Option Block 63: Rho – The Forgotten Greek
Trading Block: GDP revision; tech sector rally; expensive stock with historically low implied volatilities; Chipotle discussion; post-split Citi vol; oases in the desert
Odd Block: SLV – ADV comes down to 500k; massive closing trade on July 25 puts – 100k closed at $0.10, or at the same price they were purchased. Pulte Group (PHM) & KB Homes (KBH) – size $1-wide strangles go up in both. AK Steel (AKS) – ADV = 12k, does 35k, the bulk of which is in the Joly 16’s. 5:1 call-to-put ratio. Raising prices to offset higher material costs.
Xpress Block: Multipliers initiated firm-wide for certain products = waking up to margin calls. NFLX at or near 52-week high. 10-year note and 30-year bond as indicators of general markets and interest rates.
Strategy Block: Interest rate ramifications of owning options. LEAPS will no longer be cheap if interest rates rise. Rho discussion.
Around the Block: Holiday premium ship has sailed. What are weeklys doing to vol? The prospect of multi-week weeklys. LNKD options to begin trading Friday.
Coming up at….
Know Your Options: The Joplin, Missouri-based charities that Mike mentioned can be found at: Missouri Southern University, and; College Heights Christian Church.
You can also look for new webinars to begin again in June on Sunday nights.
optionsXpress: Monthly wishlist – get your votes in now.
Option Pit: Sign up now for the “”Option Pit Life Boat”” to save yourself from the consequences of poor education. Call Mark for details at 888-TRADE-01
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