Feb 12, 2016
Trading Block: TSLA: Options traders are betting on a 16% move in Tesla shares in either direction through the end of the week. Four of the five most traded Tesla options on Wednesday were put options, but it was not clear whether investors were buying or selling them. It has been a rough year for Elon Musk - off $3.3B between TSLA and SCTY. Earnings today: Before the bell: Nokia, PepsiCo, After the bell: Activision Blizzard, Groupon, Pandora Media Group.
Odd Block: Calls trade in SPDR Gold Trust (GLD), calls trade in Yamana Gold Inc., and calls trade in IAMGOLD Corp (IAG)
Mail Block: Listener questions and comments
- No love for daily options - Twitter poll has 40% of respondents saying heck no to dailies!!
- Comment from KDDiddy - Position Delta is a stupid term you must learn to get an Options license in Canada. Sure, we rule the hockey world, eh? But we are the Jamaican bobsled team of the Options industry. On behalf of all Canadians, I apologize for the term and, for the Montreal Exchange. Perhaps you hosers could suggest some reading on the subject of Delta. After Andrew pulled my jersey over my head and lobster clawed me with "Beta weighted to SPY" and "Extra curvature," I thought I better grab some books 'n start givn'er in the library."
- Question from Michael - @Options $15 put Twitter drops off the map; yet the premium still has been declining. Can you explain?
- Question from Alex - Insider Trading, What are your thoughts on Shorting 1Y 25 Delta Puts on LNKD midday today (LNKD is at 105 as I write this message)? Puts are quite juicy right now with quite acceptable break even points. I am very interested in hearing your feedback. Cheers, Big Options Trading Podcast fan, Alex.
Around the Block: Reminder: No show on Monday, February 15 due to the market holiday. Next show on Thursday, February 18 is our live 500th episode spectacular!