Trading Block: Earnings! Apple did not reach all time highs, but its close price is an all time highs. All time highs happened on April 28, 2015 @ 134.54. MIAX launches 15th options exchange with MIAX-Pearl. ICE Cool on Options: Speaking at the Credit Suisse Financial Services Forum in Miami Beach, Fla., Jeff Sprecher, founder, CEO, and chairman of ICE, painted a less than rosy picture of the options market.
Odd Block: Calls trade in True Car Inc (TRUE), calls trade in Union Pacific Corp (UNP) and puts trade in Amgen, Inc (AMGN)
Mail Block: Questions, comments, quizzes.
Options #QuestionOfTheWeek - Trading single #Calls and #Puts is fine, but smart #Options traders use spreads. What is your go-to spread?
- Vertical/Ratio Vertical
- Calendar/Diagonal
- Butterfly/ Iron Butterfly
- Iron Condor
Listener question:
Question from Game Day Dog - Hi. I have done well buying calls & puts, but have been practicing with credit & debit vertical spreads - see the DPZ trade picture. I am worried about max risk. How is this different than selling a naked option if my 195 protection is OTM at expiration? Can you discuss the "surprises" or things to watch for with vertical spreads? Thanks & great show.
Around the Block: What is on the radar for the rest of this week?
Earnings this Week:
- Tuesday: Potbelly, T-Mobile
- Wednesday: PepsiCo, Inc., Cisco Systems, Inc., Groupon, Marriott International
- Thursday: Time Inc., Waste Management
This Week in the Market
- Feb 14: Producer Price Index
- Feb 15: Consumer Price Index, Retail Sales, Industrial Production, Business Inventories
- Feb 16: Jobless Claims, Housing Starts