Trading Block: OCC Cleared Contract volume down 24% in August. Earnings today: (before the bell) Campbell Soup Co., Lands End, Vera Bradley; (after the bell) Lululemon Athletica Inc. Bill Gross says Janet Yellen has "Mastered the art of market manipulation." U.S. stocks turn lower to start September on unsteady footing as energy sinks.

Odd Block: Puts trade in Iridium Communications Inc. (IRDM), calls trade in Chevron Corp. (CVX) and calls trade in Pandora Media Inc. (P).

Strategy Block: Uncle Mike Tosaw discusses a real life collar example.

Mail Block: Listener questions and comments

• Question from Richard Russell: Can you explain in detail how you use the spread trade parameters to predict the anticipated underlying movement at expiration?
• Question from Fred: Can you talk about how you assemble a watch list for options trades? Including individual stocks and options trades.

Around the Block: Reviewing LULU, non-farms number released tomorrow.