mike coe, what does this mean for you?all of the central banks have been giving puts to the financial market for free so therefore it's the price of going out and purchasing them in the open market has declined significantly. it's a huge cushion, but i do want to point out one thing, and that is when options prices are low, and they are low right now, even if you think the probability of success is less than 50-50, the amount that you can make if a volatility spike occurs is going to vastly outweigh that. so your expected p and l. is going to be profitable. that's something to remember. when options are cheap the up side makes it beneficial to own them overtime. this is a situation where i would absolutely not be short volatility in general. not in index and single stock. >> carter, i want to go to you and talk about seasonality. november isn't going to be a good month for going to be seasonally strong. obviously this next six to eight weeks is where some of the great market collapses have occurred. the month of september

mike and carter. take a look. on "options action," it's the only way to make a winning call, rick less to make more. that's what coe carter tried to do. >> i think you throw back and make it back to the high, 60. >> so he called up his best friend mike and told him to make a trade. just buying the stock, c'mon, mike, don't phone it in. you know the shares of $5,000. >> equipment takes time and money. >> it sure does, not that kind of money. to spend less, mike, instead, bought the january 50 strike call for doctor 2.10. now to make money, he needs verizon shares to rise above $50 by more than the price of that call or above 5210 by january expiration. but here's the best part. because pike is spending less, he can make more and if verizon shares do rise that call will increase in value faster tan the stock. meaning more money in mike's pock. >> yeah! >> you won't believe where i'm calling you from, man. >> now mike's phone is ringing off the hook because every options action fan has the same exact question, what will he do with his verizon trade now? [ music playing ] >> i counted four telephone-related songs in th