Option Block 192: Earnings Palooza

Trading Block: GOOG earnings announced early, although no one is sure why. Today is an earnings-palooza: AMD, LUV, MSFT, NOK, VZ all after the bell.

Odd Block: Is McGraw-Hill Topped Out? (MHP); puts rolled on Sprint Nextel (S); volatility purchased on Hertz Global (HTZ).

The Mail Block: You ask. We answer.

• EMAIL FROM TED, WASHINGTON: “I know you guys have touched on this a long time ago, but I can’t find the episode and I’m not sure if there was ever an answer. My question is - how do you execute a ratio spread using Xtend? I’ve been trying all morning to execute a simple 1x2 put spread (buy 1, sell 2) all morning, yet when i select put spread from the Xtend dropdown menu in the order ticket, it defaults to having the legs be the same size. Whenever I try to change the size of one leg, it automatically adjusts the other. None of the other selections in the dropdown seem to work and I don’t see a selection for “ratio spread.” Is there a way to do this? If not, can ox please add a dropdown for ratio spreads in Xtend. Thanks. Been a fan of the show since it launched and an ox customer for about a year, mostly because of this show.

• RELATED EMAIL QUESTION FROM FINN: I know Mark L. loves iron butterflies. How do I trade those using Xtend? I don’t see an option for those in the trade ticket?

• EMAIL FROM Todd in MN: Hi guys, love you, love the show... A question for the listener mail segment-- I'd be honored if you read it. What's the most effective way for a retail investor to hedge an x% decline in the overall market? Some guesses:

1. - buy a back month vertical put spread or single long put on $SPY and let simmer?
2. - buy a vertical call spread on $VIX and manage it closely?
3. - C) none of the above?

Xpress Block: Trading picks up in VIX. Sebastian pontificates.

Around the Block: Earnings. Earnings. Earnings. FB, NFLX, ZNGA, and AMZN coming up.

Option Block 192: Earnings Palooza

Trading Block: GOOG earnings announced early, although no one is sure why. Today is an earnings-palooza: AMD, LUV, MSFT, NOK, VZ all after the bell.

Odd Block: Is McGraw-Hill Topped Out? (MHP); puts rolled on Sprint Nextel (S); volatility purchased on Hertz Global (HTZ).

The Mail Block: You ask. We answer.

• EMAIL FROM TED, WASHINGTON: “I know you guys have touched on this a long time ago, but I can’t find the episode and I’m not sure if there was ever an answer. My question is - how do you execute a ratio spread using Xtend? I’ve been trying all morning to execute a simple 1x2 put spread (buy 1, sell 2) all morning, yet when i select put spread from the Xtend dropdown menu in the order ticket, it defaults to having the legs be the same size. Whenever I try to change the size of one leg, it automatically adjusts the other. None of the other selections in the dropdown seem to work and I don’t see a selection for “ratio spread.” Is there a way to do this? If not, can ox please add a dropdown for ratio spreads in Xtend. Thanks. Been a fan of the show since it launched and an ox customer for about a year, mostly because of this show.

• RELATED EMAIL QUESTION FROM FINN: I know Mark L. loves iron butterflies. How do I trade those using Xtend? I don’t see an option for those in the trade ticket?

• EMAIL FROM Todd in MN: Hi guys, love you, love the show... A question for the listener mail segment-- I'd be honored if you read it. What's the most effective way for a retail investor to hedge an x% decline in the overall market? Some guesses:

1. - buy a back month vertical put spread or single long put on $SPY and let simmer?
2. - buy a vertical call spread on $VIX and manage it closely?
3. - C) none of the above?

Xpress Block: Trading picks up in VIX. Sebastian pontificates.

Around the Block: Earnings. Earnings. Earnings. FB, NFLX, ZNGA, and AMZN coming up.

TRADING BLOCK

Vol Rundown - Vix came in today, as expected given Vol inflation on Friday and today's rally. Nobel Prize for economics announced today - Alvin Roth won. Citi and Chipotle reporting earnings today.

ODD BLOCK

Calls Active as Two Harbors Crashes (TWO)

Protection Purchased on the Healthcare Select SPDR (XLV)

Calendar Spread Trades on Wells Fargo (WFC)

INTERVIEW BLOCK

Today's guest: Kevin Davitt - KYO Futures Broker. Equities, ratio spreads, and upcoming webinars.

AROUND THE BLOCK

Earnings Palooza - Southwest, Nokia, Microsoft, Verizon, AMD, Google - 10/18. Election Vol looming on the horizon.

Option Block 190: Getting Out of AAPLTrading Block: Another 0.0% move for the S&P today. Zynga was crushed again this week, and closing today at $2.43 as it takes a massive write-down on the OMG Pop acquisition. It also manages to bring Facebook down with it. Corn up 5% after U.S. harvest forecast slashed. Apple closing down about 13 handles or 2% to $628.10.Odd Block: Upside calls active on Auxilium Pharma (AUXL); will Advanced Micro Devices Earnings surprise next week (AMD)?Xpress Block: Sean Fitzgerald is back in the OX hot seat today, and discusses recent and interesting trades. Sprint, Wells Fargo and a bunch of earnings plays. Around the Block: Earnings-Palooza: Southwest Airlines, Nokia, Microsoft, Verizon, AMD, Google, Bank of America, and Citi.

Option Block 189: Iron Condors and Big Trends

Trading Block: Apple down about 2.5%. When might we see the minis? Groupon finally goes to the plus side. Is it time to abandon ship? Non-farms better than expected.

Odd Block: Huge three-way put spread trades on Consol Energy (CNX); options action surges as Vringo pops (VRNG).

Xpress Block: John Grigus takes the hot seat and discusses the many spin-offs of Sears holdings.

Interview Block: Featuring Big Trends’ Price Headley

• Price gives an overview of what Big Trends does
• What he is currently seeing in the market
• Why is he such a fan of iron condors?
• What levels would be too low for him?
• He also gives a quick preview of the webinar tonight for KYO.

Around the Block: Earnings season again! Alcoa kicks it off tomorrow. Vice Presidential debate upcoming.

Option Block 188: Diversify. Diversify. Diversify

Trading Block: The market's reaction to Wednesday night's Presidential debate. Review from the Morning Star conference. (Spoiler: Options exposure and education is still significantly lacking.) HPQ, SLV & GLD, ACT.

Odd Block: Upside purchased in Sachs (SKS); calls active as Dell pushes to new lows (DELL)

Xpress Block: New-comer Dave Vitamonis gets the OX hot seat today and discusses interesting trades and size orders that came across the desk. The metals market is heating up.

Stragegy Block: Uncle Mike Tosaw discusses diversification and mutual funds.

Around the Block: Non-Farms tomorrow, a big event. Apple earnings 10/25.

Option Block 187: It’s That Time of the Month

Trading Block: VIX cash getting some weekend love back. Monthly volume numbers are in, and according to ISE, dividend trades made up 8.8% of industry volume in September 2012. Apple closing down 1%. Will Uncle Mike ever get out? Groupon = garbage? Premium selling candidate? Risk reversals? Is Activision lining up for more bullish risk reversals? Ford is hovering at the 10-handle. How do you position RIMM from here?

Odd Block: Is FLIR Systems (FLIR) ready to pop 11%; puts sold on Celldex Therapeutics (CLDX), and; short-term protection purchased on Wells Fargo (WFC).

Xpress Block: John Girgus takes the reins in the Xpress Block and talks about what came across the OX desk today. Weekly options coming out soon. Approval passed for mini weekly options.

Listener Mail: The inmates are running the asylum.

• Email from Ejay Singh, Mumbai, India “I appreciated your discussion of early dividend exercise on the last show. You mentioned the dividend and assignment risk on Spy, but does this also apply to SPX? Thanks very much for a fantastic options program. You guys really are unique in the world of options, and if Mark ‘Voice of Options’ Longo ever wants to do a radio show or an options presentation here in India, I'd be happy to help arrange it. You have a large audience around here.”
• Comment from Thompson on Dividend Trade Bungle. “This guy was a serious idiot. How could you do a trade like this without even knowing how to properly execute the dividend trade? How can the exchanges continue to allow this behavior? Aren't errors like this just feeding into the belief that options are a risky, and highly-rigged, game? It's absurd!”

Around the Block: Non-farms, probably the largest event coming up on the horizon. Marriott earnings on 10/3, Family Dollar 10/2, Monsanto 10/3. Keeping on eye on Europe.

Option Block 186: RIMM Time Spreads and SPY Dividends

Trading Block: A broad rally, thanks to Spain's spending cuts. RIMM earnings after the bell. It closed today at $7.14. Mark ponders the weekly/Oct 6-7-8 iron fly. Jobless claims hit a two-month low.

Odd Block: Implied volatility mover in Regions Financial (RF); volume signals in Deckers Outdoors (DECK), and; Coca Cola Enterprises (CCE). Love piling in for some size in Yahoo!, Inc. (YHOO), and a lot of call love in Medtronic, Inc. (MDT).

Strategy Block: Given last week's debacle with the SPY dividend play, when do you exercise a call to capture a dividend?

Around the Block: RIMM earnings summary. It was almost up to $8.50 in the after-hours. Looking ahead to the weekend. Apple. Non-farms payroll numbers 10/5. The market's reaction to the upcoming presidential debates and election.

Option Block 185: Dividend Trade Blowup

Trading Block: VIX getting some of the weekend back courtesy of some selloff love. It's been a while since we've have a 1% down day. A big whoops with dividend trades for Merrill Lynch occurred Friday. Facebook taking it on the chin - down about 9%. Apple closing today down about 1.5%.

Odd Block: Some significant size going up in XLF; Oct 100 puts going up before earnings in Factset Research Systems Inc. (FDS), and; it’s off to the upside races in Proctor & Gamble (PG).

Xpress Block: John Grigus takes the OX hot seat today. A slow day on the desk, but Apple was the hottest topic. Closing out and dividend risk.

Around the Block: Initial claims and new home sales this week. Nike and RIMM earnings 9/24.

Option Block 184: BNNY vs. FB vs. GRPNTrading Block: A mild selloff and a mild VIX rally, yet another 0.0% day! Groupon the only green on the screen. At last, Grigus is rolling in dough! BNNY blows FB out of the water.Odd Block: Calls active as Dollar Tree pops (DLTR); J.C. Penney craters resulting in unusual puts activity (JCP), and; a quick review on Jefferies Group, Inc. (JEF). Xpress Block: Sean Fitzgerald gets the OX hot seat today, and rolls through his list of interesting activity and notable trades. Know your dividends! Jobless claims ignored, and down. Listener Mail: Letting the listeners take over.

• When are they going start the option mini's. I trade Apple and can only trade two contracts. Also premarket options?
• Even the option guys are talking about FB, is that good or that bad?
• Buying $EWZ CALLS Oct 57s $1.40. Do not ignore. Or ignore, that's fine too. Groupon Oct 6 calls for $.20 - or Oct 4.5 puts for $.20 - pick your poison.
• I don't know how it's possible for someone to call themselves a money manager without knowing multiple ways to manage money. Mark, was this buy-side guy not familiar with the concept of cost basis when he decided to just dump the stock rather than buy a put?

Around the Block: Tomorrow looking like another slow day. The gang is keeping an eye on potential movement in the next few weeks. Take this slow time to visit the new features available at TheOptionsInsider.com

Option Block 183: Bernanke PutsTrading Block: Most of the major indices giving back some of the QE3 love, after an abnormally odd Friday. QE3: good, bad or ugly? A rundown from the options conference last week. Is Grigus still on the Groupon love train?Option Block: Shares of Linn Energy (LINE) are trading low; traders look for increased vol on Pan American Silver Corp. (PAAS), and; LEAPS calls active on IAMGOLD (IAG).Xpress Block: John Grigus gets in OX hot seat to talk about what's been coming across the desk today. Crude oil had over 13,000 contracts go up in less than a minute. Grains also lighting up the tape.Around the Block: Post-QE3 and post-Apple malaise? When will the next shoe drop? Home sales on the 19th. Oracle and AutoZone earnings also on the 19th.