The Option Block

Option Block 228: Mini Mania Interview Block: Today's Guest: Kevin Davitt, Global Execution & Futures Broker at RCM. RCM will be hosting a webinar this Thursday night. Trading Block: There was a bit of a selloff in the market due to news coming out of Cypress, which is rekindling fears of a Europe crisis. Today is the day: Mini contracts begin trading today. What is the OX procedure and policy for...

Option Block 227: When Options Make an $800,000,000 Profit Trading Block: The S&P's are right up against their all-time highs. Citadel exited their E-Trade position, which is down 75% from when they bought it, and still turned an $800M profit with hedging and options. Minis begin trading Monday, March 18. Odd Block: It was a hard luck day for E-Trade (ETRA), running of the bulls in KBW Regional Ba...

Option Block 226: Up, Up and Away Interview Block: Today's guest is Joe Garcia-Rios, Founder of Rios Quantitative & President and Chief Portfolio Manager of Advanz Analytics Group.  Trading Block: There is no sign of the end to the rally. VIX has an 11-handle for the first time since 2007. Minis launch next week! ISE will launch their second exchange -- the Topaz Exchange. The Odd Block: March 13....

Option Block 225: Spreads with Benefits Trading Block: The market is apparently shrugging off the Sequester with a mild rally as of mid-day. Implied and realized volatility cross, which is a very rare occurrence. Google feeling the love and broke the 800 level, while Apple feeling the heat falling well south of $450. Groupon is showing some signs of life bouncing dramatically off lows around $4.25...

Option Block 224: No Watered Down Options Information Trading Block: Downward movement across the market, making a late reversal. Not a ton of movement in our favorite fruit company. VIX had a big turnaround during the day. Facebook sells off. AB allegedly watering down their beer - stock unaffected. Odd Block: Fresh call buyers in TD Ameritrade Holding Corp. (AMTD), profit taking via Bank of Amer...

Option Block 223: Making Money for the End of the World Interview Block: Today's Guest: Ed Walczak, Principal Trader at Harbor Financial.   He specializes in options on the S&P futures contracts, and does everything from ratios to credit spreads. Trading Block: Another day, another selloff, another VIX cash pop. The return of realized vol to the downside. Ford engine investigation. Is Uncle Mike r...

Option Block 222:  Bonds. Contrarian Bonds. Trading Block: The majority of the market sold off by 1%.   On the news that bonds might sell off, they rallied. Apple breaks through 450. Google hanging around the 800 level. Odd Block: A collar went up in Texas Roadhouse (TXRH); call spreads trade in Gerdau SA (GGB), and calls active in Blackstone Group (BX). Xpress Block: SPX and April Condors are hop...

Option Block 221: Suspiciously Well-Timed Call Buying Trading Block: The market was mixed today, with the VIX cash off slightly. GM profits down from 2011, stock down 3%. Jobless claims decrease last week. Zynga flirts with $4 before retreating back to $3. Former RIMM CEO dumps the rest of his stock, never a good sign. “CBOE Group Holdings Inc., which became a publicly held company in 2010 after y...

Option Block 220: Who Needs Annuities When You Can Sell Puts on GOOG? Interview Block: Today's guest is Doug Berman, Vice President of Agriculture Derivatives, RCM Asset Management. He talks about Why this is an extremely exciting time in the corn option market. The unique relationship between implied volatility and pricing How traditional strategies like covered calls/collars perform in the Ag re...

Option Block 219: Trading Options to Infinity and Beyond Trading Block: Zynga blows the doors off the market - the 2.5 puts were the sale of the century. Disney reported earlier this week, and is selling well. Activision gets a little bit of a bump to the upside. Shareholders filing suit against Apple as their cash reserve grows. Odd Block: Puts trade in DeVry Inc. (DV), puts trade in JPMorgan Cha...

Option Block 218: Do Not Pay for Juice Trading Block: Selloff keeps some life in the VIX cash. Profit taking, and rumbles out of Spain, weigh on the market. Facebook down 5%. Apple down 2%. Odd Block: Puts trade in Dell Inc. (DELL), a massive 1x2 Call Spread Trades in Delphi Automotive PLC (DLPH), time spreads trade in Bruker BioSciences Corp. (BRKR), and calls trade in Questar Corp. (STR). Xpress...

Option Block 217: Now What Are We Going to Watch? Trading Block: Most of the major indexes closed fractionally down, weighed down by some less-than-stellar earnings. There was a bit of interesting activity in Facebook. RIMM, now known as BlackBerry, announced the new BlackBerry 10. Former founder of PFG sentenced to 50 years. Netflix pulls a reverse Widow Maker. Odd Block: Big put spread goes up i...

Option Block 216: Embracing Degeneracy Trading Block: Most indexes closed fractionally up or down on the day. Vol continues to stay at record lows. Action in Ford and Facebook so far this week. Odd Block: Puts trade in Western Union Co. (WU), a block of calls trade in Facebook Inc. (FB), and calls trade in Take-Two Interactive Software (TTWO). Xpress Block: Alex discusses the latest from the Idea...

Option Block 215: Apple and More Apple Trading Block: There was a pronounced selloff in Apple following earnings. The interesting news is that almost everything was up today, except Apple. Odd Block: Unusual activity in CBOE, Infinera Corp. (INFN), and Stryker Corp. (SYK). Around the Block: More earnings next week. There could potentially be a big move, given how low volatility has been recently.

Option Block 214:  Apple Moves and Hysteria Ensues Trading Block: The markets actually moved today! Apple breaks down below the 500 level. Oil continues to rally. Citi and BoA are both taking it on the chin following earnings.   Odd Block: Some upside love in Brookdale Senior Living (BKD), calls active in Avail Pharmaceuticals, and puts selling in DeVry Inc. (DV). Xpress Block: Apple earnings have...

Option Block 213: Waxing Nostalgic about Floor Days Trading Block: Apple hits 11-month low and is hovering around $500 strike off news of decreasing iPhone demand. Apple selloff put some vol back into the market. Good earnings -- despite the Apple news, 80% of S&P 500 companies that have reported so have beat their earnings estimates. A lot of volume in Dell. Odd Block: Puts trade in Telefonaktieb...

Option Block 212: Sweep the Leg, Johnny Trading Block: There was a broad rally across the street, but VIX cash languishing yet again. Alcoa earnings send out a resounding "meh," with the stock essentially unchanged. It’s a premium sellers dream. BATS executes hundreds of thousands of transactions outside NBBO.  CBOE rebranding: "Execute Success." Are you sure about that? Odd Block: Calls trading i...

Option Block 210: New Year, No Volatility Trading Block: It’s the first episode of 2013! The world hasn't ended, since the heroes in Congress once again settled on a deal. Volatility update. Odd Block: Takeover talks spur call trading in Zipcar (ZIP), and a large VXX put spread trades. Xpress Block: Earnings season begins next week with Alcoa on 1/8. Strategy Block: Mike Tosaw expands upon volatil...

Option Block 209: 2012 Year in Review   2012 Year in Review Block: A lot of whip-saw action in the market today, given the uncertainty in Washington. ETPs have added substantial end-of-day volatility. Scandal in the retail market, specifically the implosion of PFG, has lead to a steady decline in retail options volume. Peak 6 acquired Penson and created Apex Clearing, which caused a lot of problem...

Option Block 208: Options Fuel the Exchange War Trading Block: News is circulating of a potentially sizable acquisition/merger of ICE and NYSE Euronext, which includes ARCA and AMEX. The market was fractionally up on the day. Jan vol futures are still trading below cash. RIMM closed to the upside. Odd Block: A pickup of bullish paper in the XLF, a three-legged trade in the iShares Dow Jones Transp...

Option Block 207: Ratio Combos and Weekly Premium Trading Block: We saw a broad rally across the market as rumors of a deal to avert the fiscal cliff are spreading. There was also a mild VIX selloff today. Mark put on my first taste of Apple last week - Dec 465/455 put spread. The latest on GLD. Miami Options Exchange (MIAX) finally launches. Bill Brodsky stepping down as Chairman & CEO of the CBO...

Option Block 206: The Secret World of Open Interest Trading Block: It was a bloody day on the market; screens were nothing but a sea of red. Apple is now creating its own vol excitement, this time in the 500's. Is Tosaw a degenerate weekly premium seller? VIX cash headed towards the upside. GLD is at a 13 vol -- how low can it go? Odd Block: More bullish trading in Quicksilver, Inc. (ZQK) and Gold...

Option Block 205: The Great Collar Debate Trading Block: Most of the market was unchanged today. Vol levels in Apple have been attractively low, is Tosaw back on the short put train? GLD sees a little move to the upside. Odd Block: Unusual activity in: Dole Food Co, (DOLE), iShares MSCI Emerging Markets Index (EEM), and iShares MSCI Japan Index (EWJ). Xpress Block: Alex Jacobson discusses the late...

Option Block 204: Juicy AAPL Puts Trading Block: Market roughly unchanged on the day. Apple reversing its recent selloff on renewed Apple TV rumors. Apple & FoxConn also investing in American manufacturing and distribution. Holiday sales looking strong so far. Jobless claims drop after Hurricane Sandy. Sirius declares dividend and buys back $2B worth of shares. Are they yet another company trying...

Option Block 203: Still Talking About the Fiscal Cliff Trading Block: A bit of a selloff across most of the major indices. Apple only up slightly today. Ford trading around the 11.5-11.40 range. Odd Block: Andrew Giovinazzi gets to run through some of the interesting and unusual activity he saw in the market, including: Leap Frog (LF), Verisign (VRSN), and BioMimetic Therapeutics, Inc. (BMTI). Xpr...