Option Block 532: Dead Pro Wrestlers. And Brexit

Trading Block: Fed keeps rates unchanged, lowering odds for future hikes. Weak Nonfarms number derailed any Fed plans to raise in June. Earnings today: (before the bell) Oracle Corporation; (after the bell) the Kroger Co, Rite Aid Corporation.

CME Fedwatch tool:

• July probability: 7%
• Sep: 29%
• Nov: 31%
• Dec: 47%

Options Question of the Week: $VIX surging ahead of FOMC, but for how long? Where will $VIX cash close Friday 6/17?

• 19% - 18-20 range
• 47% - 15-17.99 range (Winner)
• 25% - Above 20
• 09% - Below 15

Odd Block: Calls trade in Activision Blizzard Inc. (ATVI), calls trade in iShares Barclays 20+ year Treasury ETF (TLT) and calls roll in Wells Fargo & Co. (WFC).

Mail Block: Listener questions and comments

• Question from Vegan: For an options newbie, how would I construct a trade with most possibilities to win? I understand that the potential profit might be small. What time frame is good as well?
• Question from Jim Duggan: FOMC and Brexit are approaching. What are some good ways to use options to play Brexit or FOMC?
• Question from John Doe: Do you have any specific strategies near or on expiration to profit from theta decay.

Around the Block: Brexit coming up on 6/23. Fade it? Buy into it? Much ado about nothing?