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Option Block 622: Selling Crazy Penny Calls

The Option Block
The Option Block
Episode • May 23, 2017 • 1h 3m

Trading Block: Earnings highlights include Lowes (Wednesday), Best Buy, Costco, TD Ameritrade, GameStop (Thursday).

Odd Block: Calls trade in Pandora Media Inc. (P), calls trade in Energy Transfer Equity LP (ETE) and calls trade in MGM Resorts Int. (MGM).

Mail Block: Questions. Comments. More

Options Question Of The Week: $VIX =11.20. $VIX June Future = 12.40 $VIX Weekly 11 puts = $.15, Weekly 13 Calls = $.15. What's your trade?

  • Buy 13 Call for $.15
  • Buy 11 Put for $.15
  • Sell 13 Call for $.15
  • Sell 11 Put for $.15

Listener Questions:

  • Question from Game Daydog - Whoo Hooo !! I made the boot camp show!!! He's right.. I did take a bruise, but my position was good. The stock gapped thru my position. Is there an option strategy that offers the most gap-thru protection?
  • Question from Jlers -Best broker for Iron Condors?

Around the Block/This Week in the Market:

  • May 23: New Home Sales
  • May 24: Existing Home Sales, FOMC Minutes
  • May 25: Jobless Claims, International Trade
  • May 26: Durable Goods, GDP, Consumer Sentiment

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