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Trading Block:? Options traders were preparing for 10% swings of Tesla before week’s end based on a straddle. On Wednesday, volume in Twitter options increased fivefold, all but erasing value in a series of bullish contracts. ICE reports record Q1 profit. After its June IPO, Euronext plans to be listed on three of its exchanges. May 6 marks the fourth anniversary and it’s a reminder that not much has changed.
Odd Block: Put sellers in BBEP, call spreads trade in Cameco Corp., calls trade in DLX, closing put seller in FTR.
Strategy Block: Calendars vs. verticals, part deux.
- Comment from Erik Ruehr re: Mike Tosaw?s survey. I say vertical spreads are better now. Thanks for the show.
- Comment from Tom S.: In response to Uncle Mike?s survey: In general, I?d say vertical spreads trade much better now.
- Comment from LJO: Put me down in the plus column for verticals.
Around the Block: Some earnings left: CSCO, TTWO, CBOE, GRPN. Macro, macro, macro, 10-year, 30-year, the Fed. Will social media/tech stocks hold up?