JCP May option hedge

Discussion in 'Options' started by marcoPolo21, May 11, 2012.

  1. I have a few May JCP naked short calls,
    but Earnings is coming up on Tuesday,
    and I was looking for some hedge ideas, since JCP has been volatile.

    I'm looking for something like a 50% hedge - vertical, or horizontal.
    Instead of a near 100% hedge,
    would I be better off just selling [covering] the calls?

  2. Naked calls? Wow.

    About all you can do at this point is to contact the truly ELITE trader formerly known as ForexForex and ask for his advice.
  3. C+K=P+S

    So you're short deltas. To go delta neutral, you go.... ?

    Nevermind the above, it's earnings dude... being short just one side implies you're absolutely certain on the direction and that's a scary bet if you're short gamma. You'll pay the price with gamma once IV drops and you're also wrong on direction...

    Close the call, get into a long gamma position... trust me.
  4. people do Strangles - don't they?
    a naked short call, is just 1/2 of a strangle,
    and the better half - in my opinion

    sure there's risk, but where is there no risk in trading?

  5. Georgi90


    paper trader... nothing to learn here... from your ''trade''. naked short calls on jcp going into earnings hahah