Option Block 578: A Kung Fu Grip on the Options Market

Published: Dec. 6, 2016, 8:17 p.m.

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Trading Block: CBOE sets record volume with S&P 500 Index and CBOE Volatility Index in November. Apple still up on the year. What might next year look like? Lululemon on Wednesday closed $57.16. The ATM straddle is trading at $5.35, or approx. 9%.

Odd Block: Puts trade in Barrick Gold Corp (ABX), Calls trade in Market Vectors Russia ETF (RSX), Calls trade in Pandora Media Inc (P)

Mail Block/Options#QuestionOfTheWeek:

#CrudeOil has been volatile lately. $OIV, aka Oil $VIX, is 37.33. Where will #Crude #Volatility close on Friday?

  • Between 37 - 38.5
  • Between 38.5 - 40
  • Below 37
  • Above 40
  • Question from Trader Chad - Are ATM straddles really a good way of predicting a stock or are they just more noise like whisper numbers?

Around the Block/This Week in the Market:

  • Dec 6: International Trade, Factory Orders
  • Dec 7: JOLTS
  • Dec 8: Jobless Claims
  • Dec 9: Consumer Sentiment

Earnings Highlights:

  • Tuesday - Toll Brothers, Autozone
  • Wednesday - Costco, Lululemon
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