Option Block 621: Stumping The RockLobster With Vertical Spreads

Published: May 19, 2017, 4:02 p.m.

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Trading Block: Still in earnings season. Yesterday: Target, Cisco. Today: Alibaba, Walmart, Gap.

Odd Block: Calls trade in Pandora Media Inc (P), calls trade in SBA Communications Corp (SBA) and calls trade in Kimberly Clark Corp (KMB)

Strategy Block: Mike discusses his adjustment in his silver collar.

Mail Block/Options question of the week:

There are still a lot of big names reporting in earnings season. Which ones are on your options watchlist this week?

  • Walmart, $WMT
  • Alibaba, $BABA
  • Home Depot, $HD
  • Cisco, $CSCO

Listener questions:

  • Question from Andrew McNichol: Big fan of your Options Bootcamp podcast. I appreciate how you start at square 1 and then walk listeners through every element of options and options trading. Is there another podcast you recommend that does the same but for stocks? Most of the ones I have found are all about what is hot now, or stock picking tips. Essentially, I am looking for a stock trading 101 podcast. If you do not know of any such podcast, what is the best stock 101 book? Thanks!
  • Question from Ejh4isu: If I buy/sell a vertical on SPX (or any equity stock for that matter) and hold until expiration, and SPX settles between the strikes, what happens? Example: sell 2395/2400 and SPX settles at 2397.

Around the Block/This Week in the Market:

  • May 18: Jobless Claims
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