Option Block 653: Was There Insider Trading in EFX?

Published: Sept. 19, 2017, 8:36 p.m.

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Trading Block: The S&P held 2500 today. Equifax gives away the keys to the kingdom. One exec even cashed in his options before the public disclosure. EFX options volume up is again today.

Odd Block: TSLA Options tracker is back. Size call vertical in Visa Inc. (V). Massive opening call print in T-Mobile US Inc. (TMUS).

Mail Block: Listeners have their say

Options question of the week: First #Harvey, then #Irma, now #Jose & more. We prep houses/cars/family for #disasters. How do you prep your portfolio?

  • Get Long $VIX/$VXX/$UVXY
  • Go To Cash/T-bills
  • Buy Index/Stock Puts
  • "Risk Assets" - Gold, etc.

ANOTHER options question of the week: $EFX exec. cashes out #Options worth $584k a month before disclosing massive breach. $EFX off near 35%. Well-timed, lucky or illegal?

  • He Got Very Lucky
  • He\'s a genius
  • He acted on inside info
  • Busy Freezing My Account

Listener Questions and comments:

  • Comment from Kathryn Corby: How do you guys know the put buyer is not selling near-the-money puts at the same time? That would be smart.
  • Question from Richard D - Dear Derivative Dignitaries, Its your long time listener "Richard D" again. I couldn\'t write over the last few weeks because I did not have a new appropriate salutation for you!

I have recently been looking at some Apple calendars. I\'ll see for example I can get near term Apple calendars near the strike using puts for about 5% less than calls.

For example, recently, with the equity price around $161 a long 162.5 Sept 22 / 29 call calendar would go for about $.62 while the puts about $.59. Aren\'t these supposed to be the same and since they are not can you arb this, especially if you do not have commission charges.

Thanks and I appreciate the wealth of knowledge AND laughs I get from your show. V/R, Richard

  • Question from SacMan12: What are the odds that SVXY gets back to 70?

Around the Block: Will we hold 2500? Is it a buying opportunity in SLV? Risk reversals in VIX?

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