Option Block 646: Question Palooza

Published: Aug. 22, 2017, 7:12 p.m.

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Trading Block: The eclipse hits the U.S. market. Steve Bannon gone from the White House. Elon Musk urges the UN against the use of AI in warfare.

Odd Block: 105 More $TSLA Jan 2019 50 "Catastrophe" puts hit the tape today. Put spreads trade in Starbucks Corporation (SBUX). Size put spreads in Utilities SPDR ETF (XLU).

Mail Block: Poll review

Question of theWeek: Taking a break from #FireandFury & $VIX to talk #Earnings. Which #Options are you looking forward to trading this week?

  • 18% - CSCO
  • 57% - BABA
  • 18% - HD
  • 7% - WMT

FlashPoll: Which major index has experienced the largest % change in 30-day ATM #Volatility year-to-date?

  • 15% - S&P 500
  • 38% - Nasdaq 100
  • 8% - Dow
  • 39% - Russell 2000

Listener Questions: What is on the minds of our listeners?

  • Question from For Profits: What do you mean by TSLA catastrphe puts?
  • Question from Privateer - Hi guys, love the show. I have recently been learning about an exciting strategy called writing call options with CFDs. The claim by the teacher is that CFDs can leverage the return on premium selling by ten times, and reduce your break even significantly. I am very invested in how this could apply in selling both legs i.e covered strangles or straddles. Can you discuss the downsides, upsides and hedging strategies used in this scenario, and how to mitigate risk especially on the put leg? Sirs yes sir!
  • Question from LJC6V - Is gold looking good for a collar here? Maybe 2-3 months out?
  • Question from Tanzier - Who is left in broker world that has not been bought up? Any recs?
  • Question from Vic - What is Tosaw up to in AAPL now?
  • Question from Farimax - What options strategies do you use the most?

Around the Block: What is lurking in the misty ether of the future?

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