Option Block 261: NFLX Strangles Children

Trading Block: Netflix earnings are after the bell. Could it be the return of the widow-maker? McDonald's down 3%. It’s never a good sign for the economy when McD can't make money. A follow-up on our good discussion on after-hours options trading from our last show. Is 3pm still reasonable?

Odd Block: Call ratios trade in Skechers USA Inc. (SKX), calls trade in Verisign Inc. (VRSN), puts sold on the World Acceptance Corp. (WRLD), and call sellers in General Growth Properties (GGP).

Xpress Block: Metals and oil predominately featured on the desk today.

Mail Block: The all stars channel their inner therapists, and Obi Wan

• Question from Doc Robbins. I just sold NFLX 240 260/280 July week 4 iron fly at $18 with stock at 259. Am I crazy? Longo would be proud.
• Question from Charles N. I’m looking at Ford July W 16.5-17.5 strangle for $.25. How's that for free gamma pre-earnings?
• Question from Mr_Work. Am I crazy, or is $.21 for Zynga July weekly 3.5 puts a lousy deal
• Question from George Winters. Microsoft July 35-34 put 1x2 for $.10 before earnings: winner or waste of money?
• Question from Joe Rigg. I tried to write the Blackberry weekly 9 put with OX, but the system kicked it out and said BBRY was now on increased margin. Why is that? How is this decided? Is it a decision by the broker or an industry wide decision? How is the new margin level determined? Help me Viceroy, you're my only hope!

Around the Block: Earnings, Earnings, Earnings! Ford 7/24 before, Facebook 7/24 after, Electronic Arts 7/23 after, Amazon 7/25 after, Apple - 7/23, United Airlines 7/25 before, Zynga 7/24 after.