Pricing SNAP straddles, biggest options screw-ups, and more.
Dwonload Option Block 599: Pricing SNAP Straddles
Trading Block featuring special guest Ophir Gottlieb, CEO of Capital Market Laboratories, Editor in Chief @CMLviz
SNAP: The first big IPO of the year is off to the races. Supposed to list at $17, opened at $24 and traded up to nearly $26, up over 50% from the listing price.
Earnings earlier in the week:
- Tuesday – Target
- Wednesday – Best Buy
- Earnings today: After the bell – Costco
Odd Block: Puts trade in Shake Shack Inc (SHAK), calls trade in Sirius XM Holdings (SIRI) and calls trade in Dollar Tree (DLTR).
Strategy Block: Uncle Mike Tosaw discusses profit-taking scenarios.
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
Options Pop Quiz – If $SNAP opens at $17 what price would you give the ATM straddle expiring 3/10? AKA how much movement do you expect?
- Between $1 – $2
- Between $2 – $3
- Between $3 – $4
- Over $4
Around the Block/This Week in the Market: It is a very heavy week as far as economic reports go with a bulk of them coming on Tuesday and Wednesday. Where did February go? Mar 2 – Jobless Claims