Option Block 666: Earnings Trades, 7 VIX and T-Rexes

Published: Nov. 7, 2017, 9:54 p.m.

b'

Trading Block: Earnings!

  • Monday - Weight Watchers
  • Tuesday - CBOE, Valeant, Snap Inc.
  • Thursday - Nvidia, Macys, Kohl\\u2019s
  • Friday - JCPenney

Odd Block: Size call love in MRO. Opening calendar/stupid in RSX. Call 1x3 in RCX.

Mail Block: So many questions!

Options question of the week: Bitcoin just blew past $100B in "market cap." If #Options were available how would you trade them?

  • 52% - Buy Calls/Call Spreads
  • 18% - Buy Puts/Put Spreads
  • 13% - Sell Covered Calls
  • 17% - Other/Hate #Crypto

Listener questions and comments:

  • Comment from Tony Varriale\\u200f - HODL
  • Comment from Contrlkaos - Call broken wing butterflies

ANOTHER Options question of the week:

Earnings is a coin flip. But you know you love to do it. What\'s your #Earnings #Options MO?

  • Buy Calls/Call Spreads
  • Buy Puts/Put Spreads
  • Sell Puts/Put Spreads
  • Fly/Iron Fly/ Iron Cond.

More comments!

  • Comment from Ophir Gottlieb\\u200f - $TSLA oh, if there was after hours option trading @Options
  • Comment from Folfox - Do you prefer iron condor vs. iron butterfly? (I know 1 strategy wont work every time, but what scenario is preferred)
  • Question from ThinkTankTrading - I have a question regarding funds like vxx and this quote from its prospectus...In connection with these limits, the Dodd-Frank Act has required the CFTC to adopt regulations establishing speculative position limits applicable to regulated futures and OTC derivatives and impose aggregate speculative position limits across regulated U.S. futures, OTC positions and certain futures contracts traded on non-U.S. exchanges. In December 2016, the CFTC re-proposed rules on position limits with respect to the 25 physical delivery commodity futures and options contracts, as well...What happens with cheap low Vol prices and this position limit, and they can\'t get the Vol exposure needed to track the benchmark? ...Positive or inverse ETFs?...One will have massive margin lending/ borrowing costs and the other won\'t be allowed to buy more futures at some point...The second that happens the Nav will be out of wack and become a closed end fund with Arb to Nav opportunities aka the death spiral - would you agree? Or am I missing something - thanks in advance...Asking for a friend hahahah kidding.

Around the Block: RCM webinar on Wednesday, November 8th, 12:00 CST - How to Webinar: Trading Options on Stocks & Futures

Economic Reports this Week:

  • Nov 7 - JOLTS
  • Nov 8 - EIA Petroleum Status Report
  • Nov 9 - Jobless Claims
  • Nov 10 - Consumer Sentiment, Treasury Budget

\\xa0

'