Skip to main content

Tasty Tech Option Play

Brian Stutland, contributor to CNBC's Options Action shown on Fridays, analyzes the trading volume pattern of the past four months. He recommends to Yum Tech Option play for the coming earning season.
YUM is a little lofty, but with the depreciation of dollar and its footprint in China, Brian is still bullish and recommends a risk reversal play-buy the Nov 50 call and sell the Nov 45 put, collecting 10 cents.

Brian on CNBC Final Call-Tasty YUM

Brian will like to sell the SNY put to play with SNY's LBO of GENZ rumor,taking advantage of his bullish view on SNY and the elevated skew level.
Brian on CNBC Options Action

Want to know what's the expected move for AAPL,AMZN,GOOG,QCOM for their earning by the option markets? Check out this video:

Brian on Tech Earning

Comments

Post a Comment

Popular posts from this blog

Is the KCJ Foreshadowing a 2008 Repeat?

The CBOE Correlation Index (KCJ) is close to the lowest level we have seen since it was first listed in 2007. The KCJ measures the implied movement of the S&P 500 components options, compared to the implied movement of the S&P 500 index options. Simply put, the higher the number, the more likely all stocks are going to move together. Conversely, a low number will be characterized by sector rotation, and flat markets; one sector moves higher, another moves lower.  (Source: Access Hollywood) Correlation, for lack of a better term, is correlated with volatility. Not surprisingly, 30-day S&P 500 historical volatility is near the low level of 6.5%. Currently at 33.5, KCJ is sitting close to rock bottom, lower than where it was in 2007, (but not lower than where Lindsay Lohan was in 2007).  So far this year, the market has been able to grind higher, characterized by leadership in FANG(Facebook Apple/Amazon, Netflix, Google) and sector rotation. A...
Post a Comment
Read more

I would like to bet ten tens on the tenth horse in the tenth race, please.

"I would like to bet ten tens on the tenth horse in the tenth race, please." Last summer, on a warm cloudy day June 11 ,  2016 in Elmont New York, a good friend of mine (Rob) confidently walked up to the cashier at Belmont and spoke those famous words.  Ten Tens on Ten in the Tenth Race.  In fact, it had been decided it months earlier. We had been discussing hosting his bachelor party in New York, go to the Belmont Stakes, and watch a Yankees vs Tigers game and Rob convinced the group to go to New York by proudly proclaimed his prophecy.  I had almost forgotten about this bold prediction when I witnessed him at the register, but when I looked up, and saw Flintshire, the 10 th horse in the race upcoming race was the favorite.  “What could possibly go wrong?”  I thought to myself (an options trader who bought a racing program attempting to handicap and gain an ‘edge’ in the previous nine races unsuccessfully).  I went to a pretzel vendor and...
Post a Comment
Read more