Sentences with phrase «writing naked options»
Writing naked options exposes an investor to unlimited liability.
https://www.borntosell.com/ Not exact matches
When you sell a covered call, also known as writing a call, you already own shares of the underlying stock and you are selling someone the right, but not the obligation, to buy that stock at a set price until the option expires — and the price won't change no matter which way the market goes.1 If you didn't own the stock, it would be known as a naked call — a much riskier proposition.
When writing naked futures options your risk is unlimited, without the use of stops.
We specialize in stocks, bonds and options and we engage in a lot of premium selling in managing our strategies, whether it is covered call writing or naked put selling.
An alarming number of financial professionals, including stockbrokers, financial planners and journalists are in position to educate the public about the many advantages to be gained from adopting naked put writing (and other option strategies), but fail to do so.
We do not encourage or recommend running with scissors or naked option writing; you could get seriously hurt!