Option Block 701: Revenge of the Trade War

Published: March 23, 2018, 6:15 p.m.

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Trading Block:

  • The market is tanking on trade war concerns: Trump is at it again.
  • Volatility returns - VIX back in the 20s.
  • The tech selloff continues - FB closed $185 on 3/16 - traded as low as $163.72 today, down nearly 12%.
  • Fed hikes rates as expected.
  • US weekly jobless claims total 226,000, in line with expectations
  • Earnings: NKE: $65.30, ATM straddle - $3.60, approx. 5.5%

Odd Block: Calls trade in Deere & Company (DE), puts trade in CNH Industrial NV (CNHI) and split ticket calls in TC Pipelines LP (TRP).

Strategy Block: Uncle Mike Tosaw discusses selling naked puts

Mail Block: Listener questions and comments

  • Question from Ed Bankert - Debating on using covered calls or short puts. Which is better for a less experienced options trader who wants to make money?
  • Question from Scott Somer\\u200f - WMT now below 100 premarket @Options @OptionPit @OptionVol How is that proposed @CBOE premarket earnings related equity options pilot going?

Around the Block/Economic Reports

  • Mar 23: Durable Goods, New Home Sales
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