Option Block 731: Mystery Risk Reversals and Funky Puts

Published: July 17, 2018, 6:58 p.m.

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Trading Block: A review of the week so far from a trading perspective

  • Amazon.com down on its biggest day of the year.
  • The trade war continues to scare no one.

Earnings!

  • Monday - Netflix
  • Tuesday - Goldman Sachs, Johnson & Johnson, United
  • Wednesday - IBM, eBay, American Express
  • Thursday - Microsoft
  • Friday - GE, Honeywell
  • NFLX - ATM Straddle: $35, approx. 9%

Odd Block: Bullish stupid in Cleveland-Cliffs Inc. (CLF). Risk reversal in Interpublic Group of Companies Inc. (IPG). Put roll in QEP Resources Inc. (QEP).

Mail Block: Listeners have their say

Options question of the week: Yup it's earnings season once again. Options traders are gearing up for a busy season. Which names do you think will dominate your options trading this season?

  • NFLX
  • AMZN
  • TSLA
  • GOOGL

Listener questions and comments:

  • Question from FlyGuy - Hey what do you guys do with your long calendar spreads? Do you close out the short leg if the stock doesn't move then keep the long leg or just close the whole spread out?
  • Question from Flyer - What are some of the best ways to trade put options?

Around the Block/This Week in the Markets:

  • Jul 17 - Industrial Production
  • Jul 18 - Housing Starts, Beige Book
  • Jul 19 - Jobless Claims
  • Federal Reserve Chairman Jerome Powell is set to deliver the semiannual monetary policy statement on Tuesday and Wednesday.
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