AMZN + WFM = Market Domination?

Are other retailers "screwed"

Last week we learned that Amazon is buying Whole Foods in a deal that's valued at $13.7 billion, and we've heard from analysts about how this will affect retail in general; low-priced grocers like Walmart; Amazon's current grocery delivery services; Whole Foods itself; and even cashiers.

But what about smaller natural-grocery rivals like Sprouts, Earth Fare and Fresh Thyme? In an article here on Forbes.com in 2015, it was reported that Whole Foods was "losing market share to aggressive rivals like specialty retailers Sprouts Farmers Market and Fresh Market." Will this move turn the organics-laden tables?

"I think competitors like Sprouts, The Fresh Market, Fresh Thyme, Earth Fare and Natural Grocers are totally screwed," says David J Livingston, owner of DJL Research, which provides market research and competitive intelligence for the grocery industry. "They are not that good to begin with. Trader Joe's is the undisputed sales-per-square-foot performer. Then comes Whole Foods. All the rest are distant also-rans."

Read more on Forbes.com.

Option Block 628: Fed, Trump Tantrums and Closing Your Longs

Posted June 16th, 2017

Trading Block: The Federal Reserve announced a quarter-point rate hike Wednesday as expected. The market keeps shrugging off news about Trump. The news deluge, with its quasi facts, is making people numb.

Odd Block: Puts trade in Tesla Motors (TSLA) puts roll in Yamana Gold Inc. (AUY) and puts trade in Accelerate Diagnostics, Inc. (AXDX).

Strategy Block: Uncle Mike Tosaw discusses closing out long SPY call spreads

Mail Block: VIX Limbo

Last Month 40+% of you said $VIX wouldn't break 9 in 2017. But recent events have us asking again: How low will $VIX get in 2017?

• Still Won't Break 9
• Won't Break 8.5
• Won't Break 8.0
• Lookout! 7 Handle in '17

Listener Questions and Comments:

• Question from Sal06 - Hello, Just wondering if you could help me, I have a $100 call strike for Shopify at an average of 5.88 I bought a week ago. Do you think I have a chance for it to recover?
• Question from NanFran - Tomorrow is a triple witching hour. What does that mean for options?

Around the Block/This Week in the Market:

• Jun 16: Housing Starts, Consumer Sentiment

 

Options Playbook Radio 162: Listener Question Palooza

Posted June 15th, 2017

It's all listener questions in this special edition of Options Playbook Radio

• Question from Ejh4isu - If I buy/sell a vertical on SPX (or any equity stock for that matter) and hold until expiration, and SPX settles between the strikes, what happens? Example: sell 2395/2400 and SPX settles at 2397.
• Question from Kraken1975 - Which of the Greeks do you utilize the most and why?
• Question from ButcherBoyz - What options trading strategy would you say is best suited to people with absolutely zero knowledge of options? Thanks.

Do you have a question that you want featured on an upcoming episode of Options Playbook Radio? Send Brian an email at theoptionsguy@invest.ally.com.

 

Advisors Option 56: How to Sell Options When VIX is Low

Posted June 14th, 2017

In this episode, Mark is joined by co-hosts:

• Chris Hausman, Portfolio & Chief Technical Strategist, Swan Global Investments
• Aash Vyas, Director of Portfolio Strategy and Overlays, Swan Global Investments
• Mike Tosaw, RCM Wealth Advisors
• Ilya Feygin, Senior Strategist, Wallachbeth

Tricks of the Trade: Selling options in a low volatility environment.

What are some ways that advisors/asset managers can maintain the income component of their portfolios, without taking unnecessary risks?

• Selling ITM options?
• Selling longer-term options?
• Changing underlying?

Options 101: Information advisors need to know

• Rho: Interest Rates Impact on Option Pricing - by Chris Hausman

The Buzz: What is happening in the industry?

• Why Volatility Is an Investor's Worst Enemy: Searching for Alpha, May 2017
• DOL Will Not Delay June 9 Fiduciary Rule Compliance Date: Acosta.

Office Hours: Question from Ian Wagner: Why trade volatility vs direction or income? Preference? More favorable risk/reward profile?

Option Block 627: VIX De-Synchronization

Posted June 13th, 2017

Trading Block: What is up with VIX today? NASDAQ sells off, S&P not so much, VIX pops. How low should VIX go? Are you in the Goldman camp or the Barclay's camp? Gaming segment hot today. Big news out of the E3 show.

• MSFT: $69.71 - .8%. Company too big to move much on gaming news.
• Sony (SNE): Unchanged. Slight adv pop - about 2.5X
• EA: $108.90 - off over 1%
• TTWO: $73.83 - Off 2%
• ATVI: $56.76, off 2.2%

Odd Block: Puts trade in Technology Select Sector SPDR Fund (XLK), calls trade in United Parcel Service, Inc. (UPS) and calls trade in SBA Communications Corp (SBA).

Mail Block: VIX Limbo!

VIXLIMBO: Last Month 40+% of you said $VIX wouldn't break 9 in 2017. But recent events have us asking again: How low will $VIX get in 2017?

• Still Won't Break 9
• Won't Break 8.5
• Won't Break 8.0
• Lookout! 7 Handle in '17

Listener questions: What's on your mind?

• Question from Sal06 - Hello, Just wondering if you could help me, I have a $100 call strike for Shopify at an average of 5.88 I bought a week ago. Do you think I have a chance for it to recover?
• Comment from Lillith - I agree that the options market would benefit from more American options since the assignment process is confusing and risky.

Around the Block/This Week in the Market:

• Jun 13: PPI
• Jun 14: CPI, FOMC Meeting
• Jun 15: Jobless Claims, Import and Export Prices
• Jun 16: Housing Starts, Consumer Sentiment

Volatility Views 258: Testing Historic New Lows in VIX

Posted June 12th, 2017

Volatility Review: A look back at the week from a volatility perspective.

• VIX hits a new low of 9.37
• Comey's testimony fails to move the needle
• Maybe Britain will provide the spark VIX needs.
• VIX Cash - 9.47, VVIX - 83.28, almost unchanged from last week.
• CBOE Skew Index - 127.09, slightly higher than last week.
• VIX Futures - still steep. Front month - 1.5, Second month - 2.3

Russell's Weekly Rundown:

• VIX Options, Mon - 459k, Tues - 473k, Weds - 453k, Thurs - 473k, ADV - 722k. VIX Call/Put: 3.3/1. Total 9.20m (7.06m Calls, 2.14m Puts)
• VXX - ADV 356k, OI - 1.2/1 calls over puts.
• OIV - 32.31
• OVX - 33.84

Volatility Voice mail: Questions, comments, polls and more!

With $VIX giving up the ghost - which products are you hoping will provide new sources of #Volatility for your #options trading?

• Crude Oil (WTI, etc.)
• Metals ($GLD, $SLV, etc.)
• FX (GBP/USD, etc.)
• Indv. Equities-$TSLA, etc.

Listener Questions and comments

• Comment from John King - #Fired #FBI director completes televised #Testimony negative for sitting #president & #VIX DOWN .41 to 9.98. Just plain crazy. @Options #USA
• Comment from AGTrader - God help them when they have to all cover at once.

Crystal Ball: Your prognostication headquarters

This week:

• Mark L. - 9.75
• Mark S. - 10.5
• Russell - 11.23