Option Block 728: Tariff-Ied of Killer Foxes

07/03/18 • 56 min

Trading Block: Canadian revenge tariff are on the docket today. VIX cash sits above 17. OCC Cleared Contract Volume up 6% in June - the highest June for total options volume on record. It's SPX's 35-year anniversary.

Odd Block: July 4 calls in Limelight Networks, Inc. (LLNW), Funky multi-leg in BP Prudhoe Bay Royalty Trust (BPT), Rolling puts in (FLO).

Strategy Block: Uncle Mike Tosaw discusses trading short put spreads

Mail Block: Options question of the week

Traders generally fade volatility going into holidays (today notwithstanding). What's your favorite vehicle when you want to wager on the dark side of volatility? Short-term or Long-term - that's up to you.

Short VIX Futures
Long $VIX Puts/Spread
Long $VXX Puts/Spread
Short $VIX Calls/Spreads

Around the Block: 'Murica. Mired in tariff talk. Negotiating trade deals is tough!

Odd Block: July 4 calls in Limelight Networks, Inc. (LLNW), Funky multi-leg in BP Prudhoe Bay Royalty Trust (BPT), Rolling puts in (FLO).

Strategy Block: Uncle Mike Tosaw discusses trading short put spreads

Mail Block: Options question of the week

Short VIX Futures
Long $VIX Puts/Spread
Long $VXX Puts/Spread
Short $VIX Calls/Spreads

Around the Block: 'Murica. Mired in tariff talk. Negotiating trade deals is tough!

Previous Episode

Option Block 727: Slinging VIX By Way of Mexico, Maine

Trading Block: A review of the week in trading

VIX Cash - started at 18.99, ended at 16.70
Earnings: Nike after the bell - $71.70, ATM straddle - $3.40, approx. 5%

Odd Block: Size money call roll in Devon Energy Corp (DVN). Call vertical in CVS Health Corp (CVS). Size puts in PowerShares DB US dollar Index (UUP)

Strategy Block: Uncle Mike discusses selling a call spread versus selling a call.

Mail Block:

Question form Jack Daniels trades: Pump me up $WWE don't fade! Huge TV deal billionsss. Let's go.
Question from BuddyBoy79: Can you please explain what relative strength and weakness mean as they pertain to options trading?

Around the Block/This Week in the Market

Jun 28: Jobless Claims, GDP
Jun 29: Personal Income, Consumer Sentiment

Next Episode

Best of Option Block 633: Nukes, Volatility and Crazy Tesla Puts

Originally posted on July 7th, 2017

Trading Block: VIX ends near the top of the range. It was up to 13.05 at its highest. Tesla down 7.2% yesterday, due to concerns of slowing Model S and Model X sales. The numbers are out: OCC announced today that cleared contract volume in June reached 387,597,223 contracts, a 2% increase from the June 2016.

Odd Block: TSLA Jan 2019 50 puts and Jan 2018 20 puts continue to trade. Back and forth trading in Tesla Motors (TSLA). Puts trade in LG Display Company LTD. (LPL)

Strategy Block: Uncle Mike Tosaw discusses the recent silver environment.

Mail Block: Options question of the week

Blue Apron $APRN is down over 10% from its #IPO price. Assuming #Options were listed, what trade would you make?

Buy Dec 10 Call for $1
Buy Dec 9 Put for $1
Sell Dec 10 Call for $1
Not Touching $APRN

Listener Questions: What's on your mind?

Question from Sal06 - Do you think AAPL $147 call for June 30th is a good idea?
Question from Nelly2 - Just so I am clear on the spread assignment thing. If I am in SPX, then I just get cash if the index closes inside my spread. But if I am in a stock, then I get the stock?

Around the Block: WTH is happening in North Korea? VIX responds in kind. S&P 2400. Non-farm payrolls. Google fine.