Option Block 141: Getting Long Prison Premium
Trading Block: Market down today in the wake of weak non-farm numbers on Friday. Yet Apple still up, if only by 1/2%. VIX heading north. Itís the $1billion day -- Microsoft buys 800 AOL patents for $1B and Facebook buys Instagram for $1B.
Odd Block: Interesting and unusual activity in America Online (AOL) and Corrections Corps of America (CXW).
Xpress Block: John Grigus sits down at the OX desk and discusses the possibility of mini-stocks (1/10th size).
Mail Block: Open Interest Question:
I am entering the world of trading weekly options. With monthly options I have been told to make sure there is at least 100 open interest when I consider buying an option. I'm noticing some of the weeklies I'm considering don't have much open interest even though they perform well in my back testing. My question is. If there is little or no open interest, is there a chance I will not be able to sell my option. Even at the bid price?
Around the Block: Looking to see if the vol can expand a little more - waiting for the bulls to come back. Keeping an eye on initial claims given the weak jobs number. Alcoa earnings 4/10, Google earnings 4/12.
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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