Option Block 577: Mad Man Option Screeners

Published: Dec. 2, 2016, 8:31 p.m.

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Trading Block: Earnings after the bell today: TD Ameritrade, Krogers, Lands End, Dollar General. OCC cleared contract volume increased 20% in November. Why was November such a massive month for markets around the world? XLE up 8% since Tuesday. Volume 1.5x ADV, calls slightly over puts.USO up over 10% since Tuesday - volume 2x ADV, calls over puts 2-to-1. VOLUME 2X ADV TODAY, CALLS OVER PUTS 2-TO-1. Trump plan to dismantle Dodd-Frank unlikely to be realized, says TABB Group.

Odd Block: (Review from Monday) Calls and puts trade in SPDR S&P Oil and Gas Exp (XOP), alls trade in Financial Select SPDR (XLF), calls trade in Seadrill LTD (SDRL) and calls trade in Ford Motor Co. (F).

Strategy Block: Uncle Mike Tosaw discusses his new modified collar strategy.

Mail Block/Options#QuestionOfTheWeek:

Commodities are capturing a lot of attention and generating a lot of #Volatility. What's your option of choice?

  • $GLD / Comex Gold
  • $USO / $WTI
  • $TLT / ED / 10YR
  • EUR/USD, GPB/USD
  • Question from Go Hoos - If I buy 10,000 XYZ calls at $1 and sell them for $2, who loses that $1M? The MMs who make $$ on expired option premiums? TIA!

Around the Block/This Week in the Market:

  • Friday - Nonfarm payrolls
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