Listen "Option Block 571: TSLA Puts and Election Volatility"
Episode Synopsis
Trading Block: Dow soars 300 points after FBI clears Clinton again. Are certain volatility funds raising election risk for the stock market? Earnings today after the bell Fogo de Chao Hertz Global Holdings Marriott International - ATM Straddle = $2.75, approx. 4% The Priceline Group - ATM Straddle = $82, approx. 5.5% Odd Block: Calls trade in SPDR KBW Bank ETF (KBE), calls and puts trade in iShares MSCI Mexico Fund (EWW) and puts trade in Marathon Oil Company (MRO) Mail Block/Options #QuestionOfTheWeek: $SPX Weds Weekly straddle says 2% move through election. How much will SPX / $SPY move through Weds 11/9? Over 3% - crazy move Between 2-3% - big move Between 1-2% - mild move Less than 1% - "meh" Listener questions: Question from RKintz - What do you guys think of out of the money puts on PBR? I noticed heavy buying across several expiries the last few weeks (possibly speculation of prolonged glut in oil supply) Question from Real RK - What do you guys think of being long a little less than one standard deviation puts OTM for Jan in everyones favorite hyperbolic name Tesla? Around the Block/Earning Highlights This Week: Tuesday - Valeant, CVS Health Wednesday - Valeant, Mylan, Shake Shack, Macys Thursday - The Walt Disney Company, Nvidia, Kohls, Nordstrom Friday - JCPenney
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