Option Block 623: How to Sell Premium With A Low VIX

Published: May 26, 2017, 7:17 p.m.

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Trading Block: A Retail Resurgence: Best Buy (BBY) - close $50.42, ATM straddle $4, approx. 8%. Earnings: Amazon, ULTA, Costco, GameStop.

Odd Block: Call spread buying in Southwestern Energy Corporation (SWN), calls buying in Macerish Co (MAC), puts and stock buying in Omega Healthcare Investors (OHI)

Strategy Block: Mike discusses what you can do to sell premium in this market environment.

Mail Block: Options Question Of The Week:

$VIX =11.20. $VIX June Future = 12.40 $VIX Weekly 11 puts = $.15, Weekly 13 Calls = $.15. What's your trade?

  • Buy 13 Call for $.15
  • Buy 11 Put for $.15
  • Sell 13 Call for $.15
  • Sell 11 Put for $.15

Listener Comment:

  • Comment from Production One - VR would excite the young to trade options! Not old fat guys for sure! MarketWatch: Who trades options the most? Millennial investors Industry should be OK going forward.

Around the Block/This Week in the Market:

  • A shortened week due to Memorial Day
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