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The Option Block

The Option Block All-Star Panel breaks down the latest developments in the options market, analyzes unusual options activity, explains cutting-edge options strategies, answers listener questions and much more. Whether you're an active options trader or just getting started in the options market, The Option Block will keep you informed and entertained.

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  2. Option Block 480: Getting Naked with the Options All-Stars

Option Block 480: Getting Naked with the Options All-Stars

Nov 20, 2015

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 1x2 for a $.02 credit. Discuss and deride. Thanks.

Around the Block: Earnings on Friday - Abercrombie & Fitch, Foot Locker. Nov 19: Jobless Claims Report