Option Block 561: Dangerous Call Volatility

Published: Oct. 4, 2016, 4:18 p.m.

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Trading Block: It is that time of the month: OCC Cleared Contract volume up 2% in September. Exchange-listed options volume reached 357,041,027 contracts in September, up one percent from September 2015 volume of 354,782,668 contracts. TSLA: Quarterly sales numbers are strong. 70% increase in delivered cars over Q2. Production up 35%.

Odd Block: Puts trade in Deutsche Bank AG (DB), alls roll out in Pfizer Inc (PFE) and calls trade in Wells Fargo Co (WFC).

Mail Block: Listener questions and comments

Last Week Options #QuestionOfTheWeek -How will the election impact $VIX? Are we heading for #Trump-ocalypse or #Clint-astrophe? Share your feelings.

  • 43% Spike > 20 - Blame Trump
  • 11% Spike >20 - Blame Clinton
  • 17% No impact (12-14 range)
  • 29% Modest Increase (15-20)

This Week Options #QuestionOfTheWeek - What is your preferred way to trade #Volatility? $VIX? $VXX? $XIV? $SPX? $SPY? DM/Reply with alternatives

  • VIX Options/Futures?
  • VXX?
  • XIV?
  • S&P Strad/delta-neutral?

Comments for listeners:

  • Comment from Mark Brandt - About last episode, The Sex Appeal of Options: SPX is a hot chick! Liked the put diagonal collar concept for open upside!
  • Comment from Charlesturro - @OptionsInsider These are looking good today!! - regarding this activity - 6136 $DVAX Jan2017 18 calls went up on the PHLX marked buy write

Around the Block:

Earnings highlights this week include:

  • Tuesday - Micron Technology, Inc.
  • Wednesday - Monsanto Company and Yum! Brands, Inc.

This Week in the market:

  • Oct 5: International Trade, Factory Orders
  • Oct 6: Jobless Claims
  • Oct 7: Unemployment (NonFarms Payroll)

Join us at A Leg To Stand On\'s (ALTSO) Rocktoberfest

Date: Thursday, October 6 2016

Time: 6pm - 11pm

Location: City Winery, 1200 W Randolph Street, Chicago

For more information, please visit the Rocktoberfest website.

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