Option Block 797: TSLA Mysteries and Lyft Surprises Plus Adding Deltas

TRADING BLOCK VIX : 12.70 - 0.6-points lower than last show. Most active indices: VIX: 125k, SPY: 713k, SPX: 272k Most active equity options: DIS, BAC, TSLA, AAPL, AMD, BABA, GE, NVDA, NFLX, WFC Earnings Highlights: Netflix (NFLX) Walt Disney Company (DIS)       ODD BLOCK Mystery put update in Tesla Inc (TSLA)       STRATEGY BLOCK This week's topic discusses applying technical analysis to option trading.       MAIL BLOCK Question from Douglas Tilley - Hello!--Regarding long stock substitution: 1. With call options, are deltas additive?  ie. why are (2) 40-delta calls so much cheaper than (1) 80-delta call ?  This seems like buying equivalent total delta for about half the cost. 2. For more accurate stock substitution, do you ever use the technique of buying an ATM call while selling an ATM put ? (vs. buying calls for a desired total delta). What are the pros and cons (or nuances) of the 2 methods?  I do notice that the 2nd method definitely requires more buying power, due to the short put. Thanks for all the education       AROUND THE BLOCK This Week in the Market: Apr 16 - Industrial Production Apr 17 - International Trade, Beige Book Apr 18 - Jobless Claims, Retail Sales, Business Inventories Apr 19 - Housing Starts