The Option Block

Option Block 198: Sex Scandals and Star WarsTrading Block: All three major indices unchanged at 0. Mild vol selloff, following a mild rally after post-election selloff. CIA head forced out following a fantastically crazy scandal. Odd Block: Unusual activity in Titanium Metals Corp. (TIE); bullish options are in play on drug maker Eli Lilly and Co. (LLY); unusual activity in Flagstar Bancorp, Inc. (FBC).Xpress Block: John Grigus is on the OX hot seat today. What's he still doing in Groupon?Strategy Block: Uncle Mike Tosaw discusses collars and understanding the Greeks.Around the Block: Cisco earnings tomorrow after the close. Cosi and Dell: 11/15, Hot Topic: 11/14. Disney's bullish future following the purchase of Lucasfilm. Looking ahead to Black Friday.

Option Block 197: Driving Towards the Fiscal CliffTrading Block: Markets down following presidential election. What can we attribute this to? There is strength in inelastic demand, inflation sensitive assets like GLD, corn, soybeans and wheat.

Interview Block: Newcomer David Peltier, Portfolio Manager for TheStreet.com’s Stocks Under 10, gets his own segment to let our listeners get to know him and Stocks Under 10 a little better. Odd Block: Harmony Gold (HMY): a customer sold about 6,500 Jan 13 10 calls at $0.20; Exco Resources Inc. (XCO): a customer bought Dec 7 and Dec 8 calls, in a "call stupid,” and; Gerdau SA (GGB): a customer bought a chunk of Jun 2013 - 5,100 9 and 2,000 8 puts.Around the Block: No really big economic events are in our near horizon with earnings season and the elections near an end. How will things play out in the market with the "fiscal cliff" looming ahead?

Option Block 196: Election EditionTrading Block: The market took off once early polling results came in, a broad-based rally across most of the market. Vol came in after being out most of the morning.Odd Block: 30,000 contracts trade on the VIX Nov16 put.Xpress Block: John Grigus gets the OX hot seat today to discuss VIX, recent highs in volume and the ex dividend date for Apple. Mail Bag: Via email from Sigmund Fraud:I have a 401k that's invested in the S&P. What's the best way to hedge it [outside of the 401k] from downside risk? Would beta-weighting with SDS be a good hedge or is there a better way? Also, I've heard the terms "hitting offers, lifting bids" (I hope I got that right), what does that mean?Strategy Block: Andrew discusses back spreading the VIX and how it is the cleanest way to play a change in implied volatility in the indexes. Around the Block: All eyes will be focused on the U.S. Presidential election.

Option Block 195: Post-Hurricane Sandy Edition

Trading Block: The market reopens Wednesday after closing for two days due to Hurricane Sandy. Apple opens nearly unched, some long premium holders ended up alright. Vol has been coming in hard. How was the NYSE not prepared for a disaster such as a hurricane?

Odd Block: Straddle sold on Take 2 Interactive Software (TTWO).

Xpress Block: Dave Vitamonis gets the OX hot seat for today's show and discusses using an iron condor, instead of an iron butterfly.

Strategy Block: Mike Tosaw discusses risk management and when you should use a point A to point B type of risk management.

Around the Block: Watching the vol crush and Non-farms tomorrow. LinkedIn and Amazon.

Option Block 194: The Great AAPL Death KnellTrading Block: The great Apple death knell? Tosaw is out! A momentous decision. Amazon and Apple earnings after the close. Facebook earnings earlier this week. Odd Block: Volatility plays heat up on KLA-Tencor (KLAC). Xpress Block: Sean Fitzgerald gets the OX hot seat and discusses today's action on the desk. Russell credit spreads, GLD, and Zynga. Strategy Block: Mike Tosaw discusses his new stock, Chevron, and the interesting trade he made.Around the Block: Keeping an eye on Apple and Amazon after hours. GDP, Non-Farms and more earnings next week. Tosaw will now sleep for a few weeks.

Option Block 193: Post-Earnings Selloff & Turnaround

Trading Block: Post-earnings selloff continues, but then we saw a dramatic turnaround late in the day. Iron flies on Microsoft post-earnings.

Odd Block: Large call spread purchased on MGIC Investment Corporation (MTG); calls bought on Eli Lilly (LLY).

Xpress Block: John Grigus gets the OX hot seat today and discusses Bank of America, new tech products, including the iPad mini, and the Samsung ChromeBook.

Around the Block: Looking forward to earnings: Facebook 10/23, Zynga 10/24, Amazon 10/25, Apple 10/25, Netflix 10/23.

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.