The Option Block 1267: Are They Overpricing Zero Day Options?
Mar 11, 2024
auto_awesome
Guest host Mike Tosaw from St. Charles Wealth Management discusses the latest options market trends, unusual activity alerts, covered call assignments, and what's on the radar for the week ahead. They explore managing volatility, options pricing, odd block activities, and navigating options trading amid market volatility.
80% of covered calls stay unassigned to avoid bid-ask spread costs.
Liquidity providers rarely exercise calls early except for specific scenarios.
Deep dives
Covered Call Portfolio in Expiration Week
In the covered call portfolio, around 80% of the covered calls are still not assigned going into expiration week. To optimize management, a decision was made to let nature take its course and not close out positions. Exiting would have incurred unnecessary bid-ask spread costs for the remaining few days, with no other trades planned. If the stock gets called away, the portfolio will start over next week.
Covered Call Assignment Insights
Covered call assignments are unlikely before expiration, as liquidity providers have no incentive to exercise calls early. Exceptions include expected dividends higher than put values, prompting early exercise, or hard-to-borrow stocks necessitating taking long stock positions. Liquidity providers practically never exercise calls early unless under specific scenarios.
Market Predictions and Focus Areas
Considering upcoming CPI data, market volatility may increase, potentially prompting significant moves. Monitoring market reactions closely post- CPI release is essential. For more strategic options trading insights, visit optionpit.com, where various profitable products are offered for option enthusiasts seeking clever trading techniques.
Future Watchlist and Contact Information
If you're interested in financial advisory services integrated with option products, explore St. Charles Wealth Management, bringing a unique blend of financial planning and options expertise. Connect with Uncle Mike on Twitter @MikeTosso for valuable content and discussions. To stay informed and engaged with the world of options, explore these resources and stay tuned for more insights.
GUEST HOST: MIKE TOSAW, ST. CHARLES WEALTH MANAGEMENT CO-HOST: ANDREW GIOVINAZZI, THE OPTION PIT WHILE THE BENEVOLENT DICTATOR MARK LONGO IS AWAY, THE ROCK LOBSTER, AND UNCLE MIKE BREAK DOWN:
THE LATEST IN THE OPTIONS MARKETS INCL NVDA
MOST ACTIVE OPTIONS INCL AMZN
UNUSUAL OPTIONS ACTIVITY IN HOOD, DLO
COVERED CALL ASSIGNMENTS
WHAT’S ON OUR RADAR FOR THE REST OF THE WEEK
AND MUCH MORE
Get the Snipd podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share & Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode