Option Block 290: Keep that Theta Rolling

The Option Block

Option Block 290: Keep that Theta Rolling

Trading Block: Twitter IPO released, started at $26. Can't wait to sell the puts. Tesla taking it on the chin, breaking through the 140 handle. Priceline closed down.

Mail Block: Keep those questions coming

• Question from Ian @mategio - Can you please expand on these formation you guys talked about (Apple, buy the guts, sell the wings)? Can I see them in Options Xpress?
• Question from Ed Vangelos - Alex's comment on the Ford collar from last week;s episode disturbed me. He essentially said that selling the stock was better than using a collar to hedge the position, because no one wants to sell the call. So is Alex just not a fan of collars, or does he actually think it’s better to be in cash than to have a hedged equity position?
• Question from Richard D. - Mark and the crew, I am posting my questions in more atomic increments so that you can decide which are worthy to be read, or queue them up for the future. One reason we like options is that we create similar effects to long or short stock positions with less capital tied up and at risk. However, it raises the question of what safe and liquid options do we have for that cash that we keep in reserve?

Around the Block: Update on Priceline.