Option Block 748: Talking TSLA, Trade Wars and Cannabis Beverages
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Trading Block: The Trump trade deal: Bringing Canada and Mexico back to the table. The Tesla investigation was a farce: seems like the SEC just wanted some headlines.
Odd Block: A summary of Tesla (TSLA) puts, options palooza in New Age Beverages Corp (NBEV), put love & call stupid in WisdomTree TR/Japan Hedged Equity (DXJ) and opening put palooza in AVEO Pharmaceuticals (AVEO)
Strategy Block: Uncle Mike Tosaw discusses investing 101.
Mail Block: Volatility Flash Poll
The CBOE Skew Index alarmed many when it soared above 150. Of course, every index tells its own skew story. Which index do you think has the steepest skew right now (aka 25D put vol vs. 25D Call vol)?
- 41% - Russell 2000
- 26% - S&P 500
- 30% - Nasdaq
- 3% - Other
Listner questions and comments:
- Question from Oytrate - What is a reason that someone would write ITM covered calls? Seems like a waste of time to me since you're capping all of your upside.
- Comment from J3dingle - Thanks Mark, I really enjoyed that segment. There was so much going on at that time, I actually forgot all about the short selling ban. I remember seeing Morgan Stanley at sub-$10. Bear Stearns bought for $2, then up-ed to $10. Citi trading for less than a $1? (Pre-reverse split)
- Question from UpwardMomentum - Approximately what percentage of your unusual option activity trades are winners?
Around the Block/This Week in the Markets:
- Oct 1 - Construction Spending
- Oct 4 - Jobless Claims, Factory Orders
- Oct 5 - Unemployment, Consumer Credit