Option Block 288: The Exciting Road to Nowhere
Trading Block: A selloff at the very end of the day. Most major indexes down half a point. Interesting movement post Facebook and Apple earnings. In hindsight, the Apple skew makes a lot more sense post Google earnings.
Odd Block: Puts trade in Ultrashort Euro ProShares (EUO), calls trade in Tile Shop Holdings Inc (TTS), calls trade in Fortress Investment Group LLC. (FIG) and spread trades in Apollo Global Management (APO)
Xpress Block: Facebook displaced Apple is the top 5 most active. GLD has dropped out of the top 10, surpassed by SLV. This has been the most active October on record at OX!
Listener Mail Extravaganza: We have even more mail!
- Question from Herb Slojewski - Where can I get info on how to trade Twitter options, Options guy? What sort of plan do you have for Twitter when it starts trading. Thanks.
- Question from BillyMo @b1llmoo - As I sit here watching Apple go from down 25 to green. Is there any updates on After Hours option trading?
- Question from Richard D - Mark and the brain trust! I have 2 more questions for the queue! I happened to be the temporarily happy holder of a bullish FB diagonal Nov 2 50 / Nov 8 55 call spread that I held through earnings. As I watched the stock very quickly balloon almost 10% to around $54 and change I thought about what I could do in the after hours to lock-in any of this gain, knowing it could likely disappear by morning (yes Alex I love your pressing for evening+ trading hours in all instruments!). If I just owned the call (which I do not do due to the Vol crush), I could have shorted stock, but alas I had a spread with a short in it. I was wondering if there are any options that don't leave me naked any stock to capture any of this after hours gain? I suspect not but I figured I would ask because this has been a topic on your show. I also was not sure if there was a different way to structure the trade to begin that would have afforded me some after hour opportunities with something other than a vertical or bullish time spread like I have? Oddly enough, my broker does NOT count owning a call as a hedge against a short stock position and gives me the full margin position of the short w/out the hedged call, so even a call/short stock after hours move would not work for me (synthetic put :) Is this common? Thank you!
Around the Block: Exchange week coming up. CBOE 11/1 Before & CME 11/4 Before. Disney - 11/7, Groupon - 11/7, Activision - 11/6 and Tesla - 11/5