Option Block 868: Back in Rally Mode

  • HOST:  MARK LONGO, THE OPTIONS INSIDER
  • CO-HOST: ANDREW GIOVINAZZI, OPTION PIT
  • CO-HOST: MIKE TOSAW, ST. CHARLES WEALTH MANAGEMENT

TRADING BLOCK SEGMENT

  • MARKETS RALLY AS MIDEAST TENSIONS EASE: 
  • VIX: 12.85 – DOWN 1.65
  • VVIX: 89.4 – DOWN OVER 4 FROM LAST SHOW
  • VXX: 14.4  – DOWN .9 FROM LAST SHOW
  • MOST ACTIVE EQUITY OPTIONS OF MORNING – AAPL

ODD BLOCK

  • REVIEW – PUMP LINE IN THE SAND PUTS
  • REVIEW – ADI OUT-OF-SEQUENCE RATIO RISK REVERSAL/STRANGLE
  • REVIEW – BAKER HUGHES CALL OVERWRITE

MAIL BLOCK

  • COMMENT FROM SHELDON JORDAN: @ETRADE I DIDN’T GET THE MEMO WHERE YOU DISABLE REAL TIME QUOTES IF MY ACCOUNT DROPS UNDER $1000. AT LEAST GIVE US AN OPTION TO PAY FOR REAL TIME STREAMING QUOTES IF OUR ACCOUNTS ARE LESS THAN $1000. CAN’T TRADE OPTIONS WITHE THE DELAYED QUOTES. Y’ALL DON’T WANT ME TO WIN! @OPTIONS. I’VE BEEN A CUSTOMER FOR YEARS. I GUESS THIS IS WHAT HAPPENS WHEN YOU GO TO THE FREE FORMAT. SORRY I JUST DIDN’T MAKE A LOT OF SENSE TO ME. I FIGURE IF I MAKE MONEY IT’S GOOD FOR YOU GUYS. SO WHY WOULD YOU GIVE ME DELAYED QUOTES TO IMPEDED THE PROCESS. @OPTIONS.
  • QUESTION FROM DMITRY: HELLO GUYS, HAVE BEEN LISTENING TO YOU FOR YEARS. YOU ARE UNIQUE IN THE UPBEAT TONE AND AMOUNT OF DETAIL YOU ARE GOING INTO. UNTIL RECENTLY I WAS CONVINCED THAT WITH OPTIONS I COULD SYNTHESIZE ANY STOCK POSITION, HENCE THE QUESTION. I AM SETTING UP A VARIATION OF DOGS OF THE DOW STRATEGY WITH CALLS IN A REGISTERED ACCOUNT. ALL DOGS HAVE DIVIDENDS, WHICH I AM NOT GONNA GET AS I AM USING OPTIONS INSTEAD OF STOCK. IN A REGULAR ACCOUNT I WOULD HAVE JUST GONE WITH SELLING SOME SHORT TERM OTM CREDIT SPREADS TO SIMULATE THE DIVIDEND INCOME, BUT IN A REGISTERED ACCOUNT (IN CANADA) I CANNOT WRITE OPTIONS. THE ONLY WAY TO WRITE AN OPTION IN A REGISTERED ACCOUNT IN CANADA IS VIA A COVERED CALL, WHICH IS A WHOLE WHACK OF OTHER PROBLEMS IMHO, BUT THIS MEANS I NEED TO HAVE STOCK IN MY ACCOUNT. WHICH I EXPLICITLY DO NOT WANT TO. SO, WITHOUT MUCH UMBRAGE, CAN YOU PLEASE DISPENSE SOME LAST 2019’S WIT AND WISDOM UPON UNSUSPECTING OPTIONS AFICIONADOS UP NORTH WHERE TEMPERATURES NEVER RISE ABOVE FREEZING AND POLAR BEARS ARE COMMON PETS. ANYWAY I CAN SIMULATE THE DIVIDEND INCOME ALONG WITH MY LONG CALL POSITION? THANK YOU.
  • QUESTION FROM CAMILLA: ANY OPTIONS PREDICTIONS FOR 2020?

AROUND THE BLOCK

WHAT’S ON YOUR RADAR FOR THE REST OF THE WEEK?

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