Option Block 506: Uncovered Covered Calls and IRA Options Debate

Trading Block: Big news today from an options exchange perspective: Nasdaq announced it has agreed to acquire International Securities Exchange (ISE), an operator of three electronic options exchanges, from Deutsche Borse Group. Investors greeted the Nasdaq deal to buy International Securities Exchange, the US options business of Deutsche Borse, with some skepticism on Thursday, sending Nasdaq shares down as much as 3.5 per cent. Earnings: Dollar General Odd Block: Calls trade in Club Corp. Holdings Inc. (MYCC), puts trade in Peabody Energy Corp (BTU), and calls and puts trade Hilton Worldwide Holdings Inc (HLT) Mail Block: Listener questions and comments Twitter: The Options Insider- With a potential ban on trading options in IRAs looming - Tell us how you trade options in your IRA right now? Question from Alex - In OptionBlock503, we agreed that while it is very unusual, the 25D 1Y Cash-secured Put was entered for all the right reasons. The follow up question is then. What are the various practical ways to Risk Manage/Baby Sit a Long Term CashSecured Put under different scenarios of the underlying (underlying is trending up, down or sideways) and for different regimes of volatility? Cheers. Around the Block: This Week in the Market Mar 10: Jobless Claims, Treasury Budget Mar 11: Import and Export Prices