Podcasts Business The Option Block Option Block 337: Looking Back on the Flash Crash

Option Block 337: Looking Back on the Flash Crash

Published: May 9, 2014, 4:30 p.m.

b'

Option Block 337: Looking Back on the Flash Crash

\\n

Trading Block:\\xa0 Options traders were preparing for 10% swings of Tesla before week\'s end based on a straddle. On Wednesday, volume in Twitter options increased fivefold, all but erasing value in a series of bullish contracts. ICE reports record Q1 profit. After its June IPO, Euronext plans to be listed on three of its exchanges. May 6 marks the fourth anniversary and it\'s a reminder that not much has changed.\\xa0

\\n

Odd Block: Put sellers in BBEP, call spreads trade in Cameco Corp., calls trade in DLX, closing put seller in FTR.

\\n

Strategy Block: Calendars vs. verticals, part deux.\\xa0

\\n
    \\n
  • Comment from Erik Ruehr re: Mike Tosaw\\u2019s survey. I say vertical spreads are better now. Thanks for the show.
    • \\n
  • Comment from Tom S.: In response to Uncle Mike\\u2019s survey: In general, I\\u2019d say vertical spreads trade much better now.
    • \\n
  • Comment from LJO: Put me down in the plus column for verticals.
    • \\n
\\n

Around the Block: Some earnings left: CSCO, TTWO, CBOE, GRPN. Macro, macro, macro, 10-year, 30-year, the Fed. Will social media/tech stocks hold up?

'