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Trading Block: Deutsche Bank says derivatives exposure fears overblown. Twitter shares plunge on report bidders are scarce. TWTR off 11% - back around $17.50. Dow soars as traders await earnings season; Nasdaq near record high. Odd Block: Calls trade in Energy Transfer Partners LP (ETE), calls trade in Boston Scientific Corp (BSX), and calls trade in Nabors Industries LTD (NBR). Mail Block/Options #QuestionOfTheWeek: What is your fav way to trade #Volatility? $VIX? $VXX? $XIV? $SPX? $SPY? Other? DM/Reply with alternatives? - 42% - VIX Options/Futures
- 29% - VXX
- 18% - XIV
- 11% - S&P Strad/delta-neutral
Listener question: - Question from Jack Schwartz - RE: Stock Replacement Strategy. Hello Option Block All Stars. My question refers to the Stock Replacement Strategy you advocated on a recent episode (I'm sorry but I don't remember the episode number). The benefits you listed included reducing your capital outlay since equities can only be margined at 50% while options offer substantially higher leverage. So can I assume that I can receive the same benefits from this strategy using a stock future that I can using an equity option? Or are there elements that options provide that futures do not? Thanks. Jack.
Around the Block/This Week in the Market: The Federal Reserve releases the notes from its last meeting. There are several other economic reports worth noting listed below as Alcoa kicks off another round of quarterly earnings. - Oct 12: JOLTS, FOMC Minutes
- Oct 13: Jobless Claims, Treasury Budget
- Oct 14: PPI, Retail Sales, Consumer Sentiment
Earnings Highlights This Week: - Tuesday - Alcoa
- Thursday - Delta Air Lines, Marriott Vacations Worldwide Corporation
- Friday - Citigroup, JP Morgan, Wells Fargo
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