Option Block 511: Revenge of the Time Combo

Trading Block: March Madness Poll - Vote today for TradeKing or E*Trade to find out who will go to the finals against Interactive Brokers, who beat OptionsHouse to make the final round. Stocks higher as the end to a rocky quarter nears. Yellen killed the strong dollar rally.

Stocks to watch:

• Tesla – new electric Model 3 unveiled today. A modest rally for Tesla – up only 5% intraday.
• Lululemon – earnings announced yesterday and stock looks good, trading up about 10% post-earnings.

Odd Block: Calls and puts trade in Dynavax Technologies Corp. (DVAX), calls trade in SPDR Homebuilders ETF (XHB), and calls and puts trade in Pure Storage, Inc. (PSTG).

Mail Block: Listener questions and comments

• Question from Gabe Rich: Mark, this is weird; huge buys for $INTC Apr 33 calls and the IV goes down?! I thought the market makers will push the price up when more buyers are around demand/supply. Thanks, I thought you might explain this since you are a former $INTC market maker.
• Question from 777 - with commodity based ETF options - anyway to trade roll risk?
• Question from Flyguy - If I sold a put $1 on Jan 16 with a current trading price of $.50 and stock goes to $5 -what happens and what is my risk?

Around the Block: What’s coming up in the week ahead?

• Thursday - The USDA Prospective Plantings report will provide the official estimate on what farmers across the United States are planting this year.
• Friday, April 1 - The biggest economic release of the month, the Employment Situation Report, will hit newswires before the market opens on Friday.
• Earnings: Blackberry