The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, I want to go through the only two reasons why I believe optionsellers.com blew up their hedge fund. If you’re listening to this podcast or if you clicked on it from Google or somebody shared it with you, hopefully this will give you a little bit of insight and understanding as to why this hedge fund that was shorting naked calls and puts in the market blew up and I think that the reasoning behind this is a little bit different than what most people would assume. I think the problem that I see with optionsellers.com is twofold and then at the end, what I want to talk about is why they were basically doing things completely wrong. You'll see as we go through the number one and two reasons here, but again, you'll see why these things are completely wrong and backwards even probably based on their own logic and in-house risk management system which they probably just failed to follow. But the number one reason why t