Option Block 743: Is Volatility Making a Comeback?

09/14/18 • 58 min

Trading Block: Volatility Flash Poll!

VIX is threatening 15 and $VXX is back above 30. Is this the return of volatility or just a blip? Quite simply - where will we be at the end of next week?

14% - Here: VIX=14, VXX=30(ash)
32% - Low: VIX=

Trading Block: Volatility Flash Poll!

VIX is threatening 15 and $VXX is back above 30. Is this the return of volatility or just a blip? Quite simply - where will we be at the end of next week?

14% - Here: VIX=14, VXX=30(ash)
32% - Low: VIX=

Previous Episode

Option Block 742: FB Crazy Calls Plus TSLA, AAPL and Rickets

Trading Block: VIX is back to 14, and VXX is back below 30. Earnings. If Apple made phone in U.S. they would cost 20% more, according to BAML analyst. SEC rejects bitcoin ETFs.

Odd Block: Upside calls in Altice USA Inc. (ATUS), short puts in PagSeguro Digital Ltd (PAGS) from 4-16, and size calls in Regions Financial Corp (RF) from 2-26.

Mail Block: Listner questions and comments

Question from EB18 - What do you think of $FB calls profiled on Options Action last week?
Question from Anzew - If I go out of the money with my options are they more sensitive to price movements in the stock? I've had out of the money positions move over 25% when the stock only moved 5%.

Around the Block/This Week in the Markets

Sep 10: JOLTS
Sep 11: PPI
Sep 12: CPI, Jobless Claims, Treasury Budget
Sep 13: Retail Sales, Consumer Sentiment

Next Episode

Option Block 744: AMZN Spinoff, plus Mastering the Wheel

Trading Block: Trade war concerns are renewed as Trump keeps turning up the rhetoric. $AMZN in Chicago! A new Amazon Go store opens down the street from our studio - the first outside of Seattle. Amazon spinoff AWS heats up. FedEx (FDX) - $255.23, ATM straddle: $8.50 approx. 3.3%. Oracle (ORCL) - $49.25, ATM straddle: $2.75 approx. 5.5%.

Odd Block: Call love in Cigna Corporation (CI), calls trade in Bed Bath & Beyond Inc. (BBBY), and call love in Antero Resources Corp (AR).

Strategy Block: Uncle Mike Tosaw discusses how to trade the Wheel strategy.

Mail Block: Listener questions and comments

Question from Liznder -If you had to start over with learning about and trading options what would you do differently?
Question from Tamavil - Does it make sense for an active trader to become a member of the exchanges anymore or are those days gone?

Around the Block/This Week in the Markets: