Uncle Mike & the Rock Lobster talk implied volatility, among other delights.?
Download Option Block 481: Theoretical Value & Implied Volatility
Trading Block: Earnings! Before the bell today:?Gamestop Corporation, Tyson Foods, Trina Solar. After the bell:?Palo Alto Networks. S&P 500 profits fall $25 Billion in first three quarters of 2015. Oil slides back lower after spike on Saudi statement. CME: Shrinking locally to grow abroad.
Odd Block: Puts trade in Freeport McMoran Inc (FCX), puts trade in Chesapeake Energy Corp (CHK), and calls and puts trade in Burlington Stores Inc. (BURL)
Listener Mail: Questions and comments from listeners
- Question from Vega -?Do puts and calls become more expensive ahead of events due to the risk premium? If so, how do I avoid that in the market?
- Question from Peter Davies – Stocks are being hit by latency sensitive strategies like HFT. Is that happening in options as well?
Around the Block: Economic reports this week:
- Nov 23: Existing Home Sales
- Nov 24: GDP, Consumer Confidence
- Nov 25: Durable Goods, Jobless Claims, New Home Sales, Consumer Sentiment