Option Block 648: Everyone Loves Cheap Lottery Tickets

Published: Aug. 29, 2017, 3:10 p.m.

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Trading Block: A quiet day in the market.

Odd Block: Ratio put spread in Expedia Inc. (EXPE), ratio risk reversal in Dollar General Corp. (DG), and put-palooza in Pure Storage Inc. (PSTG).

Mail Block: Options Question of the Week

Look at #MayweatherMcGregor as #Options traders. @TheNotoriousMMA calls cost $1, pay $3. #Floyd calls cost $4, pay $1. Your trade?

  • 30% - Buy #Connor Calls?
  • 32% - Buy #Floyd Calls?
  • 16% - I\'d rather sell premium
  • 22 - Whoever Wins We Love

Listener questions:

  • Question from Allan8 - Did Mark cash any calls on Floyd?
  • Question from LAXX - Is it me or do the Vegas odds makers do a very similar job to options market makers?

Another Options Question of the Week:

Let\'s get cheap! If you had to buy "lottery ticket" December calls for $.05 in one name - which would you choose? #HomeRun

  • AMZN
  • AAPL
  • Tesla
  • VIX

MORE listener questions:

  • Comment from The_Quantum_Revloution - Which options are trading at $0.05 though that\'s the question?
  • Comment from Randy Wright - AAPL, and I just might join you.
  • Question from NTT - Can you clarify the question from last show. Was that SPX put-call spread guy asking about selling OTM calls vs. OTM puts or same strike?
  • Comment from Dennis Lyrintzis - Wow over 15,000 Jan 55 calls bought for AAL. Thanks for the Alert.
  • Question from ReallyG\\u200f - Love your #podcasts! Question: market profile displays limit orders. Is there a service that displays stop orders? Just wondering
  • Question from KBX32: What is the cheapest way to hedge my portfolio w options?

Around the Block: Upcoming Earnings LULU (8/31)

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