Option Block 502: Is Put/Call Worthless

Trading Block: Gold goes for a ride. SeaWorld earnings today after the bell and taking it on the chin. Off approx. 9%.

Odd Block: Calls and puts go up in Restoration Hardware Inc. (RH), call spreads go up in Marathon Petroleum Corp. (MPC), and puts go up in Cypress Semiconductors (CY).

Mail Block: Listener questions and comments

• Question from Matt M1000 - Hello Mr. Longo and All Star Cast. I have been enjoying The Option Block and Volatility Views shows for years. You guys are the best! Keep up the great work! I would like you folks to discuss the "put-call ratio"...its use and merits as a tool. I have always discounted this metrics value, since both put and call options could be either bearish or bullish depending on how they are being used (i.e. purchased or sold). So what logic I have leads me to believe a put-call ratio would be pointless. Set me straight on this please. -Beanbag.
• Question from SkyTrader - If I see a trend, what spread works best for capturing that spread - straight vertical or calendar?

Around the Block: Earnings!

• Friday - JC Penney Company, Hilton Worldwide

This Week in the Market

• Feb 26: GDP, Consumer Sentiment