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how are first-time regular dividends treated with options?
Hi, how does first time dividends effect the options price? - i.e what if apple did $3 a NEW quart...
Would you short the VIX at these levels?
"I know you guys like to speak from a realized volatility perspective. So when you look at the ...
List of Brokers That Allow Portfolio Margining
Actually, you would be surprised at how many big name brokers do not offer portfolio margin. I comp...

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Option Block 125: When Squishy Becomes a Technical Term

Trading Block: Is it too risky to actively short volatility in this environment? Andrew thinks that, from a volatility point of view, all things are pointing in the same direction. Earnings plays. What's the deal with Amazon? Chipotle, or stealth Apple, is nothing but classy. Andrew gives taqueria recommendations in San Francisco. All is right in the world, so it's time to buy stocks. Odd Block: Unusual activity in Zynga, Inc., Facebook is spreading the love. Xpress Block: John Grigus discusses the IPO process, and the confusion around when the stock will actually trade. Tax season updates on 1099's. Around the Block: Non-farms payrolls released on Friday before the open. Andrew suggests an ADP indicator. Earnings still coming out: Activision, CBOE, CSCO, Groupon. Read >

Option Block 124: Confessions of a Juice Buying Junkie

Trading Block: It was a calm day in volatility, given that it has been beaten up recently. What effect does Greece's financial woes has on our market anymore? The precious Metals market pulls back, affected by China. The yellow Wiggle is out: Australia is in turmoil! The biggest kids brand is in the toilet, sold Wiggles sold!!! Scalping tech Vol. Odd Block: Unusual activity in Pfizer Inc. (PFE), Cell Therapeutics Inc. (CTIC) (an odd block special!), and RenRen Inc. (RENN). It looks like Facebook love is spreading to RENN. Mail Bag: The weekly butterfly risk and reward Around the Block: Earnings: Amazon coming out after the close tomorrow. Numbers: Non-Farms on Friday, this week we might see some numbers pop. Read >

Option Block 123: Like a Virgin

Trading Block: Apple blows the doors off earnings again – long premium going into earnings was the way to play it. JC Penney up $6.50 today, but is it best to still keep a short position? Netflix on the comeback trail? Odd Block: Unusual activity in Deutsche Bank AG (DB) and DeVry Inc. (DV). Xpress Block: Tim Navabi breaks down the recent activity at OX. Have the recent round of earnings and a move to the upside started to lure back degenerate premium sellers back to Netflix? Have people continued to dive back into the short end of Google? Strategy Block: In this rare opportunity, Mark Sebastian takes over the strategy block to discuss what he thinks about the VIX. Around the Block: Keeping an eye on Ford and Apple - again. Very interesting to see oil still around the 100 mark - gold and silver are also moving. Earnings: Jan 31 - Amazon, Feb 1 - Chipotle (stealth Apple), Exxon Mobile & UPS - next week. Read >

Option Block 122: Option Block After Dark

Trading Block: Greek debt swap is keeping the market in neutral. S&P and VIX both up today, but overall a slow trading day. Natural gas and Google are both gathering interest among traders. It is an interesting time to looking at long premium. Odd Block: Usual activity in Melco Entertainment (MPEL), Alexza Pharmaceuticals (ALXA), and Ingersoll Rand (IR). Xpress Block: Tim Navabi discusses the most recent strike of the widowmaker, Google, and some of the calls received by customers last Friday, unhappy with their positions. Around the Block: Big earnings tomorrow! Apple, AMD, and Ford to name a few of the biggest. How much more can Apple rally on earnings? Ford, a wheel of fun candidate, is not risky enough for a collar. Read >

Option Block 121: Degenerate Options Traders

Trading Block: Ho hum day on the street, but VIX makes it below 20 after much dancing in the area. Looking at a sleepy creep up of the general markets and for a dedicated selling of volatility. Uncle Mike's patience has paid off in Ford. Mark rolls in the Wheel of Fun. The gang fixes the issues with weeklys, but are the exchanges listening? Playing around in earnings season. Kodak throws in the towel and declares bankruptcy. Odd Block: Unusual activity in Safeway, Inc. (SWY). Strategy Block: Uncle Mike takes us through win-loss ratios. High probability does not equal guaranteed money. Premium selling is not an annuity; you still have to prepare for risk. Around the Block: Earnings dominating the horizon. Read >

Option Block 120: Doin' Stuff

Trading Block: Another mild day on the market. Metals/Commodities rundown - GLD up a bit, but not much. Premium on the VIX futures is getting crushed. Corn and grains limit down after a USDA report this morning rocked the market. Odd Block: Unusual activity in Newell Rubbermaid, Inc. (NWL) and Research in Motion (RIMM). Xpress Block: Rob Kurzatkowski commands the OX desk today and discusses the ags from CME and Globex, limits and what you need to know before trading following reports. Strategy Block: Andrew Giovanazzi runs the strategy block and talks about doing stuff after trading Zenga and XLF. Around the Block: Earnings outlook: Goldman Sachs, Citi - 1/18, Intel - 1/19, as well as Apple - 1/24. Will we push through the 1300-level, or will it act as a level of resistance? Next Wednesday is VIX expiration for the Jan contracts. Read >

Option Block 119: The Fanboy Piggyback

Trading Block: Another mild day on the street. Apple hits a new high ahead of earnings, riding high on iPad 3 rumors. Apple's new high comes in spite of the fact that Android finally eclipsed IOS in the mobile market over the holidays. Netflix was up 14% today despite opting out of ultraviolet program. Is the widowmaker back? Nuance, perhaps a stealth play going into CES. Odd Block: Unusual activity in Perfect World Co., Ltd. (PWRD). Xpress Block: John Grigus runs the OX desk this week and discusses year-end topics, such as closing out worthless securities and most importantly, taxes. Listener Questions: Option margin Around the Block: Biotech and pharmaceutical stocks are lighting up the screens. Kodak closed and $0.40. What is their future? Looking forward to Alcoa. Lots of earnings and retail sales coming up. Read >

Option Block 118: Buying Cheapy Premium

Trading Block: Market mostly unchanged today. Vol off modestly - a decent day for gamma scalping in the VIX. Jobless claims modestly lower - the market shrugged it off. A Metals/Commodities rundown. Apple on a little bit of a tear which has rallied since mid-December, augmented by a lot of attention with the CES next week. A quick discussion of butterfly and iron butterfly positions. Odd Block: Unusual activity in Barnes & Noble, Inc. (BKS) and Fossil, Inc. (FOSL). Xpress Block: Tim Navabi discusses the recent surge in costumers buying risk, with Bank of America being the most popular. Around the Block: CES on the horizon and will impact the volatility of many tech stocks - be on the lookout for the next Nvidia, which rallied 50% in the weeks following CES last year. Where will oil go now that it's above 100? Read >

The Advisors Option Episode Two: Playing Defense with Protective Puts

Sometimes the market doesn't work in your client's favor. This episode explores the ways that protective puts can insulate your clients from the dramatic swings of the marketplace. Read >

Option Block 117: 2011 Year in Review

The Option Block all stars look back on trends, headlines, and crazy trades from 2011, as well as look forward to what might happen in 2012 Read >

Option Block 116: Holiday Volatility Sale

Trading Block: A weak rally going into the holiday -- not too much going down on the street except for the continued annihilation of volatility. GLD and GVX ended the year down. Not much movement otherwise given the time of year. Odd Block: A look back at some usual activity from the past, including GLD and Darden Restaurants, Inc. (DRI). Xpress Block: Rob K talks about straddles and strangles given the fact that volatility has been crushed lately. Around the Block: The bulk of the holiday weekend has already come out. Have a happy holiday! Read >

Option Block 115: Scooping Cheap Volatility

Trading Block: A volatility/VIX rundown -- it's up, it's down, it's in lockstep with the market, it does its own thing. It's VIX madness. Zenga, a new tech name to hit the market -- can it follow in the footsteps of Linkedin, Groupon, Angie's List or the other 2011 tech bubble names? A Metals/commodity rundown Odd Block: Unusual activity in Norfolk Southern Corp. (NSC), St. Jude Medical, Inc. (STJ), and an Odd Block review from 10/27 on Hecla Mining Co. (HL). Xpress Block: Tim Navabi discusses the busy Friday expiration, taking calls from customers about deep in-the-money spreads and other goings on at OX. Around the Block: What are we watching this holiday week? Buffalo Wild Wing (BWLB) joins the Wheel of Fun, also game developer Take 2. It's a holiday week, so plan accordingly if you are long premium. Read >

Option Block 114: No Straddles Without Gamma Scalping

Trading Block: SPY and other expirations on ETFs--close out your shorts! More put buyers are rolling into VIX - even the Journal is starting to pick up on it. Given this erratic movement, how risky is hedging the VIX? GLD put options, a relatively inexpensive option if you still need to hedge you're GLD downside. A Reuters article debating and discussing the sideways movements of the market, which gained popularity of the site recently, recommended straddles as a way to play with market. Should it even be allowed to recommend straddles without following it up with the appropriate discussion on gamma scalping? RIMM earnings after the close – at-the-money straddle trading $1.75 with one day to go. Odd Block: Unusual activity in Walgreens Co. (WAG), Credit Suisse Group (CS), and an activity review from November 17Louisiana-Pacific Corp. (LPX). Xpress Block: John Grigus from OX discusses the Van Eck ETFs and Sears (SHLD), which came out with a re-org. The December futures contracts will go off and stop trading at 8:30 CST. Strategy Block: Mike Tosaw talks about diagonal spreads and the diagonal butterfly given the weekly options being the great fascination of the retail world and gives us his two cents. Around the Block: An update on RIMM - that straddle still not paying the bills, trading about a dollar lower. Will VIX continue to decline? Will the market head north from here? Read >

Option Block 113: The Great VIX Implosion

Trading Block: It's been quite the roller coaster ride for VIX as of late, a lot of people picked up their insurance and are sitting fully hedged, just riding out the storm. Over at KYO, Dollar General and GNC stocks continue an upward climb. Gold down today, as well as crude oil, bonds may be next. Plus, Netflix, aka the widow-maker, makes a return cameo. Odd Block: Unusual activity in Activision Blizzard, Inc. (ATVI), Targacept, Inc. (TRGT), and revisiting an 11/28 activity review on MGIC Investment Corp. (MTG). Xpress Block: Tim Navabi discusses corporate restructuring and how once they announce some news it can affect the stock and options. Around the Block: Retail sales tomorrow, crude inventories Wednesday. Best Buy could be interesting to watch along with other names in the Wheel of Fun. Read >

Option Block 112: VIX Resistance

Trading Block: VIX cash back above 30, how long can it last? MF Global disaster continues to get worse, with no clue as to where customer money is. Customers are making additional margin payments because their funds at MF Global are frozen. This disaster may have ramifications for years to come. Metals/commodity rundown -- volatile gold and silver. Ford brought their dividend back after five years. Odd Block: Three-legged spreads. Unusual activity in Yahoo!, Inc. (YHOO) andLiz Claiborne, Inc.(LIZ). Plus, an update on last week's activity review: RIMM and Darden Restaurants (DRI). Strategy Block: Uncle Mike Tosaw discusses the simulated index concept and how to relate it to higher income and higher net worth individuals. How to use a life insurance policy if you exceed your retirement plan contribution level. Around the Block: The ongoing turmoil in the Eurozone is continuing to keep the VIX in limbo. RIMM earnings next week. Walgreens producing very high vol levels. Read >

Option Block 111: The Waffle and Egg Indicator

Trading Block: VIX was all over the map today. Stocks opened strong but rumors of an S&P downgrade warning to Germany killed some of the optimism. The ups and downs of trading Groupon. Trading the wheel of fun: keeping an eye on Dollar General and GNC. Odd Block: Unusual activity in Angie’s List - (ANGI), Darden Restaurants, Inc. - (DRI), and American Eagle Outfitters, Inc. - (AEO). Plus an update from last week on RIMM. Xpress Block: John Grigus from OX discusses the Van Eck ETFs and the news concerning ETFs and options. Around the Block: Jobless claims on 12/08. Michigan Sentiment later this week. The ongoing kurfuffle in the Euro zone. RIMM earnings on 12/15. Read >

Option Block 110: Worthless December Lottery Tickets

Trading Block: A massive explosion to the upside, what was the impetus for the 400 point rally? The S&P 500 has climbed 3% or more in a day 36 times in the past three years compared with 27 times for the nine years before, according to Bloomberg. EU battling to hold itself together. The first of the month means "Options Numbers Day." Odd Block: Unusual activity in Research in Motion, Ltd. (RIMM) and Barnes & Noble, Inc. (BKS) Xpress Block: Tim Navabi shares the news from Direxion Shares that their 2x bull and bear ETFs will now be converted to 3x. Also, how did OX handle the frenzied rally in the past days? Around the Block: Non-farms tomorrow, but almost a back-burner issue compared to the wild and irrational exuberance in the market recently. VIX finally takes a turn below 30, a long awaited event. Read >

Option Block 109: Danger is in the Air

Trading Block: A strong move to the upside after the holiday weekend. VIX at 30 yet again – is this becoming the new norm? Strong Black Friday sales compelling market. Metals/commodity rundown. Odd Block: Unusual activity in MGIC Investment Corp. (MTG); BlackRock, Inc. (BLK), and Charles Schwab Corp. (SCHW). Plus, an update on Guiled (GLID) from last week. Xpress Block: Rob discusses the extreme polarity last week from doom and gloom to consumer uplift on Black Friday. Has there been an uptick of people looking at SPXpm at OX? Around the Block: The afterglow of Black Friday and Cyber Monday are still driving all the major indices up. Dark clouds looming on the horizon in Europe. Groupon playing the mini-widowmaker down 9%. Unemployment, housing numbers, and non-farms later this week. Read >

Option Block 108: Super Committee VIX Spreads

Trading Block: Dow back in the red for the year. Debt cutting debate concerns hit the market -- reminiscent of the debt debate from August, only you don't see everyone loading up on VIX puts this time. Did they learn their lesson? Could more DC gridlock trigger another debt downgrade? Odd Block: Unusual and interesting activity in: Gilead Sciences Inc. (GILD) NII Holdings, Inc. (NIHD) Strategy Block: Andrew Giovanazzi from Option Pit discusses getting short the VIX without overloading on risk. Around The Block: Super committee debate dominates the outlook for this week -- how do you position for this? Apple below the 375 handle for the first time in a while -- maybe the best is behind Apple? Read >

Option Block 107: The End of the AAPL Bulls?

The Option Block all-star gang discusses Angie's List, Apple, S&P 500, simulating indexes, and more. Read >

Option Block 105: A Pod of Sissy Girls

Trading Block: How to use SPX movement in the downside skew to gauge the sentiment of a particular rally. An uncharacteristic sell-off in Apple -- will they finally lose their grip on the 400 handle? Green Mountain Coffee closed at nearly $41 today, down a whopping 40%. Odd Block: Unusual activity in EBAY and Computer Science Corp. (CSC). Xpress Block: Tim Navabi takes the reins at discusses the reverse split of FAS at OX today and talks adjusted options. Around the Block: Disney earnings after the bell - Things are looking good in the house of Mouse, it closed at 34.60, trading about $1 higher in the after-hours. NVDIA after the bell - closed at about 14.5, trading about $0.70 higher. Under Armor, Mastercard, Red Hat and Ulta Salon all had nice small pops before earnings. Oil and TLT have both been on a significant rally. Read >
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