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Option Block 474: The Fed Is Ruining Everything

The Option Block
The Option Block
Episode • Oct 30, 2015 • 59m

Trading Block: Earnings!

  • Before the bell today: Coca-Cola, CME Group Inc., the biggest futures-market operator, said profit soared in its third quarter, lifted by higher trading volume and growth in the company’s market data and information services business.
  • After the bell today: BAIDU, Electronic Arts, Expedia, LinkedIn Corporation, Starbucks.
  • EA - ATM Straddle $4.70 - Approx. 6.2%

Also, on this day (October 29) in 1929: The New York Stock Exchange crashed in what would be called the Crash of '29 or "Black Tuesday."

Odd Block: Calls trade in CBS Corp (CBS), calls and puts trade in Walgreens Boots Alliance Inc. (WBA), and calls trade in Kate Spade and Co. (KATE)

Listener Mail: Listener questions and comments

  • Question from 603 - Before a report like FOMC, is buying calls bad due to Vol premiums?
  • Question from 777 - What quirks are there with time decay - during the last few weeks with ITM vs. OTM?
  • Question from Angus G - On your TopStep radio show just now you mentioned "buying WTI Crude Oil calls". What is the ticker symbol for these products?! When I put WTI into my broker I get "W&T Offshore". I thought USO was the best/only way to speculate on CL using options? You mentioned however that there might be better options that more directly mirror crude... Thanks

Around the Block: Earnings on Friday: CBOE Holdings, CVS, Chevron.

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