Apr 18, 2017
Trading Block: VIX preparing for the French election.
Earnings today (after the bell):
- United Airlines - $UAL - 70.37USD, Price increase 1.29 (1.87%), ATM Straddle - $2.50, approx. 3.5%
- Netflix - $NFLX, 146.56USD Price increase 3.64 (2.55%), ATM Straddle - $12, approx. 8%
Odd Block: Call spread selling in Thor Industries Inc. (THO), call buying in Texas Instruments Inc. (TXN), and put spread buying in SPDR Euro STOXX 50 ETF (FEZ).
Mail Block/Options #QuestionOfTheWeek
With $TSLA threatening $315 how are you leaning in your #Options trades this month? Would you rather:
- Buy 1-month $300 put
- Buy 1-month $330 call
- Sell 1-month $300 put
- Staying far away from it
Listener questions and comments concerning Game Day Dog question:
- Question from Elio - Confused. How did that guy end up with only two of his short puts getting assigned to him? If he was short 3 should not all of them have been assigned?
- Question from AddJack - You answered a question from Gamedaydog on Tuesday's episode about a put spread gone bad. Is this a reason not to trade spreads if these sort of complications can pop up? Think I would rather stick with stock thank you.
- Question from Tony Rather - Fun show. Thanks to you and Rock Lobster and Uncle Mike for educating, informing and educating us each week. I have a follow up to the listener mail question from last show in which the listener and Uncle Mike said he was long stock against his put spread. They both said his stock would expire after seven days. But stock does not have an expiration date. Please clarify as I am obviously missing something.
Around the Block: What's on our trading screens for the rest of the week?
Earnings!
- Bank of America
- Charles Schwab
This week in the market:
- Apr 18: Housing Starts, Industrial Production
- Apr 19: Beige Book
- Apr 20: Jobless Claims
- Apr 21: Existing home Sales