Option Block 870: Crazy Calls and Even Crazier Dividends

Option Block 870: Crazy Calls and Even Crazier Dividends

• HOST: MARK LONGO, THE OPTIONS INSIDER
• CO-HOST: ANDREW GIOVINAZZI, OPTION PIT
• CO-HOST: MIKE TOSAW, ST. CHARLES WEALTH MANAGEMENT

TRADING BLOCK SEGMENT

• VIX: 12.25 - DOWN .25
• VVIX: 90.3 - UP 1.4 FROM LAST SHOW
• VXX: 13.4 - UP .5 FROM LAST SHOW
• FEATURED DISCUSSION OF VIX AND SPIKES

ODD BLOCK

• UNIT PUT LOVE
• MRNA CALL SALE
• MDT CALL LOVE

MAIL BLOCK

• QUESTION FROM BILL: HOPEFULLY YOU CAN GO OVER THIS NEXT WEEK BEFORE JAN 23. NLOK (AKA OLD SYMC ) IS PAYING A 12 SPECIAL DIVIDEND WITH EX DATE OF FEB 3RD, SO WHY ARE THE PUTS SO CHEAP? IF THE STOCK IS AROUND 26 BUCKS, WOULDN'T THE 25 OR 26 PUT BE SELLING FOR MORE THAN A BUCK IF WE ASSUME THE STOCK WILL DROP BY 12 BUCKS AFTER THE EX DATE? THANKS
• QUESTION FROM PAUL M. PAULINO: HELLO, WHAT IS THE OPTION STRATEGY I CAN TAKE IF THE CALL OPTION I BOUGHT DOES NOT GO AS PROJECTED, THAT IS, THE STOCK PRICE GOES DOWN INSTEAD OF GOING UP. OTHER THAN SELLING TO CLOSE THE CALL OPTION, IS THERE ANOTHER ACTION I CAN TAKE TO AVOID THE LOSS. WHEN CAN I HEAR YOUR ANSWER?

AROUND THE BLOCK

WHAT'S ON OUR RADAR FOR THE REST OF THE WEEK?