Does my brokerage see bearishness?

    Posted by sschulman on 26th of May 2017 at 03:26 pm

    I've been short naked some ES 1700 puts for about a week. Today, Interactive Brokers notifies me that i'll be charged an "exposure fee". That's not a problem, and it's just a few pennies.

    But here's the thing - why now? Why see my short put position as more risky now than last week? Has IB suddenly become more bearish on the market? Do they know something that we don't?

    I'm confused (just came back

    Posted by mulisko on 26th of May 2017 at 04:04 pm

    I'm confused (just came back from bridge game, maybe that's a problem) If your puts became more risky now - doesn't it mean brokerage become more bullish ?

    No - I'm SHORT the

    Posted by sschulman on 26th of May 2017 at 04:13 pm

    No - I'm SHORT the puts. :-)

    And they are the 1700 strike puts. ES would have to go a LONG way down (all the way down to 1700) before those short puts would be losers.

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