It’s time to talk about getting naked.
Download Option Block 480: Getting Naked with the Options All-Stars
Trading Block: Apple plummets to 4th place among hedge holdings, from No. 1. Square surges after raising less than sought in IPO. BATS reports successful launch of EDGX Options – The new market launched on November 2nd and implemented a phased rollout of symbols, which was completed November 17th.
Odd Block: Calls trade in The CBOE Volatility Index (VIX), calls trade in CurrencyShares Euro Trust (FXE), and calls trade in Mosaic Inc. (MOS).
Listener Mail: Listener questions and comments
- Question from McDuff – What is a naked options position?
- Question from Kimble – Could a naked call pose huge risks – perhaps unlimited?
- Question from Fayecuzername – I expected more “Rocktobers” out of shear umbrage. As to my question regarding hedging with ratio spreads, on Friday I put on a SPY 11/20/2015 195-190 put 1×2 for a $.02 credit. Discuss and deride. Thanks.
Around the Block: Earnings on Friday – Abercrombie & Fitch, Foot Locker. Nov 19: Jobless Claims Report