Option Block 476: Star Wars Straddles

Published: Nov. 6, 2015, 8:42 p.m.

Trading Block: Earnings!

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  • Before the bell today:\xa0 Apache, Celgene Corporation, Crocs, Inc.,
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  • After the bell today: \xa0Walt Disney Company, DreamWorks Animation
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News:

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  • DIS: $113. ATM straddle: $4.85, 4.3%. On a huge rally since massive selloff in August.
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  • OCC Cleared Contract Volume Declined 26% in October.
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  • Market falls in line with Yellen, but now Fed credibility at stake.
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Odd Block: Calls and puts trade in Bank of America Corp. (BAC), calls trade in Metlife Inc. (MET), and puts trade in Straight Path Communication (STRP)

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Listener Mail: Listener questions and comments

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  • Question from Kevin - How do you put on such a small trade for a client and still get paid?
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  • Question from David - There is huge open interest for TWTR at the 30 strike for the Nov monthly, almost 240,000 contracts evenly split. Can you talk about the possible implications? Is it interesting?
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Around the Block: Earnings!

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  • Friday - Humana
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Numbers:

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  • Nov 5: Jobless Claims
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  • Nov 5: GDP
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  • Nov 6: Unemployment
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