Trading Block: Earnings!

• Friday - Foot Locker
• Best Buy reaffirms guidance - renews concerns about the inroads of Amazon.
• Monday review: Intuit - 191.30, ATM straddle: 11, approx.7%
• Gap Inc. (GPS) - 33, ATM straddle: 2.60, approx. 8%
• Netlifx vs. Disney - Who will come out ahead in the long run?

Odd Block: Big selloff in Petroleo Brasil (PBR). Size opening risk reversal in iShares JPMorgan USD (EMB). Call buyer giving up the ghost in Deutsche Bank AG (DB).

Mail Block: Options question of the week

Holiday Weekends are notoriously tough for VIX traders. The markets love to crush Volatility going into these events. So we thought we'd poll the savvy VIX traders in our audience - where do you think VIX will OPEN on Tues 5/29?

• Here: 12-14
• Higher: 14-16
• Lower: 10.5-12
• Much Higher: >16

Listener questions and comments:

• Question from Scott Somer - When doing earnings trades do you ALWAYS default to nearest Friday expiration.
• Question from Charlotte - How about that move in WWE? You buying calls like crazy?
• Question from Justin - I know you guys hate cheapie options trading but your comments about HMNY got me thinking. I could sell the June ½ straddle for about .25. If I could do that again in July then in two months I could have the stock almost for free. A free stock is even better than a cheap stock.
• Question from LTTW - HMNY AUG .5 strad is currently around .25-.30. I agree it makes no sense to buy that when the stock is .46 but I'm liking selling this straddle to get the stock for .16 by Aug exp. Maybe even work a .01 or .05 bid for some 1 calls further out on a ratio in case stock recovers aggressively?

Around the Block/Economic Reports:

• May 25 - Durable Goods, Consumer Sentiment

If you are interested in what the Federal Reserve has to say or has been saying, this is the week for you. Not only are the notes from the last meeting going to be released on Wednesday, several Fed presidents will be talking this week including three on Monday and on Friday.