Volatility products are in the spotlight as VIX goes over 30
Listen to Option Block 690: Debating XIV and SVXY
Trading Block: A review of the week to date.
- VIX back up over 30
- S&P is back in selloff mode despite decent earnings.
- We are all now living in a post VIX/Monday selloff world.
- Everyone is attacking the “Frankenproducts” like XIV and SVXY.
- VXX was briefly back above its post-split levels.
- Earnings are getting lost in the macro maelstrom – TSLA, CMG, TWTR, SNAP
- Earnings Highlights:
- NVDA: ATM Straddle – $18, approx. 8%
- ATVI: ATM Straddle – $5.50, approx. 8%
- CBOE stock is getting crushed.
Odd Block: More Jan 2019 50 “catastrophe”puts in Tesla Motors (TSLA); Unloading Mar 30 calls in (UNP).
Strategy Block: Mike Tosaw discusses buying the dip
Mail Block: Options question of the week
VIX is moving like crazy today day. It’s already blown past 23 and is threatening 35. So let’s dial up our $VIX threshold for extra #ZombieApocalypse fun. You buying or selling these levels? Quite Simply: Where will $VIX close on Friday?
- Crazy Town: 30-35
- Zombie Apocalypse: >35
- Crazy: 25-30
- Mildly Crazy: <25
Listener questions and comments:
- Question from Matt Williamson – What’s up with FB $5 calls (yes, FIVE DOLLAR calls) in Jan 2019? OI climbing past 12k?
- Question from Johnny Bananas – Quick question. If you buy a put option and the strike price is $5 and the drops to $3. Is it still worth money even if it’s $3 under?
Around the Block/Earnings This Week:
- Thursday – Twitter, Nvidia, Activision/Blizzard
- Friday – CBOE