Bottom fishing or Covered stock?
October 5, 2009 by admin
Filed under Frequently Asked Questions, Hedging, Options, Stock Trading
Q: I am a member of the DMA and had some questions regarding SRS. I want to enter this trade but do not know if I should be bottom fishing it or buying a covered stock, due to the following:
- Bottom Fishing: negative skew / am considering selling the Oct 9 Put / buying [...]
Hedging with a synthetic stock position
October 5, 2009 by admin
Filed under Frequently Asked Questions, Hedging, Options
Q: You discuss hedging SRS with a synthetic stock position in IYR. My question is why not do a short synthetic position in SRS, Sell call and buy puts. I have noticed people in the TOS chat room talking about shorting AIG this way versus borrowing stock to short. This way you would have along [...]
