Podcasts Business The Option Block Option Block 258: Highly Accommodative Policy

Option Block 258: Highly Accommodative Policy

Published: July 12, 2013, 5:57 p.m.

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Option Block 258: Highly Accommodative Policy

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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.

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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).

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Xpress Block: It's a race to 1,000 between Priceline and Google. Green lights all over the screen today.

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Listener Mail: Gamma effect

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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?

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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.