Option Block 690: Debating XIV and SVXY

Trading Block: A review of the week to date.

VIX back up over 30 S&P is back in selloff mode despite decent earnings. We are all now living in a post VIX/Monday selloff world. Everyone is attacking the "Frankenproducts" like XIV and SVXY. VXX was briefly back above its post-split levels. Earnings are getting lost in the macro maelstrom - TSLA, CMG, TWTR, SNAP, ETC Earnings Highlights: NVDA: ATM Straddle - $18, approx. 8% ATVI: ATM Straddle - $5.50, approx. 8% CBOE stock is getting crushed.

Odd Block: More Jan 2019 50 "catastrophe"puts in Tesla Motors (TSLA); Unloading Mar 30 calls in (UNP).

Strategy Block: Mike Tosaw discusses buying the dip

Mail Block: Options question of the week

VIX is moving like crazy today day. It's already blown past 23 and is threatening 35. So let's dial up our $VIX threshold for extra #ZombieApocalypse fun. You buying or selling these levels? Quite Simply: Where will $VIX close on Friday?

Crazy Town: 30-35 Zombie Apocalypse: >35 Crazy: 25-30 Mildly Crazy: <25

Listener questions and comments:

Question from Matt Williamson - What's up with FB $5 calls (yes, FIVE DOLLAR calls) in Jan 2019? OI climbing past 12k… Question from Johnny Bananas - Quick question. If you buy a put option and the strike price is $5 and the drops to $3. Is it still worth money even if it's $3 under?

Around the Block/Earnings This Week:

Thursday - Twitter, Nvidia, Activision/Blizzard Friday - CBOE