosaw update: GLD, SLV, APPL, etc. Odd Block: IB Options Brief: Best Buy Co. (BBY), calls trade in Intel Inc. (INTC), combos trade in Sprouts Farmers Market Inc. (SFM), calls trade in Forest Labs Inc. (FRX), rolling puts in Avon Products, Inc. (AVP). Mail Block: Question from Mountain Man Tim - This question is for Uncle Mike. How do you typically determine the put level that you purchase on a stock? For example, you have mentioned being long the 460 put in Apple. How do you determine the put level that you/your client uses as a hedge? Question from Jon Jones - What is the ASPs take on Twitter? Long calls? Long puts? Other? Around the Block: What could possibly bring back activity to the market? Non-farms coming up. Farewell Bernanke!

Option Block 294: You’re Soaking in It Trading Block: Positioning going into the short weekend. Where are the long premiums? Where is the free juice? Are OX clients still trading or are they already on vacation? ZNGA love - time for Andrew to gloat. TWTR giving up some of the gains. Odd Block: Hail Mary call buying in The CBOE Volatility Index (VIX), calls trade in Ziopharm Oncology Inc. (ZIOP), and in Titan International Inc. (TWI) Xpress Block: The Warren Buffet put in Exxon? The success of OX mobile trading. Mail Block: We’re taking your questions Question from Allan Schwartz - Why is open interest still only updated daily? Do we not have enough information now to update that more frequently, if not instantly? If I buy to close 30 calls, that should be reflected in the OI instantly, not the following morning. Question from Biz Man - Does OX offer any systems to automate trading? Example - Automatically write a 5% OTM call on XYZ underlying every month/week, etc. It would save some hassle for busy clients.  Around the Block: The holiday approaches. Markets closed Thursday, and half-day on Friday.

Option Block 293: The Gift that Keeps on Giving Trading Block: A strong rally on the street with VIX futures getting utterly destroyed. Twitter has not been the big vol mover as expected. Tesla continues to take it on the chin.  Zynga: the stocky hat keeps on giving. Odd Block: Yesterday review - Calls trade in Star Scientific, Inc. (STSI), risk reversal trades in the CBOE Volatility Index (VIX), calls buyers in China Life Insurance Company (LFC) Xpress Block: New technology coming soon to the OX website. Strategy Block: Uncle Mike discusses the importance of having a variety of different strategies in your trading. Around the Block: Russell Index is coming back. It will be a race to see who can take down option premiums. S&P taking out 1,800. 

Option Block 292: TWTR Is No FB Trading Block: The first day of trading for Twitter options was very interesting, but yet not the day everyone was hoping for. With these numbers, Twitter will not set a first-day options trading record as Facebook did on its debut. Alex said Dec 50 calls were popular at OX today.  CBOE now disseminating VXST every 15 seconds instead of once per day. Interesting article on Barron’s today slamming VXX and other VIX ETPs. Odd Block: Review from last show - Calls trade in Tile Shop Holdings (TTS), put spread trades in Darling International Inc. (DAR), calls trade in Kindred Healthcare, Inc. (KND) Mail Block: Question from BROB What do you guys think of put/call ratios? I never hear you mention them on the show. Useful tool or overhyped indicator? Around the Block: Home Depot earnings before the open tomorrow.

Option Block 291: Twas the Night before Twitter Trading Block: A mild rally on the street today. A tepid outlook from Walmart, doesn't bode well for the economy. Cisco taking in on the chin post-earnings. Happy Twitter Options Eve! Any client interest in trading twitter options? Odd Block: Crazy call buyer in The CBOE Volatility Index (VIX), calls trade in Tile Shop Holdings (TTS). Xpress Block: No Alex today. So it’s time for the Trading Patterns Guessing Game - Special Twitter Edition. Strategy Block: Uncle Mike Tosaw discusses when to roll up a call on a diagonal call debit spread. Mail Block: Whacha wanna know? Question from Ham Shack - I have read some articles that say Twitter options, particularly the put options, will be very wide and expensive on launch day. I can wrap my head around wider spreads for a new issue, but why would the puts cost more? Is it just a question of bears bidding up the volatility? Around the Block: Will the SPX break 1,800? Could we see the highs of the year next week?

Option Block 290: Keep that Theta Rolling Trading Block: Twitter IPO released, started at $26. Can't wait to sell the puts. Tesla taking it on the chin, breaking through the 140 handle. Priceline closed down. Mail Block: Keep those questions coming Question from Ian @mategio - Can you please expand on these formation you guys talked about (Apple, buy the guts, sell the wings)? Can I see them in Options Xpress? Question from Ed Vangelos - Alex's comment on the Ford collar from last week;s episode disturbed me. He essentially said that selling the stock was better than using a collar to hedge the position, because no one wants to sell the call. So is Alex just not a fan of collars, or does he actually think it’s better to be in cash than to have a hedged equity position? Question from Richard D. -  Mark and the crew, I am posting my questions in more atomic increments so that you can decide which are worthy to be read, or queue them up for the future. One reason we like options is that we create similar effects to long or short stock positions with less capital tied up and at risk. However, it raises the question of what safe and liquid options do we have for that cash that we keep in reserve? Around the Block: Update on Priceline. 

Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 Option Block 289: What a Twit! Trading Block: November 14 is official day Twitter goes public. CBOE earnings on Friday, CME before the open - both resounding "mehs." Apple actually closes around where it started. Blackberry taking it on the chin. Again. Odd Block: Calls trade in Berry Petroleum Co. (BRY), calls trade in Applied Micro Circuits Corp. (AMCC), calls trade in Marin Software Inc. (MRIN), and calls trade in ValueVision Media Inc. (VVTV). Xpress Block: Cue the game show music for yet another edition of "The Trading Patterns Game." Listener Mail:  Comments and questions from our audience. Comment from Options Curator - Just BTO an $AAPL Feb14 515 Call at $31.20. Let see how #ChristmasHoliday plays out. @Options #options #trading #investing Question from BillyMo @b1llmoo - 2nd question. Why does SPY and its options not trade the same hours as /ES and their options? Seems like it exchanges would love it. Around the Block: Tesla, Groupon and Qualcomm earnings this week. TSLA is very important for OX clientele.

Option Block 288: The Exciting Road to Nowhere Trading Block: A selloff at the very end of the day. Most major indexes down half a point. Interesting movement post Facebook and Apple earnings. In hindsight, the Apple skew makes a lot more sense post Google earnings. Odd Block: Puts trade in Ultrashort Euro ProShares (EUO), calls trade in Tile Shop Holdings Inc (TTS), calls trade in Fortress Investment Group LLC. (FIG) and spread trades in Apollo Global Management (APO) Xpress Block: Facebook displaced Apple is the top 5 most active. GLD has dropped out of the top 10, surpassed by SLV. This has been the most active October on record at OX! Listener Mail Extravaganza: We have even more mail! Question from Herb Slojewski - Where can I get info on how to trade Twitter options, Options guy? What sort of plan do you have for Twitter when it starts trading. Thanks. Question from BillyMo @b1llmoo - As I sit here watching Apple go from down 25 to green. Is there any updates on After Hours option trading? Question from Richard D - Mark and the brain trust! I have 2 more questions for the queue! I happened to be the temporarily happy holder of a bullish FB diagonal Nov 2 50 / Nov 8 55 call spread that I held through earnings. As I watched the stock very quickly balloon almost 10% to around $54 and change I thought about what I could do in the after hours to lock-in any of this gain, knowing it could likely disappear by morning (yes Alex I love your pressing for evening+ trading hours in all instruments!). If I just owned the call (which I do not do due to the Vol crush), I could have shorted stock, but alas I had a spread with a short in it. I was wondering if there are any options that don't leave me naked any stock to capture any of this after hours gain? I suspect not but I figured I would ask because this has been a topic on your show. I also was not sure if there was a different way to structure the trade to begin that would have afforded me some after hour opportunities with something other than a vertical or bullish time spread like I have? Oddly enough, my broker does NOT count owning a call as a hedge against a short stock position and gives me the full margin position of the short w/out the hedged call, so even a call/short stock after hours move would not work for me (synthetic put :) Is this common? Thank you! Around the Block: Exchange week coming up. CBOE 11/1 Before & CME 11/4 Before. Disney - 11/7, Groupon - 11/7, Activision - 11/6 and Tesla - 11/5

Option Block 287: Trading Patterns   Trading Block: A mild rally on the street. Everyone is still playing the wait and see game after hours today with Apple. Interview Block: Guest: Mark Greenstein, CTA with Orchard Grove joins the gang as they discuss metals, rates, as well as the VIX products. Xpress Block: It is time once again for everyone’s favorite "The Trading Patterns" game! Around the Block: Still more earnings around the bend. Apple - 10/28, EA Games - 10/29, General Motors - 10/30, LinkedIn - 10/29, Facebook - 10/30, Marriott - 10/30, Take Two - 10/29 & Nokia - 10/29.

Option Block 286: Super Thursday Trading Block:  Another mild day on the street. Earnings-Palooza today! Ford before the bell. A newly revived Microsoft.  Amazon surges after hours. Zynga breaks the four handle.  Crazy developments in Apple post iPad. Odd Block:  Calls trade in Covanta Holding Corp (CVA), straddle trades in Microsoft Corp. (MSFT), calls trade in Silvercorp Metal Inc. (SVM), calls trade in Jive Software Inc. (JIVE). Xpress Block:  More interesting OX trading patterns. Apple is back! Around the Block: More earnings around the bend: 10/28 - Apple; 10/29 - EA Games, LinkedIn, Take Two, Nokia; 10/30 - General Motors, Marriott

Option Block 285: Listener Mail Extravaganza Trading Block: Navigating post-shutdown markets.  VIX Cash giving up the ghost post-shutdown.  Google, another big after hours more last week. Netflix (aka the Widowmaker) rallying hard pre-earnings.  Tesla taking in on the chin. Odd Block: Calls trade in Orbitz Worldwide, Inc. (OWW), large spread trades in iPath S&P 500 short term futures ETN (VXX), calls trade in Turquoise Hill Resources Ltd. (TRQ), and puts trade in China Ming Yang Wind Power (MY). Xpress Block: No Viceroy today - Let's play the trading patterns guessing game! Listener Mail Extravaganza:  Whoa!  We’ve got mail! Comment from Thepostguy “Not surprised by download volume”: Dear Option Block crew - Listening to the latest episode and hearing Mark's comment over the amount of downloaded hours of OB, this doesn't surprise me at all. This show is one of the very few sources of excellent option and industry content that I honestly cannot believe is free. The balance of viewpoints between each panelist brings a unique perspective that gives us great, actionable information. For myself, I work full-time and run a small side business. I managed to blow up an equity account in '08 and came to options as a way to balance the amount of risk to the 'market'. I find myself timing my evening walks to the length of your show content....if that is any indication of how this listener values your programs. When will the store be open that we can purchase our own fedora hats? Regards, Phil. Question from Jeremy - Hey Folks: Great show! Keep up the great work. Now that we have seen the success of Weeklies, do you think we will see Dailies? Or do you know how one could get exposure to daily expiration on such products as SPX? I noticed the CBOE has asked permission to start dailies, but I have not seen any product. I would expect the interest in such a product would be popular as the edge one might need to achieve to expiration can be smaller, but the end result compounded could be greater over a period of time if there are more opportunities to trade that position. Cheers, Jeremy Question from Meeshal: I trade index options on the Indian CNX Nifty Index (Bloomberg NIFTY: IND). Two weeks ago, with the Index at around 5300, I had sold 5800 calls expiring on the 26th of September. I did not sell the corresponding puts immediately as the market had run up over the past two days and I thought I could get a better rate if I waited a day or two. Since then, the market has run up some 11% and is currently trading at 5900. Two days ago, at around 5750, I bought back the 5800 September calls and sold the same number of 6000 October calls (expiring 31st October). Since then the price of the October calls has almost doubled. Would appreciate any ideas on how to get myself out of this mess. Thanks. P.S. Will share more details if needed. Around the Block: Earnings! - Thursday is a big day with Southwest, Ford, Zynga, Microsoft, and Amazon. Apple on 10/28.

Option Block 284: The Tosaw-Giovinazzi Show   Trading Block: Google up $43 after market. How long can the VIX go? Are we looking at the bottom? Gold reacts to the Fed tapering announcement. Odd Block: Calls trade in Ingersoll-Rand PLC (IR). Unusual activity in Cole Real Estate Investments (COLE). A put sale for income gone wrong in Seadrill LTD (SDRL). Trading all over the board in Real Goods Solar Inc. (RSOL). Listener Mail: Question from Uncle Al: I've heard the term maker-taker many times in regard to options exchanges. Can you explain what this term means and what traders should be aware of? Thanks for this fantastic program.  Question from Ibn Sayer: I have a question for Uncle Mike Tosaw. He has discussed the problems with annuities several times on the program. I wonder is it possible to construct my own annuity using listed option contracts? Around the Block: Google earnings, Goldman Sachs. Treasuries making a bit of a rally. 

Option Block 283: Kick the Can Trading Block:  A huge drop in VIX cash. Gold also got crushed today.  Plus, a very unusual trade in VXX. Xpress Block:  Everything on the equity options desk was active today Around the Block: Upcoming earnings - Alcoa, Google.  Waiting to see if Washington continues to kick the can. 

Option Block 282: A Whole New Kind of Stupid   Trading Block: There was a mild selloff on the street today. VIX cash continues to creep north, as the shutdown continues. Did VIX call sellers get out in time? Potbelly to join the ranks of high-flying IPOs? Tesla gain back all of the "fire losses". Odd Block: Calls trade in eBay Inc. (EBAY), calls trade in Dex Media Inc. (DXM), and puts trade in Miller Energy Resources Inc. (MILL) Xpress Block: A lot of Washington, rates and the dollar. Strategy Block: Given the current increase in VIX, how can gamma play a role in an out-of-the-money credit spread? Listener Mail: Question from Destin - I know you guys have discussed the optimal collar construction in the past. How do you guys decided between that construction vs. a more traditional zero-cost construction? Around the Block: Shutdown...Shutdown...Shutdown

Option Block 281: It’s Time for Histrionics Trading Block: The shutdown dance continues. VIX cash break the 17 handle. Tesla in a frenzy after car fire. Ackman/Icahn/Herbalife debacle.  CBOE glitch causes routing issues for NASDAQ. Odd Block: Puts trade in Covanta Holding Corp (CVA), calls trade in the SPDR Dow Jones Industrial Average ETF (DIA), collar trades in Consolidated Edison, Inc. (ED) Xpress Block: A ton of two-sided paper, e-mini activity and Tesla. Mail Block: Mega mail block, that is. Question from @Metegia (Ian) - @Options Great show! Could you please mention the date of the show at start? Intros, trading block, vol, but no context around date (Jun 4). Thanks! Mega Question from Richard D - Mark and Team, First let me say I LOVE your podcasts. I'll even listen to outdated episodes of the option block because in addition to the knowledge I can gain, you guys also have a great rapport with one another and are very humorous! Great job starting all this Mark! I wish you continued success. Now for my post (this is my 2nd post. My first post was on skew.) I've been trading options as a retail investor for about 2 years now. Its been an interesting experience. I generally trade vertical spreads in lieu of stock positions or occasionally directional calendars or diagonals. Although I have had some success with verticals I don't feel I am "optimizing" my positions. For example, I'm not always sure how far out to make the short position or keep the short closer to the long and trade more quantity. Also, sometimes I've put on verticals that are 3-4 months to expiration, only to find the underlying make a large move in my direction but the vertical not performing nearly as well! This not do to a major volatility change but more because it seems that they are so far out from expiration. I'm also not clear when a vertical is a "good deal" vs just going long the call or put. I have heard you comment many times about the skew in the OTM options making options look attractive, for example I think in this episode you mentioned Facebook. I have still not gotten to the point to recognize how to identify these. So my questions are: 1. Could you give an example using let's say Facebook, yahoo, or tesla on what a vertical looked like in the past and one that looks more attractive now? 2. Could you talk about tools that can help identify when verticals or even time spreads look "favorable"? Having a full time job and not having the money or time for a coach makes those options out of the questions. Now this being said, the spread may look favorable, but unless you hold to expiration it seems your short could remain at that skew quite a long time or even become more skewed, so I am not sure this is a great vertical strategy (I guess you'll let me know!). Tools for the retail investor could also be a good idea for a show, either the bootcamp show or another one. Thanks again, Richard Around the Block: More shutdown nonsense ahead - all eyes on Washington.

Option Block 280: Pre-Shutdown Put Bonanza Trading Block: Shutdown fears hanging over the market. Vol surging back into the marketplace, but Bloomberg says realized vol is nonexistent.  Odd Block: Calls trade in Northstar Reality Finance Corp. (NRF), calls trade in YPF SA (YPF), and puts trade in Intrexon Corp (XON) Xpress Block: How has the potential of a shutdown affected OX customers? More trading patterns! Strategy Block: A risk management and annuities rant.  Around the Block: The big deadline approaches.

Option Block 279: OTM Fly Breakdown Trading Block: There was a mild rally today. All Facebook all day at OX. Odd Block: Calls trade in Juniper Networks, Inc. (JNPR), puts trade in iShares MSCI Australia Index (EWA), calls trade in Hertz Global Holdings, Inc. (HTZ), and risk reversal trades in St. Jude Medical (STJ). Xpress Block: Biotech, mobile, and hedging activity pouring in. What are the GLD traders trading?  Let’s take a look: 1-SPY, 2-SLV, 3-APPL, 4-FB, 5-DUST (daily gold miners bear 3X ETF), 6- JCP, 7- USO, 8- GDX (market vectors gold miners), 9 - GE, 10 – TSLA.  What about SLV? 1-SDS, 2- GDX, 3-USO, 4-VXX, 5-SSO, 6-FB, 7-TZA, 8-SCO, 9-TNA, 10-AAPL. Mail Block: What do you want to know? ·         Question from Nocturne: trying to understand OTM butterflies. What’s a use case for an OTM fly vs. a simple vertical or ratio? Very confused. ·         Question from “Joe”: I haven’t been trading options for very long so forgive me if I’m out of line. I’ve been listening to your show for the past six months and find it very informative. But I also wonder if many of the concepts you discuss are simply over the heads of the typical retail trader such as gamma, vega, implied volatility, etc. I know I’m frequently confused by some of these topics. Does retail really need to know all of this stuff or is a more straightforward approach (like if you sell this option, your max loss is x, your max gain is y, you have z days until your trade expires, etc.) a better way to reach the masses without scaring them or putting them off options? I hope you read my question but, if you do, to avoid embarrassment please just refer to me as “Joe”. Around the Block: Debt debate and earnings approaching  

Option Block 278: Fading the Shutdown Trading Block: It was an aggressive day on the street, with a lot of love for Apple, up 20%. Call stupids go up in VIX.  Talks of Blackberry selloff continue. Odd Block: Puts Trade in Xilinx Inc. (XLNX), calls trade in Sierra Wireless Inc. (SWIR), calls trade in Covidien plc. (COV) Xpress Block: Today’s Xpress Block will feature a guest: Daril Wagner, Product Manager at OX, who will discuss some new tools available to clients - including the Trading Patterns and Options Patterns tools. Strategy Block: Calendars vs. butterflies Around the Block: The debt ceiling kerfuffle is back!  

Trading Block: A mild day on the street. Watch out! SPY ex-dividend today. Metals hosting a "Volapalooza" Odd Block:  Calls Trade in Zynga Inc. (ZNGA), calls trade in Eagle Bulk Shipping Inc. (EGLE), put buyers in Sealed Air Corp (SEE), and calls trade in Meritor Inc. (MTOR).  Xpress Block:  Tesla is still on a tear. CME metal trading very active. Listener Mail: You have the questions, we have the answers. Question from Buckeye6 - I am a new listener catching up on the archives. On an earlier episode, Mark mentioned the OX platform highlights which options qualify for reduced commissions to close. But I do not see what he is talking about. Where do I find this information? Thank you. Question for the Option Block from Luke: "Uncle Mike" has suggested that if one has a spread that has gone in the money, the short leg can be rolled up by at least one strike, with a goal of breakeven or near breakeven. He suggested waiting until the day before expiration, but I have an ITM spread, so thought I would look at it one day early. I have a bear call spread on SPY: Short Sep 170 (sold at $0.59), long Sep 172 (bought at $0.255), when SPY was at about $165. It never reached my 70% profit target, before going ITM this week. With the no taper announcement, SPY has gone to $173.03. Today (Wednesday before expiration) I could buy the 170 call for $3.07, and sell the 172 for $1.30, which looks very far from breakeven, unless I greatly misunderstood what he meant by breakeven in this context. Actually, the spread on the 170 call is 3.03-3.11, but still. Even if these calls went to 0 extrinsic, how could I ever get breakeven here? Or did I just get a really really bad price on my initial short fill? For completeness, the long 172 call is trading for about $0.94. Thank you for a great show! Around the Block: AKA taper watch

Option Block 275:  Predictably CrappyTrading Block: A mild selloff, but gold and silver took it on the chin.  AAPL down 30 handles in a dismal post iPhone announcement.  Ichan liked it at $500, he’ll love it at $470. Lulu earnings before the open...sheer pants knock the stock down 5%, well off the highs of $82 from earlier this year.Odd Block:  Puts trade in Mechel OAO (MTL), calls trade in Wendy’s Co. (WEN), and calls trade in Vera Bradley Inc. (VRA). Alex discloses that he knows way too much about women’s retail.Xpress Block: Lots of questions coming in about AAPL, LULU, and SPX.Mail Block:  Question from Contrails.Hi Mark, I really like your talk shows and loving all the humor. Thank you for educating and entertaining me all those night shifts that you guys keep me in company. I have one burning question for you regarding an observation I noticed today as I was following the SPY and SPY weekly options. First off, I am a noober. But i could not find an explanation for what I saw for those weeklys that are expiring in 4 days. So what happened is that the ATM and ITM calls were not following the price of the SPY. So as SPY was fluctuating up and down, the calls mentioned above were higher in price around 1030 AM EST compared with calls corresponding to same SPY price later during the day around 1300. The call price difference was about 15% which is a lot for home gamer like me. Why is that??? By the way I did not check the Puts, I'll look at it later today… Do the weeklys lose time value Theta as the hours go by during trading day? Or is this something related to the all mysterious Vega? But I plotted the greeks of those options on TOS and they were all flat lines, Confusing!!! Please enlighten me more Please don't mention my real name on the podcast. You can call me "Contrails" And please let me know if you get a chance the title of the podcast you'll answer my burning question. Your fan, ContrailsAround the Block:  Looking at gold, silver, and oil in light of next week’s FOMC meeting. VIX expiration next week.

Option Block 274: More Buyers than Sellers Trading Block: All is right with the world again! Most indices up over 1% today after Chinese export data beats expectations. Prepping for the Apple event. How big could this still be? Groupon continues to rally - announced acquisition of travel app Blink. CITI closing CBOT desks. Odd Block: Call spreads trade in SPDR S&P Homebuilders ETF (XHB), puts trade in CBOE Volatility Index (VIX), calls trade in Smithfield Foods Inc. (SFD), puts trade in iShares MSCI Emerging Markets Index ETF (EEM). Xpress Block: Lulu and Apple, as well as many other hot names on the OX desk. Mail Block: Question from Berger Meister - Just to clarify from your last show - A back spread is net long units and front spread is a traditional ratio? Correct? Why such dumb names? Question from N. Sanchez - I have heard a lot about volatility smiles, but from listening to your show, it sounds like the volatility skew actually has a downward slope to it. Does the volatility smile still exist or is it limited to odd circumstances such as the "Apple Zealots" that you have discusses on the show previously. Thank you so much for this tremendously informative program.   Around the Block: LULU earnings 9/12.

Option Block 273: Trades to Salivate Over Trading Block: It was a very mild day on the street. How did the holiday weekend volatility play out last week? It’s that time again - the volume numbers are in! Microsoft buys Nokia. Odd Block: Calls trade in Timken Company (TKR), NetApp Inc (NTAP), Oasis Petroleum Inc. (OAS), and Fastenal Company (FAST). Strategy Block: What happens when your covered call goes in the money? Mail Block: Question from Phillip Kay - What is the ASPs take on Tesla skew? Upside still steep and a good candidate for verticals or has that ship sailed? Comment from Mark Clyde Brant @MarkBrant1KM -@Options Tesla and Netflix managers are dumping shares en masse! Sep long Puts in play. Question response from bitcoinbravo - Hedging Bitcoin Mining Investments with Network Difficulty Futures: Part 1 – Hedging Shipment - http://thegenesisblock.com/hedging-bitcoin-mining-investments-with-network-difficulty-futures-part-1-hedging-shipment-delay/    Around the Block: Non-farms and Syria ahead.

Option Block 272: Presidential Rope-A-Dope, or Bags of Money Trading Block:  Labor Day weekend is nearly upon us. VIX cash above the 16-handle. Jobless claims are down, as expected.   HFT and algos appear to have had a negligible impact on the vol of major futures contracts. Odd Block:  Puts trade in Garmin ltd. (GRMN) Calls buyers in Taiwan Semiconductor Mfg. (TSM). Mail Block:  Question from Mike - I have been watching Dollar General for a while. What do you mean by the seller could be using an up-tick in volatility going into earnings for a better sale? Question from Tim C. - Is it true if I sell a time spread that OX will margin me as if I am naked short the longer-term option? If so I do not understand that? Why wouldn’t they treat it like a spread until the nearer-term option expires? Question from Avega - Why would I ever trade a back spread? Why waste money on a reverse ratio - say 3x2. Then I am just net long one contract - can I just save money and buy the one? Around the Block: Watch out for the weekend risk! Perhaps scoop some cheap premium on friday. Syrian developments?

Option Block 271: Sabre Rattling Rattles Markets Trading Block: A mild rally on the street until Kerry started sabre rattling in Washington, sending the markets down. NASDAQ, Goldman and others still facing heat over their tech meltdowns last week. BATS and Direct Edge merging. TABB Group predicts options commissions to shrink of the next few years.  Commodity rundown with Mike Tosaw. Odd Block: Large buy writes go up in Facebook Inc. (FB), and puts trade in ProShares Short 20+ Year Treasury ETF (TBF). Xpress Block: Tesla, Biotechs, and Facebook! Mail Block: Question from bitcoinbravo: Any thoughts on bitcoin -- especially as the flows continue into this emerging digital currency and we see with futures and derivatives market develop -- currently there is a lot of arbitrage opportunities between the various exchanges Question from Charles P.: I am an employee of a very large (and widely held) technology firm. As you might expect, a substantial amount of my net worth is tied up in the stock of my employer. However, I am expressly forbidden from trading any derivatives in my employers stock even for hedging purposes. So my question to you is - how do I hedge myself in this scenario? Around the Block: Glued to the news of Syria. Non-farms next week.

Option Block 270: Looking Behind the Curtain Trading Block: NASDAQ halts trading today over tech glitch. Many big names were impacted. Goldman Sachs screws up JPM options trading. Question from T_Pal: Should I be concerned about the wave of technology problems impacting the market? Can they impact my trading? Saw Mark L. quoted a lot of this. What's his take? Odd Block: Calls trade in Express, Inc. (EXPR), calls and puts trade in Accuray Incorporated (ARAY), and calls trade in Uranium Energy Corp. (UEC) Strategy Block: Uncle Mike Tosaw discusses the situation of a covered call moving in the money and the ways in which to think about it. Around the Block: A hopefully glitch-free week. Looking ahead to see what may be coming out of Washington.

Option Block 269: Listener Questions a Go-Go Trading Block: Another down day on the markets. The 3-year and 10-year are bumping up against levels we haven't seen in a while. Mail Block: Your questions, our answers Question from Lee Patterson - I've been an Option Block listener for a few months and you've inspired me to hedge my retirement plan through my employer. It has been 100% invested in the S&P 500 and unfortunately I cannot use options in this account. My idea is to go to cash in my retirement plan at work while buying 3 month at the money calls in SPY and rolling them when they are 1 month from expiration in my Roth account. To finance these I would sell the weekly SPY about 2-3% out of the money. Does this seem like a reasonable plan to participate in the upside while limiting losses or is there a better way? Thanks for your time. Lee Question from @Metegia - Which direction is a Risk Reversal, which is short RR? Descriptions conflict. Thanks. Question from A. Jackson - Andrew referenced "double butterflies" on a recent episode of the Option Block. Can you explain a little more about that position - how it differs from regular fly, when/why you'd want to use it, strike selection, etc. Thank you very much Mark for making so much excellent options content freely available to everyone. Your network is certainly one-of-a-kind and I'm glad to see that it is doing so well. Question from Richard D. - Hello! In this episode there is a discussion on taking advantage of TSLA skew and using OTM TSLA butterflies on both sides at strike. Could you explain a little more about skew, and if long/short butterflies are best given skew? Around the Block: FOMC minutes.  Keeping an eye on the 3-year and 10-year.

Option Block 268: Commodity Sea of Green Trading Block: A broad selloff across the board today.  Inflation fears spook the Fed and the market.  Cisco off 7%, looking at layoffs. Walmart off 3%.  A sea of green in the commodities. Record day in the VIX - only 133 contracts short of 1 million. Odd Block: Review from 7/29 - very well-timed paper in American Eagle Outfitters (AEO). calls trade in SPDR S&P Homebuilders ETF (XHB), and combos trade in Microsoft Inc. (MSFT). Xpress Block: Single leg WalkLimit goes live! Mail Block: Website comment from nrlbuild - Enjoyed your show as usual, always fun to have Mr. Sebastian on the air! I feel the need to stick up for Motley Fool a little. I have been a member since around 2000...and been in two of their options services since 2008. They actually have some good stuff with respect to options...I think even you tough veterans would agree if you understood. Unfortunately, the Fool universe is so large and varied, not unlike Seeking Alpha, that there is often as much junk as there is quality...it really depends upon which specific Fool service one subscribes. I have never understood why they don’t control that more carefully? Anyway, if it wasn’t for them I never would have come to options in the first place…and now I’ve found you guys! ;) Carry on! Ned Around the Block: More earnings? HPQ - 8/21. Keeping an eye on the 10-year.

Option Block 267: Betting Against Yourself Trading Block: A relatively flat day on the street. A big day for Silver and Apple –both  up 3%. It was a good day for Tosaw!  Blackberry exploring strategic options with the  stock up 11%. Tesla finally sells off. Odd Block: Review from 7/1 - Air Products and Chemical (APD), calls trade in Sanchez Energy Corp. (SN), combos trade in Rockwell Medical Inc. (RMTI), call spreads trade in Micron Technology, Inc.(MU). Mail Block: Question from D. Adams - What is the best way to express a long-term bullish position using options? Question from Terry Russ, Scottsdale, AZ - Can you guys run down the difference between an iron condor and an iron butterfly? When would I want to use one vs the other? Thanks for this great show.  Around the Block: Earnings are still happening. Cisco  on 8/14, and Cosi on 8/15.

Option Block 266: Juice and Paper Trading Block: Commodities rundown featuring Matt - starting with Nat Gas. The ride for Tesla continues. DNDN after the close. NVDA after the bell. Odd Block: Call buyers in Microsoft Corp (MSFT) and calls trade in Freeport-McMoRan Corp (FCX). Xpress Block: New single leg options transactions with the WalkLimit! Mail Block: Question from @SouthbayTrader1 -  @Options "Juice"? "Paper"?  (probably time for an overview of these two terms that we use so frequently on the show) Comment from nrlbuild: I have been listening to Option Block for a couple of months now...really enjoy the show. Have been long ATVI since 2009, got in via short puts. Wish I been listening to your show when you were discussing short strangles on it, I was always to scared it would be called away! I really enjoyed Volatility Views...listened to every single episode... and was wondering if it was going to be returning? The VolX site seems to be stagnate. Around the Block: DNDN & NVDA update.

Option Block 265: The Innovator Trading Block: Giving back some of the gains on the street today. A surprising pop in Blackberry. Apple touching near-term highs.  ALSO GLD, SLV, ETC Odd Block: Odd Block Review: Dendreon Corp. (DNDN), put spreads trade in DeVry Inc. (DV), put spreads trade in The Chubb Corp. (CB), calls trade in China Automotive Systems, Inc. (CAAS), and call spread roll in Deckers Outdoor Corp (DECK). Xpress Block: Tesla very active with earnings coming up. CBOE and Alcatel-Lucent active as well. Strategy Block: The credit spread with benefits. Around the Block: Upcoming Earnings: Groupon - 8/7, Tesla - 8/7, Disney - 8/6.

Option Block 264: Swimming in a Sea of Green Trading Block: A sea of green across the board. S&P crosses 1700 mark on strong manufacturing data. Unemployment claims at a 5.5 year low. Activision and LinkedIn earnings after the bell. CME reports a 27% rise in quarterly profits, still down 4%. Commodity rundown: metals, nat gas, coffee, etc.  It's number day again - The Options Industry Council (OIC) announced today that total options contracts traded in July was up 5.81%. Average daily volume for the month was up 1.00%. Year-to-date volume up 1.93%. Equity options volume up 4.39%. Average daily volume for equity options in July slightly off of last year’s contracts by 0.35%. Year-to-date equity options volume up only 0.16%. Odd Block: Calls trade in SPDR Gold Trust (GLD), calls trade in Nvidia Corporation (NVDA), puts trade in iShares MSCI Emerging Markets Index (EEM), and fly trades in Oil States International (OIS). Xpress Block: A very busy, non-expiration day at OX. Mail Block: We have such curious listeners! Question from MMax - Can you give us an update on mini-options? Question from George Roop, Nashville, TN - Can you explain why the hosts take such a dim view of USO? It's really one of the few viable ways for retail to make longer-term bullish bets on oil. Around the Block: Non-farms in the crosshairs. CBOE earnigns tomorrow before the open. Groupon 8/7, Disney 8/6, Nvidea 8/8, Tesla 8/7 after.

Option Block 263: The Wasted Year Trading Block: A mild selloff across the board. GLD sells off fractionally on the day. ISE Gemini set to launch Aug 5. CBOE announces new VIX trading hours. Odd Block: Pre-earnings run in Activision Blizzard Inc. (ATVI), stock replacement in Alcatel Lucent SA (ALU), interesting pre-earnings play in American Eagle (AEO), and was there a hedge in iShares MSCI Japan Index (EWJ)? Odd Block Review: Looking back to 6/27: Goodrich Petroleum Corp. (GDP) - stock trading $12.90, buying 6,000 Aug 15 calls for $.45. Stock now trading $17.50, calls worth $2.96 - a $2.50 profit = $1.5M. Still 10K open on strike - looks like he hasn't closed these yet. Xpress Block: "Big data week." It’s a wait and see situation.  Nothing can derail the Tesla train. Around the Block: A full calendar of economics this week. Non-farms Friday.

Option Block 262: Cramer Loves It Trading Block: Zynga earnings after the close. Someone paid 17% for a one-month straddle! Amazon earnings are also after the close. Facebook! Facebook! Facebook! Commodity rundown - An overview of recent action in futures/futures options. Options "insiders" come forward. Odd Block: Put spreads trade in Crocs, Inc (CROX), and calls trade in Denderon Corp. (DNDN). Xpress Block: Questions, anyone? Question from Tom P.  Are we ever going to see Walk-Limit on single leg trades? I'm a teacher so I can't always be there to close out my trades on the open. This is particularly difficult around earnings season. I may miss the only chance to sell my option for a decent price on the open because I'm away from my screens. I would love to be able to enter a target sale price for my options (long call, etc.) and then have OX walk the price down automatically until it hits the actual trading price. This would save busy people like me a lot of time, and potentially a lot of lost profits. Around the Block: An update on AMZN and ZNGA. TTWO coming up on 7/30.

Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 Option Block 261: NFLX Strangles Children Trading Block: Netflix earnings are after the bell. Could it be the return of the widow-maker? McDonald's down 3%. It’s never a good sign for the economy when McD can't make money. A follow-up on our good discussion on after-hours options trading from our last show.  Is 3pm still reasonable? Odd Block: Call ratios trade in Skechers USA Inc. (SKX), calls trade in Verisign Inc. (VRSN), puts sold on the World Acceptance Corp. (WRLD), and call sellers in General Growth Properties (GGP). Xpress Block: Metals and oil predominately featured on the desk today. Mail Block: The all stars channel their inner therapists, and Obi Wan Question from Doc Robbins. I just sold NFLX 240 260/280 July week 4 iron fly at $18 with stock at 259. Am I crazy? Longo would be proud. Question from Charles N. I’m looking at Ford July W 16.5-17.5 strangle for $.25. How's that for free gamma pre-earnings? Question from Mr_Work. Am I crazy, or is $.21 for Zynga July weekly 3.5 puts a lousy deal Question from George Winters. Microsoft July 35-34 put 1x2 for $.10 before earnings: winner or waste of money? Question from Joe Rigg. I tried to write the Blackberry weekly 9 put with OX, but the system kicked it out and said BBRY was now on increased margin. Why is that? How is this decided? Is it a decision by the broker or an industry wide decision? How is the new margin level determined? Help me Viceroy, you're my only hope! Around the Block: Earnings, Earnings, Earnings! Ford 7/24 before, Facebook 7/24 after, Electronic Arts 7/23 after, Amazon 7/25 after, Apple - 7/23, United Airlines 7/25 before, Zynga 7/24 after.

Option Block 260: Doing the Earnings Straddle Dance Trading Block: Earnings-Palooza: Google, Microsoft and more after the bell. Odd Block: Combos trade in Rite Aid Corp (RAD), paper buying calls in Covanta Holding Corp. (CVA), and puts trade in YY Inc. (YY) Xpress Block: This should be a very interesting expiration coming up. A little bit of everything is coming across the desk. Google and Microsoft both missed. Strategy Block: Mr. Tosaw discusses straddles as this week's strategy. Around the Block: One last check-in on Google and Microsoft. Upcoming earnings: Apple – 7/23, Zynga - 7/24, and Amazon - 7/25.

Option Block 259: Reverse Splits & Twinkies The all-stars are joined by guest co-host Henry Schwartz, the Founder of Trade Alert. Trading Block: A modest, broad rally on the street. Earnings season is in full swing. Pre-deal call in LEAP from Friday. Earnings action in Goldman-Sachs. CITI earnings before the open. Bloomberg beating the drum on VIX puts. Retail sales sluggish, up less than expected in June. Odd Block: Combos trade in United Online, Inc. (UNTD) Xpress Block: The Twinkie is back. A slow day as everyone is keeping their powder dry for the big earnings later this week. Around the Block: Earnings: IBM, Intel and Bank of America - 7/17; Microsoft, Nokia, Google and Chipotle - 7/18.

Option Block 258: Highly Accommodative Policy Trading Block: Uncle Ben's comments about "highly accommodative policy" spark yet another rally. It's going to be all about the earnings next week. It has been "rally ho" in the metals. Odd Block: Calls trade in Colfax Corp (CFX), puts trade in Atlas Pipeline Partners, L.P. (APL), calls trade in WisdomTree Investments Inc (WETF), and calls trade in Whiting USA Trust (WHX). Xpress Block: It's a race to 1,000 between Priceline and Google. Green lights all over the screen today. Listener Mail: Gamma effect Question from Neal Rivers - You guys have discussed the "gamma effect" before on this program. My question is - how far before an earnings announcement does this typically kick in? Can I buy some gamma two or three weeks before the announcement and expect to pay no decay? Or is it more like two or three days? Around the Block: JP Morgan and Wells Fargo & Co. both have earnings on Friday. Goldman Sachs - 7/16; Microsoft, Nokia, Google, Chipotle - 7/18; and IBM, Intel, Bank of America 7/17.

Option Block 257: Deep Dive into Gold, Silver and Oil Interview Block: Today's guest is Matthew Bradbard, futures broker from RCM Asset Management.  Hel discusses recent trends in metals and energies with the Option Block gang. Trading Block: Another broad, but mild rally on the street. Zynga rallies hard on the news of new CEO:  snatching a dubious hire from Microsoft. INTC down 4% off analyst downgrades. Odd Block: Calls trade in Zynga Inc. (ZNGA) and call spreads trade in Elan Corp. (ELN). Around the Block: Alcoa earnings, which means this is the start of earnings season!

Option Block 256: The Great AAPL and GLD Rebound: Trading Block Another broad rally - a "doing stuff" kind of day. Gold spikes. Blackberry annihilated post-earnings. Corzine finally charged in MF Global debacle. The Options Industry Council (OIC) announced today that 361,180,257 total options contracts traded in June, up 10.86 percent compared to last year. Odd Block Calls Rolled in Sina Corp (SINA)  Legging into a Butterfly in Tempurpedic (TPX)  Puts Trading Air Products and Chemical (APD) Xpress Block Metals, Tesla and Apple were lighting up the tape. Alex gives us a good lesson about margin. Strategy Block Tosaw walks us through his recent strategy involving moving to cash after some rumbling in SPY Around the Block Earnings looming on the horizon. Remember the Independence Day holiday is this Thursday - be aware to the effect of theta.