Option Block 481: Theoretical Value & Implied Volatility

Trading Block: Earnings! Before the bell today: Gamestop Corporation, Tyson Foods, Trina Solar. After the bell: Palo Alto Networks. S&P 500 profits fall $25 Billion in first three quarters of 2015. Oil slides back lower after spike on Saudi statement. CME: Shrinking locally to grow abroad. Odd Block: Puts trade in Freeport McMoran Inc (FCX), puts trade in Chesapeake Energy Corp (CHK), and calls and puts trade in Burlington Stores Inc. (BURL) Listener Mail: Questions and comments from listeners Question from Vega - Do puts and calls become more expensive ahead of events due to the risk premium? If so, how do I avoid that in the market? Question from Peter Davies - Stocks are being hit by latency sensitive strategies like HFT. Is that happening in options as well? Around the Block: Economic reports this week: Nov 23: Existing Home Sales Nov 24: GDP, Consumer Confidence Nov 25: Durable Goods, Jobless Claims, New Home Sales, Consumer Sentiment