jsd501 11:23 am on Friday, February 10, 2017

SVXY

STO January 2018, 75 puts @9.30 to offset my 230 and 235 naked calls.

matt0311 11:29 am on Friday, February 10, 2017

Question: what is the advantage of doing this? I have calls for same expiration and am interested in improving the situation. Thanks!
- jsd501 11:36 am on Friday, February 10, 2017
  
  It does not cost me any more in margin since these offset the calls. So if it goes down below 75, I am going to be assigned on the puts but my calls will expire at zero. I am also prepared to accept assignment with my cash reserves. If the options expire between 75 and 230, I get to keep both of the premiums.

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