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Download Option Block 580: Bringing Sexy Back to Box Spreads
Trading Block: Stocks mixed as Dow hits another new record high, flirting with 20,000. Crude and XLE up too. Wealthy investors show a Trump bump in confidence, UBS Wealth Management Americas reported Thursday.
Odd Block: Puts trade in Transocean ltd (RIG), calls and puts trade in SPDR S&P 500 trust (SPY) and calls trade in Hain Celestial Group (HAIN).
Mail Block: Question of the week and listener questions
#QuestionOfTheWeek: Financial advisors represent the last options frontier. What level of options knowledge do you expect from your advisor?
- None: I will do it myself
- Level 1: Buy Puts/Calls
- Level 2: Income & Vol
- Level 3: Option Specialist
- Question from Adam Sam – Hello again… I figured out a way to predict the direction of the market for the day with 75% accuracy. I am wondering what would be the smartest way to trade this info? Should i sell the opposite options OTM with 45 days? And buy them back at the end of the day? Or buy OTM in the direction it will move? I cannot predict the after hours so i want to get out at the end of the day. How would you hedge such trade? ?Thank you
- Question from BGT – What happens to options if the fed raises rates in December?
Around the Block/This Week in the Market:
- Dec 12 – Treasury Budget
- Dec 13 – Import and Export
- Dec 14 – PPI, Retail Sales, FOMC
- Dec 15 – Jobless Claims, CPI
- Dec 16 – Housing Starts
Earnings?Highlights:
- Thursday – Adobe, Oracle