Option Block 563: Stocks That Cause Great Sadness

Trading Block: Deutsche Bank says derivatives exposure fears overblown. Twitter shares plunge on report bidders are scarce. TWTR off 11% - back around $17.50. Dow soars as traders await earnings season; Nasdaq near record high. Odd Block: Calls trade in Energy Transfer Partners LP (ETE), calls trade in Boston Scientific Corp (BSX), and calls trade in Nabors Industries LTD (NBR). Mail Block/Options #QuestionOfTheWeek: What is your fav way to trade #Volatility? $VIX? $VXX? $XIV? $SPX? $SPY? Other? DM/Reply with alternatives? 42% - VIX Options/Futures 29% - VXX 18% - XIV 11% - S&P Strad/delta-neutral Listener question: Question from Jack Schwartz - RE: Stock Replacement Strategy. Hello Option Block All Stars. My question refers to the Stock Replacement Strategy you advocated on a recent episode (I'm sorry but I don't remember the episode number). The benefits you listed included reducing your capital outlay since equities can only be margined at 50% while options offer substantially higher leverage. So can I assume that I can receive the same benefits from this strategy using a stock future that I can using an equity option? Or are there elements that options provide that futures do not? Thanks. Jack. Around the Block/This Week in the Market: The Federal Reserve releases the notes from its last meeting. There are several other economic reports worth noting listed below as Alcoa kicks off another round of quarterly earnings. Oct 12: JOLTS, FOMC Minutes Oct 13: Jobless Claims, Treasury Budget Oct 14: PPI, Retail Sales, Consumer Sentiment Earnings Highlights This Week: Tuesday - Alcoa Thursday - Delta Air Lines, Marriott Vacations Worldwide Corporation Friday - Citigroup, JP Morgan, Wells Fargo