Option Block 354:  When to Close Out a Spread Trading Block: VIX and VIX cash. LULU taking it on the chin. It’s time for the Trading Patterns Guessing Game once again!   Odd Block: Calls roll in Danaher Corp (DHR), calls roll in Wisconsin Energy Corp (WEC) - Buy Jul, Sell Jan., closing collar in AGCO Corp (AGCO) - Buy call/sell put, and ratio call spread unwind in Beazer Homes USA, Inc (BZH) - Sell 1, Buy 2.   Xpress Block: Alex discusses the development of migrating the OX tools to Schwab, including the 3 and 4-legged trade ticket, due to Schwab Mobile and Street Smart Edge by September.   Mail Block: Listener questions and comments. Question from Neal Augustin - Like the discussion on the recent show about getting free gamma going into earnings. It makes sense since the contracts should experience minimum decay. But do you not have to use a contract that expires after earnings, preferably the earnings week, in order to get that bump? If you use the contract that expires prior to earnings, it should decay like normal, correct? Question from Trader64 - Spread decay question: Mark said in the mail block in response to a listener question about spread pricing, that the at-the-money and in-the-money options would decay at different rates to make the spread widen. Since this takes a substantial amount of time, should I always count on only capturing a portion of the maximum profit in each of my spreads? If so, what percentage is reasonable? Thanks for the show Mr. Options Voice!   Around the Block: More earnings on tap for this week. Citigroup - 7/14. JP Morgan Chase and Goldman Sachs - 7/15. Bank of America - 7/16. Morgan Stanley - 7/17.

Option Block 353: Crazy Combos and the Great Open Interest Debate Trading Block:  A volatile day on the street - S&P got as low as 1952. VIX cash ticking up nearly one handle. Gold a big mover today - to the delight of Uncle Mike Tosaw. It’s time for the Trading Patterns guessing game again - this time with GLD!  Lumber Liquidators (LL) gets crushed, down over 20% today. Options volume already 10x ADV on new that they are cutting 2014 earnings outlook. Sprecher calls for market-wide purge for order types. Chicago Fed joins the HFT conversation calling for curbs.  Odd Block: Calls roll in Thermo Fisher Scientific (TMO), closing combos trade in CBS Outdoor Americas Inc. (CBSO), call buyers trade in Goodyear Tire and Rubber Co. (GT), dividend trade calls trade in Freeport McMoRan Copper (FCX) Xpress Block: A reminder at IdeaHub for futures is out. Please be aware that firms are trying to rein in exposure fees. Mail Block: Listener questions and comments Question from Nico Belle: Am I correct in assuming that open interest refers to the number of contracts that are available for exercise on a particular strike and not just the trading volume seen on the strike? Question from Rick: What does the term spot refer to? Also how is change calculated? These terms are used with unusual activity. Thank you, Rick Question from T Jon: Hey all stars - great show Mark and the gang. Please say hi to Uncle Mike, the rock lobster and the viceroy for me. I enjoy all of their segments including the strategy block. On a recent episode Uncle Mike referred to selling put spreads to help finance the cost of a longer term put. Can he explain his methodology for this strategy - if he buys a six month ATM put is he also selling ATM put spreads against it for a straight up calendar? Or is he selling OTM put spreads and going for diagonals? What frequency is he doing this on - weekly? Monthly? Does he ever combine the short put (spreads) with a short covered call essentially turning it into a long term put vs a short term strangle (plus)? Question for viceroy as well - what is your favorite question you’ve ever been asked at one of your seminars? Mark - thanks again for this great show. Your network will always have a home on my iPhone. Around the Block: On Thursday: weekly jobless claims, May wholesale inventories as well as Fed talk: Stanley Fischer, Vice Chair of the Fed Reserve, gives his first speech (financial reform in Cambridge, MA) and KC Fed President Esther George (economy and monetary policy in Oklahoma). Problems in Portugal: parent of Portuguese banks delayed payments on some short-term debt.  

Option Block 352: Hot GoPro Action Trading Block: A mild selloff ahead of earnings. The newcomer GoPro was very active today, as well as everyone’s favorite fruit company, Apple.   Odd Block: Call buyers trade in URS Corp. (URS), puts buyers with stock trade in King Digital Entertainment (KING), call buyers trade in Zions Bancorp (ZION), and put spread buyers trade in iShares MSCI Germany Index (EWG).   Xpress Block: A lot of speculation in fixed income.   Strategy Block: Tosaw discusses how not trading can also be an option when you can get what you want.   Mail Block: Listener Question Question from T. Simpson: Hey all-star panel (viceroy, meatball, lobster, uncle and the voice)! I’m sitting on some gains in ford and would like to protect it. I’m looking at the December 17 put (currently trading for 82 cents). I know you guys have said aim for about 2% of your portfolio for protection. But my math shows this to be about 5% of my portfolio for decent near-ATM protection. What are some ways that i can do stuff to make this protection more affordable? I very much enjoy the show and i am wearing a fancy hat as i write this letter. – Tom     Around the Block: ALCO kicks off the earnings madness again tomorrow. 

Option Block 351: Dollar General Insider Loses Millions Trading Block: A quiet day on the street, given the shortened trading week. A stealth rally in Gold. Traders preparing pre Google earnings. Under 400K ADV in VIX today.   Odd Block: Call spreads trade in Dollar General Corp. (DG), size ratio spreads trade in Carnival Corp (CCL), puts sellers trade in Companhia Energetica Minas. (CIG), and small call buyers trade in Amicus Therapeutics, Inc (FOLD).   Xpress Block: Alex discusses premium harvesting in IdeaHub.   Strategy Block: Uncle Mike Tosaw discusses when it’s OK to break the rules and to make new ones.   Mail Block: Question from Aviatrix - Hello all-star panel! Great program. I have a question about option open interest. I don’t really understand it. I’ve read some blogs that say open interest can impact a stock’s direction during expiration week. Is this just, as Mark would say, the “tin foil hat crowd” or is there something to this? Should I be tracking open interest as an indicator?  Keep the “wit and wisdom” coming!     Around the Block: Be aware - this is a shortened holiday week.

Option Block 350: TWTR Risk Reversal Rundown Trading Block: Interesting intra-day activity, but ended up closing basically unchanged. VIX cash back in the 11 handle range. A resurgence in Twitter. A banner day for Valero. Odd Block: Calls trade in PowerSecure International, Inc (POWR), calls roll in Ashland Inc. (ASH), puts trade in SM Energy Co. (SM), put spreads roll in Tractor Supply Co. (TSCO), puts trade in MagicJack Volactec ltd. (CALL). Mail Block: Listener questions and comments Question from JG - Hi guys! Love the show(s), I like really really love the show(s). Last Option Block you mentioned us providing our trades and you dissecting them. Just happens to be a very opportune time because I am currently in a trade and I'll provide my analysis and would like to hear you guys discuss. Question from Roger Edwards - Hi. Unusual options activity has drawn my attention to company A, which led me to discover that it's a takeover target by company B. Of course takeover timing is the big challenge. I know that company A has an upcoming ex-div date. Is an ex-div date relevant (factored into takeover timing) at all? Is there any advantage in company B timing its takeover of company A before or after the ex-div date? I'm just trying to use whatever information I can to select the right option expiration. Thanks so much. Question from Kaiserdog76 •  - "The Dumbest Investor In the World"  - Made good money on UA stupids and FB. Played for a bounce in IWM using options. As that one looks like it has the most room to run. Decent jobs numbers and the "Goldilocks" rally continues. - P.S. Rock Lobster would be proud of me. I even traded a couple Apple calls for a nice pop….Oh, Bita,bita,bita,bita........ Gotta love those China Tech stocks that Retail usually has no clue about. Excellent heads up. Maybe I will look for a bottom and get long again. I had bought 100 shares back when it was trading at $30. In less than a week I was up $600 and figured it could go down just as fast as it went up. Sold and never looked back. I might be breaking some rules here but I like to circle back to winning trades after I feel enough time has passed. Is that a bad habit? I do not have % stats or anything but I know that many have worked more than once. Thanks for refreshing my memory on BITA!   Around the Block: Andrew is amazed. Short trading week next week. Not expecting too much activity. Look out for early cash-settled indexes. Be prepared.

Option Block 349: A Bonafide Covered Strangle Trading Block: Lululemon had a big move today, as did Facebook and Tesla. Is time once again for the Trading Patterns Guessing Game!. Odd Block: Put butterflies trade in Dow Jones Industrial Average ETF (DJX), call sellers trade in AerCap Holidings NV (AER), call and put sellers (covered strangle?) trade in PG&E Corp. (PCG), and same month call rolls trade in Six Flags Entertainment Corp (SIX) Xpress Block: What is your take of the covered strangle? Adding names to the IdeaHub.  Strategy Block: Tosaw discusses the enhanced collar strategy. Around the Block: How long can the market continue to ignore what happens in Iraq, higher oil prices, etc.? Whoa to the complacent. Where’s the conviction?

Option Block 348: Rampant Insider Trading The Trading Block: More of a micro, rather than a macro day today. Gold up on the day. Is VIX too low? Lululemon had a stealth rally last week. New Amazon Fire phone. Visa popped up the day.  A study by professors at NYU and McGill University in Montreal shows insider options trades precede about a fourth of US M&A deals. Odd Block:Call sales trade in Verso Paper Corp. (VRS), and bullish risk reversal/Combos trade in Exterran Holdings Inc. (EXH) Xpress Block: New premium harvesting tools now available in IdeaHub. New features for the Walk Limit.  Mail Block: Listener Questions & Comments Question from Shane Hamilton - Hey Mark, How about a new segment called the "Success Block" where listeners submit winning trades and your cohorts comment how it could have been improved, done differently or kudos exactly the way it was played. Just an idea that seems like that might be fun. Besides we all love to talk about our winners. Question from ITrumpDoom - Hello. If I expect a stock to move significantly over the next six months, but I do not  have a prediction for direction: Is it reasonable to sell a short put butterfly, and a short call butterfly on that stock, with all the long strikes at or very near the money? I think I would cover the risk in one of the flys, by the profit in the other, since it would be impossible for both of them to expire with maximum loss (not that I would hold to expiration). Is my logic sound on this? Is six months an unreasonable expiration to use on these given potential IV increases?   Around the Block:  Weekly jobless claims and Regional manufacturing survey (Philly Fed). Keeping an eye on the Iraq situation, crude and Brent oil prices.

Option Block 347: Bringing Guns to the Trading Pit Trading Block: A very mild day on the street. Everyone still loves Tesla. What is up with gold volatility?   Odd Block: Calls spreads trade in Fairchild Semiconductor Intl. (FCS), calls trade in Nexstar Broadcasting Group, Inc (NXST), calls trade in St Jude Medical, Inc. (STJ), puts roll trade in SPDR Barclays Capital High Yield (JNK).   Xpress Block: You could quality for a commission waiver on options trading if you belong to the Schwab Private Client Group. Idea Hub did very well in May. Premium harvesting now available for both securities options and futures options.   Strategy Block: Remember, this week is the ex-dividend date on SPY     Around the Block: Monday - NY Fed Empire Manu survey. Industrial production and capacity utilization for May and June. NAHHB Homebuilders survey.

Option Block 346: Say Hello to Exposure Fees Trading Block: A sea of red on the broad street today. VIX: more fear than fear itself? A big day for energies. Lululemon missed their earnings mark.  Odd Block: An update of recent activity in Dollar General (DG), newsletter put seller trade in Galena BioPharma Inc (GALE), risk reversals/collar in Jet Blue Airways Corp (JBLU), and size put buyers trade in the iShares Dow Jones Transport (IYT) Xpress Block: A lot of activity in portfolio margining. More news on the upcoming futures for IdeaHub. Strategy Block: An update on the ratio-hedged risk reversal on Apple. Finding ways to finance the hedge.  Mail Block: Listener questions and comments.  Question from Ivan - I have heard some people say I should not sell naked short puts because of “gap risk”. I always respond that it is the same thing as working a limit order in the stock. Who is right - me or these worry warts?   Around the Block: Thursday: Import price index and business inventories are estimated to climb. The World Cup begins and the rest of the world will be on vacation for the next month.

Option Block 345: Beating the Street on Dollar General Trading Block: A mild day on the street. Apple stock split. A possible Deutsche Bourse sale of ISE. Odd Block: Activity review from last week: Carl Icahn disclosed a 9.4% stake in Dollar General (DG) and shares soared. We knew something was up last week. Call buyers in USG Corp (USG), puts rolls trade in Kodiak Oil and Gas Corp. (KOG), and crazy call buying in Clorox Group (CLX) Xpress Block: Apple dominates the housekeeping, speculating on Lululemon earnings, and a stealth rally in Oil   Mail Block: Listener questions and comments Question from Alexander Soja - Love the program. I listen on my commute to and from work. I would like to know more about the broken wing butterfly. What is this strategy and why would it be useful? Question from MrTeenzy - All this talk about colocation for HFT firms. But do brokers like OX not also co-locate to speed up transaction times? In which case, is colocation not benefiting the retail guy like me?   Around the Block: S&P 500 edging toward the 2,000 mark. It could happen in the next few weeks. Lululemon earnings 6/12.  

Option Block 344: Premium Palooza in Dollar General Trading Block: A great day on the market. Amazon rises after announcing that they will be making an announcement. What is lurking under the low VIX? Complacency? Odd Block: Unusual activity in Tesoro Corp (TSO), Target Corp. (TGT), Dollar General Corp. (DG), and NuStar (NS) Xpress Block: Alex discusses about how a few select clients may be able to trade commission free. Enhanced capabilities in Schwab mobile, including Hub for Futures.    Around the Block: Friday = Unemployment Numbers and Non-Farms

Option Block 343: AAPL Ratio Spread Madness Trading Block: A slow day on the street today. All Apple - all Amazon - nothing below the "A"s. OCC announces cleared contract volume declined in May, while 2014 volume remains up.   Odd Block: Call ratio spreads trade in Apple Inc. (AAPL), long-term closing call sale in Fortress Investment Group LLC (FIG), closing put buys before earnings trade in Ascena Retail Group Inc. (ASNA), and opening call seller in The Western Union Co (WU)   Xpress Block: Alex discusses Idea Hub for Schwab Mobile and possibly Futures Trading.   Strategy Block: Ratio Spreads: when and how to use them and why they teeter on the edge of dangerous.   Around the Block: ADP private-sector job growth & weekly jobless claims on the horizon. 

Option Block 342: Mini Death Knell Trading Block: A mild uptick on the street today. Apple rallies and the market follows. With the VIX moving closer to its 9.39 historic low, many commentators are now discussing it as a "complacency index," writes John Nyaradi of Wall Street Sector Selector   Odd Block: Risk Reversal trades in iShares MSCI Australia Fund (EWA), call buyers trade in Scientific Games Corp. (SGMS), and call buy-writes trade in Ambev SA (ABEV)   Xpress Block: Alex discusses the recent NASDAQ notice and the death of minis.   Mail Block: Listener questions and comments Comment/Question from Kaiser Dog - Enjoyed todays podcasts. I felt the Viceroy came back with some very pertinent information. I myself have been using my iPad and even My iPhone a few times to initiate trades. The Mobile Trading option is gaining traction and I agree with Alex's sentiment that this has smoothed out trading flow. Especially in times that would be historically light volume. I myself prefer my Laptop trading station I have custom built. With that said the reality is that raising a 4 year old son takes a lot of time and attention. My Mobile App allows me to stay on top of things and still be a parent. The Mobile trading option is a huge success. The Polar Opposite of "Mini Options" in my opinion. I enjoyed the swing to a positive story from the depression that HFT and Minis cause me. lol. Question from DeGaul - What does the OH/Monster merger mean for the options brokerage landscape going forward? Question from Mr Teenzy - All this talk about colocation for HFT firms, but do brokers like OX not also co-locate to speed up transaction times? In which case, is colocation benefiting the retail guy like me?   Around the Block: Economic Data: First-quarter GDP revision (Thursday) and Personal Income and Spending, Chicago PMI and University of Michigan consumer sentiment (Friday). Fed talk:  Fed's Pianalto: 'Inflation and Monetary Policy'

Option Block 341: Weird Activity In Colgate-Palmolive Trading Block:  A surprising VIX given the upcoming holiday weekend. Record low levels in some beloved Option Block names. We saw a massive upside call going up in VIX early this week. The U.S. options exchanges are working jointly toward the development of a uniform obvious error rule to nullify or adjust transactions that meet the definition of an obvious or catastrophic error. OCC and US Options Exchange adopt pre and post-trading risk control principles.  Odd Block: Closing puts buyers trade in HMS Holdings Corp. (HMSY) Puts sellers trade in Big Lots, Inc (BIG) Call sellers trade in Colgate-Palmolive Co. (CL) Closing put sale in US Steel Corp (X) Xpress/Mail Block: XpressMail….get it? OX questions this week: Comment from CBarles - I agree with Mark and the Viceroy - OX needs a "caps lock" detector on the website login page. I am always forgetting that and having to log in twice - very annoying. Please save me from myself.  Comments/Questions from Kaiser Dog - Mark, First let me thank you for using my post in the Mail Call. Made my day yesterday. If you liked that? I have a lot more where that came from.  Just got done listening to "Talking Volatility" and enjoyed the show. I must confess I am not an "Option Pit" guy. Just a retail investor who has a big hunger for anything option related and A fan of the "MeatBall" and the Show in general. I bought Flash Boys the day it was released and have read it about 5 times. Thank you for your work on this front as well. Kudos to your unbiased reports. Please keep them coming. My question for the panel today is as follows: There has been allot of talk about Bubbles. I thought Hubba Bubba and Big League Chew were filling for IPO's there has been so much chatter on CNBC and other media sites. lol. The element that seems to be missing? Undue euphoria and enthusiasm. I do not see it. I do not see Retail participating in any big way. Volume is anemic and artificial (HFT) in my opinion. I would love to hear the panel's take on the topic of A Market Bubble. In addition I would like to hear every ones take on the "State" of the "Retail" investor. Thanks again! Cheers.   Around the Block:  Initial Jobless Claims Data and Homes Sales Report on Thursday -- Claims are expected to be higher. Notes from the FOMC meeting.

Option Block 340: Revenge of the Guts Strangle Trading Block: What will bring back volatility? A black swan event? Russell Rhoads said via MarketWatch that investors are showing a “justified complacency” given that recent VIX jumps don't stay at those levels for long. "One-off events," such as the Ukraine, get investors' attention for a while and then wanes. It's enough for a VIX spike but not enough to sustain it. From a black swan event in the economy and markets, it would have a greater, deeper effect. Odd Block: Calls buyers trade in Oncothyreon Inc. (ONTY), closing call buyers and put buyers trade in Gastar Exploration Inc (GST) - a closing guts strangle? Closing call sellers trade in Chemtura Corp (CHMT), and calls roll in iShares MSCI Brazil Index (EWZ). Xpress Block: Alex talks recent news from Charles Schwab (CEO suggests regulators require brokerage firms to disclose payment for order flow), as well as VIX ETNs. Around the Block: Is the housing market really coming back? The National Association of Realtors will release April existing home sales data Thursday and the U.S. Census Bureau reports sales numbers for newly constructed homes is out Friday.  Earnings this week include Home Depot, Lowe's, Campbell Soup and Hewlett-Packard.

Option Block 339: Potential Front Running Activity Trading Block: Today we have a very special trading block segment from Uncle Mike Tosaw about Russell and RVX vol. Is VIX in a deep sleep? Odd Block: Combos trade in the iShares MSCI Emerging Markets (EEM), call spreads trade in Travelers Companies (TRV), calls trade in Expeditors International of Washington (EXPD), and calls trade in Chemtura Corp (CHMT) Xpress/Mail Block: We are mixing it up today with some questions from OX clients: Please explain put/call parity.   A very successful trader friend says ITM debit spreads are superior to credit spreads and I do not get it. Can the probability of a calendar be easily calculated?

Option Block 338: The Great Mobile Trading Debate Trading Block: A strong surge to the upside, Russell leading the charge. Russell 2000 index (RTY) option costs at Feb 2007 levels. Who is playing out in this product? Apple and Beats headphones - two Tosaw favorites.   Odd Block: Combos, rolling short stock position in Denderon Corp. (DNDN), call buyers trade in VeriFone Systems Inc. (PAY), call buyers trade in Hillshire Brands Co. (HSH), and put spread sellers trade in WisdomTree India Earnings (EPI)   Xpress Block: Alex talks about mobile app usage by the OX clientele and market-wide.     Strategy Block: Mike Tosaw discusses covered calls going in the money - and how that is a good thing.     Around the Block: Upcoming economic reports: Retail Sales (Tuesday), PPI (Wednesday) and CPI (Thursday). Still more earnings: CSCO - 5/14 after, COSI - 5/15 after, TTWO - 5/13 after. 

Option Block 337: Looking Back on the Flash Crash Trading Block:  Options traders were preparing for 10% swings of Tesla before week's end based on a straddle. On Wednesday, volume in Twitter options increased fivefold, all but erasing value in a series of bullish contracts. ICE reports record Q1 profit. After its June IPO, Euronext plans to be listed on three of its exchanges. May 6 marks the fourth anniversary and it's a reminder that not much has changed.  Odd Block: Put sellers in BBEP, call spreads trade in Cameco Corp., calls trade in DLX, closing put seller in FTR. Strategy Block: Calendars vs. verticals, part deux.  Comment from Erik Ruehr re: Mike Tosaw’s survey. I say vertical spreads are better now. Thanks for the show. Comment from Tom S.: In response to Uncle Mike’s survey: In general, I’d say vertical spreads trade much better now. Comment from LJO: Put me down in the plus column for verticals. Around the Block: Some earnings left: CSCO, TTWO, CBOE, GRPN. Macro, macro, macro, 10-year, 30-year, the Fed. Will social media/tech stocks hold up?

Option Block 336: Earnings and the Death of Minis Trading Block: A mild day on the street. Apple catching a bid. Tuesday’s computer error at NYSE ACRA and NYSE AMEX options markets resulted in almost 20,000 erroneous trades.   Odd Block: Call buyers trade in Nike Inc. (NKE), call sellers trade in Gilead Sciences, Inc. (GILD), put spreads trade in iShares Barclays 7-10 year Treasury ETF (IEF) - closing roll, and closing put buyers trade in NQ Mobile Inc. (NQ).   Xpress Block: Late May/Early June is the target date for enhancements to OX mobile, which will include single-leg walk limits, as well as OSO and OTO orders.   Mail Block: In which Option Pit steals the show. Website comment from Kaiserdog76: Loved todays Option Block. Especially the focus on Mini Options and their total failure. Mark Sebastian said it best when he talked about the people that really need a break in the Market getting "Bo Didley Squat" when the dust settles. I have all ways hated Minis. Talk about a getting "Stupid" on an option trade. One tenth the size but %100 the commission. Spreads wider than Honey Boo Boo. This product is a total joke and in my humble opinion never really lived. This was dead on takeoff. Website comment from Meatball-in-training:  Great show. The question from one of your listeners about the trade scanner that keeps popping up two standard deviation ITM debit spreads was very interesting. Is it perhaps the case that the scanner is ignoring the cost of carry on the premium itself when looking at prospective trades? That is the sort of thing I can imagine someone overlooking when programming a trade scanner and for wide verticals with lots of time to expiration, it might be enough to make expensive debit spreads look superior to their synthetically equivalent credit spreads. I am one of Mark and Andrews’s students, so if this is all wrong, feel free to blame them. Tweet from OtC bOuNcEr$ @stevesokol21 - Is there a way to run a scan anywhere to find more stocks with that pattern? Thanks a lot for the help      Around the Block: Still some more earning left out there: ATVI - 5/6, CBOE - 5/6, DIS - 5/6, EA - 5/6, GRPN - 5/6, TSLA - 5/7 & PCLN - 5/8

Option Block 335: The Giovinazzi/Tosaw Spectacular  Trading Block: A slow day on the market today. TLT was one of the few things to light up the tape. Yellen, the Fed and bond buying. An update of the VIX and S&P with Andrew.  Odd Block: Call buyers in Auxilium Phramaceuticals, Inc (AUXL) Call buyers jump into EQT Corp. (EQT) Call spreads trade in Verso Paper Corp (VRS) Calls roll in Mechel OAO (MTL) Strategy Block: A question/poll for our audience: Given the level of the VIX, is this market a better environment for doing verticals spreads or horizontal spreads? Around the Block: More earnings: XOM, LNKD, KRFT and EXPE. The biggest news will come for the jobs report on Friday. Will gold continue to slide? GDP?

Option Block 334: Are Mini Options Dead? Trading Block: Close to close is only half the story today. Russell and the NASDAQ lead the way. Stocks that pay a nice dividend are clear outperforming stocks that do not. Three candidates selected to oversee OPRA.  Odd Block: Puts go up in Diebold Inc (DBD) A three-way trade goes up in Range Resources Corp. (RRC) Calls buyers go up in Norhtstar Realty Finance Corp. (NRF) Put spread sales trade in Bank of America Corp (BAC) - potential roll down           Xpress Block: A continuing rotation out of momentum into more quality names. Apple, Amazon IBM and Microsoft were all hot on the OX desk today. Strategy Block: A two-part strategy block today. First, a few current strategies Uncle Mike is employing. Second, a trade for people who may not have been able to pull the trigger on a selling a bull put spread when the market was down today.   Mail Block: Question from Jason Kruse - Has probably been asked & answered many times, and I have missed it.. Will $AAPL minis continue to trade after the split? Around the Block: A lot of economic news this week, including the Fed two-day FOMC meeting. On Monday, pending home sales and Dallas Fed manufacturing. More earnings: TWTR, MAR, CME & LKND

Option Block 333: AAPL, AMZN Earnings Roundup Trading Block: A mild rally on the street today. Apple earnings play-by-play with Uncle Mike Tosaw. A very boring Apple earnings - will this become the next Microsoft? What is the future for Apple? What is the future of the Minis? Will 7 to 1 be the death nail? Odd Block: Strangles, calls and puts trade in Eagle Rock Energy Partners LP (EROC), closing call buys trade in SandRidge Energy Inc (SD), closing call buys in iShares MSCI Japan ETF (EWJ), and put buyers trade in AmerisourceBergen Corp. (ABC)  Xpress Block: A very busy day at OX, but one that is not represented in the numbers. A lot of paper in FB and APPL going into earning. Mail Block: Question from Nick Snow - Hey Mark. Second time writer here. I was recently scanning brokers out there and have listened to almost everything on options insider. I found one that is highly regarded by barons and some there's for price and technology recently. One of their "proprietary scanning" functions is meant for spread traders. I opened a virtual trade account and played with it and it is all out of the money low Vol 2 standard deviations debit spreads. Is this not a complete love your broker trade? Is there something more that they can build in a spread debit trade that I do not know? Question from George - You posted a chart recently on Options Insider and unfortunately I do not know what "P/C" mean. Would you please explain it for me? Many thanks. Your site is very interesting and readable. Question from A. Berger - When are futures options going live in Idea Hub? Thanks and I love the show. P.S. - Can OX add a caps lock indicator to the website like they have in iTunes? It would make it easier to log on since I am always forgetting about my caps lock. Question from Doc Phil - Why do so many options traders fall to the “dark side?” You do not see many short sellers in equities. Is premium selling just more attractive or is there something about options traders? Around the Block: A final look at MSFT, AMZN and APPL after the bell.  More earning on the horizon: MAR - 4/29, NOK - 4/29, TWTR - 4/29, LNKD - 5/1 & CME - 5/1.

Option Block 332: How to Waste a Good Hedge Trading Block: Back to rally mode on the street. Vol retreats yet again. Names before the bell: Haliburton (HAL), Hasbro (HAS) - After: Netflix (NFLX)   Odd Block: Put sellers trade in SBA Communications Corp. (SBAC), call buyers trade in Merrill Lynch/Market Vectors Semiconductors ETF (SMH), review from 3/27/14 - calls trade in Ares Capital Corp. (ARCC) (this was a loser), and a review from 3/24/14 - call buyers jump in Quest Diagnostics Inc. (DGX) (possible winner).   Xpress Block: Apple and Facebook dominate trades, though, a lighter than expected day today.   Strategy Block: This week Uncle Mike talks about expiration day risk - just in case some of you got burned last week.   Around the Block: Earnings season shifts into full gear. On tap for this week:   APPL - 4/23, FB - 4/23, F - 4/25, GM - 4/24 before, MSFT - 4/24 after, UAL - 4/24 before & AMZN - 4/24 after.

Option Block 331: Maximizing Your IRA   Trading Block: It was a pretty slow day, with all major indices basically unchanged on the day. Expiration issues prompted many phone calls to the optionsXpress desk. Earnings aren’t running over premium sellers like the last time. Pit trading helped out the CME last week. HFT narrative still active in the market.  Odd Block: Big call buy in Wal-Mart Stores Inc., May call spread trades in Western Digital Corp. (WDC), put buying in Target Corp. (TGT), and closing out a huge position in Lloyds Bank of London (LYG). Xpress Block: Frenzy about a shortened expiration week, particularly with indexes.  Mail Block: Listener questions drive the conversation.   What to do with a losing position? Day trading commissions and tax implications. Maximizing a Roth IRA.

Option Block 330: Falklands War Volatility Trading Block: A mild day on the street. The Russian incursion of Ukraine is still having its effects on the market. CBOE VXST off to a good start. Hedge fund VIX bets on the decline. Odd Block: Calls go up in Carnival Corp. (CCL), calls trade in Millennial Media (MM), call spreads trade in IAC Interactive Corp (IACI), and puts trade in Dean Foods Co. (DF).   Xpress Block: Happy Tax Day! Market are thin, given this shortened week. Yahoo and Google on the tape at OX.   Strategy Block: Uncle Mike revisits the topic of selling puts in a down market.   Around the Block: A big earnings week! 4/15: SCHW (before) YHOO, INTC; 4/16: BAC (before), GOOG, IBM; 4/17: GS (before), AMD, CMD; 4/21: NFLX.    

Option Block 329: The Great SPY vs. SPX Iron Condor Debate Trading Block: A sea of red on the street today. A lot of directional paper going through OX today. Terrible data coming out of China. CBOE Short-Term VIX product (VXST) launches.   Odd Block: Getting the RDA of RDA puts (RDA), big put blocks trade in Bill Barrett Corp. (BBG), and IV jumping in Tower Group International Ltd. (TWGP).   Xpress Block: A mass exodus from momentum stocks. What exactly caused this?   Mail Block: Commissions and Buy/Writes Question from Brian Collamer - Mark mentioned he thought U.S. retail accounts should be trading SPY rather than SPX options in a recent Options Block episode. I 'm selling Iron condors in SPX {2 contracts, just learning...} When I looked at the same size trades in SPY {20 contracts}. The commissions were killer. I like the idea of better fills in SPY and no open outcry trading, but seems like the commissions/fees really make them untenable at my levels. Am I missing something? Thanks for the great podcasts!! Brian Question from AJ - I was listening to The Option Block #266 Juice & Paper and you guys mentioned how you saw unusual activity in FCX which looked like a Buy/Write trade. My question: How can you tell when an option trade is a Buy/Write or options paired with shares trade? Thanks.   Around the Block: What will pick up the market?

Option Block 328: Earnings Season Is Back Trading block: Momentum has been taken out of the market for the past two days - which way will we move? Earnings season is upon us. GLD rundown with Uncle Mike.   Xpress Block: Some hedges were being lifted today. Google the big name on the OX desk.   Strategy Block: This week, Uncle Mike Tosaw discusses selling puts in a down market.     Around the Block: Bank earnings a little later this week. What more could come out of Ukraine? Is "buy the dip" still there?

Option Block 327: You, Too, Can Be an FBI Junior Agent Trading Block: March options volume rose 14%. ADV was 16,931,924 contracts, equity options volume was 321,641,596 contracts. FBI to investigate high frequency trading - the FBI wants your help!   Odd Block: Big call purchases in DFC Global (DLLR), buy-write in Williams Companies, Inc. (WMB), bullish bet in Resolute Energy (REN), and big block of puts trade in Corning (GLW) Xpress Block: Google now trades on an adjusted basis: Class A and Class C shares.   Mail Block: Tell us what you want to know. Question from Wael Randa - What service do you offer to help options traders. Also I am looking for a scanner to spot big order block by investors. Any free or paid service. Thanks a lot, Samuel. Question from John King - @Options could you discuss trade entry for Iron butterfly/condor (ignoring commish)-all at once vs. leg verticals vs. buy strangle then sell straddle? Question from Fred Blackes - Geez, you guys are great.  Why is it that you were the only ones who read the FIO options actions April 25 2013 correctly?  Everybody else had the trader/Hedgie buying the Sept 24 calls. Do you offer any service for learning/advisory     Around the Block: S&P 500 hits another record. Unemployment report Friday. Earnings coming up next week. 

Option Block 326: Options Trading for Bitcoin Trading Block The Fed is not turning off the spigot anytime soon. Ukraine easing tensions combine to boost the market. Options trading for Bitcoins - Atlas 2.0 launched in Hong Kong and North America. Regulatory rule unlikely for HFT. Author Michael Lewis releases a new HFT book - Flash Boys. Odd Block Puts trade in Genpact Limited (G), Call spreads trade in Grupo Televisa SAB (TV) and Call sales trade in iShares MSCI Emerging Markets ETF (EEM) Xpress Block Tesla and Amazon still retreating. Idea Hub for Schwab mobile is in its final days of testing - should be out in the next couple of weeks. Strategy Block Today, Uncle Mike discusses the importance of closing out short options. Mail Block Question from Dylan Harris - Hi, I started trading options about a year and a half ago and got burned a few times which made me realize I did not know nearly what I thought I did and sent me back to the drawing boards. I have spent the time since then learning as much as I can about different options strategies and trying them in virtual accounts. I have come to the conclusion that diagonal spreads fit me pretty well. The question I have is whether there are ways to use delta as a trigger to (in the case of diagonals) roll the short strike down and/or out and if so how successful have these been in implementation and which brokers have them? Thanks! Dylan Around the Block March 31 planting report. Janet Yellens speech. End of the first quarter.

Option Block 325: SPX vs. SPY vs. Steven Seagal Trading Block: A mild day on the street. VIX cash taking a little breather. A lot of put buying in Google, Tesla, Netflix, Priceline, etc. Lululemon gets its first big pop in a while. TLT reaches a one year high. Odd Block: Combos trade in the VIX, straddle trades in EQT Corporation (EQT), calls trade in Ares Capital Corp. (ARCC), and puts trade in SPDR Barclays Capital High Yield (JNK)   Xpress Block: Growth was in short supply today on the OX desk - a mass exodus. A mixed bag for the biotechs. Idea Hub is coming to Schwab mobile soon! Plus spot VIX products!   Listener Mail Extravaganza: Because if it’s going to be an extravaganza, why not make it about mail? Question from John King - Could you discuss SPX vs SPY vs ES opts? Bid/Ask slip VS commish, Margin treatment, ex-div/exercise annoyance, etc.? Thanks! - Commish in my case are flat .75/cntr, no tkt chg. For ES opt its $3.65 thx! Question from Nick Snow - Options block 323 - You mentioned on this show that RBS had a bunch of Aug 10 ATM volume today.  I noticed this also and I am not sure I get it. RBS has lots of problems with the queen and the LIBOR fees they pay from loans. I am not sure how I can phrase this so it’s tradeable but if any company where to have an IPO of a company owned with in. Would you buy calls on the company that was public because you assume the cash injection from the IPO would boost the stock of the parent? If you want to get more clarity around that I can but I am sure it will kill your ability to trade RBS. And as an options express account holder tell them to get flies on their scans instead of just condors. :) Question from Nishant Pant - I love your show so much. Every morning at gym, I am listening to your podcasts instead of music like everybody else. One thing I am frustrated on the internet is everybody is just busy explaining what a straddle or strangle or any other thing is...instead of telling the practical things you need to keep in mind and you guys do such a great job in explaining the gotchas and the greeks which matter. Is it possible for you to add actionable ideas? Tomorrow GRPN is releasing earnings. Maybe you can build upon what you have already taught us and explain an actionable idea and tell us why you think a particular trade you are suggesting makes sense. I would pay for such a podcast at the blink of an eye. Just for the learning aspect of it.  Thanks again for your awesomeness.     Around the Block: Treasuries. Volatility. What will Russia do next? Buy the dip…a 52% guarantee. Short supply in growth issues. 

Option Block 324: Behold the Power of the Stupid Trading Block: A mild day on the street. Controversy over SPX settlement on Friday. Mutual fund use of options: public holding and trends (presented at RMC). Minis one year later - boom or bust?  Odd Block: Call buyers jump in Quest Diagnostics Inc, (DGX), big call roll in Coronado Biosciences Inc. (CNDO), puts trade in Spectrum Pharmaceuticals, Inc. (SPPI), and call sellers in Prologis Inc. (PLD). Xpress Block: Alex talks in depth about the SPX settlement controversy on Friday Strategy Block: Tosaw discusses the "Stupid." What is it and when do you use it?   Around the Block: Watching and waiting to see what happens in the Ukraine. Parade of Fed people. What’s happening with the super cheap treasury vol?    

Option Block 323: Rebar Futures Extravaganza Trading Block: Russian President Vladimir Putin is an investor in Swiss-based oil trader Gunvor Group Ltd. Time for the global derivatives volume guessing game! Put on your thinking caps and guess the winners in the various product categories: indexes, ags, metals, and more.   Odd Block: Calls spreads trade in Alpha Natural Resources Inc. (ANR); calls trade in Mast Therapeutics Inc. (MSTX); calls trade in Royal Bank of Scotland PLC (RBS), and: puts trade in iShares Japan fund (EWJ).   Xpress Block: New enhancements to the OX trading platform.   Mail Block: Thumped by Theta Question from Theta Thumper: Here's a question for one of your shows (Options Insider maybe?): You often talk about hedging a portfolio. If you decide to do it the simple way and hedge by buying a long dated 'put' on the SPY (instead of using the VIX) is it better to buy a put at say 15-20% below the market for the full amount of your portfolio or use the same amount of cash you would have used for that to hedge closer to the money but with a smaller percentage of the portfolio? My concept is to use 1% of my portfolio per year as a hedge. Jim (Theta Thumper) Sisters, OR     Around the Block: Stock market edges higher after encouraging economic reports offset interest rate concerns.

Option Block 322: When 50 is the New 70 Trading Block: The VIX was up 25% in the last week. FIA Boca update.  US derivatives exchanges have seen improved trading volume. In the US, three of the top five US exchanges grew in Feb. Odd Block: Calls trade in UQM Technologies (UQM), call buyers jump into Silicon Image, Inc. (SIMG), puts trade in Montage Technology Group (MONT), and call sellers try on some DSW Inc. (DSW). Xpress Block: A quiet day at OX. Some activity in triple digit names and the 10-year and the Bund.   Around the Block: Ukraine worries, Sundays referendum, US sanctions and Feb US data numbers.

Option Block 321: Old School Bullish Paper Trading Block:  A big selloff on the market today. Angela Merkel yells at Putin. A big day for the banks. The numbers are in! $21.64B derivatives traded in 2013. $12.22B of futures. $11.7B in equity names. VXST options coming in April. More exchanges are on the way - for better or worse. Odd Block: Some very interesting paper in IRDM, AG, TSM, and XRAY. Xpress Block:  Three new OX products are nearly ready for release, IRIS - Integrated Rapid Information System, Idea Hub for Schwab mobile and Idea Hub for Futures. Mail Block:  Question from Illin' - Are the new Mt. Gox IOUs essentially the first Bitcoin derivatives? Question from Joseph Riggs - Has OX ever thought about creating its own options product, that it could then promote to its customers? Is that even possible (legal), or are new products the sole domain of the exchanges? Is that why there are so many? They are all trying to get into the new product biz.  Question from Ian Getz -  Basic question, is there HFT in the options market as there is in the equities? Around the Block:  Still keeping an eye on Ukraine, as well as China banking. There might be some quite literal weekend risk. 

Option Block 320: Filling Your Britches with Fear   Trading Block: A mild selloff on the street today - a resounding meh! Congrats to Andrew for passing the Series 65 exam! A big day for energy. VXST: Is there any interest there?   Odd Block: Calls trade in Plug Power Inc. (PLUG), calls trade in MeetMe Inc. (MEET), call buyer with stock in Technology SPDR ETF (XLK), and buy-write in Encana Corp. (ECA)   Xpress Block: An update on energy/nat gas trading at OX. A very quiet day; are we in the eye of the storm.   Strategy Block: Uncle Mike Tosaw discusses some things to consider if you want to collect some income while still being long a stock.     Around the Block: Not much on the earnings front. Ukraine. Boeing.

Option Block 319: Why Would Anyone Do That? Trading Block Indexes are at the same level as this morning but the S&P 500 could hit another record close. VIX high on the continuing drama in Ukraine. Staples falls on disappointing quarterly numbers. Federal Reserve data released on Thursday. Ukraine and Nat Gas. Jobless claims Thursday - Nonfarms Friday.  Odd Block Puts trade in James River Coal Company (JRCC), puts trade in CommonWealth REIT (CWH), buy-write traders in MeetMe (MEET) and long close in SPDR KBW Regional Bank ETF (KRE) Xpress Block Alex clears up the confusion caused by the upcoming dividend of the Qs. Soda Stream lit up the tape late in the session. Mail Block Question from J. Charles - My question for the all-star panel is about analytics platforms. I have heard you guys mention a variety of different suites, live LiveVol. I pretty much just use my brokers tools and they work fine for me. I can pull up the options chains, click on the strikes and options I want to trade, click on the option to enter a trade and all that stuff. I can also pull up skews and research. It really does the job for me. What is ti that these other platforms offer you that would be worth paying $200+ a month in extra fees? Sorry but I am no an OX customer - although the show is pulling me in that direction. Hope that does not hurt my chances of being featured on the program. Comment from Bryan Nic - @Options Just pulled up OB on your app. Hundreds of episodes waiting for me. Thats serious streaming goodness. Commute is covered now. Thx. Question from Avent - Bought 50 ZNGA Mar 5 calls for $.17 last month. They are sitting around $.60 now. What should I do - sell? Sell half and let the rest ride? Roll to April 6 calls for $.28? Take the stock and then write covered calls against it? I am still mildly bullish on ZNGA, but worried about a near term correction. Question from Phillip Gregory, Dallas, TX - I like your advice about writing puts to get long stock. But I keep hearing people warning me about gap risk. What exactly are they talking about? Is this something unique to options or are limit stock orders just subject to gap risk?

Option Block 318: The Putin Puts Trading Block: Putin’s show of force in Crimea spooks the street. VIX cash sails back above the 16 handle. Ukraine and Nat Gas craziness. Alex has a story: Trading firm Jump Trading LLC gives $25 million to medical research project. Odd Block: Puts sellers trade in Market Vectors Russia ETF (RSX), calls trade in The Fresh Market Inc. (TFM), cpreads trade in EXACT Sciences Corp. (EXAS), and put buyers trade in JC Penney (JCP)   Xpress Block: The dominate trading at OX today was in metals, crude oil, and nat gas - coffee hit a record high.   Strategy Block: Tosaw reaches out to all the eternal bulls, such as himself     Around the Block: What will Putin do? Is Argentina on the back burner for now? Goldman’s big analyst meeting is tomorrow (3/4). Jobless claims on Thursday, and non-farms on Friday.

Option Block 317: The Old Goldman Bait and Switch Trading Block: A mild rally on the street today. JCPenney on the move, jumping as high as 26%, its greatest one-day percentage gain in least 30 years! Tesla announced on Wednesday its big expansion plans will be partially funded through a $1.6 billion bond issue. Goldman’s investor day study. Odd Block: Call buyers in American Axle and Manufacturing (AXL), both calls and puts trade in CBL & Associates Properties, Inc. (CBL). Xpress Block: Some hedging going on: VIX call buying, SPDR put buying. Customers seem to be getting nervous. Mail Block: The all-stars will take your questions now. Question from Concerned Spreader: I have a question for the mail block on the option block program. I would like to know if there is a special procedure for entering ratio-type spreads on the OX website. Whenever I try to enter any spread trade, from the XSpreads ticket, it always defaults to the same size for each leg. When I try to change that, it gives me a popup saying that each leg must be the same size. I wanted to buy some calls but did not have enough capital in my account to also sell the equal number of puts to finance them. So I wanted to trade what amounted to a risk reversal on a ratio. I tried simply adding a leg to my call trade ticket without success. I tried the combo, straddle, butterfly and condor tabs in the XSpreads ticket also with no luck. I suppose my only alternative is to execute the legs separately and then incur multiple ticket changes. Perhaps OX need to ass a ratio tab to the XSpreads ticket? Please let me know if I am missing something obvious. Question from NTaleb - Why do you think so much options unusual activity is focused on calls instead of puts? There are just as many negative surprises as positive surprises lurking out there. Comment from Chitim - Just used the app to listen to option block during my flight to San Fran. Always had problems streaming your stuff on my HTC One because Android sucks for streaming podcasts. But this worked like a charm! I downloaded it ahead of time and it was ready to go when we took off. Definitely preferable to the inflight movie. Also, why does Andrew always sound so surprised to be on the show? Keep them coming!     Around the Block: There is a disconnect between realized and implied vol. Russian tough talk. SPX closing high…why can’t people accept the market at this level? Is it time to sell S&P? Volatility in the sovereign debt market is astounding.  Astounding!

Option Block 316: The Great Put Roll Down Trading Block: A strong rally on the street. Vol is holding up well despite the rally. SolarCity and Sina today after the bell. Odd Block: Review from 12-30-13: Call buyers trade in Mattel Inc. (MAT). Plus, calls trade in Nvidia Corp. (NVDA), put spreads trade in WisdomTree India Earnings Fund (EPI), put buyers in New York Community Bank, Inc. (NYCB), and put sellers in Infinity Pharmaceuticals Inc. (INFI) Xpress Block: Netflix, Priceline, Tesla all lighting up the tape. Facebook has become the new Lululemon.   Strategy Block: Uncle Mike Tosaw discusses how to protect a put spread.     Around the Block: Mobile World Congress may have big announcements in the mobile space. An update on SolarCity (SCTY). Jobless claims on Thursday.

Option Block 315: The Great Iron Fly Vs. Condor Debate Trading Block: Market up 0.5%, Facebook buys WhatsApp for $19B, and Groupon takes a wild ride after hours Odd Block: Put buying in Veeco Instruments Inc. (VECO), puts trade in iPath S&P 500 VIX Short Term ETP (VXX), put spreads trade in EcoLab Inc. (ECL), and put spreads trade in iShares MSCI Emerging Markets (EEM) ETF. Mail Block: Alex wanted another go at Snowbird's question from last week.   Question from Infimy - What is the ASPs favorite options analytics suite? Comment/Question from Hack3 - Bitcoin imploded after you guys trashed it on Options Block. Coincidence? Question from John King - @Options Could you discuss preference of Iron Fly to regular butterflies, ICs, etc? Always neutral or OK with one side in money? Timing?

Option Block 314: Late-Night Gamma Scalping Trading Block: Catching an updraft on the street today. A decent slate of earnings helped bolster the market.  New Fed Chief didn't completely destroy the market with her first remarks. WSJ writing about someone purchasing 3200 Feb $15 calls in Magic Jack before big newsletter mention. Big day for Apple. Odd Block: Put sellers finance call buyers in Mechel OAO (MTL), and calls trade in E Commerce China Dangdang (DANG). Xpress Block: The classic names were lighting up the OX desk today: Apple, Solar City, Facebook, Tesla, and Priceline. Plus the return of the Ideas Hub game! Mail Block: Mark’s favorite segment. Question from Anath3ma - How are options stops triggered? Bid? Ask? Mid? If ask, am I then filled on the bid costing me the spread? Seems like it could be costly. Question from Snowbird - My friend and I like to by straddles going into earnings, but we often miss a great deal of the move that occurs after the market close. I know you have discussed this in the past by referring to the process known as "gamma scalping." I think I understand how it works - basically trading stock against your options to lock in profits - but I am cloudy on the mechanics. (FYI I am an OX customer). Let’s say I buy a straddle in my account with zero delta (50 delta call and put). Then let’s say the underlying rallies after the close and my straddle now has a 50 delta. I would then need to sell stock against that straddle to lock in my gains, but as far as the OX system is concerned, my straddle closed for the day with a zero delta. Will the system update with after-hours data to reflect the fact that my straddle now has a 50 delta, and if I sell short stock, I am essentially "locking in a profit" as opposed to naked shorting the stock? I suppose the alternative is to simply keep a large amount of free capital in your account on the off chance that you need to trade some stock against your positions in the after-hours, but that seems needlessly wasteful. Perhaps this is why you say "gamma scalping" is not viable for retail? Around the Block: More earnings.   Marriott on 2/19; GRPN, HPQ, and PCLN on 2/20. 

Option Block 313: Yelling at Yellen Trading Block: A rather quiet day on the street. It has been a strange week for vol/VIX. Does this buyback draw a line in the sand at $500 for Apple? Icahn is dropping his call for expanded buyback program after getting little support. BATS is talking about launching a second options exchange after their merger. Bitcoin taking it on the chin since our last show. An exchange stopped taking withdrawals and it is crushing the price.  Odd Block: Puts Trade in iShares MSCI EAFE Index (EFA), puts Trade in ConAgra Foods, Inc. (CAG), calls roll in AuRico Gold Inc. (AUQ), and calls Trade in Boardwalk Pipeline Partners (BWP). Xpress Block: Only two names really generated a lot of paper today: Tesla and Apple. Strategy Block: Uncle Mike discusses gamma combined with a credit spread, a preview of his upcoming webinar.   Around the Block: The last of the earnings: CSCO - 2/12 after, NVDA 2/12 after. Debt ceiling back on the table. First remarks from new Fed chief tomorrow.

Option Block 312: Juicy Buffett Puts Trading Block: Market up 1%. Is the brief correction over?  VIX far below the 20-handle. Twitter taking it on the chin; down 23% off news that subscriber growth is slowing.  Zynga back up in the $4.5 range again. Is it risk reversal time again? Odd Block:  Giant collars go up in Zynga Inc. (ZNGA), puts trade in NuPathe Inc. (PATH), calls trade in Global X Uranium ETF (URA), and giant collar trades in TD Ameritrade Holdings Corp (AMTD) Xpress Block:  Big volume in Yelp, Green Mountain, and Twitter.  More weeklys in the Ideas Hub Mail Block:  Question from Nick Tate - Do you guys think Bit Coin derivatives are on the horizon? Would OX trade it? What would the call skew look like in something like that? Question from Inchon06 - Mr. Mass Destruction sure seems to be pretty happy selling puts. Hypocrisy or just taking advantage of "Buffett Premium"? Around the Block:  Whats left on the earnings horizon? Non-farms ahead. 

Option Block 311: VIX Drops the Ball Trading Block: An aggressive selloff today, S&P off 41 handles, NASDAQ down 107 handles. VIX cash passes the 20-handle.  A weak start to February. Apple and GLD were the lone greens on the screen today. That makes for a happy Tosaw. The OIC announced today that 389,821,135 total options contracts traded in January, the seventh highest monthly volume ever. TTWO earnings after the bell. Odd Block: Collars go up in Two Harbors Investment Corp. (TWO), call buyers trade in Powershares DB Agriculture (DBA), and collars go up in Seattle Genentics, Inc. (SGEN) Xpress Block: A difficult day at the OX desk. All hands on deck after the opening selloff. Strategy Block: Uncle Mike Tosaw expands on his discussion on rolling down puts. Around the Block: More Earnings-palooza: CME 2-4 before; RDN 2-5 before; DIS & TWTR 2-5 after; GM, LNKD, and ZNGA 2-6; CBOE 2-7.

Option Block 310: GOOG After Hours Mania Trading Block: The “Correction” is over. Earnings Trading Review: GOOG and CME after the bell. FB - ATM straddle went out around $6, traded nearly $3 through that today. F - Announces "best year ever" but closes nearly unchanged on the day. APPL - That $460 put is not looking so outlandish now.  Odd Block: Puts sales trade in Kellogg Company (K), puts buyers trade in Newell Rubbermaid Inc. (NWL), and puts sellers and buyers trade in Overstock.com, Inc (OSTK) Xpress Block: A big day at OX, driven by all the earnings events. Perplexed by Google. Mail Block: Question from C_Dog - What is a scenario where you would consider a ratio vertical spread (1x2, 1x3) going into earnings? Comment from Go Husky - I only trade options around earnings. Am I crazy? Around the Block: A quick update on Amazon, Google and Chipotle. Upcoming earnings: DIS 2-5, GM 2-6, LNKD 2-6, CME 2-4, ZNGA 2-6, TWTR 2-5

Option Block 309: The Big AAPL Earnings Show Trading Block: Markets reverse most of today’s slide late in the session. Lots of index volatility, but not many buyers. VIX coming off later in the session. Big Apple earnings after the bell, and right in Tosaw’s crosshairs. The International Securities Exchange (ISE) has not appealed a federal court decision that rejected ISE's attempt in the New York courts to challenge S&P Dow Jones Indices’ (SPDJI) rights to control the use of the S&P 500 and the Dow Jones Industrial Average as the basis of index options. Odd Block: Puts trade in iShares MSCI Emerging Markets ETF (EEM), calls trade in Time Warner Inc. (TWX), and calls trade in Mechel OAO (MTL) Xpress Block: Nat Gas and the 10-year very busy on the desk. Apple, MasterCard, Caterpillar, F5 Networks and VIX also very active. Strategy Block: It’s fruit day! Tosaw also discusses his current position in the Russell. Around the Block: Apple update, Fed meeting, and President Obama’s State of the Union address.

Option Block 308: The Scale from Smart to Cowboy Trading Block: An aggressive selloff sparked by weak existing home sales.  VIX cash back in the mid-teens. Microsoft after the bell. Netflix tearing it up. Odd Block: Call buyers in Flagstar Bancorp, Inc. (FBC), closing put buys in Royal Bank of Scotland Group (RBS), calls trade in YPF SA (ADR), calls buyers trade in AVG Technologies N.V. (AVG). Xpress Block: Alex gets on a soapbox to discuss tax reporting season and understanding how margin works. Netflix, Apple, and Herbalife.   Mail Block: Question from John King: @Options Any comments on this style of option trading: smart, cowboy, or in between? Around the Block: Google, Chipotle, and Amazon: 1/30 after; Facebook 1/29 after; Ford 1/28 before; EA 1/28 after; Apple 1/27 after. 

Option Block 307: Idiotic Upside Calls Trading Block: A mild selloff early in the session. SPX weeklies up 98% in 2013. SPX & VIX options hopefully getting extended hours in 2014. Best buy taking in on the chin after a poor holiday season. Chuck E. Cheese is worth a billion! Odd Block: Calls trade in Eldorado Gold Corp. (EGO), calls trade in Amarin Corporation (AMRN), and calls trade in Insmed Incorporated (INSM) Xpress Block: Intel, Best Buy, and DR Horton were popular on the OX desk today. Mail Block: Keep those questions rolling in! Comment from Shane Hamilton: Only on the Option Block does Andrew toss around words like "bereft". #alteredstate Trading resolution from Britt Dowd: To finish building my foundation so that I can finally focus on trading options. Follow up from Richard: Regarding Jack's question, would these have to be put based front spreads since you'll ultimately have net uncovered short positions? I didn't think naked calls, as you would have in a front spread, would be eligible for use in retirement accounts? Thanks. Regard this question from Jack: I know you guys are not tax advisors, and so nothing you say can be taken as certain in any answer to this question.  I am a small time trader, and at the moment cannot afford a CPA with trading expertise in options to do my taxes.  So I am wondering if you can talk about the potential tax consequences of front spreads, especially when used as covered call replacement.  I've had good success with this strategy, and I would like to move it into my margin account this year, instead of just using it in the IRA to avoid the tax headache. Question from Luke Davis: Mark, in show 302, you said in answer to a listener question that using a six month or one year LEAP was good for a stock replacement strategy. Is there any reason you wouldn't go further out than that? For example, I am currently using this on Microsoft and Ford, but with the Jan 2016 ITM calls. Keep up the informative and entertaining shows, and happy New Year!