Option Block 192: Earnings Palooza

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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 1×2 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.