
Best of Option Block 614: Unleash the Liberator Puts
08/27/18 • 61 min
This episode was originally posted on April 25th, 2017
Trading Block: Earnings today
- Alcoa: $33, ATM Straddle $2 - approx. 6%
- Chipotle: ATM Straddle $25.25, approx. 5.4%
- VIX 'fear' gauge plummets as French election results spark global relief rally.
Odd Block: Calls and puts trade in GGP Inc. (GGP), puts trade in Exelon Corp. (EXC) and calls trade in MGM Resorts Intl. (MGM).
Mail Block: Question of the Week:
Earnings Season is upon us. Big names are reporting soon. Which is your pick for the largest % move post-earnings?
- $AMZN
- $GOOGL
- $CMG
- $MSFT
Listener questions and comments:
- Follow-up comments from GameDay Dog:
You nailed it. I was assigned on 2 of the options. I knew that, but the (-) in my margin account was "alarming". My main thought was losing more than my spread safety net. The math did not make sense immediately. Glad to ask a question that made others ask questions. My bad...just heard episode 608...Yeah, I got assigned 2 of 3 my put spread. Way too early! I will get into better detail next time. Episode 208 had an excellent answer. That big negative number was stupid scary! I closed all the positions & sold the stock. The 1 short put & 3 long puts made it a back ratio spread when I closed it. It's funny now! PS - thanks for managing to get my questions on air. Once I closed the positions, I was able to sleep that night!!! Feels like I lost more than $300 though. By getting assigned the shares, it felt like I had more at risk and loss was influenced by the price of the underlying instead of the option. If that makes sense. Seeing the large margin number was not pleasant. My credit spread had a 30% chance of being ITM when I sold it too! Hahaha.
- Question from Lesnod -How do you get out of the straddles? One side of a straddle is always a loss correct?
Around the Block/This Week in the Market
- Apr 25: New Home Sales, Consumer Confidence
- Apr 27: Jobless Claims, International Trade, Pending Home Sales
- Apr 28: GDP, Consumer Sentiment
This episode was originally posted on April 25th, 2017
Trading Block: Earnings today
- Alcoa: $33, ATM Straddle $2 - approx. 6%
- Chipotle: ATM Straddle $25.25, approx. 5.4%
- VIX 'fear' gauge plummets as French election results spark global relief rally.
Odd Block: Calls and puts trade in GGP Inc. (GGP), puts trade in Exelon Corp. (EXC) and calls trade in MGM Resorts Intl. (MGM).
Mail Block: Question of the Week:
Earnings Season is upon us. Big names are reporting soon. Which is your pick for the largest % move post-earnings?
- $AMZN
- $GOOGL
- $CMG
- $MSFT
Listener questions and comments:
- Follow-up comments from GameDay Dog:
You nailed it. I was assigned on 2 of the options. I knew that, but the (-) in my margin account was "alarming". My main thought was losing more than my spread safety net. The math did not make sense immediately. Glad to ask a question that made others ask questions. My bad...just heard episode 608...Yeah, I got assigned 2 of 3 my put spread. Way too early! I will get into better detail next time. Episode 208 had an excellent answer. That big negative number was stupid scary! I closed all the positions & sold the stock. The 1 short put & 3 long puts made it a back ratio spread when I closed it. It's funny now! PS - thanks for managing to get my questions on air. Once I closed the positions, I was able to sleep that night!!! Feels like I lost more than $300 though. By getting assigned the shares, it felt like I had more at risk and loss was influenced by the price of the underlying instead of the option. If that makes sense. Seeing the large margin number was not pleasant. My credit spread had a 30% chance of being ITM when I sold it too! Hahaha.
- Question from Lesnod -How do you get out of the straddles? One side of a straddle is always a loss correct?
Around the Block/This Week in the Market
- Apr 25: New Home Sales, Consumer Confidence
- Apr 27: Jobless Claims, International Trade, Pending Home Sales
- Apr 28: GDP, Consumer Sentiment
Previous Episode

Option Block 740: Trade Wars and Cannabis Stocks
Trading Block: Trump trade war is back on the tape - China implemented more tariffs on U.S. goods.
Earnings:
- Thursday - HP, Intuit, Gap
- Friday - Foot Locker
Odd Block: Rolling calls in Union Pacific Corporation (UNP), bullish paper in Coty Inc. (COTY) and opening puts in CBL & Associates Properties, Inc. (CBL)
Strategy Block: Uncle Mike Tosaw discusses investing in marijuana stocks.
Mail Block: Options question of the week
We're talking about #Crypto #Derivatives at the upcoming @BlockchainVoice Conference (register at http://VoiceOfBlockChain.com). So this week we want to know which #Crypto product you'd like to see listed on a major venue next.
- 72% - Bitcoin Options
- 8% - Ripple Options/Futures
- 15% - Ether Options/Futures
- 5% - Litecoin Options/Futures
Listener questions and comments: What's on your mind?
- Comment from TradingTrooper -$CGC begins trading weekly options today
- Comment from FContangotrader -@OptionPit @OptionVol greasy meatball and rock lobster combo lol
- Re: Olive Garden $300 all you can eat pass: Comment from Volatility Trading -Low carb diets be damned
Around the Block: What are we watching?
Next Episode

Best of Option Block 648: Everyone Loves Cheap Lottery Tickets
This episode was originally posted on August 29th, 2017
Trading Block: A quiet day in the market.
Odd Block: Ratio put spread in Expedia Inc. (EXPE), ratio risk reversal in Dollar General Corp. (DG), and put-palooza in Pure Storage Inc. (PSTG).
Mail Block: Options Question of the Week
Look at #MayweatherMcGregor as #Options traders. @TheNotoriousMMA calls cost $1, pay $3. #Floyd calls cost $4, pay $1. Your trade?
- 30% - Buy #Connor Calls?
- 32% - Buy #Floyd Calls?
- 16% - I'd rather sell premium
- 22 - Whoever Wins We Love
Listener questions:
- Question from Allan8 - Did Mark cash any calls on Floyd?
- Question from LAXX - Is it me or do the Vegas odds makers do a very similar job to options market makers?
Another Options Question of the Week:
Let's get cheap! If you had to buy "lottery ticket" December calls for $.05 in one name - which would you choose? #HomeRun
- AMZN
- AAPL
- Tesla
- VIX
MORE listener questions:
- Comment from The_Quantum_Revloution - Which options are trading at $0.05 though that's the question?
- Comment from Randy Wright - AAPL, and I just might join you.
- Question from NTT - Can you clarify the question from last show. Was that SPX put-call spread guy asking about selling OTM calls vs. OTM puts or same strike?
- Comment from Dennis Lyrintzis - Wow over 15,000 Jan 55 calls bought for AAL. Thanks for the Alert.
- Question from ReallyG? - Love your #podcasts! Question: market profile displays limit orders. Is there a service that displays stop orders? Just wondering
- Question from KBX32: What is the cheapest way to hedge my portfolio w options?
Around the Block: Upcoming Earnings LULU (8/31)
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