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The Option Block

The Option Block All-Star Panel breaks down the latest developments in the options market, analyzes unusual options activity, explains cutting-edge options strategies, answers listener questions and much more. Whether you're an active options trader or just getting started in the options market, The Option Block will keep you informed and entertained.

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  2. Option Block 235: The Difference Between Risk Management & Market Timing

Option Block 235: The Difference Between Risk Management & Market Timing

Apr 16, 2013

Option Block 235: The Difference Between Risk Management & Market Timing

Trading Block: An aggressive selloff wipes out most gains on the street today. Precious metals take a bath on the news that China development is slowing down. Gold down 9%. Priceline, Apple, Google, everything down. It was a bloodbath.

Xpress Block: Alex Jacobson discusses what was up and what was down in this very prominent date on the market.

Mail Block: What do you want to know?

  • Question from Phil Bickers, Binghamton, NY: If I buy 10 regular contract with 5 Minis at OX, do they all count as a single trade, or am I going to pay the minimum plus the contract amount for each trade separately?
  • Question from Mr. T-Box: What do you guys think of the Minis so far? Commissions are high for contract size and the spreads are wide. Are they worth trading, or should we wait and see?

Strategy Block: Uncle Mike Tosaw discusses reallocation, as well as working out the difference between risk management and market timing.

Around the Block: Earnings this week include: Google, IBM, and Intel.