Option Block 359: Thursday, Bloody Thursday

Published: Aug. 1, 2014, 10:24 p.m.

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Option Block 359: Thursday, Bloody Thursday

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Trading Block: A bloody day on the street. A default, a bankruptcy, and bad Fed news. Massive FLEX\\xa0trades went up today. Professor Whaley and the VIX term structure

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Odd Block: Revisiting a position in iShares MSCI Taiwan Index (EWT)

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Xpress Block: Alex discusses about the changing metrics in portfolio margining and the risk tools.

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Strategy Block: Uncle Mike highlights his strategy using the Long SPY Long Oct 190 Put

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Mail Block: Listener questions and comments.

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Question from Steven, San Diego, CA: Listing to the July 24th show on the 25th. So, with the benefit of hindsight, I can you see the majority of the activity in AMZN being discussed was pretty much completely wrong. \\xa0It was down, not up, and way past the expected move. So that brings me to the question. Is there any study or statistical evidence that shows that the unusual activity should be followed? Or should be faded? Really think the retail crowd are chasers, which works until it doesn\'t. The trend is your friend? Bah-humbug! It makes for interesting press, but is it really actionable? Rather than glorifying, would your listeners be better served to be cautioned on this topic rather than enticed? Love the show. Sometimes customer of the Pit and RCM because of the show.

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Around the Block: Non-farm payrolls: could it possibly turn around the market?

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