Trading Block: Our special guest today is Vlad Karpel, Founder of Tradespoon. Dow jumps triple digits; oil recovery boosts energy 2%. How should investors play falling Apple stock? Earnings today after the bell: Rackspace Hosting, Inc., Shake Shack, Inc., Take Two Interactive - TTWO $31.38, Straddle - $3.10 - Approx. 10%. BATS gets regulatory nod for second U.S. options exchange.   Odd Block: Calls and puts trade in Ensco PLC (ESV), calls trade in Oasis Petroleum Inc. (OAS), and calls roll in SYSCO Corp. (SYY) Strategy Block: Tosaw analyzes SPX and SPY Around the Block: Earnings! Tuesday - Fogo de Chao, Inc., Red Robin Gourmet Burgers, Tribune Publishing Company Wednesday - Cisco, Macy’s, Aramark, Roundy’s, Inc., BABA and CSCO Thursday - Applied Materials, Inc., Kohl’s, King Digital Entertainment, El Pollo Loco Holdings, Inc., Nordstrom Inc., Tribune Media Company, Friday - J.C. Penney

Trading Block: Stocks getting crushed post-earnings.   Disney - stock closed @ $121 prior to earnings on 8/4. ATM straddle $4.10 or 3.4%. Stock off over 10% in the past two days - off 2% today. Tesla - stock $270 prior to earnings. ATM straddle $22.25 or 8.2%. Down 28 handles, over 10% today. A massive sell-off is underway in media stocks, and Viacom is by far the biggest loser. Odd Block: Calls trade in Allscripts Healthcare Solutions (MDRX), puts trade in Noble Corp. (NE), and calls trade in SPDR S7P Oil and Gas (XOP) Mail Block: Listener questions and comments Question from RJR357 - On the CBOE blog you see comments such as Bulls are piling into XZY or calls outnumber puts 6 to 1. Is it prudent to follow the herd? Is this info of any value? I'm guessing this is the big money traders. Great show. Question from Charles Vela - My friend recommended Dough as an options starter platform. It seems a little silly to me. How do you like it?   Around the Block: Earnings: FitBit (FIT)

Trading Block: Thanks to everyone that came out last week to our live show! We had a wonderful seeing all of our listeners in person.   Earnings today after the bell: Brookdale Senior Living, Avis Budget Group, Allstate Corp, General Growth Properties. Media & retail highlight earnings this week: CVS, Office Depot Inc., Walt Disney Co. Highlights of this week: Wednesday: Tesla, Time Warner, and Twenty-First Century Fox; Thursday: Allergan        Odd Block: Calls trade in Williams Companies Inc. (WMB), calls trade in NorthStar Asset Management (NSAM), and calls and puts trade in Merck & Co., Inc. (MRK) Strategy Block: Tosaw discusses the importance of patience, especially when trading. Mail Block: Listener questions and comments Question from Beacher454 - Last week Mark S. said the free options training is ok, but you need paid training to really make money. Can you give an example how paid training is better?   Around the Block: Upcoming earnings: Disney, Tesla, Office Depot. Plus, macroeconomics. Options on VIX weekly futures. Will they? Won’t they? 

Trading Block: Still in the thick of earnings season. LNKD straddle going out at over $25. Talking FB, VIX. Trading the Sebastian bottom. The introduction of VIX weekly futures. Whole Foods prices weigh on earnings. Who’s afraid of insider trading? Chinese equity vol. Will Gold fall to $350/ounce? SO MANY new CBOE indexes. SO MANY.   Odd Block: Ratio/vertical calls roll in MDLZ.  Ratio buy-write in NOW. Taking the short off in NOK. The Mail Block: Listener questions and comments. What happened to Options Oddities? What is the worst beginner options trade? Beware of paying through the offer Around the Block: Still some earnings coming: XOM, CBOE, CVX. Introducing the inverse mullet: the tellum. Greece. Jobs report next week.

Trading Block: China meltdown. Chinese equities have suffered the sharpest one-day crash in eight years. Earnings: Bidu, Facebook, Twitter, Exxon Mobil. Will option traders ‘pin’ gold to $1,100/oz?   Odd Block: Call buyers in EXCO Resources Inc. (XCO), calls trade in Knowles Corp (KN), and calls trade in Pfizer Inc. (PFE) Strategy Block: What is going on in the S&P 500? Mail Block: Listener questions and comments. Question from Jose - Avengers, JPW, Minions, so many big summer movies. What is a good way to play big movie releases with options? I have got about 10k in my trade account to use for fun spec stuff like this. Ideas? Question from Brian Collamer - Hi. Last week Uncle Mike was talking about a customer who had a call calendar on in Netflix. The customer got assigned on the short call. Does that mean the strikes went in the money? If so, would not you exercise the back month long call to cover the assignment? Thanks for the great content you folks make available!   Around the Block: Earnings!

Trading Block: Earnings! MSFT: $47.28 on earnings. Straddle: $2.40 / 5%. Opens down approx. $2. Microsoft lost 3.7 percent after posting its largest-ever quarterly loss. AAPL: Closed near $131 on earnings. Straddle: $6.15 / approx. 4.7%. Opened $122 - down $8.75. Apple fell 4.2 percent after iPhone sales and revenue forecast missed estimates. Nasdaq retreats amid tech selloff after Apple, Microsoft results Odd Block: Calls trade in Chevron Corp. (CVX), calls trade in Direxion Daily Financial Bear 3X ETF (FAZ), and calls and puts trade in Patterson-UTI Energy, Inc (PTEN) Mail Block: Listener questions and comments Question from Sam A, Houston, TX - Is it a good idea to sell credit spreads in leveraged ETFs to benefit from the con tango? Question from 999 - How do you spec on the market falling out of bed using options?   Around the Block: Earnings: Apple earnings not the only huge story this week. Watch GM, Boeing, Coke, Amazon, Microsoft & others. Friday: Johnson Controls, Xerox

Trading Block: In which we feature special guest co-host: Fred Ruffy from Trade Alert   Earnings Today: Before the Bell: Morgan Stanley, Haliburton, Hasbro; After the Bell: IBM. Tech names blowing through their straddles: NFLX: 8%, GOOG: 3.5%. Stocks slightly higher as NASDAQ hits new record. Odd Block: Puts trade in Ford Motor Company (F), puts trade in Windstream Holdings Inc. (WIN), and calls trade in ONEOK, Inc. (OKE). Mail Block: Listener questions and comments: Question from Adam Sam - ‏How come no one saw GOOG jump coming. Do you ever share where you get your info from? I would love to know. Thanks. Question from big George: Hola options amigos. Fun program. Just found it on Stitcher and now it’s on the top of my business playlist. You guys make options fun. I would like to know if there’s any way that I can enter after hours orders for options. I can access afterhours books for my stocks but I don’t see that choice for options. Do I need to use a special broker or platform? This would really help me with my earnings season trading. Thanks, George.   Around the Block: What to watch for in Apple earnings. Also watching GM, Boeing, Coke, Amazon, Microsoft & others.

Trading Block: GOOG after the bell. ATM Straddle: Approx. $21 - a 3.5% move. Last earnings: 19 handle move from close to open, approx. 3.5%. Volume: Approx. 3x ADV. Calls nearly 3 to 1 over puts. Bank of England urges longer jail terms for market manipulators. On July 16th, 2004 - Martha Stewart was sentenced for insider trading, conspiracy, and obstruction of justice in the ImClone trading scandal.   Odd Block: Calls trade in C&J Energy Services Ltd (CJES), calls trade in Regions Financial Corp (RF), and calls roll in US Bancorp (USB) Mail Block: Listener questions and comments Comment from Anonymous - I listened to your talk on Options Insider Radio. (That is a very good program!) It seems that there are a lot of misunderstandings about the cracking down on short sales in China. In fact, there is no limit on short short sales in China as long as you can borrow shares. Very similar to the US shorting stocks. But the main problem in China is the leverages with loans from outside financial companies. A subsidiary of BABA is enabler of such outsider loans. That subsidiary company in Hangzhou (where I am from) has software called HOMS, which expand the single brokerage account into a multiple user account with or without brokerage firms knowledge. The original intended users are fund management firms. But the loan companies use the software to provide loans and control the account for margin risk management. They provide margin loans up to 1:10 ratio. When the market initially dropped 15~20%, many accounts will have margin problem. Later on, the loan companies started manipulation operation: They purposely push down the index futures at certain hours, trigger the market sales, and then they forcefully close customer accounts. Finally the Chinese police department stepped in. That really scared those loan operators. Overall, I think it is great idea to forceful interrupt the vicious feedback loop, and return the market to more normal operations. In China, the communist part[y] has to take responsibilities for the wellbeing of the general population, instead of "following the rules" to allow or protect a few successful guys who figured out how to take advantage of the system shortcomings. So I think it is a good. In the US, no one was charged and put into jail for 2008 crisis. Here, we think that following rules is more important than the results. But the rules have been set up the guys who purposely keep holes they can exploit. In this case, I totally support the Chinese government. It demonstrates that Chinese government can correct the problem much more effectively and efficiently. For a society, it is better to protect 1,000,000 people from losing $1,000 each than to allow a guy to make $1B through "successful" trading. Question from SB94 - What’s up with Chinese stock options? Are options going to be listed in China anytime soon? Question from Sean - I like to follow an indicator that determines the strength of a trend going in a certain direction. How do these typically reflect in the options market?         Around the Block: Earnings! Citigroup, Google, eBay, UnitedHealth Group, America Movil, Blackstone, Goldman Sachs, Philip Morris International, Schlumberger, Advanced Micro Devices, Mattel, General Electric, Honeywell

Trading Block: July and the VIX weigh heavily on the S&P. U.S. stocks rise after Greece reaches an agreement with creditors. Netflix hits new high price in advance of stock split, earnings. Fitbit shares are in uncharted territory as analysts initiate coverage.   Odd Block: Puts trade in IAMGOLD Corp. (IAG), calls trade in Marathon Petroleum Corp. (MPC), calls trade in Market Vectors Oil Services (OIH). Strategy Block: Tosaw discusses synthetics and his most recent trading strategies. Mail Block: Listener questions and comments Question from Fred - I heard options traders like to have multiple positions in their trading accounts. How many should I have? Around the Block: Earnings: Google, Netflix and big banks highlight earnings expectations this week.   Tuesday - JPMorgan, Wells Fargo, Johnson & Johnson, Yum! Brands. Wednesday - Intel, Netflix, Bank of America, Delta Airlines, US BankCorp, BlackRock, Kinder Morgan, PNC Financial Services. Thursday - Citigroup, Google, eBay, UnitedHealth Group, America Movil, Blackstone, Goldman Sachs, Philip Morris International, Schlumberger, Advanced Micro Devices, Mattel. Friday - General Electric, Honeywell

Trading Block: What glitch? Competition eases NYSE shut-down. Fed increase are little more than a coin flip for derivative traders. Apple stock chart points to more downside ahead. Earnings today: Before the bell: PepsiCo, Walgreens   Odd Block: Calls trade in CBS Inc. (CBS), calls trade WisdomTree EuropeHedged ETF (HEDJ), and calls trade in JCPenney Co. (JCP). Mail Block: Listener questions and comments Question from N198UA - I'm a big fan of all your radio shows - especially Options Oddities. I've always had an interest in unusual activity and even attended your forum in Chicago a couple of years ago. My question: if a retail trader makes an options trade based on unusual activity that is later deemed "insider" (or something not legal); could the retail trader - and anyone who copied the "insider" trade be in trouble? What are the possible outcomes?           Question from 999 - Brokers typically charge more to short stocks that are hard to borrow. What are examples of the extra fees or commissions that you pay when you trade options in hard to borrow stocks? Question from Jose Aprile - Any quirks with interest rates options that show the Fed might act soon?   Around the Block: Greece is the word.

Trading Block: CBOE and C2 Options Exchange total trading volume up 16% in June. Surge in Europe stock options volume shows race to hedge Greece. A few dozen Chicago traders will don their multicolored jackets to trade soybean and forex futures the old-fashioned way one last time on Monday, marking the end of 167 years of open-outcry trading in the city where it was born. Oil at 3-months low as outlook darkens again. Odd Block: Rolling calls in Office Depot (ODP), calls trade in Hilton Worldwide Holdings Inc. (HLT), puts trade in Chevron Corp. (CVX), and calls trade in Blackstone Group LP (BX). Strategy Block: Tosaw discusses how he prepared for the holiday weekend.   Mail Block: Listener questions and comments   Question from Fred - Been having problems finding an options paper trading account that does not require me to fund an account. Any suggestions? Around the Block: Earnings - New earnings season kicks off with Alcoa, PepsiCo, and Walgreens.  

Today we have Special Guest Star Henry Schwartz from Trade Alert     Trading Block: Jobs data disappoints. OCC cleared contract volume grew 4% in June. Tesla Motors Inc. (TSLA) shares gain momentum after record quarterly deliveries. Odd Block: Calls trade in Targa Resources Partners LP (NGLS), calls trade in Market Vectors Gold Miners (GDX), and puts trade in ARM Holdings plc (ARMH)     Mail Block: Listener questions and comments: Question from Steamboat Willie - What would you say is the best buy and hold strategy using options? I am interested in using some options in my retirement account but I do not have the time to manage them on a daily basis. I would like to put something on and only check on it every few weeks or months. I am mostly interested in large cap stocks, although I am not averse to dipping my toes into alternative assets such as oil. Question from LeanMean: Is it possible for retail to capture dividends using options? Do you have any good dividend capture strats for me? Around the Block: Will the U.S. be a safe haven? August earnings fireworks? Will U.S. bonds rally?  

Trading Block: Dow falls 225 points, in the red for the year amid Greece; VIX spikes 24%. Biggest one-day loss since 2011 for European stocks as Greek crisis deepens. FitBit options listed on 6/26: 1st day volume = 4,600 contracts. 2,500 on Friday, 2,500 so far today. Oil falls to three-week low amid risk of Greek exit from Euro. Odd Block: Calls trade in US Silica Holdings (SLCA), calls trade in Yandex NV (YNDX), and puts trade in NorthStar Realty Finance Corp (NRF). Strategy Block: Uncle Mike Tosaw discusses his trading, or lack thereof, on this particular day. Mail Block: Listener questions and comments Question from Malki k. - I was surprised to see that FIT options are trading already, listed a little quicker than I thought. I like the stock but not at these levels, so I am looking at some downside strats. One that caught my eye was Aug 30-26 1x2 put spread - looks like I can buy the spread for somewhere around $.60 - $.90 depending on current prices. What is your opinion of that strategy? Not married to that time frame so I could also go longer term to November for $.10 - $.70. Seems like Nov puts are a little bit pricier. Before you say it, I know that this strategy can potentially get me long the stock from $26, but I am more comfortable with that price level than $33.50. And I would have all of the profits from my spread to reduce the effective purchase price of the stock to the low-20s range. Question from Andrew J. - FIT Nov 25/40 bullish risk reversal for even money - thoughts?   Around the Block: Earnings! Tuesday - ConAgra Foods Inc. Wednesday - Constellation Brands, Inc., General Mills, Paychex, Inc.

Trading Block: A Greek deal drives the rally ho! Dow briefly adds 150 points, NASDAQ sets intraday high on Greece hopes. Crude and gold both drop - gold off 1.5%. Hilton: Why are so many traders betting on this hotel giant? Amberella getting crushed.   Odd Block: Puts trade in Ford Motor Company (F), calls trade in Owens Corning (OC), and calls trade in Green Plains Inc. (GPRE).   Strategy Block: Uncle Mike discusses selling calls to hedge, post rally.   Mail Block: Listener questions and comments   Question from Kevin Duggan: to info Hi Mark, I love your shows! Question - What happens to my options if the underlying gets halted permanently? Would I ever be able to close them? I am remembering Sino Forest from a few years ago in Canada- stock got halted pending a fraud investigation and never came back. I am worried that I will not be able to cash in on my BABA Puts! Thanks, Kevin Around the Block: Are there still earnings left? Evidently, with Blackberry reporting later. Will there be new all-time highs? Greece default date: 6/30.

Trading Block: Rally ho on the street. Fitbit IPO prices at $20 a share, above expectations. Fitbit Inc., the maker of wearable fitness-tracking devices, priced its initial public offering above its estimated range at $20 a share, raising $732 million. That makes it the biggest tech IPO this year and gives it a market cap of roughly $4 billion. Apple Bands - Apple (AAPL) shares are in focus in early trading. The tech giant is reportedly amassing major profits from its Apple Watch band. Reuters reports that nearly 22% percent of Apple Watch buyers purchase one or more spare bands. Apple has sold approximately 2.8 million watches since of mid-June, according to an estimate from research firm Slice Intelligence. Oracle tumbles - shares are tanking in early trading. Shares of Oracle tanked 7.6% in premarket action after the software company late Wednesday reported a drop in fourth-quarter earnings. Odd Block: Calls trade in Williams Companies Inc. (WMB), calls trade in Toll Brothers Inc. (TOL), and puts trade in iShares MSCI EAFE Index Fund (EFA)     Mail Block: Listener questions and comments: Question from TennisGr8t - Longos Odd Block show. If technical analysis is not good for options how then do you get trade ideas? Are any of the newsletters that get hawked daily any good? I am leaning NO. Great show gents. Question from Anthony Sontakis - Hi, this message pertains to futures options. I currently trade futures options on Tradestation Futures+ platform. I was hoping someone might be able to recommend a Futures Options trading platform for a solo trader like myself. I need the ability to enter advanced orders like OCO and OSO based on the underlying price, and I need the ability for profit/loss graphs, neither of which features Tradestation platform supports right now. The only platform I have found that supports what I need is OptionsCity, but the pricing is for institutions ($2500/month) - that is cost prohibitive for me. Are there any good but affordable platforms out there to trade Futures Options for a little guy like me? Thanks, Anthony     Around the Block: Oracle, Rite-Aid earnings. Continuing to punt on the Fed. NASDAQ closes at record high. Another summit on the Greece bailout.

Trading Block: Trade bodies urge regulators to sort out derivatives reporting. Stocks to watch: CVS, Lumber Liquidators, Actavis. CBOE extends VIX and SPX options trading hours as global growth in VIX continues to build.   Odd Block: Puts trade in SPDR S&P Homebuilders ETF (XHB), calls trade in iShares MSCI Germany Index (EWG), and calls roll in TASER International, Inc. (TASR).     Strategy Block: Tosaw discusses hedging bond portfolios.   Option Pit Mystery Block: Sebastian discusses crisis management.     Around the Block: Earnings: Oracle, Rite Aid & FedEx Highlight Quiet Earnings Week.

Trading Block: Apples big meeting is a loser for investors - the Apple (AAPL) faithful are breathlessly awaiting the company's latest announcements at its confab starting Monday. But investors know better – it's a bust. VXX - closed the day at $18 (a change of -2.33%) at a relative volume of 0.95. Lululemon founder, Chip Wilson, files to sell his stake in the company. Odd Block: Calls trade in iShares FTSE/Xinhua China (FXI), puts trade in iShares MSCI Germany Index (EWG), and big call buy in DISH Network Group (DISH) Mail Block: Listener questions and comments Question from RJR 357: Are the Options Bootcamps worth it? Question from Mr. Fed: Can you explain how to use gamma around earnings. Question from Roger Lee: were the calls sold or bought for Tyco? There are about 14K calls that are expiring in July as well. I'm not sure if it was a buy or sell as well. Around the Block: Earnings: Sears, Lululemon.

Trading Block: Down day on the market: weekend coming in; selloff. TSLA up $7, but why? What is going on with Greece? If they can get out of their debt, why not the rest of the EU? Theta vs. delta. Could AAPL go over the trillion dollar market cap level? AVP rumor redux: making up stories to manipulate the market & SEC. Odd Block: Puts trade in TUR, puts trade in AU, and calls trade in CCL. Strategy Block: Ratio spreads on bonds. Around the Block: Shaking fists at Greece. Vol blip. LULU earnings leak?

Trading Block: A pronounced selloff across the market today. The IMF calls out the Fed - says rates should be not raised until 2016. Goldman is long puts in USO and XLE - saying volatility is just too low. Odd Block: Puts trade in Ocwen Financial Group (OCN), puts trade in Intel Corp. (INTC), and Aug calls trade in Cisco Systems, Inc. (CSCO) Mail Block: Listener questions and comments Question from Value Investrader: Question for you regarding unusual options activity, when Vol & OI increase, how do we know whether they were bought vs sold? Question from Tom_Inc: What is a good intraday options trading strategy for SPY? Question from Sin City: Why do you not use hashtags for each of the show to sort out the questions? For example: #OptionBlock, #VolatilityViews, etc. Around the Block: Greek deadline coming up. Non-farm payrolls. Fed Watch: June.

Trading Block: Embrace options in the TWTR stock fire sale. Intel to buy Altera in nearly $17B cash deal. Euronext to launch volatility contracts. Odd Block: Calls and puts trade in CSX Corp (CSX), puts trade in IAMGOLD Corp (IAG), and calls trade in EV Energy Partners LP (EVEP) Strategy Block: Anything you can do with stock, I can do with options. Around the Block: June kicks off the close of earnings season.

Trading Block: Wall Street is using the power of Dodd-Frank against itself. Shake Shacks (SHAK) unhedgeable risk. Chipotle (CMG) stock rallying following higher analyst rating. Google (GOOGL) tech deals on pace to surpass 1999. Odd Block: Calls trade in CONSOL Energy Inc. (CNX), calls trade in McDonalds Corp (MCD), and puts trade in iPath S&P 500 VIX Short Term ETN (VXX). Mail Block: Listener questions and comments Question from Gerry Engle - Hola fellows. Like the programs especially Option Block and Volatility Views. I noticed you guys do not talk much about technicals. The few times you have mentioned them you seem to take a dim view of them. Why is that? Are there no technicals that you feel are useful for options traders to pay attention to? Question from Calls vs Puts - Why is there not just one product that you can sell and buy to express your bullish or bearish outlook instead of two - calls and puts? Is that not a bit of overkill? Question from Georges Sinclair - Why are iron condors so popular? Seems like many other strategies can offer similar performance. Why has that one strategy become so dominant? Around the Block: Early summer doldrums? Any action in anything anytime soon?

Option Block 434: Buy SPY Calls and Go Away Trading Block: Buying SPY for the summer. The absence of fear - How low can the VIX go? Stocks rise to near records; oil jumps above $60. Someone made a quick buck trading cable mergers - Cablevision soared 18 percent on Wednesday Odd Block: Calls trade in Sphere 3D corp. (ANY), calls trade in TYCO Intl PLC (TYC), and calls trade in Advance Auto Parts, Inc. (AAP) Mail Block: Listener questions and comments Question from David S. - I think Apple is writing/buying options. Check my blog post for an option oddity: - http://bravo0123.tumblr.com. Why would they do this? I do not know, it’s only 6 million shares for Apple. Can I profit off this guess? Not sure. Around the Block: Earnings: Big-box retailers step into the spotlight for earnings this week - i.e. Best Buy.

Trading Block: Icahn says "dramatically undervalued" Apple should trade at $240. AccuShares is set to list a couple of interesting products on Tuesday: AccuShares Spot CBOE VIX Fund Up Shares (VXUP) and AccuShares Spot CBOE VIX Fund Down Shares (VXDN). Odd Block: Calls and puts trading in CBRE Group Inc. (CBRE), puts trade in DSW Inc. (DSW), and calls trade in Molson Coors Brewing Company (TAP) Strategy Block: Uncle Mike Tosaw discusses trading in SPY Around the Block: Earnings: Consensus estimates from Wall Street analysts call for year-on-year earnings growth from big-box retailers Home Depot Inc. and Target Corporation, but for earnings declines from Best Buy Co Inc., Staples, Inc. and Wal-Mart Stores, Inc. when they report this week.

Trading Block: Rally ho on the market today. Is Avon in play? Stock halted after rallying over 20%. ADV 11k contracts - today over 75k! Avon Products Inc. said it never received a takeover bid from PTG Capital Partners Ltd., a firm listed in a securities filing as offering $18.75 a share for the struggling cosmetics company. Odd Block: Calls trade in Michael Kors Holdings (KORS), calls trade in PowerShares DB Agriculture (DBA), and puts trade in Healthcare SPDR (XLV) Mail Block: Listener questions and comments Question from Dmitry Shesterin ‏- @Options Some equities have more active options than others, why is $BAC so disproportionately more active? Some contracts beat $SPY, $VIX. Question from Fred Decker - Mark, I am nearing the end of reading Natenberg - I have even been going back to some basic concepts in the earlier chapters to refresh myself. While I like the book, I do not see much of a trading edge in Natenberg. The market models he uses assume frictionless trades and that volatility is constant. Is Natenberg a good book to get an edge in the market, or do you have another secret book to add to the trader's arsenal? Around the Block: Earnings: Major retailers highlight this week's earnings outlook.

Trading Block: OPEC: Oil prices to stay below $100 for next decade. April U.S. options volume at 327.6m, down from March as spreads tighten. Highlights from The Options Industry Conference in Miami last week. Odd Block: Calls and puts trade in the SPDR S&P 500 ETF (SPY), puts trade in Altisource Portfolio Solutions (ASPS), and calls trade in Iron Mountain Inc. (IRM) Strategy Block: Tosaw discusses selling calendar spreads Mail Block: Listener questions and comments Question from Nicolas Bougie: Many Thanks for [Russell] Rhodes podcast you guys put online. Very educational! My question to you guys is: What is your personal favorite trading platform and why? What platform would you suggest to someone starting in this business? Around the Block: Earnings! Wednesday - Cisco, JC Penney, Macys. Thursday - Kohls, Nordstrom, King Digital

Trading Block: Bond, James Bond. A bullish bond market rally could be in our future. VIX going into Non-Farm Payroll - could we see a big move? Odd Block: Puts trade in Whole Foods Market, Inc. (WFM), puts go up in iShares iBoxx High Yield Corp ETF (HYG), calls trade in Alibaba Group Holding Ltd (BABA) Mail Block: Listener questions and comments Question from Dmitry Shesterin: Where do you see more HFT activity, in equities markets or options? Question from Tom: When should I adjust a credit spread? What percentage of profit should I aim for? Question from Fred: I am a futures guy dabbling in options. Do options traders need different tool than futures traders? If so, what tools or services do you recommend outside of the broker platforms? Question from Karl: What is the better way to get "free juice" on a bullish position - bullish risk reversal for a credit/even, vertical ratio call spread for a credit/even or just a short put for a credit (obviously). This would be for a near term (a few months), but not explosive (maybe to 5%) rally in the underlying. When is buying the stock the best option? Strategy Block: Uncle Mike Tosaw discusses selling puts. Around the Block: Looking ahead to non-farms

Option Block 429: Avenging Pacquiao Trading Block: Bonds taking it on the chin. Disney stock soars, lifted by the superhero power of The Avengers. CBOE reports 35% of their total volume is from weeklys.     Odd Block: Puts roll in iShares Russell 2000 index ETF (IWM), massive put block trade in SouFun Holdings Ltd (SFUN), and puts trade in Clean Energy Fuels Corp. (CLNE)   Outside Trading Hours: In his brand new segment, Mark Sebastian discusses the NFLs latest move to remove tax-except status.     Around the Block: Earnings

Option Block 428: The Thorax of the Trade Trading Block: Tattoo snafu inks Apple iWatch wearers. Options volume slid in first quarter. Bad sign? Retail investors all in: TD Ameritrade. The dollar is on its longest losing streak since 2011. India VIX caps monthly advance as futures rollover below average. Tesla loses ground ahead of battery event.     Odd Block: Calls trade in PowerShares DB US Dollar Index (UUP), calls trade in Kinder Morgan Inc. (KMI), and puts trade in Youku Tudou Inc. (YOKU)   Mail Block: Listener questions and comments Question from Nick - I have heard markets spend 30% of time trending and 70% of time bracketing. Can I use options to trade both of these environments? Question from Alan - Why is rolling a position so prominent? Is that not just averaging into a losing trade? Question from Anglo Jim - We saw a trending bull market for most of 2014. Is it simplistic to say that you could have just bought out-of-the-money calls and done fairly well? What about that decay that you are always talking about? Does that become a factor in that strategy, or does the bull market overcome it? Question from Orlando - I am thinking of using weeklys to initiate debit vertical call spreads. Is that a good use case for them? Comment from Mark Brant - @Options Great Option Block episode! I got even smarter about options again! The gift that keeps on giving: OIR. Thx!     Around the Block: Earnings: Apple & other earnings expected to dominate the week of April 27. Friday - Chevron, Weyerhaeuser

Option Block 427: Rocking AAPL Earnings Trading Block: AAPL earnings after the bell. AAPL Stats: ·  ATM weekly straddle: $7.20 - approx 5.4%. ·  ADV: 988K contracts. ·  Today: 1.7M contracts. ·  Call/put ratio: 2.1/1. ·  Net deltas: short 670k. ·  Calls sold on bid roughly equal to calls bought on ask - puts also evenly divided. ·  AAPL volatility bets surge in options market as buyback beckons. Investors seek protection against healthcare stock decline - Healthcare companies on a seven-year tear have been top performers so far in 2015. Love ’em or Hate ’em, China Stocks Are Red Hot in Options Market - Bearish options bets on the Deutsche X-trackers Harvest CSI 300 China A-Shares ETF. Odd Block: Calls go up in iShares MSCI Taiwan Index (EWT), call blocks trading in Joy Global Inc. (JOY), and OTM puts trade in Direct TV (DTV) Strategy Block: Tosaw discusses hedging AAPL and other earnings strategies. Mail Block: Listener questions and comments Question from Cab 65 - What account size do you recommend to sell wide iron condors? Rock Block: In which the all-stars discuss movies in the Michael Bay oeuvre. Let us know your thoughts on Facebook, Twitter, or by email Which Nicholas Cage movie is the best? The Rock Con Air Face Off Who does the best “Welcome to the rock” interpretation? Uncle Mike  The greasy meatball Mark “the voice of options” Longo Around the Block: Earnings: AAPL & other earnings expected to dominate the week of April 27.    

Option Block 426: Hedging Crude Oil Is Not Rocket Science Trading Block: NASDAQ composite rises above March 2000 record close. Roots of 'flash crash' go back further than you thought at CME. Oil jumps 3 percent, hits 2015 high on Yemen, supply concern. Earnings today include (before the bell): GM, Procter and Gamble, Caterpillar, Dow Chemical, Southwest Airlines, Dunkin Brand Groups; and (after the bell): Google, Microsoft, Starbucks, Amazon, Capital One, E-Trade Financial, Pandora.   Odd Block: Giant put buyer in The CBOE Volatility Index (VIX), and calls trade in iShares MSCI Taiwan Index (EWT) Mail Block: Listener questions and comments Question from Vegan - What oil products do airlines use to hedge their crude exposure? Question from Nick - I have heard markets spend 30% of time trending and 70% of time bracketing. Can I use options to trade both of those environments? Question from Alan - Why is rolling a position so prominent? Is that no just averaging into a losing trade? Question from Evan - For Uncle Mike - I am long the Apple July 130-140 call spread. What do you think about this both for an earnings play, as well as for some longer term bullish exposure to Apple? What are some other bullish strategies you could recommend for a modest ten-point rally over the next three months? Comment from Mark Brant - Great Option Block episode! I got even smarter about options again! The gift that keeps on giving: OIR. Thx!    Around the Block: More earnings. Friday, April 24 - American Airlines, Xerox, Tyco International. Monday, April 27 - Apple, Inc.

Option Block 425: Scratching Heads & Taking Names Trading Block: A mild day on the street. IBM Earnings after the bell today - IBM trading around $164.30. Costco stock rises today after upping dividend - reauthorizing $4B buyback program. This is how one trader made millions on Disney - shares of Walt Disney have had a great year.     Odd Block: Calls trade in Owens Corning (OC), puts trade in Wolverine World Wide, Inc. (WWW), and calls trade in Spectra Energy Corp. (SE). Strategy Block: Tosaw discusses ways in which to protect your portfolio.     Mail Block: Listener questions and comments Question from Sean - Can you do a quick overview of binary options? How do they differ from regular options, and when should people use them? How do I choose my strike with binary options? Around the Block: Earnings: Morgan Stanley, Facebook, Coke. Some huge names report earnings this week.  

Option Block 424: NFLX and the Roll to Oblivion Trading Block: The "Widowmaker" rides again - NFLX has a HUGE post-earnings rally, up $56. BATS to file for second U.S. options exchange. IPO: Stock of online marketplace Etsy surges in trading debut. Shares of high-speed trading company Virtu Financial Inc. have risen 17 percent in their stock market debut Thursday. Ben Bernanke is not the problem, the system is the problem.   Odd Block: Calls trade in Kinder Morgan Inc. (KMI), puts trade in iShares MSCI Turkey ETF (TUR), and broken wing put flies go up in Royal Bank of Canada (RY)   Mail Block Palooza: Listener questions and comments     Question from Tom - When should I adjust a credit spread? What percentage of profit should I aim for? Question from DuckTape - Can you guys recommend any good movies about options trading?

Option Block 423: Unusual Activity Palooza Trading Block: How traders cashed in big on the GE deal. VIX does record volume - it’s been a while.   Odd Block: Calls trade in Dunkin Brands Group (DNKN), puts trade in Valero Energy Corp. (VLO), calls trade in AT&T (T).   Strategy Block: A special strategy block from Andrew about volatility     Mail Block: Question from Ingles - I like options, but the commissions are killing me! Why are they so expensive?   Around the Block: Earnings! Tuesday - JP Morgan, Wells Fargo, Intel Corporation Wednesday - Bank of America, Netflix, Inc., SanDisk Corporation Thursday - Goldman Sachs, Citigroup Inc., American Express Company Friday - General Electric Company

TRADING BLOCK Crazy realized volatility going down in Hong Kong markets - EWH. The Apple Watch release. Its time for the "Global Derivatives" guessing game.   ODD BLOCK Calls trade in ConocoPhillips (COP) Puts trade in Crestwood Equity Partners LP (CEQP) Calls trade in New Oriental Education & Tech (EDU MAIL BLOCK Question from Mark Brant - When to close weekly short option positions on expiration friday?  Morning or afternoon? Plus Mark wins the Options Insider Radio Network devoted listener prize for listening to EVERY episode of every program on the network. Very impressive. Question from NJay - OTM options are reasonably priced - should I buy them?   

Option Block 421: The Tesla Options Protection Package Trading Block: A sea of green on the street today. Tesla having its best day in five months - Back over $200. Oil leaps 5% on tempered Iran view, slower U.S. inventory rise.   Odd Block: Calls trade in Market Vectors Oil Services ETF (OIH), calls trade in Outerwall Inc. (OUTR), calls trade in Harley-Davidson Inc. (HOG)     Strategy Block: When is it ok to take profits early?   Mail Block: Question from NYSE Trader - Is it possible for hedge funds to press on options of illiquid stocks to manipulate prices? Can they do that?   Around the Block: Alcoa earnings on Wednesday. Last week’s jobs report. Looking at gold and oil. Don’t diddle in the middle.    

Option Block 420: Farewell to the Viceroy Trading Block: A sea of green in the market today - everything up! Wall Street regulator fears up for labor fight with its workers. High-frequency trading worries are fading, ConvergeX finds. Tesla CEO Elon Musk teases new product. Spoiler Alert: It is not a car.   Odd Block: Puts go flying is Tyson Foods (TSN), calls trade in HCP, Inc. (HCP), and puts trade in Dicks Sporting Goods Inc. (DKS)   Strategy Block:  Uncle Mike Tosaw recollects on his first meeting with Alex Jacobson and the subsequent years following.       Xpress Block: The Viceroy tips his hat in a final goodbye.

Option Block 419: The Great Weekly Option Trading Debate Trading Block: The market off just a fraction. Call option trades target return of $100 US crude oil. Options traders getting paid following Buffett to Kraft takeover. Odd Block: Calls trade in EOG Resources Inc. (EOG); puts trading in iShares Emerging Markets ETF (EEM), and; puts trade in Market Vectors Semiconductor ETF (SMH)     Xpress Block: Alex discusses many of the functions in the OX mobile platform.   Mail Block: Listener questions and comments Question from Joseph Anthony - I appreciate your input on the following issues. I know that I am not alone in dealing with these questions. I continue to be confused on which weekly strike to choose when trading for a one or two day hold. I realize if issue does not move in my desired direction by Tuesday afternoon I risk theta decay and it increases rapidly as week progresses toward expiry. My thoughts in trading weeklies is to trade the ATM or most liquid on Monday and Tuesday. Trade one strike in the money on Wednesday and Thursday and trade two strikes in the money on Friday. I have read many articles recommending to trade DITM options (+-90) for a close to $1 for $1 effect. But the DITM are often quite illiquid and expensive. My model generates 75%+ success rate in choosing issues that move according to my projections and I choose to use weekly options to trade a small universe (AAPL, AMZN, GOOGL, AND NFLX) but I am still struggling to definitively choose the "right" option. My model is predicated on an immediate move and if it does not transpire in a bar or two I tighten my stop or exit. I am looking to trade naked or use strips and straps in order to implement my models signals. Thank you in advance.   Question from NJay - What should I be using to value my index options properly, the cash index or the actual underlying futures? Thank you for all your insight.          Around The Block: Earnings today (before the bell): ConAgra Foods, Lululemon Athletica Inc., Accenture, Cosi, Inc. After the Bell: GameStop Corporation.  Friday: BlackBerry Ltd, Carnival Corp.

Option Block 418: Something Has To Work Trading Block: Earnings before the bell today: Geopark (GPRK) Posts Quarterly Earnings Results, Beats Estimates By $0.17 EPS. Earnings after the bell today: Flexion Therapeutics, Concord Medical Services Holdings Limited, Vericel Corporation. Senator Warren questions SEC chair on broker reforms. Volcker Outlines Plan for Overhauling Financial Regulation. Oil rises as weakening dollar outweighs OPEC oversupply.     Odd Block: Put traders in Neustar Inc. (NSR), calls trade in Caesars Entertainment Corp (CZR), and puts trade in ENSCO PLC (ESV) are up .10 to 21.15 today.   Xpress Block: Come on in and try out an OX virtual trade account.   Strategy Block: It’s tax season - Tosaw discusses regular vs Roth IRAs     Around the Block: Earnings: A relatively quiet week on the earnings front. Thursday: ConAgra Foods, GameStop, Lululemon. Friday: BlackBerry Ltd, Carnival Corp.

Option Block 417: Big Boy AAPL and Crazy VIX Settlement Trading Block: The Dow welcomes Apple. Informed traders prefer options says academic research. Options market sees bottom in gold with urgency on hold at Fed.  Earnings today (before the bell): Lennar (LEN); after the bell: Nike.   Odd Block: Unusual traders in Sina Corp. (SINA)   Xpress Block: Alex discusses covered writing strategies     Mail Block: Listener questions and comments Question from Mark Brant - Thanks to the crew for a great show and for answering my question! When the cat was away the mice did play! ...@Options Do block trades show up on the retail brokerages position ledgers as volume and OI... AAPL 1M ATR is at the top of its 20yr range so I bot April straddles for way less! Question from Nico - Do I need to understand the Black-Scholes formula to trade options? Question from James Mile - I am currently reading the options books by McMillan and Natenberg (thanks for the great suggestions). The latter chapters of some of these books get pretty deep into the mathematical underpinnings of the options market. I have to wonder if most of the people who are trading these products really understand this stuff. Do you share my concerns that there are potentially millions of people out there slinging calls and puts that really don’t understand how any of this stuff works? Great program. Glad OX/Schwab is a supporter of such fine content.

Option Block 416: Blasting Out Cheap XLE Puts Trading Block: Rally ho on the street! Options traders are starting to pay up for crash protection, according to a recent note from Goldman Sachs. Long-dated crash put protection costs on the [S&P 500] have more than doubled over the past 9 months.   S&P 500 declines for third straight week as dollar resumes rally. OPEC says low oil prices may hit U.S. output by late 2015.   Odd Block: Puts trade in US Silica Holdings Inc. (SLCA), put trade in iShares MSCI Brazil Index (EWZ), and calls trade in Lowes Co. (LOW).   Xpress Block: Check out both the Xpresso and Xpound blogs.   Strategy Block: Tosaw discusses breaking his rules in a recent put spread trade.   Mail Block: Listener questions and comments Question from Rahul Tondulkar - Hey guys I want to know how much minimum open in required to say that the option has liquidity? Can anyone please help me out?? Question from Neal Tompkins - How do I know when an option is going to be less liquid? What are some good suggestions for dealing with less liquid options? Around the Block: Upcoming Earnings: Tuesday – Oracle; Wednesday - FedEx, Silver Wheaton; Thursday - Nike, Lennar  

Option Block 415: How to Play the Lottery Trading Block: Nasdaq enters energy futures trading to compete with CME, ICE. Lumber Liquidators’ stock soars after company offers business update. Shake Shack gets burned: Stock falls 7%. Earnings today before the bell Dollar General reported record fourth quarter and full year 2014 financial results. After the bell includes Aeropostale Inc. and ULTA Beauty.        Odd Block: Calls go up Steel Dynamics, Inc. (STLD), combos trade in Pinnacle Entertainment, Inc. (PNK), and combos trade in International Business Machines (IBM)   Xpress Block: Alex discusses the OX Idea Hub.   Strategy Block: Some fun stories about not playing the lottery.   Mail Block: Listener questions and comments Question from Mark Brant - Do block trades show up on the retail brokerages position ledgers as volume and OI? Question from Fred - What is the best way to use an option to speculate on the S&Ps intraday movement?   Around the Block: Watching the sovereign 10-years, VIX, higher Dow. What about the price of oil? Will the contagion spread? Fed. Fed. Fed. Can we get off the road to nowhere?    

Option Block 414: The Princess Bride Fed Trading Block: A mild day on the street. Earnings after the bell today include: Urban Outfitters and Qihoo 360 Technology. Nymex reports incorrect energy prices. Oil rebounds from early drop on modest Cushing stock build. What will the Apple Watch do to the stock?   Odd Block: Puts trade in iShares Dow Jones US Real Estate ETF (IYR); puts trade in CIT BioPharma Corp (CTIC), and; call buyers in Gaming and Leisure Properties (GLPI)     Xpress Block: The best OX feature: The Walk Limit Strategy Block: Uncle Mike discusses the importance of timing   Mail Block: Listener questions and comments   Question from IJay - Are a lot of people trading weekly options? If so what are they using them for? Around the Block: Earnings!   Tuesday, March 10:  FuelCell Energy,   Barnes & Noble, VeriFone Systems Wednesday, March 11:  Shake Shack, Express, Krispy Kreme Doughnuts, Mens Wearhouse, Vera Bradley, XOMA Corporation Thursday, March 12:  Aeropostale Inc, Dollar General Corp., JA Solar Holdings, Synta Pharmaceuticals, ULTA Beauty    

Option Block 413: When Not To Use Options Trading Block: A quiet day on the street today. ISE preps third options exchange. Expect more volatility in oil says Exxon CEO. NASDAQ near 5000 amid ECB plans, big pharma deal. Earnings today include: Costco, Kroger.   Odd Block: Calls roll in T-Mobile US Inc. (TMUS), big moves in Canadian Solar Inc. (CSIQ), and OTM puts trade in Inc. yet Corporation (INCY).     Xpress Block: Alex discusses the OX Virtual Trade Account and Schwab Mobile   Mail Block: Listener questions and comments. Question from Alejandro Vergoza - When is it right to use options and when is it right to use the stock instead? Question from Jay - If the market is really falling out of bed what are some good strategies to take advantage of that movement while also minimizing option decay? Question from Fred - Is there a problem in the options market with novice options traders not understanding the risks they are taking? Do you think that will that lead to regulatory action down the road?     Around the Block: Earnings tomorrow includes Staples. February jobs report comes out on Friday. Can non-farms save the bulls?

Option Block 412: Sneaky Deltas Trading Block: Earnings after the bell today: Caesars Entertainment: Late to the party but still a star. Nasdaq hits 5000. Stocks just registered their largest monthly gains in nearly four years. CBOE to expand VIX options trading hours from Monday. Option activity in Lumber Liquidators. What would the Dow look like if it included Apple?     Odd Block: Closing and rolling in The Energy Select Sector SPDR (XLE), bullish bets in National Bank of Greece (NBG), and calls trade in Mens Wearhouse (MW)   Xpress Block: Alex discusses the Virtual Trade tools   Strategy Block: A special Strategy Block from Mark Sebastian about sneaky delta!   Mail Block: questions and comments from listeners Question from Evan J. - Are there fundamental differences between European and Asia options markets versus the American options market?     Around the Block: Earnings: Tuesday, March 3 - Best Buy, Dick’s Sporting Goods; Wednesday, March 4 - Abercrombie & Fitch, PetSmart, H&R Block; Thursday, March 5 - Costco, Kroger; Friday, March 6 - Staples

Option Block 411: Futures Traders vs. Stock Traders Trading Block: Earnings today include: (Before the Bell) Kohl’s, 3d Systems Corp, SeaWorld Entertainment, LifeTime Fitness, Marriott Vacations Worldwide, Magellan Health, Anheuser-Busch InBev, Sears, Avago Technologies. After the bell:  Gap, JC Penney, Weight Watchers, Crocs, Herbalife. Oil edges higher towards $62, ample supplies still weigh. Apple rains on stock market parade.     Odd Block: Puts trade in Exelixis, Inc (EXEL), puts trade in SPDR S&P Metals and Mining ETF (XME), and all sellers in iShares MSCI Japan ETF (EWJ)   Xpress Block: The Schwab mobile app hits 1 million downloads. Also, its tax season!   Mail Block: Listener questions and comments Question from Brian Collamer - Hi Mark, back in October I sent this question and I see you ran with it in a couple of other shows: You mentioned that when selling options the fastest theta decay occurs in the 45-30 day range.  I thought that was only true for ATM options? Do OTM options decay the fastest at 60-70 days and then kind of flatten out? In each show you had asked where I had seen/heard this. LiveVol blog and forum. What do you think? Thanks for the great content! PS: Futures Roundtable needs to be twice a month IMHO. Question from Thomas: Is there an active spread market for options on crude futures? Also do you feel that futures traders make better options traders than stock traders?   Around the Block: More earnings: Friday, February 27:  Goodrich Petroleum, Isis Pharmaceuticals

Option Block 409: Talking PCLN, Crude and Pairs Trading Trading Block: There is still no real agreement among Fed officials on rate hike timing. Oil cuts loss as supply hike not as large as anticipated. Earnings today: before the bell: Wal-Mart, Priceline Group Inc., T-Mobile; after the bell: Intuit   Odd Block: Calls roll in (BWP), calls and puts trading in Microsoft Corp (MSFT), and calls trade in Boston Properties, Inc. (BXP)     Xpress Block: Alex discusses OX and Schwab mobile trading   Mail Block: Listener questions and comments. Comment from Martin - Thank you that you share this precious information on your show for free. A great job. Well done. Martin from Germany. Comment from Kevin Duggan - Hi Mark, Love your shows! Not to be an ingrate for all the great, free info and entertainment but, could you put out your podcast the same day you record it? It is always strange hearing you talk about Thursday’s market after Fridays close. It is not a big deal, more of a first-world problem really, but posting sooner would significantly bump up your cool factor. Thanks. Question from John D. - Hi, Love your show. You guys do a great job. Keep up the good work. My question...If I am looking at a pair trade (e.g. long Facebook, short Twitter), obviously I can do it by buying/shorting the stocks. I was trying to figure out if there is any way to effective do the same thing with options what the advantages might be, if any. I thought of doing a synthetic long/short, but did not see any advantage since I will be naked short an option for both names... but maybe margin treatment is different? Long call on one and log put on the other does not seem to make sense since I am pretty much guaranteed to lose the premium on both those positions. Is there another or better way to structure this type of trade using options? Thanks, John D     Around the Block: Earnings coming up down the road.

Option Block 408: Juicy Apple Puts Trading Block: Earnings today after the bell:  AIG, Groupon, King Digital Media (Candy Crush). Earnings before the bell today: Avon, McGraw Hill, Kellogg Co. Insuring against Apple blow-up just got a lot more expensive. Tesla shares fall after earnings, despite musk apple comparison. Oil prices rally from sharp losses.     Odd Block: Call buyers in Domtar Corp (UFS), call buyers on fire in FireEye Inc (FEYE), and put spreads trade in Morgan Stanley (MS)   Xpress Block: Alex discusses the OX Help Desk.   Mail Block: Listener questions and comments Question from Nick Snow - Hello Mark and other guests. I was wondering if you have ever put together a quick review of other people or newsletters in the industry. For years I have come to options insider because it doesn't spam me, it does not ask for my credit card, and above all I find the information on all shows greatly beneficial. There seem to be so many hacks out there ready to take others money, I think it is time you rate a bunch of other professionals with a simple "Put or Call" rating meaning that company or person is worthless to listen to or actually useful. So of course the options insider would get a call rating from me since it is about the only premium I would be willing to purchase. Thanks again look forward to listening into the future. Question from Tom A Bomb - Distinguished Gentlemen, This is a follow-on to a question I posted a few weeks ago regarding a back-of-the-envelope method to price vertical spreads. Last time, I got a vote of at least 50% crap, and I am really shooting to get the crap content down to around 25%. The panel identified that skew and vol estimates were the weak spots in my method. I am somewhat disappointed on the skew aspect. I do not think there is any quick way to incorporate skew into a calculation on a napkin. So, bummer there… But on to my real question: Some of the panel members speculated I might be getting my vol estimates from delta. Not true. I am not using implied either. In large part, the point of my method is to remove any short-term noise to arrive at a “stable” or “normal” estimate. To that end, I will usually match my input vol figure to realized vol of over a comparable period. For example: I want to buy a XYZ 95-100 vert call spread that is 100 days from expiration. 100-day realized vol is currently around 15%. I use that 15% vol input and calculate there is a 30% chance that XYZ will finish above $100 at expiration. Therefore, $5 (width between strikes) x 30% would put the mid-price of the spread around $1.50… Now, I totally understand that historical performance is not an indicator of future yada-yada-yada. The main goal here is to avoid buying when, historically speaking, prices are pumped; or selling when prices are depressed. So, there is my volatility angle. Admittedly, I’m still beat on the skew angle. I will get back to you on that I suppose. Gentlemen, estimates on the crap content...? (Sorry Longo I know this is a long question – tried 3 times to make is shorter! Please cover this on the Option Block again, if you can! Thanks!)   Around the Block: Earnings before the bell today: Avon, McGraw Hill, Kellogg Co.Earnings tomorrow: Time Inc.  

Option Block 407: Cracking Down on Insider Trading Trading Block: A light day on the market. Oil rallies for third day after OPEC sees greater crude demand. Oil rose for a third straight session on Monday as OPEC forecast greater demand for crude this year than previously thought and projected less supply from countries outside the group. Does Germany owe Greece war reparations?  Toys for boys push Hasbro earnings above Wall Street expectations. SEC probes Blackberry options trading ahead of Reuters report about Samsung talks.     Odd Block: Early put closer in Fidelity National Financial Inc. (FNF), quick call sale in LinnCo LLC (LNCO), and put trader in SPDR S&P Biotech ETF (XBI)   Xpress Block: An in depth look at the Trade and Volatility Calculator and other tools from OX.   Strategy Block: Uncle Mike talks the virtues of patience, how to be wrong in the right way and factoring in losses.   Around The Block: Earnings!   Tuesday, February 10:  Omnicon, Starwood Hotels & Resorts Worldwide, Molson Coors Brewing, MillerCoors, Dean Foods Wednesday, February 11:  Tesla, Thomson Reuters, Whole Foods Market, Nvidia Corp, AOL Inc, Time Warner, Metlife, Cisco Thursday, February 12:  AIG, Groupon, Avon, McGraw Hill, Kellogg Co. Friday, February 13:  Time Inc.