Options Know-How: Google, Microsoft

How much do you know about playing the stock market with options?

The following are highlighted options insights and ideas from TheStreet.com.

From Options Expiration: Three Things You Need to Know:

1. Beware Overnight Shorts in Index Options

Market tenterhooks -- and a 24-hour global news cycle -- mean traders should be mindful of overnight short-covering in index options. Kevin Fischer, head of the block trading desk at Interactive Brokers, cautions that option traders should be vigilant of index options with a.m. settlement -- index options, for which trading stops at 4 p.m. on Thursday night, but for which the cash settlement price is calculated on the following Friday morning, and based on the opening tick of the entire index basket.

For a cautionary tale, consider what happened upon last month's expiration, between the close of trading in the September option contract at 4 p.m. on Sept. 18 and the calculation of the settlement price on the morning of Sept. 19.

Read the full version of Options Expiration: Three Things You Need to Know.

Jud Pyle (Mad About Options, ONN.tv):

All right, so the CBOE Volatility Index (VIX) is climbing higher again -- last check midday Oct. 15 , the "fear barometer" was up 18% and had pushed atop the 65 level.

Given the market's precipitous drop today, this isn't all that surprising. What does give me pause is that an options trader out there is bidding 10 cents per contract for 1,000 of the VIX October 100 calls. (No one has sold these contracts yet). These calls expire Wednesday, October 22, or 30 days before the following month's S&P 500 Index options expire. What's more, these calls would only become profitable if the VIX rallies another 50% by next week.

If you liked this article you might like

Why Alex Rodriguez Is Investing in Billionaires Warren Buffett and Jeff Bezos

Former NY Yankees Slugger Alex Rodriguez Reveals One Juicy Investment Tip

Why I Love Apple, Alphabet, Nvidia and These Other Stocks for September

Have Amazon, Google, Apple and Sony Flooded the Smart Speaker Market?