Option Block 692: Mixing Things Up A Bit
Episode description
Trading Block: Is the VIX "Whistleblower" just more noise or it there some teeth this time? Volatility's awakening spurs record long position in VIX futures.
Strategy Block: Discusses legging into OTM vertical call spreads
Odd Block: More JAN 2019 50 "Catastrophe" puts in Tesla Motors (TSLA), long-term put love in Community Health Systems (CYH), and calls trade in Radian Group Inc. (RDN).
Mail Block: Options question of the week
It's been a rocky week for the markets. People are understandably scared and confused. That raises the question: Which product are you most concerned about over the next 30 days? Which product would you not touch with a 10-foot pole?
- VIX
- SVXY
- SPY
- Bitcoin: XBT, BTC, etc.
Listener questions and comments:
- Comment from Matt Williamson - Good guesses and discussion. It's much simpler. $5 covered calls trading for $4.30. Again, why? How? Buy the $5 put and arb for 15% ROI!...Sure. I bought some 15s, some 20s, some 5s. Guess no one is concerned about a 97% correction over the next year...
- Question from J3dingle - Hi Mark, In yesterday's Option Block, you said you personally took an options position in SVXY. I was curious, if you could say, what kind of position a pro takes. Thanks, Joseph
- Comment from Scott Somer - Another day another day with a very large sell off heading into the start of the Option Block and an up move in the S&P Futures during the "Trading Block" #OptionInsiderRadio #OptionBlock #GreasyMeatball #RockLobster...If we get a Rule 80B Sell off, that will finish off $SVXY unless second month VIX Futures are north of 40.
- Comment from MrMagoo - There are no regulators working under Trump. It's a free for all with HFTs eating retailers for lunch.
Around the Block: How will VIX run going forward? S&P closed three points above the 200-day moving average. Can we make another run at the all-time highs?