Option Block 325: SPX vs. SPY vs. Steven Seagal
Option Block 325: SPX vs. SPY vs. Steven Seagal
\nTrading Block: A mild day on the street. VIX cash taking a little breather. A lot of put buying in Google, Tesla, Netflix, Priceline, etc. Lululemon gets its first big pop in a while. TLT reaches a one year high.
\nOdd Block: Combos trade in the VIX, straddle trades in EQT Corporation (EQT), calls trade in Ares Capital Corp. (ARCC), and puts trade in SPDR Barclays Capital High Yield (JNK)
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\nXpress Block: Growth was in short supply today on the OX desk - a mass exodus. A mixed bag for the biotechs. Idea Hub is coming to Schwab mobile soon! Plus spot VIX products!
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\nListener Mail Extravaganza: Because if it\u2019s going to be an extravaganza, why not make it about mail?
\nQuestion from John King - Could you discuss SPX vs SPY vs ES opts? Bid/Ask slip VS commish, Margin treatment, ex-div/exercise annoyance, etc.? Thanks! - Commish in my case are flat .75/cntr, no tkt chg. For ES opt its $3.65 thx!
\nQuestion from Nick Snow -\xa0Options block 323 - You mentioned on this show that RBS had a bunch of Aug 10 ATM volume today. \xa0I noticed this also and I am not sure I get it. RBS has lots of problems with the queen and the LIBOR fees they pay from loans. I am not sure how I can phrase this so it\u2019s tradeable but if any company where to have an IPO of a company owned with in. Would you buy calls on the company that was public because you assume the cash injection from the IPO would boost the stock of the parent? If you want to get more clarity around that I can but I am sure it will kill your ability to trade RBS. And as an options express account holder tell them to get flies on their scans instead of just condors. :)
\nQuestion from Nishant Pant - I love your show so much. Every morning at gym, I am listening to your podcasts instead of music like everybody else. One thing I am frustrated on the internet is everybody is just busy explaining what a straddle or strangle or any other thing is...instead of telling the practical things you need to keep in mind and you guys do such a great job in explaining the gotchas and the greeks which matter. Is it possible for you to add actionable ideas? Tomorrow GRPN is releasing earnings. Maybe you can build upon what you have already taught us and explain an actionable idea and tell us why you think a particular trade you are suggesting makes sense. I would pay for such a podcast at the blink of an eye. Just for the learning aspect of it. \xa0Thanks again for your awesomeness.
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\nAround the Block: Treasuries. Volatility. What will Russia do next? Buy the dip\u2026a 52% guarantee. Short supply in growth issues.\xa0