avatar

Option Block 550: Buy Your War Bonds Now

The Option Block
The Option Block
Episode • Aug 23, 2016 • 1h 3m

Trading Block: The one- year anniversary of the 8/24 flash crash looms near. Yellen speech at Jackson Hole set to dominate mood on Wall Street. VRX continues its roller coaster ride. Up another 8% today - volume 1.5 ADV by 12PM. Calls 1.5 /1 over puts, IV 30 61. Sep. ATM straddle approx. $4, approx. 13%. Confirmed Monday that it has hired Zoetis executive Paul Herendeen as its new chief financial officer.

Odd Block: Calls trade in Starbucks Inc (SBUX), calls trade in Marvel Tech Group (MRVL), puts trade in General Growth Properties Inc (GGP)

Mail Block/Options #QuestionOfTheWeek:

$USO $11, up 19% in Aug, SEP ATM steaddle= $.80, 10 Put= $.10, 12 Call = $.09.

Would you:

  1. Sell the Straddle
  2. Buy the Straddle
  3. Buy put/Collar
  4. Sell Put/Bull Risk Reversal
  • Question from Natalie L. - I keep receiving email promotions from an “expert” who says his top rule of trading is that he never buys options. He only sells them. What is this about? Is this a reliable approach to options trading or should I delete these emails?

Around the Block: A look at this week in the market:

  • Aug 23: New Home Sales
  • Aug 24: existing Home Sales
  • Aug 25: Jobless Claims, Durable Goods
  • Aug 26: GDP, International Trade, Consumer Sentiment

Switch to the Fountain App