The Option Block 1402: Drone Shields and Smurfette Villages

On this episode of The Option Block, Mark Longo is joined by Uncle Mike Tosaw from St. Charles Wealth Management and Henry "The Flowmaster" Schwartz from Cboe. They discuss the unexpected and muted reaction to Nvidia's earnings, the current state of the market, and the ideal trading conditions for investors. The panel also breaks down unusual options activity in a few unique single names and dives into a lively Mail Block discussion about the VIX and crypto derivatives.

Time Stamps

(04:54) - The Trading Block

• The panel discusses the surprising lack of volatility following Nvidia's earnings, despite high expectations and a large straddle pricing.

• The S&P 500 is up over 10% year-to-date, but the market feels subdued with low volatility and a steady, upward "trudge". Uncle Mike notes this is his "ideal market": boring and making new all-time highs.

• Technology and energy are the only sectors showing significant movement, with many others "taking the day off."

• The VIX is "hunching" at 14.25, with respectable options volume. SPY and SPX also have decent, though not record-breaking, paper on the tape.

• The hosts review the most active single names, including Snowflake's (SNOW) earnings pop, Retti (RETI), and Palantir (PLTR), which continues its pattern of aggressive early-session sell-offs followed by a late-session rebound.

• A quick recap of earnings moves in names like Best Buy, Burlington, Five Below, and Dell, with many straddles underpricing the actual moves.

(22:38) - The Odd Block

• Onas Holdings (ONDS)

• Braze, Inc. (BRZE)

• Westrock PLC (SW)

(35:54) - The Mail Block

• Audience Polls: Mark shares the results of recent listener polls, revealing that most listeners were not comfortable buying the S&P at its current level and that a large majority would prefer to buy rather than sell the VIX December 15 puts.

• VIX Debate: The show's central question: which level will the VIX hit first, 12 or 20? Both Uncle Mike and the Flowmaster believe the VIX will touch 12 first, driven by the ongoing bull market and low realized volatility, but they both note the high potential for a sudden, unexpected spike.

• Crypto Derivatives: A discussion on the future of crypto contracts, with a poll showing an overwhelming preference for cash-settled contracts over physically settled ones, due to simplicity and a desire to avoid dealing with the underlying assets.

(44:54) - Around the Block 

• What to Watch: The hosts share what they'll be watching until the next episode, including the S&P 500's attempt to break 6,500, the post-earnings action in Nvidia and Dell, and the overall macroeconomic picture as traders return from summer vacations.