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Quick recap on another episode of what is fast becoming a Friday night sensation. We kicked off the show with a good ol' fashion overwrite on National Oilwell Varco . If the market has

reached some sort of inflection point, the "Options Action" panel think oil and oil service stocks will lead the next move higher. But the rally may not happen right away (case in

point, today's sell-off in energy-related stocks), so Mike suggested a simple overwrite, where he sold the (NOV) October 40-strike call for $1.50. The buck fifty he took in more than

makes up for today 1% decline in the stock, and the trade doesn't call you out of your position until the stock hits $41.50. In what is quickly becoming a must-watch segment, in

Puttin' off the risk, Stacey offered up an early Christmas gift by providing a tech trade that would shield your tech portfolio against a decline of 28% in the Nasdaq. Now that's a

gift that keeps on giving. So specifically, what did she do? She bought the December QQQQ 40-strike put for $2.15, but to offset that cost, she also sold the December 36-strike put for

$0.95, and then she sold another put against that purchased put; she sold the December 32-strike put for $0.40. Net-Net, she paid $0.80 for a trade that protects the QQQQs all the way down

to $28.80. That is a gift most anyone could appreciate. In the award winning Put Up or Shut Up, Stacey stepped out of her roll as judge and duked it out with Mike. They went at it over J.C.

Penney , with both suggesting a collar to protect potential gains in the stock. Mike suggested selling the JCP September 33-Strike call for $0.55 to offset the purchase of the September

29-strike put for $0.50, collecting a nickel to protect some stock gains. The trade protects the stock below $29 bucks, limits the upside to $33 dollars by September expiration. Stacey one

upped Mike, proving the judge can mix it up a bit. She had an almost identical strategy, but instead of just selling a call to buy a put, she put time on her side. What am I talking about?

Realizing that October volatility was expensive compared to front month Vol., Stacey sold the October 34-strike call for $0.85 and used that money to buy the September 30-strike put for

$0.80, also collecting a nickel. Her trade provides at-the-money protection and doesn't cap her upside until next month. _Questions, comments send them to us at: [email protected]