Trading Block: We are living in the Bitcoin futures world. At 5:00 pm CT on Sunday, XBT futures opened at $15,000 and 890 contracts were traded by 7:15 pm. Total volume Sunday overnight was a reported 3,001 contracts, with nearly 20 trading firms actively participating.
Apparently Bitcoin is destroying the world.
Options Question of the Week: Everyone's caught Bitcoin fever these days. The first "real" futures launched today on CBOE. Our question is simple - are you going to trade them this week?
- Heck Yes!
- Hell No!
- I already traded them
- Sticking w/Coinbase et al
Odd Block: More Jan 2019 50 "catastrophe" puts in Tesla Motors Inc. (TSLA). Put-palooza in GameStop Corp. (GME). Call love in Nucor Corporation (NUE). Cheapie call roll in Glu Mobile Inc. (GLUU).
Mail Block: Last week's option question of the week
The war for Bitcoin derivatives is heating up again. CME Group is launching futures on 12/18. CBOE just announced a 12/10 launch date. Not enough? Nasdaq also announced futures with a planned Q2 2018 launch. With so many choices-How will you trade Bitcoin in 2018?
- 50% - CBOE Futures 12/10
- 28% - CME Futures 12/18
- 3% - Nasdaq Futures Q2 2018
- 19% - "Old School" Bitcoin
Listener questions and comments:
- Question from WillyCat9 - Hi Mark great show keep up the good work! I am used to a diagonal call spread being buying a longer term call with lower strike while selling a shorter term call with higher strike, much like a covered call. However, the TOS platform option scanner often generate a diagonal spread with buying shorter long call while selling the longer term. Can you explain the difference between the two? Why is the TOS identifying selling the longer term while buying the shorter term as high probability trade? I want to trust the TOS scanning result but it seems kind of risky. Would love to hear your thoughts, Thanks!
- Question from Taj Penaso - Hi, will there be options for bitcoin once the futures are traded?? Or just the futures until there are tradeable ETFs available? Thanks
Around the Block/Economic Reports:
- Dec 12 - PPI, Treasury Budget
- Dec 13 - CPI, FOMC Meeting
- Dec 14 - Jobless Claims. Retail Sales
- Dec 15 - Industrial Production