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Podcast: The Option Block
Episode:

Option Block 337: Looking Back on the Flash Crash

Category: Business
Duration: 00:55:00
Publish Date: 2014-05-09 11:30:08
Description:

Option Block 337: Looking Back on the Flash Crash

Trading Block:  Options traders were preparing for 10% swings of Tesla before week's end based on a straddle. On Wednesday, volume in Twitter options increased fivefold, all but erasing value in a series of bullish contracts. ICE reports record Q1 profit. After its June IPO, Euronext plans to be listed on three of its exchanges. May 6 marks the fourth anniversary and it's a reminder that not much has changed. 

Odd Block: Put sellers in BBEP, call spreads trade in Cameco Corp., calls trade in DLX, closing put seller in FTR.

Strategy Block: Calendars vs. verticals, part deux. 

  • Comment from Erik Ruehr re: Mike Tosaw’s survey. I say vertical spreads are better now. Thanks for the show.
  • Comment from Tom S.: In response to Uncle Mike’s survey: In general, I’d say vertical spreads trade much better now.
  • Comment from LJO: Put me down in the plus column for verticals.

Around the Block: Some earnings left: CSCO, TTWO, CBOE, GRPN. Macro, macro, macro, 10-year, 30-year, the Fed. Will social media/tech stocks hold up?

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