Option Block 389: Fly Adjustments and Dividends

Trading Block: A mild day on the street. Best Buy profit beats estimates as costs fall. Fresh SEC crackdown on ‘flash crashes.’ Correlation gauge for S&P 500 falls at fastest rate ever.

 

 

Odd Block: Upside call buyers in Axiall Corp. (AXLL), put roll in Stillwater Mining Company (SWC), and calls roll in Huntsman Corp (HUN)

 

Xpress Block: Behind the scenes at Schwab featuring the roll ticket.

 

Mail Block: Listener questions and comments

Question from Faye Cuzername - Thanks for the feedback on my Goldman trades by the way. It worked ok but I think I understand what I should have done. Got a new one for you. Bought an 11/7 weekly SPX fly 2010/2030/2050 for 6.80 on 11/5. The fly did not really move in value until Friday, even though SPX was slowly moving to short strike. Trade did everything I wanted but I thought I would be able to capture more profit on Thursday. What did I miss or am I just being greedy?

Question from Cuda6 - What is an easy way to spot an upcoming dividend using options? Thanks.

 

 

Around the Block: Presidential speech on immigration tonight. Crude and the 10-year.