Podcasts Business The Option Block Option Block 416: Blasting Out Cheap XLE Puts

Option Block 416: Blasting Out Cheap XLE Puts

Published: March 17, 2015, 8:47 p.m.

Option Block 416: Blasting Out Cheap XLE Puts

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Trading Block: Rally ho on the street! Options traders are starting to pay up for crash protection, according to a recent note from Goldman Sachs. Long-dated crash put protection costs on the [S&P 500] have more than doubled over the past 9 months.

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S&P 500 declines for third straight week as dollar resumes rally. OPEC says low oil prices may hit U.S. output by late 2015.

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Odd Block: Puts trade in US Silica Holdings Inc. (SLCA), put trade in iShares MSCI Brazil Index (EWZ), and calls trade in Lowes Co. (LOW).

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Xpress Block: Check out both the Xpresso and Xpound blogs.

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Strategy Block: Tosaw discusses breaking his rules in a recent put spread trade.

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Mail Block: Listener questions and comments

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  • Question from Rahul Tondulkar - Hey guys I want to know how much minimum open in required to say that the option has liquidity? Can anyone please help me out??
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  • Question from Neal Tompkins - How do I know when an option is going to be less liquid? What are some good suggestions for dealing with less liquid options?
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Around the Block: Upcoming Earnings: Tuesday \u2013 Oracle; Wednesday - FedEx, Silver Wheaton; Thursday - Nike, Lennar

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