Option Block 65: Brazen Premium Selling
Trading Block: Contextually speaking, the VIX is actually down, despite the overall market decline. Breaking through 1300. The beauty of diagonal put spreads. Potential for downside. Commodity rundown. AAPL announcements.
Odd Block: Ford (F) – ADV = ~150k, does 278k, 131k of which was all one trader. Focus Media Holdings Ltd (FMCN) – ADV = 5500, does 24k of size bearish activity. Micron Technology (MU) – ADV = 53k, does 62k of mostly opening bullish activity going into June and July. Potential earnings play. DISCA – Discovery Communications: ADV = 300, does 2k mostly in July 40 strike. GenProbe (GPRO) – gets crushed with 6500 Aug 65 calls sold on a bearish risk reversal.
Xpress Block: Forex continues to roll out. Summer doldrums offer the opportunity to re-evaluate strategies. Don’t get complacent.
Strategy Block: Don’t get naked without a plan. Credit spreads vs. leveraged naked options.
Around the Block: Pullback coming. Look for skew shift. Can 1300 be maintained to the downside? LNKD no longer offering cheap insurance. Thursday’s claim numbers. Crude inventories. Gasoline inventories. E3 week – look for large tech announcements.
Coming up at….
Know Your Options, Inc.: Calendars & Diagonal Spreads webinar coming up on Sunday night. Visit knowyouroptionsinc.com to register, or send Uncle Mike an email at miket@knowyouroptionsinc.com
optionsXpress: Sign up for forex trading. New Xpresso webinar on the grain markets for all…not just OX customers. If you can’t find the link to register, send an email to support@optionsxpress.com and they’ll get you set up. Also, if you’re not an OX customer, and you want to give it a try for free, go to optionsxpress.com/oxradio for more details.
Option Pit: Sign up now for Option Pit’s Lifeboat Service. Visit optionpit.com for more information, or send Mark an email at mark@optionpit.com.
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