Option Block 659: The Dark Side of Vertical Spreads

Published: Oct. 13, 2017, 5:52 p.m.

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Trading Block: Roku hit the trading floor. We present some stats from the first week.

  • ADV: 4413 contracts
  • OI: 12,800 contracts, puts slightly outnumber calls 1.2/1.

Plus, the craziest gold trade of the year.

Odd Block: Size put roll in iShares S&P 500 Index Fund (XSP), funky prints in Applied Materials, Inc. (AMAT) and combo Swap/Roll in Edwards Lifesciences Corp (EWW).

Strategy Block: Uncle Mike Tosaw discusses managing vertical spreads.

Mail Block: Options question of the week

EarningsSeasons is almost upon us! What's your favorite way to trade earnings using #Options?

  • Sell Strad./Fly/Condor
  • Buy Strad./Fly/Condor
  • Sell Puts/Put Spreads
  • Buy Calls/Call Spreads

Around the Block: Everything macro and the lack of reactions to everything macro. VIX futures. Earnings are coming up. AI rally?

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