Published: Jan. 27, 2017, 4:58 p.m.
Trading Block: Earnings!
- Before the bell: Southwest, Caterpillar
- After the bell: Alphabet, PayPal, E-Trade, Microsoft, Intel
- GOOGL - $852.70. ATM Straddle: $34, approx. 4%
- MSFT - $64.05. ATM Straddle: $2.75, approx. 4.3%
- INTC - $37.6. ATM Straddle: $1.25, approx. 3.3%
- PAYPAL - $41.52. ATM Straddle: $2.12, approx. 5%
- SBUX - $58.51. ATM Straddle: $2.20, approx. 3.7%
Odd Block: Calls trade in Kate Spade Co. (KATE), calls trade in Technology SPDR (XLK) and puts trade in JPMorgan Alerian MLP index (AMJ)
Strategy Block: Uncle Mike Tosaw discusses dollar-cost averaging
Mail Block: Questions, comments, polls, and more.
Options #QuestionOfTheWeek: Lots of earnings on the horizon. Which company will outperform their earnings straddle by the largest margin?
- Alphabet - $GOOGL
- Microsoft - $MSFT
- Intel - $INTC
- Starbucks - $SBUX
Listener questions:
- Question from Tim Avery - If I choose an advisor that uses options do they traditionally charge higher fees than straight-up equity advisors?
- Question from Kddidy - I managed to buy 100 NAK Feb 3.00 Puts at .25 when the stock was trading at $3.30. Do you have any idea how this could happen? I am not sure if I should feel lucky or stupid.
- Question from Yukoner - Are covered calls still a viable strategy in a 401k these days?
Around the Block/This Week in the Market:
- Jan 26: Jobless Claims, International Trade, New Home Sales
- Jan 27: Durable Goods, GDP, Consumer Sentiment