Option Block 670: Thanksgiving Listener Question Palooza

Published: Nov. 21, 2017, 8:49 p.m.

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Mail Block: It\'s all listener questions and comments today

Options question of the week: The war for Bitcoin Derivatives is heating up w/ both CME Group and CBOE jumping into the fray. How do you think you\'ll be trading Bitcoin in 2018?

  • CME BRR Futures
  • CBOE Gemini Futures
  • Stick w/ Regular Bitcoin
  • Still don\'t trust Crypto

Questions and Comments:

  • Question from Nikbak - When do you think we\'ll have #bitcoin options?
  • Question from Scott Somer - Another question I would like to see is - Do you think that Nasdaq PHLX will have the most volume on a given trading day over CBOE as the leading medallion.
  • Question from MarkLitwin: Thank you for your time and explanation! Appreciate! I was thinking of using options leverage with a limited risk of losing premium by buying an option long enough to cover a span between earnings and the one which is already In the Money with the Delta of 1 and selling that option just before the next ER. Would you comment on that idea please!
  • Question from Albert Deckel - Two questions: While I understand how to convert a "Delta" into meaning, I really don\'t understand what consists of a "high" vs. "low" Gamma, Theta or Vega. For example, when is theta so high that it makes the purchase of a contract dubious, or Vega so high that it makes the purchase of an OTM contract desirable? Also, if I were to write an ITM put, what combination of Delta, Gamma, Theta or Vega am I looking for? Thanks so much!! Al
  • Question from USA Patriot - What is ADV??
  • Comment from Charlie T. - Not really an options guy. I don\'t need the headache of yet another unknown element aka time. It\'s hard enough just picking my stocks, deciding price points, exit points, etc.
  • Question from L Penguin - I\'m a new options trader and I want to buy a LEAP call because it looks like the stock is going to go to up in the next 12 months, but I don\'t want to commit yet. I also want to generate income while I hold that position. What are your thoughts on selling the call while I have the leap? Also, this stock has an attractive dividend that I\'d like to capture. Is this even possible? Interested in your thoughts, thanks! I was thinking about buying a deep in the money call for the LEAP, and then depending on where the stock is trading at the time, sell closer to the money.
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