Option Block 481: Theoretical Value & Implied Volatility

Published: Nov. 24, 2015, 9:22 p.m.

Trading Block: Earnings! Before the bell today:\xa0Gamestop Corporation, Tyson Foods, Trina Solar. After the bell:\xa0 Palo Alto Networks. S&P 500 profits fall $25 Billion in first three quarters of 2015. Oil slides back lower after spike on Saudi statement. CME: Shrinking locally to grow abroad.

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Odd Block: Puts trade in Freeport McMoran Inc (FCX), puts trade in Chesapeake Energy Corp (CHK), and calls and puts trade in Burlington Stores Inc. (BURL)

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Listener Mail: Questions and comments from listeners

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Question from Vega -\xa0Do puts and calls become more expensive ahead of events due to the risk premium? If so, how do I avoid that in the market?

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Question from Peter Davies - Stocks are being hit by latency sensitive strategies like HFT. Is that happening in options as well?

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Around the Block: Economic reports this week:

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  • Nov 23: Existing Home Sales
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  • Nov 24: GDP, Consumer Confidence
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  • Nov 25: Durable Goods, Jobless Claims, New Home Sales, Consumer Sentiment
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