Trading Block: The trade war scares no one???
Earnings:
- Tuesday - PepsiCo
- Thursday - Delta Airlines
- Friday - JPMorganChase, Citi, Wells Fargo, PNC Bank
- SPX is celebrating its 35-year anniversary.
Odd Block: Rolling put spread in iShares Russell 2000 Growth Index (IWO), vertical roll in Endo International PLC (ENDP) and small verticals in Amgen, Inc. (AMGN)
Mail Block: Listeners have their say
Options question of the week: Traders generally fade vlatility going into holidays (today notwithstanding). What's your favorite vehicle when you want to wager on the dark side of volatility? Short-term or Long-term - that's up to you.
- 27% - Short VIX Futures
- 17% - Long $VIX Puts/Spread
- 33% - Long $VXX Puts/Spread
- 23% - Short $VIX Calls/Spreads
Another options question of the week: Trading options during earnings season can be challenging. Some live for it while others avoid it. Do you hold options positions through earnings announcements? If so, what is your approach? Or do you prefer to trade just before/after the event? Or is it all too risky?
- Yes, Short Premium
- Yes, Long Premium
- No, Too Risky
- I trade around the event
Listener questions and comments:
- Question from Splitsville - Why is long put/covered call a "collar" while short put/long call is a "risk reversal." Never understood that one.
- Question from Alto - Which do you think has a better chance of happening - no more earnings calls or after hours options trading? And which do you think would be more impactful for options traders? Do you have a preference?
Around the Block/This Week in the Markets:
- Jul 10 - JOLTS
- Jul 11 - PPI
- Jul 12 - Jobless Claims
- Consumer Price Index, Treasury Budget
- Jul 13 - Import and Export Prices, Consumer Sentiment