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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 450: Earnings Madness Continues

Option Block 450: Earnings Madness Continues

Jul 24, 2015

Trading Block: Earnings!

  • MSFT: $47.28 on earnings. Straddle: $2.40 / 5%. Opens down approx. $2. Microsoft lost 3.7 percent after posting its largest-ever quarterly loss.
  • AAPL: Closed near $131 on earnings. Straddle: $6.15 / approx. 4.7%. Opened $122 - down $8.75. Apple fell 4.2 percent after iPhone sales and revenue forecast missed estimates.
  • Nasdaq retreats amid tech selloff after Apple, Microsoft results
  • Odd Block: Calls trade in Chevron Corp. (CVX), calls trade in Direxion Daily Financial Bear 3X ETF (FAZ), and calls and puts trade in Patterson-UTI Energy, Inc (PTEN)

Mail Block: Listener questions and comments

  • Question from Sam A, Houston, TX - Is it a good idea to sell credit spreads in leveraged ETFs to benefit from the con tango?
  • Question from 999 - How do you spec on the market falling out of bed using options?

 

Around the Block: Earnings: Apple earnings not the only huge story this week. Watch GM, Boeing, Coke, Amazon, Microsoft & others. Friday: Johnson Controls, Xerox