Option Block 764: Trade War, GE Palooza, Risk Management and More

Published: Dec. 4, 2018, 8:18 p.m.

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Trading Block: Exchanges closed on Wednesday, December 5 in observance of a National Day of Mourning for the late George HW Bush.

Earnings Highlights:

  • Tuesday - Dollar General, HP
  • Wednesday - Five Below
  • Thursday - The Kroger Co., Broadcom, Michaels, Ulta
  • Friday - Big Lots

Also:

  • Oil selling off - WTI Crude back in the $40 handle.
  • Bitcoin crushed - BTC threatening 4000.

Odd Block: Tesla put summary, possible opening call sale in (GPOR), put love in (PVG), and put love in (BEL).

Strategy Block: Uncle Mike Tosaw discusses purchasing long delta in options.

Mail Block: Options question of the week

AAPL continues to take a beating - recently dropping below $175. We know many of you LOVE to trade $AAPL and this selloff creates opportunities. Looking ahead to Jan 2019 expiration- which trade would you prefer to make in AAPL right now?

  • Sell Jan 150P for $1.65
  • Buy Jan 150P for $1.65
  • Sell Jan 200C for $1
  • Buy Jan 200C for $1

Listener questions and comments:

  • Comment from Mark Brant: Bot a million DOGE because it was cheaper than BTC. Spikes off lows take about 60 days to show up. For free on Robinhood! Short put spreads USO OIH came in nicely! Andrew and Mark miss a lot of VIX trades because their bias is down. My bias is up. Always looking at the 16 delta Calls! NG RR is on fire! Eurodollar HV much lower than IV as per usual.

Around the Block/This Week in the Markets

  • Dec 3: Construction Spending
  • Dec 5: Productivity and Costs, Beige Book
  • Dec 6: Jobless Claims, Factory Orders
  • Dec 7: Unemployment, Consumer Sentiment
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