The Option Block

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Option Block 246: Jump on the Boat with the 10-Year Note

Trading Block: CBOE/CME launches a new 10-year treasury VIX. It is the first volatility index based on U.S. government debt to be calculated and disseminated by CBOE. CBOE stock hits $40 on its 40th anniversary. CRM & MRVL earnings after the bell.  TSLA - hard to short stock, bears turning to puts. MSFT - is there no love for the new Xbox One?  GME – could the new could Xbox wipe out the lucrative grey market for used games? GME is the leading liquidity provider. Vol is creeping back into Ford - stock had a nearly $.60 range today, up sharply over the past few aweeks.

Odd Block: Calls trade in Halozyme Therapeutics Inc. (HALO), Ratio put spreads trade in Alerian MLP (AMLP), and combos trade in Warner Chilcott ltd (WCRX)

Xpress Block:  A lot of names, including the 10-year, lighting up the phones at OX. The June condor in the SPX, an example off of the Idea Hub.

Strategy Block: Mike Tosaw discusses "nimbility" - the ability to be nimble. It's very important to be nimble when trading, and not get locked in a specific strategy.

Around the Block: Holiday weekend. Don't forget to watch out for the weekend! Market should be very thin tomorrow.

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Option Block 245: Golden Tickets & Oompa Loompas

Trading Block: It was an unchanged day on the street with stocks hovering around record highs. Does this rally have legs, or are we poised for a collapse? There was a weird dip in SPX on Friday night due to APC. Jumbo SPX is a flop so far. Only 18 contracts have traded through the middle of last week.  Everyone is still refusing to list it.

Odd Block:Calls trade in Navios Maritime Holdings Inc. (NM), calls trade in Foster Wheeler Ltd (FWLT), and calls trade in Big Lots Inc. (BIG).

Xpress Block: Alex talks some more about the Trading Patterns Tool from OX, and what its most active trades have been recently.

Listener Mail: What do you want to know?

• Question from Douggie_L: Why all the fuss with Jumbo SPX? Why won't others trade it?
• Question from Montevecchio: I'm starting to learn about time spreads. Can you guys explain roll risk and how it can impact me?

Around the Block: A holiday this upcoming weekend. Watch out for the theta gremlins creeping into your portfolio.

Option Block 244: Car Talk

Trading Block: It was down day on the markets. A lot of political news came out of Syria late in the day. Could Tesla be Apple 2.0?

Xpress Block: Alex talks about the OX feature "Trading Patterns," which lets you look at what underlyings people traded in the OX environment. Available to most OX customers.

Strategy Block: Mike Tosaw discusses what we've been seeing in the market. Rallies in the market, staying long-term bullish but short-term cautious and collar strategies.

Around the Block: Earnings coming out soon: DELL, JCP and HP. A bit more stability in interest rates. Watching Apple, of course.

Option Block 243: The Viceroy Trade

Trading Block: Another unchanged day. Netflix up due in part to the return of Arrested Development. Take Two earnings after the bell. Zynga gets a big pop in the day. First live day of jumbo SPX on Friday.  ISE lost its Supreme Court lawsuit and refuses to list contract. Ironic?

Odd Block: Calls trade in Zynga, Inc. (ZNGA), puts trade in VIX short-term Futures ETN (VXX), and puts trade in Solarcity Corp (SCTY).

Xpress Block: Alex Jacobson discusses his thoughts on the big OX event this weekend.

Strategy Block: Mike Tosaw dispenses yet another legendary rant of the topic of annuities. He also talks about the ratio spread.

Around the Block: Cisco earnings on 5/15, Cosi on 5/16 post 4/1 reverse stock split.

Option Block 242: Dollar vs. Yen - The Eternal Battle

INTERVIEW BLOCK: Today's guest is: Kevin Davitt, futures broker at RCM. He comes to the Option Block today to discuss ags, commodities and metals - as well as the record set by the dollar and the yen.

TRADING BLOCK: Only a bit of movement on the market today - S&P sitting at the 16 handle. Priceline earnings, Shatner might be disappointed with the results. Tesla exploded to hit $70 in the after hours. 

ODD BLOCK: Combos Trade in Vera Bradley Inc. (VRA)

Calls Trade in Digital Realty Trust Inc. (DLR)

XPRESS BLOCK: All the big option names: Tesla, Green Mountain, Apple, Lululemon and Priceline. Yen and Aussie Dollar light up the currencies. 

AROUND THE BLOCK: Don't forget about the Options Insider Unusual Activity forum coming up next week, Wednesday May 15!

Option Block 241: "Legalized Front-Running"

Trading Block: The market trading much more modestly than recent rallies. ZNGA leaning on Farmville 2 - slashing 5% of workforce. Apple rallies up 11 handles, after they announced buybacks. VIX Cash well south of 200 day moving avg. of 15.26. VXX ranks as #3 exchange traded product by volume - avg. 53 million shares/day. Buffet's right hand man, Charlie Munger, calls high-frequency trading "legalized front-running" and "basically evil". EA earnings after the close.

Odd Block: Calls trade in Nationstar Mortgage Holdings. Inc (NSM), calls trade in Network Appliance Inc. (NTAP), and calls trade in Gran Tierra Energy Inc (GTE)

Xpress Block: Tesla lighting up the tape at OX. A lot of stocks trading through their strikes. Lululemon traded back below 75. 

Mail Block: Question from BillyMo (@b1llmoo): Do you guys think the Jumbo SPY will be listed on all exchanges and will it be penny wide.

Around the Block: The Jumbo SPY launches! EA update. Earnings: Activision - 5/8 after, Disney - 5/7 (The force is strong with them), Groupon - 5/8 after, Nvidia - 5/9, Tesla - 5/8.

Option Block 240: Questions Linger After CBOE Shutdown

TRADING BLOCK: The yo-yo markets continue - down 1%, up 1%. Facebook misses but still feels the love. LinkedIn down after hours. Earnings...Earnings...Earnings!

ODD BLOCK: Calls trade in Neutral Tandem Inc (IQNT) and calls trade in Monster Worldwide Inc. (MWW)

XPRESS BLOCK: OX unveils a new quick trade function for iPad users, as well as other new front ends. 

LISTENER MAIL: Question from TBD6: The CBOE outage made me wonder - what do I do if I can't access those products again?  Question from Nick Milligan, Toronto, ON: Do you think the CBOE crash will spell the end of proprietary products like SPX and VIX?

AROUND THE BLOCK: Non-farm payrolls. Earnings: CBOE 5/3 - before the open, Tesla 5/8.

Option Block 239: Rally Ho!

Interview Block: Today's guest is Erik Long from Quant Trade, a CTA who primarily day trades futures. His method of looking at the markets can be associated with any time frame and he has some interesting insight for our listeners.

Trading Block: Rally Ho! Again. There was some serious tech love on the street with Google, Apple, Intel, and IBM up 2% or more today. Overall earnings season is still not living up to the hype.

Odd Block: Calls roll in Health Net Inc. (HNT), puts trade in Canadian Solar Inc. (CSIQ), calls trade in Energy Transfer Equity LP (ETE), and there was a steady put seller in Northern Oil and Gas Inc. (NOG).

Xpress Block: Herbal Life, Facebook, Apple, Google and IBM all kept traders at OX locked to their desks.

Around the Block: Substantial juice levels going into earnings on the 1st.

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Option Block 238: Markets Have a Headache

Trading Block: Weekly expiration this Friday. Exxon sells off after a disappointing earnings announcement. CBOE was down for most of the day, causing a lot of headaches. Bundesbank came out and rejected the "outright monetary transaction" taking the wind out of the sails today.

Odd Block: Put spreads trade in Open Text Corp. (OTEX),calls trade in Supernus Pharmaceuticals Inc. (SUPN), giant combination trades in Talisman Energy Inc. (TLM), and crushing volume in Incredimail Ltd. (PERI).

Xpress Block: News just crossed the tape that George Soros just purchased an 8% stake in JC Penney.

Strategy Block: Uncle Mike, Andrew, and Alex each discuss their favorite war stories about some of the dumbest trades they've seen.

Around the Block: Upcoming earnings include Amazon, AIG, Pfizer, JC Penney. Could Europe end up back on the warning screens?

Option Block 237: Buy Juice, Be Happy

Trading Block: VIX cash turns to the dark side. CAT earnings were not overwhelming. Netflix earnings have yet to come out, but there’s a lot of love for the "widow maker." Microsoft is also feeling a lot of love.

Odd Block: Calls trade in General Motors Corp. (GM), calls roll on a Medivation Inc. (MDVN) spread, and big calls trade in Micron Technology Inc. (MU).

Xpress Block: Alex discusses how we're starting to see volume in big cap names again, like Proctor & Gamble, GE, Oracle, Intel, and Microsoft. Apple and Amazon earnings this week, please understand the risk if you're a premium seller.

Strategy Block: Uncle Mike talks about puts in GLD, including when and when you should not to roll a put. Long-term bullish, short-term cautious!

Around the Block: More earnings yet to come this week, including Facebook, Zynga, Apple, Ford, and Amazon.

Option Block 236: Riding the Earnings Rollercoaster

Trading Block: The market was down big time. Again. Earnings-palooza after the close with CMG, GOOG, MSFT, and IBM reporting.

Odd Block: Puts trade in Bally Technologies Inc. (BYI), put spreads trade in Banco Itau Holdings SA (ITUB), OTM puts trade in Auxilium Pharmaceuticals Inc. (AUXL), and Financial Select Sector (XLF) puts trading early.

Xpress Block: Alex Jacobson discusses pending legislation in Washington. New proposed tax laws: capping IRAs, and the elimination of 1256, which creates mark-to-market accounting for every contract.

Around the Block: More earnings fun.

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.

Option Block 234: Debunking the Expiration Graph Myth

Trading Block: Ford was off to the races again, in a very mixed market.  Vol was mixed as well. Money is coming out of Asia into the U.S. market. Microsoft was down in a big way.

Odd Block: Calls trade in Yahoo! Inc. (YHOO), big puts trade in Cell Therapeutics (CTIC), calls trade in ImmunoCellular Therapeutics Ltd (IMUC), and calls trade in iShares MSCI Japan Index (EWJ).

Xpress Block: Activity in Chipotle, Priceline, and Facebook. Apple was all over the place today.

Strategy Block: Uncle Mike Tosaw discusses his pet peeve, the expiration graph, and how it has dominated options education and retail trading.

Around the Block: Earnings-palooza on the horizon: Microsoft, Chipotle, Citi Group, Google, Bank of America, Intel, Nokia, IBM, Apple, JP Morgan.

Option Block 233: Trickle Down SPX

Trading Block: The market is gaining back some ground after a skittish week. Here we go again with Alcoa earnings after the bell. Uncle Mike updates us on Ford, GLD, SLV and Apple. Is there any love for Facebook at these levels? The market is not loving FB Home apparently. Caribou Coffee pulling out of Chicago. BOX files with the SEC for a jumbo SPDR - 1000 multiplier.

Odd Block: Calls trade in Wisdom Tree India Earnings Fund (EPI), calls trade in Lufkin Industries Inc. (LUFK), puts and stock trade in Microsoft Corp. (MSFT), and calls trade in Goodyear Tire and Rubber Co. (GT).

Xpress Block: A mini volume and customer interest update from Alex.

Around the Block: A whole lot of nothing coming out of Alcoa, which kicks off earnings week.

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Option Block 232:  Crushing Inflation

Trading Block: Facebook goes after Google. Bank of Japan moving a lot today. S&P opened lower than gold for the first time since the flash crash. How high can the interest rate go?

Odd Block: Big calls trade in the S&P 500 VIX Short Term Futures ETN (VXX), more puts trade in Alerian MLP ETF (AMLP), and out month put buy in Bank of America Corp. (BAC)

Xpress Block: Rates, Yen and other Asian markets lit up the OX desk today. Citadel is petitioning the supreme court over the CBOE/ICE/SXP case.

Strategy Block: Tosaw clarifies the difference between market timing and risk management.

Around the Block:  Non-Farm payrolls come out in the morning. Rates will be a main focus.

Option Block 231: April Fool Joke from Tesla?

Interview Block: RCM’s Matt Bradbard talks about interest rates. When might they reverse course and head upwards? What is the Eurodollar?

Trading Block: We actually saw a rise in VIX today. Tesla was today's big news: they made a profit for the first time this quarter! Apple bouncing off the lows.

Odd Block: Calls trade in North American Palladium Ltd. (PAL), large put block trades in Health Care Select Sector SPDR (XLV), and calls trade in Cisco Systems Inc. (CSCO).

Xpress Block: Tesla and Apple were both lighting up the desk at OX today. The first returns on the weeklies on futures options show that they are a resounding success. How are the Minis doing?

Around the Block: Looking forward to a somewhat quiet week ahead.

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Option Block 230: The Psychology of Options Trading

Interview Block: Today's guest is Benjamin Lee, founder of Think|Trade|Think. He talks about the psychology of trading, and gives us a preview of his upcoming RCM webinar.

Trading Block: There was a bit of a selloff, as concerns about Cyprus crept back into the market. Which way are we heading from here?

Odd Block: Puts trade in DaVita Healthcare Partners Inc. (DVA), more calls make news in Thomson Reuters Corp. USA (TRI), and Globe Specialty Metal (GSM) trading puts.

Xpress Block: OX customers give feedback on the Minis.

Around the Block: Keeping an eye on the TLT and iron condors. Blackberry earnings are on 3/28 before the bell.

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Option Block 229: The Death Hedge

Trading Block: Most indexes closed down by the end of the day. Juice comes back into the VIX. Cypress: is it the new Greece? GLD, SLV and other metals up on the day. Lululemon recalls "see-through" yoga pants.

Odd Block: Calls spread trades in the VIX, put buying in Citigroup Inc. (C), and big trades in Constellation Brands Inc. (STZ).

Xpress Block: Two names stood out on the desk: General Motors and Dell.

Strategy Block: Mike Tosaw gets his very own rant about busting the myths of annuities. Go, Mike, go!

Around the Block: Keeping an eye on Cypress. We're close to all-time highs in the market.

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Option Block 228: Mini Mania

Interview Block: Today's Guest: Kevin Davitt, Global Execution & Futures Broker at RCM. RCM will be hosting a webinar this Thursday night.

Trading Block: There was a bit of a selloff in the market due to news coming out of Cypress, which is rekindling fears of a Europe crisis. Today is the day: Mini contracts begin trading today. What is the OX procedure and policy for Minis?

Odd Block: Ratio strangle trades in Neonode, Inc. (NEON), put buyers active in Globe Specialty Metals, Inc. (GSM), puts trade in Reality Income Corp. (O), and calls trade in Swift Transportation Co. (SWFT).

Xpress Block: Cypress, Minis and Gold were all popular topics today at OX. When will we see Minis in the Idea Hub?

Around the Block: Watching a silent rally in Apple. VIX cash creeping up. Cypress still making headlines. Minis and their affect.

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Option Block 227: When Options Make an $800,000,000 Profit

Trading Block: The S&P's are right up against their all-time highs. Citadel exited their E-Trade position, which is down 75% from when they bought it, and still turned an $800M profit with hedging and options. Minis begin trading Monday, March 18.

Odd Block: It was a hard luck day for E-Trade (ETRA), running of the bulls in KBW Regional Bank ETF (KRE), and an incredible purchase in Heckmann Corp (HEK).

Xpress Block: What's new in the Ides Hub? Blackberry is back in the news.

Strategy Block: Making adjustments on a simulated index concept strategy.

Around the Block: How high will the S&P 500 reach? Gold & Silver. Mini options.