- HOST: ?MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
- CO-HOST: ANDREW GIOVINAZZI, OPTION PIT
- CO-HOST: MIKE TOSAW, ST. CHARLES WEALTH MANAGEMENT
- FIDELITY HOT SEAT:?TREY JARRELL, FIDELITY?S TRADING STRATEGY DESK
TRADING BLOCK
- VIX : 12.70 – 0.6-points lower than last show.
- Most active indices: VIX: 125k, SPY: 713k, SPX: 272k
- Most active equity options: DIS, BAC, TSLA, AAPL, AMD, BABA, GE, NVDA, NFLX, WFC
- Earnings Highlights:
- Netflix (NFLX)
- Walt Disney Company (DIS)
ODD BLOCK
- Mystery put update in Tesla Inc (TSLA)
STRATEGY BLOCK
- This week?s topic discusses applying technical analysis to option trading.
MAIL BLOCK
- Question from Douglas Tilley –?Hello!–Regarding long stock substitution:
- 1. With call options, are deltas additive? ?ie. why are (2) 40-delta calls so much cheaper than (1) 80-delta call ? ?This seems like buying equivalent total delta for about half the cost.
- 2. For more accurate stock substitution, do you ever use the technique of buying an ATM call while selling an ATM put ? (vs. buying calls for a desired total delta).
- What are the pros and cons (or nuances) of the 2 methods? ?I do notice that the 2nd method definitely requires more buying power, due to the short put. Thanks for all the education
AROUND THE BLOCK
- This Week in the Market:
- Apr 16 – Industrial Production
- Apr 17 – International Trade, Beige Book
- Apr 18 – Jobless Claims, Retail Sales, Business Inventories
- Apr 19 – Housing Starts