Monday, January 19, 2009

Options Action Debuts, Looks Like Fast Money With Options Trades

Options Action is a new options-oriented show that made its debut on CNBC on Friday night at 11:30 ET. Hosted by Melissa Lee, the show is clearly an options derivative of Fast Money, from the format to the graphics to the audio.

Given the choice between targeting options-savvy viewers and a broader audience, CNBC has elected to aim for the generalist audience by emphasizing the news and issues, while including some recommended stock trades along with the options trades. If you have a casual interest in options, this show could help grow your knowledge base; if you already consider yourself to be a relatively sophisticated options trader, Options Action is not likely to have a great deal of appeal.

The format relies on current news and investment issues, with Melissa Lee keeping things moving by prompting the guests for some brief analysis and asking for recommended stock and options trades. Financials were the top story on Friday, with some debate about the plight of Wells Fargo (WFC). Steve Jobs and Apple (AAPL); crude oil; and Microsoft (MSFT) vs. Google (GOOG) were the other items on the agenda.

For a debut offering, I thought guests Joe Terranova, Stacey Gilbert, Jim Iurio, Mike Khouw and Brian Stutland did an excellent job of bringing a variety of perspectives to bear on each issue, with reasonably strong interplay among the group. My favorite part of the show centered around the discussion of a naked sale of Google June 300 puts for 43.00, as recommended by Stutland, or selling a put spread instead, as recommended by Gilbert.

In terms of options-specific material that you might not find on Fast Money, in addition to the proposed options trades, there was a quick blurb on unusual options volume at United Technologies (UTX) as well as several charts that showed five day options volume trends in some of the other featured companies. Other than that, the name of this program could easily have been Fast Money: Options Edition.

CNBC has Friday’s show archived in three parts for anyone who wants to see what they missed:

  • Part 1 -- Wells Fargo and the financials; Apple; crude oil
  • Part 2 -- Microsoft vs. Google
  • Part 3 -- Final trades: Apple, ConocoPhillips (COP), Microsoft, infrastructure plays

6 comments:

Bill Luby said...

FWIW, it looks as if Adam at Daily Options Report has a similar take in We Want Action!

Eric said...

I watched the show Saturday morning and have to say this is a breath of fresh air. FastMoney has been deteriorating over the last 9 months. Dylan Ratigan and Jeff Macke just ramble about the same information. They cover far fewer companies that they used to. Maybe this is a factor of being clueless about where the market is going. I miss Guy Adami's quick analysis of where to buy what; he can't get a word in edgewise.
I digress. The panel on Options Action is promising. I trust the perspectives more from an even-handed group, rather than hyped up traders hamming it up for TV. This show has potential, and may be nice just to be 30 minutes per week.

Anonymous said...

and we have yet another show on cnbc that will spawn another million batch of clueless and hopeful retail traders who dream of sitting on their couch and trade their way to financial freedom

people like eric who posted above is the prime example of clueless, lazy, and greedy individuals who wish they can quit their jobs and trade instead

i mean some people actually record fast money so they can use it for educational material !!

i hope cnbc goes away or at least stop all those shows oriented towards trading and technical anaysis

but it's a little too late in my opinion

in a year or two, technical anayliss will stop working whatsoever

Anonymous said...

Hi Bill,

out of curiosity, do you know a website that shows the S&P 500 index implied volatility surface?

thanks & best regards!

Bill Luby said...

I am not aware of any web site that depicts the SPX implied volatility surface.

Readers?

Eric said...

"Anonymous," thanks for your concern and ability to withhold judgement. Your advice will indeed save me from financial ruin.

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