Option Block Episode 43: All Eyes on Japan
Trading Block: Japanese dead cat bounce? S&P 500 1260 magnet. Fear is in the air, traders are getting defensive. Commodity prices up.
Interview Block: Chris Wilson from Cycle Spreads talks about far out-of-the money trades, including bear call spreads, and bull put spreads. Chris also discusses what’s in the “”secret sauce”” of risk management, and deep out-of-the-money credit spreads.
Odd Block: VSI: ADV = 28 contracts. Thursday saw 5,000 May collars traded. Could it be in anticipation of 4/20 earnings? Red Hat: Earnings 3/23. With a Apr 44-45 call spread going up, is someone looking for a rally into earnings? VIP: Earnings before the bell on Thursday, someone sold Sep 12.5 puts 10,000 times.
xpress/Spread block: Commodities strong, Japan looking better than worse. Rob K. likes cocoa and natural gas.
Around the Block: All eyes on Japan. Volatility opens up good opportunities to get in and out of time spreads.
This Option Block all star panel includes:
Mike Tosaw – Know Your Options Inc.
Mark Sebastian – Option Pit
Tim Navabi – optionsXpress
Chris Wilson – Cycle Spreads
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