Option Block 600: SNAP Straddles and Earnings Bets
Episode description
Trading Block: OCC announced that total cleared contract volume in February was 333,411,251 contracts, 1% from February 2016 volume. Index options volume was up 11% with 39,247,030 contracts in February. An escalating broker price war has begun.
Odd Block: Puts trade in iShares Iboxx $High Yield Corp (HYG), calls trade in NRG Energy, Inc. (NRG) and calls trade in Dicks Sporting Goods (DKS).
Mail Block: Options #QuestionOfTheWeek #Oscars Edition.
#WarrenBeatty screwed up Best Picture. What's your biggest #Options screwup?
- 37% - Held onto shorts too long
- 37% - Time Decay killed me
- 11% - Gamma Exploded In My Face
- 15% - Vega Snuck up on My Delta
Listener replies:
- Comment from Matt Benson - Calls in TSLA last week, lol (in response to OQOTW)
- Comment from John Dakota - Too soon to tell. My one mistake was putting an Iron Butterfly on wrong had to lose 20 and a DT for it. Just took off BBY for 200+!
#QuestionOfTheWeek, part deux
SNAP #Options arrive Friday. Assuming $SNAP is still $25 - price the 1-week straddle exp. 3/17 (aka how much movement)
- Between $1 - $2
- Between $2 - $3
- Between $3 - $4
- Over $4
Listener questions and comments:
- Question from Hopgrower - Mark and The meatball, love your shows. My question is as follows: How much heart burn does this thought process give you. I have a directional bias and I buy a slightly in the money call 45 to 60 days out. The stock moves in my favor then stalls or retraces slightly. I then turn it into a vertical. Please fire away. Always learning. Thanks, Hopgrower
- Question from Tom Drake - Whats up with Mike's SLV collar?
- Question from Sean - You have discussed closing positions prior to earnings on past shows. Why would I take an OTM options off the table before the announcement? Is that not exactly when I want to have the option?
Around the Block:/This Week in the Market:
- Mar 6: Factory Orders
- Mar 7: International Trade
- Mar 8: Productivity and Costs
- Mar 9: Jobless Claims
- Mar 10: Unemployment
- Mar 10: Export Prices