Option Block 556: Flimflammery and Skull Blockery

Published: Sept. 16, 2016, 3:58 p.m.

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Trading Block: Volatility is coming back! Wall Street gains on Apple, dimmer chances of rate hike.

Odd Block: Calls trade in Lending Club Corp (LC), calls trade in Infoblox Inc (BLOX), and calls trade in Technology SPDR (XLK)

Mail Block: Listener questions and comments

  • Question from Yukoner: Do you ever do spreads in LEAPS? Why and how? So I used trade the LEAPS rather than guy the stock. Is that s good use case?
  • Question from Trader Shawn: What is the difference between USO and UCO?
  • Question from Vegs: I am seeing lots of big fat options OI tied to the big ES 2200 strike. Does this mean big traders are betting that the S&P will rally past 2200? Can all of this open interest have the net effect of forcing the S&P to that strike at expiration? Do you view this open interest solely coming from pros, or are retail reflecting there as well?

Strategy Block: Uncle Mike Tosaw discusses vertical LEAPS rolls.

Around the Block/This Week in the Market: Sep 16: CPI, Consumer Sentiment

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