Option Block 376: Rebar and Rapeseed - the Stealth Titans

Trading Block: Another selloff - pulling ever farther away from the 2000 level. VIX Cash moving into the high teens. OCC announced today that total cleared contract volume in September reached 371,034,038 contracts. It’s time for the global futures and options guessing game!

Odd Block: Calls trade in RF Micro Devices (RFMD), puts roll in SPDR S&P Oil and Gas Exploration ETF (XOP), and calls roll down in Toll Brothers Inc. (TOL)

Mail Block: Listener questions and comments

• Question from DCruz - Hello All-Stars. You said on the show last week that you guys never exercise you long options except for a few very rare occasions. I would imagine that is the same for most options traders. That make me wonder whether they should just make all options European. Does that not more accurately reflect the reality of the market? And can you ask Tosaw if he can share his tale of pain with Cisco - it might be a good learning experience for the rest of us.
• Question from Anon - On several of your programs you mention that it is important to understand the VIX Cash level at a given SPX level. Can you please explain this further? As an example, what are the implications of a 12 VIX at 1800 VS a 9 VIX at 1800? Likewise, how does a 15 VIX at 1800 compare?

Around The Block: Non-farms coming out tomorrow - could be a resounding "meh."