The Option Block 1483: Bargain Hunting in the Options Market

Is the tech correction finally giving options traders a bargain hunter's paradise? On this episode of The Option Block, host Mark Longo is joined by Uncle Mike Tosaw of St. Charles Wealth Management and Cboe's Henry Schwartz (The Flowmaster) to dissect a choppy, red-tinged market. Together, the panel searches for deals, analyzes massive unusual blocks, and discusses whether the AI/chip trade has finally peaked.

On The Trading Block

• Market Round-up: Mark Longo guides the team through the SPX flirts with the 7,600 magnet, a slipping Nasdaq, and VIX cash vacillating around the 16 handle.

• The Chip Sell-Off: Mike Tosaw breaks down why blockbuster earnings from Taiwan Semiconductor (TSM) triggered a massive wave of "sold to you" across AMD, Nvidia, and Micron.

• SpaceX Breakdown: Trading well below its IPO price, Henry Schwartz details the bizarre 330 call options activity and explains how double-levered ETFs use these deep out-of-the-money options for risk management.

• The New Number Three: Apple solidifies its lock on the #3 spot in options volume. Plus, a preview of earnings for Netflix and Alcoa.

The Odd Block (Unusual Options Activity)

• Papa John's (PZZA): A massive roll-up in the August 40/45 vertical call spreads. Is someone picking the bottom in pizza volatility? Henry Schwartz dives deep into the Cboe data.

• Cerebras Systems (CBRS): Mark Longo points out heavy volume in the July 31st 360 calls for this newly listed AI/semi player.

• DNOW Inc (DNOW): A customer unloads over 5,900 of the September 14 calls. Why writing these juicy calls might be a genius "line in the sand" play.

The Mail Block & Around the Block

• Extended Options Hours: Henry Schwartz gives an exclusive update on the pending rollout of pre-market single-name options trading.

• Mike Tosaw shares what he's keeping on his trading radar for the rest of the week, from bank earnings reactions to the next wave of mega-cap tech reports.