Option Block 640: Leprechauns v. Trolls v. Apple

Apple earnings always seem to bring out the trolls

Trading Block: AAPL earnings after the bell on Tuesday. ATM straddle $6, or approximately 4%.

Options Earnings Poll: $AAPL earnings on Tuesday. The market is pricing a 4% move, which is approximately $6. Do you think $AAPL can do it?

Odd Block: Puts trade in Altria Group Inc (MO), puts trade in Pantheon NV (PTHN)

Mail Block: Listener Questions and Comments

Comment from Shawn St.Peter -?I think someone would buy those puts like a life insurance policy if for any reason something happened to Elon Musk, Tesla could drop like a stone. Elon is the reason they are successful and without him I’m not sure they could make it!
Comment from Brian Collamer – I see 950 of the JAN19 50 puts go up @ $1.10 marked “spread”. Market was 1.03×1.25. OI 28783 – FROM JULY 26
Question from Matthew Therrien:?I would be interested to see the guys discuss this strategy.
Question from Richard D: Mark and the Option Crusaders (last time I called you Option Luminaries so I’m going to keep inventing new titles until one sticks!), I’m on a roll and got my questioned answered Tuesday, and I figured I’d try my luck with two more. ?I also included a 3rd less serious question!

Often on segments like the odd block or similar segments on your other shows you talk about someone going bullish or bearish on certain contracts. ?For example let’s take the Tesla way OTM puts you have mentioned. ?You talk about someone wanting to be long those catastrophic Tesla puts, but for each trade there is some party taking the other side. ?Since there is always another party in these trades why isn’t it the inverse analysis – in this case for example that someone really wants to sell way OTM TSLA puts? ?Thanks!

Around the Block:

Earning this week:

This week in the market: