Option Block 411: Futures Traders vs. Stock Traders

Trading Block: Earnings today include: (Before the Bell) Kohl’s, 3d Systems Corp, SeaWorld Entertainment, LifeTime Fitness, Marriott Vacations Worldwide, Magellan Health, Anheuser-Busch InBev, Sears, Avago Technologies. After the bell:  Gap, JC Penney, Weight Watchers, Crocs, Herbalife. Oil edges higher towards $62, ample supplies still weigh. Apple rains on stock market parade.

 

 

Odd Block: Puts trade in Exelixis, Inc (EXEL), puts trade in SPDR S&P Metals and Mining ETF (XME), and all sellers in iShares MSCI Japan ETF (EWJ)

 

Xpress Block: The Schwab mobile app hits 1 million downloads. Also, its tax season!

 

Mail Block: Listener questions and comments

• Question from Brian Collamer - Hi Mark, back in October I sent this question and I see you ran with it in a couple of other shows: You mentioned that when selling options the fastest theta decay occurs in the 45-30 day range.  I thought that was only true for ATM options? Do OTM options decay the fastest at 60-70 days and then kind of flatten out? In each show you had asked where I had seen/heard this. LiveVol blog and forum. What do you think? Thanks for the great content! PS: Futures Roundtable needs to be twice a month IMHO.
• Question from Thomas: Is there an active spread market for options on crude futures? Also do you feel that futures traders make better options traders than stock traders?

 

Around the Block: More earnings: Friday, February 27:  Goodrich Petroleum, Isis Pharmaceuticals