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Trading Block: Selloff keeps some life in the VIX cash. Profit taking, and rumbles out of Spain, weigh on the market. Facebook down 5%. Apple down 2%.
Odd Block: Puts trade in Dell Inc. (DELL), a massive 1×2 Call Spread Trades in Delphi Automotive PLC (DLPH), time spreads trade in Bruker BioSciences Corp. (BRKR), and calls trade in Questar Corp. (STR).
Xpress Block: Alex Jacobson discusses GLD volatility, SPX PM, and premiums. Of 256 companies reporting earning so far, 68.4% have beat estimates compared with a 62% average since 1994.
Mail Block: Let the All-Stars answer your questions.
- Question from Alessandro – What does the all-star panel think of a long Ford 11-12 1×2 put spread for $.05?
- Question from Bob G. -?Do you guys prefer to go into earnings long or short volatility?
- Question from Tony O. – Hey Uncle Mike, I?d like your opinion on going long the GLD March 155-168 bullish risk reversal for approximately even money? Or would you prefer to add a short 172 call kicker and collect about $.30?
- Question from Mr. Mikey – Does the OX Idea Hub take into account changes in open interest when highlighting trading idea?
Around the Block: Earnings! Activision on 2/7 after the close, Chipotle on 2/5 after the close, CBOE 2/8 before the open. Plus, CBOE stock has been on a serious tear since ICE/NYSE merger announcement.
Do you have plans for Thursday night?? Well, you should….make plans to attend RCM Trading’s (home of Great Uncle Mike Tosaw and Federal Holiday Mike Cavanaugh) webinar on using the VIX as a trading indicator.? Join your instructor, Mark Sebastian,\ of Option Pit and Option Block fame, as he goes over VIX term structure, and beyond in how to use it a trading indicator.??Sign up today as there is limited access and seats for this event will fill up quickly.