The Option Block

Option Block 354:  When to Close Out a Spread Trading Block: VIX and VIX cash. LULU taking it on the chin. It’s time for the Trading Patterns Guessing Game once again!   Odd Block: Calls roll in Danaher Corp (DHR), calls roll in Wisconsin Energy Corp (WEC) - Buy Jul, Sell Jan., closing collar in AGCO Corp (AGCO) - Buy call/sell put, and ratio call spread unwind in Beazer Homes USA, Inc (BZH) - Sel...

Option Block 353: Crazy Combos and the Great Open Interest Debate Trading Block:  A volatile day on the street - S&P got as low as 1952. VIX cash ticking up nearly one handle. Gold a big mover today - to the delight of Uncle Mike Tosaw. It’s time for the Trading Patterns guessing game again - this time with GLD!  Lumber Liquidators (LL) gets crushed, down over 20% today. Options volume already 10x...

Option Block 352: Hot GoPro Action Trading Block: A mild selloff ahead of earnings. The newcomer GoPro was very active today, as well as everyone’s favorite fruit company, Apple.   Odd Block: Call buyers trade in URS Corp. (URS), puts buyers with stock trade in King Digital Entertainment (KING), call buyers trade in Zions Bancorp (ZION), and put spread buyers trade in iShares MSCI Germany Index (E...

Option Block 351: Dollar General Insider Loses Millions Trading Block: A quiet day on the street, given the shortened trading week. A stealth rally in Gold. Traders preparing pre Google earnings. Under 400K ADV in VIX today.   Odd Block: Call spreads trade in Dollar General Corp. (DG), size ratio spreads trade in Carnival Corp (CCL), puts sellers trade in Companhia Energetica Minas. (CIG), and sma...

Option Block 350: TWTR Risk Reversal Rundown Trading Block: Interesting intra-day activity, but ended up closing basically unchanged. VIX cash back in the 11 handle range. A resurgence in Twitter. A banner day for Valero. Odd Block: Calls trade in PowerSecure International, Inc (POWR), calls roll in Ashland Inc. (ASH), puts trade in SM Energy Co. (SM), put spreads roll in Tractor Supply Co. (TSCO)...

Option Block 349: A Bonafide Covered Strangle Trading Block: Lululemon had a big move today, as did Facebook and Tesla. Is time once again for the Trading Patterns Guessing Game!. Odd Block: Put butterflies trade in Dow Jones Industrial Average ETF (DJX), call sellers trade in AerCap Holidings NV (AER), call and put sellers (covered strangle?) trade in PG&E Corp. (PCG), and same month call rolls t...

Option Block 348: Rampant Insider Trading The Trading Block: More of a micro, rather than a macro day today. Gold up on the day. Is VIX too low? Lululemon had a stealth rally last week. New Amazon Fire phone. Visa popped up the day.  A study by professors at NYU and McGill University in Montreal shows insider options trades precede about a fourth of US M&A deals. Odd Block: Call sales trade in Ver...

Option Block 347: Bringing Guns to the Trading Pit Trading Block: A very mild day on the street. Everyone still loves Tesla. What is up with gold volatility?   Odd Block: Calls spreads trade in Fairchild Semiconductor Intl. (FCS), calls trade in Nexstar Broadcasting Group, Inc (NXST), calls trade in St Jude Medical, Inc. (STJ), puts roll trade in SPDR Barclays Capital High Yield (JNK).   Xpress Bl...

Option Block 346: Say Hello to Exposure Fees Trading Block: A sea of red on the broad street today. VIX: more fear than fear itself? A big day for energies. Lululemon missed their earnings mark.  Odd Block: An update of recent activity in Dollar General (DG), newsletter put seller trade in Galena BioPharma Inc (GALE), risk reversals/collar in Jet Blue Airways Corp (JBLU), and size put buyers trade...

Option Block 345: Beating the Street on Dollar General Trading Block: A mild day on the street. Apple stock split. A possible Deutsche Bourse sale of ISE. Odd Block: Activity review from last week: Carl Icahn disclosed a 9.4% stake in Dollar General (DG) and shares soared. We knew something was up last week. Call buyers in USG Corp (USG), puts rolls trade in Kodiak Oil and Gas Corp. (KOG), and cra...

Option Block 344: Premium Palooza in Dollar General Trading Block: A great day on the market. Amazon rises after announcing that they will be making an announcement. What is lurking under the low VIX? Complacency? Odd Block: Unusual activity in Tesoro Corp (TSO), Target Corp. (TGT), Dollar General Corp. (DG), and NuStar (NS) Xpress Block: Alex discusses about how a few select clients may be able t...

Option Block 343: AAPL Ratio Spread Madness Trading Block: A slow day on the street today. All Apple - all Amazon - nothing below the "A"s. OCC announces cleared contract volume declined in May, while 2014 volume remains up.   Odd Block: Call ratio spreads trade in Apple Inc. (AAPL), long-term closing call sale in Fortress Investment Group LLC (FIG), closing put buys before earnings trade in Ascen...

Option Block 342: Mini Death Knell Trading Block: A mild uptick on the street today. Apple rallies and the market follows. With the VIX moving closer to its 9.39 historic low, many commentators are now discussing it as a "complacency index," writes John Nyaradi of Wall Street Sector Selector   Odd Block: Risk Reversal trades in iShares MSCI Australia Fund (EWA), call buyers trade in Scientific Gam...

Option Block 341: Weird Activity In Colgate-Palmolive Trading Block:  A surprising VIX given the upcoming holiday weekend. Record low levels in some beloved Option Block names. We saw a massive upside call going up in VIX early this week. The U.S. options exchanges are working jointly toward the development of a uniform obvious error rule to nullify or adjust transactions that meet the definition...

Option Block 340: Revenge of the Guts Strangle Trading Block: What will bring back volatility? A black swan event? Russell Rhoads said via MarketWatch that investors are showing a “justified complacency” given that recent VIX jumps don't stay at those levels for long. "One-off events," such as the Ukraine, get investors' attention for a while and then wanes. It's enough for a VIX spike but not eno...

Option Block 339: Potential Front Running Activity Trading Block: Today we have a very special trading block segment from Uncle Mike Tosaw about Russell and RVX vol. Is VIX in a deep sleep? Odd Block: Combos trade in the iShares MSCI Emerging Markets (EEM), call spreads trade in Travelers Companies (TRV), calls trade in Expeditors International of Washington (EXPD), and calls trade in Chemtura Cor...

Option Block 338: The Great Mobile Trading Debate Trading Block: A strong surge to the upside, Russell leading the charge. Russell 2000 index (RTY) option costs at Feb 2007 levels. Who is playing out in this product? Apple and Beats headphones - two Tosaw favorites.   Odd Block: Combos, rolling short stock position in Denderon Corp. (DNDN), call buyers trade in VeriFone Systems Inc. (PAY), call bu...

Option Block 337: Looking Back on the Flash Crash Trading Block:  Options traders were preparing for 10% swings of Tesla before week's end based on a straddle. On Wednesday, volume in Twitter options increased fivefold, all but erasing value in a series of bullish contracts. ICE reports record Q1 profit. After its June IPO, Euronext plans to be listed on three of its exchanges. May 6 marks the fou...

Option Block 336: Earnings and the Death of Minis Trading Block: A mild day on the street. Apple catching a bid. Tuesday’s computer error at NYSE ACRA and NYSE AMEX options markets resulted in almost 20,000 erroneous trades.   Odd Block: Call buyers trade in Nike Inc. (NKE), call sellers trade in Gilead Sciences, Inc. (GILD), put spreads trade in iShares Barclays 7-10 year Treasury ETF (IEF) - clo...

Option Block 335: The Giovinazzi/Tosaw Spectacular  Trading Block: A slow day on the market today. TLT was one of the few things to light up the tape. Yellen, the Fed and bond buying. An update of the VIX and S&P with Andrew.  Odd Block: Call buyers in Auxilium Phramaceuticals, Inc (AUXL) Call buyers jump into EQT Corp. (EQT) Call spreads trade in Verso Paper Corp (VRS) Calls roll in Mechel OAO (M...

Option Block 334: Are Mini Options Dead? Trading Block: Close to close is only half the story today. Russell and the NASDAQ lead the way. Stocks that pay a nice dividend are clear outperforming stocks that do not. Three candidates selected to oversee OPRA.  Odd Block: Puts go up in Diebold Inc (DBD) A three-way trade goes up in Range Resources Corp. (RRC) Calls buyers go up in Norhtstar Realty Fin...

Option Block 333: AAPL, AMZN Earnings Roundup Trading Block: A mild rally on the street today. Apple earnings play-by-play with Uncle Mike Tosaw. A very boring Apple earnings - will this become the next Microsoft? What is the future for Apple? What is the future of the Minis? Will 7 to 1 be the death nail? Odd Block: Strangles, calls and puts trade in Eagle Rock Energy Partners LP (EROC), closing...

Option Block 332: How to Waste a Good Hedge Trading Block: Back to rally mode on the street. Vol retreats yet again. Names before the bell: Haliburton (HAL), Hasbro (HAS) - After: Netflix (NFLX)   Odd Block: Put sellers trade in SBA Communications Corp. (SBAC), call buyers trade in Merrill Lynch/Market Vectors Semiconductors ETF (SMH), review from 3/27/14 - calls trade in Ares Capital Corp. (ARCC)...

Option Block 331: Maximizing Your IRA   Trading Block: It was a pretty slow day, with all major indices basically unchanged on the day. Expiration issues prompted many phone calls to the optionsXpress desk. Earnings aren’t running over premium sellers like the last time. Pit trading helped out the CME last week. HFT narrative still active in the market.  Odd Block: Big call buy in Wal-Mart Stores...

Option Block 330: Falklands War Volatility Trading Block: A mild day on the street. The Russian incursion of Ukraine is still having its effects on the market. CBOE VXST off to a good start. Hedge fund VIX bets on the decline. Odd Block: Calls go up in Carnival Corp. ( CCL) , c alls trade in Millennial Media ( MM) , c all spreads trade in IAC Interactive Corp (IACI), and p uts trade in Dean Foods...