Option Block 319: Why Would Anyone Do That?
Trading Block
Indexes are at the same level as this morning but the S&P 500 could hit another record close. VIX high on the continuing drama in Ukraine. Staples falls on disappointing quarterly numbers. Federal Reserve data released on Thursday. Ukraine and Nat Gas. Jobless claims Thursday - Nonfarms Friday.
Odd Block
Puts trade in James River Coal Company (JRCC), puts trade in CommonWealth REIT (CWH), buy-write traders in MeetMe (MEET) and long close in SPDR KBW Regional Bank ETF (KRE)
Xpress Block
Alex clears up the confusion caused by the upcoming dividend of the Qs. Soda Stream lit up the tape late in the session.
Mail Block
Question from J. Charles - My question for the all-star panel is about analytics platforms. I have heard you guys mention a variety of different suites, live LiveVol. I pretty much just use my brokers tools and they work fine for me. I can pull up the options chains, click on the strikes and options I want to trade, click on the option to enter a trade and all that stuff. I can also pull up skews and research. It really does the job for me. What is ti that these other platforms offer you that would be worth paying $200+ a month in extra fees? Sorry but I am no an OX customer - although the show is pulling me in that direction. Hope that does not hurt my chances of being featured on the program.
Comment from Bryan Nic - @Options Just pulled up OB on your app. Hundreds of episodes waiting for me. Thats serious streaming goodness. Commute is covered now. Thx.
Question from Avent - Bought 50 ZNGA Mar 5 calls for $.17 last month. They are sitting around $.60 now. What should I do - sell? Sell half and let the rest ride? Roll to April 6 calls for $.28? Take the stock and then write covered calls against it? I am still mildly bullish on ZNGA, but worried about a near term correction.
Question from Phillip Gregory, Dallas, TX - I like your advice about writing puts to get long stock. But I keep hearing people warning me about gap risk. What exactly are they talking about? Is this something unique to options or are limit stock orders just subject to gap risk?