The Option Block

Trading Block: Wall Street is using the power of Dodd-Frank against itself. Shake Shacks (SHAK) unhedgeable risk. Chipotle (CMG) stock rallying following higher analyst rating. Google (GOOGL) tech deals on pace to surpass 1999. Odd Block: Calls trade in CONSOL Energy Inc. (CNX), calls trade in McDonalds Corp (MCD), and puts trade in iPath S&P 500 VIX Short Term ETN (VXX). Mail Block: Listener ques...

Option Block 434: Buy SPY Calls and Go Away Trading Block: Buying SPY for the summer. The absence of fear - How low can the VIX go? Stocks rise to near records; oil jumps above $60. Someone made a quick buck trading cable mergers - Cablevision soared 18 percent on Wednesday Odd Block: Calls trade in Sphere 3D corp. (ANY), calls trade in TYCO Intl PLC (TYC), and calls trade in Advance Auto Parts, I...

Trading Block: Icahn says "dramatically undervalued" Apple should trade at $240. AccuShares is set to list a couple of interesting products on Tuesday: AccuShares Spot CBOE VIX Fund Up Shares (VXUP) and AccuShares Spot CBOE VIX Fund Down Shares (VXDN). Odd Block: Calls and puts trading in CBRE Group Inc. (CBRE), puts trade in DSW Inc. (DSW), and calls trade in Molson Coors Brewing Company (TAP) St...

Trading Block: Rally ho on the market today. Is Avon in play? Stock halted after rallying over 20%. ADV 11k contracts - today over 75k! Avon Products Inc. said it never received a takeover bid from PTG Capital Partners Ltd., a firm listed in a securities filing as offering $18.75 a share for the struggling cosmetics company. Odd Block: Calls trade in Michael Kors Holdings (KORS), calls trade in Po...

Trading Block: OPEC: Oil prices to stay below $100 for next decade. April U.S. options volume at 327.6m, down from March as spreads tighten. Highlights from The Options Industry Conference in Miami last week. Odd Block: Calls and puts trade in the SPDR S&P 500 ETF (SPY), puts trade in Altisource Portfolio Solutions (ASPS), and calls trade in Iron Mountain Inc. (IRM) Strategy Block: Tosaw discusses...

Trading Block: Bond, James Bond. A bullish bond market rally could be in our future. VIX going into Non-Farm Payroll - could we see a big move? Odd Block: Puts trade in Whole Foods Market, Inc. (WFM), puts go up in iShares iBoxx High Yield Corp ETF (HYG), calls trade in Alibaba Group Holding Ltd (BABA) Mail Block: Listener questions and comments Question from Dmitry Shesterin: Where do you see mor...

Option Block 429: Avenging Pacquiao Trading Block: Bonds taking it on the chin. Disney stock soars, lifted by the superhero power of The Avengers. CBOE reports 35% of their total volume is from weeklys.     Odd Block: Puts roll in iShares Russell 2000 index ETF (IWM), massive put block trade in SouFun Holdings Ltd (SFUN), and puts trade in Clean Energy Fuels Corp. (CLNE)   Outside Trading Hours: I...

Option Block 428: The Thorax of the Trade Trading Block: Tattoo snafu inks Apple iWatch wearers. Options volume slid in first quarter. Bad sign? Retail investors all in: TD Ameritrade. The dollar is on its longest losing streak since 2011. India VIX caps monthly advance as futures rollover below average. Tesla loses ground ahead of battery event.     Odd Block: Calls trade in PowerShares DB US Dol...

Option Block 427: Rocking AAPL Earnings Trading Block: AAPL earnings after the bell. AAPL Stats: ·   ATM weekly straddle: $7.20 - approx 5.4%. ·   ADV: 988K contracts. ·   Today: 1.7M contracts. ·   Call/put ratio: 2.1/1. ·   Net deltas: short 670k. ·   Calls sold on bid roughly equal to calls bought on ask - puts also evenly divided. ·   AAPL volatility bets surge in options market as buyback bec...

Option Block 426: Hedging Crude Oil Is Not Rocket Science Trading Block: NASDAQ composite rises above March 2000 record close. Roots of 'flash crash' go back further than you thought at CME. Oil jumps 3 percent, hits 2015 high on Yemen, supply concern. Earnings today include (before the bell): GM, Procter and Gamble, Caterpillar, Dow Chemical, Southwest Airlines, Dunkin Brand Groups; and (after th...

Option Block 425: Scratching Heads & Taking Names Trading Block: A mild day on the street. IBM Earnings after the bell today - IBM trading around $164.30. Costco stock rises today after upping dividend - reauthorizing $4B buyback program. This is how one trader made millions on Disney - shares of Walt Disney have had a great year.     Odd Block: Calls trade in Owens Corning (OC), puts trade in Wol...

Option Block 424: NFLX and the Roll to Oblivion Trading Block: The "Widowmaker" rides again - NFLX has a HUGE post-earnings rally, up $56. BATS to file for second U.S. options exchange. IPO: Stock of online marketplace Etsy surges in trading debut. Shares of high-speed trading company Virtu Financial Inc. have risen 17 percent in their stock market debut Thursday. Ben Bernanke is not the problem,...

Option Block 423: Unusual Activity Palooza Trading Block: How traders cashed in big on the GE deal. VIX does record volume - it’s been a while.   Odd Block: Calls trade in Dunkin Brands Group (DNKN), puts trade in Valero Energy Corp. (VLO), calls trade in AT&T (T).   Strategy Block: A special strategy block from Andrew about volatility     Mail Block: Question from Ingles - I like options, but the...

TRADING BLOCK Crazy realized volatility going down in Hong Kong markets - EWH. The Apple Watch release. Its time for the "Global Derivatives" guessing game.   ODD BLOCK Calls trade in ConocoPhillips (COP) Puts trade in Crestwood Equity Partners LP (CEQP) Calls trade in New Oriental Education & Tech (EDU MAIL BLOCK Question from Mark Brant - When to close weekly short option positions on expiration...

Option Block 421: The Tesla Options Protection Package Trading Block: A sea of green on the street today. Tesla having its best day in five months - Back over $200. Oil leaps 5% on tempered Iran view, slower U.S. inventory rise.   Odd Block: Calls trade in Market Vectors Oil Services ETF (OIH), calls trade in Outerwall Inc. (OUTR), calls trade in Harley-Davidson Inc. (HOG)     Strategy Block: When...

Option Block 420: Farewell to the Viceroy Trading Block: A sea of green in the market today - everything up! Wall Street regulator fears up for labor fight with its workers. High-frequency trading worries are fading, ConvergeX finds. Tesla CEO Elon Musk teases new product. Spoiler Alert: It is not a car.   Odd Block: Puts go flying is Tyson Foods (TSN), calls trade in HCP, Inc. (HCP), and puts tra...

Option Block 419: The Great Weekly Option Trading Debate Trading Block: The market off just a fraction. Call option trades target return of $100 US crude oil. Options traders getting paid following Buffett to Kraft takeover. Odd Block: Calls trade in EOG Resources Inc. (EOG); puts trading in iShares Emerging Markets ETF (EEM), and; puts trade in Market Vectors Semiconductor ETF (SMH)     Xpress Bl...

Option Block 418: Something Has To Work Trading Block: Earnings before the bell today: Geopark (GPRK) Posts Quarterly Earnings Results, Beats Estimates By $0.17 EPS. Earnings after the bell today: Flexion Therapeutics, Concord Medical Services Holdings Limited, Vericel Corporation. Senator Warren questions SEC chair on broker reforms. Volcker Outlines Plan for Overhauling Financial Regulation. Oil...

Option Block 417: Big Boy AAPL and Crazy VIX Settlement Trading Block: The Dow welcomes Apple. Informed traders prefer options says academic research. Options market sees bottom in gold with urgency on hold at Fed.  Earnings today (before the bell): Lennar (LEN); after the bell: Nike.   Odd Block: Unusual traders in Sina Corp. (SINA)   Xpress Block: Alex discusses covered writing strategies     Ma...

Option Block 416: Blasting Out Cheap XLE Puts Trading Block: Rally ho on the street! Options traders are starting to pay up for crash protection, according to a recent note from Goldman Sachs. Long-dated crash put protection costs on the [S&P 500] have more than doubled over the past 9 months.   S&P 500 declines for third straight week as dollar resumes rally. OPEC says low oil prices may hit U.S....

Option Block 415: How to Play the Lottery Trading Block: Nasdaq enters energy futures trading to compete with CME, ICE. Lumber Liquidators’ stock soars after company offers business update. Shake Shack gets burned: Stock falls 7%. Earnings today before the bell Dollar General reported record fourth quarter and full year 2014 financial results. After the bell includes Aeropostale Inc. and ULTA Beau...

Option Block 414: The Princess Bride Fed Trading Block: A mild day on the street. Earnings after the bell today include: Urban Outfitters and Qihoo 360 Technology. Nymex reports incorrect energy prices. Oil rebounds from early drop on modest Cushing stock build. What will the Apple Watch do to the stock?   Odd Block: Puts trade in iShares Dow Jones US Real Estate ETF (IYR); puts trade in CIT BioPh...

Option Block 413: When Not To Use Options Trading Block: A quiet day on the street today. ISE preps third options exchange. Expect more volatility in oil says Exxon CEO. NASDAQ near 5000 amid ECB plans, big pharma deal. Earnings today include: Costco, Kroger.   Odd Block: Calls roll in T-Mobile US Inc. (TMUS), big moves in Canadian Solar Inc. (CSIQ), and OTM puts trade in Inc. yet Corporation (INC...

Option Block 412: Sneaky Deltas Trading Block: Earnings after the bell today: Caesars Entertainment: Late to the party but still a star. Nasdaq hits 5000. Stocks just registered their largest monthly gains in nearly four years. CBOE to expand VIX options trading hours from Monday. Option activity in Lumber Liquidators. What would the Dow look like if it included Apple?     Odd Block: Closing and r...

Option Block 411: Futures Traders vs. Stock Traders Trading Block: Earnings today include: (Before the Bell) Kohl’s, 3d Systems Corp, SeaWorld Entertainment, LifeTime Fitness, Marriott Vacations Worldwide, Magellan Health, Anheuser-Busch InBev, Sears, Avago Technologies. After the bell:  Gap, JC Penney, Weight Watchers, Crocs, Herbalife. Oil edges higher towards $62, ample supplies still weigh. Ap...