Option Block 216: Embracing Degeneracy

Published: Jan. 29, 2013, 6:02 p.m.

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Option Block 216: Embracing Degeneracy

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Trading Block: Most indexes closed fractionally up or down on the day. Vol continues to stay at record lows. Action in Ford and Facebook so far this week.

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Odd Block: Puts trade in Western Union Co. (WU), a block of calls trade in Facebook Inc. (FB), and calls trade in Take-Two Interactive Software (TTWO).

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Xpress Block: Alex discusses the latest from the Idea Hub, which included a lot of SPX PM ideas today. CFTC approved the Euro stock futures in the U.S. today.

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Strategy Block: Great Uncle Mike Tosaw discusses selling puts on the S&P 500, a strategy they use at RCM.

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Mail Block: The All-Stars answer listener questions.

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  • Question from Tom S., Philadelphia - \\xa0Ford March 14 calls for $0.40 - Buy or Sell?
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  • Question from Charles C., Cambridge, MA - What do you guys think of the Ford March 12-15 bullish risk reversal for even to a nickel debit?
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Around the Block: Yahoo! earnings. Ford earnings tomorrow before the open. Facebook on 1/30, Amazon on 1/29, Electronic Arts on 1/30.

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