Option Block 554: Crude Battle Plus the Collar-Risk Reversal Breakdown

Published: Sept. 9, 2016, 3:14 p.m.

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Trading Block: August this year was the lowest average daily volume for puts and calls since October 2012.

Stocks to Watch:

  • TWTR - Stock off over 5%
  • AAPL - World not enthused with new iPhone, stock off nearly 3%
  • TSLA - Stock back below $200 - With the combined weight of SCTY deal controversy, cash squeeze and SpaceX explosion.
  • SBUX - CEO endorses Hilary, stock off nearly 2%.
  • Crude stock drop sparks rally. U.S. crude stocks fell by a whopping 14.5 million barrels last week.

Odd Block: Calls trade in TransOcean LTD (RIG), calls trade in Chesapeake Energy (CHK), and calls trade in iShares FTSE / China ETF (FXI)

Mail Block: Listener questions and comments

  • Question from JPMTrader: What is the call and put volume like for expirery for the 110s and 107s in Apple?
  • Question from TradeCraft: Is there a correlation between high options OI and high options price levels?

Around the Block/ This Week in the Market:

  • Sep 7: JOLTS, Beige Book
  • Sep 8: Jobless Claims, EIA Petroleum Status

Earnings tomorrow include:

  • The Kroger Company
  • Mattress Firm Holding Corp
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