Option Block 210: New Year, No Volatility

Trading Block: It’s the first episode of 2013! The world hasn't ended, since the heroes in Congress once again settled on a deal. Volatility update.

Odd Block: Takeover talks spur call trading in Zipcar (ZIP), and a large VXX put spread trades.

Xpress Block: Earnings season begins next week with Alcoa on 1/8.

Strategy Block: Mike Tosaw expands upon volatility, using VIX as a weather vane, and selling puts, all wrapped within a well-told story.

Mail Block: Question from Chandra B - Natick, MA: Hey Mark, I love the Radio show...I find myself wanting the next show because I something new every episode. My question is: How should a trader handle stop losses on a naked call/put and/or a vertical spread. When should you call it quits? IBD mentions 8% for stocks, but what is the level for options? Thanks.

Around the Block: How low can vol go? Earnings next week, how big could they be?