Option Block 435: The Dark Heart of the Soul

Published: May 29, 2015, 6:36 p.m.

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Trading Block: Wall Street is using the power of Dodd-Frank against itself. Shake Shacks (SHAK) unhedgeable risk. Chipotle (CMG) stock rallying following higher analyst rating. Google (GOOGL) tech deals on pace to surpass 1999.

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Odd Block: Calls trade in CONSOL Energy Inc. (CNX), calls trade in McDonalds Corp (MCD), and puts trade in iPath S&P 500 VIX Short Term ETN (VXX).

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Mail Block: Listener questions and comments

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  • Question from Gerry Engle - Hola fellows. Like the programs especially Option Block and Volatility Views. I noticed you guys do not talk much about technicals. The few times you have mentioned them you seem to take a dim view of them. Why is that? Are there no technicals that you feel are useful for options traders to pay attention to?
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  • Question from Calls vs Puts - Why is there not just one product that you can sell and buy to express your bullish or bearish outlook instead of two - calls and puts? Is that not a bit of overkill?
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  • Question from Georges Sinclair - Why are iron condors so popular? Seems like many other strategies can offer similar performance. Why has that one strategy become so dominant?
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Around the Block: Early summer doldrums? Any action in anything anytime soon?

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