Option Block 673: TSLA, XRT, CZR, Olive Garden Babies and More
Couple names baby after Olive Garden, because fusilli Jerry was already taken.
Trading Block: Dow sets new record by hitting 24,000 and SPX hits 2,657. This was the fifth 1,000-point milestone for the Dow this year, first hitting 20,000 on Jan. 25. The market is still in rally mode, awaiting tax deal. North Korea unable to spook the market.
- Question from Henry Gannett - Is $VIX way up today due to call buying/pricing? It's at 11.70 right now, instead of maybe 9.0 at other, recent SPX all-time highs. The VIX is umbrage-ing me right now!
Odd Block: More Jan 2019 50 "Catastrophe" puts on the tape yesterday - OI breaks 30k. Funky ratio risk reversal in SPDR S&P Retail ETF (XRT). Put spread vs. near-term calls in Aetna Inc. (AET). Near-term Dec call love in Caesars Entertainment Corp. (CZR).
Strategy Block: Uncle Mike Tosaw discusses buying front month OTM calls and the power of gamma.
Mail Block: Listeners weigh in
Options question of the week: SPY always dominates the options volume charts. But what do you think people are actually trading in SPY? Take a guess at the Top OI position in SPY right now. No cheating (or checking with your broker) - use your grey matter & your "gut" to pick the right one.
- Jan 262 Call
- Dec 2019 150 Put
- Dec 280 Call
- Jan 240 Put
Questions and comments:
- Comment from FContangotrader - @OptionPit @Options @OptionVol The best way to show off your Italian heritage :) gluten free. RE: Couple names first child after Olive Garden.
- Question from Real Yute - I see that every strike have its own bid and ask prices, with different volatility. Now my question is.....can options be day trade....are scalped just like with stocks...? Are is volatility only move few times maybe a month....are from the options market open....the prices for options (strikes) will start to change just like how its changing in the stock market....?
Around the Block/ Economic Reports this Week:
- Nov 30: Jobless Claims, Personal Income
- Dec 1: Construction Spending
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