Option Block 425: Scratching Heads & Taking Names

Trading Block: A mild day on the street. IBM Earnings after the bell today - IBM trading around $164.30. Costco stock rises today after upping dividend - reauthorizing $4B buyback program. This is how one trader made millions on Disney - shares of Walt Disney have had a great year.

Odd Block: Calls trade in Owens Corning (OC), puts trade in Wolverine World Wide, Inc. (WWW), and calls trade in Spectra Energy Corp. (SE).

Strategy Block: Tosaw discusses ways in which to protect your portfolio.

Mail Block: Listener questions and comments

• Question from Sean - Can you do a quick overview of binary options? How do they differ from regular options, and when should people use them? How do I choose my strike with binary options?

Around the Block: Earnings: Morgan Stanley, Facebook, Coke. Some huge names report earnings this week.