Option Block 884: 1987 Redux...All Over Again

Option Block 884: 1987 Redux...All Over Again HOST:  MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP CO-HOST: MARK SEBASTIAN, THE OPTION PIT CO-HOST: MIKE TOSAW, ST. CHARLES WEALTH MANAGEMENT GUEST: HENRY SCHWARTZ, TRADE ALERT TRADING BLOCK SEGMENT   HERE WE GO AGAIN! - MARKETS HALT ON THE OPEN AND ARE DRIFTING LOWER.  THE FED PUT IS MEANINGLESS: THE MARKET IS COMPLETELY IGNORING YET ANOTHER EMERGENCY FED ACTION. FED CUTS RATES TO ZERO ON THE HEELS OF MASSIVE QUANTITATIVE EASING AND AN EARLIER EMERGENCY RATE CUT. ALL OF IT HAD LITTLE EFFECT.   WELCOME TO THE FUTURE!: WE'RE ALL LIVING IN AN ESSENTIALLY FULLY-ELECTRONIC OPTIONS MARKET! VIX: 76.6 - UP 11.6 FROM LAST SHOW VVIX: 192 - UP 38 FROM LAST SHOW VXX: 46     MAIL BLOCK QUESTION FROM MIKE WIENICK: IF THE MARKETS ARE SHUT DOWN DUE TO THE EXTRAORDINARY CIRCUMSTANCES AND I HAVE EXPIRING IN THE MONEY PUTS THAT I  BOUGHT - WHAT HAPPENS? ARE THE EXPIRING OPTIONS AUTOMATICALLY EXERCISED OR ARE DO JUST EXPIRE WORTHLESS BECAUSE THE MARKET WAS SHUTDOWN? QUESTION FROM TONY WEBER: ANY ADVICE FOR HANDLING LARGE BID/ASK SPREADS? IS IT BETTER TO SELL OPTIONS WITH THE HOPE OF THE OPTIONS EXPIRING WORTHLESS? ARE RESTING ORDERS A GOOD IDEA? QUESTION FROM NIKTIX: WHY BOTHER WITH OPTIONS WHEN I CAN GET SHORT WITH SDS?     AROUND THE BLOCK WHAT'S ON OUR RADAR FOR THE REST OF THE WEEK?