The Option Block Episode 17: SPX Problems, Payment Debate and Dividend Adjustments
- TRADING BLOCK: Bernanke spooks the market on 60 Minutes, Is a QE3 on the horizon, Commodity Rundown for silver and gold.
- ODD BLOCK: DG strangle loses ground after earnings, Bearish 1×2 put spread in CLWR, Bulls devouring calls ahead of COST earnings, Massive volatility skew adjustment in WMB.
- XPRESS/SPREAD BLOCK: Will the CBOE’s switch to pro-rata kill any remaining retail business in SPX? The debate over payment for order flow heats up. Also a resolution of the bad SPY print discussion from last week.
- STRATEGY BLOCK: OX just announced a special dividend. How do options contracts adjust for enormous special dividends in stocks?
- AROUND THE BLOCK: Employment is the key trigger moving forward. Also concerns spread over volatility structure in the marketplace. Is a broken wing butterfly the best entry point for VIX options traders right now? Should traders buy CSCO stock at these levels or write downside puts instead?
The Option Block All-Star Panel Includes:
- Mark Longo – The Options Insider
- Mike Tosaw – Know Your Options Inc
- Mark Sebastian – Option Pit
- Rob Kurzatkowski – OptionsXpress
- John Grigus – OptionsXpress
Visit KYO Inc.com or ISE.com for Mike Tosaw’s latest FX Options strategy webinar.
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