Option Block: The 100th Episode Extravaganza

Options Brokerage Information

Option Block: The 100th Episode Extravaganza

Posted October 25th, 2011 by Mark S. Longo in Brokerage Information

Option Block: The 100th Episode Extravaganza

Trading Block: A brand new Options Insider website! Are there any legs to the rally? Where was VIX during this rally? Netflix, the window maker, released earnings after the bell.

Odd Block: Unusual activity in:
Bank of America - (BAC)
Signs of optimism in the progress towards a European debt crisis deal has helped push Bank of America Corp. (BAC) and the rest of the financials higher this morning but early option activity in BAC suggests at least one investor believes this is the top in the companyís share price, at least for the rest of this week.
H.J. Heinz Co. - (HNZ)
A bearish put spread open today with an investor buying the December 50-55 Put spread on a 3-1 ratio 6,000 by 2,000 times. A net debit of $.625/spread was paid for this strategy that reaps maximum profits if HNZís shares settle at $50, or 5.9 % lower from todayís price, at December expiration. Earnings on the 18th.

Xpress Block: John Grigus from OX discusses his interesting first two calls of the day - customers ask "Why was I assigned on OTM options? Why was I not assigned on ITM options?" A review of the first few weeks of trading in SPXpm.

Around the Block: An update on Netflix, will it bounce? Amazon earnings out 10/25, after the bell - is it wise to have underlying going into the earnings?

About Mark S. Longo

Mark S. Longo is the founder of The Options Insider Inc. - a firm dedicated to providing free options information, education, news and analysis for options users. Whether it's on TheOptionsInsider.com, a leading online options destination; through Options Insider Radio, the world's only radio network for options users; or through a growing number of newsletters and live events, Mr. Longo continues to provide new ways to spread the word about options.Mr. Longo's analysis of the options market has appeared in a wide variety of domestic and international publications, including The Wall Street Journal, Financial Times, Reuters, Futures Magazine, and more. As one of the few industry commentators with practical options experience, he has developed a substantial following among industry veterans and newcomers looking for insight into this complex market.Mr. Longo began his career as an options trader on the floor of the Chicago Board Options Exchange.

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