Option Block 187: It’s That Time of the Month

Trading Block: VIX cash getting some weekend love back. Monthly volume numbers are in, and according to ISE, dividend trades made up 8.8% of industry volume in September 2012. Apple closing down 1%. Will Uncle Mike ever get out? Groupon = garbage? Premium selling candidate? Risk reversals? Is Activision lining up for more bullish risk reversals? Ford is hovering at the 10-handle. How do you position RIMM from here?

Odd Block: Is FLIR Systems (FLIR) ready to pop 11%; puts sold on Celldex Therapeutics (CLDX), and; short-term protection purchased on Wells Fargo (WFC).

Xpress Block: John Girgus takes the reins in the Xpress Block and talks about what came across the OX desk today. Weekly options coming out soon. Approval passed for mini weekly options.

Listener Mail: The inmates are running the asylum.

• Email from Ejay Singh, Mumbai, India “I appreciated your discussion of early dividend exercise on the last show. You mentioned the dividend and assignment risk on Spy, but does this also apply to SPX? Thanks very much for a fantastic options program. You guys really are unique in the world of options, and if Mark ‘Voice of Options’ Longo ever wants to do a radio show or an options presentation here in India, I'd be happy to help arrange it. You have a large audience around here.”
• Comment from Thompson on Dividend Trade Bungle. “This guy was a serious idiot. How could you do a trade like this without even knowing how to properly execute the dividend trade? How can the exchanges continue to allow this behavior? Aren't errors like this just feeding into the belief that options are a risky, and highly-rigged, game? It's absurd!”

Around the Block: Non-farms, probably the largest event coming up on the horizon. Marriott earnings on 10/3, Family Dollar 10/2, Monsanto 10/3. Keeping on eye on Europe.