Option Block 275: Predictably Crappy
Option Block 275:\xa0 Predictably Crappy
Trading Block: A mild selloff, but gold and silver took it on the chin.\xa0 AAPL down 30 handles in a dismal post iPhone announcement.\xa0 Ichan liked it at $500, he\u2019ll love it at $470. Lulu earnings before the open...sheer pants knock the stock down 5%, well off the highs of $82 from earlier this year.
Odd Block:\xa0 Puts trade in Mechel OAO (MTL), calls trade in Wendy\u2019s Co. (WEN), and calls trade in Vera Bradley Inc. (VRA). Alex discloses that he knows way too much about women\u2019s retail.
Xpress Block: Lots of questions coming in about AAPL, LULU, and SPX.
Mail Block:\xa0 Question from Contrails.
Hi Mark, I really like your talk shows and loving all the humor. Thank you for educating and entertaining me all those night shifts that you guys keep me in company. I have one burning question for you regarding an observation I noticed today as I was following the SPY and SPY weekly options. First off, I am a noober. But i could not find an explanation for what I saw for those weeklys that are expiring in 4 days. So what happened is that the ATM and ITM calls were not following the price of the SPY. So as SPY was fluctuating up and down, the calls mentioned above were higher in price around 1030 AM EST compared with calls corresponding to same SPY price later during the day around 1300. The call price difference was about 15% which is a lot for home gamer like me. Why is that??? By the way I did not check the Puts, I'll look at it later today\u2026 Do the weeklys lose time value Theta as the hours go by during trading day? Or is this something related to the all mysterious Vega? But I plotted the greeks of those options on TOS and they were all flat lines, Confusing!!! Please enlighten me more Please don't mention my real name on the podcast. You can call me "Contrails" And please let me know if you get a chance the title of the podcast you'll answer my burning question. Your fan, Contrails
Around the Block:\xa0 Looking at gold, silver, and oil in light of next week\u2019s FOMC meeting. VIX expiration next week.