Option Block 409: Talking PCLN, Crude and Pairs Trading

Published: Feb. 20, 2015, 6:50 p.m.

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Option Block 409: Talking PCLN, Crude and Pairs Trading

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Trading Block: There is still no real agreement among Fed officials on rate hike timing. Oil cuts loss as supply hike not as large as anticipated. Earnings today: before the bell: Wal-Mart, Priceline Group Inc., T-Mobile; after the bell: Intuit

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Odd Block: Calls roll in (BWP), calls and puts trading in Microsoft Corp (MSFT), and calls trade in Boston Properties, Inc. (BXP)

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Xpress Block: Alex discusses OX and Schwab mobile trading

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Mail Block: Listener questions and comments.

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  • Comment from Martin - Thank you that you share this precious information on your show for free. A great job. Well done. Martin from Germany.
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  • Comment from Kevin Duggan - Hi Mark, Love your shows! Not to be an ingrate for all the great, free info and entertainment but, could you put out your podcast the same day you record it? It is always strange hearing you talk about Thursday\\u2019s market after Fridays close. It is not a big deal, more of a first-world problem really, but posting sooner would significantly bump up your cool factor. Thanks.
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  • Question from John D. - Hi, Love your show. You guys do a great job. Keep up the good work. My question...If I am looking at a pair trade (e.g. long Facebook, short Twitter), obviously I can do it by buying/shorting the stocks. I was trying to figure out if there is any way to effective do the same thing with options what the advantages might be, if any. I thought of doing a synthetic long/short, but did not see any advantage since I will be naked short an option for both names... but maybe margin treatment is different? Long call on one and log put on the other does not seem to make sense since I am pretty much guaranteed to lose the premium on both those positions. Is there another or better way to structure this type of trade using options? Thanks, John D
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Around the Block: Earnings coming up down the road.

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