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 enough to sustain it. From a black swan event in the economy and markets, it would have a greater, deep...
May 20, 2014•59 min
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 Corp (CHMT) Xpress/Mail Block: We are mixing it up today with some questions from OX clients: Please ex...
May 16, 2014•58 min
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 buyers trade in Hillshire Brands Co. (HSH), and put spread sellers trade in WisdomTree India Earnings (E...
May 13, 2014•56 min
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 fourth anniversary and it's a reminder that not much has changed. Odd Block: Put sellers in BBEP, call s...
May 09, 2014•55 min
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) - closing roll, and closing put buyers trade in NQ Mobile Inc. (NQ). Xpress Block: Late May/Early June is t...
May 06, 2014•1 hr 4 min
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 (MTL) Strategy Block: A question/poll for our audience: Given the level of the VIX, is this market a...
May 02, 2014•39 min
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 Finance Corp. (NRF) Put spread sales trade in Bank of America Corp (BAC) - potential roll down Xpress Bl...
Apr 29, 2014•55 min
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 call buys trade in SandRidge Energy Inc (SD), closing call buys in iShares MSCI Japan ETF (EWJ), and...
Apr 25, 2014•1 hr
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) (this was a loser), and a review from 3/24/14 - call buyers jump in Quest Diagnostics Inc. (DGX) (pos...
Apr 22, 2014•52 min
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 Inc., May call spread trades in Western Digital Corp. (WDC), put buying in Target Corp. (TGT), and clos...
Apr 21, 2014•58 min
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), calls trade in Millennial Media (MM), call spreads trade in IAC Interactive Corp (IACI), and puts trade in Dean Foods Co. (DF). Xpress Block: Happy Tax Day! Market are thin, given this shortened week. Yahoo and Google on the ...
Apr 15, 2014•1 hr
Option Block 329: The Great SPY vs. SPX Iron Condor Debate Trading Block: A sea of red on the street today. A lot of directional paper going through OX today. Terrible data coming out of China. CBOE Short-Term VIX product (VXST) launches. Odd Block: Getting the RDA of RDA puts (RDA), big put blocks trade in Bill Barrett Corp. (BBG), and IV jumping in Tower Group International Ltd. (TWGP). Xpress Block: A mass exodus from momentum stocks. What exactly caused this? Mail Block: Commissions and Buy/...
Apr 11, 2014•58 min
Option Block 328: Earnings Season Is Back Trading block: Momentum has been taken out of the market for the past two days - which way will we move? Earnings season is upon us. GLD rundown with Uncle Mike. Xpress Block: Some hedges were being lifted today. Google the big name on the OX desk. Strategy Block: This week, Uncle Mike Tosaw discusses selling puts in a down market. Around the Block: Bank earnings a little later this week. What more could come out of Ukraine? Is "buy the dip" still there?...
Apr 08, 2014•40 min
Option Block 327: You, Too, Can Be an FBI Junior Agent Trading Block: March options volume rose 14%. ADV was 16,931,924 contracts, equity options volume was 321,641,596 contracts. FBI to investigate high frequency trading - the FBI wants your help! Odd Block: Big call purchases in DFC Global (DLLR), buy-write in Williams Companies, Inc. (WMB), bullish bet in Resolute Energy (REN), and big block of puts trade in Corning (GLW) Xpress Block: Google now trades on an adjusted basis: Class A and Class...
Apr 04, 2014•1 hr 2 min
Option Block 326: Options Trading for Bitcoin Trading Block The Fed is not turning off the spigot anytime soon. Ukraine easing tensions combine to boost the market. Options trading for Bitcoins - Atlas 2.0 launched in Hong Kong and North America. Regulatory rule unlikely for HFT. Author Michael Lewis releases a new HFT book - Flash Boys. Odd Block Puts trade in Genpact Limited (G), Call spreads trade in Grupo Televisa SAB (TV) and Call sales trade in iShares MSCI Emerging Markets ETF (EEM) Xpres...
Apr 02, 2014•55 min
Option Block 325: SPX vs. SPY vs. Steven Seagal Trading Block: A mild day on the street. VIX cash taking a little breather. A lot of put buying in Google, Tesla, Netflix, Priceline, etc. Lululemon gets its first big pop in a while. TLT reaches a one year high. Odd Block: Combos trade in the VIX, straddle trades in EQT Corporation (EQT), calls trade in Ares Capital Corp. (ARCC), and puts trade in SPDR Barclays Capital High Yield (JNK) Xpress Block: Growth was in short supply today on the OX desk ...
Mar 28, 2014•56 min
Option Block 324: Behold the Power of the Stupid Trading Block: A mild day on the street. Controversy over SPX settlement on Friday. Mutual fund use of options: public holding and trends (presented at RMC). Minis one year later - boom or bust? Odd Block: Call buyers jump in Quest Diagnostics Inc, (DGX), big call roll in Coronado Biosciences Inc. (CNDO), puts trade in Spectrum Pharmaceuticals, Inc. (SPPI), and call sellers in Prologis Inc. (PLD). Xpress Block: Alex talks in depth about the SPX se...
Mar 25, 2014•54 min
Option Block 323: Rebar Futures Extravaganza Trading Block: Russian President Vladimir Putin is an investor in Swiss-based oil trader Gunvor Group Ltd. Time for the global derivatives volume guessing game! Put on your thinking caps and guess the winners in the various product categories: indexes, ags, metals, and more. Odd Block: Calls spreads trade in Alpha Natural Resources Inc. (ANR); calls trade in Mast Therapeutics Inc. (MSTX); calls trade in Royal Bank of Scotland PLC (RBS), and: puts trad...
Mar 21, 2014•1 hr 4 min
Option Block 322: When 50 is the New 70 Trading Block: The VIX was up 25% in the last week. FIA Boca update. US derivatives exchanges have seen improved trading volume. In the US, three of the top five US exchanges grew in Feb. Odd Block: Calls trade in UQM Technologies (UQM), call buyers jump into Silicon Image, Inc. (SIMG), puts trade in Montage Technology Group (MONT), and call sellers try on some DSW Inc. (DSW). Xpress Block: A quiet day at OX. Some activity in triple digit names and the 10-...
Mar 18, 2014•37 min
Option Block 321: Old School Bullish Paper Trading Block: A big selloff on the market today. Angela Merkel yells at Putin. A big day for the banks. The numbers are in! $21.64B derivatives traded in 2013. $12.22B of futures. $11.7B in equity names. VXST options coming in April. More exchanges are on the way - for better or worse. Odd Block: Some very interesting paper in IRDM, AG, TSM, and XRAY. Xpress Block: Three new OX products are nearly ready for release, IRIS - Integrated Rapid Information ...
Mar 14, 2014•1 hr 2 min
Option Block 320: Filling Your Britches with Fear Trading Block: A mild selloff on the street today - a resounding meh! Congrats to Andrew for passing the Series 65 exam! A big day for energy. VXST: Is there any interest there? Odd Block: Calls trade in Plug Power Inc. (PLUG), calls trade in MeetMe Inc. (MEET), call buyer with stock in Technology SPDR ETF (XLK), and buy-write in Encana Corp. (ECA) Xpress Block: An update on energy/nat gas trading at OX. A very quiet day; are we in the eye of the...
Mar 12, 2014•56 min
Option Block 319: Why Would Anyone Do That? Trading Block Indexes are at the same level as this morning but the S&P 500 could hit another record close. VIX high on the continuing drama in Ukraine. Staples falls on disappointing quarterly numbers. Federal Reserve data released on Thursday. Ukraine and Nat Gas. Jobless claims Thursday - Nonfarms Friday. Odd Block Puts trade in James River Coal Company (JRCC), puts trade in CommonWealth REIT (CWH), buy-write traders in MeetMe (MEET) and long cl...
Mar 07, 2014•57 min
Option Block 318: The Putin Puts Trading Block: Putin’s show of force in Crimea spooks the street. VIX cash sails back above the 16 handle. Ukraine and Nat Gas craziness. Alex has a story: Trading firm Jump Trading LLC gives $25 million to medical research project. Odd Block: Puts sellers trade in Market Vectors Russia ETF (RSX), calls trade in The Fresh Market Inc. (TFM), cpreads trade in EXACT Sciences Corp. (EXAS), and put buyers trade in JC Penney (JCP) Xpress Block: The dominate trading at ...
Mar 04, 2014•57 min
Option Block 317: The Old Goldman Bait and Switch Trading Block: A mild rally on the street today. JCPenney on the move, jumping as high as 26%, its greatest one-day percentage gain in least 30 years! Tesla announced on Wednesday its big expansion plans will be partially funded through a $1.6 billion bond issue. Goldman’s investor day study. Odd Block: Call buyers in American Axle and Manufacturing (AXL), both calls and puts trade in CBL & Associates Properties, Inc. (CBL). Xpress Block: Som...
Feb 28, 2014•1 hr 1 min
Option Block 316: The Great Put Roll Down Trading Block: A strong rally on the street. Vol is holding up well despite the rally. SolarCity and Sina today after the bell. Odd Block: Review from 12-30-13: Call buyers trade in Mattel Inc. (MAT). Plus, calls trade in Nvidia Corp. (NVDA), put spreads trade in WisdomTree India Earnings Fund (EPI), put buyers in New York Community Bank, Inc. (NYCB), and put sellers in Infinity Pharmaceuticals Inc. (INFI) Xpress Block: Netflix, Priceline, Tesla all ligh...
Feb 25, 2014•1 hr 1 min
Option Block 315: The Great Iron Fly Vs. Condor Debate Trading Block: Market up 0.5%, Facebook buys WhatsApp for $19B, and Groupon takes a wild ride after hours Odd Block: Put buying in Veeco Instruments Inc. (VECO), puts trade in iPath S&P 500 VIX Short Term ETP (VXX), put spreads trade in EcoLab Inc. (ECL), and put spreads trade in iShares MSCI Emerging Markets (EEM) ETF. Mail Block: Alex wanted another go at Snowbird's question from last week. Question from Infimy - What is the ASPs favor...
Feb 21, 2014•1 hr 3 min
Option Block 314: Late-Night Gamma Scalping Trading Block: Catching an updraft on the street today. A decent slate of earnings helped bolster the market. New Fed Chief didn't completely destroy the market with her first remarks. WSJ writing about someone purchasing 3200 Feb $15 calls in Magic Jack before big newsletter mention. Big day for Apple. Odd Block: Put sellers finance call buyers in Mechel OAO (MTL), and calls trade in E Commerce China Dangdang (DANG). Xpress Block: The classic names we...
Feb 14, 2014•57 min
Option Block 313: Yelling at Yellen Trading Block: A rather quiet day on the street. It has been a strange week for vol/VIX. Does this buyback draw a line in the sand at $500 for Apple? Icahn is dropping his call for expanded buyback program after getting little support. BATS is talking about launching a second options exchange after their merger. Bitcoin taking it on the chin since our last show. An exchange stopped taking withdrawals and it is crushing the price. Odd Block: Puts Trade in iShar...
Feb 11, 2014•57 min
Option Block 312: Juicy Buffett Puts Trading Block: Market up 1%. Is the brief correction over? VIX far below the 20-handle. Twitter taking it on the chin; down 23% off news that subscriber growth is slowing. Zynga back up in the $4.5 range again. Is it risk reversal time again? Odd Block: Giant collars go up in Zynga Inc. (ZNGA), puts trade in NuPathe Inc. (PATH), calls trade in Global X Uranium ETF (URA), and giant collar trades in TD Ameritrade Holdings Corp (AMTD) Xpress Block: Big volume in...
Feb 07, 2014•1 hr 5 min
Option Block 311: VIX Drops the Ball Trading Block: An aggressive selloff today, S&P off 41 handles, NASDAQ down 107 handles. VIX cash passes the 20-handle. A weak start to February. Apple and GLD were the lone greens on the screen today. That makes for a happy Tosaw. The OIC announced today that 389,821,135 total options contracts traded in January, the seventh highest monthly volume ever. TTWO earnings after the bell. Odd Block: Collars go up in Two Harbors Investment Corp. (TWO), call buy...
Feb 04, 2014•56 min
