Option Block 218: Do Not Pay for Juice

Trading Block: Selloff keeps some life in the VIX cash. Profit taking, and rumbles out of Spain, weigh on the market. Facebook down 5%. Apple down 2%.

Odd Block: Puts trade in Dell Inc. (DELL), a massive 1x2 Call Spread Trades in Delphi Automotive PLC (DLPH), time spreads trade in Bruker BioSciences Corp. (BRKR), and calls trade in Questar Corp. (STR).

Xpress Block: Alex Jacobson discusses GLD volatility, SPX PM, and premiums. Of 256 companies reporting earning so far, 68.4% have beat estimates compared with a 62% average since 1994.

Mail Block: Let the All-Stars answer your questions.

• Question from Alessandro - What does the all-star panel think of a long Ford 11-12 1x2 put spread for $.05?
• Question from Bob G. - Do you guys prefer to go into earnings long or short volatility?
• Question from Tony O. - Hey Uncle Mike, I’d like your opinion on going long the GLD March 155-168 bullish risk reversal for approximately even money? Or would you prefer to add a short 172 call kicker and collect about $.30?
• Question from Mr. Mikey - Does the OX Idea Hub take into account changes in open interest when highlighting trading idea?

Around the Block: Earnings! Activision on 2/7 after the close, Chipotle on 2/5 after the close, CBOE 2/8 before the open. Plus, CBOE stock has been on a serious tear since ICE/NYSE merger announcement.