Podcasts Business The Option Block Option Block 430: Shaken, Not Stirred

Option Block 430: Shaken, Not Stirred

Published: May 8, 2015, 7:44 p.m.

Trading Block: Bond, James Bond. A bullish bond market rally could be in our future. VIX going into Non-Farm Payroll - could we see a big move?

\n

Odd Block:\xa0Puts trade in Whole Foods Market, Inc. (WFM), puts go up in iShares iBoxx High Yield Corp ETF (HYG), calls trade in Alibaba Group Holding Ltd (BABA)

\n

Mail Block: Listener questions and comments

\n
    \n
  • Question from Dmitry Shesterin: Where do you see more HFT activity, in equities markets or options?
    • \n
  • Question from Tom:\xa0When should I adjust a credit spread? What percentage of profit should I aim for?
    • \n
  • Question from Fred:\xa0I am a futures guy dabbling in options. Do options traders need different tool than futures traders? If so, what tools or services do you recommend outside of the broker platforms?
    • \n
  • Question from Karl:\xa0What is the better way to get "free juice" on a bullish position - bullish risk reversal for a credit/even, vertical ratio call spread for a credit/even or just a short put for a credit (obviously). This would be for a near term (a few months), but not explosive (maybe to 5%) rally in the underlying. When is buying the stock the best option?
    • \n
\n

Strategy Block: Uncle Mike Tosaw discusses selling puts.

\n

Around the Block: Looking ahead to non-farms