SKF Call Spreads
I have a big SKF trade on right now. I am long, for example, Apr 09 130 calls and short the 180s.
However, because of the potential counterparty risk in SKF, I also own some SKF 65 puts; enough to make me whole if SKF were to fail.
Wednesday, September 17, 2008
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2 comments:
what counter-parties are you concerned about?
Do you feel Proshares is a risk, or does it have to do with the underlying swaps making up the index?
Do you have any specifics?
I have not been able to determine who the counterparties are. That is my concern.
For ~$400, I bought $65,000 worth of protection on my position. Seemed like a reasonable thing to do - one less thing to worry about.
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