Trade Ideas Archives - Cboe Blogs

  • Trader Talk | Education | Strategy | Trade Ideas | Jan 23, 2015, 2:38 PM

    AAPL Earnings Play

    AAPL Earnings Play

    I am looking at an Iron Condor as a potential trade to play AAPL earnings next week. Trade: Sell 1 January 120 Call and Buy 1 January 123 Call. Sell 1 January 104 Put and Buy 1 January 101 Put. This is the January 30 Expiration. The credit I am looking for is around $60 per every one contract Iron Condor I do (excludes commission). Analysis: The credit for this Iron Condor is $60 and the Risk or Margin is $240 per every one contract I do. The yield is about 25% excluding commissions if I collect[...]

  • Trader Talk | Education | Strategy | Trade Ideas | Jan 20, 2015, 1:45 PM

    NFLX Earnings Trade Idea

    NFLX Earnings Trade Idea

    Netflix, Inc. [Nasdaq: NFLX, $342, up $4.66] is scheduled to release its fourth quarter earnings report today following the close of the market session. Consensus analyst estimates are forecasting earnings per share of $0.45 on overall revenues of $1.48 billion. The same quarter one year prior (Q4 2013) saw EPS of $0.66 on $1.18 billion in revenue. NFLX shares are off by a modest 0.8% in 2015, but the stock has been trading in a bearish pattern since last September with sideways price action since[...]

  • Market News | Strategy | Trade Ideas | Jan 14, 2015, 9:15 PM

    Next Week in Weeklys - 1/20 - 1/23

    Next Week in Weeklys - 1/20 - 1/23

    Next week is a holiday shortened week as noted in the blog that appears just before this one.  Despite it being a short week, there's plenty of companies with short dated options reporting earnings next week.  Things get started on Tuesday morning with numbers from Baker Hughes (BHI) and Halliburton (HAL) which should be interesting since the oil market has been in the news lately.  The week finishes up with McDonalds (MCD) and General Electric (GE) reporting before the open Friday[...]

  • Market News | Trader Talk | Futures | Trade Ideas | Jan 10, 2015, 11:32 AM

    Last Week in VIX - 1/5 - 1/9

    Last Week in VIX - 1/5 - 1/9

    This past week was one of those where the week over week change in the VIX term structure does no justice whatsoever to the price action. The S&P 500 dropped 0.65% from Friday to Friday. However, at the worst point the S&P 500 was down 3.2% and at the highest point the S&P 500 was up 0.30% from the previous week’s closing price. In response to the rollercoaster of a week I’ve added a third curve to the graphic below. The purple and inverted line shows the term structure for[...]

  • Market News | Blogging Options | Trade Ideas | Dec 24, 2014, 7:45 AM

    Blogging Options: CBOE Morning Update 12.24.14

    Blogging Options: CBOE Morning Update 12.24.14

    Holiday shortened trading schedule today in US, Europe on early schedule as well.  Weekly Claims with a slight drop. Crude lower.  US Futures up modestly. Volatility as an asset class: Large Cap oil Services Company’s volatility is elevated as WTI Crude oil trades below $56 Baker Hughes (BHI) overall option implied volatility of 36 compares to its 26-week average of 28. Halliburton (HAL) overall option implied volatility of 38 compares to its 26-week average of 29. National Oilwell[...]

  • VIX | Blogging Options | Trader Talk | Trade Ideas | Dec 18, 2014, 8:05 AM

    Blogging Options: CBOE Morning Update 12.18.14

    Blogging Options: CBOE Morning Update 12.18.14

    Overseas markets rallying overnight (European and Asian shares up 1% to 2%), helping US stock futures add to yesterdays gains.   Options activity brisk yesterday, as CBOE trades 6.7 million of 20.8mm contracts.  SPX with 1.49mm and VIX with 975K led the way. Oil and Ruble up slightly this morning. Volatility as an asset class: Oracle (ORCL) is up $2.11 to $43.27 in the premarket on Q1 revenue increasing +3.5% compared to year ago on strong cloud growth. December call option implied volatility[...]

  • Market News | VIX | Trader Talk | Futures | Trade Ideas | Dec 13, 2014, 9:25 AM

    The Week in Volatility Indexes and ETPs - 12/8 - 12/12

    The Week in Volatility Indexes and ETPs - 12/8 - 12/12

    The VXST – VIX – VXV – VXMT curve shift was the most dramatic change I have seen since writing these blogs. Of course VXST is just a little over a year old so there’s not too much history for comparison. I am more intrigued by the right side of the curve with VXV and VXMT in the 20’s. As a reminder VXV is a 3 month version of VIX and VXMT measures 6 month implied volatility. Those two indexes moving above 20 and in line with VIX indicate some real concern for the S&P[...]

  • VIX | Education | Strategy | Trade Ideas | Dec 8, 2014, 4:00 PM

    Skipping Around: Of Jobs, Oil and Markets

    Skipping Around:  Of Jobs, Oil and Markets

    Today, we'll take a look at how jobs, oil and market volatility are playing a role in the market environment. A Solid Jobs Report:  But You Can't Please Everyone Last week's job number took many by surprise.  What a great report it was, 321K jobs created based on the latest survey, previous reports revised upward.  Yet, all I heard were complaints - the jobs created were temporary, not high-paying career type positions and that this will turn tail in a couple of months.  I disagree[...]

  • Market News | Trader Talk | Trade Ideas | Dec 2, 2014, 9:25 PM

    Next Week in Weeklys - 12/8 - 12/12

    Next Week in Weeklys - 12/8 - 12/12

    We are still in a lull period between the brunt of earnings seasons.  Despite the short list below, there are some pretty exciting names reporting earnings next week.  Radio Shack, which was halted on Tuesday as I gathered this data will be particularly interesting as the rumors continue to swirl around the company's survivability.

  • Fill 'Er Up... No, Just Check the Oil

    Fill 'Er Up... No, Just Check the Oil

    Last week I did something I haven’t done for 5 years; I filled my gas tank for under $3 gallon. This got me to thinking about ways to lock in current prices without pumping and storing hundreds of gallons of explosive liquids in my garage. We know the cliché, “there’s an app for that!” the same can be said for ETFs, “there’s an ETF for that!”. Doing a quick search for Exchange Traded Fund and “unleaded fuel” I found the UGA the United States[...]