May 19, 2017
Trading Block: Still in earnings season. Yesterday: Target, Cisco. Today: Alibaba, Walmart, Gap.
- GAP (GPS) - $23.13, ATM Straddle: $1.85, approx. 8%
- BABA - $120.72, ATM Straddle $6, approx. 5%
- Dow moves higher amid Trump fears following worst drop of year
- The Volatility Buyer Known as '50 Cent' Just Had a Huge Payday
Odd Block: Calls trade in Pandora Media Inc (P), calls trade in SBA Communications Corp (SBA) and calls trade in Kimberly Clark Corp (KMB)
Strategy Block: Mike discusses his adjustment in his silver collar.
Mail Block/Options question of the week:
There are still a lot of big names reporting in earnings season. Which ones are on your options watchlist this week?
- Walmart, $WMT
- Alibaba, $BABA
- Home Depot, $HD
- Cisco, $CSCO
Listener questions:
- Question from Andrew McNichol: Big fan of your Options Bootcamp podcast. I appreciate how you start at square 1 and then walk listeners through every element of options and options trading. Is there another podcast you recommend that does the same but for stocks? Most of the ones I have found are all about what is hot now, or stock picking tips. Essentially, I am looking for a stock trading 101 podcast. If you do not know of any such podcast, what is the best stock 101 book? Thanks!
- Question from Ejh4isu: If I buy/sell a vertical on SPX (or any equity stock for that matter) and hold until expiration, and SPX settles between the strikes, what happens? Example: sell 2395/2400 and SPX settles at 2397.
Around the Block/This Week in the Market:
- May 18: Jobless Claims