Option Block 476: Star Wars Straddles

Trading Block: Earnings!

• Before the bell today:  Apache, Celgene Corporation, Crocs, Inc.,
• After the bell today:  Walt Disney Company, DreamWorks Animation

News:

• DIS: $113. ATM straddle: $4.85, 4.3%. On a huge rally since massive selloff in August.
• OCC Cleared Contract Volume Declined 26% in October.
• Market falls in line with Yellen, but now Fed credibility at stake.

Odd Block: Calls and puts trade in Bank of America Corp. (BAC), calls trade in Metlife Inc. (MET), and puts trade in Straight Path Communication (STRP)

Listener Mail: Listener questions and comments

• Question from Kevin - How do you put on such a small trade for a client and still get paid?
• Question from David - There is huge open interest for TWTR at the 30 strike for the Nov monthly, almost 240,000 contracts evenly split. Can you talk about the possible implications? Is it interesting?

Around the Block: Earnings!

• Friday - Humana

Numbers:

• Nov 5: Jobless Claims
• Nov 5: GDP
• Nov 6: Unemployment