From Theory To Practice - March 1, 2021 - Reducing Margin Requirements on Naked Positions
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English - March 01, 2021 19:43 - 25 minutes - 24 MB Video - ★★★★★ - 173 ratingsInvesting Business Education How To Homepage Download Apple Podcasts Google Podcasts Overcast Castro Pocket Casts RSS feed
Previous Episode: Futures Measures - March 1, 2021 - Rate Butterflies and Oil Iron Condors
With the potential for unlimited losses, undefined-risk option strategies always carry more risk than defined-risk option strategies. As a result, the margin requirements on these naked positions will always be greater (and can expand over time). However, if we take a minute to better understand the risk dynamics, we clearly see how we can adjust our naked positions to lessen the buying power impact.
In our current portfolio, we see how to do just that with our potential DIS trade.