Dan Nathan is the co-founder and editor of RiskReversal.com a website dedicated to helping equity traders/investors understand the alternative ways they can express their views in the equity markets. Our main goal is to detail the use of equity options to better define risk, enhance yield and make use of leverage in a cost effective way: Dan has spent the better part of the last 16 years as a proprietary equity & options trader at hedge funds (SAC, Exis & Cheyne Capital) and within the equity derivatives group of Merrill Lynch.
Since early 2009, Nathan has served as a broker to investment banks for large equity option block trades while also offering trade structure and fundamental trade ideas. Dan is a graduate of the University of Pennsylvania, originally from Syracuse he now lives in New York City with his wife and two daughters.
Follow Dan Nathan on Twitter @RiskReversal.
With June expiration today, I thought a little housekeeping would be in order. On May 8th, Dan Nathan suggested putting on a calendar spread, where he sold the Apple June 140 call for $2.35 to finance the purchase of the July 140 call for $4.35. Talk about turning time into money.
Growing up, I was a huge fan of The Peanuts, especially when Lucy would hold a football out for Charlie Brown, only to pull it away and cause Charlie to fall. A similar dynamic is taking place with Apple shareholders and the closely-followed Developers Conference.
Options traders continue to hit the reset button on what is fast emerging as their favorite game: playing Electronic Arts for a takeover. On little news today, the May 21 and 22.5 calls are particularly active, with the 22.5 strike calls seeing 21,000 contracts trading hands.
In minutes from now, Apple will release quarterly earnings. In what could be a preview of what's to come, AT&T reported results that topped expectations. The telecom giant added 1.2 million net new subscribers, with the company getting a heavy assist from Apple in the form of 1.6 million new iPhone accounts.
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Mike Khouw, Options Action trader, shares his view on News Corp stock on the heels of testimony from Rupert Murdoch before British Parliament.
Do you have a question for the Options Action team? Options Action selects a viewer's question and gives the answer on the show's Make The Call Web Extra video.