Sometimes it’s just as important to know when NOT to trade options.

Click here to access Option Block 413: When Not To Use Options

Trading Block: A quiet day on the street today. ISE preps third options exchange. Expect more volatility in oil says Exxon CEO. NASDAQ near 5000 amid ECB plans, big pharma deal. Earnings today include: Costco, Kroger.

Odd Block: Calls roll in T-Mobile US Inc. (TMUS), big moves in Canadian Solar Inc. (CSIQ), and OTM puts trade in Inc. yet Corporation (INCY).

Xpress Block: Alex discusses the OX Virtual Trade Account and Schwab Mobile

Mail Block: Listener questions and comments.

  • Question from Alejandro Vergoza – When is it right to use options and when is it right to use the stock instead?
  • Question from Jay – If the market is really falling out of bed what are some good strategies to take advantage of that movement while also minimizing option decay?
  • Question from Fred – Is there a problem in the options market with novice options traders not understanding the risks they are taking? Do you think that will that lead to regulatory action down the road?

Around the Block: Earnings tomorrow includes Staples. February jobs report comes out on Friday. Can non-farms save the bulls?