Podcasts Business The Option Block Option Block 346: Say Hello to Exposure Fees

Option Block 346: Say Hello to Exposure Fees

Published: June 13, 2014, 6:11 p.m.

Option Block 346: Say Hello to Exposure Fees

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Trading Block: A sea of red on the broad street today. VIX: more fear than fear itself? A big day for energies. Lululemon missed their earnings mark.\xa0

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Odd Block: An update of recent activity in Dollar General (DG), newsletter put seller trade in Galena BioPharma Inc (GALE), risk reversals/collar in Jet Blue Airways Corp (JBLU), and size put buyers trade in the iShares Dow Jones Transport (IYT)

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Xpress Block: A lot of activity in portfolio margining. More news on the upcoming futures for IdeaHub.

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Strategy Block: An update on the ratio-hedged risk reversal on Apple. Finding ways to finance the hedge.\xa0

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Mail Block: Listener questions and comments.\xa0

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Question from Ivan -\xa0I have heard some people say I should not sell naked short puts because of \u201cgap risk\u201d. I always respond that it is the same thing as working a limit order in the stock. Who is right - me or these worry warts?

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Around the Block: Thursday: Import price index and business inventories are estimated to climb. The World Cup begins and the rest of the world will be on vacation for the next month.