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Originally published on August 25, 2015, this episode focused on the biggest single point drop ever in the DJIA. Also, chicken little was referenced.

Trading Block: The DJIA briefly slumped more than 1,000 points, its biggest point-drop ever. VIX Cash hit 53.29 at 10am. The VIX jumped as much as 90 percent to 53.29, its highest since January 2009. VIX didn’t update for 30 minutes as options quotes got erratic. AAPL hit a low of $92 before rebounding.

Around the Block: Retail earnings season winds down this week

Trading Block: The Force is not strong with Disney. “Star Wars: The Force Awakens” had a record-breaking $238 million opening weekend at box offices in the U.S. and Canada, in addition to a near-record $279 million overseas, but DIS was off 2% today and off nearly $10 since the movie launched on Thursday. Dow sets mark for most volatile December since 2008. Wall St. slides on lower crude prices, stock options expiry. The Bad of apple of the stock market this month: Apple. Oil prices hit 11-year low as global supply balloons.

Odd Block: Calls trade in iShares MSCI Brazil Index (EWZ), calls trade in Direxion Daily Financial Bull 3x ETF (FAS), calls trade in Mosaic Co. (MOS)

Strategy Block: Tosaw discusses twelve-month LEAP knock-out collar strategy.

Mail Block: In which the listeners weigh in

  • Question from 777 - Is there a specific reason OI in SPY puts has big cluster at the even strikes?

Around the Block: Pre-Christmas earnings coming from Nike, Micron and few others.

This week, we are digging through the archives to bring you highlights from the Option Block catalog.

First up, a look back at a live raucous show, taped in July, 2012. Remember when AAPL was at $600? Mini contracts. AAPL vs. Samsung. And more...

Trading Block: Crude oil futures fell to seven-year lows - below $35. VIX: On Friday, it was up 28 percent at 24.72. Volatility the surest bet in stocks after Fed meets. Three U.S. fund sectors fear SEC proposal on derivatives may hurt ETFs.

Odd Block: Buying vertical call spreads in Console Energy (CNX), upside call purchase in Royal Caribbean Cruises LTD (RDL), selling June 37 puts in Mondale International Inc (MDLZ)

Strategy Block: Uncle Mike Tosaw discusses his recent SPY trades

Around the Block: All eyes and ears will be the Federal Reserve as they are expected to announce a possible rate change on Wednesday. But, there are several other economic events worth noting as well.

  • Dec 15: Consumer Price Index
  • Dec 16: Housing Starts, FOMC Announcement
  • Dec 17: Jobless Claims

 

 

Trading Block: Oil was down, but energy stocks seemed to drive the market upward. Natural gas down around $2 level today.

Odd Block: Call buyers in SPDR Gold Trust (GLD), call buyers in Whole Food Market (WFM), and calls trade in Mens Warehouse (MW)

Around the Block: What will the Fed do?

Trading Block: There is an even weirder thing happening in financial markets. SEC to crack down on derivatives. Oil tumbles to six-year low as OPEC abandons production target.

Odd Block: Calls trade in JP Morgan Alerian MLP index (AMJ), calls trade in SPDR S&P 500 ETF (SPY), and calls trade in Sunedison Inc. (SUNE)

Strategy Block: Uncle Mike Tosaw discusses a different way to execute a stock repair strategy.

Around the Block: The Fed - Will they or will they not?

  • Dec 8: JOLTS
  • Dec 10: Jobless Claims, Treasury Budget
  • Dec 11: PPI, Retail Sales, Business Inventories, Consumer Sentiment

Trading Block: A bit of a selloff today - Yellen signals growing likelihood of a December rate hike. OCC cleared contract volume increased 10% in November. SEC charges twin brothers with fraud for options trading Spoofing and order mismarking.

Odd Block: Call buyers in Medtronic PLC (MDT), call sellers in Emerson Electric Co. (EMR), and put sellers in InvenSense Inc. (INVN)

Around the Block: Non Farms tomorrow (12/4)

Trading Block: VIX and the egocentricity of the Fed.

Odd Block: Calls trade in Qunar Cayman Islands Ltd (QUNR), puts trade in Ascena Retail Group Inc. (ASNA), and puts trade in Zoetis Inc. (ZTS)

Strategy Block: Uncle Mike Tosaw gives us an update on his most recent SPY positions.

Around the Block: Non-Farms and the Fed are the main events we will be watching this week.

Trading Block: Earnings! Before the bell today: Gamestop Corporation, Tyson Foods, Trina Solar. After the bell:  Palo Alto Networks. S&P 500 profits fall $25 Billion in first three quarters of 2015. Oil slides back lower after spike on Saudi statement. CME: Shrinking locally to grow abroad.

Odd Block: Puts trade in Freeport McMoran Inc (FCX), puts trade in Chesapeake Energy Corp (CHK), and calls and puts trade in Burlington Stores Inc. (BURL)

Listener Mail: Questions and comments from listeners

Question from Vega - Do puts and calls become more expensive ahead of events due to the risk premium? If so, how do I avoid that in the market?

Question from Peter Davies - Stocks are being hit by latency sensitive strategies like HFT. Is that happening in options as well?

Around the Block: Economic reports this week:

  • Nov 23: Existing Home Sales
  • Nov 24: GDP, Consumer Confidence
  • Nov 25: Durable Goods, Jobless Claims, New Home Sales, Consumer Sentiment

Trading Block: Apple plummets to 4th place among hedge holdings, from No. 1. Square surges after raising less than sought in IPO. BATS reports successful launch of EDGX Options - The new market launched on November 2nd and implemented a phased rollout of symbols, which was completed November 17th.

Odd Block: Calls trade in The CBOE Volatility Index (VIX), calls trade in CurrencyShares Euro Trust (FXE), and calls trade in Mosaic Inc. (MOS).

Listener Mail: Listener questions and comments

  • Question from McDuff - What is a naked options position?
  • Question from Kimble - Could a naked call pose huge risks - perhaps unlimited?
  • Question from Fayecuzername - I expected more "Rocktobers" out of shear umbrage. As to my question regarding hedging with ratio spreads, on Friday I put on a SPY 11/20/2015 195-190 put 1x2 for a $.02 credit. Discuss and deride. Thanks.

Around the Block: Earnings on Friday - Abercrombie & Fitch, Foot Locker. Nov 19: Jobless Claims Report

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