Trading Block: Stocks to Watch: Mylan, Herbalife, and Caesars Entertainment.

• Mylan on Monday said it would launch a generic alternative to EpiPen at a 50% discount after being criticized for dramatically raising the price of the lifesaving drug. Shares gained 2.4% to $44.05 in premarket trading.
• Carl Icahn bought more shares in Herbalife on Friday, just days after he weighed selling his stake in the controversial nutritional-products maker. Herbalife shares rose 2.7% to $62.11 premarket.
• Federal Reserve Chair Janet Yellen speaking from Jackson Hole indicated that the U.S. central bank was nearing the point of raising the short-term Fed Funds rate once again, possibly at their September meeting.
• VIX index (13.65%) ticked slightly higher last week trading above 14% Friday, indicating that investors were once again increasing their bids for option premiums.

Odd Block: Reviewing a trade from last week in Big lots Inc. (BIG), MSFT strangle seller, Possible roll of MOMO calls, and breakout calls trading in GNW.

Mail Block: Listener questions and comments

• Question from Hemet: What is the best way to trade diagonals on VRX?
• Question from Jesse: So, I am LOVING The Options Insider, wish I had discovered you a long time ago.  You were asking Rock Lobster listener feedback - and you mentioned something like "even though you get all your juice for free..." Was that a pop-culture reference, or is he somehow buying call options for free... or just super cheap that it seems free? Do you mind clarifying? Thanks for the great shows.

Around the Block/This Week in the Market:

• Aug 29: Personal Income
• Aug 30: Consumer Confidence
• Aug 31: Chicago PMI
• Sep. 1: Jobless Claims
• Sep. 2: Unemployment, International Trade, Factory Orders