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, we’re going to be talking about how to minimize short exposure when trading. I think there's really two types of short exposure and I want to just clarify as we go through today's quick little podcast. The first type of short exposure is directionally short exposure, so the idea that you’re basically directionally trading bearish, most people call it shorting stock. Although we don't ever deal with stock directly here at Option Alpha unless we’re assigned, we can trade positions bearish or short, so hoping that the position goes down in value or the underlying asset goes down and we build a strategy around that. That's the first type of short exposure. The easy way to get around that or to minimize your short exposure is just to naturally trade things that are bearish as well in your portfolio or trade things that are more neutral in directional bias. And so, it doesn't mean that you can’t trade things with a be