Option Block 504: What Makes a Butterfly Take Flight?

Published: March 4, 2016, 5:51 p.m.

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Trading Block: Continued relief rally. VIX now has a 16-handle. Huge contango in the VIX. Who blew the all-clear signal? Cage match in junk stocks. CBOE reported that total trading volume in February was 92.9 million contracts. OCC announces cleared contract volume increased in February. OCC announced that total cleared contract volume in February was 338,300,969 contracts. . Why CME would want to buy the London Stock Exchange? Why buy when you can make your own? What is Europe going to do?

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Odd Block: Puts trade in Chesapeake Energy Inc. (CHK), puts trade in iShares Barclays 20+ year Treasuries (TLT), and calls and puts trade in Boardwalk Pipeline Partners (BWP).

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Strategy Block: In his first ever strategy block, Andrew discusses what makes a butterfly take off.

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Mail Block: Listener comments and questions

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  • Question from Adam - Thank you for your shows. I am wondering if you know where can I get p/c ratio and call sizzle index and out sizzle index history? I use TOS but this info is not available for the past. Thanks
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  • Question from FutureMD - Is there a directional options strategy that you would suggest for someone who wants to play the 2016 election?
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Around the Block: Earnings! Friday - Staples, Big Lots

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This Week in the Market

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  • Mar 3: Jobless Claims, Factory Orders
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  • Mar 4: Unemployment Report
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