Option Block 745: Reefer Madness

Published: Sept. 21, 2018, 5:54 p.m.

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Trading Block: Earnings and major moves

  • Oracle Corporation (ORCL) after the bell - $49.25, ATM straddle: $2.75, approx. 5.5%
  • FedEx Corporation (FDX) after the bell - $255.25, ATM straddle: $8.50, approx. 3.3%
  • Reefer madness hits the options markets as cannabis shares continue to climb. $TLRY $CORE $MJ

Odd Block: Tesla Inc. (TSLA) put summary, call love in KKR & Co Inc. (KKR), put love in Meet Group Inc. (MEET) and call love in Delek US Holdings Inc. (DK).

Mail Block: Options question of the week

Some people look to analysts for their market outlook. We prefer to analyze actual #options positions. This week we're looking at $SPY. In a nutshell - what do you think is the largest #options position in $SPY right now? No cheating - what does your gut tell you?

  • SPY Mar 255.0 P
  • SPY Oct 272.0 P
  • SPY Dec 31st 320.0 C
  • SPY Sep 300.0 C

Listener questions and comments:

  • Question from Gallion - I need an income trade that produces about 7-8% per year, what should I be looking at?
  • Question from Salsot - Pennies! Did they help or hurt options?

Around the Block/This Week in the Markets

  • Sep 20: Jobless Claims, Existing Home Sales, Fed Balance Sheet
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