The all-stars were swimming in a sea of green as they discussed TSLA puts and election volatility.
Download Option Block 571: TSLA Puts and Election Volatility
Trading Block: Dow soars 300 points after FBI clears Clinton again. Are certain volatility funds raising election risk for the stock market? Earnings today after the bell
- Fogo de Chao
- Hertz Global Holdings
- Marriott International – ATM Straddle = $2.75, approx. 4%
- The Priceline Group – ATM Straddle = $82, approx. 5.5%
Odd Block: Calls trade in SPDR KBW Bank ETF (KBE), calls and puts trade in iShares MSCI Mexico Fund (EWW) and puts trade in Marathon Oil Company (MRO)
Mail Block/Options #QuestionOfTheWeek:
$SPX Weds Weekly straddle says 2% move through election. How much will SPX / $SPY move through Weds 11/9?
- Over 3% – crazy move
- Between 2-3% – big move
- Between 1-2% – mild move
- Less than 1% – “meh”
Listener questions:
- Question from RKintz – What do you guys think of out of the money puts on PBR? I noticed heavy buying across several expiries the last few weeks (possibly speculation of prolonged glut in oil supply)
- Question from Real RK – What do you guys think of being long a little less than one standard deviation puts OTM for Jan in everyones favorite hyperbolic name Tesla?
Around the Block/Earning Highlights This Week:
- Tuesday – Valeant, CVS Health
- Wednesday – Valeant, Mylan, Shake Shack, Macys
- Thursday – The Walt Disney Company, Nvidia, Kohls, Nordstrom
- Friday – JCPenney